Document:

EXHIBIT 10.62

                       IN THE UNITED STATES DISTRICT COURT
                       FOR THE SOUTHERN DISTRICT OF TEXAS
                                HOUSTON DIVISION

JACK D. ASHABRANNER II                 )
                                       )
                  Plaintiff            )
                                       )
vs.                                    ) Case No. H-98-1271
                                       ) JURY TRIAL DEMANDED
CORPORATE EXPRESS DELIVERY             )
SYSTEMS, INC. f/k/a U. S. DELIVERY     )
SYSTEMS, INC., CORPORATE               )
EXPRESS, INC., and CORPORATE           )
DELIVERY SYSTEMS-SOUTHWEST,            )
INC. f/k/a DISTRIBUTION                )
SOLUTIONS, INC.                        )
                                       )
                  Defendants           )

                    MUTUAL RELEASE AND CONTRACT OF SETTLEMENT

         1. The parties to this Mutual Release and Contract of Settlement (the
"Agreement") are Jack D. Ashabranner II ("Ashabranner") and UST Delivery
Systems, Inc. f/k/a Corporate Express Delivery Systems, Inc., f/k/a U. S.
Delivery Systems, Inc., ("UST") (Ashabranner and UST are collectively referred
to herein as the "Parties").

         2. The Parties have been engaged in the litigation styled No.
H-98-1271, JACK D. ASHABRANNER II V. CORPORATE EXPRESS DELIVERY SYSTEMS, INC.
F/K/A U.S. DELIVERY SYSTEMS, INC., CORPORATE EXPRESS, INC. AND CORPORATE EXPRESS
DELIVERY SYSTEMS-SOUTHWEST, INC. F/K/A DISTRIBUTION SOLUTIONS, INC., In the
United States District Court For the Southern District of Texas, Houston
Division and an arbitration styled No. 70 160

<PAGE>

00265 99; JACK D. ASHABRANNER II V. CORPORATE EXPRESS DELIVERY
SYSTEMS-SOUTHWEST, INC. F/K/A DISTRIBUTION SOLUTIONS, INC.; Before the American
Arbitration Association (collectively referred to as the "Litigation"). Each of
the parties has expressly denied, and continues to deny any liability to the
other whatsoever for any of the charges asserted in the Litigation or otherwise.
Nevertheless, mindful of cost and expense associated with continued Litigation,
the Parties have agreed to compromise and settle the Litigation on the terms set
out in this Agreement.

         3. For the mutual consideration expressed in this Agreement, the
Parties have agreed to the following terms:

         a.       The parties agree to the entry of an Order of Dismissal in the
                  form attached as Exhibit "A," to be rendered in Cause No.
                  H-98-127, and to refrain from taking an appeal from such
                  order. The Order of Dismissal shall be delivered to and held
                  by the Trustee (as defined below) and shall not be filed with
                  any court pending consummation of this Agreement. If this
                  Agreement is fully consummated, then the Trustee shall deliver
                  the Order of Dismissal to UST for filing with the appropriate
                  court. If this Agreement is terminated pursuant to Paragraphs
                  3(g) and 3(j), then the Order of Dismissal shall be null and
                  void, except as to arbitration as set forth in Paragraph 3(b)
                  below, and the Trustee shall not file the Order of Dismissal
                  but shall return it to Ashabranner. Neither UST nor
                  Ashabranner shall engage in any discovery pending the
                  consummation of this Agreement.

         b.       The parties agree to dismiss their respective claims, to
                  assume responsibility for their respective attorneys fees,
                  costs and expenses in Arbitration No. 70 160 00265 99, and to
                  deliver a notice of dismissal to the American Arbitration
                  Association in the form attached as Exhibit "B."

         c.       UST agrees to pay to Ashabranner and his counsel, London &
                  Schaeffer, L.L.P., jointly, the sum of $50,000.00 (Fifty
                  Thousand and No/100 Dollars) at the closing of this Agreement.

         d.       Subject to the provisions of this Paragraph 3, United Shipping
                  & Technology, Inc., a Utah corporation ("USTI"), parent
                  corporation of

                                       2
<PAGE>

                  Corporate Express Delivery Systems, Inc., will issue and
                  deliver to [___________ Bank/Trust Company/Title Company
                  ("Trustee")], for the benefit of Ashabranner and his counsel,
                  London & Schaeffer, jointly, 100,000 shares USTI common stock,
                  par value $.0004 per share, as escrow agent for the parties,
                  subject to the terms and conditions of this Agreement. Such
                  shares shall be registered in the name of Ashabranner and said
                  counsel but subject to reduction in accordance with the terms
                  of this Agreement.

         e.       Ashabranner and such counsel warrant and represent that each
                  of them is an "accredited investor" as that term is defined
                  under Rule 501 of Regulation D under the general rules and
                  regulations of the Securities and Exchange Commission ("SEC")
                  under the Securities Act of 1933, as amended (the "Act"). Such
                  shares constitute "restricted securities" as defined under SEC
                  Rule 144 under the Act. Ashabranner and said counsel make the
                  representations, warranties and acknowledgments contained in
                  Exhibit "C." Ashabranner and his counsel acknowledge that the
                  subject shares have not been registered under the Act and that
                  the sale, transfer or other disposition thereof is restricted
                  unless such shares are registered under the Act and applicable
                  state securities laws, or an exemption from registration is
                  available.

         f.       As soon as practicable following the execution and delivery of
                  this Agreement, USTI shall cause a Notice of Listing of
                  Additional Shares to be filed with the Nasdaq Stock Market
                  (Nasdaq SmallCap Market) listing the subject shares. USTI
                  shall either: (i) determine to file with the Securities and
                  Exchange Commission an amendment to USTI's pending S-3
                  Registration Statement (No. 333-31414) (the "Pending S-3")
                  listing the Trustee, for the benefit of Ashabranner and such
                  counsel, as a selling shareholder thereunder; or (ii)
                  determine to file and file within 60 days following the
                  execution and delivery of this Agreement a new Registration
                  Statement ("New Registration Statement") on Form S-3 or such
                  other form as may be available to USTI, for the purpose of
                  registering the subject shares, together with any other shares
                  which USTI may determine to register for the resale of such
                  shares under the Act. In connection with said Pending S-3 or
                  the New Registration Statement, Ashabranner and his counsel
                  will provide a written response to a questionnaire from USTI
                  providing the information which is customarily given by
                  shareholders to an issuer in a public offering. USTI shall use
                  its best efforts to cause, subject to the applicable
                  provisions and rules and regulations under the Act and the
                  Securities Exchange Act of 1934, as amended, the Registration
                  Statement to be declared effective.

                                       3
<PAGE>

         g.       In the event the Pending S-3 or New Registration Statement is
                  not declared effective by the SEC on or before June 30, 2000,
                  Ashabranner may, upon written notice to the Trustee and USTI,
                  which must be given prior to the effectiveness of the
                  registration statement (if after June 30, 2000), declare this
                  Agreement terminated.

         h.       Upon the effective date of either the Pending S-3 or the New
                  Registration Statement, the Trustee shall ascertain the
                  average closing sale price of USTI's common stock for the
                  twenty trading days immediately preceding the effective date
                  of either the Pending S-3 or the New Registration Statement as
                  reported by Nasdaq. The Trustee shall thereupon deliver to
                  USTI's transfer agent the certificate (or certificates)
                  representing the shares held by it, and instruct that such
                  transfer agent deliver to Ashabranner and his counsel a number
                  of common shares having a market value (the "Market Value")
                  equal to $550,000 (the quotient of $550,000 divided by such
                  twenty day average closing price of USTI common stock). The
                  remaining shares not so delivered shall be canceled and
                  returned by the Trustee and shall have the status of
                  authorized, unissued shares of USTI.

         i.       In the event the number of shares deposited by USTI with the
                  Trustee is insufficient to equal a Market Value of $550,000,
                  USTI shall either deliver additional restricted shares (the
                  "Additional Shares") of its common stock to Ashabranner and
                  such counsel which, when added to the shares deposited with
                  the Trustee, will equal a Market Value of $550,000 (determined
                  as of the Effective Date) or deliver to Ashabranner, within
                  five (5) business days a cash payment which, when added to the
                  shares deliverable by the Trustee, will equal $550,000. USTI
                  will notify the Trustee and Ashabranner's counsel whether it
                  will deliver the Additional Shares or make a cash payment as
                  described above.

         j.       If Ashabranner elects to terminate this Agreement pursuant to
                  Paragraph 3(g), this Agreement shall terminate on the third
                  business day following his notice to USTI and the Trustee
                  pursuant to the preceding paragraph (the "Termination Date").
                  On the Termination Date, the Trustee shall return the shares
                  deposited with it by USTI to USTI.

         k.       If USTI elects to deliver Additional Shares to Ashabranner,
                  such shares shall constitute restricted securities as
                  described in Paragraph 3(e). USTI shall have the obligation to
                  register the Additional Shares upon demand of Ashabranner, by
                  filing a new registration statement with the SEC which
                  includes the Additional Shares for resale, as contemplated by
                  Paragraph 3(f) and if a registration statement is filed, shall
                  use its best efforts to

                                       4
<PAGE>

                  cause such registration statement to be declared effective.
                  Such registration statement to cover Additional Shares shall
                  be filed (subject to compliance with applicable regulations
                  under the Act), as soon as practicable, but in all events
                  within 30 business days following its notice to the Trustee,
                  Ashabranner and its counsel of USTI's intent to deliver
                  Additional Shares.

         l.       In the event this Agreement is terminated, pursuant to
                  Paragraphs 3(g) and 3(j), the $50,000 cash payment made by
                  USTI pursuant to Paragraph 3(c) shall be retained by
                  Ashabranner and his counsel as liquidated damages, but such
                  amount shall be deemed a credit to any amount recovered by
                  Ashabranner as a result of this litigation.

         4. For the mutual consideration expressed in this Agreement Ashabranner
agrees to release, indemnify and hold harmless UST Delivery Systems, Inc. f/k/a
Corporate Express Delivery Systems, Inc., f/k/a U. S. Delivery Systems, Inc.,
Corporate Express, Inc., CEX Holdings, Inc., Corporate Express Delivery Systems
Southwest, Inc., United Shipping and Technology, Inc., and all of their
respective predecessors, successors, affiliates, parents, subsidiaries, agents,
employees, servants, attorneys, officers, partners, general or limited,
successors in interest, and all of their respective heirs, executors,
administrators, successors and assigns (all of which are collectively referred
to as the "UST Released Parties") of and from any and all causes of action,
claims, liabilities, demands made by anyone claiming by, through, or under
Ashabranner of whatever nature, whether known or unknown, past, present, or
future, whether contractual, statutory or in tort, or otherwise, arising out of
the Litigation, including but not limited to all claims that could have been
asserted in those proceedings, to which reference is expressly made -- save and
except for rights arising under this Agreement, which rights are expressly
retained. It is expressly agreed and understood that this release

                                       5
<PAGE>

applies not only to all claims arising out of the pending proceedings but also
to any and all other claims and causes of action that Ashabranner has or may
have against the UST Released Parties, including any claims for injuries or
damages of kind that at this time are unknown and unanticipated but that may
develop in the future from any event occurring prior to the date of this
Agreement.

         5. UST agrees to release, indemnify and hold harmless and all of his
heirs, executors, administrators, successors and assigns (all of which are
collectively referred to as the "Ashabranner Released Parties") of and from any
and all causes of action, claims, liabilities, demands made by anyone claiming
by, through, or under UST of whatever nature, whether known or unknown, past,
present, or future, whether contractual, statutory or in tort, or otherwise,
arising out of the Litigation, including but not limited to all claims that
could have been asserted in those proceedings, to which reference is expressly
made -- save and except for rights arising under this Agreement, which rights
are expressly retained. It is expressly agreed and understood that this release
applies not only to all claims arising out of the pending proceedings but also
to any and all other claims and causes of action that UST has or may have
against the Ashabranner Released Parties, including any claims for injuries or
damages of kind that at this time are unknown and unanticipated but that may
develop in the future from any event occurring prior to the date of this
Agreement.

         6. The Parties represent that they have been fully advised by the
counsel of their choosing regarding the meaning and effect of this Agreement,
that they rely wholly upon their own judgment, belief and knowledge of the
nature and extent of the damages

                                       6
<PAGE>

alleged and the liability questions involved in the Litigation, and covenant
that they have not been influenced to any extent whatsoever or induced to enter
this Agreement in reliance upon any statement, promise or representation of
another party or any of the other parties hereby released. The Parties, by their
signatures below, acknowledge that they have read this Agreement, that they
fully understand it, and that they have executed it of their own free will and
accord. The Parties further represent and warrant that:

         a.       They have not conveyed, transferred, assigned, pledged or
                  otherwise encumbered any of their rights in the claims
                  asserted in the Litigation, except for the interest
                  Ashabranner has previously conveyed to his attorneys, London &
                  Schaeffer, L.L.P. and as to which interest Ashabranner and
                  London & Schaeffer hereby agree to indemnify and hold harmless
                  the UST Released Parties from any and all claims.

         b.       There are no outstanding bills relating to any injury
                  attributable directly or indirectly to the claims in the
                  Litigation, and no statutory or common law liens exist to
                  secure payment for any such expenses;

         c.       They are fully competent and authorized to enter into this
                  Agreement and are doing so only after full consultation with
                  their counsel regarding the meaning and intent of this
                  Agreement and all of its terms.

         7. It is further expressly understood that by entering into this
Agreement, the Parties make no admission of any liability of any sort to one
another, which liability is expressly denied. Instead, this Agreement represents
a full and complete settlement of any and all disputes among the Parties, to
resolve once and for all every disputed claim that has been asserted or could
have been asserted arising from or related to the circumstances surrounding the
Litigation. This Agreement represents the complete

                                       7
<PAGE>

agreement of the Parties and the Parties have not agreed to do or omit to do
anything not expressly set forth in this Agreement.

         8. The Parties agree that although the specific terms of their
agreement shall remain confidential, upon inquiry each party is free to state
that they have resolved all of the outstanding disputes amicably and to their
mutual satisfaction.

         9. This Agreement shall be governed by the law of the State of Texas
and all parties hereby consent to the jurisdiction of the district courts of
Harris County, Texas regarding any disputes or disagreements which may later
arise regarding the enforcement, interpretation or construction of this
Agreement.

         10. This Agreement may be executed in multiple counterparts, each of
which when fully signed shall constitute an original document.

         Signed on the ______ day of April, 2000.

UST DELIVERY SYSTEMS, INC.

By:
   ----------------------------------
                             , its President
   --------------------------

Jack D. Ashabranner II.

-------------------------------------

                                       8
<PAGE>

APPROVED AS TO FORM & SUBSTANCE:

LONDON & SCHAEFFER, L.L.P.

By:
   ----------------------------------
   Richard London

COUNSEL FOR JACK D. ASHABRANNER II

ABRAMS SCOTT & BICKLEY, L.L.P.

By:
   ----------------------------------
   Barry Abrams

COUNSEL FOR UST DELIVERY SYSTEMS, INC.

                                       9
<PAGE>

                                    EXHIBIT A

                       IN THE UNITED STATES DISTRICT COURT
                       FOR THE SOUTHERN DISTRICT OF TEXAS
                                HOUSTON DIVISION

JACK D. ASHABRANNER II                 )
                                       )
                  Plaintiff            )
                                       )
vs.                                    ) Case No. H-98-1271
                                       ) JURY TRIAL DEMANDED
CORPORATE EXPRESS DELIVERY             )
SYSTEMS, INC. f/k/a U. S. DELIVERY     )
SYSTEMS, INC., CORPORATE               )
EXPRESS, INC., and CORPORATE           )
DELIVERY SYSTEMS-SOUTHWEST,            )
INC. F/K/A DISTRIBUTION                )
SOLUTIONS, INC.                        )
                                       )
                  Defendants           )

                                 FINAL JUDGMENT

         On this day the parties appeared through their respective counsel of
record to announce that the parties have resolved the pending litigation
amicably and agreed to its dismissal with prejudice. Accordingly,

         It is ordered that all of the claims asserted by each of the parties in
this action are dismissed with prejudice.

         All other relief not expressly granted is hereby denied.

         Each party shall bear its own costs of court.

         Signed on _______________________, 2000.

                                       ------------------------------------
                                       HONORABLE JOHN D. RAINEY
                                       UNITED STATES DISTRICT JUDGE

<PAGE>

APPROVED AS TO FORM & SUBSTANCE:

LONDON & SCHAEFFER

By:
   -----------------------------------
   Richard S. London
   STATE BAR NO. 1251330
   3118 Richmond, Suite 200
   Houston, Texas 77098
   (713) 524-7300
   (713) 528-5677 (telecopy)

COUNSEL FOR JACK D. ASHABRANNER II

ABRAMS SCOTT & BICKLEY, L.L.P.

By:
   -----------------------------------
   Barry Abrams
   State Bar No. 00822700
   600 Travis, Suite 6601
   Houston, Texas 77002
   (713) 228-6601
   (713) 228-6605 (telecopy)

   MAYER, BROWN & PLATT
   Alan N. Salpeter
   Caryn Jacobs
   Christina Egan
   190 South LaSalle Street
   Chicago, IL 60603
   (312) 782-0600
   (312) 701-7711 (telecopy)

COUNSEL FOR DEFENDANTS
CORPORATE EXPRESS DELIVERY SYSTEMS, INC.,
CORPORATE EXPRESS, INC., AND
CORPORATE EXPRESS DELIVERY SYSTEMS-SOUTHWEST, INC.

                                      A-2
<PAGE>

                                    EXHIBIT B

                               September 27, 2000

BY TELECOPY
-----------
Mr. Santos Trevino
Case Manager
American Arbitration Association
1750 Two Galleria Tower
13455 Noel Road
Dallas, Texas 75240-6636

         Re:    70 160 00265 99; JACK D. ASHABRANNER  II V. CORPORATE  EXPRESS
                DELIVERY SYSTEMS-SOUTHWEST, INC. F/K/A DISTRIBUTION SOLUTIONS,
                INC.; Before the American Arbitration Association

Dear Mr. Trevino:

         The parties have amicably resolved their pending dispute, agreed to
dismiss their respective claims with prejudice and agreed to assume
responsibility for their respective attorneys fees, costs and expenses in this
proceeding.

         Please notify the arbitrator of the parties' agreement and take the
necessary steps to have this proceeding dismissed.

         If you have any questions, please do not hesitate to contact us.

                                      Very truly yours,

                                      Richard London

                                      COUNSEL FOR JACK D. ASHABRANNER

                                      Barry Abrams

                                      Counsel for Corporate Express Delivery
                                      Systems-Southwest, Inc. f/k/a Distribution
                                      Solutions, Inc.

<PAGE>

                                    EXHIBIT C

          IMPORTANT: PLEASE READ CAREFULLY BEFORE SIGNING: SIGNIFICANT
                     REPRESENTATIONS ARE CALLED FOR HEREIN.

                       UNITED SHIPPING & TECHNOLOGY, INC.

                             SUBSCRIPTION AGREEMENT
                                       AND
                           LETTER OF INVESTMENT INTENT

United Shipping & Technology, Inc.
9850 51st Avenue North, Suite 110
Minneapolis, Minnesota 55442

Ladies and Gentlemen:

         To induce you to issue shares of common stock (the "Shares") of United
Shipping & Technology, Inc., a Utah corporation (the "Company") to the
undersigned, the undersigned acknowledge and represent that:

         1. the undersigned have received and reviewed the following documents
from the Company:

                  *        10-KSB Report of the Company for the fiscal year
                           ended June 30, 1999.

                  *        10-QSB Report for the fiscal quarters ended October
                           2, 1999 and January 1, 2000.

                  *        The Company's 1999 Annual Report to Shareholders.

                  *        The Company's preliminary prospectus on Form S-3
                           filed with the Securities and Exchange Commission on
                           March 1, 2000 (Registration No. 333-31414).

                  *        The Company's preliminary proxy materials as filed
                           with the SEC on April 17, 2000 in connection with its
                           Annual Meeting to be held on May 22, 2000.

                  *        8-K Current Report of the Company, to disclose
                           certain audited and unaudited financial statements of
                           the courier operations of Corporate Express Delivery
                           Systems, Inc., as filed with the Securities and
                           Exchange Commission on October 8, 1999, and as
                           amended on December 8, 1999.

                  a. The undersigned is able to bear the economic risk of the
         investment in the Shares;

<PAGE>

                  b. The undersigned has knowledge and experience in financial
         and business matters, that it is capable of evaluating the merits and
         risks of the prospective investment in the Shares and that it is able
         to bear such risks.

                  c. The undersigned understands an investment in the Shares are
         speculative but believes that the investment is suitable based upon the
         undersigned's investment objectives and financial needs, and has
         adequate means for providing for the undersigned's current financial
         needs and contingencies, and has no need for liquidity of investment
         with respect to the Shares;

                  d. The undersigned has been given access to full and complete
         information regarding the Company (including the opportunity to meet
         with Company officers and review all the above written documents and
         such other documents as the undersigned may have requested in writing)
         and has utilized such access to the undersigned's satisfaction for the
         purpose of obtaining information in addition to, or verifying
         information included in, the Company Materials;

                  e. The undersigned recognizes that the Shares, as an
         investment, involve a high degree of risk, including, but not limited
         to, the risks described in the S-3 Registration under the heading "Risk
         Factors"; and

                  f. The undersigned realizes that (i) the purchase of Shares is
         a long-term investment; (ii) the purchasers of Shares must bear the
         economic risk of investment for an indefinite period of time because
         the Shares have not been registered under the Securities Act of 1933,
         as amended (the "Act") and, therefore, cannot be sold unless they are
         subsequently registered under the Act or an exemption from such
         registration is available; and (iii) the transferability of the Shares
         is restricted, and (A) requires the written consent of the Company, (B)
         requires conformity with the restrictions contained in paragraphs 4 and
         5 below, and (C) will be further restricted by a legend placed on the
         certificate(s) representing the Shares stating that the Shares have not
         been registered under the Act and referring to the restrictions on
         transferability of the Shares, and by stop transfer orders or notations
         on the Company's records referring to the restrictions on
         transferability.

         2. The undersigned has been advised that the Shares are not being
registered under the Act or relevant state securities laws pursuant to
exemptions from the Act and such laws, and that the Company's reliance upon such
exemptions is predicated in part on the undersigned's representations of the
undersigned to the Company contained herein. The undersigned represents and
warrants that the Shares are being purchased for his or her own account and for
investment and without the intention of reselling or redistributing the same,
that the undersigned has made no agreement with others regarding any of such
Shares and that his or her financial condition is such that it is not likely
that it will be necessary to dispose of any of such Shares in the foreseeable
future. The undersigned further represents and agrees that if, contrary to his
or her foregoing intentions, the undersigned should later desire to dispose of
or transfer any of such Shares in any manner, the undersigned shall not do so
without first obtaining (a) the opinion of counsel designated by the Company
that such proposed disposition or transfer lawfully may be made without the
registration of such Shares for such purpose pursuant to the Act, as then in
effect, and applicable state securities laws, or (b) such registrations (it
being

                                      C-2
<PAGE>

expressly understood that the Company shall not have any obligation to register
the Shares for such purpose).

         The undersigned agrees that the Company may place a following
         restrictive legend on the certificate(s) representing the Shares,
         containing substantially the following language:

                  The Shares represented by this Certificate were issued without
                  registration under the Securities Act of 1933, as amended (the
                  "Act"), and without registration under state securities laws,
                  in reliance upon exemptions contained in the Act and such
                  laws. No transfer of these Shares or any interest therein may
                  be made except pursuant to effective registration statements
                  under said laws unless this Corporation has received an
                  opinion of counsel satisfactory to it that such transfer or
                  disposition does not require registration under said laws and,
                  for any sales under Rule 144 of the Act, such evidence as it
                  shall request for compliance with that rule.

         The undersigned agrees and consents that the Company may place a stop
         transfer order on the Certificate(s) representing the Shares to assure
         the undersigned's compliance with this Agreement and the matters
         referenced above. The above legend will be removed if and when the
         Shares are registered under the Act.

         3. The undersigned acknowledges that the Company at a future date may
file a registration statement (the "Registration Statement") with the Securities
and Exchange Commission to facilitate an underwritten public offering of its
securities. The undersigned agrees that should such an initial public offering
be made and should the managing underwriter of such offering require, the
undersigned will not, without the prior written consent of the Company and such
underwriter, during the Lock Up Period as defined herein: (i) sell, transfer or
otherwise dispose of, or agree to sell, transfer or otherwise dispose of any of
the Shares beneficially held by the undersigned during the Lock Up Period; (ii)
sell, transfer or otherwise dispose of, or agree to sell, transfer or otherwise
dispose of any options, rights or warrants to purchase any of the Shares
beneficially held by the undersigned during the Lock Up Period; or (iii) sell or
grant, or agree to sell or grant, options, rights or warrants with respect to
any of the Shares. The foregoing does not prohibit gifts to donees or transfers
by will or the laws of descent to heirs or beneficiaries provided that such
donees, heirs and beneficiaries shall be bound by the restrictions set forth
herein. The term "Lock Up Period" shall mean the lesser of (x) 180 days or (y)
the period during which Company officers and directors are restricted by the
managing underwriter from effecting any sales or transfers of the Company's
Common Stock. The Lock Up Period shall commence on the effective date of the
underwritten offering. The obligation of the undersigned to abide by this
paragraph shall be operative only if the Company's executive officers are
similarly bound.

         4. The undersigned represents and warrants that the undersigned is a
bona fide resident of, and is domiciled in _______________.

                                      C-3
<PAGE>

         5. Accredited Status. The undersigned represents and warrants as
follows (CHECK IF APPLICABLE):

         _______  A.       The undersigned is an individual with a net worth, or
                           a joint net worth together with his or her spouse, in
                           excess of $1,000,000. (In calculating net worth, you
                           may include equity in personal property and real
                           estate, including your principal residence, cash,
                           short-term investments, stock and securities. Equity
                           in personal property and real estate should be based
                           on the fair market value of such property minus debt
                           secured by such property.)

         _______  B.       The undersigned is an individual with income in
                           excess of $200,000 in each of the prior two years and
                           reasonably expects an income in excess of $200,000 in
                           the current year.

         ________ C.       The undersigned is an individual who, with his or her
                           spouse, had joint income in excess of $300,000 in
                           each of the prior two years and reasonably expects
                           joint income in excess of $300,000 in the current
                           year.

         ________ D.       The undersigned is a director or executive officer of
                           RocketChips, Inc.

         ________ E.       The undersigned, if other than an individual, is an
                           entity all of whose equity owners meet one of the
                           tests set forth in (A) through (D) above.

         ________ F.       The undersigned is an entity, and is an "Accredited
                           Investor" as defined in Rule 501(a) of Regulation D
                           under the Act. This representation is based on the
                           following (check one or more, as applicable):

                           ________ 1.       The undersigned (or, in the case of
                                             a trust, the undersigned trustee)
                                             is a bank or savings and loan
                                             association as defined in Sections
                                             3(a)(2) and 3(a)(5)(A),
                                             respectively, of the Act acting
                                             either in its individual or
                                             fiduciary capacity.

                           ________ 2.       The undersigned is an insurance
                                             company as defined in section 2(13)
                                             of the Act.

                           ________ 3.       The undersigned is an investment
                                             company registered under the
                                             Investment Company Act of 1940 or a
                                             business development company as
                                             defined in Section 2(a)(48) of that
                                             Act.

                                      C-4
<PAGE>

                           ________ 4.       The undersigned is a Small Business
                                             Investment Company licensed by the
                                             United States Small Business
                                             Administration under Section 301(c)
                                             or (d) of the Small Business
                                             Investment Act of 1958.

                           ________ 5.       The undersigned is an employee
                                             benefit plan within the meaning of
                                             Title I of the Employee Retirement
                                             Income Security Act of 1974
                                             ("ERISA") and either (check one or
                                             more, as applicable):

                                       _____ a.       the investment decision is
                                                      made by a plan fiduciary,
                                                      as defined in Section
                                                      3(21) of ERISA, which is
                                                      either a bank, savings and
                                                      loan association,
                                                      insurance company, or
                                                      registered investment
                                                      advisor; or

                                       _____ b.       the employee benefit plan
                                                      has total assets in excess
                                                      of $5,000,000; or

                                       _____ c.       the plan is a
                                                      self-directed plan with
                                                      investment decisions made
                                                      solely by persons who are
                                                      "Accredited Investors" as
                                                      defined under the Act.

                           ________ 6.       The undersigned is a private
                                             business development company as
                                             defined in Section 202(a)(22) of
                                             the Investment Advisors Act of
                                             1940.

                           ________ 7.       The undersigned has total assets in
                                             excess of $5,000,000, was not
                                             formed for the specific purpose of
                                             acquiring Shares of the Company and
                                             is one or more of the following
                                             (check one or more, as
                                             appropriate):

                                       _____ a.       an organization described
                                                      in Section 501(c)(3) of
                                                      the Internal Revenue Code;
                                                      or

                                      C-5
<PAGE>

                                       _____ b.       a corporation; or

                                       _____ c.       a Massachusetts or similar
                                                      business trust; or

                                       _____ d.       a partnership.

                           ________ 8.       The undersigned is a trust with
                                             total assets exceeding $5,000,000
                                             which was not formed for the
                                             specific purpose of acquiring
                                             Shares of the Company and whose
                                             purchase is directed by a person
                                             who has such knowledge and
                                             experience in financial and
                                             business matters that the
                                             undersigned is capable of
                                             evaluating the merits and risks of
                                             the investment in the Shares.

                                      C-6
<PAGE>

                                 SIGNATURE PAGE

Dated: ______________________, 2000.

                                          ------------------------------------
Full Name                                 Full Name

                                          ------------------------------------
Signature (include title, if entity)      Signature (include title, if entity)

Type of Entity (if applicable):

_____ Corporation _____ Partnership

_____ Other __________________________
            (specify)

Type of Entity (if applicable):

_____ Corporation _____ Partnership

_____ Other __________________________
            (specify)

                                          ------------------------------------
Address                                   Address

                                          ------------------------------------
City, State and Zip Code                  City, State and Zip Code

                                          ------------------------------------
Mailing Address                           Mailing Address

                                          ------------------------------------
City, State and Zip Code                  City, State and Zip Code

                                          ------------------------------------
Tax Identification or Social              Tax Identification or Social
Security Number                           Security Number

                                      C-7
<PAGE>

                       IN THE UNITED STATES DISTRICT COURT
                       FOR THE SOUTHERN DISTRICT OF TEXAS
                                HOUSTON DIVISION

JACK D. ASHABRANNER II            )
                                  )
         PLAINTIFF,               )
                                  ) CASE NO. H-98-1271
VS.                               ) JURY TRIAL DEMANDED
                                  )
CORPORATE EXPRESS DELIVERY        )
SYSTEMS, INC. f/k/a/ DELIVERY     )
SYSTEMS, INC., CORPORATE          )
DELIVERY SYSTEMS-SOUTHWEST,       )
INC., f/k/a DISTRIBUTION          )
SOLUTIONS, INC.                   )

         DEFENDANTS.

             AMENDMENT TO MUTUAL RELEASE AND CONTRACT OF SETTLEMENT

         1. The parties to this Amendment to the Mutual Release and Contract of
Settlement signed June 20, 2000 (the "Amended Agreement") are Jack D.
Ashabranner II ("Ashabranner") and UST Delivery Systems, Inc., f/k/a Corporate
Express Delivery Systems, Inc., f/k/a U. S. Delivery Systems, Inc., ("UST")
(Ashabranner and UST are collectively referred to herein as the "Parties") and
United Shipping & Technology, Inc. a Utah Corporation ("USTI"), parent
corporation of UST.

         2. The Parties agree to amend the Mutual Release and Contract of
Settlement signed June 20, 2000 (the "Agreement") in the following respects:

         a.       The first sentence of Paragraph 3(d) of the Agreement is
                  amended to read as follows:

                  "Within five (5) business days after the execution of the
                  Amendment to Mutual Release and Contract of Settlement USTI
                  will issue and deliver to American Stock Transfer and Trust
                  Company ("Escrow Agent"), for the benefit of Ashabranner and L
                  & S, jointly, 100,000 shares of USTI common stock, par value
                  $.0004 per share (hereafter the "Stock")."

<PAGE>

         b.       Paragraph 3(e) of the Agreement is amended to read as follows:

                  "e.      Monthly Payments by USTI

                  In the event the Registration Statement is not declared
                  effective by the SEC on or before August 8, 2000, such that
                  all restrictions on the resale of the Stock to the public
                  shall be immediately removed and the Stock transferred from
                  the Escrow Agent to Ashabranner and L & S (the "Transfer"),
                  Ashabranner and L & S shall be entitled to receive interest
                  payable monthly (the "Monthly Payment") on the principal sum
                  of $550,000, calculated at an annual rate equal to the prime
                  rate of interest charged by the Bank of America, plus one
                  percent (1%) (based upon a 365-day year), commencing with the
                  execution date hereof and continuing from month to month until
                  the date this Agreement is terminated by Ashabranner (the
                  "Termination date") or the date the Transfer takes place,
                  whichever occurs first. The first Monthly Payment of interest
                  for the period from the date of execution hereof until July
                  31, 2000, shall be due and payable on or before the tenth day
                  of August, 2000, and any additional Monthly Payments due
                  thereafter shall be due and payable on or before the tenth day
                  of each month following the month for which interest is due.
                  If the Transfer or Termination date fall before the end of a
                  month, the interest due shall be prorated accordingly, and due
                  and payable within ten days following the Transfer or
                  Termination Date. Such Monthly Payments shall be payable by
                  check, cashier's check or wire transfer. UST shall be deemed
                  in default of this provision only if UST fails to pay any
                  interest installment within 5 days after receipt of written
                  notice of nonpayments from either Ashabranner or L & S."

         c.       Paragraph 3(g) of the Agreement is amended to read as follows:

                  "g.      Termination by Ashabranner

                  "At any time after August 31, 2000, but prior to the effective
                  date of the registration Statement, Ashabranner may, upon
                  written notice to the Escrow Agent and UST, declare this
                  Agreement terminated. In the event this Agreement is
                  terminated by Ashabranner:

                           (i)      The Order of Dismissal shall be returned to
                                    Ashabranner; the restrictions of Paragraph
                                    3(a)(ii) are terminated and parties shall
                                    inform the Court that this Agreement has
                                    terminated:

                           (ii)     The $50,000 cash payout made by UST pursuant
                                    to Paragraph 3(c) and all Monthly Payments
                                    of interest due hereunder as of the
                                    Termination Date shall be retained by
                                    Ashabranner as liquidated damages, but such
                                    amount shall be deemed a credit against any
                                    amount recovered by Ashabranner as a result
                                    of a judicial determination of the
                                    Litigation; and

<PAGE>

                           (iii)    The releases of the Parties under sections 4
                                    and 5 hereof shall be null and void."

         3. This Amended Agreement may be executed in multiple counterparts,
each of which when fully signed shall constitute an original document.

         Signed on the 31st day of July, 2000

         UST DELIVERY SERVICES, INC.          UNITED SHIPPING & TECHNOLOGY, INC.

         By:                                  By:
            ----------------------------         -----------------------------

         Title:                               Title:
               -------------------------            --------------------------EXHIBIT 10.63

        THIS WARRANT WAS ORIGINALLY ISSUED AS OF MAY 31, 2000 AND HAS
        NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT,
        THE RULES AND REGULATIONS THEREUNDER OR THE PROVISIONS OF THIS
        WARRANT. THIS WARRANT IS ALSO SUBJECT TO A SECURITIES PURCHASE
        AGREEMENT DATED AS OF MAY 15, 2000 BY AND BETWEEN UNITED
        SHIPPING & TECHNOLOGY, INC. (THE "COMPANY") AND THE PURCHASERS
        NAMED THEREIN, AS AMENDED FROM TIME TO TIME. A COPY OF SUCH
        SECURITIES PURCHASE AGREEMENT WILL BE FURNISHED WITHOUT CHARGE
        BY THE COMPANY TO THE HOLDER HEREOF UPON REQUEST.

                             STOCK PURCHASE WARRANT
                             TO ACQUIRE COMMON STOCK

Date of Issuance: As of May 31, 2000

         For value received, UNITED SHIPPING & TECHNOLOGY, INC., a Utah
corporation (the "Company"), hereby grants to Bayview Capital Partners LP, a
Delaware limited partnership ("Bayview"), or its transferees and assigns, the
right to purchase from the Company up to 28,147 Warrant Shares (as defined
herein) at a price per share equal to (i) the lowest exercise price per share of
Common Stock (the "Base Exercise Price") of any of the initially approved
Options for 3,000,000 shares of Common Stock issued pursuant to the Company's
2000 Stock Option Plan (the "2000 Options") less (ii) in the event that an
indemnification payment is due by the Company pursuant to Section 9.06 of the
Securities Purchase Agreement dated as of May 15, 2000 between the Company and
the purchasers named therein (as amended, restated or modified from time to
time, the "Purchase Agreement") and to the extent such indemnification payment
is payable pursuant to the terms thereof by reduction of the exercise price of
the Common Warrants (as defined in the Purchase Agreement) issued to the
purchasers thereunder, an amount equal to such reduction in the exercise price
of the Common Warrants (PROVIDED that the minimum Exercise Price resulting from
the adjustments in this clause (ii) as of the final date of such adjustments
shall be $.004 per share) (such price per share, as adjusted from time to time,
the "Exercise Price"). In the event that the difference between the highest and
the lowest exercise price per share of Common Stock of all of the 2000 Options
is material, Bayview and the Company will negotiate in good faith to consider a
mutually acceptable, alternative formula for calculating the Base Exercise Price
in a manner which is not unduly burdensome for either party and is consistent
with any such adjustment to the Base Exercise Price of the Common Warrants
issued to the purchasers under the Purchase Agreement. Certain capitalized items
used herein

<PAGE>

are defined in Section 5 hereof. Certain other capitalized terms used herein are
defined in the Purchase Agreement.

         This Warrant is subject to the following provisions:

         SECTION 1. Exercise of Warrant.

         1A. Exercise Period. The purchase rights represented by this Warrant
may only be exercised, in whole or in part, at any time, and from time to time
until 5:00 p.m., New York time, on May 31, 2004 or, if such day is not a
business day, on the next preceding business day (the "Exercise Period");
PROVIDED, that (i) this Warrant may only be exercised in the event and to the
extent that any of the 2000 Options have been exercised by the holders thereof
from time to time for a total number of Warrant Shares equal to (x) the total
number of shares of Common Stock then issuable upon full exercise of this
Warrant (plus any Warrant Shares that have been previously issued upon exercise
of any portion of this Warrant), multiplied by (y) a fraction, the numerator of
which is the aggregate number of shares of Common Stock represented by all 2000
Options that have been so exercised, and denominator of which is the total
number of 2000 Options that have been issued and have not been forfeited or
terminated (provided that this Warrant will become fully exercisable in the
event that any indemnification payment by the Company is due pursuant to Section
9.06 of the Purchase Agreement), and (ii) any delay described in Section 1B(ii)
which causes the issuance of the Warrant Shares to occur beyond the Exercise
Period shall in no event limit or affect the Registered Holder's rights to
receive such Warrant Shares at the termination of such delay.

         1B.      Exercise Procedure.

                  (i) This Warrant shall be deemed to have been exercised when
all of the following items have been delivered to the Company (the "Exercise
Time"):

                           (a) a completed Exercise Agreement, as described in
         Section 1C below, executed by the Person exercising all or part of the
         purchase rights represented by this Warrant (the "Purchaser");

                           (b) this Warrant;

                           (c) if the Purchaser is not the Registered Holder, an
         Assignment or Assignments in the form set forth in Exhibit II attached
         hereto evidencing the assignment of this Warrant to the Purchaser; and

                           (d) a check or wire transfer payable to the Company
         in an amount equal to the product of the Exercise Price multiplied by
         the number of Warrant Shares being purchased upon such exercise (the
         "Aggregate Exercise Price").

                                       2
<PAGE>

                  (ii) Certificates for Warrant Shares purchased upon exercise
of this Warrant shall be delivered by the Company to the Purchaser within five
days after the date of the Exercise Time together with any cash payable in lieu
of a fraction of a share pursuant to the provisions of Section 14 hereof;
PROVIDED, that in the event that the applicable waiting period under the
Hart-Scott-Rodino Improvements Act of 1976, as amended, as described in Section
7.02 of the Purchase Agreement has not expired, the Company shall not issue such
Warrant Shares until such waiting period has expired. Unless this Warrant has
expired or all of the purchase rights represented hereby have been exercised,
the Company shall prepare a new Warrant, substantially identical hereto,
representing the rights formerly represented by this Warrant which have not
expired or been exercised and shall, within such five-day period, deliver such
new Warrant to the Person designated for delivery in the Exercise Agreement.

                  (iii) The Warrant Shares issuable upon the exercise of this
Warrant shall be deemed to have been issued to the Purchaser at the Exercise
Time, and the Purchaser shall be deemed for all purposes to have become the
Registered Holder of such Warrant Shares at the Exercise Time.

                  (iv) The issuance of certificates for Warrant Shares upon
exercise of this Warrant shall be made without charge to the Registered Holder
or the Purchaser for any issuance tax in respect thereof or other cost incurred
by the Company in connection with such exercise and the related issuance of
Warrant Shares.

                  (v) The Company shall not close its books against the transfer
of this Warrant or of any Warrant Shares issued or issuable upon the exercise of
this Warrant in any manner which interferes with the timely exercise of this
Warrant. 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 Warrant Shares
acquirable upon exercise of this Warrant is at all times equal to or less than
the Exercise Price, then in effect. In the event that the Company fails to
comply with its obligations set forth in the foregoing sentence, the Purchaser
may (but shall not be obligated to) purchase Warrant Shares hereunder at par
value, and the Company shall be obligated to reimburse the Purchaser for the
aggregate amount of consideration paid in connection with such exercise in
excess of the Exercise Price then in effect.

                  (vi) The Company shall assist and cooperate with the
Registered Holder or any Purchaser required to make any governmental filings or
obtain any governmental approvals prior to or in connection with any exercise of
this Warrant (including any filings described in Section 1B(ii) hereof.

                  (vii) Notwithstanding any other provision hereof, if an
exercise of any portion of this Warrant is to be made in connection with a
public offering or a sale of the Company (pursuant to a merger, sale of stock,
or otherwise), such exercise may at the election of the Registered Holder be
conditioned upon the consummation of such transaction, in which case such
exercise shall not be deemed to be effective until immediately prior to the
consummation of such transaction.

                                       3
<PAGE>

                  (viii) The Company shall at all times reserve and keep
available out of its authorized but unissued Common Stock solely for the purpose
of issuance upon the exercise of this Warrant, the maximum number of Warrant
Shares issuable upon the exercise of this Warrant. All Warrant Shares which are
so issuable shall, when issued and upon the payment of the applicable Exercise
Price, be duly and validly issued, fully paid and nonassessable and free from
all taxes, liens and charges except those created by actions of the holder
hereof. The Company shall take all such reasonable actions as may be necessary
to ensure that all such Warrant Shares may be so issued without violation by the
Company of any applicable law or governmental regulation or any requirements of
any domestic securities exchange upon which shares of Common Stock or other
securities constituting Warrant Shares may be listed (except for official notice
of issuance which shall be immediately delivered by the Company upon each such
issuance).

                  (ix) If the Warrant Shares issuable by reason of exercise of
this Warrant are convertible into or exchangeable for any other stock or
securities of the Company, the Company shall, at the Purchaser's option and upon
surrender of this Warrant by such Purchaser as provided above together with any
notice, statement or payment required to effect such conversion or exchange of
Warrant Shares, deliver to such Purchaser (or as otherwise specified by such
Purchaser) a certificate or certificates representing the stock or securities
into which the Warrant Shares issuable by reason of such conversion are
convertible or exchangeable, registered in such name or names and in such
denomination or denominations as such Purchaser has specified.

                  (x) The Company shall not, and shall not permit its
Subsidiaries to, directly or indirectly, by any action (including, without
limitation, reincorporation in a jurisdiction other than Utah, amending its
Articles of Incorporation or through any Organic Change (as defined in Section
2D), issuance or sale of securities or any other voluntary action) avoid or seek
to avoid the observance or performance of any of terms of this Warrant (except
for any action which ratably affects all Warrant Shares and shares of Common
Stock), but shall at all times in good faith assist in the carrying out of all
such terms of this Warrant. Without limiting the generality of the foregoing,
the Company shall (a) use its reasonable best efforts to obtain all such
authorizations, exemptions. or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant, and (b) not undertake any reverse stock split,
combination, reorganization, or other reclassification of its capital stock
which would have the effect of making this Warrant exercisable for less than one
share of Common Stock.

         1C. Exercise Agreement. Upon any exercise of this Warrant, the
Purchaser shall deliver to the Company an Exercise Agreement in substantially
the form set forth as Exhibit I hereto, except that if the Warrant Shares are
not to be issued in the name of the Registered Holder, the Exercise Agreement
shall also state the name of the Person to whom the certificates for the Warrant
Shares are to be issued, and if the number of Warrant Shares to be issued does
not include all of the Warrant Shares purchasable hereunder, it shall also state
the name of the

                                       4
<PAGE>

Person to whom a new Warrant for the unexercised portion of the rights hereunder
is to be issued.

         SECTION 2. Adjustment of Exercise Price and Number of Shares. In order
to prevent dilution of the rights granted under this Warrant, the Exercise Price
shall be subject to adjustment from time to time as provided in this Section 2,
and the number of Warrant Shares obtainable upon exercise of this Warrant shall
be subject to adjustment from time to time as provided in this Section 2.

         2A. Adjustment of Exercise Price and Number of Shares upon Issuance of
Common Stock.

         (i) If and whenever after the original date of issuance of this Warrant
the Company issues or sells, or in accordance with Section 2B is deemed to have
issued or sold, any shares of Common Stock for a consideration per share less
than the Market Price of the Common Stock determined as of the date of such
issue or sale, then immediately upon such issue or sale the Exercise Price shall
be determined by multiplying the Exercise Price in effect immediately prior to
such issue or sale by a fraction, the numerator of which shall be the sum of (1)
the number of shares of Common Stock Deemed Outstanding immediately prior to
such issue or sale multiplied by the Market Price of the Common Stock determined
as of the date of such issuance of sale, plus (2) the consideration, if any,
received by the Company upon such issue or sale, and the denominator of which
shall be the product derived by multiplying the Market Price of the Common Stock
by the number of shares of Common Stock Deemed Outstanding immediately after
such issue or sale. In the event of a change in the Base Exercise Price at any
time after the original date of issuance of the Warrant, any adjustments to the
Exercise Price previously made pursuant to this Section 2 shall be recalculated
on a PRO FORMA basis as if the Base Exercise Price at the time of each such
adjustment was the Base Exercise Price after giving effect to such change. In
the event that there is an Indemnification Amount which result in a reduction of
the Exercise Price, any adjustments to the Exercise Price previously made
pursuant to this Section 2 shall be recalculated on a PRO FORMA basis as if the
reduction resulting from the Indemnification Amount had occurred prior to each
such adjustment.

         (ii) Upon each such adjustment of the Exercise Price hereunder, the
number of Warrant Shares acquirable upon exercise of this Warrant shall be
adjusted to the number of shares determined by multiplying the Exercise Price in
effect immediately prior to such adjustment by the number of Warrant Shares
acquirable upon exercise of this Warrant immediately prior to such adjustment
and dividing the product thereof by the Exercise Price resulting from such
adjustment.

         (iii) Notwithstanding the foregoing, there shall be no adjustment to
the Exercise Price or the number of Warrant Shares obtainable upon exercise of
this Warrant with respect to (A) the issuance or granting of Common Stock,
Options or Convertible Securities to employees, officers. consultants and
directors of the Corporation and its Subsidiaries or the exercise thereof
pursuant to the Stock Option Plans, (B) the issuance or granting of Options for
up to 75,000 shares of

                                       5
<PAGE>

Common Stock (as adjusted for any stock splits, reverse stock splits, share
combinations, stock dividends, or similar reclassifications) to employees and
consultants of the Corporation outside of the Stock Option Plans, (C) the
issuance of Series B Preferred Stock upon exercise of the Preferred Warrants,
(D) the issuance of Common Stock upon (i) exercise of the Warrant To Purchase
Shares of Common Stock of United Shipping & Technology. Inc, or (ii) the
conversion of the 9% Convertible Subordinated Promissory Note, in each case,
dated as of April 25, 2000, issued by the Company to J. Iver & Company, (E) the
issuance of Common Stock upon exercise of the Warrant To Purchase Common Stock
of United Shipping & Technology. Inc., dated as of September 24, 1999, issued to
Bayview Capital Partners L.P. (the "Bayview Warrant"), (F) the issuance of
Common Stock upon conversion of the Convertible Subordinated Note, dated as of
September 24, 1999, issued by the Company to CEX Holdings, Inc. (the "CEX
Convertible Note"), (G) the issuance of no more than 100,000 shares of Common
Stock (as adjusted for any stock splits, reverse stock splits, share
combinations, stock dividends or similar reclassifications) to Jack D.
Ashabranner II (or a trust solely for his benefit) solely as payment in
satisfaction of a court-approved settlement of his claim against Corporate
Express Delivery Systems, Inc., ET AL., pending in the United States District
Court for the Southern District of Texas, Houston Division (Case No. H-9
8-1271), (H) the issuance of Common Stock upon exercise of the Company's Series
B Convertible Preferred Stock, par value $.004 per share (the "Preferred Stock")
and (I) the issuance of Preferred Stock upon exercise of the Preferred Warrants.

         2B. Effect on Exercise Price of Certain Events. For purposes of
determining the adjusted Exercise Price under Section 2A, the following shall be
applicable:

         (i) Issuance of Rights or Options. If the Company in any manner grants
or sells any Options and the price per share for which Common Stock is issuable
upon the exercise of such Options, or upon conversion or exchange of any
Convertible Securities issuable upon exercise of such Options, is less than the
Market Price of the Common Stock determined as of such time, then the total
maximum number of shares of Common Stock issuable upon the exercise of such
Options, or upon conversion or exchange of the total maximum amount of such
Convertible Securities issuable upon the exercise of such Options, shall be
deemed to be outstanding and to have been issued and sold by the Company at such
time for such price per share. For purposes of this paragraph, the "price per
share for which Common Stock is issuable" is determined by dividing (A) the
total amount, if any, received or receivable by the Company as consideration for
the granting or sale of such Options, plus the minimum aggregate amount of
additional consideration payable to the Company upon the exercise of all such
Options, plus in the case of such Options which are exercisable into Convertible
Securities. the minimum 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 Options or upon the
conversion or exchange of all such Convertible Securities issuable upon the
exercise of such Options. No further adjustment of the Exercise Price shall be
made upon the actual issuance of such Common Stock or of such Convertible
Securities upon the exercise of such Options or upon

                                       6
<PAGE>

the actual issuance of such Common Stock upon conversion or exchange of such
Convertible Securities.

         (ii) Issuance of Convertible Securities. If the Company in any manner
issues or sells any Convertible Securities and the price per share for which
Common Stock is issuable upon conversion or exchange thereof is less than the
Market Price of the Common Stock determined as of such time, then the maximum
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 the purposes of this
paragraph, the "price per share for which Common Stock is issuable" is
determined by dividing (A) the total amount received or receivable by the
Company as consideration for the issue or sale of such Convertible Securities,
plus the minimum 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 issue of such Common Stock upon conversion or exchange
of such Convertible Securities, and if any such issue or sale of such
Convertible Securities is made upon exercise of any Options for which
adjustments of the Exercise Price had been or are to be made pursuant to other
provisions of this Section 2, no further adjustment of the Exercise Price shall
be made by reason of such issue or sale.

         (iii) Change in Option Price or Conversion Rate. If the purchase price
provided for in any Options, the additional consideration, if any, payable upon
the issue, 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, the Exercise Price in effect at the time of such
change shall be adjusted immediately to the Exercise Price which would have been
in effect at such time had such Options or Convertible Securities still
outstanding provided for such changed purchase price, additional consideration
or changed conversion rate, as the case may be, at the time initially granted,
issued or sold and the number of Warrant Shares shall be correspondingly
adjusted. For purposes of this Section 2B, if the terms of any Option or
Convertible Security which was outstanding as of the date of issuance of this
Warrant are changed in the manner described in the immediately preceding
sentence, then such Option or Convertible Security and the Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such change; PROVIDED, that (A) no such change
shall at any time cause the Exercise Price hereunder to be increased, and (B) no
adjustment to the Conversion Price pursuant to this clause (iii) shall be made
as a result of any adjustment to the exercise and/or conversion price with
respect to the Bayview Warrant, CEX Convertible Note or the Preferred Warrants
pursuant to and in accordance with the anti-dilution protection provisions of
such securities as in effect on May 31, 2000.

         (iv) Treatment of Expired Options and Unexercised Convertible
Securities. Upon the expiration of any Option or the termination of any right to
convert or exchange any Convertible Securities without the exercise of such
Option or right, the Exercise Price then in effect and the number of Warrant
Shares acquirable hereunder shall be adjusted immediately to the Exercise

                                       7
<PAGE>

Price and the number of shares which would have been in effect at the time of
such expiration or termination had such Option or Convertible Securities, to the
extent outstanding immediately prior to such expiration or termination, never
been issued. For purposes of this Section 2B, the expiration or termination of
any Option or Convertible Security which was outstanding as of the date of
issuance of this Warrant shall not cause the Exercise Price hereunder to be
adjusted unless, and only to the extent that, a change in the terms of such
Option or Convertible Security caused it to be deemed to have been issued after
the date of issuance of this Warrant.

         (v) Calculation of Consideration Received. If any Common Stock, Options
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, Options or
Convertible Securities are issued or sold for a consideration other than cash,
the amount of the consideration other than cash received by the Company shall be
the fair value of such consideration, except where such consideration consists
of securities, in which case the amount of consideration received by the Company
shall be the Market Price thereof as of the date of receipt. The fair value of
any consideration other than cash or securities shall be determined jointly by
the Company and the Required Holders. If such parties are unable to reach
agreement within a reasonable period of time, such fair value shall be
determined by an appraiser jointly selected by the Company and the Required
Holders. The determination of such appraiser shall be final and binding on the
Company and the Registered Holders of the Warrants, and the fees and expenses of
such appraiser shall be paid by the Company.

         (vi) Integrated Transactions. In case any Option (other than the
Preferred Warrants) is issued in connection with the issue or sale of other
securities of the Company, together comprising one integrated transaction in
which no specific consideration is allocated to such Options by the parties
thereto, the Options shall be deemed to have been issued without consideration.

         (vii) Treasury Shares. The number of shares of Common Stock outstanding
at any given time does not include shares owned or held by or for the account of
the Company or any of its Subsidiaries, and the disposition of any shares so
owned or held shall be considered an issue or sale of Common Stock.

         (viii) Record Date. 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, Options or in Convertible Securities
or (B) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date shall be deemed to be the date of the issue or
sale of the shares of 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.

         2C. 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

                                       8
<PAGE>

of its outstanding shares of Common Stock into a greater number of shares, the
Exercise Price in effect immediately prior to such subdivision shall be
proportionately reduced and the number of Warrant Shares obtainable upon
exercise of this Warrant shall be proportionately increased. If the Company at
any time combines (by reverse stock split or otherwise) one or more classes of
its outstanding shares of 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 Warrant Shares obtainable upon
exercise of this Warrant shall be proportionately decreased.

         2D. 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 in each case is effected in such a way that the holders of Common Stock
are entitled to receive (either directly or upon subsequent liquidation) stock,
securities or assets with respect to or in exchange for Common Stock is referred
to herein as "Organic Change." Prior to the consummation of any Organic Change,
the Company shall make appropriate provision to insure that each of the
Registered Holders of the Warrants shall thereafter have the right to acquire
and receive, in lieu of the Warrant Shares immediately theretofore acquirable
and receivable upon the exercise of such holder's Warrant, such shares of stock,
securities or assets as each such Registered Holder would have received in
connection with such Organic Change if such Registered Holder had exercised its
Warrants in full immediately prior to such Organic Change. In each such case,
the Company shall make appropriate provision with respect to such holders'
rights and interests to insure that the provisions of this Section 2 and
Sections 3 and 4 hereof shall thereafter be applicable to the Warrants. 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 entity purchasing such assets
assumes by written instrument, the obligation to deliver to each such holder
such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holder may be entitled to acquire.

         2E. Certain Events. If any event occurs of the type contemplated by the
provisions of this Section 2 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 Warrant Shares obtainable upon exercise of this Warrant so as
to protect the rights of the holders of the Warrants; PROVIDED, that no such
adjustment shall increase the Exercise Price or decrease the number of Warrant
Shares obtainable as otherwise determined pursuant to this Section 2.

         2F. Notices,

         (i) Immediately upon any adjustment of the Exercise Price, the Company
shall give written notice thereof to the Registered Holder, setting forth in
reasonable detail and certifying the calculation of such adjustment.

                                       9
<PAGE>

         (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
Holders at least 20 days prior to the date on which any Organic Change,
dissolution or liquidation shall take place.

         Section 3. Liquidating Dividends. If the Company declares or pays a
dividend upon the Common Stock payable otherwise than in cash out of earnings or
earned surplus (determined in accordance with generally accepted accounting
principles, consistently applied) except for a stock dividend payable in shares
of Common Stock (a "Liquidating Dividend"), then the Company shall pay to the
Registered Holder of this Warrant at the time of payment thereof the Liquidating
Dividend which would have been paid to such Registered Holder on the Warrant
Shares had this Warrant been fully exercised immediately prior to the date on
which a record is taken for such Liquidating Dividend, or, if no record is
taken, the date as of which the record holders of Common Stock entitled to such
dividends are to be determined.

         Section 4. Purchase Rights. If at any time the Company grants, issues
or sells an, Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any
class of Common Stock (the "Purchase Rights"), then the Registered holder of
this Warrant shall be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such holder could have
acquired if such holder had held the number of Warrant Shares acquirable upon
complete exercise of this Warrant immediately before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of Common Stock are to
be determined for the grant, issue or sale of such Purchase Rights.

         SECTION 5. Definitions. The following terms have the meanings set forth
below:

         "Common Stock" means, collectively, the Company's common stock, par
value $.004 per share, and any securities into which such common stock is
hereafter converted or exchanged,

         "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 2B(i) and
2B(ii) hereof whether or not the Options or Convertible Securities are actually
exercisable at such time.

         "Market Price" of any security means the average of the closing prices
of such security's sales on all securities exchanges on which such security may
at the time be listed, or, if there has 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

                                       10
<PAGE>

of 4:00 P.M., New York time, 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 the twenty (20) consecutive trading days
immediately prior to the day as of which "Market Price" is being determined. If
at any time such security is not listed on any securities exchange or quoted in
the NASDAQ System or the over-the-counter market, the "Market Price" shall be
the fair value thereof determined jointly by the Corporation and the Required
Holders. If such parties are unable to reach agreement within a reasonable
period of time, such fair value shall be determined by an independent appraiser
experienced in valuing securities jointly selected by the Corporation and the
Required Holders. The determination of such appraiser shall be final and binding
upon the parties, and the Corporation shall pay the fees and expenses of such
appraiser.

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

         "Preferred Warrants" means, collectively, the "Preferred Warrants" and
"Additional Warrants" as defined in, and issued pursuant to, the Purchase
Agreement, and any warrants issued in exchange, substitution or replacement
therefor.

         "Registered Holder" means the holder of this Warrant as reflected in
the records of the Company maintained pursuant to the provisions of Section 13.

         "Required Holders" means the holders of at least two-thirds of the
purchase rights represented by this Warrant as originally issued which remain
outstanding and unexercised.

         "Stock Option Plans" means, collectively, the Company's 1995 Stock
Option Plan, 1996 Director Stock Option Plan, and 2000 Stock Option Plan (if and
only to the extent approved by the Company's stockholders).

         "Subsidiary" means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of
which (i) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity, a majority
of the partnership or other similar ownership interest thereof is at the time
owned or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of that person or a combination thereof. For purposes hereof, a
Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity if
such Person or Persons shall be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses or
shall be or control the managing general partner of such limited liability
company, partnership, association or other business entity.

                                       11
<PAGE>

         "Warrant Shares" means shares of the Common Stock issuable upon
exercise of the Warrants, PROVIDED, that if the securities issuable upon
exercise of the Warrants are issued by an entity other than the Company or there
is a change in the class of securities so issuable, then the term "Warrant
Shares" shall mean shares of the security issuable upon exercise of the Warrants
if such security is issuable in shares, or shall mean the equivalent units in
which such security is issuable if such security is not issuable in shares.

         SECTION 6. No Voting Rights: Limitations of Liability. This Warrant
shall not entitle the Registered Holder hereof to any voting rights or other
rights as a stockholder of the Company. No provision hereof, in the absence of
affirmative action by the Registered Holder to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of the Registered Holder shall
give rise to any liability of such Registered Holder for the Exercise Price of
Warrant Shares acquirable by exercise hereof or as a stockholder of the Company.

         SECTION 7. Transferability. Subject to compliance with the Securities
Act of 1933, as amended, and other applicable securities law, this Warrant and
all rights hereunder are transferable, in whole or in part, without charge to
the Registered Holder, upon surrender of this Warrant with a properly executed
Assignment (in the form of Exhibit II hereto).

         SECTION 8. Warrant Exchangeable for Different Denominations. This
Warrant is exchangeable, upon the surrender hereof by the Registered Holder at
the principal office of the Company, for new Warrants of like tenor representing
in the aggregate the purchase rights hereunder, and each of such new Warrants
shall represent such portion of such rights as is designated by the Registered
Holder at the time of such surrender. At the request of the Registered Holder
(pursuant to a transfer of Warrants or otherwise), this Warrant may be exchanged
for one or more Warrants to purchase Common Stock. The date the Company
initially issues this Warrant shall be deemed to be the date of issuance hereof
regardless of the number of times new certificates representing the unexpired
and unexercised rights formerly represented by this Warrant shall be issued. All
Warrants representing portions of the rights hereunder are referred to herein as
the "Warrants."

         SECTION 9. Exchange. In the event that it becomes unlawful or, in the
reasonable judgment of any Registered Holder of this Warrant, unduly burdensome
by reason of a change in legal or regulatory considerations or the
interpretation thereof affecting the ability of financial institutions or their
affiliates to hold equity securities, or any material change (including a
reduction in the number of shares of Common Stock outstanding) in the capital
structure of the Company, to hold any or all of the Warrants or Warrant Shares,
the Registered Holder of this Warrant shall have the right to require all or
part of such Registered Holder's Warrants or Warrant Shares to be exchanged for
nonvoting stock or similar interests that convey equivalent economic benefits to
such Warrants or Warrant Shares and include, in the case of Warrants, equivalent
anti-dilution protection. Any such exchange shall occur as soon as practicable
but in any event within sixty (60) days after written notice by the Registered
Holder of this Warrant to the Company (or such earlier date if required to
comply with applicable law).

                                       12
<PAGE>

         SECTION 10. Replacement. Upon receipt of evidence reasonably
satisfactory to the Company (an affidavit of the Registered Holder shall be
satisfactory) of the ownership and the loss, theft, destruction, or mutilation
of any certificate evidencing this Warrant, and in the case of any such loss,
theft, or destruction, upon receipt of indemnity reasonably satisfactory to the
Company (PROVIDED, that if the Registered Holder is a financial institution or
other institutional investor its own Agreement shall be satisfactory), or, in
the case of any such mutilation upon surrender of such certificate, the Company
shall (at its expense) execute and deliver in lieu of such certificate a new of
like kind representing the same rights represented by such lost, stolen,
destroyed, or mutilated certificate and dated the date of such lost, stolen,
destroyed, or mutilated certificate.

         SECTION 11. Notices. Except as otherwise expressly provided herein, all
notices and deliveries referred to in this Warrant shall be in writing, shall be
delivered personally, sent by registered or certified mail, return receipt
requested and postage prepaid or sent via nationally recognized overnight
courier or via facsimile, and shall be deemed to have been given when so
delivered (or when received, if delivered by any other method) if sent (i) to
the Company, at its principal executive offices, and (ii) to a Registered
Holder, at such Registered Holder's address as it appears in the records of the
Company (unless otherwise indicated by any such Registered Holder).

         SECTION 12. Amendment and Waiver. Except as otherwise provided herein,
the provisions of the Warrants 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 prior written consent of
the Required Holders.

         SECTION 13. Warrant Register. The Company shall maintain at its
principal executive offices books for the registration and the registration of
transfer of Warrants. The Company may deem and treat the Registered Holder as
the absolute owner hereof (notwithstanding any notation of ownership or other
writing thereon made by anyone) for all purposes and shall not be affected by
any notice to the contrary.

         SECTION 14. Fractions of Shares. The Company may, but shall not be
required to, issue a fraction of a Warrant Share upon the exercise of this
Warrant in whole or in part. As to any fraction of a share which the Company
elects not to issue, the Company shall make a cash payment in respect of such
fraction in an amount equal to the same fraction of the Market Price of a
Warrant Share on the date of such exercise,

         SECTION 15. Descriptive Headings; Governing Law. The descriptive
headings of the several Sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. THE CONSTRUCTION,
VALIDITY AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF MINNESOTA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS OR CHOICE
OF LAW OF THE STATE OF MINNESOTA OR ANY OTHER

                                       13
<PAGE>

JURISDICTION WHICH WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY
JURISDICTION OTHER THAN THE STATE OF NEW YORK.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed
and attested by its duly authorized officers under its corporate seal and to be
dated as of the date hereof.

                                UNITED SHIPPING & TECHNOLOGY, INC.

                                By:      ________________________________
                                         Peter C. Lytle, CEO

Attest:

_________________________________

                                       14
<PAGE>

                                                                       EXHIBIT I

                               EXERCISE AGREEMENT

To:                                                           Dated:

         The undersigned, pursuant to the provisions set forth in the attached
Warrant (Certificate No. W-__), hereby agrees to subscribe for the purchase of
__________ Warrant Shares covered by such Warrant and makes payment herewith in
full therefor at the price per share provided by such Warrant.

                                 Signature _______________________________

                                 Address ________________________________

                                       1
<PAGE>

                                                                      EXHIBIT II

                                   ASSIGNMENT

         FOR VALUE RECEIVED, ___________________________________ hereby sells,
assigns and transfers all of the rights of the undersigned under the attached
Warrant (Certificate No. W-__) with respect to the number of the Warrant Shares
covered thereby set forth below, unto:

Names of Assignee                  Address                        No. of Shares
-----------------                  -------                        -------------

Dated:                             Signature     ______________________________

                                                 ______________________________

                                   Witness       ______________________________

                                       2

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