Document:

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                                                                     Exhibit 4.1
                                                                     -----------

                            RESTRUCTURING AGREEMENT

     THIS RESTRUCTURING AGREEMENT (this "Agreement") is made as of the 19/th/
day of April, 2001, by and among GENERAL ELECTRIC CAPITAL CORPORATION ("GE
Capital"), TRANSIT GROUP, INC. ("Transit Group"), CARROLL FULMER & COMPANY,
INC., J & L TRUCK LEASING OF FARMINGTON, INC. and TRANSIT GROUP TRANSPORTATION,
LLC ("TGT") (collectively, the "Transit Group Subsidiaries").

     Transit Group and/or the Transit Group Subsidiaries (or predecessors
thereto) and GE Capital and/or its affiliates (directly or indirectly by means
of an assignment from the original party) have heretofore entered into those
certain lease agreements described on Schedule A attached hereto (each, a "Lease
Agreement" and collectively, the "Lease Agreements"), those certain security
agreements described on Schedule B attached hereto (each, a "Security Agreement"
and collectively, the "Security Agreements"), and those certain promissory notes
described on Schedule C attached hereto (each, a "Promissory Note" and
collectively, the "Promissory Notes"). Transit Group, the Transit Group
Subsidiaries and certain predecessors in interest to the Transit Group
Subsidiaries have heretofore executed that certain Agreement of Amendment dated
as of December 31, 1998 (the "Amendment"), providing for the assignment to and
assumption by Transit Group Transportation, LLC of certain rights and
obligations under the Lease Agreements, the Security Agreements and the
Promissory Notes. The Lease Agreements, the Promissory Notes and the Amendment
are sometimes hereinafter collectively referred to as the "Operative
Agreements". The obligations of Transit Group and the Transit Group Subsidiaries
pursuant to the Operative Agreements are collectively referred to as the
"Obligations". The Obligations are guaranteed, in whole or in part, by those
certain guaranties described on Schedule D attached hereto (each, an "Existing
Guaranty" and collectively, the "Existing Guaranties") executed by the
guarantors specified on Schedule C attached hereto (each, an "Existing
Guarantor" and collectively, the "Existing Guarantors").

     The parties have determined that the Amendment contained an error in that
Carroll Fulmer & Company, Inc. was not merged into TGT as reflected in the
Amendment and the obligations of Carroll Fulmer & Company, Inc. with respect to
the Operative Agreements were not assigned to, and assured by, TGT as reflected
therein. Furthermore, subsequent to the Amendment, Rainbow Trucking Services,
Inc. was merged into TGT as of December 31, 1999, and the parties desire to
reflect the assignment to, and assumption by, TGT of all obligations of Rainbow
Trucking Services, Inc. pursuant to the Operative Documents.

     Certain events more particularly described in Schedule E hereto have
occurred under the Operative Agreements and the Security Agreements which
constitute or would constitute defaults thereunder (such events being
hereinafter called the "Designated Defaults"). Transit Group and the Transit
Group Subsidiaries have requested that GE Capital waive such Designated Defaults
and restructure the Obligations by permitting: the assignment to, and assumption
by Transit Group of the rights and obligations of the Transit Group Subsidiaries
pursuant to the Operative Agreements; the amendment and restatement of the
Operative Agreements to include a revised payment structure and revised terms
and conditions as specified in the amended and restated Operative Agreements the
"Amended Operative Agreements"). The obligations of Transit Group pursuant to
the Amended Operative Agreements are collectively referred to as the "Transit
Group Obligations".
<PAGE>

     In order to induce GE Capital to consent to the foregoing, the Transit
Group Obligations are to be guaranteed by the Transit Group Subsidiaries; the
Existing Guaranties shall remain in full force and effect and applicable to the
Transit Group Obligations to the extent the Existing Guaranties were applicable
to the Obligations assigned to Transit Group hereunder; and the Security
Agreements shall be amended and restated in the form of the Amended and Restated
Master Security Agreement attached hereto as Exhibit No. 1 (the "Amended
Security Agreement"), and shall secure the Transit Group Obligations. GE Capital
is willing to restructure the Obligations and to amend and restate the Operative
Agreements as hereinafter set forth.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

     1.   Restructuring. Subject to satisfaction of the conditions specified
          -------------
herein:

          (a)  Retroactively effective as of December 31, 1999, all right,
title, interest and obligations of Rainbow Trucking Services, Inc. pursuant to
the Operative Agreements are hereby assigned to TGT.

          (b)  All right, title, interest and obligations of the Transit Group
Subsidiaries, individually, pursuant to the Operative Agreements are hereby
assigned to Transit Group; and Transit Group hereby assumes all such
Obligations. GE Capital consents to such assignment and assumption.

          (c)  The Lease Agreements are consolidated, amended and restated in
the form of the Amended and Restated Master Lease Agreement attached hereto as
Exhibit No. 2 (the "Amended Lease").

          (d)  The Promissory Notes are consolidated, amended and restated in
the form of the Amended and Restated Promissory Note attached hereto as Exhibit
No. 3 (the "Amended Promissory Note").

          (e)  The Obligations are restructured as specified in the Amended
Lease and the Amended Security Agreement.

     2.   Not a Novation. The parties acknowledge and agree that the
          --------------
restructuring of the Obligations effected hereunder does not constitute a
novation or a new extension of credit.

     3.   Conditions Precedent.  The effectiveness of the assignment, assumption
          --------------------
and restructuring of the Obligations effected hereunder is subject to
satisfaction of the following conditions:

          (a)  This Agreement is executed by each of the signatories hereto and
delivered to GE Capital.

          (b)  Transit Group executes and delivers to GE Capital the Amended
Lease and the Amended Promissory Note, together with such Uniform Commercial
Code ("UCC") financing statements as may be required by GE Capital to perfect
and protect the interests of GE Capital under the Amended Operative Agreements.

          (c)  Each of the Transit Group Subsidiaries executes and delivers to
GE Capital an Agreement of Guaranty in substantially the form attached hereto as
Exhibit No 4 (the "Subsidiaries Guaranty").

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<PAGE>

          (d)  Each of the Transit Group Subsidiaries which are a party thereto
executes and delivers to GE Capital the Amended Security Agreement.

          (e)  Transit Group and Congress Financial Corporation (Southern)
("Congress Financial") shall have executed a Loan and Security Agreement
providing a revolving credit facility and letter of credit facility, and Transit
Group and Bank One, N.A., as Agent and various financial institutions ("Bank
One, as Agent") shall have executed an Amended and Restated Credit Agreement
effecting a long-term restructure of the existing senior credit facility; and
certified true, correct and complete copies of such agreements are delivered to
GE Capital.

          (f)  Transit Group and the Transit Group Subsidiaries cause to be
delivered to GE Capital the following, in form and substance reasonably
satisfactory to GE Capital:

               (1)  Opinions of counsel on behalf of Transit Group and the
     Transit Group Subsidiaries as to each of the matters set forth in Sections
     4(a) through (d) hereof and such other matters as reasonably may be
     required by GE Capital.

               (2)  Certified resolutions of the Board of Directors or Executive
     Committee of such party duly authorizing the execution, delivery and
     performance of the obligations of such party pursuant to this Agreement and
     such of the Amended Operative Agreements, the Subsidiaries Guaranty, the
     Amended Security Agreement and such other documents and instruments as may
     be executed in connection herewith or therewith (collectively, the "Related
     Documents") to which such party is a party.

               (3)  Such consents and/or waivers of Congress Financial, Bank One
     as Agent, and other creditors of Transit Group and/or the Transit Group
     Subsidiaries with respect to the assignment, assumption and restructuring
     of the Obligations as may be reasonably required by GE Capital.

               (4)  Evidence as to due compliance with the insurance provisions
     of the Amended Operative Agreements.

               (5)  Such other documents, agreements, instruments, certificates,
     opinions and assurances as GE Capital may reasonably require.

          (g)  Each of the representations and warranties set forth in Section 4
hereof shall then be true and correct.

          (h)  As of the date hereof and the Closing Date (as hereinafter
defined), (1) all registration statements, reports, schedules and proxy
statements required to be filed by it (after giving effect to any applicable
extensions) under applicable securities laws and regulations (the "Securities
Filings") have been filed by Transit Group, (2) all of the Securities Filings
are in compliance in all material respects with the requirements of the
Securities Act of 1933, as amended (the "Act"), and the Securities Exchange Act
of 1934, as the case may be, and the regulations promulgated thereunder, and (3)
none of the Securities Filings, nor any of the information provided to GE
Capital in connection herewith or the purchase of the Purchased Shares (as
hereinafter defined), contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. As used herein, "Closing Date" means the date of the purchase of
the shares of stock of Transit Group, as described in Section 5(d) below.

                                       3
<PAGE>

     4.   Representations and Warranties of Transit Group and the Transit Group
          ---------------------------------------------------------------------
Subsidiaries. Each of Transit Group and the Transit Group Subsidiaries,
------------
severally, represent and warrant to GE Capital as follows:

          (a)  It is a corporation duly organized, validly existing and in good
standing under the laws of the state specified below its signature.

          (b)  The execution, delivery and performance of this Agreement and the
Related Documents to which it is a party: (1) have been duly authorized by all
necessary corporate action on its part; (2) do not require the approval of any
stockholder, trustee or holder of any obligations of it except such as have been
duly obtained; (3) do not and will not contravene its charter or by-laws, or
contravene the provisions of, or constitute a default under, or result in the
creation of any lien or encumbrance upon its property under, any indenture,
mortgage, contract or other agreement to which it is a party or by which it or
its property is bound (except as expressly contemplated hereunder) or under the
Related Documents; and (4) to the best of its knowledge, do not and will not
contravene any law, governmental rule, regulation or order new binding on it.

          (c)  This Agreement and each of the Related Documents to which it is a
party, when entered into, will constitute legal, valid and binding obligations
of it, enforceable against it in accordance with the terms hereof or thereof;
however, the enforceability shall be limited by the exercise of judicial
discretion in accordance with principles of equity, and by bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium and similar laws
of general applicability affecting creditors' rights.

          (d)  Except as previously disclosed to GE Capital, there are no
pending actions or proceedings to which it is a party, and there are no other
pending or threatened actions or proceedings of which it has knowledge, before
any court, arbitrator or administrative agency, which, either individually or in
the aggregate, would have a Material Adverse Effect. As used herein, "Material
Adverse Effect" shall mean (1) a materially adverse effect on its business,
condition (financial or otherwise), operations, performance or properties, or
(2) a material impairment of its ability to perform its obligations under or to
remain in compliance with this Agreement and the Related Documents to which it
is a party. Except as previously disclosed to GE Capital, it is not in default
under any obligation for borrowed money, for the deferred purchase price of
property, or any lease agreement which, either individually or in the aggregate,
would have the same such effect.

          (e)  Its corporate name, Federal Employer Identification Number and
Organizational Number specified below its signature are true and correct, and
the address specified below its signature is its chief place of business and
chief executive office.

          (f)  It is solvent and upon consummation of and giving effect to the
assignment, assumption and restructuring contemplated hereunder, it will
continue to be solvent.

          (g)  Except as previously disclosed to GE Capital, there has been no
material adverse change, individually or in the aggregate, in the business,
condition (financial or otherwise), operations, prospects, performance,
properties or projections of Transit Group, or in the industry in which Transit
Group operates, or with respect to the Equipment or the Collateral (as such
terms are defined in the Lease Agreements and the Security Agreements,
respectively), since the date of Transit Group's most recent audited financial
statements.

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<PAGE>

          (h)  Except as previously disclosed to GE Capital, there has been no
material increase in the liabilities, liquidated or contingent, of Transit
Group, or a material decrease in the assets of Transit Group, since the date of
Transit Group's most recent audited financial statements.

     5.   Covenants of Transit Group. Transit Group covenants and agrees as
          --------------------------
follows:

          (a)  Transit Group will furnish GE Capital (1) within one hundred
ninety-five (195) days after the end of fiscal year 2000, and within one hundred
twenty (120) days after the end of each subsequent fiscal year of Transit Group,
a consolidated balance sheet of Transit Group as at the end of such year, and
the related consolidated statement of income and consolidated statement of cash
flows of Transit Group for such fiscal year, prepared in accordance with
generally accepted accounting principles consistently applied ("GAAP"), all in
reasonable detail and certified by independent certified public accountants of
recognized standing selected by Transit Group (which shall be a "Big 5"
accounting firm); (2) within one hundred twenty (120) days after the end of each
fiscal year of Transit Group, a consolidating balance sheet of Transit Group as
at the end of such year, and the related consolidating statement of income and
consolidating income of cash flows of Transit Group for such fiscal year,
prepared in accordance with GAAP; (3) within thirty (30) days after the end of
each fiscal year of Transit Group, Transit Group's Board approved operating plan
for the next fiscal year; (4) within twenty (20) days after the end of each
month, an unaudited balance sheet of Transit Group as at the end of such month,
and the related statement of income and statement of cash flows of Transit Group
for such month, prepared in accordance with GAAP, except for the absence of
footnotes and year-end adjustments (5) within twenty (20) days after the end of
each month, an unaudited consolidating balance sheet of Transit Group as at the
end of such month, and the related consolidating statement of income and
consolidating statement of cash flows of Transit Group for such month, prepared
in accordance with GAAP, except for the absence of footnotes and year-end
adjustments; (6) within ten (10) days after the date on which they are filed,
all regular periodic reports, forms and other filings required to be made by
Transit Group to the Securities and Exchange Commission; (7) contemporaneously
with the furnishing of the financial statements required pursuant to Clauses (1)
and (3) above, a duly completed compliance certificate signed by the chief
financial officer of Transit Group, to the effect that such officer has not
become aware of any default or event which, with the giving of notice, or the
lapse of time, or both, would become a default under the Amended Operative
Agreements or the Amended Security Agreement (a "Default") that has occurred and
is continuing or, if there is any such event, describing it and the steps, if
any, being taken to cure it; and (8) as and when requested by GE Capital, such
other reasonable information with respect to Transit Group's business, condition
(financial or otherwise), operations, performance or properties, as reasonably
may be requested by GE Capital.

          (b)  Transit Group will promptly execute and deliver to GE Capital
such further documents, instruments and assurances and take such further action
as GE Capital from time to time may reasonably request in order to carry out the
intent and purpose of this Agreement and the Related Documents and to establish
and protect the rights and remedies created or intended to be created in favor
of GE Capital under this Agreement and the Related Documents.

          (c)  Transit Group shall provide written notice to GE Capital: (1)
thirty (30) days after any change in the name, state of incorporation or address
of the chief executive office of Transit Group; (2) promptly upon the occurrence
of any Default; and (3) promptly upon Transit Group becoming aware of any
alleged material violation of applicable law relating to the Equipment (as such
term is defined in the Amended Lease) or the Collateral (as such term is defined
in the Amended Security Agreement).

          (d)  On October 19, 2005 (the "Termination Date"), Transit Group shall
pay to GE Capital a fee in the amount of $1,000,000; provided, however, that in
lieu of requiring payment of such

                                       5
<PAGE>

fee, GE Capital, or its nominee (which, for purposes of this Section 5(e), shall
be deemed to be included in any reference to "GE Capital"), shall have the
right, but not the obligation, to purchase from Transit Group on the Termination
Date, and Transit Group shall sell to GE Capital if GE Capital so elects,
17,601,276 shares of the Transit Group's Common Stock or such number of shares
of Transit Group's Common Stock as shall be equal to five percent (5%) of the
Shares Outstanding on the date of closing of the equity offering contemplated on
the date hereof (the "Percentage Determination Date"). The shares of Common
Stock which GE Capital is entitled to purchase pursuant to the foregoing
sentence are hereinafter called the "Purchased Shares". Anything in the
foregoing to the contrary notwithstanding if GE Capital determines that the
value of the Purchased Shares on the Termination Date is at least $1,000,000 in
excess of the amount of all costs, fees and expenses incurred or expected to be
incurred in connection with the purchase of the Purchased Shares and the resale
of the Purchased Shares (including, without limitation, the purchase price and
all filing costs, legal fees, and appraisal fees), GE Capital shall exercise its
right to purchase the Purchased Shares rather than requiring a cash payment of
the Termination Fee. The purchase price for the Purchased Shares shall be Five
Cents ($.05) per share. As used herein, "Common Stock" shall mean the Common
Stock, $.01 par value, of Transit Group as constituted on the date hereof, and
any capital stock into which such common stock may hereafter be changed, and
shall also include (i) capital stock of Transit Group of any other class
(regardless of how denominated), issued to the holders of shares of common stock
upon any capital reorganization or reclassification of the common stock, which
is not preferred as to dividends or assets over any other class of stock of
Transit Group and which is not subject to redemption, and (ii) shares of capital
stock of any successor or acquiring corporation received by or distributed to
the holders of common stock in connection with the consolidation or merger of
Transit Group with or into another corporation (where Transit Group is not the
surviving corporation), a share exchange in which Transit Group's common stock
will be acquired, or the sale, transfer or other disposition of all or
substantially all its property, assets or business to another corporation and,
pursuant to the terms of such merger, consolidation, share exchange or
disposition of assets, shares of capital stock of the successor or acquiring
corporation, or any cash, or other securities or property of any nature
whatsoever in addition to or in lieu of capital stock of the successor or
acquiring corporation are to be received by or distributed to the holders of
common stock of Transit Group. Appropriate provisions shall be made in
connection with a reorganization, reclassification, consolidation, merger, share
exchange, or disposition of assets with respect to the rights and interest of GE
Capital under this Section 5(e) to the end that the provisions of this Section
shall immediately after the transaction be applicable as nearly as possible to
any shares of stock, securities or other property deliverable immediately after
the transaction upon the exercise of GE Capital's rights under this Section.
Transit Group shall not effect any consolidation, merger, share exchange or
disposition of assets unless, prior to the consummation of the transaction, the
successor or acquiring entity (if other than Transit Group) resulting from the
consolidation or merger, the entity acquiring the shares of Transit Group's
common stock in the share exchange, or the entity acquiring the assets assumes
by written instrument executed and delivered to Transit Group the obligation to
deliver to GE Capital the shares of stock, securities or other property that GE
Capital may be entitled to purchase in accordance with the foregoing provisions.
As used herein, "Shares Outstanding" shall include all issued and outstanding
shares of the Common Stock and all shares of Common Stock issuable upon the
conversion of preferred stock.

               (1)  If GE Capital elects to purchase the Purchased Shares, it
     shall provide written notice thereof to Transit Group not less than thirty
     (30) days prior to the Closing Date. At the closing of the purchase of the
     Purchased Shares, Transit Group will deliver to GE Capital a certificate
     representing the Purchased Shares, registered in the name of GE Capital,
     and the parties will execute the amendments to the Registration Rights
     Agreement and the Stockholders Agreement contemplated by Sections 5(e)(3)
     and (4) hereof.

               (2)  The Purchased Shares shall be subject to the terms and
     conditions of the Registration Rights Agreement dated as of May 13, 1999,
     between Transit Group and GE Capital

                                       6
<PAGE>

     Equity Investments, Inc. (the "Registration Rights Agreement"), and
     effective from and after the Closing Date, the Registration Rights
     Agreement shall be amended such that GE Capital shall be added as a party
     to the Registration Rights Agreement as of the Closing Date, and the
     Purchased Shares shall be included in the definition of "Registrable
     Securities" as set forth in the Registration Rights Agreement. Transit
     Group covenants and agrees to execute and deliver an amendment to the
     Registration Rights Agreement containing the foregoing provisions on or
     before the Closing Date.

               (3)  The Purchased Shares shall be subject to the terms and
     conditions of the Stockholders Agreement dated as of May 13, 1999, between
     Transit Group and GE Capital Equity Investments, Inc. (the "Stockholders
     Agreement"), and effective from and after the Closing Date, the
     Stockholders Agreement shall be amended such that GE Capital shall be added
     as a party to the Stockholders Agreement as of the Closing Date. Transit
     Group covenants and agrees to execute and deliver an amendment to the
     Registration Rights Agreement containing the foregoing provisions on or
     before the Closing Date.

               (4)  Transit Group covenants and agrees that (A) it shall at all
     times reserve a sufficient number of authorized shares of its Common Stock
     for issuance to GE Capital, (B) all Purchased Shares delivered upon the
     exercise of GE Capital's rights hereunder shall, upon delivery and payment
     therefor, be duly and validly authorized and issued, fully-paid and non-
     assessable, and free from all taxes, liens and charges with respect to the
     purchase thereof and (C) it will offer and sell the Purchased Shares to GE
     Capital in compliance with applicable exemptions from registration under,
     and otherwise in compliance with, federal and state securities laws, and
     neither it nor anyone acting on its behalf will take any action to cause
     the offer and sale of the Purchased Shares to be subject to the
     registration provisions of federal or state securities laws.

          (e)  Transit Group and the Transit Group Subsidiaries shall, upon
request of GE Capital, furnish to GE Capital such further information, execute
and deliver to GE Capital such documents and instruments (including, without
limitation, Uniform Commercial Code financing statements and amended
certificates of title) and do such other acts and things, as GE Capital may at
any time reasonably request relating to the perfection or protection of the
security interests and other interests contemplated by this Agreement and the
other Amended Operative Documents or for the purpose of carrying out the intent
of this Agreement. Without limiting the foregoing, Transit Group and the Transit
Group Subsidiaries shall cooperate and do all acts deemed reasonably necessary
or advisable by GE Capital (i) to continue in GE Capital's perfected first
security interest in the collateral granted pursuant to the Security Agreements,
(ii) to document GE Capital's ownership interest in the assets leased pursuant
to the Lease Agreements, and Transit Group and the Transit Group Subsidiaries
shall use their best efforts to obtain and furnish to GE Capital any
subordinations, releases, landlord, lessor, or mortgagee waivers, and similar
documents as may be from time to time requested by, and which are in form and
substance reasonably satisfactory to, GE Capital. In addition, without limiting
the foregoing, Transit Group and the Transit Group Subsidiaries confirm and
agree that they will cooperate with GE Capital in connection with the
confirmation of the collateral lists attached to the Amended Security Agreement
and the Amended Lease, and take such steps as shall be necessary to insure that
such collateral lists include all assets covered by the original Security
Agreements and the original Lease Agreements.

                                       7
<PAGE>

     6.   Representations and Warranties of GE Capital. GE Capital represents
          --------------------------------------------
and warrants as follows:

          (a)  If it elects to do so, GE Capital will purchase the Purchased
Shares for its own account, for the purpose of investment and not with a view to
distribution or resale thereof.

          (b)  GE Capital understands and agrees that, until registered under
the Act, all certificates representing the Purchased Shares shall bear a legend
reading substantially as follows:

          The securities represented by this certificate have not been
          registered under the Securities Act of 1933, as amended, (the "Act")
          or applicable state securities laws. These securities may not be
          offered for sale, sold, delivered after sale, transferred, pledged or
          hypothecated in the absence of an effective registration statement
          covering such securities under the Act and any applicable state
          securities laws, or the availability of an exemption from registration
          thereunder.

          (c)  GE Capital has had access to information and the opportunity to
ask questions of and receive answers from management of Transit Group concerning
Transit Group's business, assets, financial condition, results of operations,
and liabilities.

          (d)  GE Capital is an "accredited investor" as that term is defined in
rule 501 of Regulation D under the Act, and by reason of its business and
financial experience, it has such knowledge, sophistication and experience in
business and financial matters as to be capable of evaluating the merits and
risks of an investment in the Purchased Shares.

     7.   Miscellaneous.  (a) This Agreement and the Related Documents
          -------------
constitute the entire agreement among the parties with respect to the subject
matter hereof and thereof and shall not be rescinded, amended or modified in any
manner except by a document in writing executed by all of the parties hereto.

          (b)  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.

          (c)  All reasonable out of pocket expenses incurred by GE Capital in
connection with the preparation and execution of this Agreement and the Related
Documents, consummation of the transactions contemplated herein and therein, and
the recording of all UCC financing statements in connection herewith, shall be
for the account of Transit Group and shall be payable by Transit Group upon
demand.

          (d)  THE PARTIES HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO WHICH ANY OF THEM MAY BE A PARTY ARISING OUT OF OR IN ANY WAY
PERTAINING TO THIS AGREEMENT AND THE RELATED DOCUMENTS. TRANSIT GROUP AND THE
TRANSIT GROUP SUBSIDIARIES AUTHORIZE GE CAPITAL TO FILE THIS PROVISION WITH THE
CLERK OR JUDGE OF ANY COURT HEARING ANY SUCH CLAIM. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY THE PARTIES AND THE PARTIES HEREBY ACKNOWLEDGE
THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO
INDUCE THIS WAIVER OF TRIAL BY

                                       8
<PAGE>

     JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. EACH OF THE PARTIES
     FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS
     AGREEMENT AND IN THE MAKING OF THIS WAIVER BY LEGAL COUNSEL, SELECTED OF
     ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS
     WAIVER WITH COUNSEL.

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

               (f)  This Agreement and the Related Documents may be executed in
     any number of counterparts and by different parties hereto or thereto on
     separate counterparts, each of which, when so executed and delivered, shall
     be an original, but all such counterparts shall together consist of but one
     and the same instrument.

          8.   Release by Transit Group and the Transit Group Subsidiaries. (a)
               -----------------------------------------------------------
As an inducement to GE Capital to enter into this Agreement, Transit Group and
the Transit Group Subsidiaries hereby release and discharge GE Capital, its
participants, successors and assigns, officers, directors, employees, agents,
representatives, insurers and attorneys, from all actions, counterclaims, causes
of action, suits, debts, dues, sums of money, accounts, reckonings, bonds,
bills, specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, executions, claims and demands
whatsoever, in law, admiralty or equity, against GE Capital and/or its
participants, successors and assigns which Transit Group and the Transit Group
Subsidiaries ever had, now have or hereafter can, shall or may, have for, upon
or by reason of any matter, cause or thing whatsoever from the beginning of the
world to the day of the date of this Agreement (the "Released Claims").

               (b)  in order to induce GE Capital to accept the release set
forth herein, Transit Group and the Transit Group Subsidiaries represent that:

                    (i)  such release constitutes a legal, valid and binding
               obligation of Transit Group and the Transit Group Subsidiaries,
               enforceable against each of them in accordance with its terms;
               however, the enforceability shall be limited by the exercise of
               judicial discretion in accordance with principles of equity, and
               by bankruptcy, insolvency, reorganization, fraudulent conveyance,
               moratorium and similar laws of general applicability affecting
               creditors' rights. The execution and delivery of, and the

                                       9
<PAGE>

               performance and compliance by Transit Group and the Transit Group
               Subsidiaries with such release shall not conflict with, or
               constitute on the part of Transit Group and the Transit Group
               Subsidiaries a violation or breach of, or a default under, and
               will not require any authorization, consent, approval or other
               action by, or any notice to, or filing with any court or
               administrative body or any other person pursuant to, any mortgage
               deed of trust, loan agreement, trust agreement or other agreement
               or instrument to which Transit Group or any of the Transit Group
               Subsidiaries or any of its or their property are subject or any
               laws and other governmental requirements; and

                    (ii) Transit Group and the Transit Group Subsidiaries (A)
               have not sold, transferred, conveyed, abandoned or otherwise
               disposed of any of the Released Claims, whether or not known,
               suspected or claimed that Transit Group and the Transit Group
               Subsidiaries have, had or may have against GE Capital and/or any
               of its participants, successors and assigns, as the case may be,
               and (B) has sought the advice of counsel with respect to the
               execution and delivery of this Agreement and Transit Group and
               the Transit Group Subsidiaries understand the legal implications
               with respect to the release set forth herein and the other
               documents executed by Transit Group and the Transit Group
               Subsidiaries in connection therewith.

               (c)  Transit Group and the Transit Group Subsidiaries hereby
acknowledge that they may hereafter discover facts in addition to or different
from those which they new know or believe to be true with respect to the subject
matter of the release set forth herein, but that it is Transit Group's and the
Transit Group Subsidiaries' intention to, and they do, hereby fully, finally and
forever settle the Released Claims; in furtherance of such intention, Transit
Group and the Transit Group Subsidiaries acknowledge that the release set forth
herein shall be and remain in effect as a full and complete release,
notwithstanding the subsequent discovery or existence of any such additional or
different facts.

          9.   Waiver of Designated Defaults. GE Capital hereby agrees to waive
               -----------------------------
the Designated Defaults; provided that (a) this waiver shall be effective only
with respect to the Designated Defaults and (b) shall not extend to any defaults
subsequently occurring under the provisions of this Agreement, the Amended
Promissory Note, the Amended Security Agreement, the Amended Lease, or the other
Amended Operative Documents. Except as expressly set forth herein, nothing
contained herein shall be construed in any manner to affect, impair, lessen,
release, cancel, terminate or extinguish the indebtedness, liabilities or
obligations of Transit Group or the Transit Group Subsidiaries under this
Agreement or the Amended Operative Documents. GE Capital acknowledges and agrees
that Transit Group and the Transit Group Subsidiaries may rely on this waiver in
consummating financial accommodations on or after the date hereof.

               [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       10
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Restructuring Agreement to
be duly executed as of the day and year first above set forth.

<TABLE>
<S>                                          <C>
GENERAL ELECTRIC CAPITAL CORPORATION         TRANSIT GROUP, INC.

By: /s/ Dennis J. Bickerstaff                By: /s/ Philip A. Belyew
   -----------------------------------          -------------------------------------------
Name:  Dennis J. Bickerstaff                 Name:  Philip A. Belyew
     ---------------------------------            -----------------------------------------
Title: Managing Director / Sr. Manager       Title: President
      --------------------------------             ----------------------------------------

     401 Merritt Seven                              2859 Paces Ferry Road
     Second Floor                                   Suite 1740
     Norwalk, Connecticut 06856                     Atlanta, Georgia 30339
     Facsimile: (203) 229-1989                      Facsimile: (770) 444-0246
                                                    Federal Employer ID No.: 59-2676629
                                                    State of Incorporation: Florida
                                                                            ---------------
                                                    Organizational No.:____________________

                                             TRANSIT GROUP TRANSPORTATION, LLC

                                             By: /s/ Philip A. Belyew
                                                -------------------------------------------
                                             Name:  Philip A. Belyew
                                                  -----------------------------------------
                                             Title: Sole Manager
                                                   ----------------------------------------

                                                    _______________________________________
                                                    _______________________________________
                                                    Facsimile: ____________________________
                                                    Federal Employer ID No.: 58-2426896
                                                    State of Incorporation: Delaware
                                                    Organizational No.:____________________

                                             CARROLL FULMER & COMPANY, INC.

                                             By: /s/ Philip A. Belyew
                                                -------------------------------------------
                                             Name:  Philip A. Belyew
                                                  -----------------------------------------
                                             Title: Sole Director
                                                   ----------------------------------------

                                                    8340 American Way
                                                    Groveland, Florida 34736
                                                    Facsimile: (352) 429-1010
                                                    Federal Employer ID No.: 59-2341068
                                                    State of Incorporation: Florida
                                                                            ---------------
                                                    Organizational No.:____________________
</TABLE>

                                       11
<PAGE>

                                       J & L TRUCK LEASING OF FARMINGTON,
                                       INC.

                                       By:  /s/  Philip A. Belyew
                                           ------------------------------
                                       Name:  Philip A. Belyew
                                            -----------------------------
                                       Title: Sole Director
                                             ----------------------------

                                             _____________________________

                                             _____________________________
                                             Facsimile:  (716) 924-9959
                                             Federal Employer ID No.: 16-1302929
                                             State of Incorporation: New York
                                             Organizational No.:__________

                                       12
<PAGE>

     The undersigned join herein for the expressly limited purpose of confirming
that the Existing Guaranty executed by the undersigned, severally, remains in
full force and effect and applicable to the Transit Group Obligations to the
extent such Existing Guaranty was applicable to the Obligations assigned to
Transit Group, notwithstanding the assignment, assumption and restructuring
effected hereunder.

TRANSIT GROUP, INC.                              CARROLL FULMER & COMPANY, INC.

By:  /s/  Philip A. Belyew                       By:  /s/  Philip A. Belyew
   -------------------------------------              --------------------------
Name:  Philip A. Belyew                          Name:  Philip A. Belyew
       ---------------------------------              --------------------------
Title:  President                                Title: Sole Director
       ---------------------------------               -------------------------

TRANSIT GROUP TRANSPORTATION, LLC

By:  /s/  Philip A. Belyew
    ------------------------------------
Name:  Philip A. Belyew
     -----------------------------------
Title: Sole Manager
      ----------------------------------

                                       13
<PAGE>

                                  SCHEDULE A

Master Lease Agreement 11/12/98
Lessor: General Electric Capital Corporation
Lessees:        Transit Group, Inc.
                Carolina-Pacific Distributors, Inc.
                Certified Transport, Inc.
                Rainbow Trucking Services, Inc.
                Transit Leasing, Inc. (formerly known as Capitol Warehouse Inc.)
                Transportation Resources and Management, Inc.
                Carroll Fulmer Company, Inc.
                K. J. Transportation, Inc.
                Service Express, Inc.
                Diversified Trucking Corp.
                J & L Truck Leasing of Farmington, Incorporated
                Northstar Transportation, Inc.

Master Lease Agreement 5/26/94
Lessor:         General Electric Capital Corporation
Lessees:        K.J. Transportation, Inc.

Master Lease Agreement 11/23/94
Lessor:         General Electric Capital Corporation
Lessee:         Roadmaster Corporation (assigned to DTC Acquisition, Inc. and
                subleased to Diversified Trucking Corp.)

Master Lease Agreement 9/11/98
Lessor:         General Electric Capital Corporation
Lessee:         Diversified Trucking Corp.

Master Lease Agreement 10/26/95
Lessor:         General Electric Capital Corporation
Lessee:         J & L Truck Leasing of Farmington, Incorporated

Commercial Transportation Lease Agreement 12/10/96
Lessor:         Partnership Financial Services, Inc. d/b/a Republic Capital
                (assigned to General Electric Capital Corporation)
Lessee:         Capitol Warehouse, Inc. (subsequently known as Transit Leasing,
                Inc.)

Master Lease Agreement 6/25/96
Lessor:         Associates Leasing, Inc. (assigned to General Electric Capital
                Corporation)
Lessee:         K.J. Transportation, Inc.

Master Lease Agreement 6/17/98
Lessor:         General Electric Capital Corporation
Lessee:         Certified Transport, Inc.

Agreement of Amendment 12/13/98 among General Electric Capital Corporation,
Transit Group, Inc. and certain subsidiaries
<PAGE>

                                  SCHEDULE B

Master Security Agreement 11/12/98
Secured Party:        General Electric Capital Corporation
Debtor:               K.J. Transportation, Inc.
                      J & L Truck Leasing of Farmington, Incorporated

Master Security Agreement 5/23/97
Secured Party:        General Electric Capital Corporation
Borrower:             DLS Leasing, Inc.

Master Security Agreement 4/10/98
Secured Party:        General Electric Capital Corporation
Borrower:             DLS Leasing, Inc.

Financing Agreement 11/16/95
Lender:               General Electric Capital Corporation
Borrower:             Capitol Warehouse, Inc. (subsequently known as Transit
                      Leasing, Inc.)

Security Agreement 6/27/96
Secured Party:        Geico Corporation d/b/a GE Capital Fleet Services
Debtor:               Capitol Warehouse, Inc. (subsequently known as Transit
                      Leasing, Inc.)

Security Agreement 7/17/96
Secured Party:        Geico Corporation d/b/a GE Capital Fleet Services
Debtor:               Capitol Warehouse, Inc. (subsequently known as Transit
                      Leasing, Inc.)

Master Security Agreement 4/1/99
Secured Party:        General Electric Capital Corporation
Debtor:               Bestway Trucking, Inc.

Agreement of Amendment 12/13/98 among General Electric Capital Corporation,
Transit Group, Inc. and certain subsidiaries
<PAGE>

                                  SCHEDULE C

Promissory Note dated November 12, 1998, payable to the order of General
Electric Capital Corporation, by K. J. Transportation, Inc. and J & L Truck
Leasing of Farmington, Incorporated

Promissory Note dated May 23, 1997, payable to the order of General Electric
Capital Corporation, by DLS Leasing, Inc.

Promissory Note dated April 10, 1998, payable to the order of General Electric
Capital Corporation, by DLS Leasing, Inc.

Installment Note dated November 16, 1995, payable to the order of General
Electric Capital Corporation, by Capitol Warehouse, Inc. (subsequently known as
Transit Leasing, Inc.)

Installment Promissory Note dated June 28. 1996, payable to the order of Geico
Corporation d/b/a GE Capital Fleet Services, by Capitol Warehouse, Inc.
(subsequently known as Transit Leasing, Inc.)

Installment Promissory Note dated July 19, 1996, payable to the order of Geico
Corporation d/b/a GE Capital Fleet Services, by Capitol Warehouse, Inc.
(subsequently known as Transit Leasing, Inc.)

Installment Promissory Note [undated], payable to the order of Geico Corporation
d/b/a GE Capital Feet Services, by Capitol Warehouse, Inc. (subsequently known
as Transit Leasing, Inc.)

Promissory Note dated April 2, 1999, payable to the order of General Electric
Capital Corporation by Bestway Trucking, Inc.

Agreement of Amendment 12/13/98 among General Electric Capital Corporation,
Transit Group, Inc. and certain subsidiaries
<PAGE>

                                  SCHEDULE D

Corporate Guaranty dated November 12, 1998, in favor of General Electric Capital
Corporation, securing the Master Security Agreement dated as November 12, 1998,
with K. J. Transportation, Inc. and J&L Truck Leasing of Farmington,
Incorporated by: Transit Group, Inc., Carolina-Pacific Distributors Inc.,
Certified Transport, Inc., Rainbow Trucking Services, Inc., Transportation
Resources and Management, Inc., Carroll Fulmer & Company, Inc., Service Express,
Inc., Diversified Trucking Corp., Northstar Transportation, Inc.

Corporate Guaranty dated August 2, 1999, in favor of General Electric Capital
Corporation, securing the Master Security Agreement dated April 10, 1998, with
DLS Leasing, Inc. by Transit Group, Inc.

Corporate Guaranty dated August 2, 1999, in favor of General Electric Capital
Corporation, securing the Master Security Agreement dated April 10, 1998, with
DLS Leasing, Inc. by Transit Group Transportation, LLC

Individual Guaranty dated April 10, 1998, in favor of General Electric Capital
Corporation securing the Master Security Agreement dated April 10, 1998, with
DLS Leasing, Inc. by David L. Summitt

Individual Guaranty dated October 21, 1997, in favor of General Electric Capital
Corporation, securing the Master Lease Agreement dated November 23, 1994, with
DTC Acquisition, Inc. (transferee from Roadmaster Corporation) by Kenneth Adams

Corporate Guaranties dated September 11, 1998, in favor of General Electric
Capital Corporation, securing the Master Lease Agreement dated September 11,
1998, with Diversified Trucking Corporation, by Transit Group, Inc., Carolina-
Pacific Distributors, Inc., Capitol Warehouse, Inc. (subsequently known as
Transit Leasing, Inc.), Service Express, Inc., Carroll Fulmer Group, Inc.,
Rainbow Trucking, Transportation Resources and Management, Inc., Certified
Transport, Inc., K. J. Transportation, Inc. and Northstar Transportation, Inc.

Individual Guaranty dated October 26, 1995, in favor of General Electric Capital
Corporation, securing the Master Lease Agreement dated October 26, 1995, with
J&L Truck Leasing of Farmington, Incorporated by Patricia Johnson

Individual Guaranty dated October 26, 1995, in favor of General Electric Capital
Corporation, securing the Master Lease Agreement dated October 26, 1995, with
J&L Truck Leasing of Farmington, Incorporated by Kent Johnson

Corporate Guaranty dated October 26, 1995, in favor of General Electric Capital
Corporation, securing the Master Lease Agreement dated October 26, 1995, with
J&L Truck Leasing of Farmington, Incorporated by Kaje Transport, Inc.

Corporate Guaranty dated October 26, 1995, in favor of General Electric Capital
Corporation, securing the Master Lease Agreement dated October 26, 1995, with
J&L Truck Leasing of Farmington, Incorporated by K. J. Transportation, Inc.

Guaranty dated November 16, 1995, in favor of General Electric Capital
Corporation, securing the Financing Agreement dated November 16, 1995, with
Capitol Warehouse, Inc., by Jerry Pennington
<PAGE>

Continuing Guaranty dated September 16, 1993, in favor of GELCO Corporation
d/b/a GE Capital Fleet Services, securing the Security Agreement dated July 17,
1996, with Capitol Warehouse, Inc, by Jerry Pennington

Continuing Guaranty dated October 10, 1995, in favor of GELCO Corporation d/b/a
GE Capital Fleet Services, securing the Security Agreement dated July 17, 1996,
with Capitol Warehouse, Inc, by Jerry Pennington

Continuing Guaranty dated December 11, 1996, in favor of GELCO Corporation d/b/a
GE Capital Feet Services, securing the Security Agreement dated July 17, 1996,
with Capitol Warehouse, Inc., by Jerry Pennington

Individual Guaranty dated April 1, 1999, in favor of General Electric Capital
Corporation, securing Master Security Agreement dated as of April 1, 1999, with
Bestway Trucking, Inc. by David Summitt

Guaranty dated April 1, 1999, in favor of General Electric Capital Corporation,
securing the Master Security Agreement dated as of April 1, 1999, with Bestway
Trucking, Inc. by Connection One Trucking, LLC

Corporate Guaranty dated April 1, 1999, in favor of General Electric Capital
Corporation, securing the Master Security Agreement dated as of April 1, 1999,
with Bestway Trucking, Inc. by DLS Leasing, Inc

Corporate Guaranty dated June 17, 1998, in favor of General Electric Capital
Corporation, securing the Master Lease Agreement dated as of June 17, 1998, with
Certified Transport, Inc. by Transit Group, Inc.

Corporate Guaranty dated December 11, 1996, in favor of Partnership Financial
Services, Inc. d/b/a Republic Capital, securing the Commercial Transportation
Lease Agreement dated as of December 10, 1996, with Capitol Warehouse, Inc., by
Jerry Pennington

Corporate Guaranty dated October 10, 1995, in favor of General Electric Capital
Corporation, securing the Commercial Transportation Lease Agreement dated as of
December 10, 1996, Capitol Warehouse, Inc., by Jerry Pennington

Agreement of Amendment 12/13/98 among General Electric Capital Corporation,
Transit Group, Inc. and certain subsidiaries

                                      18

<PAGE>

                                  SCHEDULE E

1.   Defaults which occurred prior to the date hereof with respect to the
     payment of Rent under Lease Agreements.

2.   Defaults under the original Lease Agreements, Security Agreements and other
     Operative Documents which occurred prior to the date hereof and resulted
     solely from cross-defaults with documentation evidencing other
     indebtedness, to the extent that such defaults have been waived by the
     holders of such other indebtedness.
<PAGE>

                              EQUIPMENT SCHEDULE

                                SCHEDULE NO. 1
                      DATED THIS ____ DAY OF APRIL, 2001
             TO MASTER LEASE AGREEMENT DATED AS OF APRIL 19, 2001

Lessor & Mailing Address:                        Lessee & Mailing Address:

General Electric Capital Corporation             Transit Group, Inc.
401 Merritt Seven                                2859 Paces Ferry Road
Second Floor                                     Suite 1740
Norwalk, Connecticut 06856                       Atlanta, Georgia 30339

This Equipment Schedule is executed pursuant to, and incorporates by reference
the terms and conditions of, and capitalized terms not defined herein shall have
the meanings assigned to them in the Master Lease Agreement identified above
("Agreement"; said Agreement and this Schedule being collectively referred to as
"Lease"). This Equipment Schedule, incorporating by reference the Agreement,
constitutes a separate instrument of lease.

A.   Equipment.
     ---------

     Pursuant to the terms of the Lease, Lessor agrees to acquire and lease to
Lessee the Equipment listed on Annex A attached hereto and made a part hereof.

B.   Financial Terms.
     ---------------

     1.   Capitalized Lessor's Cost: $29,704,804.94.
     2.   Basic Term: fifty-four (54) months.
     3.   Basic Term Commencement Date: April 19, 2001.
     4.   Location of Principal Garage of Equipment: See Annex A.
     5.   Lessee Federal Tax ID No.: 59-2576629.
     6.   Stipulated Loss Value: See Annex C attached for calculation of the
          Stipulated Loss Value of the Equipment during the Basic Term.
     7.   Interest Rate: 10.50%.

C.   Tax Benefits.
     ------------

     Depreciation Deductions:

     a.   Depreciation Method: 200% declining balance method, switching to
          straight line method for the first taxable year for which using the
          straight line method with respect to the adjusted basis as of the
          beginning of such year will yield a larger allowance.

     b.   Recovery Period: three (3) years for tractors and five (5) years for
          trailers.

     c.   Basis: 100% of Capitalized Lessor's Cost.
<PAGE>

D.   Term and Rent.
     -------------

     1.   Basic Term Rent. Commencing on May 12, 2001, and on the same day of
          each month thereafter during the Basic Term, Lessee shall pay, in
          arrears as rent ("Basic Term Rent") for the Equipment, the product of
          the Lease Rate Factor specified on Annex B attached hereto times he
          Capitalized Lessor's Cost of all Equipment on this Schedule. Each date
          for the payment of rent during the Basic Term is herein referred to as
          a "Rent Payment Date".

     2.   If any Rent Payment Date is not a business day, the rent otherwise due
          on such date shall be payable on the immediately preceding business
          day.

E.   Insurance.
     ---------

     1.   Public Liability: $10,000,000, total liability per occurrence.

     2.   Casualty and Property Damage: An amount equal to the higher of the
          Stipulated Loss Value or the full replacement cost of the Equipment.

F.   Estimated Residual Value.
     ------------------------

     The Estimated Residual Value of the Equipment shall be calculated as
thirty-five percent (35%) of the Capitalized Lessor's Cost of the Equipment.

This Schedule is not binding or effective with respect to the Agreement or
Equipment until executed on behalf of Lessor and Lessee by authorized
representatives of Lessor and Lessee, respectively.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      21
<PAGE>

     IN WITNESS WHEREOF, Lessee and Lessor have caused this Schedule to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                LESSEE:

GENERAL ELECTRIC CAPITAL CORPORATION   TRANSIT GROUP, INC.

By:_________________________________   By:___________________________________
Name:_______________________________   Name:_________________________________
Title:______________________________   Title:________________________________

                                       Attest:

                                       By:___________________________________
                                       Name:_________________________________
                                       Title:________________________________

                                      22
<PAGE>

                                    ANNEX A
                                      TO
                                SCHEDULE NO. 1
                     DATED THIS ______ DAY OF APRIL, 2001
             TO MASTER LEASE AGREEMENT DATED AS OF APRIL 19, 2001

                           DESCRIPTION OF EQUIPMENT

              SEE ATTACHMENTS HERETO FOR DESCRIPTION OF EQUIPMENT
<PAGE>

                                    ANNEX B
                                       TO
                                 SCHEDULE NO. 1
                      DATED THIS ______ DAY OF APRIL, 2001
              TO MASTER LEASE AGREEMENT DATED AS OF APRIL 19, 2001

                           SCHEDULE OF RENT PAYMENTS

               Rent Payment Number                             Lease Rate Factor
               -------------------                             -----------------
                     1-6                                            0.568750
                     7-12                                           1.777894
                     13-54                                          1.998589
<PAGE>

                                    ANNEX C
                                      TO
                                SCHEDULE NO. 1
                     DATED THIS ______ DAY OF APRIL, 2001

             TO MASTER LEASE AGREEMENT DATED AS OF APRIL 19, 2001

                        STIPULATED LOSS VALUE TABLE/1/

                                                           Stipulated Loss Value
         Rent Payment No.                                        % of Cost
         ----------------                                        ---------

                1                                                 108.141
                2                                                 108.503
                3                                                 108.846
                4                                                 109.188
                5                                                 109.522
                6                                                 109.847
                7                                                 110.160
                8                                                 109.242
                9                                                 108.304
               10                                                 107.354
               11                                                 106.391
               12                                                 105.410
               13                                                 104.407
               14                                                 103.163
               15                                                 101.897
               16                                                 100.616
               17                                                  99.314
               18                                                  97.990
               19                                                  96.651
               20                                                  95.290
               21                                                  93.907
               22                                                  92.509
               23                                                  91.095
               24                                                  89.670
               25                                                  88.231
               26                                                  86.780
               27                                                  85.317
               28                                                  83.838
               29                                                  82.345
               30                                                  80.840
               31                                                  79.319
               32                                                  77.785

___________________

/1/  *The Stipulated Loss Value for any unit of Equipment shall be equal to the
Capitalized Lessor's Cost of such unit multiplied by the appropriate percentage
derived from the above table. In the event that the Lease is for any reason
extended, then the last percentage figure shown above shall control throughout
any such extended term.
<PAGE>

                        33                                               76.237
                        34                                               74.673
                        35                                               73.092
                        36                                               71.502
                        37                                               69.901
                        38                                               68.289
                        39                                               66.667
                        40                                               65.028
                        41                                               63.378
                        42                                               61.718
                        43                                               60.040
                        44                                               58.351
                        45                                               56.651
                        46                                               54.934
                        47                                               53.198
                        48                                               51.466
                        49                                               49.740
                        50                                               48.030
                        51                                               46.307
                        52                                               44.570
                        53                                               42.818
                        54                                               41.071

                                       26<PAGE>

                                                                     Exhibit 4.2

================================================================================

                               OPTION AGREEMENT

                          Dated as of April 19, 2001

                                    between

                             _____________________

                                      and

                              TRANSIT GROUP, INC.

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                           Page
<S>                                                                                                         <C>
SECTION 1.     GRANT OF OPTION..........................................................................    1
SECTION 2.     EXERCISE OF OPTION.......................................................................    1

     (a)  Exercise Period...............................................................................    1
     (b)  Exercise Procedure............................................................................    1

SECTION 3.     ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES........................................    3

                  (a)    Adjustment of Exercise Price and Number of Shares upon Issuance of Common
                         Stock..........................................................................    3
                  (b)    Effect on Exercise Price of Certain Events.....................................    3
                  (c)    Subdivision or Combination of Common Stock.....................................    6
                  (d)    Dividends and Repurchases of Common Stock......................................    6
                  (e)    Reorganization, Reclassification, Consolidation, Merger or Sale................    6
                  (f)    Certain Events.................................................................    7
                  (g)    Notices........................................................................    7

SECTION 4.     DEFINITIONS..............................................................................    8
SECTION 5.     LEGEND...................................................................................    9
SECTION 6.     THE COMPANY REPRESENTATIONS AND WARRANTIES...............................................    9

                  (a)    Due Organization...............................................................    9
                  (b)    Due Authorization..............................................................    9
                  (c)    Capitalization.................................................................   10

SECTION 7.     NO VOTING RIGHTS; LIMITATIONS OF LIABILITY...............................................   10
SECTION 9.     NOTICES..................................................................................   10
SECTION 11.    ASSIGNMENT...............................................................................   10
SECTION 12.    INTERPRETATION...........................................................................   10
SECTION 13.    SEVERABILITY.............................................................................   11
SECTION 14.    GOVERNING LAW............................................................................   11
SECTION 15.    FORUM SELECTION AND CONSENT TO JURISDICTION..............................................   11
SECTION 16.    COUNTERPARTS.............................................................................   11
SECTION 17.    NO PRESUMPTION AGAINST DRAFTER...........................................................   11
 </TABLE>

                                      -i-
<PAGE>

                                OPTION AGREEMENT

     This OPTION AGREEMENT (this "Agreement"), is entered into as of April 19,
                                  ---------
2001 (the "Effective Date") between _________________ ("Lender") and Transit
                                                        ------
Group, Inc., a Florida corporation (the "Company").
                                         -------

     WHEREAS, as a condition to the consummation of the transactions
contemplated by the Amended and Restated Credit Agreement dated as of April 19,
2001 among Lender and others (the "Credit Agreement"), the Lender and the
                                   ----------------
Company are entering into this Agreement; and

     NOW, THEREFORE, in consideration of the foregoing, the mutual agreements
set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     Section 1.  Grant of Option. The Company hereby grants to Lender or its
                 ---------------
registered assign (the "Registered Holder"), the right to purchase (the
                        -----------------
"Option") from the Company up to Five Million Two Hundred Eighty Thousand Three
 ------
Hundred Eighty Three (5,280,383) shares of the Company's common stock, par value
$0.01 per share (the "Common Stock"), at a price per share equal to $0.05 (the
                      ------------
"Exercise Price"). The amount and kind of securities purchasable pursuant to the
 --------------
Option and the purchase price for such securities are subject to adjustment
pursuant to the provisions contained in this Agreement. Certain capitalized
terms used herein are defined in Section 4.
                                 ---------

     Section 2.  Exercise of Option.
                 ------------------

     (a)  Exercise Period. The Registered Holder may exercise, in whole or in
          ---------------
part, the Option at any time and from time to time during the period commencing
on the date hereof and ending on April 19, 2021 (the "Exercise Period"). If the
                                                      ---------------
Option remains unexercised, in whole or in part, upon the expiration of the
Exercise Period, the Option or such unexercised part thereof shall terminate.

     (b)  Exercise Procedure.
          ------------------

          (i)  The Option shall be exercised, to the extent of the number of
     shares of Common Stock described in clause (C) below, when the Company has
                                         ----------
     received all of the  following items (the "Exercise Time"):
                                                -------------

               (A)  a completed Exercise Agreement, in the form of Exhibit A
                                                                   ---------
          attached hereto, which shall be dated the actual date of execution
          thereof;

               (B)  if the Registered Holder is not the Lender, an Assignment in
          the form of Exhibit B attached hereto, evidencing the assignment of
                      ---------
          the Option; and

               (C)  subject to clause (ii) below, a check payable to the
                               -----------
          Company, or a wire transfer of immediately available funds to an
          account specified by the Company, in an amount equal to the product of
          the Exercise Price multiplied by the number of shares of Common Stock
          being purchased upon such exercise.

                                                                               1
<PAGE>

          (ii)   Notwithstanding Section 2(b)(i)(C) above, at the election of
                                 ------------------
     the Registered Holder (the "Cashless Election"), which election shall be
                                 -----------------
     set forth in the Exercise Agreement, the number of shares of Common Stock
     being purchased upon exercise of the Option shall be equal to the quotient
     obtained by dividing (a) the product of (x) the Market Price at such
     Exercise Time less the Exercise Price, multiplied by (y) the number of
     shares of Common Stock as to which the Registered Holder elects to be
     issued under this clause (ii) (which election shall reduce the number of
                       -----------
     shares of Common Stock available for any subsequent exercise), divided by
     (b) the Market Price at such Exercise Time. The number of shares of Common
     Stock issued pursuant to this clause (ii) shall be excluded from the
                                   -----------
     calculation of the amount paid pursuant to Section 2(b)(i)(C) above.
                                                ------------------

          (iii)  Certificate(s) for Common Stock purchased upon exercise of the
     Option shall be delivered by the Company to the Registered Holder within
     five (5) business days of the Exercise Time in exchange for payment for
     such Common Stock or exercise of the Cashless Election. If the Option is
     exercised in part, the Company shall, at the time of delivery of the
     certificate(s) for Common Stock, unless the Option has then expired, issue
     and deliver to the Registered Holder an amendment to this Agreement
     evidencing the rights of the Registered Holder to purchase the aggregate
     number of shares of Common Stock for which the Option shall not have been
     exercised.

          (iv)   Common Stock issuable upon exercise of the Option shall be
     issued to the Registered Holder at the Exercise Time, and the Registered
     Holder (or its custodian or nominee) will be deemed for all purposes to
     have become the record holder of such Common Stock at the Exercise Time.

          (v)    The issuance of certificate(s) representing Common Stock upon
     exercise of the Option shall be made without charge to the Registered
     Holder for any issuance tax in respect thereof or other costs incurred by
     the Company in connection with such exercise and the related issuance of
     the Common Stock.

          (vi)   The Company shall not close its books against the transfer of
     the Option or of any Common Stock issued or issuable upon exercise of the
     Option in any manner which interferes with the timely exercise of the
     Option. The Company shall from time to time take all such action as may be
     necessary to assure that the par value per share of the unissued Common
     Stock issuable upon exercise of the Option is at all times equal to or less
     than the Exercise Price then in effect.

          (vii)  The Company shall assist and cooperate with any Registered
     Holder required to make any governmental filings or obtain any governmental
     approvals prior to or in connection with any exercise of the Option,
     including making any filings required to be made by the Company.

          (viii) The Company shall at all times reserve and keep available out
     of its authorized but unissued shares, solely for the purpose of issuance
     upon exercise of the Option, such number of shares of Common Stock issuable
     upon the exercise of all outstanding Options. All Common Stock which is so
     issuable shall, when issued, be duly and validly issued, and upon payment
     of the Exercise Price therefor, shall be fully paid

                                                                               2
<PAGE>

     and nonassessable and free from all taxes, liens and charges. The Company
     shall take all such actions as may be necessary to assure that all such
     Common Stock may be so issued without violation of any applicable law or
     governmental regulation or any requirement of any domestic securities
     exchange upon which Common Stock is listed (except for official notice of
     issuance, which shall be immediately delivered by the Company upon each
     such issuance).

     Section 3.  Adjustment of Exercise Price and Number of Shares. In order to
                 -------------------------------------------------
prevent dilution of the rights granted under this Agreement, the Exercise Price
and the number of shares of Common Stock issuable upon exercise of the Option
shall be subject to adjustment from time to time as provided in this Section 3.
                                                                     ---------
          (a)  Adjustment of Exercise Price and Number of Shares upon Issuance
               ---------------------------------------------------------------
     of Common Stock.  If after the Effective Date, the Company issues or
     ---------------
     sells, or in accordance with Section 3(b) is deemed to have issued or sold,
                                  ------------
     any Common Stock, other than a Permitted Issuance, for a consideration per
     share less than the Exercise Price in effect immediately prior to such time
     (which consideration shall have been determined in good faith by the
     Company's Board of Directors), then immediately upon such issuance or sale,
     the Exercise Price shall be reduced to the Exercise Price determined by
     dividing (i) the sum of (A) the product derived by multiplying the Exercise
     Price in effect immediately prior to such issuance or sale times the number
     of shares of Common Stock Deemed Outstanding immediately prior to such
     issuance or sale, plus (B) the consideration, if any, received by the
     Company upon such issuance or sale, by (ii) the number of shares of Common
     Stock Deemed Outstanding immediately after such issuance or sale. Upon each
     such adjustment of the Exercise Price under this Section 3, the number of
                                                      ---------
     shares of Common Stock issuable upon exercise of the Option shall be
     adjusted to the number of shares of Common Stock determined by multiplying
     the Exercise Price in effect immediately prior to such adjustment by the
     number of shares of Common Stock issuable upon exercise of the Option
     immediately prior to such adjustment and dividing the product thereof by
     the Exercise Price resulting from such adjustment.

          (b)  Effect on Exercise Price of Certain Events.  For purposes of
               ------------------------------------------
     determining the adjusted Exercise Price under Section 3(a), the following
                                                   ------------
     shall be applicable:

               (i)  If after the Effective Date the Company in any manner grants
          any rights or options to subscribe for or to purchase Common Stock or
          any shares or other securities convertible into or exchangeable for
          Common Stock, other than a Permitted Issuance, (all such rights or
          options being herein called "Rights" and such convertible or
                                       ------
          exchangeable stock or securities being herein called "Convertible
                                                                -----------
          Securities") and the price per share for which Common Stock is
          -----------
          issuable upon exercise of such Rights or upon conversion or exchange
          of such Convertible Securities is less than the Exercise Price in
          effect immediately prior to the time of the granting of such Rights,
          then the total number of shares of Common Stock issuable upon exercise
          of such Rights or upon conversion or exchange of the total amount of
          such Convertible Securities issuable upon exercise of such Rights
          shall be deemed to be outstanding and to have been issued

                                                                               3
<PAGE>

     and sold by the Company for such price per share. For purposes of this
     paragraph, the "price per share for which Common Stock is issuable upon
     exercise of such Rights or upon conversion or exchange of such" is
     determined by dividing (A) the total amount, if any, received or receivable
     by the Company as consideration for the granting of such Rights, plus the
     aggregate amount of additional consideration payable to the Company upon
     exercise of all such Rights, plus in the case of such Rights which relate
     to Convertible Securities, the aggregate amount of additional
     consideration, if any, payable to the Company upon the issuance or sale of
     such Convertible Securities and the conversion or exchange thereof, by (B)
     the total maximum number of shares of Common Stock issuable upon exercise
     of such Rights or upon the conversion or exchange of all such Convertible
     Securities issued upon exercise of such Rights. No further adjustment of
     the Exercise Price shall be made upon the actual issuance of Common Stock
     or of such Convertible Securities upon exercise of such Rights or upon the
     actual issuance of Common Stock upon conversion or exchange of such
     Convertible Securities.

          (ii)   If after the Effective Date the Company in any manner issues or
     sells any Convertible Securities, other than a Permitted Issuance, and the
     price per share for which Common Stock is issuable upon such conversion or
     exchange is less than the Exercise Price in effect immediately prior to the
     time of such issuance or sale, then the number of shares of Common Stock
     issuable upon conversion or exchange of such Convertible Securities shall
     be deemed to be outstanding and to have been issued and sold by the Company
     for such price per share. For purposes of this paragraph, the "price per
     share for which Common Stock is issuable upon such conversion or exchange"
     is determined by dividing (A) the total amount received or receivable by
     the Company as consideration for the issuance or sale of such Convertible
     Securities, plus the aggregate amount of additional consideration, if any,
     payable to the Company upon the conversion or exchange thereof, by (B) the
     total maximum number of shares of Common Stock issuable upon the conversion
     or exchange of all such Convertible Securities. No further adjustment of
     the Exercise Price shall be made upon the actual issuance of Common Stock
     upon conversion or exchange of such Convertible Securities. In addition, if
     any such issuance or sale of such Convertible Securities is made upon
     exercise of any Rights for which adjustments of the Exercise Price had been
     or are to be made pursuant to other provisions of this Section 3(b), no
                                                            ------------
     further adjustment of the Exercise Price shall be made by reason of such
     issuance or sale.

          (iii)  If the purchase price provided for in any Rights, the
     additional consideration, if any, payable upon the issuance, conversion or
     exchange of any Convertible Securities, or the rate at which any
     Convertible Securities are convertible into or exchangeable for Common
     Stock changes at any time (other than solely pursuant to the operation of
     antidilution provisions similar to those contained in this Section 3), then
                                                                ---------
     the Exercise Price in effect and the number of shares of Common Stock
     issuable hereunder at the time of such change shall be adjusted to the
     Exercise Price and the number of shares of Common Stock that would have
     been in effect at such time had such Rights or Convertible Securities still
     outstanding provided for such changed purchase price, additional

                                                                               4
<PAGE>

     consideration or changed conversion rate, as the case may be, at the time
     initially granted, issued or sold; provided that, if such adjustment would
                                        --------
     result in an increase of the Exercise Price then in effect, such adjustment
     shall not be effective until 30 days after written notice thereof has been
     given by the Company to all Registered Holders.

          (iv)   Upon the expiration of any Right or the termination of any
     right to convert or exchange any Convertible Securities without the
     exercise of such Right or right, the Exercise Price then in effect and the
     number of shares of Common Stock issuable upon exercise of the Option shall
     be readjusted to the Exercise Price and the number of shares of Common
     Stock that would have been in effect at the time of such expiration or
     termination had such Right or Convertible Securities, to the extent
     outstanding immediately prior to such expiration or termination, never been
     issued; provided that, if such expiration or termination would result in
             --------
     an increase in the Exercise Price then in effect, such adjustment shall not
     be effective until 30 days after written notice thereof has been given by
     the Company to all Registered Holders.

          (v)    If any Common Stock, Rights or Convertible Securities are
     issued or sold or deemed to have been issued or sold for cash, the
     consideration received therefor shall be deemed to be the net amount
     received by the Company therefor. In case any Common Stock, Rights or
     Convertible Securities are issued or sold for a consideration that consists
     of securities, the amount of consideration received by the Company shall be
     the Market Price thereof as of the date of receipt. In case any Common
     Stock, Rights or Convertible Securities are issued or sold for a
     consideration other than cash or securities, the fair value of such
     consideration shall be determined jointly by the Lender and the Company's
     Board of Directors.

          (vi)   In case any Right is issued in connection with the issuance or
     sale of other securities of the Company, together comprising one integrated
     transaction in which no specific consideration is allocated to such Rights
     by the parties thereto, the Rights shall be deemed to have been issued for
     consideration determined jointly by the Lender and the Company's Board of
     Directors.

          (vii)  Notwithstanding anything in this Section 3(b) to the contrary,
                                                  ------------
     no adjustment will be made by reason of the issuance of shares of Common
     Stock upon a subdivision of Common Stock for which an adjustment is made
     pursuant to Section 3(c).
                 ------------

          (viii) If the Company takes a record of the holders of Common Stock
     for the purpose of entitling them (A) to receive a dividend or other
     distribution payable in Common Stock, Rights or in Convertible Securities
     or (B) to subscribe for or purchase of Common Stock, Rights or Convertible
     Securities, then such record date shall be deemed to be the date of the
     issuance or sale of the Common Stock deemed to have been issued or sold
     upon the declaration of such dividend or the making of such other
     distribution or the date of the granting of such right of subscription or
     purchase, as the case may be.

                                                                               5
<PAGE>

          (c)  Subdivision or Combination of Common Stock.  If the Company at
               ------------------------------------------
     any time subdivides (by any stock split, stock dividend, recapitalization
     or otherwise) one or more classes of its outstanding Common Stock into a
     greater number of shares, the Exercise Price in effect immediately prior to
     such subdivision shall be proportionately decreased and the number of
     shares of Common Stock issuable upon exercise of the Option shall be
     proportionately increased. If the Company at any time combines (by reverse
     stock split or otherwise) one or more classes of its outstanding Common
     Stock into a smaller number of shares, the Exercise Price in effect
     immediately prior to such combination shall be proportionately increased
     and the number of shares of Common Stock issuable upon exercise of the
     Option shall be proportionately decreased.

          (d)  Dividends and Repurchases of Common Stock.  If the Company shall
               -----------------------------------------
     declare, pay or distribute dividends upon Common Stock (excluding a
     dividend referred to in Section 3(b)(viii) or 3(c) or declared on the
                             ------------------     ---
     Company's Series A Convertible Preferred Stock or Series B Convertible
     Preferred Stock) in any calendar year which, in the aggregate, exceed the
     Company's cumulative undistributed funds from operations, as determined by
     the Company's Board of Directors, on the date of declaration, then, the
     Exercise Price shall be decreased by multiplying the Exercise Price
     immediately prior to such decrease by a fraction, (A) the denominator of
     which equals the product of (1) the Exercise Price immediately prior to
     such decrease multiplied by (2) the number of shares of Common Stock
     outstanding at such time and (B) the numerator of which equals the
     denominator as determined pursuant to clause (A) above minus the amount by
                                           ----------
     which all such dividends for such calendar year exceed the Company's
     cumulative undistributed funds from operations on such date of declaration.
     Any such decrease shall take effect on the record date for the dividend. If
     the Company shall repurchase Common Stock for a per share consideration
     which exceeds the Exercise Price in effect immediately prior to the first
     such repurchase, then the Exercise Price shall be adjusted in accordance
     with the foregoing provisions, as if, in lieu of such repurchase, the
     Company had (i) paid a dividend having a fair market value equal to the
     fair market value of all property and cash expended in the repurchases and
     (ii) effected a reverse split of the Common Stock in the proportion
     necessary to reduce the number of shares of Common Stock outstanding from
     (A) the number of shares of Common Stock outstanding immediately prior to
     the first such repurchase to (B) the number of shares of Common Stock
     outstanding immediately following all such repurchases.  Notwithstanding
     the foregoing, no adjustments shall be made hereunder as a result of the
     repurchase by the Company of shares of Common Stock pursuant to the Stock
     Purchase Agreement dated as of April __, 2001 between the Company, T. Wayne
     Davis and certain members of the Fulmer Family.

          (e)  Reorganization, Reclassification, Consolidation, Merger or Sale.
               ---------------------------------------------------------------
     Any recapitalization, reorganization, reclassification, consolidation,
     merger, sale of all or substantially all of the Company's assets or other
     transaction which is effected in such a way that holders of Common Stock
     are entitled to receive (either directly or upon subsequent liquidation)
     stock, securities, cash or other assets with respect to or in exchange for
     Common Stock is referred to herein as an "Organic Change." Prior to the
                                               --------------
     consummation of any Organic Change, the Company shall make appropriate
     provision (in form and substance satisfactory to the Registered Holders
     representing a majority of the Common Stock then issuable upon exercise of
     all Options then outstanding) to insure

                                                                               6
<PAGE>

     that each of the Registered Holders shall thereafter have the right to
     acquire and receive in lieu of or addition to (as the case may be), the
     Common Stock immediately theretofore acquirable upon exercise of such
     holder's Option, such shares of stock, securities, cash or other assets as
     may be issued or payable with respect to or in exchange for the number of
     shares of Common Stock immediately theretofore and receivable upon exercise
     of such holder's Option had such Organic Change not taken place. In any
     such case, the Company shall make appropriate provision (in form and
     substance satisfactory to the Registered Holders representing a majority of
     the Common Stock then issuable upon exercise of all Options then
     outstanding) with respect to such holder's rights and interests to insure
     that the provisions of this Section 3 shall thereafter be applicable to
                                 ---------
     the Options. The Company shall not effect any such consolidation, merger or
     sale, unless prior to the consummation thereof, the successor entity (if
     other than the Company) resulting from consolidation or merger or the
     corporation purchasing such assets assumes by written instrument (in form
     and substance satisfactory to the Registered Holders representing a
     majority of the Common Stock then issuable upon exercise of the Option),
     the obligation to deliver to each such holder such shares of stock,
     securities, cash or other assets as, in accordance with the foregoing
     provisions, such holder may be entitled to acquire.

          (f)  Certain Events.  If any event occurs of the type contemplated by
               --------------
     the provisions of this Section 3 but not expressly provided for by such
                        ---------
     provisions (including, without limitation, the granting of stock
     appreciation rights, phantom stock rights or other rights with equity
     features), then the Company's Board of Directors shall make an appropriate
     adjustment in the Exercise Price and the number of shares of Common Stock
     issuable upon exercise of the Option so as to protect the rights of the
     Registered Holder; provided that no such adjustment shall increase the
                        --------
     Exercise Price or decrease the number of shares of Common Stock issuable
     upon exercise of the Option as otherwise determined pursuant to this
     Section 3.
     ---------

          (g)  Notices.
               -------

               (i)    Immediately upon any adjustment of the terms of the
          Option under Section 3, the Company shall give written notice thereof
                       ---------
          to the Registered Holder, setting forth details of such event and the
          number of shares of Common Stock or other securities or property
          thereafter purchasable upon exercise of the Option.

               (ii)   The Company shall give written notice to the Registered
          Holder at least 20 days prior to the date on which the Company closes
          its books or takes a record (A) with respect to any dividend or
          distribution upon the Common Stock, (B) with respect to any pro rata
          subscription offer to holders of Common Stock or (C) for determining
          rights to vote with respect to any Organic Change, dissolution or
          liquidation.

               (iii)  The Company shall also give written notice to the
          Registered Holder at least 20 days prior to the date on which any
          Organic Change, dissolution or liquidation shall take place.

                                                                               7
<PAGE>

     Section 4.  Definitions. The following terms shall have the meanings set
                 -----------
forth herein for the purposes of this Agreement:

          "Common Stock" means the common stock, par value $0.01 per share, of
           ------------
     the Company, and, except for purposes of the Common Stock obtainable upon
     exercise of the Option, any capital stock of any class of the Company
     hereafter authorized which is not limited to a fixed sum or percentage of
     par or stated value in respect to the rights of the holders thereof to
     participate in dividends or in the distribution of assets upon any
     liquidation, dissolution or winding up of the Company, but shall not
     include the Series A Convertible Preferred Stock or Series B Convertible
     Preferred Stock of the Company outstanding on the date hereof.

          "Common Stock Deemed Outstanding" means, at any given time, the number
           -------------------------------
     of shares of Common Stock actually outstanding at such time, plus the
     number of shares of Common Stock deemed to be outstanding pursuant to
     Sections 3(b)(i) and (ii).
     ----------------     ----

          "Market Price" means as to any security the average of the closing
           ------------
     prices of such security's sales on all domestic securities exchanges on
     which such security may at the time be listed, or, if there have been no
     sales on any such exchange on any day, the average of the highest bid and
     lowest asked prices on all such exchanges at the end of such day, or, if on
     any day such security is not so listed, the average of the representative
     bid and asked prices quoted in the NASDAQ System as of 4:00 P.M.,
     prevailing eastern time, on such day, or, if on any day such security is
     not quoted in the NASDAQ System, the average of the highest bid and lowest
     asked prices on such day in the domestic over-the-counter market as
     reported by the National Quotation Bureau, Incorporated, or any similar
     successor organization, in each such case averaged over a period of 21 days
     consisting of the day as of which "Market Price" is being determined and
     the 20 consecutive business days prior to such day; provided that if such
     security is listed on any domestic securities exchange the term "business
     days" as used in this sentence means business days on which such exchange
     is open for trading.  If at any time such security is not listed on any
     domestic securities exchange or quoted in the NASDAQ System or the domestic
     over-the-counter market, the "Market Price" will be the fair value thereof
     determined jointly by the Company and the Registered Holders of Options
     representing a majority of the Common Stock purchasable upon exercise of
     all the Options then outstanding; provided that if such parties are unable
     to reach agreement within a reasonable period of time, such fair value will
     be determined by an appraiser jointly selected by the Company and the
     Registered Holders of Options representing a majority of the Common Stock
     purchasable upon exercise of all the Options then outstanding.  The
     determination of such appraiser will be final and binding on the Company
     and the Registered Holders of the Options, and the fees and expenses of
     such appraiser will be paid by the Company.

          "Permitted Issuance" shall mean any issuance of shares of Common Stock
           ------------------
     (i) upon the exercise or conversion of warrants or convertible securities
     of the Company outstanding or issued on the date hereof (including the
     Company's Series A Convertible Preferred Stock and Series B Convertible
     Preferred Stock) and all dividends declared or paid thereon in additional
     shares of Preferred Stock of the Company, or (ii) upon the

                                                                               8
<PAGE>

     exercise of employee stock options issued with the approval of the
     Company's Board of Directors pursuant to Company's stock option plans,
     including options to purchase up to an additional 30,000,000 shares of
     Common Stock issued with approval of the Company's Board of Directors, or
     (iii) all shares of Common Stock or other securities (including options,
     warrants and other purchase rights) issued or to be issued to employees,
     officers or directors of the Company after receipt of the written consent
     to such issuance from the holders of 60% of the then outstanding Preferred
     Stock and approval of such issuance by the Board of Directors of the
     Company.

          "Person" means an individual, a partnership, a joint venture, a
           ------
     corporation, a limited liability company, a trust, an unincorporated
     organization and a government or any department or agency thereof.

          "Securities Act" means the Securities Act of 1933, as amended, and the
           --------------
     rules and regulations promulgated thereunder.

          "Shareholders" means the holders of the Common Stock.
           ------------

          "Underlying Shares" means (i) the Common Stock issued or issuable upon
           -----------------
     exercise of the Option and (ii) any securities issued or issuable with
     respect to such Common Stock by way of any share split, share dividend,
     recapitalization or otherwise.

     Section 5.  Legend. The certificates representing the Common Stock will
                 ------
bear the following legend, if applicable:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
          (THE "SECURITIES ACT"), AND SHALL NOT BE: (1) SOLD, PLEDGED,
          HYPOTHECATED, OR OTHERWISE TRANSFERRED FOR CONSIDERATION, BY THE
          HOLDER, EXCEPT UPON THE ISSUANCE TO THE COMPANY OF AN OPINION OF ITS
          COUNSEL AND/OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS
          MAY BE SATISFACTORY TO COUNSEL FOR THE COMPANY, IN EITHER CASE TO THE
          EFFECT THAT ANY SUCH TRANSFER FOR CONSIDERATION SHALL NOT REQUIRE
          REGISTRATION UNDER THE ACT OR RULE 144 PROMULGATED BY THE SECURITIES
          AND EXCHANGE COMMISSION UNDER THE ACT AND APPLICABLE STATE SECURITIES
          LAW; OR (2) TRANSFERRED WITHOUT CONSIDERATION BY THE HOLDER EXCEPT
          UPON THE ISSUANCE TO THE COMPANY OF AN OPINION OF ITS COUNSEL OR THE
          SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE
          SATISFACTORY TO COUNSEL TO THE COMPANY, IN EITHER CASE TO THE EFFECT
          THAT ANY SUCH TRANSFER SHALL NOT REQUIRE REGISTRATION UNDER THE ACT
          AND APPLICABLE STATE SECURITIES LAW.

     Section 6.  The Company Representations and Warranties. The Company
                 ------------------------------------------
represents and warrants to the Lender as follows:

          (a)    Due Organization. The Company was formed on August 28, 1985,
                 ----------------
     has been duly organized and is validly existing and in good standing under
     the laws of the

                                                                               9
<PAGE>

     State of Florida, and is qualified to do business and in good standing in
     all jurisdictions where such qualification is necessary to carry on its
     business as now conducted or as proposed by it to be conducted on the
     Effective Date, except where failure to so qualify would not have a
     material adverse effect on the financial position or results of operations
     of the Company or any adverse effect on the ability of the Company to carry
     out its obligations under this Agreement.

          (b)    Due Authorization. The Company has full power and authority to
                 -----------------
     enter into this Agreement. The execution, delivery and performance by the
     Company of this Agreement have been duly and validly approved by all
     necessary corporate or other applicable action and no other actions or
     proceedings on the part of the Company are necessary to authorize this
     Agreement. This Agreement constitutes the legal, 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, moratorium, reorganization or similar laws in
     effect which affect the enforcement of creditors' rights generally and by
     equitable limitations on the availability of specific remedies.

          (c)    Capitalization. As of the Effective Date (i) the Company has
                 --------------
     120,000,000 authorized shares of capital stock, 100,000,000 shares of which
     are Common Stock and 20,000,000 shares are Preferred Stock, no par value
     per share; (ii) there are issued and outstanding (t) 31,959,674 shares of
     Common Stock, (u) 7,970,000 shares of Preferred Stock (consisting of
     5,000,000 shares of Series A Convertible Preferred Stock and 2,970,000
     shares of Series B Convertible Preferred Stock), (v) publicly-traded
     Warrants which entitle each holder to purchase one share of Common Stock at
     $7.50 per share upon the exercise of two Warrants, (w) 1,755,850 shares of
     Common Stock issued pursuant to the Company's Incentive Stock Option Plan,
     (x) 2,087,307 shares of Common Stock (plus a 1% per annum re-load feature)
     issued pursuant to the Company's 1998 Stock Incentive Plan, (y) 52,803,828
     options to purchase Common Stock and (z) 1,000,000 shares of Common Stock
     under the Company's 1998 Employee Stock Purchase Plan; (iii) the Board of
     Directors of the Company has authorized the issuance of 30,000,000 shares
     of Common Stock in connection with the Company's management incentive plan,
     subject to obtaining shareholder consent to increase the number of
     authorized shares of capital stock; and (iv) there are no other securities
     convertible or exchangeable for Common Stock or any rights or options to
     subscribe for or purchase any Common Stock or securities convertible or
     exchangeable for Common Stock.

     Section 7.  No Voting Rights; Limitations of Liability. This Agreement
                 ------------------------------------------
shall not entitle any Registered Holder to any voting rights or other rights as
a shareholder of the Company. No provision hereof, in the absence of affirmative
action by a Registered Holder to purchase Common Stock, and no enumeration
herein of the rights or privileges of the Registered Holders shall give rise to
any liability of a Registered Holder for the Exercise Price of Common Stock
acquirable upon exercise of the Option or as a shareholder of the Company.

     Section 8.  Option Transferability. Subject to the transfer conditions
                 ----------------------
referred to in the legend set forth in Section 5 hereof, this Agreement and all
                                       ---------
rights hereunder are transferable, in whole or in part, without charge to the
Registered Holder, upon surrender of this Agreement with

                                                                              10
<PAGE>

a properly executed Assignment (in the form of Exhibit B hereto) at the
                                               ---------
principal office of the Company.

     Section 9.  Notices. Except as otherwise expressly provided herein, any
                 -------
notice, request, instruction or other document to be given hereunder shall be in
writing and shall be deemed to have been given, (a) when received if given in
person or by courier or a courier service, (b) on the date of transmission if
sent by telex, facsimile or other wire transmission or (c) three business days
(seven business days for overseas mail) after being deposited in the U.S. mail,
certified or registered mail, postage prepaid, addressed (i) to the Company, at
its principal executive offices, and (ii) to any Registered Holder, at such
holder's address as it appears in the records of the Company (unless otherwise
indicated by any such holder).

     Section 10. Amendment and Waiver. Except as otherwise provided herein, the
                 --------------------
provisions of 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, only if the Company has obtained the written consent of the Registered
Holder.

     Section 11. Assignment. This Agreement shall be binding upon and inure to
                 ----------
the benefit of the parties hereto and their respective successors and permitted
assigns. No assignment of any rights or obligations shall be made by any party
without the written consent of each other party, except as expressly permitted
herein.

     Section 12. Interpretation. The headings preceding the text of Sections and
                 --------------
paragraphs included in this Agreement and the headings to Exhibits attached to
this Agreement are for convenience only and shall not be deemed part of this
Agreement or be given any effect in interpreting this Agreement. The use of the
masculine, feminine or neuter gender herein shall not limit any provision of
this Agreement. The use of the terms "including" or "include" shall in all cases
mean "including, without limitation" or "include, without limitation,"
respectively. Underscored references to Sections or Exhibits shall refer to
those portions of this Agreement.

     Section 13. Severability. If any provision of this Agreement shall be held
                 ------------
invalid, illegal or unenforceable, the validity, legality or enforceability of
the other provisions hereof shall not be affected thereby, and there shall be
deemed substituted for the provision at issue a valid, legal and enforceable
provision as similar as possible to the provision at issue.

     Section 14. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
                 -------------
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICTS OF LAWS.

     Section 15. Forum Selection and Consent to Jurisdiction. ANY LITIGATION
                 -------------------------------------------
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT,
SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH OF THE
PARTIES HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED STATES DISTRICT COURT FOR THE

                                                                              11
<PAGE>

NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE. EACH OF THE PARTIES HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     Section 16. Counterparts. This Agreement may be executed in counterparts,
                 ------------
each of which shall be deemed an original, but all of which together shall
constitute one and the same Agreement.

     Section 17. No Presumption Against Drafter. Each of the parties hereto have
                 ------------------------------
jointly participated in the negotiation and drafting of this Agreement.  In the
event of any ambiguity or a question of intent or interpretation arises, the
Agreement shall be construed as if drafted jointly by each of the parties hereto
and no presumption or burdens of proof shall arise favoring any party by virtue
of the authorship of any of the provisions of this Agreement.

                                                                              12
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the Effective Date.

                                   TRANSIT GROUP, INC.

                                   By:____________________________
                                   Name:
                                   Title:

                                   LENDER

                                   By:____________________________
                                   Name:
                                   Title:
<PAGE>

                                   Exhibit A
                              Exercise Agreement

To:                                Dated:

          The undersigned, pursuant to the provisions set forth in that certain
Option Agreement, dated as of April 19, 2001, between [Name of Lender] and
Transit Group, Inc. (the "Agreement"), hereby subscribes for the purchase of
__________ shares of Common Stock issuable upon exercise of the Option contained
therein and [makes payment herewith in full therefor at the Exercise Price per
share set forth therein] [makes election to exercise the procedure set forth in
Section 2(c)(ii)]. Capitalized terms not otherwise herein defined shall have the
meanings given them in the Agreement.

          By executing this Exercise Agreement, the undersigned acknowledges
that it has read, and agrees to be bound by, all the terms and provisions of the
Agreement.

                              _________________________________

                              By:______________________________
                              Name_____________________________
                              Title:___________________________
<PAGE>

                                   Exhibit B
                                   Assignment

     FOR VALUE RECEIVED, ____________________ hereby sells, assigns and
transfers to the Assignee set forth below all of the rights of the undersigned
under that certain Option Agreement, dated as of April 19, 2001, between
___________________ and Transit Group, Inc. (the "Agreement"), with respect to
                                                  ---------
the number of shares set forth below. Capitalized terms not otherwise defined
herein shall have the meanings given them in the Agreement.

Name of Assignee         Address                   No. of Shares
----------------         -------                   -------------

Dated:                             _________________________________

                                   By:______________________________
                                   Name:____________________________
                                   Title:___________________________

     The undersigned Assignee hereby accepts the foregoing Assignment and agrees
to be bound by all the terms and provisions of the Agreement.

Dated:                             ________________________________

                                   By:_____________________________
                                   Name:___________________________
                                   Title:__________________________

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