Document:

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                                                                    EXHIBIT 10.2

                                                                [Execution Copy]

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                            SCS TRANSPORTATION, INC.

                                  $125,000,000

                                  SENIOR NOTES

                             MASTER SHELF AGREEMENT

                         DATED AS OF SEPTEMBER 20, 2002

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This Agreement contains
confidentiality provisions
(paragraph 11S)

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                                TABLE OF CONTENTS

                             (Not Part of Agreement)

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                                                                                                               PAGE
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<S>                                                                                                            <C>
1.      AUTHORIZATION OF ISSUE OF NOTES...........................................................................1

2.      PURCHASE AND SALE OF NOTES................................................................................2

    2A.      FACILITY.............................................................................................2
    2B.      ISSUANCE PERIOD......................................................................................2
    2C.      PERIODIC SPREAD INFORMATION..........................................................................2
    2D.      REQUEST FOR PURCHASE.................................................................................3
    2E.      RATE QUOTES..........................................................................................3
    2F.      ACCEPTANCE...........................................................................................3
    2G.      MARKET DISRUPTION....................................................................................4
    2H.      CLOSING..............................................................................................4
     2H(1).    SERIES A CLOSING...................................................................................4
     2H(2).    SUBSEQUENT CLOSINGS................................................................................5
     2H(3).    RESCHEDULED CLOSINGS...............................................................................5
    2I.      FEES.................................................................................................6
     2I(1).    STRUCTURING FEE....................................................................................6
     2I(2).    ISSUANCE FEE.......................................................................................6
     2I(3).    DELAYED DELIVERY FEE...............................................................................6
     2I(4).    CANCELLATION FEE...................................................................................6

3.      CONDITIONS OF CLOSING.....................................................................................7

    3A.      CERTAIN DOCUMENTS....................................................................................7
    3B.      REPRESENTATIONS AND WARRANTIES; NO DEFAULT...........................................................9
    3C.      PURCHASE PERMITTED BY APPLICABLE LAWS................................................................9
    3D.      LEGAL MATTERS........................................................................................9
    3E.      PAYMENT OF FEES.....................................................................................10
    3F.      PROCEEDINGS.........................................................................................10
    3G.      PRIVATE PLACEMENT NUMBERS...........................................................................10
    3H.      RELATED PROCEEDINGS.................................................................................10

4.      PREPAYMENTS..............................................................................................10

    4A.      REQUIRED PREPAYMENTS................................................................................10
    4B.      OPTIONAL PREPAYMENT WITH YIELD-MAINTENANCE AMOUNT...................................................10
    4C.      NOTICE OF OPTIONAL PREPAYMENT.......................................................................11
    4D.      APPLICATION OF PREPAYMENTS..........................................................................11
    4E.      RETIREMENT OF NOTES.................................................................................11

5.      AFFIRMATIVE COVENANTS....................................................................................11

    5A.      FINANCIAL STATEMENTS; NOTICE OF DEFAULTS............................................................11

</TABLE>

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<TABLE>
<S>                                                                                                             <C>
    5B.      INFORMATION REQUIRED BY RULE 144A...................................................................13
    5C.      INSPECTION OF PROPERTY..............................................................................13
    5D.      COVENANT TO SECURE NOTES EQUALLY....................................................................14
    5E.      COMPLIANCE WITH LAWS................................................................................14
    5F.      INSURANCE...........................................................................................14
    5G.      MAINTENANCE OF EXISTENCE............................................................................14
    5H.      MAINTENANCE OF PROPERTY.............................................................................14
    5I.      PAYMENT OF TAXES....................................................................................15
    5J.      PARITY WITH OTHER INDEBTEDNESS......................................................................15
    5K.      ERISA...............................................................................................15
    5L.      ENVIRONMENTAL COVENANTS.............................................................................16
    5M.      MOST FAVORED LENDER STATUS..........................................................................17
    5N.      COVENANT REGARDING SUBSIDIARY GUARANTY..............................................................17

6.      NEGATIVE COVENANTS.......................................................................................17

    6A.      FINANCIAL COVENANTS.................................................................................17
     6A(1).    TOTAL INDEBTEDNESS TO EBITDAR RATIO...............................................................17
     6A(2).    ADJUSTED TOTAL INDEBTEDNESS TO EBITDAR RATIO......................................................17
     6A(3).    INTEREST COVERAGE.................................................................................18
     6A(4).    TANGIBLE NET WORTH................................................................................18
    6B.      DIVIDENDS...........................................................................................18
    6C.      LIENS, INDEBTEDNESS, AND OTHER RESTRICTIONS.........................................................18
     6C(1).    LIENS.............................................................................................18
     6C(2).    DEBT..............................................................................................19
     6C(3).    LOANS, ADVANCES AND INVESTMENTS...................................................................20
     6C(4).    SALE OF STOCK AND INDEBTEDNESS OF SUBSIDIARIES....................................................21
     6C(5).    MERGER AND CONSOLIDATION..........................................................................21
     6C(6).    TRANSFER OF ASSETS................................................................................22
     6C(7).    SALE AND LEASE-BACK...............................................................................22
     6C(8).    SALE OR DISCOUNT OF RECEIVABLES...................................................................22
     6C(9).  RELATED PARTY TRANSACTIONS..........................................................................22
    6D.      ISSUANCE OF STOCK BY SUBSIDIARIES...................................................................23
    6E.      SUBSIDIARY RESTRICTIONS.............................................................................23
    6F.      CHANGE OF BUSINESS..................................................................................23
    6G.      BORROWING BASE......................................................................................23
    6H.      ACQUISITIONS........................................................................................23

7.      EVENTS OF DEFAULT........................................................................................24

    7A.      ACCELERATION........................................................................................24
    7B.      RESCISSION OF ACCELERATION..........................................................................27
    7C.      NOTICE OF ACCELERATION OR RESCISSION................................................................27
    7D.      OTHER REMEDIES......................................................................................28

8.      REPRESENTATIONS, COVENANTS AND WARRANTIES................................................................28

    8A.      ORGANIZATION........................................................................................28
    8B.      FINANCIAL STATEMENTS................................................................................28
</TABLE>

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<TABLE>
<S>                                                                                                            <C>
    8C.      ACTIONS PENDING.....................................................................................29
    8D.      OUTSTANDING INDEBTEDNESS............................................................................29
    8E.      TITLE TO PROPERTIES.................................................................................29
    8F.      TAXES...............................................................................................29
    8G.      CONFLICTING AGREEMENTS AND OTHER MATTERS............................................................30
    8H.      OFFERING OF NOTES...................................................................................30
    8I.      USE OF PROCEEDS.....................................................................................30
    8J.      ERISA...............................................................................................31
    8K.      GOVERNMENTAL CONSENT................................................................................31
    8L.      ENVIRONMENTAL COMPLIANCE............................................................................31
    8M.      UTILITY COMPANY STATUS..............................................................................31
    8N.      INVESTMENT COMPANY STATUS...........................................................................32
    8O.      RULE 144A...........................................................................................32
    8P.      DISCLOSURE..........................................................................................32
    8Q.      DELIVERY OF CREDIT AGREEMENT........................................................................32
    8R.      HOSTILE TENDER OFFERS...............................................................................32
    8S.      INTERSTATE COMMERCE ACT.............................................................................32

9.      REPRESENTATIONS OF THE PURCHASERS........................................................................32

    9A.      NATURE OF PURCHASE..................................................................................32
    9B.      SOURCE OF FUNDS.....................................................................................32

10.     DEFINITIONS; ACCOUNTING MATTERS..........................................................................34

    10A.     YIELD-MAINTENANCE TERMS.............................................................................34
    10B.     OTHER TERMS.........................................................................................36
    10C.     ACCOUNTING PRINCIPLES, TERMS AND DETERMINATIONS.....................................................47

11.     MISCELLANEOUS............................................................................................48

    11A.     NOTE PAYMENTS.......................................................................................48
    11B.     EXPENSES............................................................................................48
    11C.     CONSENT TO AMENDMENTS...............................................................................49
    11D.     FORM, REGISTRATION, TRANSFER AND EXCHANGE OF NOTES; LOST NOTES......................................50
    11E.     PERSONS DEEMED OWNERS; PARTICIPATIONS...............................................................51
    11F.     SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT........................................51
    11G.     SUCCESSORS AND ASSIGNS..............................................................................51
    11H.     INDEPENDENCE OF COVENANTS...........................................................................51
    11I.     NOTICES.............................................................................................51
    11J.     PAYMENTS DUE ON NON-BUSINESS DAYS...................................................................52
    11K.     SEVERABILITY........................................................................................52
    11L.     DESCRIPTIVE HEADINGS................................................................................52
    11M.     SATISFACTION REQUIREMENT............................................................................52
    11N.     GOVERNING LAW.......................................................................................53
    11O.     SEVERALTY OF OBLIGATIONS............................................................................53
    11P.     COUNTERPARTS........................................................................................53
</TABLE>

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<TABLE>
<S>                                                                                                             <C>
    11Q.     BINDING AGREEMENT...................................................................................53
    11R.     WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION.......................................................54
    11S.     CONFIDENTIAL INFORMATION............................................................................55
</TABLE>

PURCHASER SCHEDULE

SCHEDULE 6C(1) -- EXISTING LIENS

SCHEDULE 6C(3) -- EXISTING INVESTMENTS

SCHEDULE 8G -- LIST OF AGREEMENTS RESTRICTING INDEBTEDNESS

EXHIBIT A-1 -- FORM OF NOTE

EXHIBIT A-2 -- FORM OF SERIES A NOTE

EXHIBIT B -- FORM OF REQUEST FOR PURCHASE

EXHIBIT C -- FORM OF CONFIRMATION OF ACCEPTANCE

EXHIBIT D -- FORM OF OPINION OF COMPANY'S COUNSEL

EXHIBIT E -- FORM OF WRITTEN FUNDING INSTRUCTIONS

EXHIBIT F -- FORM OF SUBSIDIARY GUARANTY AGREEMENT

EXHIBIT G -- FORM OF SHARING AGREEMENT

EXHIBIT H -- FORM OF COMPLIANCE CERTIFICATE

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                            SCS TRANSPORTATION, INC.
                                 ONE MAIN PLAZA
                                4435 MAIN STREET
                              KANSAS CITY, MO 64111

                                                        As of September 20, 2002

To:   Prudential Investment Management, Inc.
        ("PRUDENTIAL")
      The Prudential Insurance Company of America ("PICA")
      Pruco Life Insurance Company
      Reliastar Life Insurance Company
      Southland Life Insurance Company
      Each Prudential Affiliate (as hereinafter defined)
        which becomes bound by certain provisions of this
        Agreement as hereinafter provided (together with
        PICA, the "PURCHASERS")
      c/o Prudential Capital Group
      Gateway Center Four
      100 Mulberry Street
      Newark, NJ 07102-4069

Ladies and Gentlemen:

                  The undersigned, SCS Transportation, Inc. (the "COMPANY"),
hereby agrees with you as follows:

                  1. AUTHORIZATION OF ISSUE OF NOTES. The Company will authorize
the issue of its senior promissory notes (the "NOTES") in the aggregate
principal amount of $125,000,000, to be dated the date of issue thereof; to
mature, in the case of each Note so issued, no more than 12 years after the date
of original issuance thereof; to have an average life, in the case of each Note
so issued, of no more than eight years after the date of original issuance
thereof; to bear interest on the unpaid balance thereof from the date thereof at
the rate per annum, and to have such other particular terms, as shall be set
forth, in the case of each Note so issued, in the Confirmation of Acceptance
with respect to such Note delivered pursuant to paragraph 2F; and to be
substantially in the form of Exhibit A-1 attached hereto. The term "NOTES" as
used herein shall include each Note delivered pursuant to any provision of this
Agreement and each Note delivered in substitution or exchange for any such Note
pursuant to any such provision. Notes which have (i) the same final maturity,
(ii) the same principal

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prepayment dates, (iii) the same principal prepayment amounts (as a percentage
of the original principal amount of each Note), (iv) the same interest rate, (v)
the same interest payment periods, and (vi) the same original date of issuance
are herein called a "SERIES" of Notes. Capitalized terms used herein have the
meanings specified in paragraph 10.

                  2.  PURCHASE AND SALE OF NOTES.

                  2A. FACILITY. Prudential is willing to consider, in its sole
discretion and within limits which may be authorized for purchase by the
Purchasers from time to time, the purchase of Notes pursuant to this Agreement.
The willingness of Prudential to consider such purchase of Notes is herein
called the "FACILITY". At any time, the aggregate principal amount of Notes
stated in paragraph 1, minus the aggregate principal amount of Notes purchased
and sold pursuant to this Agreement prior to such time, minus the aggregate
principal amount of Accepted Notes (as hereinafter defined) which have not yet
been purchased and sold hereunder prior to such time is herein called the
"AVAILABLE FACILITY AMOUNT" at such time. NOTWITHSTANDING THE WILLINGNESS OF
PRUDENTIAL TO CONSIDER PURCHASES OF NOTES BY PRUDENTIAL AFFILIATES, THIS
AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL
NOR ANY PRUDENTIAL AFFILIATE SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO
PURCHASE NOTES, OR TO QUOTE RATES, SPREADS OR OTHER TERMS WITH RESPECT TO
SPECIFIC PURCHASES OF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS A
COMMITMENT BY PRUDENTIAL OR ANY PRUDENTIAL AFFILIATE.

                  2B. ISSUANCE PERIOD. Notes may be issued and sold pursuant to
this Agreement until the earlier of (i) the third anniversary of the date of
this Agreement (or if any such anniversary is not a Business Day, the Business
Day next preceding such anniversary) and (ii) the thirtieth day after Prudential
shall have given to the Company, or the Company shall have given to Prudential,
written notice stating that it elects to terminate the issuance and sale of
Notes pursuant to this Agreement (or if such thirtieth day is not a Business
Day, the Business Day next preceding such thirtieth day). The period during
which Notes may be issued and sold pursuant to this Agreement is herein called
the "ISSUANCE PERIOD."

                  2C. PERIODIC SPREAD INFORMATION. Provided no Default or Event
of Default exists, not later than 9:30 A.M. (New York City local time) on a
Business Day during the Issuance Period if there is an Available Facility Amount
on such Business Day, the Company may request by telecopier or telephone, and
Prudential will, to the extent reasonably practicable, provide to the Company on
such Business Day (or, if such request is received after 9:30 A.M. (New York
City local time) on such Business Day, on the following Business Day),
information (by telecopier or telephone) with respect to various spreads at
which Prudential Affiliates might be interested in purchasing Notes of different
average lives; provided, however, that the Company may not make such requests
more frequently than once in every five Business Days or such other period as
shall be mutually agreed to by the Company and

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Prudential. The amount and content of information so provided shall be in the
sole discretion of Prudential but it is the intent of Prudential to provide
information which will be of use to the Company in determining whether to
initiate procedures for use of the Facility. Information so provided shall not
constitute an offer to purchase Notes, and neither Prudential nor any Prudential
Affiliate shall be obligated to purchase Notes at the spreads specified.
Information so provided shall be representative of potential interest only for
the period commencing on the day such information is provided and ending on the
earlier of the fifth Business Day after such day and the first day after such
day on which further spread information is provided. Prudential may suspend or
terminate providing information pursuant to this paragraph 2C for any reason,
including its determination that the credit quality of the Company has declined
since the date of this Agreement.

                  2D. REQUEST FOR PURCHASE. The Company may from time to time
during the Issuance Period make requests for purchases of Notes (each such
request being a "REQUEST FOR PURCHASE"). Each Request for Purchase shall be made
to Prudential by telecopier or overnight delivery service, and shall (i) specify
the aggregate principal amount of Notes covered thereby, which shall not be less
than $5,000,000 and not be greater than the Available Facility Amount at the
time such Request for Purchase is made, (ii) specify the principal amounts,
final maturities, principal prepayment dates and amounts and interest payment
periods (quarterly or semi-annual in arrears) of the Notes covered thereby,
(iii) specify the use of proceeds of such Notes, (iv) specify the proposed day
for the closing of the purchase and sale of such Notes, which shall be a
Business Day during the Issuance Period not less than 10 days and not more than
25 days after the making of such Request for Purchase, (v) specify the number of
the account and the name and address of the depository institution to which the
purchase prices of such Notes are to be transferred on the Closing Day for such
purchase and sale, (vi) certify that the representations and warranties
contained in paragraph 8 are true on and as of the date of such Request for
Purchase and that there exists on the date of such Request for Purchase no Event
of Default or Default, (vii) specify the Designated Spread for such Notes and
(viii) be substantially in the form of Exhibit B attached hereto. Each Request
for Purchase shall be in writing and shall be deemed made when received by
Prudential.

                  2E. RATE QUOTES. Not later than five Business Days after the
Company shall have given Prudential a Request for Purchase pursuant to paragraph
2D, Prudential may, but shall be under no obligation to, provide to the Company
by telephone or telecopier, in each case between 9:30 A.M. and 1:30 P.M. New
York City local time (or such later time as Prudential may elect) interest rate
quotes for the several principal amounts, maturities, principal prepayment
schedules, and interest payment periods of Notes specified in such Request for
Purchase. Each quote shall represent the interest rate per annum payable on the
outstanding principal balance of such Notes, at which a Prudential Affiliate
would be willing to purchase such Notes at 100% of the principal amount thereof.

                  2F. ACCEPTANCE. Within 30 minutes after Prudential shall have
provided any interest rate quotes pursuant to paragraph 2E or such shorter
period as Prudential may specify

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to the Company (such period being the "ACCEPTANCE WINDOW"), the Company may,
subject to paragraph 2G, elect to accept such interest rate quotes as to not
less than $5,000,000 aggregate principal amount of the Notes specified in the
related Request for Purchase. Such election shall be made by an Authorized
Officer of the Company notifying Prudential by telephone or telecopier within
the Acceptance Window that the Company elects to accept such interest rate
quotes, specifying the Notes (each such Note being an "ACCEPTED NOTE") as to
which such acceptance (an "ACCEPTANCE") relates. The day the Company notifies an
Acceptance with respect to any Accepted Notes is herein called the "ACCEPTANCE
DAY" for such Accepted Notes. Any interest rate quotes as to which Prudential
does not receive an Acceptance within the Acceptance Window shall expire, and no
purchase or sale of Notes hereunder shall be made based on such expired interest
rate quotes. Subject to paragraph 2G and the other terms and conditions hereof,
the Company agrees to sell to a Prudential Affiliate, and Prudential agrees to
cause the purchase by a Prudential Affiliate of, the Accepted Notes at 100% of
the principal amount of such Notes. As soon as practicable following the
Acceptance Day, the Company, Prudential and each Prudential Affiliate which is
to purchase any such Accepted Notes will execute a confirmation of such
Acceptance substantially in the form of Exhibit C attached hereto (a
"CONFIRMATION OF ACCEPTANCE"). If the Company should fail to execute and return
to Prudential within two Business Days following receipt thereof a Confirmation
of Acceptance with respect to any Accepted Notes, Prudential may at its election
at any time prior to its receipt thereof cancel the closing with respect to such
Accepted Notes by so notifying the Company in writing.

                  2G. MARKET DISRUPTION. Notwithstanding the provisions of
paragraph 2F, if Prudential shall have provided interest rate quotes pursuant to
paragraph 2E and thereafter prior to the time an Acceptance with respect to such
quotes shall have been notified to Prudential in accordance with paragraph 2F
the domestic market for U.S. Treasury securities or derivatives shall have
closed or there shall have occurred a general suspension, material limitation,
or significant disruption of trading in securities generally on the New York
Stock Exchange or in the domestic market for U.S. Treasury securities or
derivatives, then such interest rate quotes shall expire, and no purchase or
sale of Notes hereunder shall be made based on such expired interest rate
quotes. If the Company thereafter notifies Prudential of the Acceptance of any
such interest rate quotes, such Acceptance shall be ineffective for all purposes
of this Agreement, and Prudential shall promptly notify the Company that the
provisions of this paragraph 2G are applicable with respect to such Acceptance.

                  2H.    CLOSING.

                  2H(1). SERIES A CLOSING. The Company hereby agrees to sell to
the Purchasers and, subject to the terms and conditions herein set forth, each
Purchaser agrees to purchase from the Company under the Facility 7.38% Senior
Notes, Series A, due December 31, 2013 (the "SERIES A NOTES") in the aggregate
principal amount set forth opposite its name on the Purchaser Schedule attached
hereto at 100% of such aggregate principal amount. The Series A Notes shall be
substantially in the form of Exhibit A-2 attached hereto. The Company will

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deliver to Prudential, at the offices of Prudential Capital Group at 2200 Ross
Avenue, Suite 4200E, Dallas, Texas 75201, one or more Notes registered in the
name of the Purchasers, evidencing the aggregate principal amount of Series A
Notes to be purchased by the Purchasers and in the denomination or denominations
specified in the Purchaser Schedule attached hereto against payment of the
purchase price thereof by transfer of immediately available funds to the credit
of the Company's account #209908769 at Bank of Oklahoma, N.A., Tulsa, Oklahoma
(ABA No. 103-900-036) on the date of closing, which shall be September 30, 2002,
or any other date upon which the Company and Prudential may mutually agree in
writing (the "SERIES A CLOSING").

                  2H(2). SUBSEQUENT CLOSINGS. Not later than 11:30 A.M. (New
York City local time) on the Closing Day for any Accepted Notes, the Company
will deliver to each Purchaser listed in the Confirmation of Acceptance relating
thereto at the offices of Prudential Capital Group, 2200 Ross Avenue, Suite
4200E, Dallas, Texas 75201, the Accepted Notes to be purchased by such Purchaser
in the form of one or more Notes in authorized denominations as such Purchaser
may request for each Series of Accepted Notes to be purchased on the Closing
Day, dated the Closing Day and registered in such Purchaser's name (or in the
name of its nominee), against payment of the purchase price thereof by transfer
of immediately available funds for credit to the Company's account specified in
the Request for Purchase of such Notes.

                  2H(3). RESCHEDULED CLOSINGS. If the Company fails to tender to
any Purchaser the Accepted Notes to be purchased by such Purchaser on the
scheduled Closing Day for such Accepted Notes as provided above in this
paragraph 2H, or any of the conditions specified in paragraph 3 shall not have
been fulfilled by the time required on such scheduled Closing Day, the Company
shall, prior to 1:00 P.M., New York City local time, on such scheduled Closing
Day notify Prudential (which notification shall be deemed received by each
Purchaser) in writing whether (x) such closing is to be rescheduled (such
rescheduled date to be a Business Day during the Issuance Period not less than
one Business Day and not more than 30 Business Days after such scheduled Closing
Day (the "RESCHEDULED CLOSING DAY") and certify to Prudential (which
certification shall be for the benefit of each Purchaser) that the Company
reasonably believes that it will be able to comply with the conditions set forth
in paragraph 3 on such Rescheduled Closing Day and that the Company will pay the
Delayed Delivery Fee in accordance with paragraph 2I(3) or (y) such closing is
to be canceled as provided in paragraph 2I(4). In the event that the Company
shall fail to give such notice referred to in the preceding sentence, Prudential
(on behalf of each Purchaser) may at its election, at any time after 1:00 P.M.,
New York City local time, on such scheduled Closing Day, notify the Company in
writing that such closing is to be canceled as provided in paragraph 2I(4).
Notwithstanding anything to the contrary appearing in this Agreement, the
Company may elect to reschedule a closing with respect to any given Accepted
Notes on not more than one occasion, unless Prudential shall have otherwise
consented in writing.

                                      5

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                  2I.    FEES.

                  2I(1). STRUCTURING FEE. In consideration for the time, effort
and expense involved in the preparation, negotiation and execution of this
Agreement, the Company has agreed to pay to Prudential a Structuring Fee of
$100,000 (the "STRUCTURING FEE"), of which the Company paid $35,000 on July 24,
2002. At the time of the execution and delivery of this Agreement by the Company
and Prudential, the Company will pay to Prudential in immediately available
funds the $65,000 balance of the Structuring Fee.

                  2I(2). ISSUANCE FEE. The Company will pay to each Purchaser in
immediately available funds a fee (the "ISSUANCE FEE") on each Closing Day
(other than the Closing Day for the Series A Notes) in an amount equal to 0.125%
of the aggregate principal amount of Notes sold on such Closing Day.

                  2I(3). DELAYED DELIVERY FEE. If the closing of the purchase
and sale of any Accepted Note is delayed for any reason beyond the original
Closing Day for such Accepted Note (other than if the Company has satisfied all
the conditions in paragraph 3 on or before such Closing Day and the Purchasers
fail to purchase such Accepted Notes), the Company will pay to each Purchaser
which has executed an Acceptance for such Accepted Notes on the Cancellation
Date or actual closing date of such purchase and sale a fee (the "DELAYED
DELIVERY Fee") calculated as follows:

                           (BEY - MMY) X DTS/360 X PA

where "BEY" means Bond Equivalent Yield, i.e., the bond equivalent yield per
annum of such Accepted Note, "MMY" means Money Market Yield, i.e., the yield per
annum on a commercial paper investment of the highest quality selected by
Prudential on the date Prudential receives notice of the delay in the closing
for such Accepted Note having a maturity date or dates the same as, or closest
to, the Rescheduled Closing Day or Rescheduled Closing Days (a new alternative
investment being selected by Prudential each time such closing is delayed);
"DTS" means Days to Settlement, i.e., the number of actual days elapsed from and
including the original Closing Day with respect to such Accepted Note to but
excluding the date of such payment; and "PA" means Principal Amount, i.e., the
principal amount of the Accepted Note for which such calculation is being made.
In no case shall the Delayed Delivery Fee be less than zero. Nothing contained
herein shall obligate any Purchaser to purchase any Accepted Note on any day
other than the Closing Day for such Accepted Note, as the same may be
rescheduled from time to time in compliance with paragraph 2H.

                  2I(4). CANCELLATION FEE. If the Company at any time notifies
Prudential in writing that the Company is canceling the closing of the purchase
and sale of any Accepted Note, or if Prudential notifies the Company in writing
under the circumstances set forth in the penultimate sentence of paragraph 2H(3)
that the closing of the purchase and sale of such Accepted

                                       6
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Note is to be canceled, or if the closing of the purchase and sale of such
Accepted Note is not consummated on or prior to the last day of the Issuance
Period (the date of any such notification, or the last day of the Issuance
Period, as the case may be, being the "CANCELLATION DATE"), the Company will pay
the Purchasers in immediately available funds an amount (the "CANCELLATION FEE")
calculated as follows:

                                     PI X PA

where "PI" means Price Increase, i.e., the quotient (expressed in decimals)
obtained by dividing (a) the excess of the ask price of the Hedge Treasury
Note(s) (as determined by Prudential) on the Cancellation Date over the bid
price of the Hedge Treasury Notes(s) (as determined by Prudential) on the
Acceptance Day for such Accepted Note by (b) such bid price; and "PA" has the
meaning specified in paragraph 2I(3). The foregoing bid and ask prices shall be
as reported by Telerate Systems, Inc. (or, if such data for any reason ceases to
be available through Telerate Systems, Inc., any publicly available source of
similar market data). Each price shall be rounded to the second decimal place.
In no case shall the Cancellation Fee be less than zero.

                  3.  CONDITIONS OF CLOSING. The obligation of any Purchaser to
purchase and pay for any Notes is subject to the satisfaction, on or before the
Closing Day for such Notes, of the following conditions:

                  3A. CERTAIN DOCUMENTS. Such Purchaser shall have received the
following, each dated the date of the applicable Closing Day:

                  (i)  The Note(s) to be purchased by such Purchaser.

                  (ii) Certified copies of the resolutions of the Board of
         Directors of the Company authorizing the execution and delivery of this
         Agreement and the issuance of the Notes, and of all documents
         evidencing other necessary corporate action and governmental approvals,
         if any, with respect to this Agreement and the Notes (provided, that
         for any Closing Day occurring after the Series A Closing, the Company
         may certify that there has been no change to any applicable
         authorization or approval since the date on which it was most recently
         delivered to such Purchaser under this clause (ii) as an alternative to
         the further delivery thereof).

                  (iii) A certificate of the Secretary or an Assistant Secretary
         and one other officer of the Company certifying the names and true
         signatures of the officers of the Company authorized to sign this
         Agreement and the Notes and the other documents to be delivered
         hereunder (provided, that for any Closing Day occurring after the
         Series A Closing, the Secretary or an Assistant Secretary and one other
         officer of the Company may certify that there has been no change to the
         officers of the Company authorized to sign Notes and other documents to
         be delivered therewith since the date on which a certificate setting
         forth the names and true signatures of such officers, as described

                                       7
<PAGE>

         above, was most recently delivered to such Purchaser under this
         paragraph 3A(iii), as an alternative to the further delivery thereof).

                  (iv) Certified copies of the Certificate of Incorporation and
         By-laws of the Company (provided, that for any Closing Day occurring
         after the Series A Closing, the Company may certify that there has been
         no change to any applicable constitutive document since the date on
         which it was most recently delivered to such Purchaser under this
         paragraph 3A(iv), as an alternative to the further delivery thereof).

                  (v) A favorable opinion of Bryan Cave LLP, special counsel to
         the Company, (or such other counsel designated by the Company and
         acceptable to the Purchaser(s)) satisfactory to such Purchaser and
         substantially in the form of Exhibit D attached hereto and as to such
         other matters as such Purchaser may reasonably request. The Company
         hereby directs each such counsel to deliver such opinion, agrees that
         the issuance and sale of any Accepted Notes will constitute a
         reconfirmation of such direction, and understands and agrees that each
         Purchaser receiving such an opinion will and is hereby authorized to
         rely on such opinion.

                  (vi) A good standing certificate for the Company from the
         Secretary of State of Delaware dated of a recent date and such other
         evidence of the status of the Company as such Purchaser may reasonably
         request.

                  (vii) The Subsidiary Guaranty Agreement, duly executed and
         delivered by each of the Subsidiary Guarantors.

                  (viii) Certified copies of the resolutions of the Board of
         Directors of each Subsidiary Guarantor authorizing the execution and
         delivery of the Subsidiary Guaranty Agreement, and of all documents
         evidencing other necessary corporate action and governmental approvals,
         if any, with respect to the Subsidiary Guaranty Agreement.

                  (ix) A certificate of the Secretary or an Assistant Secretary
         and one other officer of each Subsidiary Guarantor certifying the names
         and true signatures of the officers of such Subsidiary Guarantor
         authorized to sign the Subsidiary Guaranty Agreement and the other
         documents to be delivered thereunder.

                  (x) Certified copies of the Certificate of Incorporation and
         By-laws of each Subsidiary Guarantor.

                  (xi) A good standing certificate for each Subsidiary Guarantor
         from its state of incorporation dated of a recent date and such other
         evidence of the status of such Subsidiary Guarantor as such Purchaser
         may reasonably request.

                                       8
<PAGE>

                  (xii) The Sharing Agreement duly executed by each party
         thereto.

                  (xiii) Solely with respect to the Series A Closing, certified
         copies of Requests for Information or Copies (Form UCC-11) or
         equivalent reports listing all effective financing statements which
         name the Company or any Subsidiary (under its present name and previous
         names) as debtor and which are filed in the offices of the Secretaries
         of State of Delaware, New Jersey, Missouri, Georgia and Louisiana
         together with copies of such financing statements.

                  (xiv) Additional documents or certificates with respect to
         legal matters or corporate or other proceedings related to the
         transactions contemplated hereby as may be reasonably requested by such
         Purchaser.

                  (xv) Written instructions of the Company in the form of
         Exhibit E attached hereto.

                  (xvi) Full and final written releases, in form and content
         acceptable to the Purchasers, of the guarantees given by Subsidiary
         Guarantors under the terms of the Revolving Credit Agreement dated
         April 5, 2001, between Yellow Corporation, a Delaware corporation,
         certain lenders thereunder, and Bank One, NA, as Agent.

                  3B. REPRESENTATIONS AND WARRANTIES; NO DEFAULT. The
representations and warranties contained in paragraph 8 shall be true on and as
of such Closing Day, except to the extent of changes caused by the transactions
herein contemplated; there shall exist on such Closing Day no Event of Default
or Default; and the Company shall have delivered to such Purchaser an Officer's
Certificate, dated such Closing Day, to both such effects.

                  3C. PURCHASE PERMITTED BY APPLICABLE LAWS. The purchase of and
payment for the Notes to be purchased by such Purchaser on the terms and
conditions herein provided (including the use of the proceeds of such Notes by
the Company) shall not violate any applicable law or governmental regulation
(including, without limitation, Section 5 of the Securities Act or Regulation T,
U or X of the Board of Governors of the Federal Reserve System) and shall not
subject such Purchaser to any tax, penalty, liability or other onerous condition
under or pursuant to any applicable law or governmental regulation, and such
Purchaser shall have received such certificates or other evidence as it may
request to establish compliance with this condition.

                  3D. LEGAL MATTERS. Counsel for such Purchaser, including any
special counsel for the Purchasers retained in connection with the purchase and
sale of such Accepted Notes, shall be satisfied as to all legal matters relating
to such purchase and sale, and such Purchaser shall have received from such
counsel favorable opinions as to such legal matters as it may request.

                                       9
<PAGE>

                  3E. PAYMENT OF FEES. The Company shall have paid to the
Purchasers and Prudential any fees due them pursuant to or in connection with
this Agreement, including any Structuring Fee due pursuant to paragraph 2I(1),
any Issuance Fee due pursuant to paragraph 2I(2) and any Delayed Delivery Fee
due pursuant to paragraph 2I(3).

                  3F. PROCEEDINGS. All corporate and other proceedings taken or
to be taken in connection with the transactions contemplated hereby and all
documents incident thereto shall be satisfactory in substance and form to such
Purchaser, and it shall have received all such counterpart originals or
certified or other copies of such documents as it may reasonably request.

                  3G. PRIVATE PLACEMENT NUMBERS. Private Placement numbers
issued by Standard & Poor's CUSIP Service Bureau (in cooperation with the
Securities Valuation Office of the National Association of Insurance
Commissioners) shall have been obtained for the Notes.

                  3H. RELATED PROCEEDINGS. Solely with respect to the Series A
Closing, the Credit Agreement shall be satisfactory in substance and form to
such Purchaser and shall be in full force and effect, and such Purchaser shall
have received a true, correct and complete copy thereof. In addition, such
Purchaser shall have received satisfactory evidence that the transactions
contemplated by the Credit Agreement have been consummated prior to or
concurrently with the Series A Closing, pursuant to and in accordance with the
terms and conditions of the Credit Agreement.

                  4. PREPAYMENTS. The Notes shall be subject to prepayment with
respect to any required prepayments set forth in such Notes as provided in
paragraph 4A and with respect to the optional prepayments permitted by paragraph
4B.

                  4A. REQUIRED PREPAYMENTS. The Notes of each Series shall be
subject to required prepayments, if any, set forth in the Notes of such Series.

                  4B. OPTIONAL PREPAYMENT WITH YIELD-MAINTENANCE AMOUNT. The
Notes shall be subject to prepayment, in whole at any time or from time to time
in part (in integral multiples of $100,000 and in a minimum amount of
$1,000,000), at the option of the Company, at 100% of the principal amount so
prepaid plus interest thereon to the prepayment date and the Yield-Maintenance
Amount, if any, with respect to each such Note. Any partial prepayment of Notes
pursuant to this paragraph 4B shall be applied in satisfaction of required
payments of principal of the Notes in inverse order of their scheduled due dates
unless the holders of the Notes and the Company agree to some other allocation
of a prepayment, and paragraph 4A hereof and the Notes are amended to
proportionately reduce the scheduled prepayments set forth in the Notes in a
manner agreed to by the Company and the holders of the Notes.

                                       10
<PAGE>

                  4C. NOTICE OF OPTIONAL PREPAYMENT. The Company shall give the
holder of each Note to be prepaid pursuant to paragraph 4B irrevocable written
notice of such prepayment not less than 10 Business Days prior to the prepayment
date, specifying such prepayment date, specifying the aggregate principal amount
of the Notes to be prepaid on such date, identifying each Note held by such
holder, and the principal amount of each such Note, to be prepaid on such date
and stating that such prepayment is to be made pursuant to paragraph 4B. Notice
of prepayment having been given as aforesaid, the principal amount of the Notes
specified in such notice, together with interest thereon to the prepayment date
and together with the Yield-Maintenance Amount, if any, herein provided, shall
become due and payable on such prepayment date. The Company shall, on or before
the day on which it gives written notice of any prepayment pursuant to paragraph
4B, give telephonic notice of the principal amount of the Notes to be prepaid
and the prepayment date to each Significant Holder which shall have designated a
recipient for such notices in the Purchaser Schedule attached hereto or by
notice in writing to the Company.

                  4D. APPLICATION OF PREPAYMENTS. Upon any partial prepayment of
the Notes of any Series pursuant to paragraph 4A, the amount so prepaid shall be
allocated to all outstanding Notes of such Series (including, for the purpose of
this paragraph 4D only, all Notes prepaid or otherwise retired or purchased or
otherwise acquired by the Company or any of its Subsidiaries or Affiliates other
than by prepayment pursuant to paragraph 4A or 4B) in proportion to the
respective outstanding principal amounts thereof. Upon any partial prepayment of
the Notes pursuant to 4B, the amount to be prepaid shall be applied pro rata to
all outstanding Notes of all Series (including, for the purpose of this
paragraph 4D only, all Notes prepaid or otherwise retired or purchased or
otherwise acquired by the Company or any of its Subsidiaries or Affiliates other
than by prepayment pursuant to paragraph 4A or 4B) according to the respective
unpaid principal amounts thereof.

                  4E. RETIREMENT OF NOTES. The Company shall not, and shall not
permit any of its Subsidiaries or Affiliates to, prepay or otherwise retire in
whole or in part prior to their stated installment or final maturities (other
than by prepayment pursuant to paragraphs 4A or 4B or upon acceleration of such
final maturity pursuant to paragraph 7A), or purchase or otherwise acquire,
directly or indirectly, Notes held by any holder.

                  5. AFFIRMATIVE COVENANTS. During the Issuance Period and so
long thereafter as any Note is outstanding and unpaid, the Company covenants as
follows:

                  5A. FINANCIAL STATEMENTS; NOTICE OF DEFAULTS. The Company will
deliver to each holder of any Notes in duplicate:

                  (i) as soon as practicable and in any event within 45 days
         after the end of each quarterly period (other than the last quarterly
         period) in each fiscal year (or, if earlier, such date as the Company
         is required to file a Quarterly Report on Form 10-Q with the SEC),
         consolidating and consolidated statements of income, cash flows and

                                       11
<PAGE>
         shareholders' equity of the Company and its Subsidiaries for the period
         from the beginning of the current fiscal year to the end of such
         quarterly period, and a consolidating and a consolidated balance sheet
         of the Company and its Subsidiaries as at the end of such quarterly
         period, setting forth in each case in comparative form figures for the
         corresponding period in the preceding fiscal year, all in reasonable
         detail and certified by an authorized financial officer of the Company,
         subject to changes resulting from year-end adjustments; provided,
         however, that delivery pursuant to clause (iii) below of copies of the
         Quarterly Report on Form 10-Q of the Company for such quarterly period
         filed with the SEC shall be deemed to satisfy the requirements of this
         clause (i) with respect to consolidated financial statements so long as
         such statements contained in such Quarterly Report on Form 10-Q are
         prepared in accordance with GAAP;

                  (ii) as soon as practicable and in any event within 90 days
         after the end of each fiscal year (or, if earlier, such date as the
         Company is required to file an Annual Report on Form 10-K with the
         SEC), consolidating and consolidated statements of income, cash flows
         and shareholders' equity of the Company and its Subsidiaries for such
         year, and a consolidating and consolidated balance sheet of the Company
         and its Subsidiaries as at the end of such year, setting forth in each
         case in comparative form corresponding consolidated figures from the
         preceding annual audit, all in reasonable detail and satisfactory in
         form to the Required Holder(s) and, as to the consolidated statements,
         reported on by independent public accountants of recognized national
         standing selected by the Company whose report shall be without
         limitation as to scope of the audit and satisfactory in substance to
         the Required Holder(s) and, as to the consolidating statements,
         certified by an authorized financial officer of the Company; provided,
         however, that delivery pursuant to clause (iii) below of copies of the
         Annual Report on Form 10-K of the Company for such fiscal year filed
         with the SEC shall be deemed to satisfy the requirements of this clause
         (ii) with respect to consolidated financial statements so long as such
         statements contained in such Annual Report on Form 10-K are prepared in
         accordance with GAAP;

                  (iii) promptly upon transmission thereof, copies of all such
         financial statements, proxy statements, notices and reports as it shall
         send to its public stockholders and copies of all registration
         statements (without exhibits) and all reports which it files with the
         SEC;

                  (iv) promptly upon receipt thereof, a copy of each other
         report submitted to the Company or any Subsidiary by independent
         accountants in connection with any annual, interim or special audit
         made by them of the books of the Company or any Subsidiary; and

                  (v) no later than January 31 of each year, a copy of the
         annual operating budget of the Company and its Subsidiaries; and

                                       12
<PAGE>

                  (vi) with reasonable promptness, such other information
         respecting the condition or operations, financial or otherwise, of the
         Company or any of its Subsidiaries as such holder may reasonably
         request.

Together with each delivery of financial statements required by clauses (i) and
(ii) above, the Company will deliver to each holder of any Notes an Officer's
Certificate in substantially the form of Exhibit H hereto demonstrating (with
computations in reasonable detail) compliance by the Company and its
Subsidiaries with the provisions of paragraphs 6A(1), 6A(2), 6A(3), 6A(4), 6C(6)
and 6G and stating that there exists no Event of Default or Default, or, if any
Event of Default or Default exists, specifying the nature and period of
existence thereof and what action the Company proposes to take with respect
thereto. Together with each delivery of financial statements required by clause
(ii) above, the Company will deliver to each holder of any Notes a certificate
of such accountants stating that, in making the audit necessary for their report
on such financial statements, they have obtained no knowledge of any Event of
Default or Default, or, if they have obtained knowledge of any Event of Default
or Default, specifying the nature and period of existence thereof. Such
accountants, however, shall not be liable to anyone by reason of their failure
to obtain knowledge of any Event of Default or Default which would not be
disclosed in the course of an audit conducted in accordance with generally
accepted auditing standards.

                  The Company also covenants that immediately after any
Responsible Officer obtains knowledge of an Event of Default or Default, it will
deliver to each holder of any Notes an Officer's Certificate specifying the
nature and period of existence thereof and what action the Company proposes to
take with respect thereto.

                  5B. INFORMATION REQUIRED BY RULE 144A. The Company will, upon
the request of the holder of any Note, provide such holder, and any qualified
institutional buyer designated by such holder, such financial and other
information as such holder may reasonably determine to be necessary in order to
permit compliance with the information requirements of Rule 144A under the
Securities Act in connection with the resale of Notes, except at such times as
the Company is subject to and in compliance with the reporting requirements of
section 13 or 15(d) of the Exchange Act. For the purpose of this paragraph 5B,
the term "QUALIFIED INSTITUTIONAL BUYER" shall have the meaning specified in
Rule 144A under the Securities Act.

                  5C. INSPECTION OF PROPERTY. The Company will permit any Person
designated by any holder in writing, at such holder's expense if no Default or
Event of Default exists and at the Company's expense if a Default or Event of
Default does exist, to visit and inspect any of the properties of the Company
and its Subsidiaries, to examine the corporate books and financial records of
the Company and its Subsidiaries and make copies thereof or extracts therefrom
and to discuss the affairs, finances and accounts of any of such corporations
with the principal officers of the Company and its independent public
accountants, all at such reasonable times and as often as such holder may
reasonably request.

                                       13
<PAGE>

                  5D. COVENANT TO SECURE NOTES EQUALLY. The Company will, if it
or any Subsidiary shall create or assume any Lien upon any of its property or
assets, whether now owned or hereafter acquired, other than Liens permitted by
the provisions of paragraph 6C(1) (unless prior written consent to the creation
or assumption thereof shall have been obtained pursuant to paragraph 11C), make
or cause to be made effective provision whereby the Notes will be secured by
such Lien equally and ratably with any and all other Indebtedness thereby
secured so long as any such other Indebtedness shall be so secured.

                  5E. COMPLIANCE WITH LAWS. The Company will, and will cause
each of its Subsidiaries to, comply with all laws, ordinances or governmental
rules or regulations to which each of them is subject, including, without
limitation, environmental laws, and will obtain and maintain in effect all
licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of their respective properties or to
the conduct of their respective businesses, in each case to the extent necessary
to ensure that non-compliance with such laws, ordinances or governmental rules
or regulations or failures to obtain or maintain in effect such licenses,
certificates, permits, franchises and other governmental authorizations could
not reasonably be expected, individually or in the aggregate, to have a material
adverse effect on the business, condition (financial or otherwise), operations
or prospects of the Company and its Subsidiaries taken as a whole.

                  5F. INSURANCE. The Company will, and will cause each of its
Subsidiaries to, maintain, with financially sound and reputable insurers,
insurance with respect to their respective properties and businesses against
such casualties and contingencies, of such types, on such terms and in such
amounts as is customary in the case of entities of established reputations
engaged in the same or a similar business and similarly situated.

                  5G. MAINTENANCE OF EXISTENCE. The Company will, and will cause
each of its Subsidiaries to, do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its corporate existence,
material rights, licenses, permits and franchises; provided that nothing in this
paragraph shall prevent the abandonment or termination of the existence of any
Subsidiary, or the rights or franchises of any Subsidiary or the Company if such
abandonment or termination would not have a material adverse effect upon the
business, condition (financial or otherwise) operations or prospects of the
Company and its Subsidiaries taken as a whole.

                  5H. MAINTENANCE OF PROPERTY. The Company will, and will cause
each of its Subsidiaries to, at all times maintain and preserve all property
used or useful in its business in good working order and condition, and from
time to time make, or cause to be made, all needful and proper repairs, renewals
and replacements thereto, so that the business carried on in connection
therewith may be properly conducted at all times, except to the extent that the
failure to do so would not have a material adverse effect upon the business,
condition (financial or otherwise), operations or prospects of the Company and
its Subsidiaries taken as a whole.

                                       14
<PAGE>

                  5I. PAYMENT OF TAXES. The Company will, and will cause each of
its Subsidiaries to, pay and discharge promptly all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
in respect of its property, prior to the time penalties would attach thereto, as
well as lawful claims for labor, materials and supplies or otherwise which, if
unpaid, might become a Lien or charge upon such properties or any part thereof;
provided, however, that neither the Company nor any Subsidiary shall be required
to pay and discharge or to cause to be paid and discharged any such tax,
assessment, charge, levy or claim so long as the validity or amount thereof
shall be subject to an active challenge or contest initiated in good faith for
which adequate reserves have been established in accordance with GAAP.

                  5J. PARITY WITH OTHER INDEBTEDNESS. The Company will, and will
cause its Subsidiaries to, execute all such documents and take all such actions
as the Required Holder(s) may reasonably request in order to assure that at all
times (i) the Notes shall rank in right of payment senior to or pari passu with
all other Indebtedness of the Company and (ii) each Subsidiary Guarantor's
guaranty obligations under the Subsidiary Guaranty Agreement in respect of the
Notes shall rank in right of payment senior to or pari passu with all other
Indebtedness of such Subsidiary Guarantor.

                  5K. ERISA. The Company covenants that it and each of its
Subsidiaries will deliver to you promptly and in any event within 10 days after
it knows or has reason to know of the occurrence of any event of the type
specified in clause (xiv) of paragraph 7A notice of such event and the likely
impact on the Company and its Subsidiaries. In the event it or any Subsidiary
have participated, now participates or will participate in any Plan or
Multiemployer Plan, the Company covenants that it and any such Subsidiary will
deliver to you: (i) promptly and in any event within 10 days after it knows or
has reason to know of the occurrence of a Reportable Event with respect to a
Plan, a copy of any materials required to be filed with the PBGC with respect to
such Reportable Event, together with a statement of the chief financial officer
of the Company setting forth details as to such Reportable Event and the action
which the Company proposes to take with respect thereto; (ii) at least 10 days
prior to the filing by any plan administrator of a Plan of a notice of intent to
terminate such Plan, a copy of such notice; (iii) promptly upon the reasonable
request of a Significant Holder, and in no event more than 10 days after such
request, copies of each annual report on Form 5500 that is filed with the
Internal Revenue Service, together with certified financial statements for the
Plan (if any) as of the end of such year and actuarial statements on Schedule B
to such Form 5500; (iv) promptly and in any event within 10 days after it knows
or has reason to know of any event or condition which might constitute grounds
under section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Plan, a statement of the chief financial officer of
the Company describing such event or condition; (v) promptly and in no event
more than 10 days after its or any ERISA Affiliate's receipt thereof, the notice
concerning the imposition of any withdrawal liability under section 4202 of
ERISA; and (vi) promptly after receipt thereof, a copy of any notice the Company
or any ERISA Affiliate may receive from the PBGC or the Internal Revenue Service
with respect to any Plan or

                                       15
<PAGE>

Multiemployer Plan; provided, however, that this paragraph 5K shall not apply to
notices of general application promulgated by the PBGC or the Internal Revenue
Service.

                  5L. ENVIRONMENTAL COVENANTS.

                  (i) The Company will maintain an environmental management
         system that is designed (A) to monitor the Company's and its
         Subsidiaries' compliance with Environmental and Safety Laws and (B) to
         minimize the Company's and its Subsidiaries' exposure to liabilities
         under Environmental and Safety Laws, including, but not limited to, the
         Company's and its Subsidiaries' exposure to liabilities under contracts
         or agreements with its customers or partners. In addition, the
         environmental management system shall ensure that the Company's and its
         Subsidiaries' potential exposures to liabilities under Environmental
         and Safety Laws are adequately insured against pursuant to paragraph
         5F.

                  (ii) The Company will immediately notify each holder of Notes
         of and provide such holder with copies of any notifications of
         violations or notifications of discharges or releases or threatened
         releases or discharges of a Hazardous Substance on, upon, into or from
         any property of the Company or any Subsidiary, or any property where
         the Company or its Subsidiaries is conducting operations, which are
         received or are given or required to be given by or on behalf of the
         Company or any of its Subsidiaries to any federal, state or local
         governmental agency or authority if any of the foregoing may materially
         and adversely affect the Company or any of its Subsidiaries. Copies of
         such notifications shall be delivered to the holders at the same time
         as they are delivered to the governmental agency or authority.

                  (iii) The Company further agrees promptly to undertake and
         pursue diligently to completion, or to cause its Subsidiaries to
         undertake and pursue diligently to completion, any appropriate and
         legally required remedial containment and cleanup action in the event
         of any release or discharge or threatened release or discharge of a
         Hazardous Substance on, upon, into or from any property of the Company
         or any Subsidiary.

                  (iv) At all times, the Company will maintain and retain, or
         cause its Subsidiaries to maintain and retain, complete and accurate
         records of all releases, discharges or other disposal of Hazardous
         Substances on, onto, into or from (A) any property of the Company or
         any Subsidiary or (B) any property on or adjacent to which the Company
         or any of its Subsidiaries conducts operations ("THIRD PARTY PROPERTY")

                                       16
<PAGE>

         if such releases, discharges, or other disposal on Third Party
         Properties is caused by the Company or any of its Subsidiaries or any
         Person under their control or acting on their behalf.

                  5M. MOST FAVORED LENDER STATUS. The Company will not amend the
Credit Agreement to include one or more Additional Covenants or Additional
Defaults, unless prior written consent to such amendment shall have been
obtained pursuant to paragraph 11C; provided, however, in the event that the
Company or any Subsidiary shall enter into, assume or otherwise become bound by
or obligated under any such agreement without the prior written consent of the
Required Holder(s), the terms of this Agreement shall, without any further
action on the part of the Company or any of the holders of the Notes, be deemed
to be amended automatically to include each Additional Covenant and each
Additional Default contained in such agreement. The Company further covenants to
promptly execute and deliver at its expense (including the reasonable fees and
expenses of counsel for the holders of the Notes) an amendment to this Agreement
in form and substance satisfactory to the Required Holder(s) evidencing the
amendment of this Agreement to include such Additional Covenants and Additional
Defaults, provided that the execution and delivery of such amendment shall not
be a precondition to the effectiveness of such amendment as provided for in this
paragraph 5M, but shall merely be for the convenience of the parties hereto.

                  5N. COVENANT REGARDING SUBSIDIARY GUARANTY. The Company shall
cause each Subsidiary created or acquired after the date hereof to guaranty the
obligations of the Company under this Agreement and the Notes by executing a
copy of the Guarantor Supplement attached as Annex A to the Subsidiary Guaranty
promptly after the creation or acquisition of such Subsidiary.

                  6. NEGATIVE COVENANTS. During the Issuance Period and so long
thereafter as any Note or other amount due hereunder is outstanding and unpaid,
the Company covenants as follows:

                  6A. FINANCIAL COVENANTS.

                  6A(1). TOTAL INDEBTEDNESS TO EBITDAR RATIO. The Company will
not permit, on any date, the ratio of (i) Total Indebtedness excluding all
letters of credit on such date to (ii) EBITDAR for the period of four
consecutive fiscal quarters most recently ended on or prior to such date, to be
greater than 2.75 to 1.00.

                  6A(2). ADJUSTED TOTAL INDEBTEDNESS TO EBITDAR RATIO. The
Company will not permit, on any date, the ratio of (i) Adjusted Total
Indebtedness on such date to (ii) EBITDAR for the period of four consecutive
fiscal quarters most recently ended on or prior to such date, to be greater than
3.00 to 1.00.

                                       17

<PAGE>
                  6A(3). INTEREST COVERAGE. The Company will not permit, on any
date, the ratio of EBIT to Interest Expense in each case for the period of four
consecutive quarters ended on or prior to such date, to be less than 1.75 to
1.00.

                  6A(4). TANGIBLE NET WORTH. The Company will not permit
Tangible Net Worth at any time to be less than $113,000,000 plus the sum of (i)
75% of positive Net Income in each fiscal quarter commencing with the fiscal
quarter ended September 30, 2002 and (ii) 75% of the Net Proceeds from the
issuance and sale of equity securities after the date hereof.

                  6B. DIVIDENDS. The Company shall not declare nor pay any
dividend on any class of the capital stock of the Company now or hereafter
outstanding, make any distribution of cash or property to holders of any shares
of such stock, or redeem, retire, purchase or otherwise acquire, directly or
indirectly, any shares of any class of any capital stock of the Company now or
hereafter outstanding, or make any equity investment in its Subsidiaries.

                  6C. LIENS, INDEBTEDNESS, AND OTHER RESTRICTIONS.

                  6C(1). LIENS. The Company will not and will not permit any
Subsidiary to create, assume or suffer to exist any Lien upon any of its
properties or assets, whether now owned or hereafter acquired, or any income,
participation, royalty or profits therefrom (whether or not provision is made
for the equal and ratable securing of the Notes in accordance with the
provisions of paragraph 5D), except

                  (i) Liens for taxes, assessments or other governmental levies
         or charges not yet due or which are being contested in good faith by
         the Company or any Subsidiary for which adequate reserves have been
         taken in accordance with GAAP;

                  (ii) statutory Liens of landlords and Liens of carriers,
         contractors, warehousemen, mechanics and materialmen incurred in the
         ordinary course of business for sums not yet due or are being contested
         in good faith by the Company or any Subsidiary for which adequate
         reserves have been taken in accordance with GAAP;

                  (iii) Liens on property or assets of a Subsidiary to secure
         obligations of such Subsidiary to the Company or a Wholly Owned
         Subsidiary;

                  (iv) Liens (other than any Lien imposed by ERISA) incurred, or
         deposits made, in the ordinary course of business (A) in connection
         with workers' compensation, unemployment insurance, old age benefit and
         other types of social security, (B) to secure (or to obtain letters of
         credit that secure) the performance of tenders, statutory obligations,
         surety and appeal bonds, bids, leases, performance bonds, purchase,
         construction, government or sales contracts and other similar
         obligations or (C) otherwise to satisfy statutory or legal obligations;
         provided that in each such case such Liens (1) were not incurred or
         made in connection with the

                                       18
<PAGE>

         incurrence or maintenance of Indebtedness, the borrowing of money, the
         obtaining of advances or credit, and (2) do not in the aggregate
         materially detract from the value of the property or assets so
         encumbered or materially impair the use thereof in the operation of its
         business;

                  (v) Liens in existence on the date hereof as set forth on
         Schedule 6C(1) hereto;

                  (vi) minor survey exceptions or minor encumbrances, easements
         or reservations, or rights of others for rights-of-way, utilities and
         other similar purposes, or zoning or other restrictions as to use of
         real property, that are necessary for the conduct of the operations of
         the Company and its Subsidiaries or that customarily exist on
         properties of corporations engaged in similar businesses and are
         similarly situated and that do not in any event materially impair their
         value or their use in the operations of the Company and its
         Subsidiaries;

                  (vii) any attachment or judgment Lien, unless the judgment it
         secures shall not, within 30 days after the entry thereof, have been
         discharged or execution thereof stayed pending appeal; provided the
         aggregate amount of such attachment or judgment Liens shall not secure
         obligations in excess of $2,500,000 at any time; and

                  (viii) at any time before December 31, 2002, Liens represented
         by the mortgages and deeds of trust listed as items 1, 2, 3 and 4 in
         Schedule 6C(1) provided none of such mortgages or deeds of trust secure
         any Indebtedness.

                  6C(2). DEBT. The Company will not and will not permit any
Subsidiary to create, incur, assume or suffer to exist any Indebtedness, except

                  (i) Indebtedness of any Subsidiary to the Company or a Wholly
         Owned Subsidiary;

                  (ii) Indebtedness of any Subsidiary Guarantor under the
         Subsidiary Guaranty Agreement;

                  (iii) Indebtedness of any Subsidiary Guarantor under any
         Credit Agreement Guaranty so long as the Sharing Agreement is in
         effect; and

                  (iv) obligations of the Company under this Agreement, the
         Notes, the Credit Agreement, the Subordinated Debt, the present value
         of Rental Obligations and other Indebtedness not to exceed $25,000,000
         in the aggregate.

                                       19
<PAGE>
                  6C(3). LOANS, ADVANCES AND INVESTMENTS. The Company will not
and will not permit any Subsidiary to make or permit to remain outstanding any
loan or advance to, or extend credit other than credit extended in the normal
course of business to any Person who is not an Affiliate of the Company to, or
own, purchase or acquire any stock, obligations or securities of, or any other
interest in, or make any capital contribution to, any Person, or commit to do
any of the foregoing, (all of the foregoing collectively being "INVESTMENTS"),
except

                  (i) investments in, and loans or advances to, any Wholly Owned
         Subsidiary;

                  (ii) stock, obligations or other securities of, or capital
         contributions to, a Wholly Owned Subsidiary or a corporation which
         immediately after the purchase or acquisition of such stock,
         obligations or other securities will be a Wholly Owned Subsidiary;

                  (iii) obligations backed by the full faith and credit of the
         United States Government (whether issued by the United States
         Government or an agency thereof), and obligations guaranteed by the
         United States Government, in each case which mature within one year
         from the date acquired;

                  (iv) demand and time deposits with, or certificates of deposit
         issued by, any commercial bank or trust company (A) organized under the
         laws of the United States or any of its states or having branch offices
         therein, (B) having equity capital in excess of $250,000,000 and (C)
         which issues either (1) senior debt securities rated A or better by
         S&P, or by Moody's or (2) commercial paper rated A-1 by S&P or Prime-1
         by Moody's, in each case payable in the United States in United States
         dollars, in each case which mature within one year from the date
         acquired;

                  (v) readily marketable commercial paper rated as A-1 or better
         by S&P or Prime-1 or better by Moody's (or, in either case, an
         equivalent rating from another nationally recognized credit rating
         agency) and maturing not more than 270 days from the date acquired;

                  (vi) bonds, debentures, notes or similar debt instruments
         issued by a state or municipality given a "AA" rating or better by S&P
         or an equivalent rating by another nationally recognized credit rating
         agency and maturing not more than one year from the date acquired;

                  (vii) negotiable instruments endorsed for collection in the
         ordinary course of business; and

                  (viii) the loans, investments and advances existing as of the
         date hereof and listed on Schedule 6C(3) hereto.

                                       20
<PAGE>
                  Notwithstanding the foregoing, no Subsidiary shall acquire any
         stock, obligations or securities of, the Company, except as a result of
         participant directed investments in the Subsidiaries nonqualified
         capital accumulation plans.

                  6C(4). SALE OF STOCK AND INDEBTEDNESS OF SUBSIDIARIES. The
Company will not and will not permit any Subsidiary to sell or otherwise dispose
of, or part with control of, any shares of stock or Indebtedness of any
Subsidiary, except (i) to the Company or a Wholly Owned Subsidiary or (ii) that
all shares of stock and Indebtedness of any Subsidiary at the time owned by or
owed to the Company and all Subsidiaries may be sold as an entirety for a cash
consideration which represents the fair value (as determined in good faith by
the Board of Directors of the Company) at the time of sale of the shares of
stock and Indebtedness so sold; provided that (A) such sale or other disposition
is treated as a Transfer of assets of such Subsidiary and is permitted by
paragraph 6C(6) and (B) at the time of such sale, such Subsidiary shall not own,
directly or indirectly, any shares of stock or Indebtedness of any other
Subsidiary (unless all of the shares of stock and Indebtedness of such other
Subsidiary owned, directly or indirectly, by the Company and all Subsidiaries
are simultaneously being sold as permitted by this paragraph 6C(4)).

                  6C(5). MERGER AND CONSOLIDATION. The Company will not and will
not permit any Subsidiary to merge or consolidate with or into any other Person,
except that:

                  (i) any Subsidiary may merge or consolidate with or into the
         Company provided that the Company is the continuing or surviving
         corporation;

                  (ii) any Subsidiary may merge or consolidate with or into a
         Wholly Owned Subsidiary provided that such Wholly Owned Subsidiary is
         the continuing or surviving corporation;

                  (iii) the Company may consolidate or merge with any other
         corporation if (A) the Company is continuing or surviving corporation
         and is a solvent corporation, with substantially all of its assets
         located and substantially all of its operations conducted within the
         United States of America, (B) no Default or Event of Default exists
         before or after such merger or consolidation, (C) the Tangible Net
         Worth of the surviving corporation is at least as great as the Tangible
         Net Worth of the Company immediately prior to such merger or
         consolidation and (D) the core managers of the Company prior to the
         merger or consolidation shall be the core managers of the continuing or
         surviving entity; and

                  (iv) any Subsidiary may merge or consolidate with any other
         corporation, provided that, immediately after giving effect to such
         merger or consolidation (a) a Wholly Owned Subsidiary shall be the
         continuing or surviving corporation, (b) no Default or Event of Default
         exists before or after such merger or consolidation and (c) the
         Tangible Net Worth of the Company following the merger or consolidation
         is at

                                       21
<PAGE>

         least as great as the Tangible Net Worth of the Company immediately
         prior to such merger or consolidation.

                  6C(6). TRANSFER OF ASSETS. The Company will not and will not
permit any Subsidiary to transfer, or agree or otherwise commit to Transfer, any
of its assets except that

                  (i) any Subsidiary may Transfer assets to the Company or a
         Wholly Owned Subsidiary;

                  (ii) the Company or any Subsidiary may sell inventory in the
         ordinary course of business; and

                  (iii) the Company or any Subsidiary may otherwise Transfer
         assets, provided that after giving effect thereto (A) the aggregate
         value of any assets Transferred in any period of 12 consecutive months
         does not exceed 5% of Tangible Assets as of the end of the fiscal
         quarter immediately preceding such Transfer; provided, however that the
         aggregate amount of sales proceeds that are reinvested through the
         purchase of similar assets within 90 days of the date of sale which are
         located within the United States and which are not subject to Liens for
         borrowed money (before or after acquisition) will be deducted in
         determining this 5% limit and (B) the aggregate value of assets
         Transferred (including the proceeds of any assets sold which have not
         been reinvested as provided in clause (A)) from date hereof shall not
         exceed 25% of the Consolidated Tangible Assets determined at any time
         by aggregating the dollar value of all sales as of such time as a
         percentage of Tangible Assets as of the end of the fiscal quarter ended
         immediately prior to such time.

                  6C(7). SALE AND LEASE-BACK. The Company will not and will not
permit any Subsidiary to enter into any arrangement with any lender or investor
or to which such lender or investor is a party providing for the leasing by the
Company or any Subsidiary of real or personal property which has been or is to
be Transferred by the Company or any Subsidiary to such lender or investor or to
any Person to whom funds have been or are to be advanced by such lender or
investor on the security of such property or rental obligations of the Company
or any Subsidiary except for the sale and concurrent lease (pursuant to an
Operating Lease) of any tractor acquired by the Company or any Subsidiary after
the date hereof which sale and lease transaction is consummated within 90 days
of such acquisition.

                  6C(8). SALE OR DISCOUNT OF RECEIVABLES. The Company will not
and will not permit any Subsidiary to sell with recourse, or discount or
otherwise sell for less than the face value thereof, any of its notes or
accounts receivable.

                  6C(9). RELATED PARTY TRANSACTIONS. The Company will not and
will not permit any Subsidiary to directly or indirectly, purchase, acquire or
lease any property from, or sell, transfer or lease any property to, or
otherwise deal with, in the ordinary course of business or

                                       22
<PAGE>
otherwise any Related Party except in the ordinary course of business and upon
terms that are no less favorable to the Company or such Subsidiary, as the case
may be, than those that could be obtained in an arm's-length transaction with an
unrelated third party; provided that the foregoing shall not apply to any
transaction between (i) the Company and any Wholly Owned Subsidiary or between
Wholly Owned Subsidiaries and (ii) sales to, or purchases from, any such Related
Party of shares of common stock for cash consideration equal to the fair market
value thereof (except pursuant to employee stock option, stock appreciation and
similar stock-based incentive plans applicable to employees of the Company that
have been approved by a majority of the Company's outside directors).

                  6D. ISSUANCE OF STOCK BY SUBSIDIARIES. The Company will not
permit any Subsidiary (either directly, or indirectly by the issuance of rights
or options for, or securities convertible into, such shares) to issue, sell or
dispose of any shares of its stock of any class except (i) for directors'
qualifying shares or other shares issued to comply with local ownership legal
requirements (but not in excess of the minimum number of shares necessary to
satisfy such requirement), and (ii) to the Company or a Wholly Owned Subsidiary.

                  6E. SUBSIDIARY RESTRICTIONS. The Company will not and will not
permit any Subsidiary to enter into, or be otherwise subject to, any contract,
agreement or other binding obligation that directly or indirectly limits the
amount of, or otherwise restricts (i) the payment to the Company of dividends or
other redemptions or distributions with respect to its capital stock by any
Subsidiary, (ii) the repayment to the Company by any Subsidiary of intercompany
loans or advances or (iii) other intercompany transfers to the Company of
property or other assets by Subsidiaries.

                  6F. CHANGE OF BUSINESS. The Company will not change, and will
not permit any Subsidiary to change, in any material respect the nature of its
business or operations from the business conducted by the Company and its
Subsidiaries on the date hereof and described in the Company's Registration
Statement on Form S-10, as amended, as filed with the SEC on September 6, 2002
and will not engage, and will not permit any Subsidiary to engage directly or
indirectly in any material business activity, or purchase or otherwise acquire
any material property, in either case not directly related to the conduct of its
business or operations as presently carried on.

                  6G. BORROWING BASE. The Company will not permit the Borrowing
Base to be less than $30,000,000.

                  6H. ACQUISITIONS. The Company will not, and will not permit
any Subsidiary to, make or suffer to exist any expenditures, or commitments
therefor, for the acquisition of any Person, if the primary line of business of
such Person is outside the Company's core industry. For any acquisition, which
shall mean the purchase by the Company or any Subsidiary of all of the capital
stock of a Person, for which such Person has recorded negative EBITDAR for the
most recently completed four fiscal quarters prior to the acquisition, the
Company shall include the acquired Person's EBITDAR on a pro forma basis as if
the acquisition had occurred at the beginning of the covenant compliance period
solely for purposes of determining compliance with paragraphs 6A(1) and 6A(2).

                                       23
<PAGE>
                  7.   EVENTS OF DEFAULT.

                  7A. ACCELERATION. If any of the following events shall occur
and be continuing for any reason whatsoever (and whether such occurrence shall
be voluntary or involuntary or come about or be effected by operation of law or
otherwise):

                  (i) the Company defaults in the payment of any principal of,
         or Yield-Maintenance Amount payable with respect to, any Note when the
         same shall become due, either by the terms thereof or otherwise as
         herein provided; or

                  (ii) the Company defaults in the payment of any interest on
         any Note for more than three days after the date due; or

                  (iii) the Company or any Subsidiary defaults (whether as
         primary obligor or as guarantor or other surety) in any payment of
         principal of or interest on any other obligation for money borrowed (or
         any Capitalized Lease Obligation, any obligation under a conditional
         sale or other title retention agreement, any obligation issued or
         assumed as full or partial payment for property whether or not secured
         by a purchase money mortgage or any obligation under notes payable or
         drafts accepted representing extensions of credit) beyond any period of
         grace provided with respect thereto, or the Company or any Subsidiary
         fails to perform or observe any other agreement, term or condition
         contained in any agreement under which any such obligation is created
         (or if any other event thereunder or under any such agreement shall
         occur and be continuing) and the effect of such failure or other event
         is to cause, or to permit the holder or holders of such obligation (or
         a trustee on behalf of such holder or holders) to cause, such
         obligation to become due (or to be repurchased by the Company or any
         Subsidiary) prior to any stated maturity; provided that the aggregate
         amount of all obligations as to which such a payment default shall
         occur and be continuing or such a failure or other event causing or
         permitting acceleration (or resale to the Company or any Subsidiary)
         shall occur and be continuing exceeds $5,000,000 or the equivalent
         amount in other currencies; or

                  (iv) any representation or warranty made by the Company herein
         or by the Company or any of its officers in any writing furnished in
         connection with or pursuant to this Agreement shall be false in any
         material respect on the date as of which made; or

                                       24
<PAGE>
                  (v) the Company fails to perform or observe any term, covenant
         or agreement contained in paragraph 6, paragraph 5N or the last
         sentence of paragraph 5A; or

                  (vi) the Company fails to perform or observe any other term,
         covenant, agreement or condition contained herein and such failure
         shall not be remedied within 30 days after any Responsible Officer
         obtains actual knowledge thereof; or

                  (vii) the Company or any Subsidiary makes an assignment for
         the benefit of creditors or is generally not paying its debts as such
         debts become due; or

                  (viii) any decree or order for relief in respect of the
         Company or any Subsidiary is entered under any bankruptcy,
         reorganization, compromise, arrangement, insolvency, readjustment of
         debt, dissolution or liquidation or similar law, whether now or
         hereafter in effect (the "BANKRUPTCY LAW"), of any jurisdiction; or

                  (ix) the Company or any Subsidiary petitions or applies to any
         tribunal for, or consents to, the appointment of, or taking possession
         by, a trustee, receiver, custodian, liquidator or similar official of
         the Company or any Subsidiary, or of any substantial part of the assets
         of the Company or any Subsidiary, or commences a voluntary case under
         the Bankruptcy Law of the United States or any proceedings (other than
         proceedings for the voluntary liquidation and dissolution of a
         Subsidiary) relating to the Company or any Subsidiary under the
         Bankruptcy Law of any other jurisdiction; or

                  (x) any such petition or application is filed, or any such
         proceedings are commenced, against the Company or any Subsidiary and
         the Company or such Subsidiary by any act indicates its approval
         thereof, consent thereto or acquiescence therein, or an order, judgment
         or decree is entered appointing any such trustee, receiver, custodian,
         liquidator or similar official, or approving the petition in any such
         proceedings, and such order, judgment or decree remains unstayed and in
         effect for more than 30 days; or

                  (xi) any order, judgment or decree is entered in any
         proceedings against the Company decreeing the dissolution of the
         Company and such order, judgment or decree remains unstayed and in
         effect for more than 60 days; or

                  (xii) any order, judgment or decree is entered in any
         proceedings against the Company or any Subsidiary decreeing a split-up
         of the Company or such Subsidiary which requires the divestiture of
         assets representing a substantial part, or the divestiture of the stock
         of a Subsidiary whose assets represent a substantial part, of the
         consolidated assets of the Company and its Subsidiaries (determined in
         accordance with GAAP) or which requires the divestiture of assets, or
         stock of a Subsidiary, which shall

                                       25
<PAGE>
         have contributed a substantial part of the consolidated net income of
         the Company and its Subsidiaries (determined in accordance with GAAP)
         for any of the three fiscal years then most recently ended, and such
         order, judgment or decree remains unstayed and in effect for more than
         60 days; or

                  (xiii) one or more judgments or orders in an aggregate amount
         in excess of $2,500,000 is rendered against the Company or any
         Subsidiary and either (i) enforcement proceedings have been commenced
         by any creditor upon any such judgment or order or (ii) within 30 days
         after entry thereof, a solvent insurance carrier or carriers have not
         confirmed in writing that each such judgment is fully insured or such
         judgment is not discharged or execution thereof stayed pending appeal,
         or within 30 days after the expiration of any such stay, such judgment
         is not discharged; or

                  (xiv) (A) any Plan shall fail to satisfy the minimum funding
         standards of ERISA or the Code for any plan year or part thereof or a
         waiver of such standards or extension of any amortization period is
         sought or granted under Section 412 of the Code, (B) a notice of intent
         to terminate any Plan shall have been or is reasonably expected to be
         filed with the PBGC or the PBGC shall have instituted proceedings under
         ERISA Section 4042 to terminate or appoint a trustee to administer any
         Plan or the PBGC shall have notified the Company or any ERISA Affiliate
         that a Plan may become a subject of such proceedings, (C) the aggregate
         "amount of unfunded benefit liabilities" (within the meaning of Section
         4001(a)(18) of ERISA) under all Plans, determined in accordance with
         Title IV of ERISA, shall exceed $1,000,000, (D) the Company or any
         ERISA Affiliate shall have incurred or is reasonably expected to incur
         any liability pursuant to Title I or IV of ERISA or the penalty or
         excise tax provisions of the Code relating to employee benefit plans,
         (E) the Company or any ERISA Affiliate withdraws from any Multiemployer
         Plan or (F) the Company or any Subsidiary establishes or amends any
         employee welfare benefit plan that provides post-employment welfare
         benefits in a manner that would materially increase the liability of
         the Company or any Subsidiary thereunder; or

                  (xv) any provision of the Subsidiary Guaranty Agreement after
         delivery thereof under paragraph 3A(vii) shall for any reason cease to
         be valid and binding on a Subsidiary Guarantor, or a Subsidiary
         Guarantor shall so state in writing; or

                  (xvi) it shall be determined, at any time and for any reason,
         that the Subordinated Debt is not subordinate to the Notes;

then (A) if such event is an Event of Default specified in clause (i) or (ii) of
this paragraph 7A, any holder of any Note may at its option, by notice in
writing to the Company, declare all of the Notes held by such holder to be, and
all of the Notes held by such holder shall thereupon be and become, immediately
due and payable at par together with interest accrued thereon, without
presentment, demand, protest or notice of any other kind (including, without

                                       26
<PAGE>
limitation, notice of intent to accelerate), all of which are hereby waived by
the Company, (b) if such event is an Event of Default specified in clause
(viii), (ix) or (x) of this paragraph 7A with respect to the Company, all of the
Notes at the time outstanding shall automatically become immediately due and
payable at par together with interest accrued thereon and together with the
Yield-Maintenance Amount, if any, with respect to each Note, without
presentment, demand, protest or notice of any kind (including, without
limitation, notice of intent to accelerate and notice of acceleration of
maturity), all of which are hereby waived by the Company and (c) if such event
is any Event of Default other than as specified in preceding clause (b), the
Required Holder(s) may at its or their option by notice in writing to the
Company, declare all of the Notes to be, and all of the Notes shall thereupon be
and become, immediately due and payable together with interest accrued thereon
and together with the Yield-Maintenance Amount, if any, with respect to each
Note, without presentment, demand, protest or notice of any other kind
(including, without limitation, notice of intent to accelerate), all of which
are hereby waived by the Company.

                  The Company acknowledges, and the parties hereto agree, that
each holder of a Note has the right to maintain its investment in the Notes free
from repayment by the Company (except as herein specifically provided for) and
that the provision for payment of the Yield-Maintenance Amount by the Company in
the event that the Notes are prepaid or are accelerated as a result of an Event
of Default, is intended to provide compensation for the deprivation of such
right under such circumstances.

                  7B. RESCISSION OF ACCELERATION. At any time after any or all
of the Notes shall have been declared immediately due and payable pursuant to
paragraph 7A, the Required Holder(s) may, by notice in writing to the Company,
rescind and annul such declaration and its consequences if (i) the Company shall
have paid all overdue interest on the Notes, the principal of and
Yield-Maintenance Amount, if any, payable with respect to any Notes which have
become due otherwise than by reason of such declaration, and interest on such
overdue interest and overdue principal and Yield-Maintenance Amount at the rate
specified in the Notes, (ii) the Company shall not have paid any amounts which
have become due solely by reason of such declaration, (iii) all Events of
Default and Defaults, other than non-payment of amounts which have become due
solely by reason of such declaration, shall have been cured or waived pursuant
to paragraph 11C and (iv) no judgment or decree shall have been entered for the
payment of any amounts due pursuant to the Notes or this Agreement. No such
rescission or annulment shall extend to or affect any subsequent Event of
Default or Default or impair any right arising therefrom.

                  7C. NOTICE OF ACCELERATION OR RESCISSION. Whenever any Note
shall be declared immediately due and payable pursuant to paragraph 7A or any
such declaration shall be rescinded and annulled pursuant to paragraph 7B, the
Company shall forthwith give written notice thereof to the holder of each Note
at the time outstanding.

                                       27
<PAGE>
                  7D. OTHER REMEDIES. If any Event of Default or Default shall
occur and be continuing, the holder of any Note may proceed to protect and
enforce its rights under this Agreement and such Note by exercising such
remedies as are available to such holder in respect thereof under applicable
law, either by suit in equity or by action at law, or both, whether for specific
performance of any covenant or other agreement contained in this Agreement or in
aid of the exercise of any power granted in this Agreement. No remedy conferred
in this Agreement upon the holder of any Note is intended to be exclusive of any
other remedy, and each and every such remedy shall be cumulative and shall be in
addition to every other remedy conferred herein or now or hereafter existing at
law or in equity or by statute or otherwise.

                  8. REPRESENTATIONS, COVENANTS AND WARRANTIES. The Company
represents, covenants and warrants as follows (all references to "SUBSIDIARY"
and "SUBSIDIARIES" in this paragraph 8 shall be deemed omitted if the Company
has no Subsidiaries at the time the representations herein are made or
repeated):

                  8A. ORGANIZATION. The Company is a corporation duly organized
and validly existing in good standing under the laws of the State of Delaware,
each Subsidiary is duly organized and validly existing in good standing under
the laws of the jurisdiction in which it is incorporated, and the Company has
and each Subsidiary has the corporate power to own its respective property and
to carry on its respective business as now being conducted. The execution,
delivery and performance by the Company of this Agreement and the Notes are
within the Company's corporate powers and have been duly authorized by all
necessary corporate action.

                  8B. FINANCIAL STATEMENTS. The Company has furnished each
Purchaser of the Series A Notes and any Accepted Notes with the following
financial statements, identified by a principal financial officer of the
Company: (i) a consolidated balance sheet of the Company and its Subsidiaries as
at December 31, in each of the two fiscal years of the Company most recently
completed prior to the date as of which this representation is made or repeated
to such Purchaser (other than fiscal years completed within 90 days prior to
such date for which audited financial statements have not been released) and
consolidated statements of income, cash flows and a consolidated statement of
shareholders' equity of the Company and its Subsidiaries for each such year, all
reported on by Arthur Andersen & Co. LLP (for periods prior to January 1, 2002)
and KPMG LLP or another nationally-recognized public accounting firm (for
periods on and after January 1, 2002) and (ii) a consolidated balance sheet of
the Company and its Subsidiaries as at the end of the quarterly period (if any)
most recently completed prior to such date and after the end of such fiscal year
(other than quarterly periods completed within 45 days prior to such date for
which financial statements have not been released) and the comparable quarterly
period in the preceding fiscal year and consolidated statements of income, cash
flows and a consolidated statement of shareholders' equity for the periods from
the beginning of the fiscal years in which such quarterly periods are included
to the end of such quarterly periods, prepared by the Company. Such financial
statements

                                       28
<PAGE>
(including any related schedules and/or notes) are true and correct in all
material respects (subject, as to interim statements, to changes resulting from
audits and year-end adjustments), have been prepared in accordance with GAAP
consistently followed throughout the periods involved and show all liabilities,
direct and contingent, of the Company and its Subsidiaries required to be shown
in accordance with such principles. The balance sheets fairly present the
condition of the Company and its Subsidiaries as at the dates thereof, and the
statements of income, cash flows and stockholders' equity fairly present the
results of the operations of the Company and its Subsidiaries and their cash
flows for the periods indicated. There has been no material adverse change in
the business, property or assets, condition (financial or otherwise) operations
or prospects of the Company and its Subsidiaries taken as a whole since the end
of the most recent fiscal year for which such audited financial statements have
been furnished.

                  8C. ACTIONS PENDING. There is no action, suit, investigation
or proceeding pending or, to the knowledge of the Company, threatened against
the Company or any of its Subsidiaries, or any properties or rights of the
Company or any of its Subsidiaries, by or before any court, arbitrator or
administrative or governmental body which might result in any material adverse
change in the business, property or assets, condition (financial or otherwise)
or operations of the Company and its Subsidiaries taken as a whole. There is no
action, suit, investigation or proceeding pending or, to the knowledge of the
Company, threatened against the Company or any of its Subsidiaries which
purports to affect the validity or enforceability of this Agreement or any Note.

                  8D. OUTSTANDING INDEBTEDNESS. Neither the Company nor any of
its Subsidiaries has outstanding any Indebtedness except as permitted by
paragraph 6C(2). There exists no default under the provisions of any instrument
evidencing such Indebtedness or of any agreement relating thereto.

                  8E. TITLE TO PROPERTIES. The Company has and each of its
Subsidiaries has good and indefeasible title to its respective real properties
(other than properties which it leases) and good title to all of its other
respective properties and assets, including the properties and assets reflected
in the most recent audited balance sheet referred to in paragraph 8B (other than
properties and assets disposed of in the ordinary course of business), subject
to no Lien of any kind except Liens permitted by paragraph 6C(1). All leases
necessary in any material respect for the conduct of the respective businesses
of the Company and its Subsidiaries are valid and subsisting and are in full
force and effect.

                  8F. TAXES. The Company has and each of its Subsidiaries has
filed all federal, state and other income tax returns which, to the best
knowledge of the officers of the Company and its Subsidiaries, are required to
be filed, and each has paid all taxes as shown on such returns and on all
assessments received by it to the extent that such taxes have become due, except
such taxes as are being contested in good faith by appropriate proceedings for
which adequate reserves have been established in accordance with GAAP.

                                       29
<PAGE>
                  8G. CONFLICTING AGREEMENTS AND OTHER MATTERS. Neither the
Company nor any of its Subsidiaries is a party to any contract or agreement or
subject to any charter or other corporate restriction which materially and
adversely affects its business, property or assets, condition (financial or
otherwise) or operations. Neither the execution nor delivery of this Agreement
or the Notes, nor the offering, issuance and sale of the Notes, nor fulfillment
of nor compliance with the terms and provisions hereof and of the Notes will
conflict with, or result in a breach of the terms, conditions or provisions of,
or constitute a default under, or result in any violation of, or result in the
creation of any Lien upon any of the properties or assets of the Company or any
of its Subsidiaries pursuant to, the charter or by-laws of the Company or any of
its Subsidiaries, any award of any arbitrator or any agreement (including any
agreement with stockholders), instrument, order, judgment, decree, statute, law,
rule or regulation to which the Company or any of its Subsidiaries is subject.
Neither the Company nor any of its Subsidiaries is a party to, or otherwise
subject to any provision contained in, any instrument evidencing Indebtedness of
the Company or such Subsidiary, any agreement relating thereto or any other
contract or agreement (including its charter) which limits the amount of, or
otherwise imposes restrictions on the incurring of, Indebtedness of the Company
of the type to be evidenced by the Notes except as set forth in the agreements
listed in Schedule 8G attached hereto.

                  8H. OFFERING OF NOTES. Neither the Company nor any agent
acting on its behalf has, directly or indirectly, offered the Notes or any
similar security of the Company for sale to, or solicited any offers to buy the
Notes or any similar security of the Company from, or otherwise approached or
negotiated with respect thereto with, any Person other than institutional
investors, and neither the Company nor any agent acting on its behalf has taken
or will take any action which would subject the issuance or sale of the Notes to
the provisions of Section 5 of the Securities Act or to the provisions of any
securities or Blue Sky law of any applicable jurisdiction.

                  8I. USE OF PROCEEDS. The proceeds of the Series A Notes will
be used to repay amounts owing to Yellow Corporation. None of the proceeds of
the sale of any Notes will be used, directly or indirectly, for the purpose,
whether immediate, incidental or ultimate, of purchasing or carrying any "margin
stock" as defined in Regulation U (12 CFR Part 221) of the Board of Governors of
the Federal Reserve System ("MARGIN STOCK") or for the purpose of maintaining,
reducing or retiring any Indebtedness which was originally incurred to purchase
or carry any stock that is then currently a margin stock or for any other
purpose which might constitute the purchase of such Notes a "purpose credit"
within the meaning of such Regulation U, unless the Company shall have delivered
to the Purchaser which is purchasing such Notes, on the Closing Day for such
Notes, an opinion of counsel satisfactory to such Purchaser stating that the
purchase of such Notes does not constitute a violation of such Regulation U.
Neither the Company nor any agent acting on its behalf has taken or will take
any action which might cause this Agreement or the Notes to violate Regulation
T, Regulation U or any other regulation of the Board of Governors of the Federal
Reserve System or to violate the Exchange Act, in each case as in effect now or
as the same may hereafter be in effect.

                                       30
<PAGE>
                  8J. ERISA. No accumulated funding deficiency (as defined in
section 302 of ERISA and section 412 of the Code), whether or not waived, exists
with respect to any Plan (other than a Multiemployer Plan). No liability to the
PBGC has been or is expected by the Company or any ERISA Affiliate to be
incurred with respect to any Plan (other than a Multiemployer Plan) by the
Company, any Subsidiary or any ERISA Affiliate which is or would be materially
adverse to the business, property or assets, condition (financial or otherwise)
or operations of the Company and its Subsidiaries taken as a whole. Neither the
Company, any Subsidiary nor any ERISA Affiliate has incurred or presently
expects to incur any withdrawal liability under Title IV of ERISA with respect
to any Multiemployer Plan which is or would be materially adverse to the
business, property or assets, condition (financial or otherwise) or operations
of the Company and its Subsidiaries taken as a whole. The execution and delivery
of this Agreement and the issuance and sale of the Notes will be exempt from or
will not involve any transaction which is subject to the prohibitions of section
406 of ERISA and will not involve any transaction in connection with which a
penalty could be imposed under section 502(i) of ERISA or a tax could be imposed
pursuant to section 4975 of the Code. The representation by the Company in the
next preceding sentence is made in reliance upon and subject to the accuracy of
the representation of each Purchaser in paragraph 9B as to the source of funds
to be used by it to purchase any Notes.

                  8K. GOVERNMENTAL CONSENT. Neither the nature of the Company or
of any Subsidiary, nor any of their respective businesses or properties, nor any
relationship between the Company or any Subsidiary and any other Person, nor any
circumstance in connection with the offering, issuance, sale or delivery of the
Notes is such as to require any authorization, consent, approval, exemption or
any action by or notice to or filing with any court or administrative or
governmental or regulatory body (other than routine filings after the Closing
Day for any Notes with the SEC and/or state Blue Sky authorities) in connection
with the execution and delivery of this Agreement, the offering, issuance, sale
or delivery of the Notes or fulfillment of or compliance with the terms and
provisions hereof or of the Notes.

                  8L. ENVIRONMENTAL COMPLIANCE. The Company and its Subsidiaries
and all of their respective properties and facilities have complied at all times
and in all respects with all federal, state, local and regional statutes, laws,
ordinances and judicial or administrative orders, judgments, rulings and
regulations relating to protection of the environment except, in any such case,
where failure to comply could not result in a material adverse effect on the
business, condition (financial or otherwise) or operations of the Company and
its Subsidiaries taken as a whole.

                  8M. UTILITY COMPANY STATUS. Neither the Company nor any
Subsidiary is a (i) "holding company," a "subsidiary company" of a "holding
company" or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company," as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended or (ii) public utility within the meaning of the
Federal Power Act, as amended.

                                       31
<PAGE>
                  8N. INVESTMENT COMPANY STATUS. Neither the Company nor any
Subsidiary is an "investment company" or a company "controlled" by an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended, or an "investment adviser" within the meaning of the Investment
Advisers Act of 1940, as amended.

                  8O. RULE 144A. The Notes are not of the same class as
securities of the Company, if any, listed on a national securities exchange,
registered under Section 6 of the Exchange Act or quoted in a U.S. automated
inter-dealer quotation system.

                  8P. DISCLOSURE. Neither this Agreement nor any other document,
certificate or statement furnished to any Purchaser by or on behalf of the
Company in connection herewith contains any untrue statement of a material fact
or omits to state a material fact necessary in order to make the statements
contained herein and therein not misleading. There is no fact peculiar to the
Company or any of its Subsidiaries which materially adversely affects or in the
future may (so far as the Company can now foresee) materially adversely affect
the business, property or assets, condition (financial or otherwise) or
operations of the Company or any of its Subsidiaries and which has not been set
forth in this Agreement.

                  8Q. DELIVERY OF CREDIT AGREEMENT. The Company has delivered to
each Purchaser prior to the date hereof a true, correct and complete copy of the
Credit Agreement, including all amendments and waivers of any provision thereof.

                  8R. HOSTILE TENDER OFFERS. None of the proceeds of the sale of
any Notes will be used to finance a Hostile Tender Offer.

                  8S. INTERSTATE COMMERCE ACT. Neither the Company nor any
Subsidiary is a "rail carrier" or a person controlled by or affiliated with a
"rail carrier" within the meaning of Title 49, U.S.C.

                  9.  REPRESENTATIONS OF THE PURCHASERS.

         Each Purchaser represents as follows:

                  9A. NATURE OF PURCHASE. Such Purchaser is not acquiring the
Notes purchased by it hereunder with a view to or for sale in connection with
any distribution thereof within the meaning of the Securities Act, provided that
the disposition of such Purchaser's property shall at all times be and remain
within its control.

                  9B. SOURCE OF FUNDS. At least one of the following statements
is an accurate representation as to each source of funds (the "SOURCE") to be
used by such Purchaser to pay the purchase price of the Notes to be purchased by
such Purchaser hereunder:

                                       32
<PAGE>
                  (i) the Source is an "insurance company general account" (as
         the term is defined in the United States Department of Labor's
         Prohibited Transaction Exemption ("PTE") 95-60) in respect of which the
         reserves and liabilities (as defined by the annual statement for life
         insurance companies approved by the National Association of Insurance
         Commissioners (the "NAIC ANNUAL STATEMENT")) for the general account
         contract(s) held by or on behalf of any employee benefit plan together
         with the amount of the reserves and liabilities for the general account
         contract(s) held by or on behalf of any other employee benefit plans
         maintained by the same employer (or affiliate thereof as defined in PTE
         95-60) or by the same employee organization in the general account do
         not exceed 10% of the total reserves and liabilities of the general
         account (exclusive of separate account liabilities) plus surplus as set
         forth in the NAIC Annual Statement filed with such Purchaser's state of
         domicile; or

                  (ii) the Source is a separate account that is maintained
         solely in connection with such Purchaser's fixed contractual
         obligations under which the amounts payable, or credited, to any
         employee benefit plan (or its related trust) that has any interest in
         such separate account (or to any participant or beneficiary of such
         plan (including any annuitant)) are not affected in any manner by the
         investment performance of the separate account; or

                  (iii) the Source is either (a) an insurance company pooled
         separate account, within the meaning of PTE 90-1 or (b) a bank
         collective investment fund, within the meaning of the PTE 91-38 and,
         except as disclosed by such Purchaser to the Company in writing
         pursuant to this clause (iii), no employee benefit plan or group of
         plans maintained by the same employer or employee organization
         beneficially owns more than 10% of all assets allocated to such pooled
         separate account or collective investment fund; or

                  (iv) the Source constitutes assets of an "investment fund"
         (within the meaning of Part V of PTE 84-14 (the "QPAM EXEMPTION"))
         managed by a "qualified professional asset manager" or "QPAM" (within
         the meaning of Part V of the QPAM Exemption), no employee benefit
         plan's assets that are included in such investment fund, when combined
         with the assets of all other employee benefit plans established or
         maintained by the same employer or by an affiliate (within the meaning
         of Section V(c)(1) of the QPAM Exemption) of such employer or by the
         same employee organization and managed by such QPAM, exceed 20% of the
         total client assets managed by such QPAM, the conditions of Part I(c)
         and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a
         person controlling or controlled by the QPAM (applying the definition
         of "control" in Section V(e) of the QPAM Exemption) owns a 5% or more
         interest in the Company and (a) the identity of such QPAM and (b) the
         names of all employee benefit plans whose assets are included in such
         investment fund have been disclosed to the Company in writing pursuant
         to this clause (iv); or

                                       33
<PAGE>
                  (v) the Source constitutes assets of a "plan(s)" (within the
         meaning of Section IV of PTE 96-23 (the "INHAM EXEMPTION")) managed by
         an "in-house asset manager" or "INHAM" (within the meaning of Part IV
         of the INHAM exemption), the conditions of Part I(a), (g) and (h) of
         the INHAM Exemption are satisfied, neither the INHAM nor a person
         controlling or controlled by the INHAM (applying the definition of
         "control" in Section IV(h) of the INHAM Exemption) owns a 5% or more
         interest in the Company and (a) the identity of such INHAM and (b) the
         name(s) of the employee benefit plan(s) whose assets constitute the
         Source have been disclosed to the Company in writing pursuant to this
         clause (v); or

                  (vi) the Source is a governmental plan; or

                  (vii) the Source is one or more employee benefit plans, or a
         separate account or trust fund comprised of one or more employee
         benefit plans, each of which has been identified to the Company in
         writing pursuant to this clause (vii); or

                  (viii) the Source does not include assets of any employee
         benefit plan, other than a plan exempt from the coverage of ERISA.

As used in this paragraph 9B, the terms "employee benefit plan," "governmental
plan," and "separate account" shall have the respective meanings assigned to
such terms in Section 3 of ERISA.

                  10. DEFINITIONS; ACCOUNTING MATTERS. For the purpose of this
Agreement, the terms defined in paragraphs 10A and 10B (or within the text of
any other paragraph) shall have the respective meanings specified therein and
all accounting matters shall be subject to determination as provided in
paragraph 10C.

                  10A. YIELD-MAINTENANCE TERMS.

                  "CALLED PRINCIPAL" shall mean, with respect to any Note, the
principal of such Note that is to be prepaid pursuant to paragraph 4B or is
declared to be immediately due and payable pursuant to paragraph 7A, as the
context requires.

                  "DESIGNATED SPREAD" shall mean 1.00% in the case of each
Series A Note and 0% in the case of each Note of any other Series unless the
Confirmation of Acceptance with respect to the Notes of such Series specifies a
different Designated Spread in which case it shall mean, with respect to each
Note of such Series, the Designated Spread so specified.

                  "DISCOUNTED VALUE" shall mean, with respect to the Called
Principal of any Note, the amount obtained by discounting all Remaining
Scheduled Payments with respect to such Called Principal from their respective
scheduled due dates to the Settlement Date with respect to such Called
Principal, in accordance with accepted financial practice and at a

                                       34
<PAGE>
discount factor (as converted to reflect the periodic basis on which interest on
such Note is payable, if payable other than on a semi-annual basis) equal to the
Reinvestment Yield with respect to such Called Principal.

                  "REINVESTMENT YIELD" shall mean, with respect to the Called
Principal of any Note, the Designated Spread over the yield to maturity implied
by (i) the yields reported as of 10:00 a.m. (New York City local time) on the
Business Day next preceding the Settlement Date with respect to such Called
Principal for actively traded U.S. Treasury securities having a maturity equal
to the Remaining Average Life of such Called Principal as of such Settlement
Date on the Treasury Yield Monitor page of Standard & Poor's MMS - Treasury
Market Insight (or, if S & P shall cease to report such yields in MMS - Treasury
Market Insight or shall cease to be Prudential Capital Group's customary source
of information for calculating yield-maintenance amounts on privately placed
notes, then such source as is then Prudential Capital Group's customary source
of such information), or if such yields shall not be reported as of such time or
the yields reported as of such time shall not be ascertainable, (ii) the
Treasury Constant Maturity Series yields reported, for the latest day for which
such yields shall have been so reported as of the Business Day next preceding
the Settlement Date with respect to such Called Principal, in Federal Reserve
Statistical Release H.15(519) (or any comparable successor publication) for
actively traded U.S. Treasury securities having a constant maturity equal to the
Remaining Average Life of such Called Principal as of such Settlement Date. Such
implied yield shall be determined, if necessary, by (a) converting U.S. Treasury
bill quotations to bond equivalent yields in accordance with accepted financial
practice and (b) interpolating linearly between yields reported for various
maturities. The Reinvestment Yield shall be rounded to that number of decimal
places as appears in the coupon of the applicable Note.

                  "REMAINING AVERAGE LIFE" shall mean, with respect to the
Called Principal of any Note, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the
sum of the products obtained by multiplying (a) each Remaining Scheduled Payment
of such Called Principal (but not of interest thereon) by (b) the number of
years (calculated to the nearest one-twelfth year) which will elapse between the
Settlement Date with respect to such Called Principal and the scheduled due date
of such Remaining Scheduled Payment.

                  "REMAINING SCHEDULED PAYMENTS" shall mean, with respect to the
Called Principal of any Note, all payments of such Called Principal and interest
thereon that would be due on or after the Settlement Date with respect to such
Called Principal if no payment of such Called Principal were made prior to its
scheduled due date.

                  "SETTLEMENT DATE" shall mean, with respect to the Called
Principal of any Note, the date on which such Called Principal is to be prepaid
pursuant to paragraph 4B or is declared to be immediately due and payable
pursuant to paragraph 7A, as the context requires.

                                       35
<PAGE>
                  "YIELD-MAINTENANCE AMOUNT" shall mean, with respect to any
Note, an amount equal to the excess, if any, of the Discounted Value of the
Called Principal of such Note over the sum of (i) such Called Principal plus
(ii) interest accrued thereon as of (including interest due on) the Settlement
Date with respect to such Called Principal. The Yield-Maintenance Amount shall
in no event be less than zero.

                  10B.   OTHER TERMS.

                  "ACCEPTANCE" shall have the meaning specified in paragraph 2F.

                  "ACCEPTANCE DAY" shall have the meaning specified in paragraph
2F.

                  "ACCEPTANCE WINDOW" shall have the meaning specified in
paragraph 2F.

                  "ACCEPTED NOTE" shall have the meaning specified in paragraph
2F.

                  "ADDITIONAL COVENANT" shall mean any affirmative or negative
covenant or similar restriction applicable to the Company or any Subsidiary
(regardless of whether such provision is labeled or otherwise characterized as a
covenant) the subject matter of which either (i) is similar to that of any
covenant in paragraph 5 or 6 of this Agreement, or related definitions in
paragraph 10 of this Agreement, but contains one or more percentages, amounts or
formulas that is more restrictive than those set forth herein or more beneficial
to the lenders under the Credit Agreement (and such covenant or similar
restriction shall be deemed an Additional Covenant only to the extent that it is
more restrictive or more beneficial) or (ii) is different from the subject
matter of any covenants in paragraph 5 or 6 of this Agreement, or related
definitions in paragraph 10 of this Agreement.

                  "ADDITIONAL DEFAULT" shall mean any provision contained in the
Credit Agreement to accelerate (with the passage of time or giving of notice or
both) the maturity thereof or otherwise requires any Company or any Subsidiary
to purchase the Indebtedness under the Credit Agreement prior to the stated
maturity thereof and which either (i) is similar to any Default or Event of
Default contained in paragraph 7 of this Agreement, or related definitions in
paragraph 10 of this Agreement, but contains one or more percentages, amounts or
formulas that is more restrictive or has a shorter grace period than those set
forth herein or is more beneficial to the lender under the Credit Agreement (and
such provision shall be deemed an Additional Default only to the extent that it
is more restrictive, has a shorter grace period or is more beneficial) or (ii)
is different from the subject matter of any Default or Event of Default
contained in paragraph 7 of this Agreement, or related definitions in paragraph
10 of this Agreement.

                  "ADJUSTED TOTAL INDEBTEDNESS" shall mean Total Indebtedness
excluding letters of credit other than the aggregate face amount of all letters
of credit issued and outstanding under the Credit Agreement.

                                       36
<PAGE>
                  "AFFILIATE" shall mean any Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, the
Company, except a Subsidiary. A Person shall be deemed to control a corporation
if such Person possesses, directly or indirectly, the power to direct or cause
the direction of the management and policies of such corporation, whether
through the ownership of voting securities, by contract or otherwise.

                  "AUTHORIZED OFFICER" shall mean (i) in the case of the
Company, its chief executive officer, its chief financial officer or any vice
president of the Company designated as an "Authorized Officer" of the Company
for the purpose of this Agreement in an Officer's Certificate executed by the
Company's chief executive officer or chief financial officer and delivered to
Prudential and (ii) in the case of Prudential, any officer of Prudential
designated as its "Authorized Officer" in the Purchaser Schedule or any officer
of Prudential designated as its "Authorized Officer" for the purpose of this
Agreement in a certificate executed by one of its Authorized Officers. Any
action taken under this Agreement on behalf of the Company by any individual who
on or after the date of this Agreement shall have been an Authorized Officer of
the Company and whom Prudential in good faith believes to be an Authorized
Officer of the Company at the time of such action shall be binding on the
Company even though such individual shall have ceased to be an Authorized
Officer of the Company, and any action taken under this Agreement on behalf of
Prudential by any individual who on or after the date of this Agreement shall
have been an Authorized Officer of Prudential and whom the Company in good faith
believes to be an Authorized Officer of Prudential at the time of such action
shall be binding on Prudential even though such individual shall have ceased to
be an Authorized Officer of Prudential.

                  "AVAILABLE FACILITY AMOUNT" shall have the meaning specified
in paragraph 2A.

                  "BANKRUPTCY LAW" shall have the meaning specified in clause
(viii) of paragraph 7A.

                  "BORROWING BASE" shall have the meaning specified in the
Credit Agreement.

                  "BUSINESS DAY" shall mean any day other than (i) a Saturday or
a Sunday, (ii) a day on which commercial banks in New York City are required or
authorized to be closed and (iii) for purposes of paragraph 2C hereof only, a
day on which Prudential is not open for business.

                  "CANCELLATION DATE" shall have the meaning specified in
paragraph 2I(4).

                  "CANCELLATION FEE" shall have the meaning specified in
paragraph 2I(4).

                  "CAPITAL LEASE" shall mean all leases which have been or
should be capitalized on the books of the lessee in accordance with GAAP.

                                       37
<PAGE>
                  "CAPITALIZED LEASE OBLIGATION" shall mean any rental
obligation which, under GAAP, is or will be required to be capitalized on the
books of the Company or any Subsidiary, taken at the amount thereof accounted
for as indebtedness (net of interest expenses) in accordance with such
principles.

                  "CLOSING DAY" shall mean, with respect to the Series A Notes,
the Series A Closing and, with respect to any Accepted Note, the Business Day
specified for the closing of the purchase and sale of such Accepted Note in the
Request for Purchase of such Accepted Note, provided that (i) if the Company and
the Purchaser which is obligated to purchase such Note agree in writing on an
earlier Business Day for such closing, the "CLOSING DAY" for such Accepted Note
shall be such earlier Business Day and (ii) if the closing of the purchase and
sale of such Accepted Note is rescheduled pursuant to paragraph 2H(3), the
Closing Day for such Accepted Note, for all purposes of this Agreement except
references to "original Closing Day" in paragraph 2I(3), shall mean the
Rescheduled Closing Day with respect to such Accepted Note.

                  "CODE" shall mean the Internal Revenue Code of 1986, as
amended.

                  "CONFIRMATION OF ACCEPTANCE" shall have the meaning specified
in paragraph 2F.

                  "CONSOLIDATED" and "CONSOLIDATED" shall mean the consolidation
of the accounts of the Company and its Subsidiaries in accordance with GAAP,
including principles of consolidation, consistent with those applied in the
preparation of the consolidated financial statements referred to in paragraph
8B.

                  "CONTINGENCY RESERVE" shall mean accruals (other than de
minimis accruals) for matters of a contingent nature that are generally
infrequent or unusual and not in the ordinary course of the Company's business
and shall not include reserves for the Company's workers' compensation and
bodily injury and property damage programs.

                  "CREDIT AGREEMENT" shall mean Agented Revolving Credit
Agreement dated as of September 20, 2002 among the Company, the lender parties
thereto and the Bank of Oklahoma, as agent for such lenders, as amended or
otherwise modified from time to time, and any credit facility replacing or
refinancing such Revolving Credit Agreement.

                  "CREDIT AGREEMENT GUARANTY" shall mean the Guarantee by a
Subsidiary Guarantor of the obligations of the Company under the Credit
Agreement.

                  "DEFAULT RATE" shall mean, for any Note at any time upon the
occurrence of an Event of Default and until such Event of Default has been cured
or waived in writing, a rate of interest per annum from time to time equal to
the lesser of (i) the maximum rate permitted by applicable law and (ii) the
greater of (a) 2% over the coupon rate for such Note over the rate of

                                       38
<PAGE>
interest in effect immediately prior to such Event of Default and (b) 2.0% over
the rate of interest publicly announced by The Bank of New York from time to
time in New York City as its Prime Rate.

                  "DELAYED DELIVERY FEE" shall have the meaning specified in
paragraph 2I(3).

                  "EBIT" shall mean, for any period, EBITDAR excluding (i)
provisions for depreciation and amortization and (ii) Rental Expense.

                  "EBITDAR" shall mean, for any period, the sum of Net Income
plus, to the extent deducted in the determination of Net Income, (i) all
provisions for federal, state and other income tax of the Company and its
Subsidiaries, (ii) Interest Expense and (iii) provisions for depreciation and
amortization and (iv) Rental Expense, excluding (a) any gains or losses
resulting from the sale, conversion or other disposition of capital assets
(i.e., assets other than current assets), (b) any gains resulting from the
write-up of assets, (c) any earnings of any Person acquired by the Company or
any Subsidiary through purchase, merger or consolidation or otherwise for any
period prior to the date of acquisition, (d) any deferred credit representing
the excess of equity in any such Subsidiary at the date of acquisition over the
cost of the investment in such Subsidiary, (e) any gains or losses from the
acquisition of securities or the retirement or extinguishment of Indebtedness,
(f) any gains on collections from the proceeds of insurance policies or
settlements, (g) any restoration to income of any Contingency Reserve, except to
the extent that provision for such reserve was made out of income accrued during
such period, (h) any income or gain during such period from any discontinued
operations or the disposition thereof, from any extraordinary items or from any
prior period adjustments and (i) any equity of the Company or any Subsidiary in
the undistributed earnings (but not losses) of any corporation or other entity
which is not a Subsidiary of the Company, which in the aggregate will be
deducted only to the extent they are positive, adjusted for minority interests
in Subsidiaries.

                  "ENVIRONMENTAL AND SAFETY LAWS" shall mean all laws relating
to pollution, the release or other discharge, handling, disposition or treatment
of Hazardous Substance and other substances or the protection of the environment
or of employee health and safety, including without limitation, CERCLA, the
Hazardous Materials Transportation Act (49 U.S.C. Section 1801 et. seq.), the
Resource Conservation and Recovery Act (42 U.S.C. Section 7401 et. seq.), the
Clean Air Act (42 U.S.C. Section 401 et. seq.), the Toxic Substances Control Act
(15 U.S.C. Section 2601 et. seq.), the Occupational Safety and Health Act (29
U.S.C. Section 651 et. seq.) and the Emergency Planning and Community
Right-To-Know Act (42 U.S.C. Section 11001 et. seq.), each as the same may be
amended and supplemented.

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended.

                                       39
<PAGE>
                  "ERISA AFFILIATE" shall mean any corporation which is a member
of the same controlled group of corporations as the Company within the meaning
of section 414(b) of the Code, or any trade or business which is under common
control with the Company within the meaning of section 414(c) of the Code.

                  "EVENT OF DEFAULT" shall mean any of the events specified in
paragraph 7A, provided that there has been satisfied any requirement in
connection with such event for the giving of notice, or the lapse of time, or
the happening of any further condition, event or act, and "DEFAULT" shall mean
any of such events, whether or not any such requirement has been satisfied.

                  "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
as amended.

                  "FACILITY" shall have the meaning specified in paragraph 2A.

                  "GAAP" shall have the meaning set forth in paragraph 10C.

                  "GUARANTEE" shall mean, with respect to any Person, any direct
or indirect liability, contingent or otherwise, of such Person with respect to
any indebtedness, lease, dividend or other obligation of another, including,
without limitation, any such obligation directly or indirectly guaranteed,
endorsed (otherwise than for collection or deposit in the ordinary course of
business) or discounted or sold with recourse by such Person, or in respect of
which such Person is otherwise directly or indirectly liable, including, without
limitation, any such obligation in effect guaranteed by such Person through any
agreement (contingent or otherwise) to purchase, repurchase or otherwise acquire
such obligation or any security therefor, or to provide funds for the payment or
discharge of such obligation (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise), or to maintain the solvency or
any balance sheet or other financial condition of the obligor of such
obligation, or to make payment for any products, materials or supplies or for
any transportation or service, regardless of the non-delivery or non-furnishing
thereof, in any such case if the purpose or intent of such agreement is to
provide assurance that such obligation will be paid or discharged, or that any
agreements relating thereto will be complied with, or that the holders of such
obligation will be protected against loss in respect thereof. The amount of any
Guarantee shall be equal to the outstanding principal amount of the obligation
guaranteed or such lesser amount to which the maximum exposure of the guarantor
shall have been specifically limited.

                  "HAZARDOUS SUBSTANCE" shall mean (i) any material or substance
defined as or included in the definition of "hazardous substances," "hazardous
wastes," "hazardous material," "toxic substances" or any other formulations
intended to define, list or classify substances by reason of their deleterious
properties, (ii) any oil, petroleum or petroleum derived substance, (iii) any
flammable substances or explosives, (iv) any radioactive materials, (v) asbestos
in any form, (vi) electrical equipment that contains any oil or dielectric fluid

                                       40
<PAGE>
containing levels of polychlorinated biphenyls in excess of 50 parts per
million, (vii) pesticides or (viii) any other chemical, material or substance,
exposure to which is prohibited, limited or regulated by any governmental agency
or authority or which may or could pose a hazard to the health and safety of
persons in the vicinity thereof.

                  "HEDGE TREASURY NOTE(S)" shall mean, with respect to any
Accepted Note, the United States Treasury Note or Notes whose duration (as
determined by Prudential) most closely matches the duration of such Accepted
Note.

                  "HOSTILE TENDER OFFER" shall mean, with respect to the use of
proceeds of any Note, any offer to purchase, or any purchase of, shares of
capital stock of any corporation or equity interests in any other entity, or
securities convertible into or representing the beneficial ownership of, or
rights to acquire, any such shares or equity interests, if such shares, equity
interests, securities or rights are of a class which is publicly traded on any
securities exchange or in any over-the-counter market, other than purchases of
such shares, equity interests, securities or rights representing less than 5% of
the equity interests or beneficial ownership of such corporation or other entity
for portfolio investment purposes, and such offer or purchase has not been duly
approved by the board of directors of such corporation or the equivalent
governing body of such other entity prior to the date on which the Company makes
the Request for Purchase of such Note.

                  "INCLUDING" shall mean, unless the context clearly requires
otherwise, "including without limitation."

                  "INDEBTEDNESS" shall mean, with respect to any Person and
without duplication,

                  (i) its liabilities for borrowed money, including those
         evidenced by notes, bonds, debentures and similar instruments, and its
         redemption obligations in respect of mandatorily redeemable Preferred
         Stock;

                  (ii) its liabilities for the deferred purchase price of
         property acquired by such Person (excluding accounts payable arising in
         the ordinary course of business but including all liabilities created
         or arising under any conditional sale or other title retention
         agreement with respect to any such property);

                  (iii) all of its Capitalized Lease Obligations;

                  (iv) all liabilities secured by any Lien with respect to any
         property owned by such Person (whether or not it has assumed or
         otherwise become liable for such liabilities);

                  (v)   Swaps of such Person;

                                       41
<PAGE>
                  (vi) unfunded pension liabilities;

                  (vii) the outstanding balance of the purchase price of
         uncollected accounts receivable of such Person subject at such time to
         a sale of receivables or other similar transaction, regardless of
         whether such transaction is effected without recourse to such Person or
         in a manner which would not be reflected on the balance sheet of such
         Person in accordance with GAAP;

                  (viii) obligations under letters of credit;

                  (ix) obligations under acceptance facilities;

                  (x) the present value of Rental Obligations discounted at an
         annual rate of 10% per annum; and

                  (xi) all its Guarantees with respect to liabilities of a type
         described in any of clauses (i) through (vii), (ix) and (x) hereof.

Indebtedness of any Person shall include all obligations of such Person of the
character described in the immediately preceding clauses (i) through (ix) to the
extent such Person remains legally liable in respect thereof notwithstanding
that any such obligation is deemed to be extinguished under GAAP.

                  "INHAM EXEMPTION" shall have the meaning set forth in
paragraph 9B.

                  "JEVIC" shall mean Jevic Transportation, Inc., a New Jersey
corporation.

                  "INTEREST EXPENSE" shall mean, with respect to any period, the
sum (without duplication) of (i) all interest and prepayment charges in respect
of any Total Indebtedness (including imputed interest in respect of Capitalized
Lease Obligations and net costs of Swaps) deducted in determining Net Income for
such period, together with all interest capitalized or deferred during such
period and not deducted in determining Net Income for such period, plus (ii) all
debt discount and expense amortized or required to be amortized in the
determination of Net Income for such period.

                  "ISSUANCE FEE" shall have the meaning specified in paragraph
2I(2).

                  "ISSUANCE PERIOD" shall have the meaning specified in
paragraph 2B.

                  "LIEN" shall mean any mortgage, pledge, priority, security
interest, encumbrance, contractual deposit arrangement, lien (statutory or
otherwise) or charge of any kind (including any agreement to give any of the
foregoing, any conditional sale or other title retention agreement, any lease in
the nature thereof, and the filing of or agreement to give any

                                       42
<PAGE>
financing statement under the Uniform Commercial Code of any jurisdiction) or
any other type of preferential arrangement for the purpose, or having the
effect, of protecting a creditor against loss or securing the payment or
performance of an obligation.

                  "MINORITY INTERESTS" shall mean any shares of capital stock of
a Subsidiary (other than directors' qualifying shares as required by law) that
are not owned by the Company or a Wholly Owned Subsidiary.

                  "MOODY'S" shall mean Moody's Investors Service, Inc. and its
successors.

                  "MULTIEMPLOYER PLAN" shall mean any Plan which is a
"multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA).

                  "NAIC ANNUAL STATEMENT" shall have the meaning set forth in
paragraph 9B.

                  "NET INCOME" shall mean, for any computation period, with
respect to the Company on a consolidated basis with its Subsidiaries (other than
any Subsidiary which is restricted from declaring or paying dividends or
otherwise advancing funds to its parent whether by contract or otherwise),
cumulative net income earned during such period as determined in accordance with
GAAP.

                  "NET PROCEEDS" shall mean the net cash proceeds from the sale
or issuance of any equity securities, net of all underwriters' discounts and
commissions, other marketing and selling expenses.

                  "NET WORTH" shall mean, as at any time of determination
thereof, the consolidated stockholders' equity of the Company and its
Subsidiaries.

                  "NOTE DOCUMENTS" shall mean means this Agreement, the Notes,
the Subsidiary Guaranty Agreement, the Sharing Agreement, and all other
instruments, certificates, documents and other writings now or hereafter
executed and delivered by the Company, any Subsidiary of the Company or any
other Person pursuant to or in connection with any of the foregoing or any of
the transactions contemplated thereby, and any and all amendments, restatements
supplements and other modifications to any of the foregoing.

                  "NOTES" shall have the meaning specified in paragraph 1.

                  "OFFICER'S CERTIFICATE" shall mean a certificate signed in the
name of the Company by an Authorized Officer of the Company.

                  "OPERATING LEASE" shall mean any lease of any property
(whether real, personal or mixed) which is not a Capital Lease.

                                       43
<PAGE>
                  "PBGC" shall mean the Pension Benefit Guaranty Corporation.

                  "PERSON" shall mean and include an individual, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization and a
government or any department or agency thereof.

                  "PICA" shall mean The Prudential Insurance Company of America,
a New Jersey corporation.

                  "PLAN" shall mean any employee pension benefit plan (as such
term is defined in section 3 of ERISA) which is or has been established or
maintained, or to which contributions are or have been made, by the Company or
any ERISA Affiliate.

                  "PREFERRED STOCK" shall mean any class of capital stock of a
corporation that is preferred over any other class of capital stock of such
corporation as to the payment of dividends or the payment of any amount upon
liquidation or dissolution of such corporation.

                  "PRUDENTIAL" shall mean Prudential Investment Management,
Inc., a New Jersey corporation.

                  "PRUDENTIAL AFFILIATE" shall mean (i) any corporation or other
entity controlling, controlled by, or under common control with, Prudential
either directly or through subsidiaries and (ii) any managed account or
investment fund which is managed by Prudential or a Prudential Affiliate
described in clause (i) of this definition. For purposes of this definition, the
terms "control", "controlling" and "controlled" shall mean the ownership,
directly or through subsidiaries, of a majority of a corporation's or other
entity's Voting Stock or equivalent voting securities or interests.

                  "PURCHASERS" shall mean PICA, Pruco Life Insurance Company,
Reliastar Life Insurance Company and Southland Life Insurance Company with
respect to the Series A Notes and, with respect to any Accepted Notes the
Prudential Affiliate(s), which are purchasing such Accepted Notes.

                  "QPAM EXEMPTION" shall have the meaning set forth in paragraph
9B.

                  "RELATED PARTY" shall mean (i) any Shareholder, (ii) any
executive officer, director, agent or employee of the Company, (iii) all persons
to whom such Persons are related by blood, adoption or marriage and (iv) all
Affiliates of the foregoing Persons.

                  "RENTAL EXPENSE" shall mean with reference to any period, the
aggregate amount of all payments for rent or additional rent (including all
payments for taxes and insurance made directly to the lessor, but excluding
payments for maintenance, repairs, alterations, construction, demolition and the
like) for which the Company or Subsidiaries are

                                       44
<PAGE>
directly or indirectly liable (as lessee or as guarantor or other surety) under
all Operating Leases in effect at any time during such period.

                  "RENTAL OBLIGATIONS" shall mean with reference to any period
end, the aggregate amount of all future payments for rent or additional rent
(including all payments for taxes and insurance made directly to the lessor, but
excluding payments for maintenance, repairs, alterations, construction,
demolition and the like) for which the Company or Subsidiaries are directly or
indirectly liable (as lessee or as guarantor or other surety) under all
Operating Leases in effect at such period end that are not cancelable.

                  "REPORTABLE EVENT" shall mean any of the events set forth in
section 4043(b) of ERISA or the regulation thereunder, a withdrawal from a plan
described in Section 4063 of ERISA, or a cessation of operations described in
section 4062(e) of ERISA.

                  "REQUEST FOR PURCHASE" shall have the meaning specified in
paragraph 2D.

                  "REQUIRED HOLDER(S)" shall mean the holder or holders of at
least 51% of the aggregate principal amount of the Notes outstanding at such
time.

                  "RESCHEDULED CLOSING DAY" shall have the meaning specified in
paragraph 2H(3).

                  "RESPONSIBLE OFFICER" shall mean the chief executive officer,
chief operating officer, chief financial officer or chief accounting officer of
the Company or any other officer of the Company involved principally in its
financial administration or its controllership function.

                  "SAIA" shall mean Saia Motor Freight Line, Inc., a Louisiana
corporation.

                  "S & P" shall mean Standard & Poor's Ratings Group, a division
of the McGraw-Hill Companies, Inc., and its successors.

                  "SEC" shall mean the Securities and Exchange Commission (or
any governmental body or agency succeeding to the function of the Securities and
Exchange Commission).

                  "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended.

                  "SERIES" shall have the meaning specified in paragraph 1.

                  "SERIES A CLOSING" shall have the meaning specified in
paragraph 2H(1).

                  "SERIES A NOTE(S)" shall have the meaning specified in
paragraph 2H(1).

                                       45
<PAGE>
                  "SHAREHOLDER" shall mean and include any Person who owns,
beneficially or of record, directly or indirectly, at any time during any year
with respect to which a computation is being made, either individually or
together with all persons to whom such Person is related by blood, adoption or
marriage, 5% or more of the outstanding Voting Stock of the Company.

                  "SHARING AGREEMENT" shall mean the Sharing Agreement in the
form of Exhibit G attached hereto, as amended from time to time.

                  "SIGNIFICANT HOLDER" shall mean (i) Prudential, so long as
Prudential or any Prudential Affiliate shall hold (or be committed under this
Agreement to purchase) any Note or (ii) any other holder of at least 5% of the
aggregate principal amount of the Notes from time to time outstanding.

                  "STRUCTURING FEE" shall have the meaning specified in
paragraph 2I(1).

                  "SUBORDINATED DEBT" shall mean the 7% Convertible Subordinated
Debentures Due 2011 evidenced by the Indenture between the Company (formerly
Preston Corporation) and Manufacturers Hanover Trust Company, as Trustee, dated
as of May 1, 1986.

                  "SUBSIDIARY" shall mean any corporation organized under the
laws of any state of the United States of America, Canada, or any province of
Canada, which conducts the major portion of its business in and makes the major
portion of its sales to Persons located in the United States of America or
Canada, and at least 51% of the total combined voting power of all classes of
Voting Stock of which] shall, at the time as of which any determination is being
made, be owned by the Company either directly or through Subsidiaries.

                  "SUBSIDIARY GUARANTOR" shall mean Saia and Jevic and each
other Subsidiary of the Company that has executed the Subsidiary Guaranty
Agreement or a Guarantor Supplement in the form attached to the Subsidiary
Guaranty Agreement.

                  "SUBSIDIARY GUARANTY AGREEMENT" shall mean the Guaranty
Agreement in the form of Exhibit F hereto, as amended from time to time.

                  "SWAPS" shall mean, with respect to any Person, payment
obligations with respect to interest rate swaps, currency swaps and similar
obligations obligating such Person to make payments, whether periodically or
upon the happening of a contingency. For the purposes of this Agreement, the
amount of the obligation under any Swap shall be the amount determined in
respect thereof as of the end of the then most recently ended fiscal quarter of
such Person, based on the assumption that such Swap had terminated at the end of
such fiscal quarter, and in making such determination, if any agreement relating
to such Swap provides for the netting of amounts payable by and to such Person
thereunder or if any such agreement provides for the simultaneous payment of
amounts by and to such Person, then in each such case, the amount of such
obligation shall be the net amount so determined.

                                       46
<PAGE>
                  "TANGIBLE ASSETS" shall mean the consolidated assets of the
Company and its Subsidiaries less, without duplication, (i) intangible assets
including, without limitation, goodwill, licenses, organizational expense,
unamortized debt discount and expense carried as an asset, all reserves and any
write-up in the book value of assets and (ii) all reserves for depreciation and
other asset valuation reserves (but excluding reserves for federal, state and
other income taxes).

                  "TANGIBLE NET WORTH" shall mean, without duplication, as at
any time of determination thereof, Net Worth less (i) all intangible items,
including, without limitation, goodwill, licenses, organizational expense,
unamortized debt discount and expense carried as an asset, all reserves and any
write-up in the book value of assets and (ii) all reserves for depreciation and
other asset valuation reserves (but excluding reserves for federal, state, and
other income taxes), net of accumulated amortization.

                  "TOTAL INDEBTEDNESS" shall mean the consolidated Indebtedness
of the Company and its Subsidiaries.

                  "TRANSFER" shall mean, with respect to any item, the sale,
exchange, conveyance, lease, transfer or other disposition of such item.

                  "TRANSFEREE" shall mean any direct or indirect transferee of
all or any part of any Note purchased by any Purchaser under this Agreement.

                  "VOTING STOCK" shall mean, with respect to any corporation,
any shares of stock of such corporation whose holders are entitled under
ordinary circumstances to vote for the election of directors of such corporation
(irrespective of whether at the time stock of any other class or classes shall
have or might have voting power by reason of the happening of any contingency).

                  "WHOLLY OWNED SUBSIDIARY" shall mean any corporation organized
under the laws of any state of the United States, Canada, or any province of
Canada, which conducts the major portion of its business in and makes the major
portion of its sales to Persons located in the United States or Canada, all of
the stock of every class of which is, at the time as of which any determination
is being made, owned by the Company either directly or through Wholly Owned
Subsidiaries, and which has outstanding no options, warrants, rights or other
securities entitling the holder thereof (other than the Company or a Wholly
Owned Subsidiary) to acquire shares of capital stock of such corporation.

                  10C. ACCOUNTING PRINCIPLES, TERMS AND DETERMINATIONS. All
references in this Agreement to "GAAP" shall be deemed to refer to generally
accepted accounting principles in effect in the United States on January 1,
2002. Unless otherwise specified herein, all accounting terms used herein shall
be interpreted, all determinations with respect to accounting matters hereunder
shall be made, and all unaudited financial statements and

                                       47
<PAGE>
certificates and reports as to financial matters required to be furnished
hereunder shall be prepared, in accordance with GAAP applied on a basis
consistent with the most recent audited financial statements delivered pursuant
to clause (ii) of paragraph 5A or, if no such statements have been so delivered,
the most recent audited financial statements referred to in clause (i) of
paragraph 8B.

                  11.  MISCELLANEOUS.

                  11A. NOTE PAYMENTS. The Company agrees that, so long as any
Purchaser shall hold any Note, it will make payments of principal of, interest
on, and any Yield-Maintenance Amount payable with respect to, such Note, which
comply with the terms of this Agreement, by wire transfer of immediately
available funds for credit (not later than 12:00 noon, New York City local time,
on the date due) to (i) the account or accounts of such Purchaser, if any, as
are specified in the Purchaser Schedule attached hereto, (ii) the account or
accounts of such Purchaser specified in the Confirmation of Acceptance with
respect to such Note or (iii) such account or accounts in the United States as
such Purchaser may from time to time designate in writing, notwithstanding any
contrary provision herein or in any Note with respect to the place of payment.
Each Purchaser agrees that, before disposing of any Note, it will make a
notation thereon (or on a schedule attached thereto) of all principal payments
previously made thereon and of the date to which interest thereon has been paid.
The Company agrees to afford the benefits of this paragraph 11A to any
Transferee which shall have made the same agreement as the Purchasers have made
in this paragraph 11A. No holder shall be required to present or surrender any
Note or make any notation thereon, except that upon written request of the
Company made concurrently with or reasonably promptly after payment or
prepayment in full of any Note, the applicable holder shall surrender such Note
for cancellation, reasonably promptly after any such request, to the Company at
its principal executive office.

                  11B. EXPENSES. The Company agrees, whether or not the
transactions contemplated hereby shall be consummated, to pay, and save
Prudential, each Purchaser and any Transferee harmless against liability for the
payment of, all out-of-pocket expenses arising in connection with such
transactions, including:

                  (i) (A) all stamp and documentary taxes and similar charges,
         (B) costs of obtaining a private placement number from S&P for the
         Notes and (C) fees and expenses of brokers, agents, dealers, investment
         banks or other intermediaries or placement agents, in each case as a
         result of the execution and delivery of this Agreement or the issuance
         of the Notes;

                  (ii) document production and duplication charges and the fees
         and expenses of any special counsel engaged by Prudential or such
         Purchaser or such Transferee (other than any fees or expenses of such
         Purchaser or Transferee in connection with the transfer of any Note) in
         connection with (A) this Agreement and the transactions

                                       48
<PAGE>
         contemplated hereby and (B) any subsequent proposed waiver, amendment
         or modification of, or proposed consent under, this Agreement, whether
         or not such the proposed action shall be effected or granted;

                  (iii) the costs and expenses, including attorneys' and
         financial advisory fees, incurred by Prudential or such Purchaser or
         such Transferee in enforcing (or determining whether or how to enforce)
         any rights under this Agreement or the Notes or in responding to any
         subpoena or other legal process or informal investigative demand issued
         in connection with this Agreement or the transactions contemplated
         hereby or by reason of Prudential or such Purchaser's or such
         Transferee's having acquired any Note, including without limitation
         costs and expenses incurred in any workout, restructuring or
         renegotiation proceeding or bankruptcy case; and

                  (iv) any judgment, liability, claim, order, decree, cost, fee,
         expense, action or obligation resulting from the consummation of the
         transactions contemplated hereby, including the use of the proceeds of
         the Notes by the Company.

                  The obligations of the Company under this paragraph 11B shall
survive the transfer of any Note or portion thereof or interest therein by any
Purchaser or Transferee and the payment of any Note. The Company's obligations
under clause (ii)(A) of this paragraph 11B shall be deemed to have been fully
satisfied upon payment of the Structuring Fee.

                  11C. CONSENT TO AMENDMENTS. This Agreement may be amended, and
the Company may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, if the Company shall obtain the written
consent to such amendment, action or omission to act, of the Required Holder(s)
except that, (i) with the written consent of the holders of all Notes of a
particular Series, and if an Event of Default shall have occurred and be
continuing, of the holders of all Notes of all Series, at the time outstanding
(and not without such written consents), the Notes of such Series may be amended
or the provisions thereof waived to change the maturity thereof, to change or
affect the principal thereof, or to change or affect the time of payment of, or
increase the rate of, interest on or any Yield-Maintenance Amount payable with
respect to the Notes of such Series, (ii) without the written consent of the
holder or holders of all Notes at the time outstanding, no amendment to or
waiver of the provisions of this Agreement shall change or affect the provisions
of paragraph 7A or this paragraph 11C insofar as such provisions relate to
proportions of the principal amount of the Notes of any Series, or the rights of
any individual holder of Notes, required with respect to any declaration of
Notes to be due and payable or with respect to any consent, amendment, waiver or
declaration, (iii) with the written consent of Prudential (and not without the
written consent of Prudential) the provisions of paragraph 2 may be amended or
waived (except insofar as any such amendment or waiver would affect any rights
or obligations with respect to the purchase and sale of Notes which shall have
become Accepted Notes prior to such amendment or waiver) and (iv) with the
written consent of all of the Purchasers which shall have become obligated to
purchase Accepted Notes of any Series (and not without the written consent of
all

                                       49
<PAGE>
such Purchasers), any of the provisions of paragraphs 2 and 3 may be amended
or waived insofar as such amendment or waiver would affect only rights or
obligations with respect to the purchase and sale of the Accepted Notes of such
Series or the terms and provisions of such Accepted Notes. Each holder of any
Note at the time or thereafter outstanding shall be bound by any consent
authorized by this paragraph 11C, whether or not such Note shall have been
marked to indicate such consent, but any Notes issued thereafter may bear a
notation referring to any such consent. No course of dealing between the Company
and the holder of any Note nor any delay in exercising any rights hereunder or
under any Note shall operate as a waiver of any rights of any holder of such
Note. As used herein and in the Notes, the term "THIS AGREEMENT" and references
thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

                  11D. FORM, REGISTRATION, TRANSFER AND EXCHANGE OF NOTES; LOST
NOTES. The Notes are issuable as registered notes without coupons in
denominations of at least $100,000, except as may be necessary to reflect any
principal amount not evenly divisible by $100,000. The Company shall keep at its
principal office a register in which the Company shall provide for the
registration of Notes and of transfers of Notes. Upon surrender for registration
of transfer of any Note at the principal office of the Company, the Company
shall, at its expense, execute and deliver one or more new Notes of like tenor
and of a like aggregate principal amount, registered in the name of such
transferee or transferees. At the option of the holder of any Note, such Note
may be exchanged for other Notes of like tenor and of any authorized
denominations, of a like aggregate principal amount, upon surrender of the Note
to be exchanged at the principal office of the Company. Whenever any Notes are
so surrendered for exchange, the Company shall, at its expense, execute and
deliver the Notes which the holder making the exchange is entitled to receive.
Each installment of principal payable on each installment date upon each new
Note issued upon any such transfer or exchange shall be in the same proportion
to the unpaid principal amount of such new Note as the installment of principal
payable on such date on the Note surrendered for registration of transfer or
exchange bore to the unpaid principal amount of such Note. No reference need be
made in any such new Note to any installment or installments of principal
previously due and paid upon the Note surrendered for registration of transfer
or exchange. Every Note surrendered for registration of transfer or exchange
shall be duly endorsed, or be accompanied by a written instrument of transfer
duly executed, by the holder of such Note or such holder's attorney duly
authorized in writing. Any Note or Notes issued in exchange for any Note or upon
transfer thereof shall carry the rights to unpaid interest and interest to
accrue which were carried by the Note so exchanged or transferred, so that
neither gain nor loss of interest shall result from any such transfer or
exchange. Upon receipt of written notice from the holder of any Note of the
loss, theft, destruction or mutilation of such Note and, in the case of any such
loss, theft or destruction, upon receipt of such holder's unsecured indemnity
agreement, or in the case of any such mutilation upon surrender and cancellation
of such Note, the Company will make and deliver a new Note, of like tenor, in
lieu of the lost, stolen, destroyed or mutilated Note.

                                       50
<PAGE>
                  11E. PERSONS DEEMED OWNERS; PARTICIPATIONS. Prior to due
presentment for registration of transfer, the Company may treat the Person in
whose name any Note is registered as the owner and holder of such Note for the
purpose of receiving payment of principal of and interest on, and any
Yield-Maintenance Amount payable with respect to, such Note and for all other
purposes whatsoever, whether or not such Note shall be overdue, and the Company
shall not be affected by notice to the contrary. Subject to the preceding
sentence, the holder of any Note may from time to time grant participations in
all or any part of such Note to any Person on such terms and conditions as may
be determined by such holder in its sole and absolute discretion.

                  11F. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
AGREEMENT. All representations and warranties contained herein or made in
writing by or on behalf of the Company in connection herewith shall survive the
execution and delivery of this Agreement and the Notes, the transfer by any
Purchaser of any Note or portion thereof or interest therein and the payment of
any Note, and may be relied upon by any Transferee, regardless of any
investigation made at any time by or on behalf of any Purchaser or any
Transferee. Subject to the preceding sentence, this Agreement, the Notes, the
letter dated July 12, 2002 from PICA to the Company, the letter dated September
6, 2002 from Prudential to the Company and each Confirmation of Acceptance
embody the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof and supersede all prior agreements and
understandings relating to such subject matter.

                  11G. SUCCESSORS AND ASSIGNS. All covenants and other
agreements in this Agreement contained by or on behalf of any of the parties
hereto shall bind and inure to the benefit of the respective successors and
assigns of the parties hereto (including, without limitation, any Transferee)
whether so expressed or not. Each Purchaser and each Transferee hereby agree
that upon becoming a holder of any Note it shall become, without any further
action on the part of such Person or the parties to the Sharing Agreement, a
party to the Sharing Agreement and the terms of the Sharing Agreement shall bind
and inure to the benefit of such Person.

                  11H. INDEPENDENCE OF COVENANTS. All covenants hereunder shall
be given independent effect so that if a particular action or condition is
prohibited by any one of such covenants, the fact that it would be permitted by
an exception to, or otherwise be in compliance within the limitations of,
another covenant shall not avoid the occurrence of a Default or Event of Default
if such action is taken or such condition exists.

                  11I. NOTICES. All written communications provided for
hereunder (other than communications provided for under paragraph 2) shall be
sent by first class mail or nationwide overnight delivery service (with charges
prepaid) and (i) if to Prudential or any Purchaser, addressed as specified for
such communications in the Purchaser Schedule attached hereto (in the case of
the Series A Notes) or the Purchaser Schedule attached to the applicable
Confirmation of Acceptance (in the case of any Notes issued after the date
hereof) or at such

                                       51
<PAGE>
other address as Prudential or any such Purchaser shall have specified to the
Company in writing, (ii) if to any other holder of any Note, addressed to it at
such address as it shall have specified in writing to the Company, or, if any
such holder shall not have so specified an address, then addressed to such
holder in care of the last holder of such Note which shall have so specified an
address to the Company and (iii) if to the Company, addressed to it at One Main
Plaza, 4435 Main Street, Kansas City, MO 64111; provided, however, that any such
communication to the Company may also, at the option of the Person sending such
communication, be delivered by any other means either to the Company at its
address specified above or to any Authorized Officer of the Company. Any
communication pursuant to paragraph 2 shall be made by the method specified for
such communication in paragraph 2, and shall be effective to create any rights
or obligations under this Agreement only if, in the case of a telephone
communication, an Authorized Officer of the party conveying the information and
of the party receiving the information are parties to the telephone call, and in
the case of a telecopier communication, the communication is signed by an
Authorized Officer of the party conveying the information, addressed to the
attention of an Authorized Officer of the party receiving the information, and
in fact received at the telecopier terminal the number of which is listed for
the party receiving the communication in the Purchaser Schedule or at such other
telecopier terminal as the party receiving the information shall have specified
in writing to the party sending such information.

                  11J. PAYMENTS DUE ON NON-BUSINESS DAYS. Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of principal
of or interest on, or Yield-Maintenance Amount payable with respect to, any Note
that is due on a date other than a Business Day shall be made on the next
succeeding Business Day. If the date for any payment is extended to the next
succeeding Business Day by reason of the preceding sentence, the period of such
extension shall not be included in the computation of the interest payable on
such Business Day.

                  11K. SEVERABILITY. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                  11L. DESCRIPTIVE HEADINGS. The descriptive headings of the
several paragraphs of this Agreement are inserted for convenience only and do
not constitute a part of this Agreement.

                  11M. SATISFACTION REQUIREMENT. If any agreement, certificate
or other writing, or any action taken or to be taken, is by the terms of this
Agreement required to be

                                       52
<PAGE>
satisfactory to Prudential, any Purchaser, to any holder of Notes or to the
Required Holder(s), the determination of such satisfaction shall be made by
Prudential, such Purchaser, such holder or the Required Holder(s), as the case
may be, in the sole and exclusive judgment (exercised in good faith) of the
Person or Persons making such determination.

                  11N. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY,
THE LAW OF THE STATE OF NEW YORK.

                  11O. SEVERALTY OF OBLIGATIONS. The sales of Notes to the
Purchasers are to be several sales, and the obligations of Prudential and the
Purchasers under this Agreement are several obligations. No failure by
Prudential or any Purchaser to perform its obligations under this Agreement
shall relieve any other Purchaser or the Company of any of its obligations
hereunder, and neither Prudential nor any Purchaser shall be responsible for the
obligations of, or any action taken or omitted by, any other such Person
hereunder.

                  11P. COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

                  11Q. BINDING AGREEMENT. When this Agreement is executed and
delivered by the Company, Prudential and the Purchasers of the Series A Notes,
it shall become a binding agreement between the Company, Prudential and the
Purchasers of the Series A Notes. This Agreement shall also inure to the benefit
of each Purchaser which shall have executed and delivered a Confirmation of
Acceptance, and each such Purchaser shall be bound by this Agreement to the
extent provided in such Confirmation of Acceptance.

                  11R. WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION.

                  (i) THE COMPANY, PRUDENTIAL AND EACH HOLDER OF NOTES HEREBY
         KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE
         TO A TRIAL BY JURY IN ANY LITIGATION OF ANY CLAIM WHICH IS BASED
         HEREON, OR ARISES OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT,
         THE NOTES OR THE OTHER NOTE DOCUMENTS, OR ANY TRANSACTIONS RELATING
         HERETO OR THERETO, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
         STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF THE COMPANY,
         PRUDENTIAL OR THE HOLDERS OF THE NOTES. THE COMPANY ACKNOWLEDGES THAT
         THIS PROVISION IS A MATERIAL INDUCEMENT FOR PRUDENTIAL AND EACH
         PURCHASER TO BECOME A PARTY TO THIS AGREEMENT AND TO PURCHASE NOTES
         HEREUNDER.

                                       53
<PAGE>
                  (ii) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
         AGREEMENT, THE NOTES, THE OTHER NOTE DOCUMENTS OR ANY TRANSACTIONS
         RELATING HERETO OR THERETO, OR ANY COURSE OF CONDUCT, COURSE OF
         DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF THE
         COMPANY, PRUDENTIAL OR THE HOLDERS OF NOTES MAY BE BROUGHT IN THE
         COURTS OF THE STATE OF NEW YORK OR THE UNITED STATES OF AMERICA FOR THE
         SOUTHERN DISTRICT OF NEW YORK, AND THE COMPANY HEREBY ACCEPTS FOR
         ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,
         THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. THE COMPANY,
         PRUDENTIAL AND EACH HOLDER OF NOTES HEREBY IRREVOCABLY WAIVES ANY
         OBJECTIONS, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING
         OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY
         NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING
         IN SUCH RESPECTIVE JURISDICTIONS.

                  (iii) The Company hereby agrees that process may be served on
         it by certified mail, return receipt requested, to the addresses
         pertaining to it as specified in paragraph 11I or on Corporation
         Service Company, located at 80 State Street, Albany, NY 12207, and
         hereby appoints Corporation Service Company as its agent to receive
         such service of process. Any and all service of process and any other
         notice in any such action, suit or proceeding shall be effective
         against the Company if given by registered or certified mail, return
         receipt requested, or by any other means or mail which requires a
         signed receipt, postage prepaid, mailed as provided above. In the event
         Corporation Service Company shall not be able to accept service of
         process as aforesaid and if the Company shall not maintain an office in
         New York City, the Company shall promptly appoint and maintain an agent
         qualified to act as an agent for service of process with respect to the
         courts specified in paragraph 11R(ii), and acceptable to the Required
         Holder(s), as the Company's authorized agent to accept and acknowledge
         on the Company's behalf service of any and all process which may be
         served in any such action, suit or proceeding.

                  11S. CONFIDENTIAL INFORMATION. For the purposes of this
paragraph 11S, "CONFIDENTIAL INFORMATION" means information delivered to
Prudential or any Purchaser by or on behalf of the Company or any Subsidiary in
connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was clearly marked or labeled
or otherwise adequately identified when received by Prudential or such Purchaser
as being confidential information of the Company or such Subsidiary, provided
that such term does not include information that (a) was publicly known or
otherwise known to Prudential or such Purchaser prior to the time of such
disclosure, (b) subsequently becomes publicly known through no act or omission
by Prudential or such Purchaser or any person acting on behalf of Prudential or
such Purchaser, (c) otherwise becomes known to Prudential

                                       54
<PAGE>
or such Purchaser other than through disclosure by the Company or any Subsidiary
or (d) constitutes financial statements delivered to Prudential or such
Purchaser under paragraph 5A that are otherwise publicly available. Prudential
and each Purchaser will maintain the confidentiality of such Confidential
Information in accordance with procedures adopted by Prudential or such
Purchaser in good faith to protect confidential information of third parties
delivered to Prudential or such Purchaser, provided that Prudential or such
Purchaser may deliver or disclose Confidential Information to (i) its directors,
officers, employees, agents, attorneys and affiliates (to the extent such
disclosure reasonably relates to the administration of the investment
represented by its Notes), (ii) its financial advisors and other professional
advisors who agree to hold confidential the Confidential Information
substantially in accordance with the terms of this paragraph 11S, (iii) any
other holder of any Note, (iv) any Institutional Investor to which it sells or
offers to sell such Note or any part thereof or any participation therein (if
such Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this paragraph 11S), (v) any Person
from which Prudential or such Purchaser offers to purchase any security of the
Company (if such Person has agreed in writing prior to its receipt of such
Confidential Information to be bound by the provisions of this paragraph 11S),
(vi) any federal or state regulatory authority having jurisdiction over
Prudential or such Purchaser, (vii) the National Association of Insurance
Commissioners or any similar organization, or any nationally recognized rating
agency that requires access to information about the investment portfolio of
Prudential or such Purchaser or (viii) any other Person to which such delivery
or disclosure may be necessary or appropriate (w) to effect compliance with any
law, rule, regulation or order applicable to Prudential or such Purchaser, (x)
in response to any subpoena or other legal process, (y) in connection with any
litigation to which Prudential or such Purchaser is a party or (z) if an Event
of Default has occurred and is continuing, to the extent Prudential or such
Purchaser may reasonably determine such delivery and disclosure to be necessary
or appropriate in the enforcement or for the protection of the rights and
remedies under its Notes or this Agreement. Each holder of a Note, by its
acceptance of a Note, will be deemed to have agreed to be bound by and to be
entitled to the benefits of this paragraph 11S as though it were a party to this
Agreement. On reasonable request by the Company in connection with the delivery
to any holder of a Note of information required to be delivered to such holder
under this Agreement or requested by such

                                * * * * * * * *

                                       55
<PAGE>
holder (other than a holder that is a party to this Agreement or its nominee),
such holder will enter into an agreement with the Company embodying the
provisions of this paragraph 11S.

                  If you are in agreement with the foregoing, please sign the
form of acceptance on the enclosed counterpart of this letter and return the
same to the Company, whereupon this letter shall become a binding agreement
between the Company and you.

                                              Very truly yours,

                                              SCS TRANSPORTATION, INC.

                                              By: /s/ M. A. Trucksees III
                                                 -------------------------------
                                                  Title: President & CEO

The foregoing Agreement is hereby accepted
as of the date first above written.

PRUDENTIAL INVESTMENT MANAGEMENT, INC.

By: /s/ Brian N. Thomas
    --------------------------------------
         Vice President

THE PRUDENTIAL INSURANCE COMPANY
  OF AMERICA

By: /s/ Brian N. Thomas
    --------------------------------------
         Vice President

PRUCO LIFE INSURANCE COMPANY

By: /s/ Brian N. Thomas
    --------------------------------------
         Vice President

                                       56
<PAGE>

RELIASTAR LIFE INSURANCE COMPANY

By:   Prudential Private Placement Investors,
      L.P. (as Investment Advisor)

By:   Prudential Private Placement Investors, Inc.
      (as its General Partner)

By: /s/ Brian N. Thomas
    --------------------------------------
         Vice President

SOUTHLAND LIFE INSURANCE COMPANY

By:   Prudential Private Placement Investors,
      L.P. (as Investment Advisor)

By:   Prudential Private Placement Investors, Inc.
      (as its General Partner)

By: /s/ Brian N. Thomas
    --------------------------------------
         Vice President

                                       57
<PAGE>

                               PURCHASER SCHEDULE

<TABLE>
<CAPTION>
                                                                             AGGREGATE PRINCIPAL
                                                                               AMOUNT OF NOTES              NOTE
                                                                               TO BE PURCHASED        DENOMINATION(S)
                                                                             -------------------      ---------------
<S>                                                                          <C>                      <C>
        THE PRUDENTIAL INSURANCE COMPANY OF
          AMERICA                                                                $71,598,000            $71,598,000

(1)     All payments on account of Notes held by such purchaser shall be
        made by wire transfer of immediately available funds for credit to:

        Account No.:  890-0304-391

        The Bank of New York
        New York, New York
        (ABA No.:  021-000-018)

        Each such wire transfer shall set forth the name of the Company, a
        reference to "7.38% Senior Notes, Series A, due December 31, 2013,
        Security No. [INV 8075], PPN 81111TA*3", and the due date and
        application (as among principal, interest and Yield-Maintenance
        Amount) of the payment being made.

(2)     Address for all notices relating to payments:

        The Prudential Insurance Company of America
        c/o Investment Operations Group
        Gateway Center Two, 10th Floor
        100 Mulberry Street
        Newark, New Jersey 07102-4077

        Attention:  Manager

(3)     Address for all other communications and notices:

        The Prudential Insurance Company of America
        c/o Prudential Capital Group
        2200 Ross Avenue, Suite 4200E
        Dallas, Texas 75201

        Attention:  Managing Director

(4)     Recipient of telephonic prepayment notices:

        Manager, Trade Management Group

        Telephone:  (973) 367-3141
        Facsimile:   (973) 802-4925

(5)     Tax Identification No.:  22-1211670
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>                       <C>
(6)     Authorized Officers:

           Randall M. Kob
           Ric E. Abel
           Jay D. Squiers
           Brian N. Thomas
           or any other Vice President of Prudential

<CAPTION>
                                                                             AGGREGATE PRINCIPAL
                                                                               AMOUNT OF NOTES              NOTE
                                                                               TO BE PURCHASED        DENOMINATION(S)
                                                                             -------------------      ---------------
<S>                                                                          <C>                      <C>

        PRUCO LIFE INSURANCE COMPANY                                             $3,402,000              $3,402,000

(1)     All payments on account of Notes held by such purchaser shall be
        made by wire transfer of immediately available funds for credit to:

        Account No.:  890-0304-421

        The Bank of New York
        New York, New York
        (ABA No.:  021-000-018)

        Each such wire transfer shall set forth the name of the Company, a
        reference to "7.38% Senior Notes, Series A, due December 31, 2013,
        Security No. [INV 8075], PPN 81111TA*3", and the due date and
        application (as among principal, interest and Yield-Maintenance
        Amount) of the payment being made.

(2)     Address for all notices relating to payments:

        Pruco Life Insurance Company
        c/o Investment Operations Group
        Gateway Center Two, 10th Floor
        100 Mulberry Street
        Newark, New Jersey 07102-4077

        Attention:  Manager
</TABLE>

                                   PS-2
<PAGE>

<TABLE>
<S>                                                                         <C>                       <C>
(3)     Address for all other communications and notices:

        Pruco Life Insurance Company
        c/o Prudential Capital Group
        2200 Ross Avenue, Suite 4200E
        Dallas, Texas 75201

        Attention:  Managing Director

(4)     Recipient of telephonic prepayment notices:

        Manager, Trade Management Group

        Telephone:  (973) 367-3141
        Facsimile:   (973) 802-4925

(5)     Tax Identification No.:  22-1944557

(6)     Authorized Officers:

           Randall M. Kob
           Ric E. Abel
           Jay D. Squiers
           Brian N. Thomas
           or any other Vice President of Prudential

<CAPTION>
                                                                             AGGREGATE PRINCIPAL
                                                                               AMOUNT OF NOTES              NOTE
                                                                               TO BE PURCHASED        DENOMINATION(S)
                                                                             -------------------      ---------------
<S>                                                                          <C>                      <C>

        RELIASTAR LIFE INSURANCE COMPANY                                         $15,000,000            $15,000,000

(1)     All payments on account of Notes held by such purchaser shall be
        made by wire transfer of immediately available funds for credit to:

        The Bank of New York
        New York, New York
        ABA No.:  021-000-018
        BNF:  111566 - Inst'l Custody
        Reference:  ReliaStar Life Insurance Company, Account No. 187035
        and Cusip # 81111TA*3 with sufficient information to identify the
        source and application of such funds
</TABLE>

                                   PS-3
<PAGE>

<TABLE>
<S>                                                                         <C>                       <C>
        Each such wire transfer shall set forth the name of the Company, a
        reference to "7.38% Senior Notes, Series A, due December 31, 2013, PPN
        81111TA*3", and the due date and application (as among principal,
        interest and Yield-Maintenance Amount) of the payment being made.

(2)     Address for all notices relating to payments:

        ING Investment Management LLC
        5780 Powers Ferry Road, NW, Suite 300
        Atlanta, Georgia 30327-4943

        Attention:  Securities Accounting

        Facsimile:   (770) 690-4899

(3)     Address for all other communications and notices:

        Prudential Private Placement Investors, L.P.
        Four Gateway Center
        100 Mulberry Street
        Newark, New Jersey 07102

        Attention:  Albert Trank, Senior Vice President

        Telephone:  (973) 802-8608
        Facsimile:   (973) 624-6432

(4)     Recipient of telephonic prepayment notices:

        Manager, Trade Management Group

        Telephone:  (973) 802-8107
        Facsimile:   (973) 802-9425

(5)     Tax Identification No.:  41-0451140

(6)     Authorized Officers:

           Randall M. Kob
           Ric E. Abel
           Jay D. Squiers
           Brian N. Thomas
           or any other Vice President of Prudential
</TABLE>

                                   PS-4
<PAGE>

<TABLE>
<CAPTION>
                                                                             AGGREGATE PRINCIPAL
                                                                               AMOUNT OF NOTES              NOTE
                                                                               TO BE PURCHASED        DENOMINATION(S)
                                                                             -------------------      ---------------
<S>                                                                          <C>                      <C>

        SOUTHLAND LIFE INSURANCE COMPANY                                         $10,000,000            $10,000,000

(1)     All payments on account of Notes held by such purchaser shall be
        made by wire transfer of immediately available funds for credit to:

        The Bank of New York
        New York, New York
        ABA No.:  021-000-018
        BNF:  111566
        Attention:  P&I Department
        Reference:  Southland Life Insurance Company and Cusip #
        81111TA*3 with sufficient information to identify the source and
        application of such funds

        Each such wire transfer shall set forth the name of the Company, a
        reference to "7.38% Senior Notes, Series A, due December 31, 2013,
        PPN 81111TA*3", and the due date and application (as among
        principal, interest and Yield-Maintenance Amount) of the payment
        being made.

(2)     Address for all notices relating to payments:

        ING Investment Management LLC
        5780 Powers Ferry Road, NW, Suite 300
        Atlanta, Georgia 30327-4943

        Attention:  Securities Accounting

        Facsimile:   (770) 690-4899

(3)     Address for all other communications and notices:

        Prudential Private Placement Investors, L.P.
        Four Gateway Center
        100 Mulberry Street
        Newark, New Jersey 07102

        Attention:  Albert Trank, Senior Vice President

        Telephone:  (973) 802-8608
        Facsimile:   (973) 624-6432
</TABLE>

                                   PS-5
<PAGE>

<TABLE>
<S>                                                                         <C>                       <C>
(4)     Recipient of telephonic prepayment notices:

        Manager, Trade Management Group

        Telephone:  (973) 802-8107
        Facsimile:   (973) 802-9425

(5)     Tax Identification No.:  75-0572420

(6)     Authorized Officers:

           Randall M. Kob
           Ric E. Abel
           Jay D. Squiers
           Brian N. Thomas
           or any other Vice President of Prudential

        PRUDENTIAL INVESTMENT MANAGEMENT, INC.

(1)     Address for all notices relating to payments:

        Prudential Investment Management, Inc.
        c/o The Prudential Insurance Company of America
        Investment Operations Group
        Gateway Center Two, 10th Floor
        100 Mulberry Street
        Newark, New Jersey 07102-4077

        Attention:  Manager

(2)     Address for all other communications and notices:

        Prudential Investment Management, Inc.
        c/o Prudential Capital Group
        2200 Ross Avenue, Suite 4200E
        Dallas, Texas 75201

        Attention:  Managing Director

(3)     Recipient of telephonic prepayment notices:

        Manager, Trade Management Group

        Telephone:  (973) 367-3141
        Facsimile:   (973) 802-4925

(4)     Tax Identification No.:  22-2540245
</TABLE>

                                   PS-6
<PAGE>

<TABLE>
<S>                                                                         <C>                       <C>
(5)     Authorized Officers:

           Randall M. Kob
           Ric E. Abel
           Jay D. Squiers
           Brian N. Thomas
           or any other Vice President of Prudential
</TABLE>

                                   PS-7
<PAGE>

                                                                  SCHEDULE 6C(1)

                                 EXISTING LIENS

1.       Mortgage dated December 9, 1998 in the amount of $5,775,000.00 recorded
         in Burlington County on 12/29/1998 Document No. 3257214 MB7466 pages
         855-883

2.       Commercial Deed of Trust dated December 9, 1998 in the amount of
         $2,175,000.00 recorded in Cabarrus County on December 16, 1998 filing
         No. 034963 Book 2391 pages 71-97

3.       Mortgage dated December 9, 1998 in the amount of $4,200,000.00 recorded
         in Worcester County on December 15, 1998 filing No. 187793 Book 20798
         pages 125-151

4.       Mortgage Dated October 31, 1995, signed November 1, 1995, in the amount
         of $5,625,000.00 recorded in Burlington County, NJ on November 9, 1995
         filing No. 080627 MB6144 pages 179-206

<PAGE>

                                                                  SCHEDULE 6C(3)

                              EXISTING INVESTMENTS

1.       Investments in assets in the Saia Motor Freight Line, Inc. Executive
         Capital Accumulation Plan (a non-qualified plan) valued at
         $1,353,306.36 as of August 31, 2002.

2.       Investments in assets in the Jevic Transportation, Inc. Executive
         Capital Accumulation Plan (a non-qualified plan) valued at $310,262.51
         as of August 31, 2002.

3.       Investments evidenced by loans from Saia Motor Freight Line, Inc. to
         Daniel and David Fulkerson in connection with non-compete agreements in
         the aggregate amount of $1,116,019.31 as of August 31, 2002.

4.       Investments evidenced by loans from Jevic Transportation, Inc. to 24
         persons in connection with non-compete agreements in the aggregate
         outstanding balance of $998,602.00 at August 31, 2002.

<PAGE>

                                                                     SCHEDULE 8G

                   LIST OF AGREEMENTS RESTRICTING INDEBTEDNESS

1.       Agented Revolving Credit Agreement dated as of September 20, 2002
among the Company, the lenders parties thereto and the Bank of Oklahoma, as
agent for such lenders.

<PAGE>

                                                                     EXHIBIT A-1

                                 [FORM OF NOTE]

                            SCS TRANSPORTATION, INC.

                 _____% SENIOR NOTE, SERIES _____, DUE ________

No. R-____                                                       PPN:___________
ORIGINAL PRINCIPAL AMOUNT:
ORIGINAL ISSUE DATE:
INTEREST RATE:
INTEREST PAYMENT DATES:
FINAL MATURITY DATE:
PRINCIPAL INSTALLMENT DATES AND AMOUNTS:

                  FOR VALUE RECEIVED, the undersigned, SCS TRANSPORTATION, INC.
(the "COMPANY"), a corporation organized and existing under the laws of the
State of Delaware, hereby promises to pay to ___________, or registered assigns,
the principal sum of __________ DOLLARS [on the Final Maturity Date specified
above] [, payable in installments on the Principal Installment Dates and in the
amounts specified above, and on the Final Maturity Date specified above in an
amount equal to the unpaid balance of the principal hereof,] with interest
(computed on the basis of a 360-day year--30-day month) (a) on the unpaid
balance thereof from the date hereof at the Interest Rate per annum specified
above, payable on each Interest Payment Date specified above and on the Final
Maturity Date specified above, commencing with the Interest Payment Date next
succeeding the date hereof, until the principal hereof shall have become due and
payable, and (b) on the occurrence and during the continuance of an Event of
Default, at the Default Rate with respect to any outstanding principal hereof,
any overdue payment of interest and any overdue payment of any Yield-Maintenance
Amount, payable [semiannually] [quarterly] as aforesaid (or, at the option of
the registered holder hereof, on demand).

                  Payments of principal of, interest on and any
Yield-Maintenance Amount payable with respect to this Note are to be made at the
main office of The Bank of New York in New York City or at such other place as
the holder hereof shall designate to the Company in writing, in lawful money of
the United States of America.

                  This Note is one of a series of Senior Notes (the "NOTES")
issued pursuant to a Master Shelf Agreement, dated as of September 20, 2002 (the
"AGREEMENT"), between the

<PAGE>

Company and Prudential Investment Management, Inc. and the Purchasers named
therein and is entitled to the benefits thereof. As provided in the Agreement,
this Note is subject to prepayment, in whole or from time to time in part on the
terms specified in the Agreement. Capitalized terms used and not otherwise
defined herein have the meanings specified in the Agreement.

                  This Note is a registered Note and, as provided in the
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company shall not be affected by any notice to
the contrary.

                  [The Company agrees to make required prepayments of principal
on the dates and in the amounts specified in the Agreement.] [This Note is
[also] subject to optional prepayment, in whole or from time to time in part, on
the terms specified in the Agreement.]

                  In case an Event of Default, as defined in the Agreement,
shall occur and be continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner and with the effect provided in
the Agreement.

                  The Company and any and all endorsers, guarantors and sureties
severally waive grace, demand, presentment for payment, notice of dishonor or
default, notice of intent to accelerate, notice of acceleration (to the extent
set forth in the Agreement), protest and diligence in collecting.

                  Should any indebtedness represented by this Note be collected
at law or in equity, or in bankruptcy or other proceedings, or should this Note
be placed in the hands of attorneys for collection, the Company agrees to pay,
in addition to the principal, premium, if any, and interest due and payable
hereon, all costs of collecting or attempting to collect this Note, including
reasonable attorneys' fees and expenses (including those incurred in connection
with any appeal).

                                     A-1-2

<PAGE>

                  THIS NOTE IS INTENDED TO BE PERFORMED IN THE STATE OF NEW YORK
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAW OF SUCH STATE.

                                         SCS TRANSPORTATION, INC.

                                         By:  ______________________________
                                                  [Vice] President

                                         By:  ______________________________
                                                  Treasurer

                                     A-1-3

<PAGE>

                                                                     EXHIBIT A-2

                             [FORM OF SERIES A NOTE]

                            SCS TRANSPORTATION, INC.

               7.38% SENIOR NOTE, SERIES A, DUE DECEMBER 31, 2013

No. RA-____                                                       PPN:__________
ORIGINAL PRINCIPAL AMOUNT:
ORIGINAL ISSUE DATE:
INTEREST RATE:
INTEREST PAYMENT DATES:
FINAL MATURITY DATE:
PRINCIPAL INSTALLMENT DATES AND AMOUNTS:

                  FOR VALUE RECEIVED, the undersigned, SCS TRANSPORTATION, INC.
(the "COMPANY"), a corporation organized and existing under the laws of the
State of Delaware, hereby promises to pay to _________, or registered assigns,
the principal sum of ___________ DOLLARS, payable in installments on the
Principal Installment Dates and in the amounts specified above, and on the Final
Maturity Date specified above in an amount equal to the unpaid balance of the
principal hereof, with interest (computed on the basis of a 360-day year--30-day
month) (a) on the unpaid balance thereof from the date hereof at the Interest
Rate per annum specified above, payable on each Interest Payment Date specified
above and on the Final Maturity Date specified above, commencing with the
Interest Payment Date next succeeding the date hereof, until the principal
hereof shall have become due and payable, and (b) on the occurrence and during
the continuance of an Event of Default, at the Default Rate with respect to any
outstanding principal hereof, any overdue payment of interest and any overdue
payment of any Yield-Maintenance Amount, payable quarterly as aforesaid (or, at
the option of the registered holder hereof, on demand).

                  Payments of principal of, interest on and any
Yield-Maintenance Amount payable with respect to this Note are to be made at the
main office of The Bank of New York in New York City or at such other place as
the holder hereof shall designate to the Company in writing, in lawful money of
the United States of America.

                  This Note is one of a series of Senior Notes (the "NOTES")
issued pursuant to a Master Shelf Agreement, dated as of September 20, 2002 (the
"AGREEMENT"), between the Company and Prudential Investment Management, Inc. and
the Purchasers named therein and

<PAGE>

is entitled to the benefits thereof. As provided in the Agreement, this Note is
subject to prepayment, in whole or from time to time in part on the terms
specified in the Agreement. Capitalized terms used and not otherwise defined
herein have the meanings specified in the Agreement.

                  This Note is a registered Note and, as provided in the
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company shall not be affected by any notice to
the contrary.

                  The Company agrees to make required prepayments of principal
on the dates and in the amounts specified in the Agreement. This Note is also
subject to optional prepayment, in whole or from time to time in part, on the
terms specified in the Agreement.

                  In case an Event of Default, as defined in the Agreement,
shall occur and be continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner and with the effect provided in
the Agreement.

                  The Company and any and all endorsers, guarantors and sureties
severally waive grace, demand, presentment for payment, notice of dishonor or
default, notice of intent to accelerate, notice of acceleration (to the extent
set forth in the Agreement), protest and diligence in collecting.

                  Should any indebtedness represented by this Note be collected
at law or in equity, or in bankruptcy or other proceedings, or should this Note
be placed in the hands of attorneys for collection, the Company agrees to pay,
in addition to the principal, premium, if any, and interest due and payable
hereon, all costs of collecting or attempting to collect this Note, including
reasonable attorneys' fees and expenses (including those incurred in connection
with any appeal).

                                     A-2-2

<PAGE>

                  THIS NOTE IS INTENDED TO BE PERFORMED IN THE STATE OF NEW YORK
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAW OF SUCH STATE.

                                          SCS TRANSPORTATION, INC.

                                          By:  ______________________________
                                                   [Vice] President

                                          By:  ______________________________
                                                   Treasurer

                                     A-2-3

<PAGE>

                                                                       EXHIBIT B

                      [TO BE PLACED ON COMPANY LETTERHEAD]

                         [FORM OF REQUEST FOR PURCHASE]

                            SCS TRANSPORTATION, INC.

                  Reference is made to the Master Shelf Agreement (the
"AGREEMENT"), dated as of September 20, 2002, between SCS Transportation, Inc.
(the "COMPANY") and Prudential Investment Management, Inc. and the Purchasers
listed on the Purchaser Schedule attached thereto. All terms used herein that
are defined in the Agreement have the respective meanings specified in the
Agreement.

                  Pursuant to paragraph 2D of the Agreement, the Company hereby
makes the following Request for Purchase:

                  1.   Aggregate principal amount of
                          the Notes covered hereby
                          (the "NOTES")  ...................       $
                                                                    ----------

                  2.   Individual specifications of the Notes:

                                Principal
                  Final         Installment        Interest
Principal         Maturity      Dates and          Payment
Amount            Date          Amounts            Period(1)
---------         --------      -----------        ---------

                  3.   Use of proceeds of the Notes:

                  4.   Proposed day for the closing of the purchase and sale
                       of the Notes:

                  5.   The purchase price of the Notes is to be transferred to:

                                                            Name and
                  Name and Address          Number of       Telephone No.
                      of Bank               Account         of Bank Officer
                  ----------------          ---------       ---------------

--------------
         1 Specify quarterly or semi-annual.

<PAGE>

                  6.       The Company certifies (a) that the representations
                           and warranties contained in paragraph 8 of the
                           Agreement are true on and as of the date of this
                           Request for Purchase except to the extent of changes
                           caused by the transactions contemplated in the
                           Agreement and (b) that there exists on the date of
                           this Request for Purchase no Event of Default or
                           Default.

Dated:

                                           SCS TRANSPORTATION, INC.

                                           By:  ______________________________
                                                    Authorized Officer

                                      B-2

<PAGE>

                                                                       EXHIBIT C

                      [FORM OF CONFIRMATION OF ACCEPTANCE]

                            SCS TRANSPORTATION, INC.

                  Reference is made to the Master Shelf Agreement (the
"AGREEMENT"), dated as of September 20, 2002, between SCS Transportation, Inc.
(the "COMPANY") and Prudential Investment Management, Inc. and the Purchasers
named in the Purchaser Schedule attached thereto. All terms used herein that are
defined in the Agreement have the respective meanings specified in the
Agreement.

                  Each of the undersigned institutions which is named below as a
Purchaser of any Accepted Notes hereby confirms the representations as to such
Accepted Notes set forth in paragraph 9 of the Agreement, and agrees to be bound
by the provisions of paragraphs 2F and 2H of the Agreement relating to the
purchase and sale of such Accepted Notes.

                  Pursuant to paragraph 2F of the Agreement, an Acceptance with
respect to the following Accepted Notes is hereby confirmed:

I.   Aggregate principal amount $
                                 ------------

                  (A)   (a) Name of Purchaser:
                        (b) Principal amount:
                        (c) Final maturity date:
                        (d) Principal installment dates and amounts:
                        (e) Interest rate:
                        (f) Interest payment period:
                        [(g) Designated spread:]

                  (B)   (a) Name of Purchaser:
                        (b) Principal amount:
                        (c) Final maturity date:
                        (d) Principal installment dates and amounts:
                        (e) Interest rate:
                        (f) Interest payment period:
                        [(g) Designated spread:]

                 [(C),(D) ....: same information as to any other Purchaser

II.   Closing Day:

<PAGE>

III.   Facility Fee:

Dated:

                                        SCS TRANSPORTATION, INC.

                                        By:  ______________________________
                                               Title:

                                        PRUDENTIAL INVESTMENT
                                         MANAGEMENT, INC.

                                        By:  ______________________________
                                               Vice President

[Signature block for each other named Purchaser]

                                      C-2

<PAGE>

                                                                       EXHIBIT D

                     [FORM OF OPINION OF COMPANY'S COUNSEL]

                                [Date of Closing]

Prudential Investment Management, Inc.
The Prudential Insurance Company of America
Pruco Life Insurance Company
Reliastar Life Insurance Company
Southland Life Insurance Company
c/o Prudential Capital Group
Gateway Center Four
100 Mulberry Street
Newark, NJ 07102-4069

Dear Ladies and Gentlemen:

                  We are counsel for SCS Transportation, Inc., a Delaware
corporation (the "COMPANY"), Saia Motor Freight Line, Inc., a Louisiana
corporation ("SAIA") and Jevic Transportation, Inc., a New Jersey corporation
("JEVIC") (Saia and Jevic, collectively, the "GUARANTORS") in connection with
the Master Shelf Agreement (the "AGREEMENT"), dated as of September 18, 2002,
between the Company and Prudential Investment Management, Inc. and each
Purchaser named therein (collectively, "PRUDENTIAL AND THE PURCHASERS" or
"PRUDENTIAL AND/OR THE PURCHASERS"), pursuant to which the Company has issued to
the Purchasers today ___% Senior Notes, Series __, due ____, dated
_______________, 2002, of the Company in the aggregate principal amount of
$____________ (the "NOTES") and pursuant to which the Guarantors have executed
and delivered to you the Guaranty Agreement ("GUARANTY") dated as of September
30, 2002. All terms used herein that are defined in the Agreement have the same
meaning herein as set forth in the Agreement. When used herein in relation to
the Company, the term "material" refers to the Company and its Subsidiaries
considered together on a consolidated basis. This letter is being delivered to
you in satisfaction of the condition set forth in paragraph 3A(v) of the
Agreement and with the understanding that you are purchasing the Notes in
reliance on the opinions expressed herein.

                  In connection herewith, we have examined such certificates of
public officials, certificates of officers of the Company, Saia and Jevic and
copies certified to our satisfaction of corporate documents and records of the
Company, Saia and Jevic and of other papers, and have made such other
investigations, as we have deemed relevant and necessary as a basis for our
opinion hereinafter set forth. We have relied upon such certificates of public
officials and

<PAGE>

of officers of the Company, Saia and Jevic with respect to the accuracy of
material factual matters contained therein which were not independently
established. With respect to the opinion expressed in paragraph seven below, we
have also relied upon the representation made by each Purchaser, in the first
sentence of paragraph 9A of the Agreement.

                  In reaching the opinions set forth in paragraphs two, four and
six of this letter, we have assumed, and to our actual knowledge there are no
facts inconsistent with, the following:

                  a. Each of the parties to the Agreement, other than the
         Company, have duly and validly executed and delivered the Agreement and
         each such instrument, document and agreement (or duplicate original
         counterparts thereof) to be executed in connection with the loan
         transactions (collectively, the "LOAN") described in the Agreement, and
         the obligations of each such party (other than the Company, Saia and
         Jevic) set forth in the Agreement and in such instruments, documents
         and agreements are its legal, valid and binding obligations,
         enforceable against such party in accordance with their respective
         terms;

                  b. Each person executing the Agreement, other than on behalf
         of the Company, Saia and Jevic, whether individually or on behalf of an
         entity, is duly authorized to do so;

                  c. Each natural person executing any of the Agreement, Notes
         and Guaranty is legally competent to do so;

                  d. All signatures on the Agreement, Notes and Guaranty will be
         genuine;

                  e. The Agreement, Notes, Guaranty and all documents submitted
         to us as originals are authentic;

                  f. The Agreement, Notes, Guaranty and all documents submitted
         to us as certified or photostatic copies conform to the original
         document and all public records reviewed are accurate and complete;

                  g. The execution, delivery and performance of the Agreement
         and the purchase of the Notes by Prudential and the Purchasers:

                           (i) have been duly authorized by all necessary
                  corporate or other appropriate action on the part of
                  Prudential and the Purchasers; and

                           (ii) do not contravene or conflict with any term or
                  provision of the articles of incorporation, by-laws or other
                  governing documents of Prudential and the Purchasers;

                                      D-2

<PAGE>

                  h. The terms and conditions of the Loan as reflected in the
         Agreement, Notes and Guaranty have not been amended, modified or
         supplemented, directly or indirectly, by any other agreement or
         understanding of the parties or waiver of any of the material
         provisions of the Agreement, Notes and Guaranty, that would define,
         supplement or qualify the terms of the Agreement, Notes and Guaranty;

                  i. Prudential and the Purchasers and their successors and
         assigns will: (i) act in good faith and in a commercially reasonable
         manner in the exercise of any rights or enforcement of any remedies
         under the Agreement, Notes and Guaranty; (ii) not engage in any conduct
         in the exercise of such rights or enforcement of such remedies that
         would constitute anything other than fair dealing; and (iii) comply
         with all requirements of applicable procedural and substantive law in
         exercising any rights or enforcing any remedies under the Agreement,
         Notes and Guaranty;

                  j. There has not been any mutual mistake of fact or
         misunderstanding, fraud, duress or undue influence; and

                  k. The Guaranty has been duly issued for value.

                  Based on the foregoing, it is our opinion that:

                  1. The Company is a corporation duly organized and validly
         existing in good standing under the laws of the State of Delaware.

                  2. The Agreement and the Notes have been duly authorized by
         all requisite corporate action and duly executed and delivered by
         authorized officers of the Company. If Missouri law were to apply to
         the Agreement and the Notes, the Agreement and the Notes would be valid
         obligations of the Company, legally binding upon and enforceable
         against the Company in accordance with their respective terms.

                  3. Based solely upon the Certificate of Good Standing issued
         by the Office of the Louisiana Secretary of State and dated as of
         September ___, 2002 ("SAIA CERTIFICATE OF GOOD STANDING"), Saia is a
         corporation duly organized and validly existing in good standing under
         the laws of the State of Louisiana.

                  4. The execution of the Guaranty by Saia has been duly
         authorized by all requisite corporate action and duly executed and
         delivered by authorized officers of Saia. If Missouri law were to apply
         to the Guaranty, the Guaranty would be the legally valid, binding and
         enforceable obligation of Saia in accordance with its terms.

                                      D-3

<PAGE>

                  5. Based solely upon the Certificate of Good Standing issued
         by the Office of the New Jersey Secretary of State and dated September
         ____, 2002 ("JEVIC CERTIFICATE OF GOOD STANDING"), Jevic is a
         corporation duly organized and validly existing in good standing under
         the laws of the State of New Jersey.

                  6. The execution of the Guaranty by Jevic has been duly
         authorized by all requisite corporate action and duly executed and
         delivered by authorized officers of Jevic. If Missouri law were to
         apply to the Guaranty, the Guaranty would be the legally valid, binding
         and enforceable obligation of Jevic in accordance with its terms.

                  7. The offer, issuance, sale and delivery of the Notes by the
         Company under the circumstances contemplated by the Agreement
         constitute transactions exempt from the registration requirements of
         the Securities Act of 1933, as amended, and do not under existing law
         require the registration of the Notes under the Securities Act of 1933,
         as amended, or the qualification of an indenture in respect thereof
         under the Trust Indenture Act of 1939, as amended.

                  8. The extension, arranging and obtaining of the credit
         represented by the Notes does not result in any violation of
         Regulations T, U or X of the Board of Governors of the Federal Reserve
         System. In providing the opinion in the immediately preceding sentence,
         we have relied on factual matters set forth in the Officer's
         Certificate attached hereto as Exhibit A.

                  9. The execution and delivery by the Company of the Agreement
         and Notes, the offering, issuance and sale of the Notes and the
         performance by the Company of its obligations thereunder do not violate
         or result in a breach or default under any existing obligation of the
         Company under any agreement listed as a material contract under Exhibit
         10 of the Form 10 filed by the Company with the Securities and Exchange
         Commission on July 19, 2002 (as amended on September 6, 2002), or any
         agreement listed on Schedule 8G to the Agreement to which the Company
         is a party or by which the Company is bound or to which any of the
         material properties or assets of the Company is subject, nor does such
         action result in any violation by the Company of the provisions of the
         Certificate of Incorporation or By-Laws of the Company, any provision
         of applicable law, or any order, writ, judgment or decree known to us
         of any court or governmental agency or body that names the Company or
         is specifically directed to the Company or any of its material
         properties or assets.

                  10. No consent, approval, authorization or other action by,
         and no notice to or filing with, any court, governmental agency or
         regulatory body is required for the due execution, delivery and
         performance by the Company of its obligations under the Agreement and
         Notes (other than routine filings after the date hereof with the
         Securities and Exchange Commission and/or state Blue Sky authorities).

                                      D-4

<PAGE>

                  11. A court sitting in the State of Missouri will look to the
         conflict of law rules of the State of Missouri to determine which law
         governs. Under Missouri law the parties to a contract may agree that
         the contract will be governed by the law of a particular state so long
         as some element of the contract is properly referable to that state.
         Courts applying Missouri law have not enforced agreements that the law
         of a certain state shall govern where the agreement is made to evade
         otherwise applicable law or where the agreement infringes upon a
         fundamental policy of the State of Missouri. In our opinion, a state or
         federal court in the State of Missouri applying Missouri law (a) should
         not find that the selection of New York law as the governing law under
         the Agreement, Notes and Guaranty constitutes an infringement of a
         fundamental policy of the State of Missouri, unless it is determined
         that such selection is, in fact, made to evade otherwise applicable law
         of the State of Missouri and therefore (b) should give effect to the
         provisions in the Agreement, Notes and Guaranty which select the laws
         of the State of New York as the governing law thereof. Provided,
         however, with respect to the creation, perfection, priority and
         enforcement of any judgment liens, the laws of Missouri will apply with
         respect to assets located within Missouri.

                  In addition to the assumptions set forth above, the opinions
set forth above are also subject to the following qualifications:

                  A. Enforceability of the Agreement, the Notes and the
Guaranty, each are subject to:

                  (1) the effect of bankruptcy, insolvency, reorganization,
         receivership, moratorium and other similar laws affecting the rights
         and remedies of creditors generally, including:

                      (a)  the United States Bankruptcy Code of 1978, as
                           amended, and thus comprehends, among others, matters
                           of turn-over, automatic stay, avoiding powers,
                           fraudulent transfer, preference, discharge,
                           conversion of a non-recourse obligation into a
                           recourse claim and limitations on ipso facto and
                           anti-assignment clauses;

                      (b)  all other federal and state bankruptcy, insolvency,
                           reorganization, receivership, moratorium, arrangement
                           and assignment for the benefit of creditors laws that
                           affect the rights and remedies of creditors
                           generally;

                      (c)  state fraudulent transfer and conveyance laws; and

                      (d)  judicially developed doctrines relevant to any of the
                           foregoing laws, such as substantive consolidation of
                           entities;

                                      D-5

<PAGE>

                  (2) the effect of general principles of equity, whether
         applied by a court of law or equity, including principles:

                      (a)  governing the availability of specific performance,
                           injunctive relief or other equitable remedies, which
                           generally place the award of such remedies, subject
                           to certain guidelines, in the discretion of the court
                           to which application for such relief is made;

                      (b)  affording equitable defenses (e.g., waiver, laches
                           and estoppel) against a party seeking enforcement;

                      (c)  requiring good faith and fair dealing in the
                           performance and enforcement of a contract by the
                           party seeking its enforcement;

                      (d)  requiring reasonableness in the performance and
                           enforcement of an agreement by the party seeking
                           enforcement of the contract;

                      (e)  requiring consideration of the materiality of a
                           breach and the consequences of the breach to the
                           party seeking enforcement;

                      (f)  requiring consideration of the impracticability or
                           impossibility of performance at the time of attempted
                           enforcement; and

                      (g)  affording defenses based upon the unconscionability
                           of the enforcing party's conduct after the parties
                           have entered into the contract.

                  (3) the effect of generally applicable rules of law that:

                      (a)  limit or affect the enforcement of provisions of a
                           contract that purport to require waiver of the
                           obligations of good faith, fair dealing, diligence
                           and reasonableness;

                      (b)  provide that forum selection clauses in contracts are
                           not necessarily binding on the court(s) in the forum
                           selected;

                      (c)  limit the availability of a remedy under certain
                           circumstances where another remedy has been elected;

                      (d)  limit the right of a creditor to use force or cause a
                           breach of the peace in enforcing rights;

                      (e)  limit the enforceability of provisions releasing,
                           exculpating or exempting a party from, or requiring
                           indemnification of a party

                                      D-6

<PAGE>

                           for, liability for its own action or inaction, to the
                           extent public policy limits the enforceability of
                           such indemnification or the action or inaction
                           involves gross negligence, recklessness, willful
                           misconduct or unlawful conduct;

                      (f)  may, where less than all of a contract may be
                           unenforceable, limit the enforceability of the
                           balance of the contract to circumstances in which the
                           unenforceable portion is not an essential part of the
                           agreed exchange;

                      (g)  govern and afford judicial discretion regarding the
                           determination of damages and entitlement to
                           attorneys' fees and other costs; and

                      (h)  may permit a party who has materially failed to
                           render or offer performance required by the contract
                           to cure that failure unless (A) permitting a cure
                           would unreasonably hinder the aggrieved party from
                           making substitute arrangements for performance, or
                           (B) it was important in the circumstances to the
                           aggrieved party that performance occur by the date
                           stated in the contract.

                  B. Except as otherwise specifically set forth in this opinion,
         we are expressing no opinion as to the validity or accuracy of any
         warranty or representation made in connection with any of the
         Agreement, Notes or Guaranty.

                  C. For purposes of the opinions expressed herein, "applicable
         law" shall mean all applicable constitutional, legislative, judicial
         and administrative provisions, statutes, regulations, decisions,
         rulings and other laws, whether federal, state or local.

                  We express no opinion as to the enforceability of any clause
requiring additional payments upon, or otherwise limiting, prepayment or
termination to the extent construed as a penalty.

                  We express no opinion on any other matters pertaining to the
transactions contemplated by or related to Agreement, Notes and Guaranty, except
as hereinabove specifically provided, and no further or other opinion shall be
implied. The matters set forth herein or upon which this opinion is based are as
of the date hereof, and we hereby undertake no, and disclaim any, obligation to
advise Prudential and/or the Purchasers of any change in any matters set forth
herein or any matters upon which this opinion is based.

                  This opinion is given with respect to the laws of the State of
Missouri and the laws of the United States of America, and we do not purport to
be experts on, or to express any opinion concerning, any laws other than the
laws of the State of Missouri and the laws of the United States of America, and,
with respect to opinion numbers one and two above concerning the Company, our
review of the Delaware General Corporation Law. With respect

                                      D-7

<PAGE>
to the opinion expressed in the first sentence of paragraph four above, we have
assumed the laws of the State of Louisiana are substantially similar to the laws
of Missouri. With respect to the opinion expressed in the first sentenced of
paragraph six above, we have assumed the laws of the State of New Jersey are
substantially similar to the laws of Missouri. The opinions above are subject to
this limitation in all respects.

                  This opinion is rendered solely to the addressees hereof, to
be relied upon solely in connection with the transactions contemplated by the
Agreement. This opinion may only be released to other persons to the extent and
under the circumstances that "Confidential Information" may be released under
the terms of paragraph 11S of the Agreement. In any event, this opinion may not
be relied upon by any person (other than the addressees hereof and subsequent
holders of the Notes) or for any other purpose without our prior written
consent.

                                                       Very truly yours,

                                      D-8

<PAGE>
                                                                       EXHIBIT E

                     [FORM OF WRITTEN FUNDING INSTRUCTIONS]

                             [Company's Letterhead]

<TABLE>
<S>                                                         <C>
The Prudential Insurance Company of America                 Pruco Life Insurance Company of New Jersey
c/o Prudential Capital Group                                c/o Prudential Capital Group
2200 Ross Avenue, Suite 4200E                               2200 Ross Avenue, Suite 4200E
Dallas, TX 75201                                            Dallas, TX 75201

ReliaStar Life Insurance Company                            Southland Life Insurance Company
c/o Prudential Private Placement Investors, L.P.            c/o Prudential Private Placement Investors, L.P.
Four Gateway Center                                         Four Gateway Center
100 Mulberry Street                                         100 Mulberry Street
Newark, NJ 07102                                            Newark, NJ 07102
</TABLE>

                         Re: FUNDS DELIVERY INSTRUCTION

Ladies and Gentlemen:

         As contemplated by paragraph 2 of the Master Shelf Agreement, dated as
of September 20, 2002, among Prudential Investment Management, Inc. and the
Purchasers named therein, the undersigned hereby instructs you to deliver, on
the date of closing, the proceeds of the Notes in the manner required by
paragraph 2 to the undersigned's account identified below:

      Account Name:        SCS Transportation, Inc. Operating Account
      Account No.:         209908769
      Bank:                Bank of Oklahoma, N.A.
      Bank City & State:   Tulsa, OK
      Bank ABA No.:        103900036
      Reference:           Prudential

         This instruction has been executed and delivered by an authorized
representative of the undersigned.

                                  Very truly yours,

                                  SCS TRANSPORTATION, INC.

                                  By:  ______________________________
                                       Title:
<PAGE>
                                                                       EXHIBIT F

                     [FORM OF SUBSIDIARY GUARANTY AGREEMENT]

                               GUARANTY AGREEMENT

         THIS GUARANTY AGREEMENT, dated as of September 20, 2002 (this "GUARANTY
AGREEMENT"), is made by each of the undersigned (each, a "GUARANTOR" and,
together with each of the other signatories hereto and any other entities from
time to time parties hereto pursuant to Section 12, the "GUARANTORS") in favor
of the holders from time to time of the Notes issued pursuant to the Shelf
Agreement described below.

                                    RECITALS

         A. SCS TRANSPORTATION, INC., a Delaware corporation (the "COMPANY"),
PRUDENTIAL INVESTMENT MANAGEMENT, INC. ("PRUDENTIAL"), THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA ("PICA"), PRUCO LIFE INSURANCE COMPANY ("PRUCO"), RELIASTAR
LIFE INSURANCE COMPANY ("RELIASTAR") and SOUTHLAND LIFE INSURANCE COMPANY
("SOUTHLAND") are entering into a Master Shelf Agreement, dated as of even date
herewith (as amended, supplemented and otherwise modified from time to time, the
"SHELF AGREEMENT"; capitalized terms used and not otherwise defined herein have
the definitions specified in the Shelf Agreement), pursuant to which the Company
will authorize the issuance of its senior notes with interest rates and
maturities as described therein in an aggregate principal amount of up to
$125,000,000 (collectively the "NOTES") and

         B. The Company, directly or indirectly, owns all of the issued and
outstanding Voting Stock and other equity securities of each Guarantor.

         C. It is a condition precedent to the effectiveness of the Shelf
Agreement that this Guaranty Agreement shall have been executed and delivered by
each Guarantor and shall be in full force and effect.

         D. Each Guarantor has determined that such Guarantor's execution,
delivery and performance of this Guaranty Agreement may reasonably be expected
to provide substantial benefit to such Guarantor, directly or indirectly, and to
be in the best interests of such Guarantor.

         NOW THEREFORE, in order to induce, and in consideration of, the
execution and delivery of the Shelf Agreement and the purchase of the Notes by
PICA, Pruco, Reliastar and Southland and any other Purchasers, each Guarantor
hereby jointly and severally covenants

<PAGE>
and agrees with, and represents and warrants to, Prudential, PICA, Pruco,
Reliastar and Southland and any other Purchasers and each subsequent holder of
the Notes as follows:

1.       THE GUARANTY. Each Guarantor hereby irrevocably and unconditionally
         guarantees to each holder from time to time of any of the Notes, the
         due and punctual payment in full of (i) the principal of,
         Yield-Maintenance Amount, if any, and interest on, and any other
         amounts due under, the Notes when and as the same shall become due and
         payable (whether at stated maturity or by required or optional
         prepayment or by acceleration or otherwise) and (ii) any other sums
         which may become due under the terms and provisions of the Shelf
         Agreement and the Notes (all such obligations described in clauses (i)
         and (ii) above are herein called the "GUARANTEED OBLIGATIONS"). The
         guaranty in the preceding sentence is an absolute, present and
         continuing guaranty of payment and not of collectibility and is in no
         way conditional or contingent upon any attempt to collect from the
         Company or any other guarantor of the Notes or upon any other action,
         occurrence or circumstance whatsoever. In the event that the Company
         shall fail so to pay any of such Guaranteed Obligations, each Guarantor
         agrees to pay the same when due to the holders of the Notes entitled
         thereto, without demand, presentment, protest or notice of any kind, in
         lawful money of the United States of America, at the place for payment
         specified in the Notes and the Shelf Agreement. Each default in payment
         of principal of, Yield-Maintenance Amount, if any, or interest on any
         Note shall give rise to a separate cause of action hereunder and
         separate suits may be brought hereunder as each cause of action arises.
         Each Guarantor hereby agrees that the Notes issued in connection with
         the Shelf Agreement may make reference to this guaranty.

         Each Guarantor hereby agrees to pay and to indemnify and save each
         holder of the Notes harmless from and against any damage, loss, cost or
         expense (including attorneys' fees) which such holder may incur or be
         subject to as a consequence, direct or indirect, of (i) any breach by
         such Guarantor or by the Company of any warranty, covenant, term or
         condition in, or the occurrence of any default under, this Guaranty
         Agreement, the Notes or the Shelf Agreement, together with all expenses
         resulting from the compromise or defense of any claims or liabilities
         arising as a result of any such breach or default, and (ii) any legal
         action commenced to challenge the validity of this Guaranty Agreement,
         the Notes or the Shelf Agreement.

         Notwithstanding the foregoing or any other provisions of this Guaranty
         Agreement, it is agreed and understood that no Guarantor shall be
         required to pay hereunder at any time more than the Maximum Guaranteed
         Amount determined as of such time with regard to such Guarantor. Each
         Guarantor agrees that the Guaranteed Obligations may at any time exceed
         the sum of the Maximum Guaranteed Amount plus the aggregate maximum
         amount of all obligations of all other Guarantors, without affecting or
         impairing the obligation of such Guarantor. "MAXIMUM GUARANTEED AMOUNT"
         means as of the date of determination with respect to a Guarantor, the
         lesser of (a) the amount of the

                                      F-2
<PAGE>
         Guaranteed Obligations outstanding on such date and (b) the maximum
         amount that would not render such Guarantor's liability under this
         Guaranty Agreement subject to avoidance under Section 548 of the United
         States Bankruptcy Code (or any successor provision) or any comparable
         provision of applicable state law.

2.       OBLIGATIONS ABSOLUTE. The obligations of each Guarantor hereunder shall
         be primary, absolute, irrevocable and unconditional, irrespective of
         the validity, regularity or enforceability of the Notes or of the Shelf
         Agreement, shall not be subject to any counterclaim, setoff, deduction
         or defense based upon any claim such Guarantor may have against the
         Company or any holder of the Notes or otherwise, and shall remain in
         full force and effect without regard to, and shall not be released,
         discharged or in any way affected by, any circumstance or condition
         whatsoever (whether or not such Guarantor shall have any knowledge or
         notice thereof), including, without limitation: (a) any amendment,
         modification of or supplement to the Shelf Agreement, the Notes or any
         other instrument referred to therein (except that the obligations of
         each Guarantor hereunder shall apply to the Shelf Agreement, the Notes
         or such other instruments as so amended, modified or supplemented) or
         any assignment or transfer of any thereof or of any interest therein,
         or any furnishing, acceptance or release of any security for the Notes,
         (b) any waiver, consent, extension, indulgence or other action or
         inaction under or in respect of the Notes or in respect of the Shelf
         Agreement; (c) any bankruptcy, insolvency, readjustment, composition,
         liquidation or similar proceeding with respect to the Company or its
         property; (d) any merger, amalgamation or consolidation of any
         Guarantor or of the Company into or with any other corporation or any
         sale, lease or transfer of any or all of the assets of any Guarantor or
         of the Company to any person; (e) any failure on the part of the
         Company for any reason to comply with or perform any of the terms of
         any other agreement with any Guarantor; or (f) any other circumstance
         which might otherwise constitute a legal or equitable discharge or
         defense of a guarantor. Each Guarantor covenants that its obligations
         hereunder will not be discharged except by indefeasible payment in full
         of all of the Guaranteed Obligations.

3.       WAIVER. Each Guarantor unconditionally waives to the fullest extent
         permitted by law, (a) notice of acceptance hereof, of any action taken
         or omitted in reliance hereon and of any defaults by the Company in the
         payment of any amounts due under the Notes or the Shelf Agreement, and
         of any of the matters referred to in Section 2 hereof, (b) all notices
         which may be required by statute, rule of law or otherwise to preserve
         any of the rights of each holder from time to time of the Notes against
         such Guarantor, including, without limitation, presentment to or demand
         for payment from the Company or such Guarantor with respect to any
         Note, notice to the Company or to such Guarantor of default or protest
         for nonpayment or dishonor and the filing of claims with a court in the
         event of the bankruptcy of the Company, (c) any right to the
         enforcement, assertion or exercise by any holder of the Notes of any
         right, power or remedy conferred in this Guaranty Agreement, the Shelf
         Agreement or the Notes, (d) any requirement or diligence on the part of
         any holder of the Notes and (e) any other act or

                                       F-3
<PAGE>
         omission or thing or delay to do any other act or thing which might in
         any manner or to any extent vary the risk of such Guarantor or which
         might otherwise operate as a discharge of such Guarantor.

4.       OBLIGATIONS UNIMPAIRED. Each Guarantor authorizes the holders of the
         Notes, without notice or demand to such Guarantor and without affecting
         its obligations hereunder, from time to time (a) to renew, compromise,
         extend, accelerate or otherwise change the time for payment of, or
         otherwise change the terms of, all or any part of the Notes, the Shelf
         Agreement or any other instrument referred to therein, (b) to take and
         hold security for the payment of the Notes, for the performance of this
         Guaranty Agreement or otherwise for the indebtedness guaranteed hereby
         and to exchange, enforce, waive and release any such security, (c) to
         apply any such security and to direct the order or manner of sale
         thereof as the holders of the Notes in their sole discretion may
         determine; (d) to obtain additional or substitute endorsers or
         guarantors; (e) to exercise or refrain from exercising any rights
         against the Company and others; and (f) to apply any sums, by
         whomsoever paid or however realized, to the payment of the principal
         of, Yield-Maintenance Amount, if any, and interest on the Notes and any
         other Guaranteed Obligation hereunder. Each Guarantor waives any right
         to require the holders of the Notes to proceed against any additional
         or substitute endorsers or guarantors or to pursue or exhaust any
         security provided by the Company, such Guarantor or any other person or
         to pursue any other remedy available to such holders.

5.       SUBROGATION. Each Guarantor will not exercise any rights which it may
         have acquired by way of subrogation under this Guaranty Agreement, by
         any payment made hereunder or otherwise, or accept any payment on
         account of such subrogation rights, or any rights of reimbursement,
         contribution or indemnity or any rights or recourse to any security for
         the Notes or this Guaranty Agreement unless and until all of the
         obligations, undertakings or conditions to be performed or observed by
         the Company pursuant to the Notes and the Shelf Agreement at the time
         of such Guarantor's exercise of any such right shall have been
         performed, observed or indefeasibly paid in full.

6.       REINSTATEMENT OF GUARANTY. This Guaranty Agreement shall continue to be
         effective, or be reinstated, as the case may be, if and to the extent
         at any time payment, in whole or in part, of any of the sums due to any
         holder of the Notes for principal, Yield-Maintenance Amount, if any, or
         interest on the Notes or any of the other Guaranteed Obligations is
         rescinded or must otherwise be restored or returned by such holder upon
         the insolvency, bankruptcy, dissolution, liquidation or reorganization
         of the Company, or upon or as a result of the appointment of a
         custodian, receiver, trustee or other officer with similar powers with
         respect to the Company or any substantial part of its property, or
         otherwise, all as though such payments had not been made. If an event
         permitting the acceleration of the maturity of the principal amount of
         the Notes shall at any time have occurred and be continuing and such
         acceleration shall at such time be prevented or the right of any holder
         of a Note to receive any payment

                                      F-4
<PAGE>
         under any Note shall at such time be delayed or otherwise affected by
         reason of the pendency against the Company of a case or proceeding
         under a bankruptcy or insolvency law, each Guarantor agrees that, for
         purposes of this Guaranty Agreement and its obligations hereunder, the
         maturity of such principal amount shall be deemed to have been
         accelerated with the same effect as if the holders of the Notes had
         accelerated the same in accordance with the terms of the Shelf
         Agreement, and such Guarantor shall forthwith pay such accelerated
         principal amount, accrued interest and Yield-Maintenance Amount, if
         any, thereon and any other amounts guaranteed hereunder.

7.       RANK OF GUARANTY. Each Guarantor agrees that its obligations under this
         Guaranty Agreement shall rank at least pari passu with all other
         unsecured senior obligations of such Guarantor now or hereafter
         existing.

8.       REPRESENTATIONS AND WARRANTIES.

         Each Guarantor represents and warrants as follows:

                  (a) Incorporation, Good Standing and Location. Such Guarantor
         is (i) a corporation duly incorporated, validly existing and in good
         standing under the laws of the jurisdiction of its organization; (ii)
         duly qualified and authorized to do business and in good standing in
         every other jurisdiction where the nature of its business requires such
         qualification; and (iii) has all requisite limited liability,
         partnership or corporate (or equivalent) power and authority, and all
         governmental licenses and permits, to own and operate its properties
         and to carry on its businesses as presently conducted. Such Guarantor
         has the requisite limited liability, partnership or corporate (or
         equivalent) power to enter into and perform its obligations under this
         Guaranty Agreement.

                  (b) Approval and Enforceability of Guaranty Agreement. The
         execution, delivery and performance of this Guaranty Agreement have
         been duly authorized by all necessary limited liability, partnership or
         corporate (or equivalent) action on the part of such Guarantor. This
         Guaranty Agreement has been duly and validly executed and delivered and
         constitutes the legal, valid and binding obligation of such Guarantor,
         enforceable against it in accordance with its terms, subject to
         applicable bankruptcy, insolvency, moratorium, reorganization,
         receivership and similar laws affecting the rights and remedies of
         creditors generally.

9.       NOTICES. Unless otherwise specifically provided herein, all notices,
         consents, directions, approvals, instructions, requests and other
         communications required or permitted by the terms hereof shall be in
         writing, and any such communication shall become effective when
         received, addressed in the following manner: (a) if to a Guarantor, to
         the address set forth on the signature page hereof or on any Guarantor
         Supplement, as applicable; or (b) if to any holder of a Note, to the
         respective addresses set forth in the Purchaser Schedule to the Shelf
         Agreement; provided, however, that

                                      F-5
<PAGE>
         any such addressee may change its address for communications by notice
         given as aforesaid to the other parties hereto.

10.      CONSTRUCTION. The section and subsection headings in this Guaranty
         Agreement are for convenience of reference only and shall neither be
         deemed to be a part of this Guaranty Agreement nor modify, define,
         expand or limit any of the terms or provisions hereof. All references
         herein to numbered sections, unless otherwise indicated, are to
         sections of this Guaranty Agreement. Words and definitions in the
         singular shall be read and construed as though in the plural and vice
         versa, and words in the masculine, neuter or feminine gender shall be
         read and construed as though in either of the other genders where the
         context so requires.

11.      SEVERABILITY. If any provision of this Guaranty Agreement, or the
         application thereof to any person or circumstances, shall, for any
         reason or to any extent, be invalid or unenforceable, such invalidity
         or unenforceability shall not in any manner affect or render invalid or
         unenforceable the remainder of this Guaranty Agreement, and the
         application of that provision to other persons or circumstances shall
         not be affected but, rather, shall be enforced to the extent permitted
         by applicable law.

12.      SUCCESSORS; JOINDER. The terms and provisions of this Guaranty
         Agreement shall be binding upon and inure to the benefit of the
         Guarantors and the holders of the Notes from time to time and their
         respective permitted successors, transferees and assigns. It is agreed
         and understood that each Subsidiary of the Company or of any Guarantor
         is required by the terms of the Shelf Agreement to become a Guarantor
         hereunder, and shall become a Guarantor hereunder by executing a
         Guarantor Supplement substantially in the form of Annex A attached
         hereto and delivering the same to the holders of the Notes. Any such
         Person shall thereafter be a "GUARANTOR" for all purposes under this
         Guaranty Agreement.

13.      ENTIRE AGREEMENT; AMENDMENT. This Guaranty Agreement expresses the
         entire understanding of the subject matter hereof; and all other
         understandings, written or oral, are hereby merged herein and
         superseded. No amendment of or supplement to this Guaranty Agreement,
         or waiver or modification of, or consent under, the terms hereof shall
         be effective unless in writing and signed by the party to be bound
         thereby.

14.      TERM OF GUARANTY AGREEMENT. This Guaranty Agreement and all guarantees,
         covenants and agreements of each Guarantor contained herein shall
         continue in full force and effect and shall not be discharged until
         such time as all of the Guaranteed Obligations shall be paid or
         otherwise discharged in full.

15.      SURVIVAL. All warranties, representations and covenants made by each
         Guarantor herein or in any certificate or other instrument delivered by
         it or on its behalf under this Guaranty Agreement shall be considered
         to have been relied upon by the holders of the

                                       F-6
<PAGE>
         Notes and shall survive the execution and delivery of this Guaranty
         Agreement, regardless of any investigation made by the holder of the
         Notes or on their behalf.

16.      FURTHER ASSURANCES. Each Guarantor hereby agrees to execute and deliver
         all such instruments and take all such action as the holders of the
         Notes may from time to time reasonably request in order to effectuate
         fully the purposes of this Guaranty Agreement.

17.      GOVERNING LAW. This Guaranty Agreement has been executed and delivered
         in the State of New York and shall be governed by, construed and
         enforced in all respects in accordance with the laws of the State of
         New York applicable to contracts made and to be performed entirely
         therein, without regard to principles of conflicts of laws.

18.      SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.

         (a) Each Guarantor hereby irrevocably submits itself to the
         jurisdiction of the Supreme Court of the State of New York, New York
         County, of the United States of America and to the jurisdiction of the
         United States District Court for the Southern District of New York, for
         the purpose of any suit, action or other proceeding arising out of, or
         relating to, this Guaranty Agreement or the subject matter hereof, and
         hereby waives, and agrees not to assert, by way of motion, as a defense
         or otherwise, in any such suit, action or proceedings, (i) any claim
         that it is not personally subject to the jurisdiction of the
         above-named courts for any reason whatsoever, that such suit, action or
         proceeding is brought in an inconvenient forum or that the venue of
         such suit, action or proceeding is improper and (ii) any right which it
         may have to a trial by a jury. Each Guarantor hereby agrees that
         process may be served on Corporation Service Company, located at 80
         State Street, Albany, New York 12207. Any and all service of process
         and any other notice in any such action, suit or proceeding shall be
         effective against such parties if given by registered or certified
         mail, return receipt requested, or by any other means or mail which
         requires a signed receipt, postage prepaid, mailed to such parties has
         herein provided in Section 9. During the term of this Guaranty
         Agreement, in the event Corporation Service Company shall not be able
         to accept service of process as aforesaid and if such Guarantor shall
         not maintain an office in New York City, such Guarantor shall, promptly
         appoint and maintain an agent qualified to act as an agent for service
         of process with respect to all courts in and of New York City, and
         acceptable to the holders of the Notes, as such Guarantor's authorized
         agent to accept and acknowledge on such Guarantor's behalf service of
         any and all process which may be served in any such action, suit or
         proceeding.

                                      F-7
<PAGE>
                  Each Guarantor hereby agrees that the submission to
         jurisdiction referred to in this Section 18 shall not limit in any
         manner the rights of any of the holders of the Notes to take
         proceedings against such Guarantor in some other court of competent
         jurisdiction whether within or outside the United States.

         (b) EACH GUARANTOR AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL OF ANY
         CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY
         AGREEMENT, THE NOTES, ANY OTHER NOTE DOCUMENT OR ANY DEALINGS RELATING
         TO THE SUBJECT MATTER OF THE TRANSACTIONS CONTEMPLATED BY THE NOTE
         DOCUMENTS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING
         OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE
         TO THE SUBJECT MATTER OF THE TRANSACTIONS CONTEMPLATED BY THE NOTE
         DOCUMENTS, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS,
         BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
         EACH GUARANTOR ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
         TO THE PURCHASERS OF THE NOTES TO ENTER INTO THE SHELF AGREEMENT AND
         PURCHASE THE NOTES, AND THAT THE HOLDERS OF THE NOTES WILL CONTINUE TO
         RELY ON THE WAIVER IN ITS RELATED FUTURE DEALINGS WITH THE COMPANY AND
         THE GUARANTORS. EACH GUARANTOR FURTHER WARRANTS AND REPRESENTS THAT IT
         HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY
         AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
         WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS GUARANTY AGREEMENT
         MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

                                      F-8
<PAGE>
                  IN WITNESS WHEREOF, each Guarantor has caused this Guaranty
Agreement to be duly executed and delivered as of the date and year first above
written.

                                      SAIA MOTOR FREIGHT LINE, INC.

                                      By:  _____________________________
                                            Name:
                                            Title:

                                      Notice of address:

                                      Saia Motor Freight Line, Inc.
                                      One Main Plaza
                                      4435 Main Street
                                      Kansas City, MO  64111

                                      JEVIC TRANSPORTATION, INC.

                                      By:  _____________________________
                                             Name:
                                             Title:

                                      Notice of address:

                                      Jevic Transportation, Inc.
                                      One Main Plaza
                                      4435 Main Street
                                      Kansas City, MO  64111

                                       F-9
<PAGE>
                                                                      ANNEX A TO
                                                              GUARANTY AGREEMENT

                              GUARANTOR SUPPLEMENT

         THIS GUARANTOR SUPPLEMENT (this "GUARANTOR SUPPLEMENT"), dated as of
_______, ___ is made by ________, a __________ (the "ADDITIONAL GUARANTOR"), in
favor of the holders from time to time of the Notes issued pursuant to the Shelf
Agreement described below.

                                    RECITALS

         A. SCS TRANSPORTATION, INC., a Delaware corporation (the "COMPANY"),
PRUDENTIAL INVESTMENT MANAGEMENT, INC. and THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA, PRUCO LIFE INSURANCE COMPANY, RELIASTAR LIFE INSURANCE COMPANY and
SOUTHLAND LIFE INSURANCE COMPANY have entered into a Master Shelf Agreement,
dated as of September 20, 2002 (as amended, supplemented and otherwise modified
from time to time, the "SHELF AGREEMENT"), pursuant to which the Company has
authorized the issuance of its senior notes with interest rates and maturities
as described therein in an aggregate principal amount of up to $125,000,000
(collectively, the "NOTES").

         B. The Company is required pursuant to paragraph 5N of the Shelf
Agreement to cause the Additional Guarantor to deliver this Guarantor Supplement
in order to cause the Additional Guarantor to become a Guarantor under that
certain Guaranty Agreement dated as of September 20, 2002 executed by certain
subsidiaries of the Company (together with each entity that from time to time
becomes a party thereto by executing a Guarantor Supplement pursuant to Section
12 thereof, collectively, the "GUARANTORS") in favor of any holder from time to
time of the Notes (as the same may be amended, restated, supplemented or
otherwise modified from time to time, the "GUARANTY AGREEMENT").

         C. The Additional Guarantor has determined that the Additional
Guarantor's execution, delivery and performance of the Guaranty Agreement may
reasonably be expected to provide substantial benefit to the Additional
Guarantor, directly or indirectly, and to be in the best interests of the
Additional Guarantor.

         NOW THEREFORE, in order to induce, and in consideration of, the
maintenance of the Shelf Agreement and to enable the Company to comply with
paragraph 5N thereof, the Additional Guarantor hereby covenants, represents and
warrants to the holders of the Notes as follows:

                                    ANNEX A-1
<PAGE>
         The Additional Guarantor hereby becomes a Guarantor (as defined in the
Guaranty Agreement) for all purposes of the Guaranty Agreement. Without limiting
the foregoing, the Additional Guarantor hereby: (a) jointly and severally with
the other Guarantors under the Guaranty Agreement, guarantees to the holders of
the Notes the prompt payment in full when due (whether at stated maturity, by
acceleration or otherwise) of all Guaranteed Obligations (as defined in Section
1 of the Guaranty Agreement) in the same manner and to the same extent as is
provided in the Guaranty Agreement; (b) makes the representations and warranties
set forth in Section 8 of the Guaranty Agreement; (c) accepts and agrees to
perform and observe all of the covenants set forth therein; (d) waives the
rights set forth in Section 3 of the Guaranty Agreement; and (e) waives the
other rights, makes the representations and warranties, submits to jurisdiction,
waives jury trial and appoints an agent in the State of New York for service of
process, all as provided in the Guaranty Agreement.

         Notice of acceptance of this Guarantor Supplement and of the Guaranty
Agreement, as supplemented hereby, is hereby waived by the Additional Guarantor.

         The address for notices and other communications to be delivered to the
Additional Guarantor pursuant to Section 9 of the Guaranty Agreement is set
forth below.

         IN WITNESS WHEREOF, the Additional Guarantor has caused this Guarantor
Supplement to be duly executed and delivered as of the day and year first above
written.

                                         [NAME OF ADDITIONAL GUARANTOR]
                                         a [corporation]

                                         By:________________________________
                                         Name:
                                         Title:

Address for Notices:

_____________________________

_____________________________

_____________________________

                                    Annex A-2
<PAGE>
                                                                       EXHIBIT G

                           [FORM OF SHARING AGREEMENT]

                                SHARING AGREEMENT

                  This SHARING AGREEMENT, dated as of September 20, 2002 (this
"AGREEMENT"), is entered into by and between BANK OF OKLAHOMA, N.A. ("BOK"),
BANK ONE, N.A., U.S. BANK NATIONAL ASSOCIATION and HARRIS TRUST AND SAVINGS BANK
and the other lenders that become parties to the Bank Agreement referred to
below (herein sometimes called the "BANKS" and individually a "BANK") and BOK,
as Agent for the Banks (the "AGENT"), and PRUDENTIAL INVESTMENT MANAGEMENT, INC.
("PRUDENTIAL"), THE PRUDENTIAL INSURANCE COMPANY OF AMERICA ("PICA") and PRUCO
LIFE INSURANCE COMPANY ("PRUCO"), RELIASTAR LIFE INSURANCE COMPANY ("RELIASTAR")
and SOUTHLAND LIFE INSURANCE COMPANY ("SOUTHLAND") (Prudential, PICA, Pruco,
Reliastar, Southland and any other holder of any of the Notes being collectively
referred to herein as the "NOTEHOLDERS"; the Banks, the Agent and the
Noteholders being herein sometimes collectively called the "LENDERS" and
individually called a "LENDER").

                              W I T N E S S E T H:

                  WHEREAS, SCS TRANSPORTATION, INC., a Delaware corporation (the
"COMPANY"), the Banks and the Agent are entering into an Agented Revolving
Credit Agreement, dated as of September 20, 2002 (as amended from time to time,
the "BANK AGREEMENT"), pursuant to which, among other things, the Banks have
agreed to make certain loans to the Company and to issue letters of credit for
the benefit of the Company and the Company has agreed to repay such obligations
and has issued promissory notes to the Banks to evidence such agreement (the
"BANK NOTES");

                  WHEREAS, payment of certain obligations of the Company to the
Banks and the Agent arising under or in connection with the Bank Agreement from
time to time may be guaranteed by one or more Subsidiaries (as defined in the
Shelf Agreement referred to below) of the Company (herein sometimes collectively
called the "GUARANTORS" and individually called a "GUARANTOR") pursuant to one
or more guaranty agreements in favor of the Banks and the Agent (collectively
the "BANK GUARANTIES");

                  WHEREAS, under applicable law and the terms of the Bank
Guaranties, the Banks may be entitled to set-off, appropriate and apply any
deposits (general or special (except trust and escrow accounts), time or demand,
including without limitation indebtedness evidenced by certificates of deposit,
in each case whether matured or unmatured) and any other indebtedness at any
time held or owing by a Bank to or for the credit or account of the

<PAGE>
Guarantors, against and on account of liabilities of the Guarantors under the
Bank Guaranties, (collectively, the "GUARANTOR SET-OFF RIGHTS"; Guarantor
Set-Off Rights including any right to receive a lien on amounts previously
subject to the Guarantor Set-Off Rights, and to recover such amounts, after the
commencement of any action under a Bankruptcy Law (as defined in the Shelf
Agreement) are collectively referred to herein as the "SET-OFF RIGHTS");

                  WHEREAS, the Company is entering into a Master Shelf Agreement
dated as of September 20, 2002 with Prudential, PICA, Pruco, Reliastar and
Southland (the "SHELF AGREEMENT") for the issuance by the Company and the
purchase by Prudential, PICA, Pruco, Reliastar, Southland and other Purchasers
(as defined in the Shelf Agreement) of up to $125,000,000 of the Company's
Senior Notes (the "SHELF NOTES"); the Bank Agreement, the Bank Notes, the Shelf
Agreement and the Shelf Notes are collectively referred to herein as the
"COMPANY LOAN Documents");

                  WHEREAS, payment of the obligations of the Company to the
Noteholders arising under or in connection with the Shelf Agreement and the
Shelf Notes from time to time may be guaranteed by the Guarantors pursuant to
one or more guaranty agreements (as amended or modified and in effect from time
to time, the "NOTEHOLDER GUARANTIES"; the Bank Guaranties and the Noteholder
Guaranties being herein collectively called the "SUBJECT GUARANTIES" and
individually called a "SUBJECT GUARANTY");

                  WHEREAS, the obligations of the Company under the Shelf
Agreement and the Shelf Notes are intended to be pari passu with obligations of
the Company under the Bank Agreement and the Bank Notes including, without
limitation, as provided in paragraph 5J of the Shelf Agreement; and

                  WHEREAS, the Lenders have agreed, to enter into this Agreement
so as to evidence the agreement between the Lenders with respect to certain
payments that may be received by the Lenders under or in connection with the
Subject Guaranties or, after the occurrence and during the continuance of an
Event of Default thereunder, the Company Loan Documents;

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein contained, the Lenders hereby agree as follows:

                  1. If any Lender shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of Set-Off Rights or otherwise)
on account of its Subject Guaranty or Subject Guaranties or, after the
occurrence and during the continuance of an Event of Default thereunder, the
Company Loan Documents, in excess of its Proportionate Share of payments then or
thereafter obtained by all Lenders with respect to the Subject Guaranties or,
after the occurrence and during the continuance of an Event of Default
thereunder, the Company Loan Documents, such Lender shall purchase from the
other Lenders such participation(s) in the indebtedness of the Company held by
such other Lenders pursuant to the

                                      G-2
<PAGE>
Company Loan Documents as shall be necessary to cause such purchasing Lender to
share such payment or other recovery ratably, based on Proportionate Shares,
with such selling Lenders; provided, however, that if all or any portion of such
payment or other recovery is thereafter recovered from such purchasing Lender,
the purchase shall be rescinded, and each selling Lender shall repay to the
purchasing Lender the purchase price, to the ratable extent of such recovery in
proportion to the amount received by such selling Lender, together with an
amount equal to such selling Lender's ratable share (according to the proportion
of (x) the amount of such selling Lender's required repayment to the purchasing
Lender to (y) the total amount so recovered from the purchasing Lender) of any
interest or other amount paid or payable by the purchasing Lender in respect of
the total amount so recovered.

                  The term "PROPORTIONATE SHARE", as used herein, shall mean at
any time for each Lender a fraction (a) the numerator of which is the aggregate
amount of the Payment Obligations of the Company held by such Lender at such
time pursuant to the Company Loan Documents and (b) the denominator of which is
the aggregate amount of the Payment Obligations of the Company held by all
Lenders at such time pursuant to the Company Loan Documents. The term "PAYMENT
OBLIGATIONS", as used herein, shall mean all amounts required to be paid by the
Company under the Bank Agreement, the Bank Notes, the Shelf Agreement and the
Shelf Notes for principal, interest, letters of credit, fees or Premium. The
term "PREMIUM" shall mean any breakage costs with respect to loans or hedge
agreements under the Bank Agreement and the Bank Notes, and the
Yield-Maintenance Amount with respect to the Shelf Agreement and the Shelf
Notes.

                  2. Each of the Company and each Guarantor, by signing a copy
of this Agreement, agrees that each Lender so purchasing a participation from
another Lender pursuant to Section 1 hereof may, to the fullest extent permitted
by law, exercise all its rights of payment (including rights of setoff) with
respect to such participation as fully as if such Lender were the direct
creditor of the Company and such Guarantor in the amount of such participation.
The Company agrees to cause each Subsidiary that issues a Subject Guaranty to
execute a counterpart of the Consent to this Agreement.

                  3. If under any applicable bankruptcy, insolvency or other
similar law, any Lender possesses a secured claim, or receives a secured claim
in lieu of a setoff to which Section 1 or 2 hereof applies, such Lender shall
exercise its rights in respect of such secured claim in a manner consistent with
the rights of the other Lenders in accordance with Section 1 hereof.

                  4. This Agreement shall in all respects be a continuing,
absolute, unconditional and irrevocable agreement, and shall remain in full
force and effect until all obligations of the Company and the Guarantors to the
Lenders shall have been satisfied in full and all obligations of all Lenders to
the other Lenders hereunder shall have been satisfied in full. Each Lender
agrees that this Agreement shall continue to be effective or be reinstated, as
the case may be, if at any time any payment (in whole or in part) of any of the
obligations of

                                      G-3
<PAGE>
the Company or any of the Guarantors is rescinded or must otherwise be restored
by any Lender, upon the insolvency, bankruptcy or reorganization of the Company
or any of the Company and the Guarantors or otherwise, as though such payment
had not been made.

                  5. This Agreement shall be binding upon, and inure to the
benefit of and be enforceable by, the Lenders, each of their respective
successors, transferees and assigns and each person or entity that purchases a
participation in the indebtedness of the Company or any Guarantor held by a
Lender. Without limiting the generality of the foregoing sentence, any Lender
may assign or otherwise transfer (in whole or in part) to any other person or
entity the obligations of the Company or any of the Guarantors to such Lender
under any of the Company Loan Documents, and such other person or entity shall
thereupon become vested with all rights and benefits, and become subject to all
the obligations, in respect thereof granted to or imposed upon such Lender under
this Agreement.

                  6. None of the provisions of this Agreement shall inure to the
benefit of the Company, any of the Guarantors or, except as provided in Section
5 hereof, any other person other than the Lenders; consequently, the Company,
the Guarantors and any and all other persons shall not be entitled to rely upon,
or to raise as a defense, in any manner whatsoever, the provisions of this
Agreement or the failure of any Lender to comply with such provisions.

                  7. No amendment to or waiver of any provision of this
Agreement, nor consent to any departure by any Lender herefrom, shall in any
event be effective unless the same shall be in writing and signed by all the
Lenders, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

                  8. All notices and other communications provided to any Lender
under this Agreement shall be in writing or by facsimile and addressed,
delivered or transmitted to such Lender at its address or facsimile number set
forth below its signature hereto or at such other address or facsimile number as
may be designated by such Lender in a notice to the other Lenders. Any notice,
if mailed and properly addressed with postage prepaid or if properly addressed
and sent by pre-paid courier service, shall be deemed given when received; any
notice, if transmitted by facsimile, shall be deemed given when transmitted if
actually received, and the burden of proving receipt shall be on the
transmitting Lender.

                  9. No failure or delay on the part of any Lender in exercising
any power or right under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power or right preclude any
other or further exercise thereof or the exercise of any other power or right.
The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

                                      G-4
<PAGE>
                  10. Whenever possible each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
such law, such provision shall be ineffective to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

                  11. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. THIS AGREEMENT
CONSTITUTES THE ENTIRE UNDERSTANDING BETWEEN THE PARTIES HERETO WITH RESPECT TO
THE SUBJECT MATTER HEREOF AND SUPERSEDES ANY PRIOR AGREEMENTS, WRITTEN OR ORAL,
WITH RESPECT THERETO.

                  12. This Agreement may be separately executed in counterparts
and by the different parties hereto in separate counterparts, each of which when
so executed shall be deemed to constitute one and the same Agreement.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the date first above written by their duly
authorized officers.

                                         BANK OF OKLAHOMA, N.A.

                                         By:_________________________________
                                              Title:

                                         Address:
                                         ______________________________
                                         ______________________________
                                         ______________________________

                                         BANK ONE, N.A.

                                         By:__________________________________
                                              Title:

                                         Address:
                                         ______________________________
                                         ______________________________
                                         ______________________________

                                      G-5
<PAGE>

                                         U.S. BANK NATIONAL ASSOCIATION

                                         By:___________________________
                                             Title:

                                         Address:
                                         ______________________________
                                         ______________________________
                                         ______________________________

                                         HARRIS TRUST AND SAVINGS BANK

                                         By:___________________________
                                             Title:

                                         Address:
                                         ______________________________
                                         ______________________________
                                         ______________________________

                                         PRUDENTIAL INVESTMENT MANAGEMENT, INC.

                                         By:___________________________
                                              Vice President

                                         Address:
                                         c/o Prudential Capital Group
                                         2200 Ross Avenue, Suite 4200E
                                         Dallas, Texas 75201
                                         Attention: Randall M. Kob,
                                                    Managing Director

                                      G-6
<PAGE>
                                         THE PRUDENTIAL INSURANCE
                                         COMPANY OF AMERICA

                                         By:___________________________
                                              Vice President

                                         Address:
                                         c/o Prudential Capital Group
                                         2200 Ross Avenue, Suite 4200E
                                         Dallas, Texas 75201
                                         Attention: Randall M. Kob
                                                    Managing Director

                                         PRUCO LIFE INSURANCE COMPANY

                                         By:___________________________
                                              Vice President

                                         Address:
                                         c/o Prudential Capital Group
                                         2200 Ross Avenue, Suite 4200E
                                         Dallas, Texas 75201
                                         Attention: Randall M. Kob
                                                    Managing Director

                                         RELIASTAR LIFE INSURANCE
                                         COMPANY

                                         By:   Prudential Private Placement
                                               Investors, L.P. (as
                                               Investment Advisor)

                                         By:   Prudential Private Placement
                                               Investors, Inc. (as its
                                               General Partner)

                                               By:___________________________
                                                    Vice President

                                         Address:
                                         c/o Prudential Capital Group
                                         2200 Ross Avenue, Suite 4200E
                                         Dallas, Texas 75201
                                         Attention: Randall M. Kob
                                                    Managing Director

                                      G-7
<PAGE>
                                 SOUTHLAND LIFE INSURANCE COMPANY

                                 By:   Prudential Private Placement Investors,
                                       L.P. (as Investment Advisor)

                                 By:   Prudential Private Placement
                                       Investors, Inc. (as its
                                       General Partner)

                                       By:___________________________
                                          Vice President

                                 Address:
                                 c/o Prudential Capital Group
                                 2200 Ross Avenue, Suite 4200E
                                 Dallas, Texas 75201
                                 Attention: Randall M. Kob
                                            Managing Director

                                      G-8
<PAGE>
                              CONSENT AND AGREEMENT

                  Each of the undersigned hereby consents to the provisions of
the foregoing Agreement and the transactions contemplated thereby and
specifically agrees to the provisions of Section 2 of the Agreement (including
the provisions regarding the right of setoff). Each of the undersigned agrees to
notify each Lender promptly of any payment to, or setoff or obtaining of a
secured claim by, the other Lenders contemplated by the foregoing Agreement.

                  Dated:  _______________, 2002.

                                           SCS TRANSPORTATION, INC.

                                           By:__________________________
                                                Title:

                                           SAIA MOTOR FREIGHT LINE, INC.

                                           By:__________________________
                                                Title:

                                           JEVIC TRANSPORTATION, INC.

                                           By:__________________________
                                                Title:
<PAGE>
                                                                       EXHIBIT H

                        [FORM OF COMPLIANCE CERTIFICATE]

                             COMPLIANCE CERTIFICATE

                                    [FOR THE FISCAL QUARTER ENDING ______, 20__]
                                               [FOR THE FISCAL YEAR ENDING 20__]

To:      The Prudential Insurance Company of America
         c/o Prudential Capital Group
         2200 Ross Avenue
         Suite 4200E
         Dallas, Texas  75201
         Attention: Brian Lemons
         Fax: (214) 720-6299

         Pursuant to that certain Master Shelf Agreement dated as of September
18, 2002 between SCS Transportation, Inc., a Delaware corporation (the
"COMPANY"), and The Prudential Insurance Company of America (as amended,
restated, supplemented or otherwise modified from time to time, the "AGREEMENT";
all capitalized terms used herein and not otherwise defined shall have the
meanings assigned to them in the Agreement), the undersigned hereby certifies as
follows:

         (1) I am the duly elected, qualified and acting TREASURER of the
Company.

         (2) I have reviewed the terms of the Agreement and have made, or caused
to be made under my supervision, a review in reasonable detail of the
transactions and financial condition of the Company and its Subsidiaries, namely
[ ]. Based on such review, I have determined that the Company has observed or
performed in all material respects all of its covenants and other agreements,
and satisfied every condition, contained in the Agreement and the other Note
Documents to which it is a party to be observed, performed or satisfied by it on
or before the date hereof, and as of the date hereof, no Default or Event of
Default has occurred and is continuing [, EXCEPT AS SET FORTH IN PARAGRAPH (3)
BELOW].

         [(3) DESCRIBED BELOW (OR IN A SEPARATE SCHEDULE TO THIS CERTIFICATE)
ARE THE EXCEPTIONS, IF ANY, TO PARAGRAPH (2), LISTING, IN DETAIL, THE NATURE OF
THE CONDITION OR EVENT WHICH CONSTITUTES A DEFAULT OR AN EVENT OF DEFAULT, THE
PERIOD DURING WHICH IT HAS EXISTED AND THE ACTION WHICH THE COMPANY HAS TAKEN,
IS TAKING, OR PROPOSES TO TAKE WITH RESPECT TO EACH SUCH CONDITION OR EVENT THAT
CONSTITUTES A DEFAULT OR AN EVENT OF DEFAULT.]
<PAGE>
         [([3][4]) WITH RESPECT TO THE FINANCIAL STATEMENTS REFERRED TO IN
CLAUSE (I) OF PARAGRAPH 5A OF THE AGREEMENT, WHICH ARE DELIVERED CONCURRENTLY
WITH THE DELIVERY OF THIS CERTIFICATE, THE UNDERSIGNED HEREBY CONFIRMS THAT SUCH
FINANCIAL STATEMENTS HAVE BEEN PREPARED IN ACCORDANCE WITH GAAP APPLIED
CONSISTENTLY THROUGHOUT THE PERIOD INVOLVED [(EXCEPT AS APPROVED BY THE
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS OF THE COMPANY AND DISCLOSED THEREIN)].
THE COVENANTS FROM THE AGREEMENT LISTED AND CALCULATED ON ANNEX A ATTACHED
HERETO ARE BASED ON SUCH FINANCIAL STATEMENTS.]

         [([3][4]) WITH RESPECT TO THE FINANCIAL STATEMENTS REFERRED TO IN
CLAUSE (II) OF PARAGRAPH 5A OF THE AGREEMENT, WHICH ARE DELIVERED CONCURRENTLY
WITH THE DELIVERY OF THIS CERTIFICATE, THE UNDERSIGNED HEREBY CONFIRMS THAT SUCH
FINANCIAL STATEMENTS, INCLUDING THE RELATED NOTES AND SCHEDULES THERETO, HAVE
BEEN PREPARED IN ACCORDANCE WITH GAAP APPLIED CONSISTENTLY THROUGHOUT THE
PERIODS INVOLVED [(EXCEPT AS APPROVED BY THE COMPANY'S INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS AND DISCLOSED THEREIN)]. THE COVENANTS FROM THE AGREEMENT
LISTED AND CALCULATED ON ANNEX A ATTACHED HERETO ARE BASED ON SUCH FINANCIAL
STATEMENTS.]

         ([4][5]) Described below in reasonable detail are the adjustments, if
any, necessary to derive the information set forth in Annex A from the financial
statements referred to in paragraph ([3][4]) above.

         The foregoing certification, together with the computations set forth
in Annex A attached hereto and the financial statements delivered herewith in
support hereof, are made and delivered this ___ day of _______, 20__, pursuant
to paragraph 5A of the Agreement.

                                      _________________________________________
                                      JIM BELLINGHAUSEN,
                                      Chief Financial Officer, of
                                      SCS Transportation Inc.

                                      H-2
<PAGE>
                                                                Annex A to
                                                          Compliance Certificate

                              Covenant Calculations

<TABLE>
<CAPTION>
                                                                                            COMPLIANCE
                                                                                            [INDICATE
                                                                                             YES/NO]

<S>                                                                          <C>             <C>
1.  Total Indebtedness to EBITDAR (paragraph 6A(1))

    The ratio of

       (i)   Total Indebtedness(2) excluding all letters of credit           ___________

    To

       (ii)   EBITDAR(3) for the four fiscal quarters most recently ended    ___________

    Total Indebtedness to EBITDAR Ratio [1(i) / 1(ii)]                       ___________

    (at any time must not be greater than)                                   2.75 to 1.00
</TABLE>

_________________
(2)      See Schedule 1, Item 6 for calculations.
(3)      See Schedule 1, Item 1 for calculations.

                                   Annex A-1
<PAGE>
<TABLE>
<CAPTION>
                                                                                                     COMPLIANCE
                                                                                                     [INDICATE
                                                                                                      YES/NO]

<S>                                                                              <C>                  <C>
2.   Adjusted Total Indebtedness to EBITDAR (paragraph 6A(2))

     The ratio of

        (i)   Adjusted Total Indebtedness(4)                                     ___________

     To

        (ii)   EBITDAR(5) for the four fiscal quarters most recently ended       ___________

     Adjusted Total Indebtedness to EBITDAR Ratio [2(i) / 2(ii)]                 ___________

     (at any time must not be greater than)                                     3.00 to 1.00
</TABLE>

_________________
(4)      See Schedule 1, Item 8 for calculations.
(5)      See Schedule 1, Item 1 for calculations.

                                   Annex A-2
<PAGE>
<TABLE>
<CAPTION>
                                                                                                      COMPLIANCE
                                                                                                       [INDICATE
                                                                                                        YES/NO]
<S>                                                                                  <C>              <C>
3.  Interest Coverage Ratio (paragraph 6A(3))

    The ratio of

       (i)   EBIT(6) for the four fiscal quarters most recently ended                ___________

    To

       (ii)   Interest Expense(7) for the four fiscal quarters most recently ended   ___________

    Interest Coverage Ratio [3(i) / 3(ii)]                                           ___________

    (at any time must not be less than)                                             1.75 to 1.00
</TABLE>

_________________
(6)      See Schedule 1, Item 5 for calculations.
(7)      See Schedule 1, Item 3 for calculations.

                                   Annex A-3
<PAGE>
<TABLE>
<CAPTION>
                                                                                                    COMPLIANCE
                                                                                                     [INDICATE
                                                                                                      YES/NO]
<S>                                                                                <C>              <C>
4. Tangible Net Worth (paragraph 6A(4))

   Tangible Net Worth(8)

   (must not be less than the sum of)

   (i)     $113,000,000                                                            $113,000,000
                                                                                   ------------
   (ii)    plus 75% of Net Income(9) for each fiscal quarter  commencing  with the
           ----
            fiscal  quarter  ending  September  30,  2002 in which Net Income is
            positive (with no deduction for losses)                                    $0.00
                                                                                       -----

   (iii) plus 75% of the Net Proceeds(10) from the issuance and sale of equity
         ----
            securities                                                                 $0.00
                                                                                       -----

   Minimum Tangible Net Worth [4(i) + 4(ii) + 4(iii) ]                                 $0.00
                                                                                       -----
</TABLE>

_________________
(7)      See Schedule 1, Item 11 for calculations.
(8)      See Schedule 1, Item 2 for calculations.
(9)      See Schedule 1, Item 13 for calculations.
<PAGE>
<TABLE>
<CAPTION>
                                                                                                      COMPLIANCE
                                                                                                       [INDICATE
                                                                                                        YES/NO]
<S>                                                                                     <C>           <C>

5.  Transfer of Assets (paragraph 6C(6))

    (A)   Annual

          (i)     The aggregate  value of any assets  Transferred  in any period of
                  12 consecutive months                                                 $0.00
                                                                                        -----

          (ii)   less the aggregate amount of sales proceeds that are
                 reinvested through the purchase of similar assets within 90
                 days of the date of sale which are located within the
                 United states and which are not subject to Liens for
                 borrowed money                                                         $0.00
                                                                                        -----

    Outstanding Annual Transferred Assets [5A(i) - 5A(ii) ]                             $0.00
                                                                                        -----

    (must not exceed)

    (iii)    5.0% of                                                                    5.0%
                                                                                        ----

    (iv) Tangible Assets(11)                                                            $0.00
                                                                                        -----

    Maximum Annual Transferred Assets  [5A(iii) * 5A(iv) ]                              $0.00
                                                                                        -----
    (B) Aggregate

    The aggregate value of assets Transferred from the date of Closing that
    have not been reinvested within 90 days of the date of the sale, located
    within the United States, and not subject to Liens for borrowed money

    Outstanding Aggregate Transferred Assets                                            $0.00
                                                                                        -----

    (must not exceed)

    (i)   25.0% of                                                                      25.0%

    (ii)   Tangible Assets(12)                                                          $0.00
                                                                                        -----

    Maximum Aggregate Transferred Assets  [5B(i) * 5B(ii) ]                             $0.00
                                                                                        -----

</TABLE>

_________________
(11)     See Schedule 1, Item 14 for calculations.
(12)     See Schedule 1, Item 14 for calculations.

                                   Annex A-2
<PAGE>
<TABLE>
<CAPTION>
                                                                                                     COMPLIANCE
                                                                                                     [INDICATE
                                                                                                      YES/NO]
<S>                                                                                 <C>              <C>

6.      Borrowing Base (paragraph 6G)

        The Borrowing Base(13)                                                         $0.00
                                                                                       -----

        (must not be less than)                                                     $30,000,000
                                                                                    -----------
</TABLE>

_____________________________________
(13) See Schedule 1, Item 16 for calculations

                                   Annex A-3
<PAGE>
                         COVENANT COMPONENT CALCULATIONS

<TABLE>
<S>                 <C>                                                                        <C>
    1.     EBITDAR of the Company and its Subsidiaries for the relevant period shall mean

              (i)   Net Income(14) for such period                                             $0.00
                                                                                               -----

             (ii)   plus, to the extent deducted in the determination of such Net Income,

                    (a)   all  provisions  for  federal,  state and other  income  tax of the  $0.00
                          Company and its Subsidiaries,                                        -----

                    (b)   Interest Expense(15),                                                $0.00
                                                                                               -----

                    (c)   provisions for depreciation and amortization, and                    $0.00
                                                                                               -----

                    (d)   Rental Expense(16)                                                   $0.00
                                                                                               -----
              (iii) less, (a) any gains or losses resulting from the sale, conversion or
                    other disposition of capital assets (i.e., assets other than current
                    assets), (b) any gains resulting from the write-up of assets, (c) any
                    earnings of any Person acquired by the Company or any Subsidiary through
                    purchase, merger or consolidation or otherwise for any period prior to
                    the date of acquisition, (d) any deferred credit representing the excess
                    of equity in any such Subsidiary at the date of acquisition over the
                    cost of the investment in such Subsidiary, (e) any gains or losses from
                    the acquisition of securities or the retirement or extinguishment of
                    Indebtedness, (f) any gains on collections from the proceeds of
                    insurance policies or settlements, (g) any restoration to income of any
                    Contingency Reserve, except to the extent that provision for such
                    reserve was made out of income accrued during such period, (h) any
                    income or gain during such period from any discontinued operations or
                    the disposition thereof, from any extraordinary items or from any prior
                    period adjustments, and (i) any equity of the Company or any Subsidiary
                    in the undistributed earnings (but not losses) of any corporation or
                    other entity which is not a Subsidiary of the Company, which in the
                    aggregate will be deducted only to the extent they are positive,
                    adjusted for minority interests in Subsidiaries.                           $0.00
                                                                                               -----
           (IV)     EBITDAR [(I) + (II)(A) + (II)(B) + (II)(C) + (II)(D) - (III)]
                                                                                               $0.00
                                                                                               =====

</TABLE>

________________________
(14)     See Item 2 of this Schedule for calculations.
(15)     See Item 3 of this Schedule for calculations.
(16)     See Item 4 of this Schedule for calculations.

                                   Annex A-4
<PAGE>
<TABLE>
<S>                                                                                          <C>
    2.     NET INCOME, shall mean, for any computation period, with respect to
           the Company on a consolidated basis with its Subsidiaries (other than
           any Subsidiary which is restricted from declaring or paying dividends
           or otherwise advancing funds to its parent whether by contract or
           otherwise), cumulative net income earned during such period as
           determined in accordance with GAAP.

           NET INCOME                                                                          $0.00
                                                                                                ====

    3.     INTEREST EXPENSE, shall mean, with respect to any period, the sum
           (without duplication) of:

              (i)   all interest and prepayment charges in respect of
                    Indebtedness of such person and its subsidiaries (including
                    imputed interest in respect of Capitalized Lease
                    Obligations(17) and net costs of Swaps) deducted in
                    determining Net Income of such person and its subsidiaries
                    for such period                                                            $0.00
                                                                                               -----

              (ii)   plus, all interest capitalized or deferred during such
                     period and not deducted in determining Net Income for such
                     period                                                                    $0.00
                                                                                               -----

              (iii)  plus, all debt discount and expense amortized or required
                     to be amortized in the determination of Net Income for such
                     period                                                                    $0.00
                                                                                               -----

              (IV)   INTEREST EXPENSE [(I) + (II) + (III)]                                     $0.00
                                                                                               =====

    4.     RENTAL EXPENSE, the aggregate amount of all payments for rent or
           additional rent (including all payments for taxes and insurance made
           directly to the lessor, but excluding payments for maintenance,
           repairs, alterations, construction, demolition and the like) for
           which the Company or Subsidiaries are directly or indirectly liable
           (as lessee or as guarantor or other surety) under all Operating
           Leases in effect at any time during such period

           RENTAL EXPENSE                                                                      $0.00
                                                                                                ====

    5.     EBIT, shall mean,

              (i)     EBITDAR(18)                                                              $0.00
                                                                                               -----

              (ii)    less provisions for depreciation and amortization, and                   $0.00
                                                                                               -----

              (iii)   less Rental Expense(19)                                                  $0.00
                                                                                               -----

              (III)   EBIT [(I) - (II) - (III)]                                                $0.00
                                                                                                ====

    6.     TOTAL INDEBTEDNESS, the consolidated Indebtedness(20) of the Company
           and its Subsidiaries
</TABLE>

________________________
(17)     See Item 9 of this Schedule for calculations
(18)     See Item 1 of this Schedule for calculations
(19)     See Item 4 of this Schedule for calculations
(20)     See Item 7 of this Schedule for calculations.

                                   Annex A-5
<PAGE>
<TABLE>
<S>                                                                                            <C>
              TOTAL INDEBTEDNESS                                                               $0.00
                                                                                                ====

    7.     INDEBTEDNESS,  shall mean, with respect to any Person and without
                     duplication, the sum of

              (i)     liabilities for borrowed money, including those evidenced by
                      notes, bonds, debentures and similar instruments, and its
                      redemption obligations in respect of mandatorily Preferred
                      Stock, $0.00

              (ii)    liabilities for the deferred purchase price of property
                      acquired by such Person (excluding accounts payable arising
                      in the ordinary course of business but including all
                      liabilities created or arising under any conditional sale or
                      other title retention agreement with respect to any such
                      property),                                                               $0.00
                                                                                               -----

              (iii)   all its Capitalized Lease Obligations(21)                                $0.00
                                                                                               -----

              (iv)    plus, all indebtedness secured by any Lien with respect to
                      any property owned by such Person, whether or not the
                      indebtedness secured thereby shall have been assumed, $0.00

              (v)     plus, Swaps                                                              $0.00
                                                                                               -----

              (vi)    plus, unfunded pension liabilities                                       $0.00
                                                                                               -----

              (vii)   plus, the outstanding balance of the purchase price of
                      uncollected accounts receivable of such Person subject at
                      such time to a sale of receivables or other similar
                      transaction, regardless of whether such transaction is
                      effected without recourse to such Person or in a manner
                      which would not be reflected on the balance sheet of such
                      Person in $0.00 accordance with GAAP

              (viii)  plus obligations under letters of credit                                 $0.00
                                                                                               -----

              (ix)    plus obligations under acceptance facilities                             $0.00
                                                                                               -----

              (x)     plus the present value of Rental Obligations(22) discounted at
                      an annual rate of 10% per annum, and                                     $0.00
                                                                                               -----

              (xi)    plus all Guarantees with respect to liabilities of a type
                      described in $0.00 any of clause (i) through (vii), (ix) and
                      (x) hereof.

              (XII)   INDEBTEDNESS  [(i) + (ii) + (iii) + (IV) + (V) + (VI) + (VII) +  (VIII)
                      + (IX) + (X) + (XI)]                                                    $0.00
                                                                                              =====

</TABLE>

__________________________
(21)     See Item 9 of this Schedule for calculations
(22)     See Item 10 of this Schedule for calculations

                                   Annex A-6
<PAGE>
<TABLE>
<S>        <C>                                                                                <C>
    8.     ADJUSTED TOTAL INDEBTEDNESS,

              (i)   Total Indebtedness                                                         $0.00
                                                                                               -----

              (ii)  less letters of credit other than the aggregate face amount
                    of all $0.00 letters of credit issued and outstanding under
                    the Credit Agreement

              (III) ADJUSTED TOTAL INDEBTEDNESS [(I) + (II)]                                   $0.00
                                                                                               =====

    9.     CAPITALIZED LEASE OBLIGATIONS shall mean any rental obligation which,
           under GAAP, is or will be required to be capitalized on the books of
           the Company or any Subsidiary, taken at the amount thereof accounted
           for as indebtedness (net of interest expense) in accordance with such
           principles.

           CAPITALIZED LEASE OBLIGATIONS                                                       $0.00
                                                                                               =====

   10.     RENTAL OBLIGATIONS, the aggregate amount of all payments for rent or
           additional rent (including all payments for taxes and insurance made
           directly to the lessor, but excluding payments for maintenance,
           repairs, alterations, construction, demolition and the like) for
           which the Company or Subsidiaries are directly or indirectly liable
           (as lessee or as guarantor or other surety) under all Operating
           Leases in effect at such period end that are not cancelable.

           RENTAL OBLIGATIONS                                                                  $0.00
                                                                                               =====
</TABLE>

                                   Annex A-7
<PAGE>

<TABLE>
<S>                                                                                            <C>
    11.    TANGIBLE NET WORTH shall mean, on any date as of which the amount
           thereof is to be determined, an amount equal to

              (i)   Net Worth(23)                                                              $0.00
                                                                                               -----

              (ii)  minus, the net book amount of all intangible items,
                    including, without limitation, goodwill, licenses,
                    organizational expense, unamortized debt discount and
                    expense carried as an asset, all reserves and any write-up
                    in the book value of assets,                                               $0.00
                                                                                               -----

              (iii) minus, the net book amount of all reserves for depreciation
                    and other asset valuation reserves (but excluding reserves
                    for federal, state, and other income taxes) net of
                    accumulated amortization,                                                  $0.00
                                                                                               -----

              (IV)  TANGIBLE NET WORTH [(I) - (II) - (III)]                                    $0.00
                                                                                               =====

    12.    NET WORTH, shall mean, as at the time of determination thereof, the
           consolidated stockholders' equity of the Company and its Subsidiaries

           NET WORTH                                                                           $0.00
                                                                                               =====

   13.     NET PROCEEDS shall mean the cash proceeds, net of all underwriters'
           discounts and commissions, and other marketing and selling expenses,
           from the sale or issuance of:

              (i)     equity securities, or                                                    $0.00
                                                                                               -----

              (ii)    other properties or assets                                               $0.00
                                                                                               -----

              (III)   NET PROCEEDS [(I) + (II)]                                                $0.00
                                                                                               =====

   14.     TANGIBLE ASSETS shall mean the consolidated assets of the Company and
           its Subsidiaries less, without duplication, (i) intangible assets
           including, without limitation, goodwill, licenses, organizational
           expense, unamortized debt discount and expense carried as an asset,
           all reserves and any write-up in the book value of assets and (ii)
           all reserves for depreciation and other asset valuation reserves (but
           excluding reserves for federal, state and other income taxes).

           TANGIBLE ASSETS                                                                     $0.00
                                                                                               =====

    15.    BORROWING BASE shall have the meaning specified in the Credit
           Agreement.

           BORROWING BASE                                                                      $0.00
                                                                                               =====
</TABLE>

_______________________
(23)     See Item 12 of this Schedule for calculations.

                                   Annex A-8
<PAGE>
BAKER BOTTS LLC                         2                     September 23, 2002

10.  preparation of initial drafts, subsequent revisions and execution
     counterparts of the Intercreditor and Collateral Agency Agreement;

11.  preparation of initial drafts, subsequent revisions and execution
     counterparts of the Parent Pledge Agreement;

12.  preparation of initial drafts, subsequent revisions and execution
     counterparts of the Company/Subsidiaries Pledge Agreement;

13.  preparation of initial drafts, subsequent revisions and execution
     counterparts of the Security Agreement;

14.  preparation of initial drafts, subsequent revisions and execution
     counterparts of the Subordination Agreement;

15.  preparation of initial drafts, subsequent revisions and execution
     counterparts of various other closing documents;

16.  review of, and furnishing comments upon, various closing documents prepared
     by counsel for the Company; discussion of same with representatives of
     Prudential and representatives of/counsel for the Company;

17.  telephone conversations and correspondence in connection with the
     foregoing; and

18.  preparation for and attendance at closing of transaction in offices of
     Baker Botts L.L.P. in Dallas, Texas.
<PAGE>
BAKER BOTTS LLP                         3                     September 23, 2002

<TABLE>
<S>                                                                    <C>
FEE (July 15, 2002 through September 22, 2002 and through closing) ... $182,000.00

EXPENSES (July 15, 2002 through September 22, 2002):

           Photocopying service ......................................     $163.35
           Facsimile (Local) .........................................       93.35
           Delivery service ..........................................      294.49
           Telephone calls............................................       19.66
           Computer research services.................................      111.40
                                                                       -----------
           TOTAL......................................................     $682.25

ESTIMATED UNBILLED FEES
(September 23, 2002 through post-closing)............................. $ 10,000.00
ESTIMATED UNBILLED EXPENSES
(September 23,2002 through post-closing).............................. $  5,000.00
TOTAL FEE AND EXPENSES
(July 15, 2002 through post-closing) ................................. $197,682.25
</TABLE><PAGE>
                                                                    Exhibit 4.1

                  SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE

                                    AGREEMENT

                         DATED AS OF SEPTEMBER 30, 2002

                                      AMONG

                               THE VIALINK COMPANY

                                       AND

                       THE PURCHASERS LISTED ON EXHIBIT A

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

ARTICLE I Purchase and Sale of Preferred Stock.............................   1

     Section 1.1    Purchase and Sale of Stock.............................   1
     Section 1.2    The Conversion Shares..................................   1
     Section 1.3    Purchase Price and Closing.............................   1
     Section 1.4    Warrants...............................................   2

ARTICLE II Representations and Warranties..................................   2

     Section 2.1    Representations and Warranties of the Company..........   2
     Section 2.2    Representations and Warranties of the Purchasers.......  12

ARTICLE III Covenants......................................................  15

     Section 3.1    Securities Compliance..................................  15
     Section 3.2    Registration and Listing...............................  16
     Section 3.3    Inspection Rights......................................  16
     Section 3.4    Compliance with Laws...................................  16
     Section 3.5    Keeping of Records and Books of Account................  16
     Section 3.6    Reporting Requirements.................................  17
     Section 3.7    Amendments.............................................  17
     Section 3.8    Other Agreements.......................................  17
     Section 3.9    Distributions..........................................  17
     Section 3.10   Status of Dividends....................................  17
     Section 3.11   Reservation of Shares..................................  18
     Section 3.12   Transfer Agent Instructions............................  18
     Section 3.13   Subsequent Financings/Right of First Offer.............  18
     Section 3.14   Form 8-K...............................................  20

ARTICLE IV Conditions......................................................  21

     Section 4.1    Conditions Precedent to the Obligation of the
                    Company to Sell the Shares.............................  21
     Section 4.2    Conditions Precedent to the Obligation of the
                    Purchasers to Purchase the Shares......................  21

ARTICLE V Stock Certificate Legend.........................................  23

     Section 5.1    Legend.................................................  23

ARTICLE VI Indemnification.................................................  24

     Section 6.1    General Indemnity......................................  24
     Section 6.2    Indemnification Procedure..............................  24

                                      -i-

<PAGE>

ARTICLE VII Miscellaneous..................................................  25

     Section 7.1    Fees and Expenses......................................  25
     Section 7.2    Specific Enforcement, Consent to Jurisdiction..........  26
     Section 7.3    Entire Agreement; Amendment............................  26
     Section 7.4    Notices................................................  27
     Section 7.5    Waivers................................................  28
     Section 7.6    Headings...............................................  28
     Section 7.7    Successors and Assigns.................................  28
     Section 7.8    No Third Party Beneficiaries...........................  28
     Section 7.9    Governing Law..........................................  28
     Section 7.10   Survival...............................................  28
     Section 7.11   Counterparts...........................................  28
     Section 7.12   Publicity..............................................  29
     Section 7.13   Severability...........................................  29
     Section 7.14   Further Assurances.....................................  29

                                      -ii-

<PAGE>

             SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

     This SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT (the
"Agreement") is dated as of September 30, 2002 by and among The viaLink Company,
a Delaware corporation (the "Company"), and each of the Purchasers of shares of
Series D Convertible Preferred Stock of the Company whose names are set forth on
Exhibit A hereto (individually, a "Purchaser" and collectively, the
"Purchasers").

     The parties hereto agree as follows:

                                   ARTICLE I

                      PURCHASE AND SALE OF PREFERRED STOCK

          Section 1.1 Purchase and Sale of Stock. Upon the following terms and
conditions, the Company shall issue and sell to the Purchasers and each of the
Purchasers shall purchase from the Company, the number of shares of the
Company's Series D Convertible Preferred Stock, par value $.001 per share (the
"Preferred Shares"), at a purchase price of $12,000 per share, set forth with
respect to such Purchaser on Exhibit A hereto. Upon the following terms and
conditions, the Purchasers shall be issued Warrants, in substantially the form
attached hereto as Exhibit B (the "Warrants"), to purchase the Company's Common
Stock, par value $.001 per share (the "Common Stock"). The aggregate purchase
price for the Preferred Shares and the Warrants shall be $___________. The
designation, rights, preferences and other terms and provisions of the Series D
Convertible Preferred Stock are set forth in the Certificate of Designation of
the Relative Rights and Preferences of the Series D Convertible Preferred Stock
attached hereto as Exhibit C (the "Certificate of Designation"). The Company and
the Purchasers are executing and delivering this Agreement in accordance with
and in reliance upon the exemption from securities registration afforded by Rule
506 of Regulation D ("Regulation D") as promulgated by the United States
Securities and Exchange Commission (the "Commission") under the Securities Act
of 1933, as amended (the "Securities Act") or Section 4(2) of the Securities
Act.

          Section 1.2 The Conversion Shares. The Company has authorized and has
reserved and covenants to continue to reserve, free of preemptive rights and
other similar contractual rights of stockholders, such number of shares of
Common Stock as shall from time to time be sufficient to effect the conversion
of all of the Preferred Shares and exercise of the Warrants then outstanding;
provided that the number of shares of Common Stock so reserved shall at no time
be less than 100% of its authorized but unissued shares of its Common Stock, to
effect the conversion of the Preferred Shares and exercise of the Warrants. Any
shares of Common Stock issuable upon conversion of the Preferred Shares and
exercise of the Warrants (and such shares when issued) are herein referred to as
the "Conversion Shares" and the "Warrant Shares", respectively. The Preferred
Shares, the Conversion Shares and the Warrant Shares are sometimes collectively
referred to as the "Shares".

          Section 1.3 Purchase Price and Closing. The Company agrees to issue
and sell to the Purchasers and, in consideration of and in express reliance upon
the representations,

<PAGE>

warranties, covenants, terms and conditions of this Agreement, the Purchasers,
severally but not jointly, agree to purchase that number of the Preferred Shares
and Warrants set forth opposite their respective names on Exhibit A. The
aggregate purchase price of the Preferred Shares and Warrants being acquired by
each Purchaser is set forth opposite such Purchaser's name on Exhibit A (for
each such purchaser, the "Purchase Price" and collectively referred to as the
"Purchase Prices"). The closing of the execution and delivery of this Agreement
shall occur upon delivery by facsimile of executed signature pages of this
Agreement and all other documents, instruments and writings required to be
delivered pursuant to this Agreement to Jenkens & Gilchrist Parker Chapin LLP,
The Chrysler Building, 405 Lexington Avenue, New York, New York 10174. The
Preferred Shares and Warrants shall be sold and funded in two separate closings
(each, a "Closing"). The initial closing under this Agreement (the "Initial
Closing") shall take place no later than September 30, 2002 (the "Initial
Closing Date") and shall be funded in the amount of $__________. The second
closing under this Agreement (the "Second Closing") shall take place no later
than five (5) business days (the "Second Closing Date") after the Securities and
Exchange Commission (the "Commission") declares the Registration Statement (as
defined in the Registration Rights Agreement) effective (the "Effectiveness
Date") and shall be funded in the amount of $____________. Funding with respect
to each Closing shall take place by wire transfer of immediately available funds
on or prior to the applicable Closing Date, so long as the conditions set forth
in Article IV hereof shall be fulfilled or waived in accordance herewith. Each
Closing under this Agreement shall take place at the offices of Jenkens &
Gilchrist Parker Chapin LLP at 1:00 p.m. (eastern time) upon the satisfaction of
each of the conditions set forth in Article IV hereof (each, a "Closing Date").

          Section 1.4 Warrants. The Company agrees to issue to each of the
Purchasers Warrants to purchase the number of shares of Common Stock set forth
opposite such Purchaser's name on Exhibit A hereto. The Purchasers shall be
issued Warrants to purchase 50,000 shares of Common Stock for each Preferred
Share purchased. The Warrants shall have an exercise price equal to $.001 and
shall be exercised within one business day of the Initial Closing.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

          Section 2.1 Representations and Warranties of the Company. The Company
hereby makes the following representations and warranties to the Purchasers,
except as set forth in the Company's disclosure schedule delivered with this
Agreement as follows:

          (a)  Organization, Good Standing and Power. The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware and has the requisite corporate power to own,
lease and operate its properties and assets and to conduct its business as it is
now being conducted. The Company does not have any subsidiaries except as set
forth in the Company's Form 10-KSB for the fiscal year ended December 31, 2001,
including the accompanying financial statements (the "Form 10-KSB"), or in the
Company's Form 10-QSB for the fiscal quarters ended June 30, 2002, March 31,
2002 or September 30, 2001 (collectively, the "Form 10-QSB"), or on Schedule
2.1(a) hereto. The Company and each such subsidiary is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it

                                      -2-

<PAGE>

makes such qualification necessary except for any jurisdiction(s) (alone or in
the aggregate) in which the failure to be so qualified will not have a Material
Adverse Effect (as defined in Section 2.1(e) hereof) on the Company's financial
condition.

          (b)  Authorization; Enforcement. The Company has the requisite
corporate power and authority to enter into and perform this Agreement, the
Registration Rights Agreement attached hereto as Exhibit D (the "Registration
Rights Agreement"), the Transfer Agent Instructions (as defined in Section
3.12), the Certificate of Designation, and the Warrants (collectively, the
"Transaction Documents") and to issue and sell the Shares and the Warrants in
accordance with the terms hereof. The execution, delivery and performance of the
Transaction Documents and the Certificate of Designation by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been
duly and validly authorized by all necessary corporate action, and no further
consent or authorization of the Company or its Board of Directors or
stockholders is required. This Agreement has been duly executed and delivered by
the Company. The other Transaction Documents will have been duly executed and
delivered by the Company at the Initial Closing. Each of the Transaction
Documents constitutes, or shall constitute when executed and delivered, a valid
and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor's rights and remedies or by other
equitable principles of general application.

          (c)  Capitalization. The authorized capital stock of the Company and
the shares thereof currently issued and outstanding as of September 20, 2002 are
set forth on Schedule 2.1(c) hereto. All of the outstanding shares of the
Company's Common Stock and Series D Convertible Preferred Stock have been duly
and validly authorized. Except as set forth in this Agreement and the
Registration Rights Agreement and as set forth in the Form 10-KSB, Form 10-QSB
or on Schedule 2.1(c) hereto, no shares of Common Stock are entitled to
preemptive rights or registration rights and there are no outstanding options,
warrants, scrip, rights to subscribe to, call or commitments of any character
whatsoever relating to, or securities or rights convertible into, any shares of
capital stock of the Company. Furthermore, except as set forth in this Agreement
and the Registration Rights Agreement and as set forth in the Form 10-KSB, Form
10-QSB or on Schedule 2.1(c), there are no contracts, commitments,
understandings, or arrangements by which the Company is or may become bound to
issue additional shares of the capital stock of the Company or options,
securities or rights convertible into shares of capital stock of the Company.
Except for customary transfer restrictions contained in agreements entered into
by the Company in order to sell restricted securities or as provided in the Form
10-KSB, Form 10-QSB or on Schedule 2.1 (c) hereto, the Company is not a party to
any agreement granting registration or anti-dilution rights to any person with
respect to any of its equity or debt securities. The Company is not a party to,
and it has no knowledge of, any agreement restricting the voting or transfer of
any shares of the capital stock of the Company. Except as set forth in the Form
10-KSB, Form 10-QSB or on Schedule 2.1(c) hereto, the offer and sale of all
capital stock, convertible securities, rights, warrants, or options of the
Company issued prior to the Closing complied with all applicable Federal and
state securities laws, and no stockholder has a right of rescission or claim for
damages with respect thereto which would have a Material Adverse Effect (as
defined below) on the Company's financial condition or operating results.

                                      -3-

<PAGE>

The Company has furnished or made available to the Purchasers true and correct
copies of the Company's Articles of Incorporation as in effect on the date
hereof (the "Articles"), and the Company's Bylaws as in effect on the date
hereof (the "Bylaws"). For the purposes of this Agreement, "Material Adverse
Effect" means any adverse effect on the business, operations, properties,
prospects, or financial condition of the Company or its subsidiaries and which
is material to such entity or other entities controlling or controlled by such
entity.

          (d)  Issuance of Shares. The Preferred Shares and the Warrants to be
issued at each Closing have been duly authorized by all necessary corporate
action and the Preferred Shares, when paid for or issued in accordance with the
terms hereof, shall be validly issued and outstanding, fully paid and
nonassessable and entitled to the rights and preferences set forth in the
Certificate of Designation. When the Conversion Shares and the Warrant Shares
are issued in accordance with the terms of the Preferred Shares as set forth in
the Certificate of Designation and the Warrants, respectively, such shares will
be duly authorized by all necessary corporate action and validly issued and
outstanding, fully paid and nonassessable, and the holders shall be entitled to
all rights accorded to a holder of Common Stock.

          (e)  No Conflicts. Except as disclosed in Schedule 2.1(e) hereto, the
execution, delivery and performance of the Transaction Documents by the Company,
the performance by the Company of its obligations under the Certificate of
Designation and the consummation by the Company of the transactions contemplated
herein and therein do not and will not (i) violate any provision of the
Company's Articles or Bylaws, (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company is a
party or by which it or its properties or assets are bound, (iii) create or
impose a lien, mortgage, security interest, charge or encumbrance of any nature
on any property of the Company under any agreement or any commitment to which
the Company is a party or by which the Company is bound or by which any of its
respective properties or assets are bound, or (iv) result in a violation of any
federal, state, local or foreign statute, rule, regulation, order, judgment or
decree (including Federal and state securities laws and regulations) applicable
to the Company or any of its subsidiaries or by which any property or asset of
the Company or any of its subsidiaries are bound or affected, except, in all
cases other than violations pursuant to clauses (i) and (iv) above, for such
conflicts, defaults, terminations, amendments, accelerations, cancellations and
violations as would not, individually or in the aggregate, have a Material
Adverse Effect. The business of the Company and its subsidiaries is not being
conducted in violation of any laws, ordinances or regulations of any
governmental entity, except for possible violations which singularly or in the
aggregate do not and will not have a Material Adverse Effect. The Company is not
required under Federal, state or local law, rule or regulation to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute, deliver or perform any
of its obligations under the Transaction Documents or the Certificate of
Designation, or issue and sell the Preferred Shares, the Warrants, the
Conversion Shares and the Warrant Shares in accordance with the terms hereof or
thereof (other than any filings which may be required to be made by the Company
with the Commission or state securities administrators subsequent to the
Closing, any registration statement which may be filed pursuant hereto, and the

                                      -4-

<PAGE>

Certificate of Designation); provided that, for purposes of the representation
made in this sentence, the Company is assuming and relying upon the accuracy of
the relevant representations and agreements of the Purchasers herein.

          (f)  Commission Documents, Financial Statements. The Common Stock of
the Company is registered pursuant to Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and, except as disclosed
in the Form 10-KSB, Form 10-QSB or on Schedule 2.1(f) hereto, since June 30,
2002, the Company has timely filed all reports, schedules, forms, statements and
other documents required to be filed by it with the Commission pursuant to the
reporting requirements of the Exchange Act, including material filed pursuant to
Section 13(a) or 15(d) of the Exchange Act (all of the foregoing including
filings incorporated by reference therein being referred to herein as the
"Commission Documents"). The Company has delivered or made available to each of
the Purchasers true and complete copies of the Commission Documents filed with
the Commission since June 30, 2002. The Company has not provided to the
Purchasers any material non-public information or other information which,
according to applicable law, rule or regulation, was required to have been
disclosed publicly by the Company but which has not been so disclosed, other
than with respect to the transactions contemplated by this Agreement. As of
their respective dates, the Form 10-KSB and the Form 10-QSB complied in all
material respects with the requirements of the Exchange Act and the rules and
regulations of the Commission promulgated thereunder and other federal, state
and local laws, rules and regulations applicable to such documents, and, as of
their respective dates, none of the Form 10-KSB and the Form 10-QSB contained
any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the Commission
Documents comply as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the Commission or other
applicable rules and regulations with respect thereto. Such financial statements
have been prepared in accordance with generally accepted accounting principles
("GAAP") applied on a consistent basis during the periods involved (except (i)
as may be otherwise indicated in such financial statements or the notes thereto
or (ii) in the case of unaudited interim statements, to the extent they may not
include footnotes or may be condensed or summary statements), and fairly present
in all material respects the financial position of the Company and its
subsidiaries as of the dates thereof and the results of operations and cash
flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments).

          (g)  Subsidiaries. The Form 10-KSB, Form 10-QSB or Schedule 2.1(g)
hereto sets forth each subsidiary of the Company, showing the jurisdiction of
its incorporation or organization and showing the percentage of each person's
ownership of the outstanding stock or other interests of such subsidiary. For
the purposes of this Agreement, "subsidiary" shall mean any corporation or other
entity of which at least a majority of the securities or other ownership
interest having ordinary voting power (absolutely or contingently) for the
election of directors or other persons performing similar functions are at the
time owned directly or indirectly by the Company and/or any of its other
subsidiaries. All of the outstanding shares of capital stock of each subsidiary
have been duly authorized and validly issued, and are fully paid and
nonassessable. There are no outstanding preemptive, conversion or other rights,
options,

                                      -5-

<PAGE>

warrants or agreements granted or issued by or binding upon any subsidiary for
the purchase or acquisition of any shares of capital stock of any subsidiary or
any other securities convertible into, exchangeable for or evidencing the rights
to subscribe for any shares of such capital stock. Neither the Company nor any
subsidiary is subject to any obligation (contingent or otherwise) to repurchase
or otherwise acquire or retire any shares of the capital stock of any subsidiary
or any convertible securities, rights, warrants or options of the type described
in the preceding sentence. Neither the Company nor any subsidiary is party to,
nor has any knowledge of, any agreement restricting the voting or transfer of
any shares of the capital stock of any subsidiary.

          (h)  No Material Adverse Change. Since June 30, 2002, the date through
which the most recent annual report of the Company on Form 10-QSB has been
prepared and filed with the Commission, a copy of which is included in the
Commission Documents, the Company has not experienced or suffered any Material
Adverse Effect, except as disclosed on Schedule 2.1(h) hereto.

          (i) No Undisclosed Liabilities. Except as disclosed in the Form
10-KSB, Form 10-QSB or on Schedule 2.1(i) hereto, neither the Company nor any of
its subsidiaries has any liabilities, obligations, claims or losses (whether
liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent
or otherwise) other than those incurred in the ordinary course of the Company's
or its subsidiaries respective businesses since June 30, 2002 and which,
individually or in the aggregate, do not or would not have a Material Adverse
Effect on the Company or its subsidiaries.

          (j)  No Undisclosed Events or Circumstances. No event or circumstance
has occurred or exists with respect to the Company or its subsidiaries or their
respective businesses, properties, prospects, operations or financial condition,
which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or
disclosed.

          (k)  Indebtedness. The Form 10-KSB, Form 10-QSB, Commission Documents
or Schedule 2.1(k) hereto sets forth as of the date hereof all outstanding
secured and unsecured Indebtedness of the Company or any subsidiary, or for
which the Company or any subsidiary has commitments. For the purposes of this
Agreement, "Indebtedness" shall mean (a) any liabilities for borrowed money or
amounts owed in excess of $100,000 (other than trade accounts payable incurred
in the ordinary course of business), (b) all guaranties, endorsements and other
contingent obligations in respect of Indebtedness of others, whether or not the
same are or should be reflected in the Company's balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of business; and
(c) the present value of any lease payments in excess of $25,000 due under
leases required to be capitalized in accordance with GAAP. Neither the Company
nor any subsidiary is in default with respect to any Indebtedness.

          (l)  Title to Assets. Each of the Company and the subsidiaries has
good and marketable title to all of its real and personal property reflected in
the Commission Documents, free and clear of any mortgages, pledges, charges,
liens, security interests or other encumbrances, except for those indicated in
the Form 10-KSB, Form 10-QSB, Commission Documents or on

                                      -6-

<PAGE>

Schedule 2.1(l) hereto or such that, individually or in the aggregate, do not
cause a Material Adverse Effect on the Company's financial condition or
operating results. All said leases of the Company and each of its subsidiaries
are valid and subsisting and in full force and effect.

          (m)  Actions Pending. There is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or any other proceeding
pending or, to the knowledge of the Company, threatened against the Company or
any subsidiary which questions the validity of this Agreement or any of the
other Transaction Documents or the transactions contemplated hereby or thereby
or any action taken or to be taken pursuant hereto or thereto. Except as set
forth in the Form 10-KSB, Form 10-QSB or on Schedule 2.1(m) hereto, there is no
action, suit, claim, investigation, arbitration, alternate dispute resolution
proceeding or any other proceeding pending or, to the knowledge of the Company,
threatened, against or involving the Company, any subsidiary or any of their
respective properties or assets. Except as set forth in the Form 10-KSB, Form
10-QSB or Schedule 2.1(m) hereto, there are no outstanding orders, judgments,
injunctions, awards or decrees of any court, arbitrator or governmental or
regulatory body against the Company or any subsidiary or any officers or
directors of the Company or subsidiary in their capacities as such.

          (n)  Compliance with Law. The business of the Company and the
subsidiaries has been and is presently being conducted in accordance with all
applicable federal, state and local governmental laws, rules, regulations and
ordinances, except as set forth in the Form 10-KSB, Form 10-QSB, on Schedule
2.1(n) hereto or such that, individually or in the aggregate, do not cause a
Material Adverse Effect. The Company and each of its subsidiaries have all
franchises, permits, licenses, consents and other governmental or regulatory
authorizations and approvals necessary for the conduct of its business as now
being conducted by it unless the failure to possess such franchises, permits,
licenses, consents and other governmental or regulatory authorizations and
approvals, individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect.

          (o)  Taxes. Except as set forth in the Form 10-KSB, Form 10-QSB or on
Schedule 2.1(o) hereto, the Company and each of the subsidiaries has accurately
prepared and filed all federal, state and other tax returns required by law to
be filed by it, has paid or made provisions for the payment of all taxes shown
to be due and all additional assessments, and adequate provisions have been and
are reflected in the financial statements of the Company and the subsidiaries
for all current taxes and other charges to which the Company or any subsidiary
is subject and which are not currently due and payable. Except as disclosed on
Schedule 2.1(o) hereto, none of the federal income tax returns of the Company or
any subsidiary have been audited by the Internal Revenue Service. The Company
has no knowledge of any additional assessments, adjustments or contingent tax
liability (whether federal or state) of any nature whatsoever, whether pending
or threatened against the Company or any subsidiary for any period, nor of any
basis for any such assessment, adjustment or contingency.

          (p)  Certain Fees. Except as set forth in this Agreement or on
Schedule 2.1(p) hereto, no brokers, finders or financial advisory fees or
commissions will be payable by the Company or any subsidiary or any Purchaser
with respect to the transactions contemplated by this Agreement.

                                      -7-

<PAGE>

          (q)  Disclosure. To the best of the Company's knowledge, neither this
Agreement or the Schedules hereto nor any other documents, certificates or
instruments furnished to the Purchasers by or on behalf of the Company or any
subsidiary in connection with the transactions contemplated by this Agreement
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made herein or therein, in the light
of the circumstances under which they were made herein or therein, not
misleading.

          (r)  Operation of Business. The Company and each of the subsidiaries
owns or possesses all patents, trademarks, domain names (whether or not
registered) and any patentable improvements or copyrightable derivative works
thereof, websites and intellectual property rights relating thereto, service
marks, trade names, copyrights, licenses and authorizations as set forth in the
Form 10-KSB, Form 10-QSB or on Schedule 2.1(r) hereto, and all rights with
respect to the foregoing, which are necessary for the conduct of its business as
now conducted without any conflict with the rights of others.

          (s)  Environmental Compliance. The Company and each of its
subsidiaries have obtained all material approvals, authorization, certificates,
consents, licenses, orders and permits or other similar authorizations of all
governmental authorities, or from any other person, that are required under any
Environmental Laws. The Form 10-KSB or Form 10-QSB sets forth all material
permits, licenses and other authorizations issued under any Environmental Laws
to the Company or its subsidiaries. "Environmental Laws" shall mean all
applicable laws relating to the protection of the environment including, without
limitation, all requirements pertaining to reporting, licensing, permitting,
controlling, investigating or remediating emissions, discharges, releases or
threatened releases of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, materials or wastes, whether solid, liquid or
gaseous in nature, into the air, surface water, groundwater or land, or relating
to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, material or wastes, whether solid, liquid or
gaseous in nature. The Company has all necessary governmental approvals required
under all Environmental Laws and used in its business or in the business of any
of its subsidiaries. The Company and each of its subsidiaries are also in
compliance with all other limitations, restrictions, conditions, standards,
requirements, schedules and timetables required or imposed under all
Environmental Laws. Except for such instances as would not individually or in
the aggregate have a Material Adverse Effect, there are no past or present
events, conditions, circumstances, incidents, actions or omissions relating to
or in any way affecting the Company or its subsidiaries that violate or may
violate any Environmental Law after the Closing Date or that may give rise to
any environmental liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study or investigation (i) under any
Environmental Law, or (ii) based on or related to the manufacture, processing,
distribution, use, treatment, storage (including without limitation underground
storage tanks), disposal, transport or handling, or the emission, discharge,
release or threatened release of any hazardous substance. "Environmental
Liabilities" means all liabilities of a person (whether such liabilities are
owed by such person to governmental authorities, third parties or otherwise)
whether currently in existence or arising hereafter which arise under or relate
to any Environmental Law.

                                      -8-

<PAGE>

          (t)  Books and Record Internal Accounting Controls. The records and
documents of the Company and its subsidiaries accurately reflect in all material
respects the information relating to the business of the Company and the
subsidiaries, the location and collection of their assets, and the nature of all
transactions giving rise to the obligations or accounts receivable of the
Company or any subsidiary. The Company and each of its subsidiaries maintain a
system of internal accounting controls sufficient, in the judgment of the
Company's board of directors, to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management's general or specific
authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate actions is taken
with respect to any differences.

          (u)  Material Agreements. Except as set forth in the Form 10-KSB, Form
10-QSB, Commission Documents, on Schedule 2.1(u) hereto or on any other schedule
hereto, neither the Company nor any subsidiary is a party to any written or oral
contract, instrument, agreement, commitment, obligation, plan or arrangement, a
copy of which would be required to be filed with the Commission as an exhibit to
a registration statement on Form S-2 or applicable form (collectively, "Material
Agreements") if the Company or any subsidiary were registering securities under
the Securities Act. The Company and each of its subsidiaries has in all material
respects performed all the obligations required to be performed by them to date
under the foregoing agreements, have received no notice of default and, to the
best of the Company's knowledge are not in default under any Material Agreement
now in effect, the result of which could cause a Material Adverse Effect. No
written or oral contract, instrument, agreement, commitment, obligation, plan or
arrangement of the Company or of any subsidiary limits or shall limit the
payment of dividends on the Company's Preferred Shares, other Preferred Stock,
if any, or its Common Stock.

          (v)  Transactions with Affiliates. Except as set forth in the Form
10-KSB, Form 10-QSB or on Schedule 2.1(v) hereto, there are no loans, leases,
agreements, contracts, royalty agreements, management contracts or arrangements
or other continuing transactions between (a) the Company, any subsidiary or any
of their respective customers or suppliers on the one hand, and (b) on the other
hand, any officer, employee, consultant or director of the Company, or any of
its subsidiaries, or any person owning any capital stock of the Company or any
subsidiary or any member of the immediate family of such officer, employee,
consultant, director or stockholder or any corporation or other entity
controlled by such officer, employee, consultant, director or stockholder, or a
member of the immediate family of such officer, employee, consultant, director
or stockholder.

          (w)  Securities Act of 1933. Based in material part upon the
representations herein of the Purchasers, the Company has complied and will
comply with all applicable federal and state securities laws in connection with
the offer, issuance and sale of the Shares and the Warrants hereunder. Neither
the Company nor anyone acting on its behalf, directly or indirectly, has or will
sell, offer to sell or solicit offers to buy any of the Shares, the Warrants or
similar securities to, or solicit offers with respect thereto from, or enter
into any preliminary

                                      -9-

<PAGE>

conversations or negotiations relating thereto with, any person, or has taken or
will take any action so as to bring the issuance and sale of any of the Shares
and the Warrants under the registration provisions of the Securities Act and
applicable state securities laws, and neither the Company nor any of its
affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer or sale of
any of the Shares and the Warrants.

          (x)  Governmental Approvals. Except as set forth in the Form 10-KSB or
Form 10-QSB, and except for the filing of any notice prior or subsequent to the
Closing Date that may be required under applicable state and/or Federal
securities laws (which if required, shall be filed on a timely basis), including
the filing of a registration statement or statements pursuant to the
Registration Rights Agreement, and the filing of the Certificate of Designation
with the Secretary of State of the State of Delaware, no authorization, consent,
approval, license, exemption of, filing or registration with any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, is or will be necessary for, or in connection with, the
execution or delivery of the Preferred Shares and the Warrants, or for the
performance by the Company of its obligations under the Transaction Documents or
the Certificate of Designation.

          (y)  Employees. Neither the Company nor any subsidiary has any
collective bargaining arrangements or agreements covering any of its employees,
except as set forth in the Form 10-KSB, Form 10-QSB or on Schedule 2.1(y)
hereto. Except as set forth in the Form 10-KSB, Form 10-QSB or on Schedule
2.1(y) hereto, neither the Company nor any subsidiary has any employment
contract, agreement regarding proprietary information, non-competition
agreement, non-solicitation agreement, confidentiality agreement, or any other
similar contract or restrictive covenant, relating to the right of any officer,
employee or consultant to be employed or engaged by the Company or such
subsidiary. Since June 30, 2002, no officer, consultant or key employee of the
Company or any subsidiary whose termination, either individually or in the
aggregate, could have a Material Adverse Effect, has terminated or, to the
knowledge of the Company, has any present intention of terminating his or her
employment or engagement with the Company or any subsidiary.

          (z) Absence of Certain Developments. Except as provided in the Form
10-KSB, Form 10-QSB, Commission Documents or in Schedule 2.1(z) hereto, since
June 30, 2002, neither the Company nor any subsidiary has:

               (i)    issued any stock, bonds or other corporate securities or
any rights, options or warrants with respect thereto;

               (ii)   borrowed any amount or incurred or become subject to any
liabilities (absolute or contingent) except current liabilities incurred in the
ordinary course of business which are comparable in nature and amount to the
current liabilities incurred in the ordinary course of business during the
comparable portion of its prior fiscal year, as adjusted to reflect the current
nature and volume of the Company's or such subsidiary's business;

                                      -10-

<PAGE>

               (iii)  discharged or satisfied any lien or encumbrance or paid
any obligation or liability (absolute or contingent), other than current
liabilities paid in the ordinary course of business;

               (iv)   declared or made any payment or distribution of cash or
other property to stockholders with respect to its stock, or purchased or
redeemed, or made any agreements so to purchase or redeem, any shares of its
capital stock;

               (v)    sold, assigned or transferred any other tangible assets,
or canceled any debts or claims, except in the ordinary course of business;

               (vi)   sold, assigned or transferred any patent rights,
trademarks, trade names, copyrights, trade secrets or other intangible assets or
intellectual property rights, or disclosed any proprietary confidential
information to any person except to customers in the ordinary course of business
or to the Purchasers or their representatives;

               (vii)  suffered any substantial losses or waived any rights of
material value, whether or not in the ordinary course of business, or suffered
the loss of any material amount of prospective business; (viii) made any changes
in employee compensation except in the ordinary course of business and
consistent with past practices;

               (ix)   made capital expenditures or commitments therefor that
aggregate in excess of $100,000;

               (x)    entered into any other transaction other than in the
ordinary course of business, or entered into any other material transaction,
whether or not in the ordinary course of business;

               (xi)   made charitable contributions or pledges in excess of
$25,000;

               (xii)  suffered any material damage, destruction or casualty
loss, whether or not covered by insurance;

               (xiii) experienced any material problems with labor or
management in connection with the terms and conditions of their employment;

               (xiv)  effected any two or more events of the foregoing kind
which in the aggregate would be material to the Company or its subsidiaries; or

               (xv)   entered into an agreement, written or otherwise, to take
any of the foregoing actions.

          (aa) Use of Proceeds. The proceeds from the sale of the Preferred
Shares will be used by the Company for working capital and general corporate
purposes.

                                      -11-

<PAGE>

          (bb) Public Utility Holding Company Act and Investment Company Act
Status. The Company is not a "holding company" or a "public utility company" as
such terms are defined in the Public Utility Holding Company Act of 1935, as
amended. The Company is not, and as a result of and immediately upon the Closing
will not be, an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

          (cc) ERISA. No liability to the Pension Benefit Guaranty Corporation
has been incurred with respect to any Plan by the Company or any of its
subsidiaries which is or would be materially adverse to the Company and its
subsidiaries. The execution and delivery of this Agreement and the issue and
sale of the Preferred Shares will not involve any transaction which is subject
to the prohibitions of Section 406 of ERISA or in connection with which a tax
could be imposed pursuant to Section 4975 of the Internal Revenue Code of 1986,
as amended, provided that, if any of the Purchasers, or any person or entity
that owns a beneficial interest in any of the Purchasers, is an "employee
pension benefit plan" (within the meaning of Section 3(2) of ERISA) with respect
to which the Company is a "party in interest" (within the meaning of Section
3(14) of ERISA), the requirements of Sections 407(d)(5) and 408(e) of ERISA, if
applicable, are met. As used in this Section 2.1(cc), the term "Plan" shall mean
an "employee pension benefit plan" (as defined in Section 3 of ERISA) which is
or has been established or maintained, or to which contributions are or have
been made, by the Company or any subsidiary or by any trade or business, whether
or not incorporated, which, together with the Company or any subsidiary, is
under common control, as described in Section 414(b) or (c) of the Code.

          (dd) Dilutive Effect. The Company understands and acknowledges that
the number of Conversion Shares issuable upon conversion of the Preferred Shares
and the Warrant Shares issuable upon exercise of the Warrants will increase in
certain circumstances. The Company further acknowledges that its obligation to
issue Conversion Shares upon conversion of the Preferred Shares in accordance
with this Agreement and the Certificate of Designation and its obligations to
issue the Warrant Shares upon the exercise of the Warrants in accordance with
this Agreement and the Warrants, is, in each case, absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership
interest of other stockholders of the Company.

          Section 2.2 Representations and Warranties of the Purchasers. Each of
the Purchasers hereby makes the following representations and warranties to the
Company with respect solely to itself and not with respect to any other
Purchaser:

          (a)  Organization and Standing of the Purchasers. If the Purchaser is
an entity, such Purchaser is a corporation or partnership duly incorporated or
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization.

          (b)  Authorization and Power. The Purchaser has the requisite power
and authority to enter into and perform this Agreement and to purchase the
Preferred Shares being sold to it hereunder. The execution, delivery and
performance of this Agreement and the Registration Rights Agreement by such
Purchaser and the consummation by it of the transactions contemplated hereby and
thereby have been duly authorized by all necessary corporate or

                                      -12-

<PAGE>

partnership action (if the Purchaser is an entity), and no further consent or
authorization of such Purchaser or its Board of Directors, stockholders, or
partners, as the case may be, is required. Each of this Agreement and the
Registration Rights Agreement has been duly authorized, executed and delivered
by such Purchaser.

          (c)  No Conflicts. The execution, delivery and performance of this
Agreement and the Registration Rights Agreement and the consummation by such
Purchaser of the transactions contemplated hereby and thereby or relating hereto
do not and will not (i) result in a violation of such Purchaser's charter
documents or bylaws or (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or
cancellation of any agreement, indenture or instrument to which such Purchaser
is a party, or result in a violation of any law, rule, or regulation, or any
order, judgment or decree of any court or governmental agency applicable to such
Purchaser or its properties (except for such conflicts, defaults and violations
as would not, individually or in the aggregate, have a material adverse effect
on such Purchaser). Such Purchaser is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its
obligations under this Agreement or the Registration Rights Agreement or to
purchase the Preferred Shares or acquire the Warrants in accordance with the
terms hereof, provided that for purposes of the representation made in this
sentence, such Purchaser is assuming and relying upon the accuracy of the
relevant representations and agreements of the Company herein.

          (d)  Acquisition for Investment. Such Purchaser is acquiring the
Preferred Shares and the Warrants solely for its own account for the purpose of
investment and not with a view to or for sale in connection with distribution.
Such Purchaser does not have a present intention to sell the Preferred Shares or
the Warrants, nor a present arrangement (whether or not legally binding) or
intention to effect any distribution of the Preferred Shares or the Warrants to
or through any person or entity; provided, however, that by making the
representations herein and subject to Section 2.2(f) below, such Purchaser does
not agree to hold the Shares or the Warrants for any minimum or other specific
term and reserves the right to dispose of the Shares or the Warrants at any time
in accordance with Federal and state securities laws applicable to such
disposition. Such Purchaser acknowledges that it is able to bear the financial
risks associated with an investment in the Preferred Shares and the Warrants and
that it has been given full access to such records of the Company and the
subsidiaries and to the officers of the Company and the subsidiaries and
received such information as it has deemed necessary or appropriate to conduct
its due diligence investigation.

          (e)  Accredited Purchasers. Such Purchaser is an "accredited investor"
as defined in Regulation D promulgated under the Securities Act.

          (f)  Rule 144. Such Purchaser understands that the Shares must be held
indefinitely unless such Shares are registered under the Securities Act or an
exemption from registration is available. Such Purchaser acknowledges that such
Purchaser is familiar with Rule 144 of the rules and regulations of the
Commission, as amended, promulgated pursuant to the Securities Act ("Rule 144"),
and that such person has been advised that Rule 144 permits resales

                                      -13-

<PAGE>

only under certain circumstances. Such Purchaser understands that to the extent
that Rule 144 is not available, such Purchaser will be unable to sell any Shares
without either registration under the Securities Act or the existence of another
exemption from such registration requirement.

          (g)  Investment Experience. Each Purchaser has such knowledge and
experience in financial and business matters that it is capable of evaluating
the merits and risks of the prospective investment in the Preferred Shares and
Warrants, which are substantial and has in fact evaluated such merits and risks
in making its investment decision to purchase the Preferred Shares and Warrants.
Each Purchaser, by virtue of its business and financial expertise, has the
capacity to protect its own interest in connection with this transaction, or has
consulted with tax, financial, legal or business advisors as to the
appropriateness of an investment in the Preferred Shares and Warrants. Each
Purchaser has not been organized for the purpose of investing in the Preferred
Shares and Warrants, although such investment is consistent with its purposes.

          (h)  Access to Information. Each Purchaser or its professional advisor
has been granted the opportunity to conduct a full and fair examination of the
records, documents and files of the Company, to ask questions of and receive
answers from representatives of the Company, its officers, directors, employees
and agents concerning the terms and conditions of the offering, the Company and
its business and prospects, and to obtain any additional information which the
Purchaser or its professional advisor deems necessary to verify the accuracy of
the information received. Each Purchaser further represents that it has had an
opportunity to ask questions and receive answers from the Company regarding the
terms and conditions of the offering, and any information so requested has been
made available to the full and complete satisfaction of such Purchaser. Each
Purchaser hereby confirms that it has received and examined all material
information it considers necessary to make an informed decision to invest in the
Preferred Shares and Warrants.

          (i)  No Distributor, Dealer or Underwriter. Each Purchaser is not a
distributor or dealer of the Preferred Shares and Warrants. The Purchaser is not
taking the Preferred Shares and Warrants with the intent of making a
distribution of the Preferred Shares and Warrants, as such terms are defined in
the Securities Act and the Exchange Act. In any event, if the Purchaser is
deemed to be the distributor of the Preferred Shares and Warrants offered
hereby, the Purchaser will act in accordance with applicable law.

          (j)  No Immediate Need for Liquidity. Each Purchaser understands that
each of the Preferred Shares, Warrants, Conversion Shares and Warrant Shares is
a "restricted security" within the meaning of the Securities Act, and
certificates representing the Preferred Shares, Warrants, Conversion Shares and
Warrant Shares are legended with certain restrictions on resale and may not be
resold without a valid exemption from registration under the Securities Act, or
until a registration statement is filed with respect thereto under the
Securities Act. There can be no assurance that upon registration of the
Conversion Shares and Warrant Shares pursuant to the Securities Act, that a
market for the Conversion Shares and Warrant Shares will exist on an exchange or
market or quotation system. Accordingly, each Purchaser is aware that there are
legal and practical limits on such Purchaser's ability to sell or dispose of the
Conversion Shares and Warrant Shares, and, therefore that the Purchaser must
bear the economic risk of the

                                      -14-

<PAGE>

investment for an indefinite period of time. Each Purchaser has adequate means
of providing for the Purchaser's current needs and possible personal
contingencies and has need for only limited liquidity of this investment. The
Purchaser's commitment to illiquid investments is reasonable in relation to the
Purchaser's net worth. The Purchaser is capable of bearing the high degree of
economic risks and burdens of this investment, including but not limited to the
possibility of complete loss of all its investment capital and the lack of a
liquid market, such that it may not be able to liquidate readily the investment
whenever desired or at the then current asking price.

          (k)  Private Transaction. At no time was a Purchaser presented with or
solicited by any leaflet, public promotional meeting, circular, newspaper or
magazine article, radio or television advertisement or any other form of general
advertising.

          (l)  Reliance on Own Advisors. Each Purchaser has relied completely on
the advice of, or has consulted with, its own personal tax, investment, legal or
other advisors and has not relied on the Company or any of its affiliates,
officers, directors, attorneys, accountants or any affiliates of any thereof and
each other person, if any, who controls any thereof, within the meaning of
Section 15 of the Securities Act, except to the extent such advisors shall be
deemed to be as such.

          (m)  General. Such Purchaser understands that the Shares are being
offered and sold in reliance on a transactional exemption from the registration
requirement of Federal and state securities laws and the Company is relying upon
the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of such Purchaser set forth herein in order
to determine the applicability of such exemptions and the suitability of such
Purchaser to acquire the Shares.

                                  ARTICLE III

                                    COVENANTS

     The Company covenants with each of the Purchasers as follows, which
covenants are for the benefit of the Purchasers and their permitted assignees
(as defined herein).

          Section 3.1 Securities Compliance.

          (a)  The Company shall notify the Commission in accordance with their
rules and regulations, of the transactions contemplated by any of the
Transaction Documents, including filing a Form D with respect to the Preferred
Shares, Warrants, Conversion Shares and Warrant Shares as required under
Regulation D, and shall take all other necessary action and proceedings as may
be required and permitted by applicable law, rule and regulation, for the legal
and valid issuance of the Preferred Shares, the Warrants, the Conversion Shares
and the Warrant Shares to the Purchasers or subsequent holders.

          (b)  The Company is relying upon the truth and accuracy of the
representations, warranties, agreements, acknowledgments and understandings of
such

                                      -15-

<PAGE>

Purchasers set forth herein in order to determine the applicability of Federal
and state securities laws exemptions and the suitability of such Purchasers to
acquire the Preferred Shares.

          (c)  Unless waived by a Purchaser by means of providing sixty-one (61)
days notice to the Company, the Company covenants and agrees that the number of
Conversion Shares issuable upon conversion of the Preferred Shares and the
number of Warrant Shares issuable upon any exercise of such Warrant by a
Purchaser shall not exceed the number of such shares that, when aggregated with
all other shares of Common Stock then owned by a Purchaser beneficially or
deemed beneficially owned by a Purchaser, would result in a Purchaser owning
more than 4.99% of all of such Common Stock as would be outstanding on such date
of conversion or such date of exercise of the Warrant, as determined in
accordance with Section 16 of the Exchange Act and the regulations promulgated
thereunder.

          Section 3.2 Registration and Listing. The Company will cause its
Common Stock to continue to be registered under Sections 12(b) or 12(g) of the
Exchange Act, will comply in all respects with its reporting and filing
obligations under the Exchange Act, will comply with all requirements related to
any registration statement filed pursuant to this Agreement or the Registration
Rights Agreement, and will not take any action or file any document (whether or
not permitted by the Securities Act or the rules promulgated thereunder) to
terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under the Exchange Act or Securities Act, except as
permitted herein. The Company will take all action necessary to continue the
listing or trading of its Common Stock on the over-the-counter electronic
bulletin board.

          Section 3.3 Inspection Rights. The Company shall permit, during normal
business hours and upon reasonable request and reasonable notice, each Purchaser
or any employees, agents or representatives thereof, so long as such Purchaser
shall be obligated hereunder to purchase the Preferred Shares or shall
beneficially own any Preferred Shares, or shall own Conversion Shares which, in
the aggregate, represent more than 2% of the total combined voting power of all
voting securities then outstanding, for purposes reasonably related to such
Purchaser's interests as a stockholder to examine and make reasonable copies of
and extracts from the records and books of account of, and visit and inspect the
properties, assets, operations and business of the Company and any subsidiary,
and to discuss the affairs, finances and accounts of the Company and any
subsidiary with any of its officers, consultants, directors, and key employees.

          Section 3.4 Compliance with Laws. The Company shall comply, and cause
each subsidiary to comply, with all applicable laws, rules, regulations and
orders, noncompliance with which could have a Material Adverse Effect.

          Section 3.5 Keeping of Records and Books of Account. The Company shall
keep and cause each subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

                                      -16-

<PAGE>

          Section 3.6 Reporting Requirements. If the Company ceases to file its
periodic reports with the Commission, or if the Commission ceases making these
periodic reports available via the Internet without charge, then the Company
shall furnish the following to each Purchaser so long as such Purchaser shall be
obligated hereunder to purchase the Preferred Shares or shall beneficially own
any Preferred Shares, or shall own Conversion Shares which, in the aggregate,
represent more than 2% of the total combined voting power of all voting
securities then outstanding:

          (a)  Quarterly Reports filed with the Commission on Form 10-QSB as
soon as available, and in any event within forty-five (45) days after the end of
each of the first three fiscal quarters of the Company;

          (b)  Annual Reports filed with the Commission on Form 10-KSB as soon
as available, and in any event within ninety (90) days after the end of each
fiscal year of the Company; and

          (c)  Copies of all notices and information, including without
limitation notices and proxy statements in connection with any meetings, that
are provided to holders of shares of Common Stock, contemporaneously with the
delivery of such notices or information to such holders of Common Stock.

          Section 3.7 Amendments. The Company shall not amend or waive any
provision of the Articles or Bylaws of the Company, or Registration Rights
Agreement in any way that would adversely affect the liquidation preferences,
dividends rights, conversion rights, voting rights or redemption rights of the
holders of the Preferred Shares.

          Section 3.8 Other Agreements. The Company shall not enter into any
agreement in which the terms of such agreement would restrict or impair the
right or ability to perform of the Company or any subsidiary under any
Transaction Document or the Certificate of Designation.

          Section 3.9 Distributions. So long as any Preferred Shares or Warrants
remain outstanding, the Company agrees that it shall not (i) declare or pay any
dividends or make any distributions to any holder(s) of Common Stock or (ii)
purchase or otherwise acquire for value, directly or indirectly, any Common
Stock or other equity security of the Company.

          Section 3.10 Status of Dividends. The Company covenants and agrees
that (i) no Federal income tax return or claim for refund of Federal income tax
or other submission to the Internal Revenue Service will adversely affect the
Preferred Shares, any other series of its Preferred Stock, or the Common Stock,
and any deduction shall not operate to jeopardize the availability to Purchasers
of the dividends received deduction provided by Section 243(a)(1) of the Code or
any successor provision, (ii) in no report to shareholders or to any
governmental body having jurisdiction over the Company or otherwise will it
treat the Preferred Shares other than as equity capital or the dividends paid
thereon other than as dividends paid on equity capital unless required to do so
by a governmental body having jurisdiction over the accounts of the Company or
by a change in generally accepted accounting principles required as a result of

                                      -17-

<PAGE>

action by an authoritative accounting standards setting body, and (iii) other
than pursuant to this Agreement or the Certificate of Designation, it will take
no action which would result in the dividends paid by the Company on the
Preferred Shares out of the Company's current or accumulated earnings and
profits being ineligible for the dividends received deduction provided by
Section 243(a)(1) of the Code. The preceding sentence shall not be deemed to
prevent the Company from designating the Preferred Stock as "Convertible
Preferred Stock" in its annual and quarterly financial statements in accordance
with its prior practice concerning other series of preferred stock of the
Company. Notwithstanding the foregoing, the Company shall not be required to
restate or modify its tax returns for periods prior to the Closing Date. In the
event that the Purchasers have reasonable cause to believe that dividends paid
by the Company on the Preferred Shares out of the Company's current or
accumulated earnings and profits will not be treated as eligible for the
dividends received deduction provided by Section 243(a)(1) of the Code, or any
successor provision, the Company will, at the reasonable request of the
Purchasers of 51% of the outstanding Preferred Shares, join with the Purchasers
in the submission to the Service of a request for a ruling that dividends paid
on the Shares will be so eligible for Federal income tax purposes, at the
Purchasers expense. In addition, the Company will reasonably cooperate with the
Purchasers (at Purchasers' expense) in any litigation, appeal or other
proceeding challenging or contesting any ruling, technical advice, finding or
determination that earnings and profits are not eligible for the dividends
received deduction provided by Section 243(a)(1) of the Code, or any successor
provision to the extent that the position to be taken in any such litigation,
appeal, or other proceeding is not contrary to any provision of the Code or
incurred in connection with any such submission, litigation, appeal or other
proceeding. Notwithstanding the foregoing, nothing herein contained shall be
deemed to preclude the Company from claiming a deduction with respect to such
dividends if (i) the Code shall hereafter be amended, or final Treasury
regulations thereunder are issued or modified, to provide that dividends on the
Preferred Shares or Conversion Shares should not be treated as dividends for
Federal income tax purposes or that a deduction with respect to all or a portion
of the dividends on the Shares is allowable for Federal income tax purposes, or
(ii) in the absence of such an amendment, issuance or modification and after a
submission of a request for ruling or technical advice, the service shall rule
or advise that dividends on the shares should not be treated as dividends for
Federal income tax purposes. If the Service determines that the Preferred Shares
or Conversion Shares constitute debt, the Company may file protective claims for
refund.

          Section 3.11 Reservation of Shares. So long as any of the Preferred
Shares or Warrants remain outstanding, the Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of
issuance, no less than 100% of the aggregate number of shares of Common Stock
needed to provide for the issuance of the Conversion Shares and the Warrant
Shares.

          Section 3.12 Transfer Agent Instructions. The Company shall issue
irrevocable instructions to its transfer agent, and any subsequent transfer
agent, to issue certificates, registered in the name of each Purchaser or its
respective nominee(s), for the Conversion Shares and the Warrant Shares in such
amounts as specified from time to time by each Purchaser to the Company upon
conversion of the Preferred Shares or exercise of the Warrants in the form of
Exhibit E attached hereto (the "Irrevocable Transfer Agent Instructions"). Prior
to registration of the Conversion Shares and the Warrant Shares under the
Securities Act, all such certificates shall

                                      -18-

<PAGE>

bear the restrictive legend specified in Section 5.1 of this Agreement. The
Company warrants that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 3.12 will be given by the Company to
its transfer agent and that the Shares shall otherwise be freely transferable on
the books and records of the Company as and to the extent provided in this
Agreement and the Registration Rights Agreement. Nothing in this Section 3.12
shall affect in any way each Purchaser's obligations and agreements set forth in
Section 5.1 to comply with all applicable prospectus delivery requirements, if
any, upon resale of the Shares. If a Purchaser provides the Company with an
opinion of counsel, in a generally acceptable form, to the effect that a public
sale, assignment or transfer of the Shares may be made without registration
under the Securities Act or the Purchaser provides the Company with reasonable
assurances that the Shares can be sold pursuant to Rule 144 without any
restriction as to the number of securities acquired as of a particular date that
can then be immediately sold, the Company shall permit the transfer, and, in the
case of the Conversion Shares and the Warrant Shares, promptly instruct its
transfer agent to issue one or more certificates in such name and in such
denominations as specified by such Purchaser and without any restrictive legend.
The Company acknowledges that a breach by it of its obligations under this
Section 3.12 will cause irreparable harm to the Purchasers by vitiating the
intent and purpose of the transaction contemplated hereby. Accordingly, the
Company acknowledges that the remedy at law for a breach of its obligations
under this Section 3.12 will be inadequate and agrees, in the event of a breach
or threatened breach by the Company of the provisions of this Section 3.12, that
the Purchasers shall be entitled, in addition to all other available remedies,
to an order and/or injunction restraining any breach and requiring immediate
issuance and transfer, without the necessity of showing economic loss and
without any bond or other security being required.

          Section 3.13 Subsequent Financings; Right of First Offer. (a) During
the period commencing on the Initial Closing Date and ending six (6) months
after the Initial Closing Date, the Company covenants and agrees that it will
not, without the prior written consent of the holders of a majority of the
Preferred Shares outstanding at the time consent is required, enter into any
subsequent offer or sale to, or exchange with (or other type of distribution
to), any third party (a "Subsequent Financing"), of Common Stock or any
securities convertible, exercisable or exchangeable into Common Stock, including
convertible and non-convertible debt securities (collectively, the "Financing
Securities"). For purposes of this Agreement, a Permitted Financing (as defined
hereinafter) shall not be considered a Subsequent Financing. A "Permitted
Financing" shall mean (1) shares of Common Stock to be issued to strategic
partners and/or in connection with a strategic merger or acquisition; (2) shares
of Common Stock or the issuance of options to purchase shares of Common Stock to
employees, officers, directors, consultants and vendors in accordance with the
Company's equity incentive policies; and (3) the issuance of securities pursuant
to the conversion or exercise of convertible or exercisable securities issued or
outstanding prior to the date hereof.

          (b)  During the period commencing on the Initial Closing Date and
ending on the first (1st) anniversary of the Initial Closing Date, the Company
covenants and agrees to promptly notify (in no event later than five (5) days
after making or receiving an applicable offer) in writing (a "Rights Notice")
the Purchasers of the terms and conditions of any proposed Subsequent Financing.
The Rights Notice shall describe, in reasonable detail, the proposed Subsequent
Financing, the proposed closing date of the Subsequent Financing, which shall be

                                      -19-

<PAGE>

within thirty (30) calendar days from the date of the Rights Notice, including,
without limitation, all of the terms and conditions thereof. The Rights Notice
shall provide the Purchasers an option (the "Rights Option") during the five (5)
trading days following delivery of the Rights Notice (the "Option Period") to
inform the Company whether the Purchasers will purchase all or part of the
securities being offered in such Subsequent Financing on the same, absolute
terms and conditions as contemplated by such Subsequent Financing (the "First
Refusal Rights"). Delivery of any Rights Notice constitutes a representation and
warranty by the Company that there are no other material terms and conditions,
arrangements, agreements or otherwise except for those disclosed in the Rights
Notice, to provide additional compensation to any party participating in any
proposed Subsequent Financing, including, but not limited to, additional
compensation based on changes in the Purchase Price or any type of reset or
adjustment of a purchase or conversion price or to issue additional securities
at any time after the closing date of a Subsequent Financing. If the Company
does not receive notice of exercise of the Rights Option from the Purchasers
within the Option Period, the Company shall have the right to close the
Subsequent Financing on the scheduled closing date with a third party; provided
that all of the material terms and conditions of the closing are the same as
those provided to the Purchasers in the Rights Notice. If the closing of the
proposed Subsequent Financing does not occur on that date, any closing of the
contemplated Subsequent Financing or any other Subsequent Financing shall be
subject to all of the provisions of this Section 3.13, including, without
limitation, the delivery of a new Rights Notice. The provisions of this Section
3.13(b) shall not apply to issuances of Financing Securities in a Permitted
Financing.

          (c)  During the period commencing on the Initial Closing Date and
ending on the second (2nd) anniversary of the Initial Closing Date, if the
Company enters into any Subsequent Financing on terms more favorable than the
terms governing the Preferred Shares, then the Purchasers in their sole
discretion may exchange the Preferred Shares, valued at their stated value,
together with accrued but unpaid dividends (which dividends shall be payable, at
the sole option of the Purchasers, in cash or in the form of the new securities
to be issued in the Subsequent Financing) for the securities issued or to be
issued in the Subsequent Financing. The Company covenants and agrees to promptly
notify in writing the Purchasers of the terms and conditions of any such
proposed Subsequent Financing.

          Section 3.14 Form 8-K. The Company shall file a Form 8-K with the
Commission within five (5) business days of the Initial Closing Date which shall
provide general guidance with respect to the Company's estimated quarterly
revenue growth and cash flow for the four quarters following the Initial Closing
Date.

                                      -20-

<PAGE>

                                   ARTICLE IV

                                   CONDITIONS

          Section 4.1 Conditions Precedent to the Obligation of the Company to
Sell the Shares. The obligation hereunder of the Company to issue and sell the
Preferred Shares and the Warrants to the Purchasers is subject to the
satisfaction or waiver, at or before each Closing, of each of the conditions set
forth below. These conditions are for the Company's sole benefit and may be
waived by the Company at any time in its sole discretion.

          (a)  Accuracy of Each Purchaser's Representations and Warranties. The
representations and warranties of each Purchaser shall be true and correct in
all material respects as of the date when made and as of each Closing Date as
though made at that time, except for representations and warranties that are
expressly made as of a particular date, which shall be true and correct in all
material respects as of such date.

          (b)  Performance by the Purchasers. Each Purchaser shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by such Purchaser at or prior to each Closing.

          (c)  No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

          Section 4.2 Conditions Precedent to the Obligation of the Purchasers
to Purchase the Shares. The obligation hereunder of each Purchaser to acquire
and pay for the Preferred Shares and the Warrants is subject to the satisfaction
or waiver, at or before each Closing, of each of the conditions set forth below.
These conditions are for each Purchaser's sole benefit and may be waived by such
Purchaser at any time in its sole discretion.

          (a)  Accuracy of the Company's Representations and Warranties. Each of
the representations and warranties of the Company shall be true and correct in
all material respects as of the date when made and as of each Closing Date as
though made at that time (except for representations and warranties that speak
as of a particular date), which shall be true and correct in all material
respects as of such date.

          (b)  Performance by the Company. The Company shall have performed,
satisfied and complied in all respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to each Closing.

          (c)  No Suspension, Etc. From the date hereof to the Closing Date,
trading in the Company's Common Stock shall not have been suspended by the
Commission (except for any suspension of trading of limited duration agreed to
by the Company, which suspension shall

                                      -21-

<PAGE>

be terminated prior to the Closing), and, at any time prior to the Closing,
trading in securities generally as reported by Bloomberg Financial Markets
("Bloomberg") shall not have been suspended or limited, or minimum prices shall
not have been established on securities whose trades are reported by Bloomberg,
or on the New York Stock Exchange, nor shall a banking moratorium have been
declared either by the United States or New York State authorities, nor shall
there have occurred any material outbreak or escalation of hostilities or other
national or international calamity or crisis of such magnitude in its effect on,
or any material adverse change in any financial market which, in each case, in
the judgment of such Purchaser, makes it impracticable or inadvisable to
purchase the Preferred Shares.

          (d)  No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

          (e)  No Proceedings or Litigation. No action, suit or proceeding
before any arbitrator or any governmental authority shall have been commenced,
and no investigation by any governmental authority shall have been threatened,
against the Company or any subsidiary, or any of the officers, directors or
affiliates of the Company or any subsidiary seeking to restrain, prevent or
change the transactions contemplated by this Agreement, or seeking damages in
connection with such transactions.

          (f)  Certificate of Designation of Rights and Preferences. Prior to
the Initial Closing, the Certificate of Designation in the form of Exhibit C
attached hereto shall have been filed with the Secretary of State of Delaware.

          (g)  Opinion of Counsel, Etc. At each Closing, the Purchasers shall
have received an opinion of counsel to the Company, dated the date of such
Closing, in the form of Exhibit F hereto, and such other certificates and
documents as the Purchasers or its counsel shall reasonably require incident to
such Closing.

          (h)  Registration Rights Agreement. At the Initial Closing, the
Company shall have executed and delivered the Registration Rights Agreement to
each Purchaser.

          (i)  Certificates. The Company shall have executed and delivered to
the Purchasers the certificates (in such denominations as such Purchaser shall
request) for the Preferred Shares and Warrants being acquired by such Purchaser
at each Closing.

          (j)  Resolutions. The Board of Directors of the Company shall have
adopted resolutions consistent with Section 2.1(b) above in a form reasonably
acceptable to such Purchaser (the "Resolutions").

          (k)  Reservation of Shares. As of each Closing Date, the Company shall
have reserved out of its authorized and unissued Common Stock, solely for the
purpose of effecting the conversion of the Preferred Shares and the exercise of
the Warrants, a number of shares of

                                      -22-

<PAGE>

Common Stock equal to at least 100% of the aggregate number of Conversion Shares
issuable upon conversion of the Preferred Shares outstanding on the Closing Date
and the number of Warrant Shares issuable upon exercise of the number of
Warrants assuming such Warrants were granted on the Initial Closing Date (after
giving effect to the Preferred Shares and the Warrants to be issued on the
Initial Closing Date and assuming all such Preferred Shares and Warrants were
fully convertible or exercisable on such date regardless of any limitation on
the timing or amount of such conversions or exercises).

          (l)  Transfer Agent Instructions. The Irrevocable Transfer Agent
Instructions, in the form of Exhibit E attached hereto, shall have been
delivered to and acknowledged in writing by the Company's transfer agent.

          (m)  Secretary's Certificate. The Company shall have delivered to such
Purchaser a secretary's certificate, dated as of each Closing Date, as to (i)
the Resolutions, (ii) the Articles, (iii) the Bylaws, (iv) the Certificate of
Designation, each as in effect at the Closing, and (v) the authority and
incumbency of the officers of the Company executing the Transaction Documents
and any other documents required to be executed or delivered in connection
therewith.

          (n)  Officer's Certificate. The Company shall have delivered to the
Purchasers a certificate of an executive officer of the Company, dated as of
each Closing Date, confirming the accuracy of the Company's representations,
warranties and covenants as of such Closing Date and confirming the compliance
by the Company with the conditions precedent set forth in this Section 4.2 as of
such Closing Date.

          (o)  Material Adverse Effect. No Material Adverse Effect shall have
occurred at or before each Closing Date.

                                   ARTICLE V

                            STOCK CERTIFICATE LEGEND

          Section 5.1 Legend. Each certificate representing the Preferred Shares
and the Warrants, and, if appropriate, securities issued upon conversion
thereof, shall be stamped or otherwise imprinted with a legend substantially in
the following form (in addition to any legend required by applicable state
securities or "blue sky" laws):

          THESE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES")
          HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
          (THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE
          SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
          SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE
          VIALINK COMPANY SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT
          REGISTRATION OF SUCH SECURITIES UNDER

                                      -23-

<PAGE>

          THE SECURITIES AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
          LAWS IS NOT REQUIRED.

          The Company agrees to reissue certificates representing the Shares
without the legend set forth above if at such time, prior to making any transfer
of any Shares or Shares, such holder thereof shall give written notice to the
Company describing the manner and terms of such transfer and removal as the
Company may reasonably request. Such proposed transfer will not be effected
until: (a) the Company has notified such holder that either (i) in the opinion
of Company counsel, the registration of such Shares under the Securities Act is
not required in connection with such proposed transfer; or (ii) a registration
statement under the Securities Act covering such proposed disposition has been
filed by the Company with the Commission and has become effective under the
Securities Act; and (b) the Company has notified such holder that either: (i) in
the opinion of Company counsel, the registration or qualification under the
securities or "blue sky" laws of any state is not required in connection with
such proposed disposition, or (ii) compliance with applicable state securities
or "blue sky" laws has been effected. The Company will use its best efforts to
respond to any such notice from a holder within ten (10) days. In the case of
any proposed transfer under this Section 5, the Company will use reasonable
efforts to comply with any such applicable state securities or "blue sky" laws,
but shall in no event be required, in connection therewith, to qualify to do
business in any state where it is not then qualified or to take any action that
would subject it to tax or to the general service of process in any state where
it is not then subject. The restrictions on transfer contained in Section 5.1
shall be in addition to, and not by way of limitation of, any other restrictions
on transfer contained in any other section of this Agreement.

                                   ARTICLE VI

                                 INDEMNIFICATION

          Section 6.1 General Indemnity. The Company agrees to indemnify and
hold harmless the Purchasers and any placement agent or sub-placement agent (and
their respective directors, officers, affiliates, agents, successors and
assigns) from and against any and all losses, liabilities, deficiencies, costs,
damages and expenses (including, without limitation, reasonable attorneys' fees,
charges and disbursements) incurred by the Purchasers as a result of any
inaccuracy in or breach of the representations, warranties or covenants made by
the Company herein. Each Purchaser severally but not jointly agrees to indemnify
and hold harmless the Company and its directors, officers, affiliates, agents,
successors and assigns from and against any and all losses, liabilities,
deficiencies, costs, damages and expenses (including, without limitation,
reasonable attorneys' fees, charges and disbursements) incurred by the Company
as result of any inaccuracy in or breach of the representations, warranties or
covenants made by such Purchaser herein.

          Section 6.2 Indemnification Procedure. Any party entitled to
indemnification under this Article VI (an "indemnified party") will give written
notice to the indemnifying party of any matters giving rise to a claim for
indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the

                                      -24-

<PAGE>

indemnifying party of its obligations under this Article VI except to the extent
that the indemnifying party is actually prejudiced by such failure to give
notice. In case any action, proceeding or claim is brought against an
indemnified party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of the indemnified party a conflict of interest between it
and the indemnifying party may exist with respect of such action, proceeding or
claim, to assume the defense thereof with counsel reasonably satisfactory to the
indemnified party. In the event that the indemnifying party advises an
indemnified party that it will contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, such person of its election to defend, settle or
compromise, at its sole cost and expense, any action, proceeding or claim (or
discontinues its defense at any time after it commences such defense), then the
indemnified party may, at its option, defend, settle or otherwise compromise or
pay such action or claim. In any event, unless and until the indemnifying party
elects in writing to assume and does so assume the defense of any such claim,
proceeding or action, the indemnified party's costs and expenses arising out of
the defense, settlement or compromise of any such action, claim or proceeding
shall be losses subject to indemnification hereunder. The indemnified party
shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to
the indemnified party which relates to such action or claim. The indemnifying
party shall keep the indemnified party fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. If
the indemnifying party elects to defend any such action or claim, then the
indemnified party shall be entitled to participate in such defense with counsel
of its choice at its sole cost and expense. The indemnifying party shall not be
liable for any settlement of any action, claim or proceeding effected without
its prior written consent. Notwithstanding anything in this Article VI to the
contrary, the indemnifying party shall not, without the indemnified party's
prior written consent, settle or compromise any claim or consent to entry of any
judgment in respect thereof which imposes any future obligation on the
indemnified party or which does not include, as an unconditional term thereof,
the giving by the claimant or the plaintiff to the indemnified party of a
release from all liability in respect of such claim. The indemnification
required by this Article VI shall be made by periodic payments of the amount
thereof during the course of investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred, so long as the
indemnified party irrevocably agrees to refund such moneys if it is ultimately
determined by a court of competent jurisdiction that such party was not entitled
to indemnification. The indemnity agreements contained herein shall be in
addition to (a) any cause of action or similar rights of the indemnified party
against the indemnifying party or others, and (b) any liabilities the
indemnifying party may be subject to pursuant to the law.

                                  ARTICLE VII

                                  MISCELLANEOUS

          Section 7.1 Fees and Expenses. Except as otherwise set forth in this
Agreement, the Registration Rights Agreement or the Certificate of Designation,
each party shall

                                      -25-

<PAGE>

pay the fees and expenses of its advisors, counsel, accountants and other
experts, if any, and all other expenses, incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement,
provided that the Company shall pay, at the Closing, (i) all actual attorneys'
fees and expenses (exclusive of disbursements and out-of-pocket expenses)
incurred by the Purchasers up to $25,000 in connection with the preparation,
negotiation, execution and delivery of this Agreement, the Registration Rights
Agreement and the transactions contemplated thereunder and (ii) placement agent
fees to the placement agent referred to on Schedule 2.1(p) hereto. In addition,
the Company shall pay all reasonable fees and expenses incurred by the
Purchasers in connection with the filing and declaration of effectiveness by the
Commission of the Registration Statement (as defined in the Registration Rights
Agreement) any amendments, modifications or waivers of this Agreement or any of
the other Transaction Documents, or incurred in connection with the enforcement
of this Agreement or any of the other Transaction Documents, including, without
limitation, all reasonable attorneys' fees and expenses. The Company shall pay
all stamp or other similar taxes and duties levied in connection with issuance
of the Preferred Shares pursuant hereto.

          Section 7.2 Specific Enforcement, Consent to Jurisdiction.

          (a)  The Company and the Purchasers acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement, the Certificate of Designation or the Registration Rights Agreement
were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent or cure breaches of the provisions of this
Agreement or the Registration Rights Agreement and to enforce specifically the
terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

          (b)  Each of the Company and the Purchasers (i) hereby irrevocably
submits to the jurisdiction of the United States District Court sitting in the
Southern District of New York and the courts of the State of New York located in
New York county for the purposes of any suit, action or proceeding arising out
of or relating to this Agreement or any of the other Transaction Documents or
the transactions contemplated hereby or thereby and (ii) hereby waives, and
agrees not to assert in any such suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of such court, that the suit,
action or proceeding is brought in an inconvenient forum or that the venue of
the suit, action or proceeding is improper. Each of the Company and the
Purchasers consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing in this
Section 7.2 shall affect or limit any right to serve process in any other manner
permitted by law.

          Section 7.3 Entire Agreement; Amendment. This Agreement contains the
entire understanding of the parties with respect to the matters covered hereby
and, except as specifically set forth herein or in the Transaction Documents or
the Certificate of Designation, neither the Company nor any of the Purchasers
makes any representations, warranty, covenant or undertaking with respect to
such matters and they supersede all prior understandings and

                                      -26-

<PAGE>

agreements with respect to said subject matter, all of which are merged herein.
No provision of this Agreement may be waived or amended other than by a written
instrument signed by the Company and the holders of at least three-fourths (3/4)
of the shares of Series D Convertible Preferred Stock then outstanding, and no
provision hereof may be waived other than by an a written instrument signed by
the party against whom enforcement of any such amendment or waiver is sought. No
such amendment shall be effective to the extent that it applies to less than all
of the holders of the Preferred Shares then outstanding. No consideration shall
be offered or paid to any person to amend or consent to a waiver or modification
of any provision of any of the Transaction Documents or the Certificate of
Designation unless the same consideration is also offered to all of the parties
to the Transaction Documents or holders of Preferred Shares, as the case may be.

          Section 7.4 Notices. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery by telex (with correct answer back
received), telecopy or facsimile at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

          If to the Company:    The viaLink Company
                                13155 Noel Road
                                Suite 700
                                Dallas, Texas 75240
                                Attention: Chief Executive Officer and
                                Chief Financial Officer
                                Tel. No.: (972) 934-5500
                                Fax No.:  (972) 934-5583

          If to any Purchaser:  At the address of such Purchaser set
                                forth on Exhibit A to this Agreement, with
                                copies to Purchaser's counsel as set
                                forth on Exhibit A or as specified in writing by
                                such Purchaser with copies to:

                                Jenkens & Gilchrist Parker Chapin LLP
                                The Chrysler Building
                                405 Lexington Avenue
                                New York, New York 10174
                                Attention: Christopher S. Auguste, Esq.
                                Tel No.: (212) 704-6000
                                Fax No.: (212) 704-6288

                                      -27-

<PAGE>

     Any party hereto may from time to time change its address for notices by
giving at least ten (10) days written notice of such changed address to the
other party hereto.

          Section 7.5 Waivers. No waiver by either party of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any other
provisions, condition or requirement hereof, nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the exercise of
any such right accruing to it thereafter.

          Section 7.6 Headings. The article, section and subsection headings in
this Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

          Section 7.7 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and assigns.
After the Closing, the assignment by a party to this Agreement of any rights
hereunder shall not affect the obligations of such party under this Agreement.

          Section 7.8 No Third Party Beneficiaries. This Agreement is intended
for the benefit of the parties hereto and their respective permitted successors
and assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

          Section 7.9 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving effect to the choice of law provisions. This Agreement shall not
interpreted or construed with any presumption against the party causing this
Agreement to be drafted.

          Section 7.10 Survival. The representations and warranties of the
Company and the Purchasers contained in Sections 2.1(o) and (s) should survive
indefinitely and those contained in Article II, with the exception of Sections
2.1(o) and (s), shall survive the execution and delivery hereof and the Closing
until the date three (3) years from the Closing Date, and the agreements and
covenants set forth in Articles I, III, V, VIII and IX of this Agreement shall
survive the execution and delivery hereof and the Closing hereunder until the
Purchasers in the aggregate beneficially own (determined in accordance with Rule
13d-3 under the Exchange Act) less than 2% of the total combined voting power of
all voting securities then outstanding, provided, that Sections 3.1, 3.2, 3.4,
3.5, 3.7, 3.8, 3.9, 3.10 and 3.12 shall not expire until the Registration
Statement required by Section 2 of the Registration Rights Agreement is no
longer required to be effective under the terms and conditions of Registration
Rights Agreement.

          Section 7.11 Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and shall become effective when counterparts have been signed by
each party and delivered to the other parties hereto, it being understood that
all parties need not sign the same counterpart. In the event any signature is
delivered by facsimile transmission, the party using such means of delivery
shall cause four additional executed signature pages to be physically delivered
to the other parties within five days of the execution and delivery hereof.

                                      -28-

<PAGE>

          Section 7.12 Publicity. The Company agrees that it will not disclose,
and will not include in any public announcement, the name of the Purchasers
without the consent of the Purchasers unless and until such disclosure is
required by law or applicable regulation, and then only to the extent of such
requirement.

          Section 7.13 Severability. The provisions of this Agreement, the
Certificate of Designation and the Registration Rights Agreement are severable
and, in the event that any court of competent jurisdiction shall determine that
any one or more of the provisions or part of the provisions contained in this
Agreement, the Certificate of Designation or the Registration Rights Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision or part of a provision of this Agreement, the Certificate of
Designation or the Registration Rights Agreement shall be reformed and construed
as if such invalid or illegal or unenforceable provision, or part of such
provision, had never been contained herein, so that such provisions would be
valid, legal and enforceable to the maximum extent possible.

          Section 7.14 Further Assurances. From and after the date of this
Agreement, upon the request of any Purchaser or the Company, each of the Company
and the Purchasers shall execute and deliver such instrument, documents and
other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Agreement, the
Preferred Shares, the Conversion Shares, the Warrants, the Warrant Shares, the
Certificate of Designation, and the Registration Rights Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -29-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officer as of the date first above
written.

                                        THE VIALINK COMPANY

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        PURCHASER

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        PURCHASER

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        PURCHASER

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      -30-

<PAGE>

                                EXHIBIT A TO THE
             SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT
                             FOR THE VIALINK COMPANY

                                   PURCHASERS

NAMES AND ADDRESSES           NUMBER OF PREFERRED SHARES           DOLLAR AMOUNT
   OF PURCHASERS                 & WARRANTS PURCHASED              OF INVESTMENT
-------------------           --------------------------           -------------

<PAGE>

                                EXHIBIT B TO THE
           SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR
                               THE VIALINK COMPANY

                                 FORM OF WARRANT

<PAGE>

                                EXHIBIT C TO THE
           SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR
                               THE VIALINK COMPANY

                       FORM OF CERTIFICATE OF DESIGNATION

<PAGE>

                                EXHIBIT D TO THE
           SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR
                               THE VIALINK COMPANY

                      FORM OF REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                EXHIBIT E TO THE
          SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR
                              THE VIALINK COMPANY

                 FORM OF IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

                               THE VIALINK COMPANY

                                                        as of September 30, 2002

[Name and address of Transfer Agent]
Attn: _____________________________

LADIES AND GENTLEMEN:

          Reference is made to that certain Series D Convertible Preferred Stock
Purchase Agreement, dated as of September 30, 2002, by and among The viaLink
Company, a Delaware corporation (the "COMPANY"), and the purchasers named
therein (collectively, the "PURCHASERS") pursuant to which the Company is
issuing to the Purchasers shares of its Series D Convertible Preferred Stock,
par value $.001 per share, (the "PREFERRED SHARES") and warrants (the
"WARRANTS") to purchase shares of the Company's common stock, par value $.001
per share (the "COMMON STOCK") Warrants in connection with the sale and issuance
of Preferred Shares and Warrants to the Purchasers. This letter shall serve as
our irrevocable authorization and direction to you (provided that you are the
transfer agent of the Company at such time) to issue shares of Common Stock upon
conversion of the Preferred Shares (the "CONVERSION SHARES") and exercise of the
Warrants (the "WARRANT SHARES") to or upon the order of a Purchaser from time to
time upon (i) surrender to you of a properly completed and duly executed
Conversion Notice or Exercise Notice, as the case may be, in the form attached
hereto as Exhibit I and Exhibit II, respectively, (ii) in the case of the
conversion of Preferred Shares, a copy of the certificates (with the original
certificates delivered to the Company) representing Preferred Shares being
converted or, in the case of Warrants being exercised, a copy of the Warrants
(with the original Warrants delivered to the Company) being exercised (or, in
each case, an indemnification undertaking with respect to such share
certificates or the warrants in the case of their loss, theft or destruction),
and (iii) delivery of a treasury order or other appropriate order duly executed
by a duly authorized officer of the Company. So long as you have previously
received (x) written confirmation from counsel to the Company that a
registration statement covering resales of the Conversion Shares or Warrant
Shares, as applicable, has been declared effective by the Securities and
Exchange Commission (the "SEC") under the Securities Act of 1933, as amended
(the "1933 ACT"), and no subsequent notice by the Company or its counsel of the
suspension or termination of its effectiveness and (y) a copy of such
registration statement, and if the Purchaser represents in writing that the
Conversion Shares or the Warrant Shares, as the case may be, were sold pursuant
to the Registration Statement, then certificates representing the Conversion
Shares and the Warrant Shares, as the case may be, shall not bear any legend
restricting transfer of the Conversion Shares and the Warrant Shares, as the
case may be, thereby and should not be subject to any stop-transfer restriction.
Provided, however, that if you have not previously received (i) written
confirmation from counsel to the Company that a registration statement covering
resales of the Conversion Shares or Warrant Shares, as applicable, has been
declared effective by the SEC under the 1933 Act, and (ii) a copy of such
registration statement, then the certificates for the Conversion Shares and the
Warrant Shares shall bear the following legend:

<PAGE>

                    "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
          BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
          TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
          SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS, OR THE VIALINK
          COMPANY SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT
          REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
          PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED."

and, provided further, that the Company may from time to time notify you to
place stop-transfer restrictions on the certificates for the Conversion Shares
and the Warrant Shares in the event a registration statement covering the
Conversion Shares and the Warrant Shares is subject to amendment for events then
current.

          A form of written confirmation from counsel to the Company that a
registration statement covering resales of the Conversion Shares and the Warrant
Shares has been declared effective by the SEC under the 1933 Act is attached
hereto as Exhibit III.

          Please be advised that the Purchasers are relying upon this letter as
an inducement to enter into the Securities Purchase Agreement and, accordingly,
each Purchaser is a third party beneficiary to these instructions.

          Please execute this letter in the space indicated to acknowledge your
agreement to act in accordance with these instructions. Should you have any
questions concerning this matter, please contact me at ___________.

                                           Very truly yours,

                                           THE VIALINK COMPANY

                                           By:
                                               ---------------------------------
                                               Name:
                                                     ---------------------------
                                               Title:
                                                     ---------------------------

ACKNOWLEDGED AND AGREED:

[TRANSFER AGENT]

By:
       ---------------------------------
Name:
       ---------------------------------
Title:
       ---------------------------------
Date:
       ------------------

<PAGE>

                                    EXHIBIT I

                               THE VIALINK COMPANY
                                CONVERSION NOTICE

Reference is made to the Certificate of Designation of the Relative Rights and
Preferences of the Series D Preferred Stock of The viaLink Company (the
"Certificate of Designation"). In accordance with and pursuant to the
Certificate of Designation, the undersigned hereby elects to convert the number
of shares of Series D Preferred Stock, par value $.001 per share (the "Preferred
Shares"), of The viaLink Company, a Delaware corporation (the "Company"),
indicated below into shares of Common Stock, par value $.001 per share (the
"Common Stock"), of the Company, by tendering the stock certificate(s)
representing the share(s) of Preferred Shares specified below as of the date
specified below.

     Date of Conversion: _______________________________________________________

     Number of Preferred Shares to be converted: _______________________________

     Stock certificate no(s). of Preferred Shares to be converted: _____________

     The Common Stock have been sold pursuant to the Registration Statement (as
defined in the Registration Rights Agreement): YES ____      NO____

Please confirm the following information:

     Conversion Price:

     Number of shares of Common Stock to be issued: ____________________________

Please issue the Common Stock into which the Preferred Shares are being
converted and, if applicable, any check drawn on an account of the Company in
the following name and to the following address:

     Issue to:                          ________________________________________

                                        ________________________________________

     Facsimile Number:                  ________________________________________

     Authorization:                     ________________________________________
                                        By:
                                            ____________________________________
                                        Title:
                                               _________________________________

     Dated:

                                 PRICES ATTACHED

<PAGE>

                                   EXHIBIT II

                             FORM OF EXERCISE NOTICE

                                  EXERCISE FORM

                               THE VIALINK COMPANY

The undersigned _______________, pursuant to the provisions of the within
Warrant, hereby elects to purchase _____ shares of Common Stock of The viaLink
Company covered by the within Warrant.

Dated: _________________        Signature ______________________________________

                                Address ________________________________________

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________        Signature ______________________________________

                                Address ________________________________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________        Signature ______________________________________

                                Address ________________________________________

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. W-_____ canceled (or transferred or exchanged) this _____ day
of ___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _______________.

<PAGE>

                                   EXHIBIT III

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[Name and address of Transfer Agent]
Attn:  _____________

               Re:  THE VIALINK COMPANY

Ladies and Gentlemen:

     We are counsel to The viaLink Company, a Delaware corporation (the
"COMPANY"), and have represented the Company in connection with that certain
Series D Convertible Preferred Stock Purchase Agreement (the "PURCHASE
AGREEMENT"), dated as of September 30, 2002, by and among the Company and the
purchasers named therein (collectively, the "PURCHASERS") pursuant to which the
Company issued to the Purchasers shares of its Series D Convertible Preferred
Stock, par value $.001 per share, (the "PREFERRED SHARES") and warrants (the
"WARRANTS") to purchase shares of the Company's common stock, par value $.001
per share (the "COMMON STOCK"). Pursuant to the Purchase Agreement, the Company
has also entered into a Registration Rights Agreement with the Purchasers (the
"REGISTRATION RIGHTS AGREEMENT"), dated as of September 30, 2002, pursuant to
which the Company agreed, among other things, to register the Registrable
Securities (as defined in the Registration Rights Agreement), including the
shares of Common Stock issuable upon conversion of the Preferred Shares and
exercise of the Warrants, under the Securities Act of 1933, as amended (the
"1933 ACT"). In connection with the Company's obligations under the Registration
Rights Agreement, on ________________, 2002, the Company filed a Registration
Statement on Form S-2 (File No. 333-________) (the "REGISTRATION STATEMENT")
with the Securities and Exchange Commission (the "SEC") relating to the resale
of the Registrable Securities which names each of the present Purchasers as a
selling stockholder thereunder.

     In connection with the foregoing, we advise you that a member of the SEC's
staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF
EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after
telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and accordingly, the
Registrable Securities are available for resale under the 1933 Act pursuant to
the Registration Statement.

                                        Very truly yours,

                                        [COMPANY COUNSEL]

                                        By:
                                            ------------------------------------

cc:  [LIST NAMES OF PURCHASERS]

<PAGE>

                                EXHIBIT F TO THE
           SERIES D CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR
                               THE VIALINK COMPANY

                           FORM OF OPINION OF COUNSEL

          1.   The Company is a corporation duly incorporated, validly existing
and in good standing under the laws of the state of Delaware and has the
requisite corporate power to own, lease and operate its properties and assets,
and to carry on its business as presently conducted. The company is duly
qualified as a foreign corporation to do business and is in good standing in
every jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary.

          2.   The Company has the requisite corporate power and authority to
enter into and perform its obligations under the Transaction Documents and to
issue the Preferred Stock, the Warrants and the Common Stock issuable upon
conversion of the Preferred Stock and exercise of the Warrants. The execution,
delivery and performance of each of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated thereby have been duly
and validly authorized by all necessary corporate action and no further consent
or authorization of the Company or its Board of Directors or stockholders is
required. Each of the Transaction Documents have been duly executed and
delivered, and the Preferred Stock and the Warrants have been duly executed,
issued and delivered by the Company and each of the Transaction Documents
constitutes a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its respective terms. The Common Stock
issuable upon conversion of the Preferred Stock and exercise of the Warrants are
not subject to any preemptive rights under the Articles of Incorporation or the
Bylaws.

          3.   The Preferred Stock and the Warrants have been duly authorized
and, when delivered against payment in full as provided in the Purchase
Agreement, will be validly issued, fully paid and nonassessable. The shares of
Common Stock issuable upon conversion of the Preferred Stock and exercise of the
Warrants, have been duly authorized and reserved for issuance, and, when
delivered upon conversion or against payment in full as provided in the
Certificate of Designation and the Warrants, as applicable, will be validly
issued, fully paid and nonassessable.

          4.   The execution, delivery and performance of and compliance with
the terms of the Transaction Documents and the issuance of the Preferred Stock,
the Warrants and the Common Stock issuable upon conversion of the Preferred
Stock and exercise of the Warrants do not (i) violate any provision of the
Articles of Incorporation or Bylaws, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, mortgage, deed of trust, indenture,
note, bond, license, lease agreement, instrument or obligation to which the
Company is a party, (iii) create or impose a lien, charge or encumbrance on any
property of the Company under any agreement or any commitment to which the
Company is a party or by which the Company is bound or by which any of its
respective properties or assets are bound, or (iv) (a) result in a violation of
any federal, state, local or foreign statute, rule, regulation, order, judgment,
injunction or decree (including Federal and state securities laws and
regulations) applicable to the Company or by which any property or asset of the
Company is bound or affected, except, in all cases other than violations
pursuant to clause (i) above, for such conflicts, default, terminations,
amendments, acceleration, cancellations and violations as would not,
individually or in the aggregate, have a Material Adverse Effect.

<PAGE>

          5.   No consent, approval or authorization of or designation,
declaration or filing with any governmental authority on the part of the Company
is required under Federal, state or local law, rule or regulation in connection
with the valid execution and delivery of the Transaction Documents, or the
offer, sale or issuance of the Preferred Stock, the Warrants or the Common Stock
issuable upon conversion of the Preferred Stock and exercise of the Warrants
other than the Certificate of Designation and the Registration Statement.

          6.   There is no action, suit, claim, investigation or proceeding
pending or threatened against the Company which questions the validity of this
Agreement or the transactions contemplated hereby or any action taken or to be
taken pursuant hereto or thereto. There is no action, suit, claim, investigation
or proceeding pending, or to our knowledge, threatened, against or involving the
Company or any of its properties or assets and which, if adversely determined,
is reasonably likely to result in a Material Adverse Effect. There are no
outstanding orders, judgments, injunctions, awards or decrees of any court,
arbitrator or governmental or regulatory body against the Company or any
officers or directors of the Company in their capacities as such.

          7.   The offer, issuance and sale of the Preferred Stock and the
Warrants and the offer, issuance and sale of the shares of Common Stock issuable
upon conversion of the Preferred Stock and exercise of the Warrants pursuant to
the Purchase Agreement, the Certificate of Designation and the Warrants, as
applicable, are exempt from the registration requirements of the Securities Act.

          8.   The Company is not, and as a result of and immediately upon
Closing will not be, an "investment company" or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended.

                                        Very truly yours,

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