MCCLENDON TRANSPORTATION GROUP INC
10SB12G, EX-10.2, 2000-06-08
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                                                  AGREEMENT CONTRACT NO. _______

                         EQUIPMENT AND SERVICE AGREEMENT
    BETWEEN INDEPENDENT CONTRACTOR AND GLENN McCLENDON TRUCKING COMPANY. INC.
    ------------------------------------------------------------------------

          Glenn McClendon  Trucking Company,  Inc.  (hereinafter  referred to as
"McCLENDON") and  __________________________________  hereinafter referred to as
"CONTRACTOR"),  enter into the  Equipment  and  Service  Agreement  (hereinafter
referred to as "Agreement") set forth in the following numbered paragraphs:

          1.  CONTRACTOR,   McCLENDON   RELA~TIONSHIP   DEFINED  -  CONTRACTOR's
relationship to McCLENDON shall be that of an independent contractor. CONTRACTOR
means any person defined as "CONTRACTOR" in 49 C.F.R.  1057, and any contractor,
agent, employee or driver of CONTRACTOR. McCLENDON is an "authorized carrier" as
defined in 49 C.F.R.  1057.  The  provisions of this  Agreement are separable so
that the invalidity or  unenforceability  of one provision  shall not affect the
others.   McCLENDON's   "exclusive   possession,   control,   use  and  complete
responsibility  for  operation" of  EQUIPMENT,  shall be confined to the minimum
extent necessary to meet the requirements of applicable  Federal and State laws,
and for no other purpose  whatsoever.  McCLENDON  shall have no right to control
the manner,  means or methods utilized by CONTRACTOR for the  accomplishment  of
the  services  to be  rendered  under  this  Agreement.  It is  understood  that
CONTRACTOR  shall direct the control of  CONTRACTOR's  operation in all respects
including,  but not limited to, such matters as rejection or selection of loads,
days and time of the  operation,  routes  of  travel,  empty  miles,  repair  of
equipment,  purchases of fuel and other supplies, and selection,  discipline and
discharge of CONTRACTOR's  drivers and other employees.  This Agreement shall be
interpreted under the laws of the State of Alabama.

          2.       DUTIES OF CONTRACTOR - Contractor shall:

          A.       Operate the subject equipment in a lawful manner.
          B.       Provide  that  each  driver   furnished  by  CONTRACTOR  will
                   initially  meet and will  thereafter  continue to satisfy the
                   minimum  driver   qualification   and  compliance   standards
                   established  from time to time by (I) the U.S.  Department of
                   Transportation  or any successor agency (the "D.O.T.");  (ii)
                   other regulatory  bodies having  jurisdiction  over McCLENDON
                   operations;  and (iii) by McCLENDON  itself.  Upon  McCLENDON
                   request,  CONTRACTOR will immediately  substitute a qualified
                   driver for any person who fails to meet or maintain  any such
                   minimum  qualification  and/or  compliance  standards  or who
                   fails to  comply  with  McCLENDON's  operating  policies  and
                   procedures.  Failure  to do so  will  constitute  a  material
                   breach of CONTRACTOR's obligations under this Agreement.

          C.       Provide  proof  that  CONTRACTOR  holds  title  to and/or has
                   authority  to  lease  the  equipment  described  in  attached
                   Appendix A.
          D.       Maintain complete documentation of all costs of operation  as
                   defined in Paragraph 6.
          E.       Warrant  that  its  drivers  are  familiar  with and obey all
                   applicable State or Federal laws and regulations.
          F.       Warrant its full  cooperation  in achieving  compliance  with
                   all  laws  and  regulations,  including  the  filing  of  all
                   physical  examination  certificates and  any other reports or
                   documents required by law or by McCLEN DON.
          G.       Warrant that  the equipment  is  complete  with  all required
                   accessories and  is in good,  safe  and  efficient  operating
                   condition, and shall be so maintained at CONTRACTOR's expense
                   throughout the duration of this Agreement.
          H.       Submit the equipment for McCLENDON's inspection at any time.
          I.       Permit McCLENDON to display its  identification  on equipment
                   in a manner required by McCLENDON and by  all applicable laws
                   or regulations.


                         INITIALS: CONTRACTOR ______             MCCLENDON _____
                                        1


<PAGE>




         J.       Receive and retain a receipt from  McCLENDON  stating the date
                  and time when McCLENDON takes possession of the equipment.

         3. TERM - This Agreement  shall commence on the effective date and hour
specified  and  continue  in effect  until  breached by either  party,  or until
terminated.  This  Agreement  shall be  terminated by mailing or delivery to the
other  party at the  address  listed  below,  two copies of a written  Notice of
Termination,  which  shall be  effective  either  upon  receipt of the Notice of
Termination  from the other party,  or at such later date as may be specified in
that Notice. The party receiving Notice of Termination shall receipt the copy of
such Notice and return such receipted copy to the other party. Without excluding
other  breaches,  any failure to furnish  EQUIPMENT,  or any use of EQUIPMENT by
CONTRACTOR,  or by any  person  other than  McCLENDON  prior to  termination  is
specifically  designated breach of this Agreement,  which prevents and therefore
terminates   McCLENDON's  exclusive   possession,   control,  use  and  complete
responsibility   for  said   EQUIPMENT;   in  such  event,   this  Agreement  is
automatically  terminated.  Termination  automatically  constitutes  a return of
EQUIPMENT by McCLENDON to CONTRACTOR.

         4.  RESPONSIBILITY  OF  CONTRACTOR  UPON  TERMINATION  OF  AGREEMENT  -
CONTRACTOR  agrees  upon  termination  of  Agreement,   to  immediately   return
McCLENDON's trailers, and other property to McCLENDON, and remove from EQUIPMENT
any decals,  insignia,  emblems or markings that would  indicate a  relationship
with McCLENDON.  CONTRACTOR  agrees to deliver to McCLENDON  within  forty-eight
(48) hours after termination of the Agreement,  all property owned by McCLENDON,
including keys, key cards, fuel cards, cab cards, permits, and plates. McCLENDON
shall be entitled to assess  Twenty-Five  Dollars  ($25.00) per day for each day
after the forty-eight  hour period that CONTRACTOR  retains the foregoing items.
Should CONTRACTOR fail to return McCLENDON's property,  McCLENDON shall have the
right to repossess  all such property  without  legal  action,  and to enter the
private  property  of  CONTRACTOR  for the purpose of  repossession.  CONTRACTOR
hereby consents to such entry and repossession by McCLENDON and waives any right
to have such matter  heard by a judicial  body.  CONTRACTOR  agrees to indemnify
McCLENDON  for all costs  incurred  as the  result of  CONTRACTOR's  failure  to
relinquish  McCLENDON's  trailers  or  other  property  to  McCLENDON,  and  for
McCLENDON's cost in repossessing such property.  All carrier identification must
be  removed  or  concealed  when   McCLENDON's   possession  is  interrupted  by
CONTRACTOR's trip lease.

         5.  COMPENSATION  - McCLENDON  agrees to pay  CONTRACTOR for the use of
CONTRACTOR's EQUIPMENT according to the following provisions:

         A.       COMPENSATION   MILEAGE:   $.82  per   loaded  and  empty  mile
                  authorized by McCLENDON  Operations  Department and determined
                  using the  current  Rand  McNally  "MileMaker"  direct  miles.
                  Payments will be made on the basis of the distances determined
                  by the current Edition of the Randy McNally  MileMaker program
                  ("MileMaker  Miles")  from the  point at  which  the  shipment
                  originates,   via  any  intermediate   points  where  required
                  pick-ups  or  deliveries  are made,  to the point at which the
                  shipment  is  delivered  even if the miles  traveled  over the
                  route  actually  selected by the  CONTRACTOR  are less or more
                  than the  MileMaker  Miles.  McCLENDON  may deduct miles to be
                  paid or charge  for  expenses  as a result  of:  (1) any empty
                  miles  which  were  unauthorized  or not at the  direction  of
                  McCLENDON, and (2) any extra expenses or excess and circuitous
                  miles  created  as a  result  of  CONTRACTOR  dropping  a load
                  without  authorization.  The  miles or  amounts  deducted  may
                  include the total non-direct, or circuitous,  miles created as
                  result  of the drop  plus  any  miles  or  extra  expenses  --
                  incurred  to  have  the  load  re--powered  and  delivered  by
                  McCLENDON to it's customer on time.


                         INITIALS: CONTRACTOR ______             MCCLENDON _____
                                       2


<PAGE>




                           If the  CONTRACTOR  was late in delivering a previous
                           shipment without good cause, no compensation  will be
                           paid for  Dispatched  Empty Miles to the next loading
                           point.

                   B.      ACCESSORIAL PAY:

                           1.       LOADING AND  UNLOADING - When  contractor is
                                    required  to  physically  load or  unload by
                                    hand,  as  defined in  McCLENDON's  tariffs,
                                    (without  the   assistance  of   fork--lift,
                                    pallet  jack,  or  other  freight   handling
                                    equipment,  or employees of  customer),  and
                                    authorized    by    McCLENDON     Operations
                                    Department, compensation will be as follows:

                                    $80.00   Complete  Load  and/or  Unload  per
                                    shipment  $40.00  Assist Load and/or  Unload
                                    per shipment

                                    At  the  time   loading  or   unloading   is
                                    performed, CONTRACTOR's driver must obtain a
                                    McCLENDON  "loading/unloading  authorization
                                    number" ("Authorization  Number"), signed by
                                    the shipper/receiver, in order to verify the
                                    request     to    be     compensated     for
                                    loading/unloading        services.        No
                                    loading/unloading  compensation will be paid
                                    for a  trip  for  which  the  "Authorization
                                    Number"  is not  turned  in  with  the  trip
                                    report.

                                    If the  CONTRACTOR  is  required  to load or
                                    unload  by hand  jack or  pallet  jack,  the
                                    CONTRACTOR  will  be  paid  a flat  rate  of
                                    $15.00.

                           2.       STOP-OFFS--  McCLENDON  will pay  $30.00 for
                                    each   stop-off   for   pickup  or   partial
                                    delivery. This does not apply to the initial
                                    stop-off for pick up, and the final stop-off
                                    for delivery.


                           3.       AUTHORIZED  TOLLS - McCLENDON  agrees to pay
                                    tolls   for  the   Northeast   Region.   The
                                    Northeast   Region   is   defined   as   the
                                    following:  PA,  MD,  DE, NY, NJ, MA, RI, NH
                                    and ME.


         Payments  by  McCLENDON  to  CONTRACTOR  for the use and  operation  of
EQUIPMENT shall be paid within fifteen (15) days after  submission by CONTRACTOR
to McCLENDON of log books  required by the  Department  of  Transportation,  and
those documents  necessary for McCLENDON to secure payment of the trip revenues.
Payment of trip revenues is contingent  upon  submission of all Bills of Lading.
At the time of settlement,  CONTRACTOR  shall have the right to examine the Rand
McNally  MileMaker  System  for trips  involved  in  settlement.  At the time of
settlement,  McCLENDON may deduct from  CONTRACTOR's  compensation the following
items (1) advances (including  transaction  charges),  (2) Communication charges
limited to Qualcomm respecting CONTRACTOR,  (3) shortage,  loss and/or damage to
cargo or property caused by CONTRACTOR,  including, but not limited to, handling
and storage charges due to shifting or spillage of cargo,  (4) inspection  fees,
(5) any of CONTRACTOR's  costs of operation paid for by, or owed to,  McCLENDON,
(6) pick up and delivery charges, (7) amounts authorized by CONTRACTOR,  (8) any
other  amount owing to McCLENDON  or which  McCLENDON  is  authorized  to deduct
pursuant to this Agreement or any other similar agreement between CONTRACTOR and
McCLENDON.

                         INITIALS: CONTRACTOR ______             MCCLENDON _____
                                       3


<PAGE>




          6.  CONTRACTOR'S  COSTS OF OPERATION - CONTRACTOR shall have the legal
obligation to pay, and McCLENDON may deduct, all costs of operation of EQUIPMENT
which shall include, but not be limited to, the following:

          A.       Qualcomm Charges
          B.       Fuel
          C.       Fuel Taxes
          D.       Unauthorized Tolls
          E.       McCLENDON agrees to pay  tolls for the  Northeast Region. The
                   Northeast Region is defined as the following: PA, MD, DE, NY,
                   NJ, MA, RI, NH and ME.
          F.       McCLENDON agrees to furnish base plates,  permits, cab cards,
                   and public service commission stamps to CONTRACTOR.  However,
                   the parties  agree that if this  Agreement is  terminated  by
                   either  party  within  six  months of the date of  execution,
                   McCLENDON  will deduct a pro-rata  share of the cost of these
                   items from the CONTRACTOR's final escrow settlement.
          G.       Maintenance Cost.
          H.       Wages and renumeration of drivers and helpers.
          I.       Worker's   Compensation,   unemployment   insurance,   social
                   security or similar  taxes,  insurance or benefits on drivers
                   or helpers, and in connection therewith,  CONTRACTOR shall be
                   responsible for all payroll tax or other  deduction  required
                   by applicable Federal, State and Local law.
          J.       Axle, Weight, Federal Highway  Use (Schedule 2290), or  other
                   type of taxes required for use of EQUIPMENT in services to be
                   rendered under this Agreement.
          K.       Any and all fines, or penalties or charges assessed McCLENDON
                   resulting  from actions or acts or  negligence  by CONTRACTOR
                   and  it's  drivers,   helpers,  or  agents;  but  not  fines,
                   penalties  and/or  charges  which  are  due to the  fault  of
                   McCLENDON.  Damages  to cargo  caused by fault or  neglect of
                   CONTRACTOR,  CONTRACTOR's  driver  or agent,  except  damages
                   caused by the fault of  McCLENDON,  up to a maximum of $1,000
                   per  occurrence;  and public  liability  or  property  damage
                   caused  by  CONTRACTOR's  driver,  or  other  agent,  up to a
                   maximum of $1,000 per  occurrence.  McCLENDON  shall  provide
                   CONTRACTOR  with written  explanation  and itemization of any
                   charges made hereunder.
          L.       D.O.T. physical examination and drug screen - McCLENDON  will
                   accept  a  valid  physical  that  was  conducted  during  the
                   previous 3 months. CONTRACTOR may be subjected to random drug
                   screening thereafter.
          M.       In  the  event  that  this  Agreement  is  terminated  by the
                   CONTRACTOR, and the CONTRACTOR does not return the trailer(s)
                   to a McCLENDON terminal, McCLENDON may charge for or deduct
                   all cost(s) associated with the retrieval of the trailer(s)

          In the event McCLENDON is called upon to pay any of CONTRACTOR's  cost
of  operation,  such  payment  shall  be  considered  as a  charge-back  item to
CONTRACTOR, and McCLENDON is hereby authorized to reimburse itself for the exact
amount of such  charge-back  items out of any monies  due,  or  becoming  due to
CONTRACTOR, including CONTRACTOR's escrow fund (see Section 11), McCLENDON shall
provide  CONTRACTOR with those documents  necessary to determine the validity of
the charge-back.

          7.  INSURANCE  -  McCLENDON  shall  furnish and pay the cost of public
liability,   property  damage  insurance  for  the  protection  of  the  public.
CONTRACTOR  shall  obtain and maintain all other  required  insurance  coverage,
including,  but not limited to, "non-trucking use liability" (bobtail) insurance
providing a minimum of  $1,000,000  per  occurrence  combined  with single limit
Bodily Injury and Property Damage liability  coverage.  CONTRACTOR shall provide
McCLENDON  with a  Certificate  of  Insurance  of such  coverage  by an  insurer
satisfactory to McCLENDON.  CONTRACTOR  shall also obtain and maintain  property


                               INITIALS:         CONTRACTOR _____ MCCLENDON ____
                                       4


<PAGE>




damage insurance  covering the equipment while not being operated in the service
of McCLENDON,  including  coverage for collision,  fire,  theft,  catastrophe or
other  occurrence.   CONTRACTOR  shall  further  obtain  and  maintain  accident
injury/disability   insurance   coverage   satisfactory  to  McCLENDON  covering
CONTRACTOR's  employees or drivers. The above-referenced  insurance shall remain
in full effect until such time said  Agreement has been  terminated  and all the
property of McCLENDON,  including, but not limited to, trailers, qualcomm units,
base plates, decals, permit books, etc. have been returned to McCLENDON.

          8.       TRAILERS -

                  A.       Furnishing  of  Trailers.  McCLENDON  agrees to allow
                           CONTRACTOR  to  use  trailers   owned  or  leased  by
                           McCLENDON  (the  "Trailers")  for the sole purpose of
                           permitting  CONTRACTOR to transport  freight accepted
                           by CONTRACTOR pursuant to this Agreement.  CONTRACTOR
                           agrees  to  assume  complete  responsibility  for the
                           Trailers  and to use  them  ~nj~ for the  purpose  of
                           transporting  freight  hereunder or while deadheading
                           at McCLENDON's  request. In the event CONTRACTOR uses
                           the Trailers for any other purpose,  McCLENDON shall,
                           in  addition  to any other  remedies,  be entitled to
                           liquidated  damages  for  loss  of use of  each  such
                           Trailer in the amount of twenty cents ($.20) per mile
                           of unauthorized  use plus Fifty Dollars  ($50.00) for
                           each day, or portion of a day,  of such  unauthorized
                           use.   Unauthorized   use  of  the   Trailers   shall
                           constitute  a  material  breach  of  this  Agreement.
                           McCLENDON  shall  have the right to deduct the amount
                           of such  liquidated  damages  from the  CONTRACTORS's
                           Settlements or escrow account.

                  B.       Surrender  of   Possession.   CONTRACTOR   agrees  to
                           relinquish  possession  of each Trailer in accordance
                           with McCLENDON's  instructions  following delivery of
                           the shipment  transported  in such  Trailer,  or upon
                           demand  by  McCLENDON.   Upon   termination  of  this
                           Agreement  CONTRACTOR  agrees to return possession of
                           all  of  the  Trailers  in  CONTRACTOR's  custody  to
                           McCLENDON at McCLENDON's nearest terminal location or
                           such  other  location  as  McCLENDON  may  reasonably
                           designate.  In the  event of  breach  or  default  by
                           CONTRACTOR of its obligation to surrender  possession
                           of  any  Trailer,   CONTRACTOR  shall  be  liable  to
                           McCLENDON  for all expenses  and damages,  including,
                           but not limited to,  attorney's fees, court costs and
                           loss of use,  incurred by  McCLENDON  in  reacquiring
                           possession of the Trailer(s). In the event CONTRACTOR
                           retains  custody of a Trailer or  otherwise  fails or
                           refuses to deliver  possession  thereof to  McCLENDON
                           following  delivery of a shipment upon demand or upon
                           termination  of this  Agreement,  in  addition to any
                           other  remedies  available to  McCLENDON,  CONTRACTOR
                           shall be  liable  to  Carrier  in the  amount  of One
                           Hundred Dollars  ($100.00) per day, per trailer,  for
                           each day or portion  thereof  that the Trailer is not
                           returned to the actual or constructive  possession of
                           McCLENDON not as a penalty, but as liquidated damages
                           to cover the cost to  McCLENDON of the loss of use of
                           the Trailer. McCLENDON shall have the right to deduct
                           any  amounts  to  which  it is  entitled  under  this
                           section from the  CONTRACTOR's  Settlements or escrow
                           account.

                  C.       Maintenance.  McCLENDON is  responsible  for and will
                           pay for all normal  maintenance,  lubrication,  brake
                           repair,  and required periodic safety  inspections on
                           the Trailers.  If the CONTRACTOR incurs any costs for
                           these  items,  McCLENDON  will  reimburse  CONTRACTOR
                           provided   CONTRACTOR   complies   with   McCLENDON's
                           reimbursement policies and procedures.

                  D.       Loss or Damage. CONTRACTOR is responsible for, agrees
                           to reimburse  McCLENDON  for the entire amount of all


                               INITIALS: CONTRACTOR _______    MCCLENDON________
                                        5


<PAGE>




                           loss or damage  to the  Trailers  including,  without
                           limitation,  tire  repair or  replacement,  resulting
                           form the  negligence or the deliberate or intentional
                           acts  of   CONTRACTOR,   its  drivers  or  its  other
                           employees   or   agents.   CONTRACTOR   will  not  be
                           responsible  for any loss or damage  to the  Trailers
                           which McCLENDON determines,  pursuant to its accident
                           review   procedures,   to   be   the   result   of  a
                           nonpreventable  accident.  McCLENDON  shall  have the
                           right to deduct any  amounts to which it is  entitled
                           under this section from the CONTRACTOR's  Settlements
                           or escrow account.

                  E.       Condition Uoon  Surrender of  Possession.  CONTRACTOR
                           agrees it will  surrender  possession of the Trailers
                           to McCLENDON  in as good  condition as they were when
                           CONTRACTOR  received them,  normal wear and tear from
                           ordinary use excepted.

          9.  CARGO  LOSS -  CONTRACTOR  shall  be  responsible  and  liable  to
McCLENDON and agrees to indemnify,  reimburse,  and hold McCLENDON  harmless for
the first  $1,000.00,  per occurrence,  of any liability,  claim,  loss, cost or
expense  resulting from shortage,  loss or damage to freight  transported by the
Equipment which is caused by CONTRACTOR's  negligence or willful act.  McCLENDON
is  authorized  to deduct all  amounts to which it is  entitled  hereunder  from
CONTRACTOR's settlements or escrow account.

          10. WORKERS COMPENSATION WAIVER AND RELEASE - CONTRACTOR hereby waives
and fully  releases  McCLENDON from right or claim to benefits or recovery under
any  Workers  Compensation  Act which might arise out of or in the course of the
CONTRACTOR's performance under this Agreement.  CONTRACTOR shall maintain at its
own expense and shall evidence to McCLENDON a current policy providing  worker's
compensation or other accidental  disability  coverage for CONTRACTOR and/or its
employees.  For all purposes of workers compensation coverage,  CONTRACTOR is an
independent contractor and not an employee or agent of McCLENDON.

          11.  RECORD OF USE OF  EQUIPMENT  -  CONTRACTOR  will  cooperate  with
McCLENDON in the  preparation,  receipt,  preservation  and  submission of those
documents necessary for McCLENDON to secure payment of trip revenues, and of all
manifests,  bills of lading and delivery receipts,  weigh bills,  freight bills,
log sheets, mileage reports,  original fuel purchase receipts,  State or Federal
inspection reports, accident reports, OS&D reports, and other papers and records
respecting  the lading,  and the use of said  EQUIPMENT in  accordance  with all
applicable laws and  regulations.  Trip settlements will not be made without the
above required documentation.

          12.  PRODUCTS,  EQUIPMENT,  OR SERVICE  OBTAINED  BY  CONTRACTOR  FROM
McCLENDON  -CONTRACTOR  is not  required  to  purchase  or  rent  any  products,
insurance,  EQUIPMENT, or service from McCLENDON, other than a Qualcomm unit, as
a condition to entering into this Agreement.  Contractor is not required to rent
or purchase any other products or insurance from McCLENDON.

          13.  ESCROW  FUNDS -  CONTRACTOR  shall be  required  to deposit  with
McCLENDON  an escrow fund,  the sum of $1,000 per unit,  which may be applied to
payment to McCLENDON for costs and expenses of  CONTRACTOR  incurred and paid by
McCLENDON as set forth in Agreement.  CONTRACTOR  agrees for McCLENDON to deduct
One Hundred Dollars  ($100.00) per week from  CONTRACTOR's  settlement to obtain
the escrow fund. CONTRACTOR agrees that McCLENDON may apply such escrow funds to
CONTRACTOR's units or EQUIPMENT without regard to any particular unit. McCLENDON
shall account to the CONTRACTOR for all transactions  involving the escrow funds
on each  settlement  sheet between  CONTRACTOR and  McCLENDON.  CONTRACTOR has a
right to demand,  at  reasonable  intervals,  an  accounting  from  McCLENDON of
transactions involving escrow funds.

                            INITIALS: CONTRACTOR ______          MCCLENDON _____
                                        6


<PAGE>




          Once the fund of $1,000.00 is reached,  McCLENDON  will pay CONTRACTOR
interest on a quarterly  basis at a 6% annual  interest rate. This interest rate
will be paid only if the $1,000.00  balance is maintained  for the full calendar
quarter.

          Upon  termination of this  agreement,  the parties agree to complete a
final  accounting of the  CONTRACTOR's  escrow  account within 45 days after the
termination  provided  that  the  CONTRACTOR  has  returned  the  base  plate to
McCLENDON's  general  office in LaFayette,  AL. This final  settlement of escrow
funds will not be performed until said base plate is returned.

          14.  QUALCOMM  UNIT - All  Contractor's  are required to rent Qualcomm
units for each tractor contracted  hereunder.  The following terms shall control
the installation, rental, operation, maintenance, care and return of the subject
Qualcomm unit assigned to the CONTRACTOR's equipment:

                   A.       CONTRACTOR  will be required to pay $11.00 per week,
                            per truck, for the rental of satellite  tracking and
                            related communications equipment ("Qualcomm" unit) .
                            This  amount  will  be  deducted  from  CONTRACTOR's
                            weekly compensation  settlement.  McCLENDON will pay
                            the initial cost of  installing  this  equipment and
                            the   on-going   monthly   costs  for  tracking  and
                            messaging services.

                   B.       Upon termination of this Agreement, CONTRACTOR shall
                            immediately  return the Qualcomm  unit to McCLENDON.
                            Failure to return  this  equipment  will  render the
                            CONTRACTOR  liable for the value of it. In addition,
                            the  CONTRACTOR  will be charged for the cost of any
                            damages  caused by  him/her  to the  Qualcomm  unit,
                            other than normal wear and tear.  Moreover,  if this
                            Agreement is terminated  less than one year from its
                            original date,  the CONTRACTOR  will be charged $300
                            to  cover  the   installation  and  removal  of  the
                            equipment.

                   C.       CONTRACTOR  shall  remain liable for the replacement
                            value  of  the Qualcomm  unit (up to value of $5,000
                            per unit) upon loss, damage or theft.

                   D.       McCLENDON  shall  maintain  record  of communication
                            equipment part numbers and  serial  numbers  at  the
                            LaFayette, Alabama terminal.

          15. Arbitration. All disputes, claims or controversies arising from or
relating to this contract or to any contract  executed by and between  McCLENDON
and  CONTRACTOR  pursuant  to  any  transaction  involving  or  relating  to the
transactions  contemplated  herein, or any of said contract's  contents,  or the
parties  relationships or dealings,  shall be resolved by binding arbitration by
one arbitrator  selected by CONTRACTOR with McCLENDON'S  consent and paid for by
McCLENDON  unless  CONTRACTOR is determined to be at fault and legally liable or
in breach of this or any other contract by and between McCLENDON and CONTRACTOR,
in  which  event,  CONTRACTOR  shall  be  responsible  for  and  timely  pay all
arbitration  costs and fees. This Agreement is made pursuant to a transaction in
Interstate  Commerce  and shall be governed by the  Federal  Arbitration  Act at
U.S.C.  Section 1. Any Judgement  upon the award  rendered may be entered in any
Court having jurisdiction. The parties hereto agree and understand that disputes
may be litigated in Court,  but they prefer to resolve  their  disputes  through
arbitration,  except as may be  specifically  provided  herein.  Subject  to the
equitable  rights  afforded  McCLENDON in paragraph 4 above,  including  but not
limited to  McCLENDON'S  right and reposses the Vehicles,  the parties agree and
understand  that all disputes  arising  under case law,  statutory  law, and all
other laws  including,  but not  limited  to, all  contract,  tort and  property
disputes  will be  subject  to  binding  arbitration  in  accordance  with  this
contract.  The parties agree that the arbitrator  shall have all powers provided


                                   INITIALS: CONTRACTOR _____    MCCLENDON _____
                                        7


<PAGE>




by law, these powers shall include all legal and equitable  remedies  including,
but not  limited  to,  the  award  of money  damages,  declaratory  relief,  and
injunctive relief.

          16.  Waiver of iurv  trial.  CONTRACTOR  hereby  waives any right to a
trail by jury that the CONTRACTOR may have in any subsequent  litigation between
CONTRACTOR  and  McCLENDON or CONTRACTOR  and any assignee of McCLENDON  whether
such  litigation  arises out of, is  related  to, or is in  connection  with any
provision of this contract or any other contract  executed  incident hereto,  or
any  other  transactions  consummated  pursuant  to any other  contracts  by and
between CONTRACTOR and McCLENDON.

          17. Assent. The parties hereto, by signing this Agreement, acknowledge
that each has  thoroughly  read and  understand  the terms set forth  herein and
further  acknowledge  and agree that each  party  voluntarily  enters  into this
agreement and  specifically  waives its, his, hers or their rights to a trail by
jury,  and that each party is aware that it, he,  she, or they have a right to a
trail by jury.  However,  it is the CONTRACTOR'S and McCLENDON'S intent to waive
its,  his,  hers or their right to trail by jury and to arbitrate  all disputes,
except as may be expressly set forth in paragraph 4 of this contract.

          18. AGREEMENT AND COPIES - This Agreement, plus any authorized written
attachments,  constitute the complete Agreement between CONTRACTOR and McCLENDON
and no  contractor,  employee or agent of either  party shall have  authority to
alter or vary the terms, or make any representations or commitments not included
herein. Any subsequent changes, modifications or amendments to the Agreement, in
order to be valid and enforceable,  shall be by written  instrument  executed by
both parties.  Where applicable,  the singular shall include the plural, and the
masculine  shall include the feminine or neuter,  or vice versa.  This Agreement
shall be executed in at least three copies, each of which shall be considered an
original.  One executed copy,  known as McCLENDON's  copy,  shall be retained by
McCLENDON.  One executed copy, known as CONTRACTOR's  copy, shall be retained by
CONTRACTOR.  One executed copy, known as EQUIPMENT copy, shall be carried on the
EQUIPMENT during the period of this Agreement, unless a statement as provided in
49 C.F.R. is carried on EQUIPMENT instead.

          The  undersigned,  McCLENDON,  a  common  carrier  of  motor  freight,
operating pursuant to authority granted by the Interstate  Commerce  Commission,
under  Certificate  Number  MC-52704,   does  hereby  acknowledge  receipt  from
CONTRACTOR  of  the  Equipment  described  below.   Further,   the  undersigned,
CONTRACTOR,  hereby  acknowledges  the  receipt by  McCLENDON  of the  Equipment
described below:

 MAKE          YEAR              SERIAL #                  CONTRACTOR

___________    _____   ________________________   _____________________________

___________    _____   ________________________   _____________________________

___________    _____   ________________________   _____________________________

___________    _____   ________________________   _____________________________


         Such Agreement may be canceled by either party upon written notice. The
original  Agreement is kept in the office of GLENN McCLENDON  TRUCKING  COMPANY,
INC., located at 121 5. LaFayette Street,  LaFayette,  Alabama 36862 (Telephone:
334--864--9311)







                         INITIALS: CONTRACTOR ______             MCCLENDON _____
                                       8


<PAGE>


          IN WITNESS  WHEREOF,  McCLENDON  and  CONTRACTOR  do hereby  sign this
Agreement on this_____ day of ______________, 2 000 which shall be the effective
date of this Agreement.

______________________________
NAME OF CONTRACTOR                        GLENN McCLENDON TRUCKING COMPANY, INC.
                                                   (I.C.C. NO. MC--52704)
______________________________                     121 5. LaFayette Street
                                                  LaFayette, Alabama 36862
______________________________

______________________________
ADDRESS OF CONTRACTOR

_______________________________
PHONE NUMBER OF CONTRACTOR


BY                                              BY
   ____________________________                    ____________________________
      CONTRACTOR SIGNATURE                           AUTHORIZED REPRESENTATIVE


DELIBERATE  FALSIFICATION  OF, OR FORGED  SIGNATURES  ON ANY  DOCUMENTATION  CAN
RESULT IN IMMEDIATE  CANCELLATION  OF CONTRACTOR'S  OPERATING  AGREEMENT AND THE
DRIVER'S SAFETY CLEARANCE.



                                INITIALS: CONTRACTOR ______      MCCLENDON______
                                       9



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