Exhibit 10.26


                                                        
                               CORPORATE GUARANTY


                            Date:  November 12, 1998

General Electric Capital Corporation
One Lincoln Centre
5400 LBJ Freeway
Suite 525
Dallas, Texas  75240


         To induce you to enter into, purchase or otherwise acquire,  now or at
any time hereafter, any promissory notes, security agreements, and/or any other
documents or instruments  evidencing or relating to, any lease, loan, extension
of credit or other financial  accommodation  (collectively  "Account Documents"
and each an  "Account  Document")  to KJ  Transportation,  Inc.  and J&L  Truck
Leasing of Farmington,  Inc.,  each a corporation  organized and existing under
the laws of the State of New York  (collectively,  "Customer"),  but without in
any  way  binding  you  to  do  so  the  undersigned,  for  good  and  valuable
consideration,  the receipt and  sufficiency  of which is hereby  acknowledged,
does hereby guarantee to you, your successors and assigns,  the due regular and
punctual  payment of any sum or sums of money which the Customer may owe to you
now or at any time hereafter whether evidenced by an Account Document,  on open
account or otherwise, and whether it represents principal, interest, rent, late
charges,  indemnities,  an original balance, an accelerated balance, liquidated
damages, a balance reduced by partial payment, a deficiency after sale or other
disposition of any leased equipment,  collateral or security, or any other type
of sum of any kind  whatsoever  that the  Customer may owe to you now or at any
time hereafter,  and does hereby further  guarantee to you, your successors and
assigns,  the due,  regular  and  punctual  performance  of any  other  duty or
obligation of any kind or character whatsoever that the Customer may owe to you
now or at any time  hereafter  (all such  payment and  performance  obligations
being  collectively  referred  to as  "Obligations").  Undersigned  does hereby
further  guarantee to pay upon demand all losses,  costs,  attorneys'  fees and
expenses  which  may be  suffered  by you by reason of  Customer's  default  or
default of the undersigned.

         This Guaranty is a guaranty of prompt payment and performance (and not
merely a guaranty of  collection).  Nothing  herein shall  require you to first
seek or exhaust any remedy against the Customer, its successors and assigns, or
any  other  person  obligated  with  respect  to the  Obligations,  or to first
foreclose,   exhaust  or  otherwise   proceed  against  any  leased  equipment,
collateral or security which may be given in connection  with the  Obligations.
It is agreed that you may,  upon any breach or default of the  Customer,  or at
any time  thereafter,  make demand upon the undersigned and receive payment and
performance of the Obligations, with or without notice or demand for payment or
performance by the Customer,  its  successors or assigns,  or any other person.
Suit may be brought and  maintained  against the  undersigned at your election,
without  joinder of the  Customer or any other person as parties  thereto.  The
obligations of each signatory to this Guaranty shall be joint and several.

         The undersigned  agrees that its obligations under this Guaranty shall
be  primary,  absolute,  continuing  and  unconditional,  irrespective  of  and
unaffected by any of the following actions or circumstances  (regardless of any
notice  to or  consent  of the  undersigned):  (a) the  genuineness,  validity,
regularity and  enforceability  of the Account Documents or any other document;
(b) any extension,  renewal, amendment, change, waiver or other modification of
the Account  Documents or any other document;  (c) the absence of, or delay in,
any  action to  enforce  the  Account  Documents,  this  Guaranty  or any other
documents;  (d) your  failure or delay in obtaining  any other  guaranty of the
Obligations (including without limitation, your failure to obtain the signature
of any other guarantor  hereunder);  (e) the release of,  extension of time for
payment or  performance by or any other  indulgence  granted to the Customer or
any other  person  with  respect  to the  Obligations  by  operation  of law or
otherwise; (f) the existence,  value, condition, loss, subordination or release
(with or without  substitution)  of or failure to have title to or perfect  and
maintain a security  interest in, or the time,  place and manner of any sale or
other  disposition  of any leased  equipment,  collateral or security  given in
connection with the Obligations,  or any other impairment (whether  intentional
or  negligent,  by  operation  of  law  or  otherwise)  of  the  rights  of the
undersigned; (g) the Customer's voluntary or involuntary bankruptcy, assignment
for the benefit of creditors,  reorganization, or similar proceedings affecting
the  Customer or any of its assets;  or (h) any other  action or  circumstances
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor.

         This Guaranty may be terminated  upon delivery to you (at your address
shown above) of a written termination notice from the undersigned.  However, as
to  all  Obligations  (whether  matured,  unmatured,  absolute,  contingent  or
otherwise)  incurred  by the  Customer  prior to your  receipt of such  written
termination  notice (and regardless of any subsequent  amendment,  extension or
other modification  which may be made with respect to such  Obligations),  this
Guaranty shall  nevertheless  continue and remain  undischarged  until all such
Obligations are indefeasibly paid and performed in full.

         The  undersigned  agrees that this Guaranty shall remain in full force
and  effect or be  reinstated  (as the case may be) if at any time  payment  or
performance  of any of the  Obligations  (or any part  thereof)  is  rescinded,
reduced or must  otherwise  be restored or returned by you,  all as though such
payment  or  performance  had not been made.  If, by reason of any  bankruptcy,
insolvency  or similar laws  affecting  the rights of  creditors,  you shall be
prohibited from exercising any of your rights or remedies  against the Customer
or any other  person or against  any  property,  then,  as between  you and the
undersigned,  such prohibition  shall be of no force and effect,  and you shall
have the right to make demand upon, and receive  payment from, the  undersigned
of all  amounts  and other  sums that  would be due to you upon a default  with
respect to the Obligations.

         Notice  of  acceptance  of this  Guaranty  and of any  default  by the
Customer or any other person is hereby waived.  Presentment,  protest,  demand,
and notice of protest,  demand and dishonor of any of the Obligations,  and the
exercise of possessory,  collection or other remedies for the Obligations,  are
hereby waived.  The  undersigned  warrants that it has adequate means to obtain
from the Customer on a continuing  basis  financial data and other  information
regarding  the Customer and is not relying upon you to provide any such data or
other information.  Without limiting the foregoing, notice of adverse change in
the Customer's  financial condition or of any other fact which might materially
increase  the  risk  of  the  undersigned  is  also  waived.  All  settlements,
compromises, accounts stated and agreed balances made in good faith between the
Customer,  its  successors or assigns,  and you shall be binding upon and shall
not affect the liability of the undersigned.

         Payment of all amounts now or hereafter owed to the undersigned by the
Customer or any other obligor for any of the Obligations is hereby subordinated
in  right  of  payment  to  the  indefeasible  payment  in  full  to you of all
Obligations and is hereby assigned to you as security therefor. The undersigned
hereby irrevocably and  unconditionally  waives and relinquishes all statutory,
contractual,  common law,  equitable and all other claims  against the Customer
and any other obligor for any of the Obligations,  any collateral therefor,  or
any other assets of the Customer or any such other  obligor,  for  subrogation,
reimbursement,  exoneration,  contribution,  indemnification,  setoff  or other
recourse  in  respect  of  sums  paid  of  payable  to you  by the  undersigned
hereunder,  and the undersigned hereby further  irrevocably and unconditionally
waives and  relinquishes  any and all other benefits  which it might  otherwise
directly  or  indirectly  receive  or be  entitled  to receive by reason of any
amounts  paid by, or  collected  or due from,  it,  the  Customer  or any other
obligor for any of the  Obligations,  or realized from any of their  respective
assets.

         THE  UNDERSIGNED  HEREBY  UNCONDITIONALLY  WAIVES  ITS RIGHT TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR
INDIRECTLY,  THIS  GUARANTY,  THE  OBLIGATIONS  GUARANTEED  HEREBY,  ANY OF THE
RELATED  DOCUMENTS,  ANY  DEALINGS  BETWEEN US RELATING  TO THE SUBJECT  MATTER
HEREOF OR THEREOF,  AND/OR THE RELATIONSHIP THAT IS BEING  ESTABLISHED  BETWEEN
US. The scope of this waiver is intended to be all  encompassing of any and all
disputes  that  may be  filed  in any  court  (including,  without  limitation,
contract claims,  tort claims,  breach of duty claims, and all other common law
and statutory  claims).  THIS WAIVER IS IRREVOCABLE  MEANING THAT IT MAY NOT BE
MODIFIED  EITHER  ORALLY  OR IN  WRITING,  AND  SHALL  APPLY TO ANY  SUBSEQUENT
AMENDMENTS,  RENEWALS,  SUPPLEMENTS  OR  MODIFICATIONS  TO THIS  GUARANTY,  THE
OBLIGATIONS  GUARANTEED  HEREBY,  OR ANY  RELATED  DOCUMENTS.  In the  event of
litigation  this  Guaranty may be filed as a written  consent to a trial by the
court.

         As used  in  this  Guaranty,  the  word  "person"  shall  include  any
individual, corporation,  partnership, joint venture, association,  joint-stock
company, trust, unincorporated organization, or any government or any political
subdivision thereof.

         This Guaranty is intended by the parties as a final  expression of the
guaranty of the  undersigned  and is also  intended as a complete and exclusive
statement of the terms thereof. No course of dealing,  course of performance or
trade usage,  nor any paid evidence of any kind, shall be used to supplement or
modify  any of the  terms  hereof.  Nor are there  any  conditions  to the full
effectiveness  of this  Guaranty.  This Guaranty and each of its provisions may
only be waived, modified, varied, released, terminated or surrendered, in whole
or in part, by a duly authorized  written  instrument signed by you. No failure
by you to  exercise  your  rights  hereunder  shall  give rise to any  estoppel
against you, or excuse the undersigned from performing  hereunder.  Your waiver
of any  right to  demand  performance  hereunder  shall  not be a waiver of any
subsequent or other right to demand performance hereunder.

         This Guaranty shall bind the undersigned's  successors and assigns and
the benefits  thereof shall extend to and include your  successors and assigns.
In the event of default  hereunder,  you may at any time inspect  undersigned's
records,  or at your  option,  undersigned  shall  furnish  you with a  current
independent audit report.

         If any provisions of this Guaranty are in conflict with any applicable
statute, rule or law, then such provisions shall be deemed null and void to the
extent that they may conflict  therewith,  but without  invalidating  any other
provisions hereof.

         THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES  HEREUNDER
SHALL, IN ALL RESPECTS,  BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE  WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT  REGARD TO THE CONFLICT OF LAWS
PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION,  VALIDITY AND
PERFORMANCE.  The parties agree that any action or proceeding arising out of or
relating to this  Guaranty  shall be  commenced  in any state or Federal  court
located in New York County,  City of New York, State of New York, and that such
courts shall have  exclusive  jurisdiction  to hear and determine any claims or
disputes  between or among any of the parties hereto or thereto relating to the
transaction contemplated by this Guaranty, and any investigation, litigation or
proceeding  related to or arising out of any such matters;  provided,  however,
that the parties hereto  acknowledge  that any appeals from those courts may be
heard by a court  located  outside  of such  jurisdiction.  Each  party  hereto
expressly submits and consents in advance to such jurisdiction in any action or
suit  commenced in any such court,  and hereby waives any objection  which such
party may have  based upon lack of  personal  jurisdiction,  improper  venue or
inconvenient  form.  The parties  further  agree that a summons  and  complaint
commencing an action or  proceeding in any such court shall be properly  served
and shall confer  personal  jurisdiction  if served  personally or by certified
mail to it at its  address  set forth  herein,  or as it may provide in writing
from time to time, or as otherwise  provided under the laws of the State of New
York.

         Each signatory on behalf of a corporate guarantor warrants that he had
authority to sign on behalf of such corporation and by so signing, to bind said
guarantor corporation hereunder.
<PAGE>
         IN WITNESS  WHEREOF,  this Corporate  Guaranty is executed the day and
year above written.


                                          TRANSIT GROUP, INC.


                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          2859  Paces   Ferry Road
                                          Suite   1740
                                          Atlanta,  Georgia  30339
                                          Facsimile: (770) 444-0246


                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO
                                          CAROLINA-PACIFIC DISTRIBUTORS, INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO
                                          5265 Surrett Drive
                                          Archdale, North Carolina  27263
                                          Facsimile:  (336)434-4310


                                          CERTIFIED TRANSPORT, INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          2415 W. Thompson Road
                                          Indianapolis, Indiana  46217
                                          Facsimile:  (317)780-6434


                                          RAINBOW TRUCKING SERVICES, INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          2425 Ralph Avenue
                                          Louisville, Kentucky  40216
                                          Facsimile:  (502)448-8992


                                          TRANSPORTATION RESOURCES
                                          AND MANAGEMENT, INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO
                                          
                                          5003 US 30 West
                                          Suite 1
                                          Fort Wayne, Indiana  46898
                                          Facsimile:  (219)471-0833


                                          CARROLL FULMER & CO., INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          8340 American Way
                                          Groveland, Florida  34736
                                          Facsimile:  (352)429-1010


                                          KJ TRANSPORTATION, INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          6070 Collette Road
                                          Farmington, New York  14425
                                          Facsimile:  (716)924-9959


                                          SERVICE EXPRESS, INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          504 Bear Creek Cut Off Road
                                          Tuscaloosa, Alabama  35403
                                          Facsimile:  (205)345-6900


                                          DIVERSIFIED TRUCKING CORP.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          309 Williamson Avenue
                                          Opelika, AL 36804-7313
                                          Facsimile: (334-)742-0592

                                          NORTHSTAR TRANSPORTATION, INC.
                                          Lessee

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO
                                          
                                          410 Twitchell Road
                                          Dothan, Alabama  36303
                                          Facsimile:  (334)712-2499

                                          TRANSIT LEASING, INC. f/k/a
                                          CAPITOL WAREHOUSE INC.
                                          Lessee


                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          Facsimile:(770)444-0246

                                          J&L TRUCK LEASING OF FARMINGTON, INC.

                                          By: /s/ Philip A. Belyew
                                          Name: Philip A. Belyew
                                          Title: CEO

                                          Facsimile:(716)924-9959
<PAGE>
                              CERTIFIED RESOLUTION

         The undersigned  hereby  certifies that he/she is Secretary of each of
Transit Group, Inc., Carolina-Pacific Distributors,  Inc., Certified Transport,
Inc., Rainbow Trucking Services, Inc., Transportation Resources and Management,
Inc., Carroll Fulmer & Co., Inc., Service Express,  Inc.,  Diversified Trucking
Corp., Northstar Transportation,  Inc., and Transit Leasing, Inc. f/k/a Capitol
Warehouse Inc.; that the following  resolution was passed by unanimous  consent
of the Board of Directors of said  corporations,  that said  resolution has not
since been  revoked  or  amended,  and that the form of  guaranty  referred  to
therein is the form shown attached hereto:

         "RESOLVED,  that  it is to the  benefit  of this  corporation  that it
execute a guaranty of the obligations of KJ Transportation,  Inc. and J&L Truck
Leasing of  Farmington,  Inc.  to General  Electric  Capital  Corporation  ("GE
Capital")  and that the benefit to be received  by this  corporation  from such
guaranty is reasonably worth the obligations  thereby  guaranteed,  and further
that such guaranty shall be substantially in the form annexed to these minutes,
and further that the Philip A. Belyew (title of officer) of this corporation is
authorized to execute such guaranty on behalf of this corporation."

         WITNESS my hand on this 12th day of November, 1998.

(SEAL)
                                                     /s/ Wayne N. Nellums  
                                                     Wayne N. Nellums
                                   Secretary


              CERTIFICATION AND REPRESENTATION BY SIGNING OFFICER

         The  undersigned  being  the  CEO of each  of the  corporations  which
executed the guaranty  attached  hereto,  hereby  certifies  and  represents to
General Electric Capital Corporation that the undersigned executed the guaranty
for and on behalf of said corporations and that in so executing said instrument
the  undersigned  was duly  authorized  to do so in his/her  named  capacity as
officer and by so executing to hereby bind said guarantor  corporations  to the
terms of said instrument as therein set forth.


                                                        /s/ Philip A. Belyew
Dated: November 12, 1998                                Philip A. Belyew(L.S.)