1 EXHIBIT 4.1.3 FIRST AMENDMENT TO SECURITY AGREEMENT THIS AMENDMENT is made and entered into on this the 3rd day of July, 1996, by and between CHOCTAW EXPRESS, INC., an Oklahoma corporation, whose principal place of business and chief executive office is located at Highway 412 West, P.O. Box 188, Tontitown, Arkansas 72770, party of the first part, hereinafter called "Grantor," and FIRST TENNESSEE BANK NATIONAL ASSOCIATION, a national banking association, whose address is 165 Madison Avenue, Memphis, Tennessee 38103, Attention: Commercial Finance Division, party of the second part, hereinafter called the "Bank." Recitals of Fact Grantor as Debtor, has heretofore made, executed and delivered to the Bank, as Secured Party, that certain Security Agreement ("Security Agreement") bearing date of the 27th day of June, 1995, for the purpose of securing the payment of certain Obligations, as mentioned and defined in the Security Agreement. P.A.M. Transport, Inc., an Arkansas corporation (the "Borrower"), has this day made, executed and delivered to the Bank its additional promissory note in the principal sum of Five Million Dollars ($5,000,000.00); and as a result thereof, the parties desire to modify and amend the Security Agreement as hereinafter provided. NOW, THEREFORE, for and in consideration of the premises, as set forth in the Recitals of Fact, and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, it is agreed by the parties as follows: Agreements 1. Paragraph 3(a) of the Security Agreement is hereby modified and amended to read as follows: "(a) The full and prompt payment, when due, of the indebtednesses in the aggregate principal sum of Fifteen Million Dollars ($15,000,000.00), evidenced and to be evidenced by those three (3) certain promissory notes, one bearing date of the 26th day of July, 1994, and being in the principal sum of Seven Million Five Hundred Thousand Dollars ($7,500,000.00), one bearing date of the 27th day of June, 1995, and being in the principal sum of Two Million Five Hundred Thousand Dollars ($2,500,000.00), and the third note bearing date of the 3rd day of July, 1996, and being in the principal sum of Five Million Dollars ($5,000,000.00), all of said notes being executed by the Borrower and being payable to the order of the Bank; and any and all renewals, modifications, substitutions, replacements and/or extensions of any of said notes, in whole or in part;" 2 2. All references in the Security Agreement to the Loan Agreement shall be deemed to be references to the Loan Agreement dated July 26, 1994, as amended by Amendments dated, respectively, June 27, 1995 and July 3, 1996. 3. All terms and provisions of the Security Agreement, which are inconsistent with the terms and provisions of this Amendment are hereby modified and amended to conform herewith; and, as modified and amended hereby, the Security Agreement is hereby ratified, approved and confirmed by the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in Memphis, Tennessee, by their respective officers, duly authorized so to do, on this the day and year first above written. ATTEST: CHOCTAW EXPRESS, INC. /s/ Larry J. Goddard By: /s/ Robert W. Weaver - ------------------------------------- ------------------------------- Secretary Chief Executive Officer GRANTOR FIRST TENNESSEE BANK NATIONAL ASSOCIATION By: -------------------------------- Senior Vice-President BANK - 2 -