Document:

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                                                                  Exhibit 10.18

                       DEALER SALES AND SERVICE AGREEMENT

                                     BETWEEN

                            PETERBILT MOTORS COMPANY

                                       AND

                           ---------------------------
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                                TABLE OF CONTENTS

<TABLE>
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<S>      <C>                                                                                          <C>
I.       INTRODUCTION    ...........................................................................     1

         A.     PURPOSE AND GENERAL OBLIGATIONS......................................................    1

         B.     APPOINTMENT OF DEALER................................................................    1

         C.     LOCATION OF DEALER FACILITY..........................................................    1

         D.     TERM OF THE AGREEMENT................................................................    1

II.      SALE OF PRODUCTS............................................................................    1

         A.     DEALER RESPONSIBILITIES..............................................................    1

                 1.      PRODUCT SALES...............................................................    1

                 2.      DEALER PERFORMANCE EVALUATION...............................................    1

                 3.      SALES OPERATIONS AND PRODUCT PROMOTION......................................    2

                 4.      SALES REPORTING.............................................................    3

                 5.      PURCHASE ORDERS.............................................................    3

                 6.      PRICES AND PAYMENTS.........................................................    3

                 7.      PAYMENT DEFAULT.............................................................    3

                 8.      DELIVERY....................................................................    3

                 9.      WARRANTY....................................................................    4

                10.      PRODUCT ALTERATIONS.........................................................    4

         B.     ADVERTISING..........................................................................    4

III.     SERVICE AND PARTS...........................................................................    4

         A.     DEALER RESPONSIBILITIES..............................................................    4

                 1.      PREDELIVERY SERVICE, WARRANTY SERVICE,
                         CAMPAIGN INSPECTIONS........................................................    4

                 2.      REIMBURSEMENT RATES.........................................................    4

                 3.      NONGENUINE PARTS OR ACCESSORIES.............................................    4

         B.     ASSISTANCE PROVIDED BY PETERBILT.....................................................    5

                 1.      CUSTOMER LISTS..............................................................    5
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<TABLE>
<S>      <C>                                                                                          <C>
                 2.      SALES AND SERVICE TRAINING ASSISTANCE.......................................    5

                 3.      SERVICE MANUALS AND MATERIALS...............................................    5

                 4.      FIELD SALES AND SERVICE PERSONNEL
                         ASSISTANCE..................................................................    5

IV.      CAPITAL STANDARDS...........................................................................    5

         A.     NET WORKING CAPITAL..................................................................    5

         B.     OWNERSHIP...........................................................................     5

 V.      ACCOUNTS, RECORDS AND REPORTS...............................................................    5

         A.     UNIFORM ACCOUNTING SYSTEM............................................................    5

         B.     AUDIT OF DEALER RECORDS..............................................................    6

         C.     CONFIDENTIALITY......................................................................    6

VI.      TRADEMARKS, SERVICE MARKS AND TRADE NAMES...................................................    6

         A.     USE BY DEALER........................................................................    6

         B.     DISCONTINUANCE OF USE................................................................    6

VII.     DEALER'S REPRESENTATION OF COMPETING LINES..................................................    7

VIII.    TERMINATION OF AGREEMENT....................................................................    7

         A.     TERMINATION BY DEALER................................................................    7

         B.     TERMINATION FOR CAUSE................................................................    7

                 1.      IMMEDIATE TERMINATION.......................................................    7

                 2.      TERMINATION UPON 60 DAYS NOTICE ............................................    8

                 3.      TERMINATION FOR FAILURE OF PERFORMANCE
                         ON 100 DAYS NOTICE..........................................................    9

                 4.      TERMINATION BASED ON MARKET WITHDRAWAL......................................    9

                 5.      TERMINATION UPON DEATH OR INCAPACITY........................................    9

         C.     EFFECTIVE DATE OF TERMINATION........................................................    9

         D.     EFFECT OF TERMINATION................................................................    9

                 1.      THE RIGHT TO PURCHASE PRODUCTS .............................................    9

                 2.      REPURCHASE OF PRODUCTS......................................................    10
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<TABLE>
<S>      <C>                                                                                          <C>
IX.      VOLUNTARY ARBITRATION OF DISPUTES...........................................................    11

         A.     FILING CLAIM.........................................................................    11

         B.     EXCLUSIVE REMEDY.....................................................................    11

         C.     PROCEDURES...........................................................................    11

         D.     CHOICE OF ARBITRATOR.................................................................    11

         E.     ARBITRATOR'S AWARD...................................................................    11

         F.     PAYMENT OF FEES......................................................................    12

         G.     TIME PERIOD..........................................................................    12

X.       DEFENSE AND INDEMNIFICATION BY PETERBILT....................................................    12

XI.      MISCELLANEOUS PROVISIONS....................................................................    12

         A.     ENTIRE AGREEMENT.....................................................................    12

         B.     AMENDMENT..........................................................................      12

         C.     COLLATERAL ASSIGNMENT................................................................    12

         D.     SEVERABILITY.........................................................................    12

         E.     GOVERNING LAW........................................................................    12

         F.     WAIVERS  ..........................................................................      12

         G.     NOTICES  ..........................................................................      12

         H.     NEW AND SUPERSEDING DEALER AGREEMENTS................................................    13

         I.     INDEPENDENT ENTITY...................................................................    13
</TABLE>

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                                     ADDENDA

A.     PRODUCTS

B.     DEALERSHIP LOCATION AND FACILITY STANDARDS

C.     OPERATING REQUIREMENTS, PERFORMANCE GOALS AND SALES/SERVICE EVALUATION

D.     STATEMENT OF OWNERSHIP AND FINANCIAL AND MANAGEMENT STANDARDS

E.     RIGHT OF FIRST REFUSAL

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                                                                   EXHIBIT 10.18

                       DEALER SALES AND SERVICE AGREEMENT

This is an AGREEMENT between Peterbilt Motors Company ("PETERBILT"), a division
of PACCAR Inc, a Delaware corporation, and the principal owners identified in
Addendum D and _____________. a corporation (collectively referred to as
"DEALER" throughout this AGREEMENT), duly incorporated in the State of Delaware
and doing business as ___________________.

I.   INTRODUCTION

     A.   PURPOSE AND GENERAL OBLIGATIONS. This AGREEMENT provides for the sale
          and servicing of PETERBILT trucks and tractors ("Vehicles"), and parts
          and accessories manufactured by or for PETERBILT and/or PACCAR Parts,
          a division of PACCAR Inc, ("Genuine Parts and Accessories") in a
          manner that will best serve the interests of PETERBILT, DEALER, other
          authorized PETERBILT dealers, and owners of Vehicles and Genuine Parts
          and Accessories (collectively called "PRODUCTS"). PETERBILT has
          selected its dealers based on their experience and commitment to
          provide adequate capital, equipment, personnel and facilities to sell
          and service PRODUCTS in a manner which promotes and maintains customer
          confidence and satisfaction and protects the reputation of PRODUCTS.
          Both PETERBILT and DEALER agree to use the highest ethical business
          standards in dealings with each other and with customers.

     B.   APPOINTMENT OF DEALER. Subject to the terms of this AGREEMENT,
          PETERBILT hereby grants DEALER a nonexclusive right to buy PRODUCTS
          identified in the attached Addendum A, to identify itself as an
          authorized PETERBILT dealer and to use Trademarks in the promotion,
          sale and servicing of PRODUCTS. PETERBILT reserves the right to revise
          Addendum A from time to time. DEALER has paid no fee for this
          AGREEMENT and no right granted by this AGREEMENT is a property right.

     C.   LOCATION OF DEALER FACILITY. DEALER will maintain a facility for the
          sale and servicing of PRODUCTS at Dealer Location(s) identified in
          Addendum B and in full compliance with all the requirements of
          Addendum B including identifying the facility with a sign.

     D.   TERM OF THE AGREEMENT. This AGREEMENT will become effective on
          ___________ and will continue in effect for a period of Three (3)
          year(s) to expire on _______________ unless terminated as provided in
          Article VIII. This AGREEMENT may not be extended or renewed except in
          writing signed by the General Manager or other authorized employee of
          PETERBILT.

II.  SALE OF PRODUCTS

     A.   DEALER RESPONSIBILITIES.

          1.   PRODUCT Sales. DEALER's fundamental obligation under this
               AGREEMENT is to stock, sell at retail and service the PRODUCTS in
               the area defined in Addendum C. DEALER agrees that PETERBILT may
               add new dealers to, relocate dealers in, or make changes to the
               area defined in Addendum C from time to time. DEALER expressly
               agrees to develop the sales volume necessary to meet DEALER's
               PERFORMANCE GOALS identified in Addendum C.

          2.   DEALER Performance Evaluation. PETERBILT and DEALER will meet
               periodically, but not less than annually, to evaluate DEALER's
               sales and service performance in the local market in accordance
               with the criteria of Addendum C and this AGREEMENT. These
               criteria include but are not limited to:

               a.   The achievement of reasonable sales objectives as PETERBILT
                    may establish, and as are set forth in Addendum C;

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               b.   Customer satisfaction with DEALER'S conduct, participation
                    or assistance in sales transactions, as may be determined by
                    PETERBILT through customer opinion polls, personal
                    interviews, letters from customers or otherwise;

               c.   The relationship of the registrations in the area defined in
                    Addendum C of new PETERBILT Vehicles sold by DEALER to the
                    total registrations in this same period of all new trucks of
                    the same class (for this purpose, trucks of the same class
                    will be those selected by PETERBILT for comparison which
                    shall be generally competitive with PETERBILT Vehicles);

               d.   DEALER'S performance under subparagraph c above, as compared
                    with the performance of dealers similarly situated and with
                    the national average for all PETERBILT dealers, and with the
                    regional and district averages for all PETERBILT dealers in
                    the region and district to which DEALER is assigned.

               e.   The trend of DEALER'S sales performance over a period of
                    time;

               f.   Conditions affecting the market for trucks;

               g.   DEALER'S participation in sales and promotional programs
                    offered by PETERBILT;

               h.   DEALER'S inventory and sale of Genuine Parts and Accessories
                    in relation to the population of PETERBILT Vehicles and
                    similar vehicles of the same class in the area defined in
                    Addendum C; and

               i.   DEALER's participation in, and use of, other programs,
                    products and services offered by PETERBILT or PETERBILT
                    affiliates.

          3.   Sales Operations and Product Promotion. DEALER agrees to
               establish and maintain a sales organization in accordance with
               the requirements for a minimum number of personnel and training
               certification defined in Addendum C. DEALER agrees to conduct all
               sales activities in full compliance with PETERBILT's sales
               directives and to maintain a high standard of ethical sales
               activity and advertising. Under no circumstances will DEALER
               solicit or make sales through sub-dealers, agents, or
               representatives without the prior written consent of PETERBILT.
               DEALER acknowledges that PETERBILT may sell direct to major
               customers from time to time. If such sales occur, PETERBILT may
               compensate DEALER in a manner and an amount to be determined by
               PETERBILT for the contribution of the DEALER to the sale. DEALER
               further agrees to the following:

               a.   In order to maintain the confidence of the public in DEALER
                    and PRODUCTS, DEALER shall use its best efforts to sell each
                    customer PRODUCTS with specifications most appropriate to
                    the customer's application and will not mislead or deceive
                    its customers with respect to the specifications or
                    performance of PRODUCTS.

               b.   DEALER shall use its best efforts to promote the sale of
                    PRODUCTS in the area defined in Addendum C through
                    systematic contacts with owners and users and prospective
                    owners and users of PRODUCTS, and through such other means
                    as may be specified from time to time by PETERBILT in its
                    directives and suggestions.

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               c.   DEALER shall at all times carry in stock an adequate
                    inventory of unsold new PETERBILT Vehicles not ordered or
                    held for specific customers as may be sufficient to meet the
                    sales potential for PETERBILT Vehicles in the area defined
                    in Addendum C. DEALER shall also at all times carry in stock
                    an adequate inventory of Genuine Parts and Accessories as
                    may be required to meet the sales potential for Genuine
                    Parts and Accessories and the service needs of owners and
                    users of PETERBILT Vehicles in the area defined in Addendum
                    C.

               d.   In order to further sales of new PETERBILT Vehicles, DEALER
                    will engage in the purchase and sale of customer trade-ins
                    of used heavy-duty vehicles as may be required to
                    effectively compete in the area defined in Addendum C.
                    PETERBILT may from time to time provide DEALER with lists of
                    used heavy-duty vehicles available for sale. DEALER will use
                    its best efforts to market such used heavy-duty vehicles.

          4.   Sales Reporting. To assist PETERBILT in the evaluation of current
               market trends, DEALER upon request will deliver a report in a
               form prescribed by PETERBILT promptly upon delivery of new
               vehicles to a customer. DEALER will also furnish other market
               information reasonably requested by PETERBILT from time to time.

          5.   Purchase Orders. When placing orders for PRODUCTS, DEALER will
               only use purchase order forms provided by PETERBILT. All orders
               are subject to acceptance by PETERBILT. No order may be
               cancelled, except in accordance with PETERBILT's standard policy
               on order cancellation then in effect. PETERBILT will use its best
               efforts to fill any orders it has accepted, but will not be
               obligated to deliver to DEALER any particular number of PRODUCTS
               over a specific period of time.

          6.   Prices and Payments. PETERBILT may change prices and terms of
               sale from time to time. Unless otherwise agreed in writing,
               payments for Vehicles purchased shall be by medium of payment
               acceptable to PETERBILT against a wholesale line of credit
               established by DEALER and expressly approved by PETERBILT as
               provided for in Addendum D. PETERBILT will invoice DEALER for all
               PRODUCT purchases in accordance with PETERBILT's standard policy.
               In accordance with PETERBILT'S credit policy, PETERBILT may place
               sales of Genuine Parts and Accessories on a payment in advance
               basis. DEALER's right to return Genuine Parts and Accessories
               shall be governed by the terms of PETERBILT's parts return policy
               then in effect.

          7.   Payment Default. Should DEALER fail to pay for, or should any
               applicable financing arrangement fail to provide credit for the
               payment of, any PRODUCTS ordered by DEALER when payment is due,
               PETERBILT may take any of the actions set forth in Addendum D.

          8.   Delivery. PETERBILT will select the distribution points, carriers
               and modes of transportation for delivery of PRODUCTS to DEALER.
               DEALER will reimburse PETERBILT for delivery, freight, and
               related costs as set out on PETERBILT's invoice to DEALER. Unless
               otherwise provided under PETERBILT's warranty procedures, DEALER
               will file and pursue any claims against any carrier for loss or
               damage during shipment. PETERBILT will not be liable for delay or
               failure to fill orders that have been accepted where the failure
               or delay is the result of any cause beyond PETERBILT's reasonable
               control, including domestic or foreign laws, governmental
               actions, war or civil disturbance, acts of God, interruptions of
               navigation, shipwreck, strikes or other labor troubles, delays of
               suppliers or carriers.

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          9.   Warranty. DEALER agrees that the only warranties that will be
               applicable to each new PRODUCT will be the written limited
               warranty furnished by PETERBILT to the first retail purchaser of
               the PRODUCTS as it may be revised from time to time. DEALER is
               not authorized to provide any additional warranties or assume any
               additional obligations or liabilities on behalf of PETERBILT.
               DEALER agrees that at the time the customer signs an order,
               DEALER will explain the warranty to the customer and obtain the
               customer's signature acknowledging receipt thereof.

          10.  PRODUCT Alterations. DEALER will not alter any PRODUCT, or change
               or substitute any of its components as sold by PETERBILT, if it
               might affect the safe mechanical operation, safety or structural
               integrity of any PRODUCT.

     B.   ADVERTISING.

          PETERBILT agrees to establish and maintain general advertising and
          promotion programs for the PRODUCTS. DEALER agrees to actively
          participate in cooperative advertising programs developed by PETERBILT
          from time to time for all DEALERS and to follow PETERBILT advertising
          guidelines in local advertising. DEALER also agrees to promote the
          purchase of PRODUCTS through DEALER's own advertising and sales
          promotion activities.

          Neither PETERBILT nor DEALER will publish any advertising likely to
          mislead or deceive the public or impair the good will of PETERBILT or
          DEALER or the reputation of the PRODUCTS.

III. SERVICE AND PARTS

     A.   DEALER RESPONSIBILITIES. DEALER agrees to establish and maintain a
          service and parts organization in accordance with the requirements for
          a minimum number of personnel with training certification defined in
          Addendum C. DEALER agrees to take all reasonable steps to provide
          service and parts for all PRODUCTS, regardless of where purchased, and
          whether or not under warranty, and to ensure that necessary repairs on
          PRODUCTS are performed in accordance with the highest professional
          standards and with the customer's consent.

          1.   Predelivery Service, Warranty Service, Campaign Inspections.
               DEALER will perform predelivery service on each new Vehicle,
               warranty service and recall campaign inspections and service in
               accordance with PETERBILT procedures then in effect. DEALER will
               procure special tools and service equipment as may be necessary
               to meet DEALER's obligations under this paragraph.

          2.   Reimbursement Rates. PETERBILT agrees to compensate DEALER for
               all warranty, and campaign inspection work related to recalls, in
               accordance with PETERBILT procedures and applicable law. Warranty
               service is provided for the benefit of customers and customers
               will not be obligated to pay any charges for warranty work,
               except as required by law.

          3.   Non-Genuine Parts or Accessories. DEALER has the right to sell,
               install or use parts or accessories which are not Genuine Parts
               and Accessories manufactured by or for PETERBILT. However, in
               cases where DEALER does not sell, install or use Genuine Parts
               and Accessories, DEALER will only use such other parts or
               accessories as will not adversely affect the mechanical operation
               or safety of the PRODUCTS being serviced or repaired, or will be
               equivalent in quality and design to Genuine Parts and
               Accessories.

               If DEALER uses parts or accessories which are not Genuine Parts
               and Accessories or are not approved by PETERBILT or the PACCAR
               Parts division for use in PRODUCTS, DEALER does so at its own
               risk and PETERBILT will not be responsible to DEALER or to any
               third party for any products liability, warranty or other claim
               which may arise as a consequence of the installation and/or use
               of such parts.

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     B.   ASSISTANCE PROVIDED BY PETERBILT.

          1.   Customer Lists. PETERBILT may, from time to time, furnish DEALER
               with a list of potential customers of PRODUCTS located in the
               area defined in Addendum C. This will enable DEALER to maintain
               regular and periodic contact with each such customer and make
               every reasonable effort to sell PRODUCTS. Also, if available,
               PETERBILT will furnish DEALER with a list of the owners of
               Vehicles located in areas where such Vehicles could reasonably be
               brought to the DEALER for service. This will enable DEALER to
               maintain regular and periodic contact with each such Vehicle
               owner and make every reasonable effort to see that every owner is
               satisfied with their Vehicle(s).

          2.   Sales and Service Training Assistance. PETERBILT periodically
               will offer general and specialized truck and parts sales, and
               other service and technical training programs and materials.
               DEALER agrees that its sales, service and/or parts personnel will
               participate in these programs. Completion of training programs is
               required to comply with training standards or recommendations set
               out in Addendum C.

          3.   Service Manuals and Materials. PETERBILT agrees to make available
               to DEALER copies of service manuals and bulletins, publications
               and technical data as PETERBILT deems necessary for the effective
               operation of DEALER's service and parts organization. PETERBILT
               will use its best efforts to make available such data and
               information before new PRODUCTS are introduced for sale. DEALER
               agrees to keep these manuals, publications and data current and
               available for use by its parts and service employees.

          4.   Field Sales and Service Personnel Assistance. PETERBILT agrees to
               make available field personnel who will periodically advise
               DEALER on sales, parts and service related subjects, including
               fleet sales, product quality, technical adjustment, repair,
               replacement and sale of PRODUCTS, customer relations, warranty
               administration, and service and parts merchandising, training and
               management.

IV.  CAPITAL STANDARDS

     A.   NET WORKING CAPITAL. DEALER agrees to establish and maintain net
          working capital in accordance with Addendum D. If at anytime DEALER's
          net working capital falls below the minimum requirements as determined
          by PETERBILT financial standards for dealership capitalization, DEALER
          shall take all steps reasonably necessary to meet such minimum capital
          requirements.

     B.   OWNERSHIP. Addendum D also sets forth the identity of all DEALER
          owners and their respective ownership interests in DEALER (called
          "DEALER PRINCIPAL(S)") and the principal managers, who may or may not
          have ownership interests (called "OPERATING MANAGER(S)") of DEALER.
          DEALER acknowledges that this is a personal service contract. The
          effectiveness of DEALER is ultimately dependent upon the DEALER
          PRINCIPAL(S) and OPERATING MANAGER(S) who must assume full managerial
          authority and responsibility for DEALER business. No change in
          ownership or change in DEALER PRINCIPAL(S) shall be made without first
          consulting with and obtaining PETERBILT's prior written consent.
          DEALER also agrees to notify PETERBILT of any changes in OPERATING
          MANAGER(S). Any change approved by PETERBILT will be contained in a
          new Addendum D.

V.   ACCOUNTS, RECORDS AND REPORTS

     A.   UNIFORM ACCOUNTING SYSTEM. DEALER agrees to maintain a uniform
          accounting system designated by PETERBILT, and in accordance with
          PETERBILT policies, procedures and forms, as amended from time to
          time. In addition, DEALER will furnish to PETERBILT, by the twentieth
          of each month, in the manner set forth in the PETERBILT Accounting
          Manual and in a format and on forms prescribed by PETERBILT, a
          complete and accurate financial and operating statement covering the
          preceding month and DEALER's fiscal year-to-date operations. DEALER
          will also promptly furnish to PETERBILT a copy of any adjusted
          financial or operating statement prepared by or for DEALER.

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     B.   AUDIT OF DEALER RECORDS. DEALER agrees that PETERBILT will have the
          right, at all reasonable times and during DEALER's regular business
          hours, to examine, audit and reproduce all records, accounts and other
          data relating to the sale and service of PRODUCTS by DEALER. PETERBILT
          will provide a copy of the report of the examination or audit to
          DEALER upon request.

     C.   CONFIDENTIALITY. PETERBILT agrees that it will not provide any data or
          documents submitted to PETERBILT pursuant to this Article V to any
          independent third party, unless authorized by DEALER, required by law,
          or otherwise pertinent to legal proceedings. DEALER agrees that
          PETERBILT may provide such data to affiliated entities such as PACCAR
          Financial Corp., provided that such entities have agreed to comply
          with the terms of this provision governing confidentiality. DEALER
          also agrees that PETERBILT may use such data or documents to generate
          composite data which PETERBILT believes will be useful to share with
          its dealers to assist them in improving operations. Such composite
          data will not specifically identify any dealer.

VI.  TRADEMARKS, SERVICE MARKS AND TRADE NAMES

     A.   USE BY DEALER. PETERBILT authorizes DEALER to use the trade names,
          trademarks and logos of PETERBILT (hereinafter "Trademarks").
          PETERBILT grants to DEALER the nonexclusive privilege of displaying or
          otherwise using Trademarks solely in connection with the promotion and
          sale of PRODUCTS from approved location(s).

          DEALER agrees, however, that it will promptly discontinue the display
          and use of any Trademarks, and will change the manner in which any
          Trademarks are displayed and used when requested to do so by
          PETERBILT. DEALER further agrees that it will do nothing to impair the
          value of or contest PETERBILT's use or ownership of any trademark,
          design mark, service mark or trade name at any time acquired, claimed
          or adopted by PETERBILT. In addition, no company owned by or
          affiliated with DEALER or any DEALER PRINCIPALS may use any Trademarks
          or PRODUCT name without the prior written consent of PETERBILT.

     B.   DISCONTINUANCE OF USE. Upon termination, non-renewal or expiration of
          this AGREEMENT, DEALER agrees that it will immediately discontinue all
          use of the word "Peterbilt" and the Trademarks, or similar words and
          cease representing itself as an authorized PETERBILT Dealer.
          Thereafter DEALER will not use, either directly or indirectly, any
          Trademarks, trademarks of affiliated companies, or any other similar
          trademarks in a manner likely to cause confusion or mistake or to
          deceive the public. In addition, DEALER will promptly remove all
          PRODUCT signs bearing the word "Peterbilt" or the Trademarks from its
          facilities at DEALER's sole cost and expense. In the event DEALER
          fails to comply with its obligations herein within thirty (30) days of
          termination, non-renewal or expiration, PETERBILT will have the right
          to enter upon DEALER's premises and remove, without liability, all
          signs bearing the word "Peterbilt" or using any Trademarks. DEALER
          will reimburse PETERBILT for any costs and expenses incurred in
          connection with the enforcement of this paragraph, including
          reasonable attorney's fees.

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VII. DEALER'S REPRESENTATION OF COMPETING LINES

     PETERBILT PRODUCTS have traditionally been sold primarily through
     independently owned dealerships. Representing multiple lines of competing
     truck manufacturers may create conflicts of interest resulting in
     inadequate representation of PETERBILT PRODUCTS. Demands on capital,
     personnel and other limited resources of a dealership may become
     increasingly difficult to balance when they must be allocated among several
     competing product lines. For these reasons, DEALER agrees not to enter into
     a written agreement to sell and service the competitive vehicles of another
     truck manufacturer without providing at least sixty (60) days prior written
     notice to PETERBILT so that PETERBILT may evaluate and discuss with DEALER
     the likely effect of such an action on DEALER, PETERBILT and other
     PETERBILT dealers. In conducting its evaluation PETERBILT will consider and
     discuss with DEALER the following:

     a.   Whether and to what degree the competing line competes with
          PETERBILT's major product lines;

     b.   Whether DEALER already represents the competing line with the
          acceptance or approval of PETERBILT;

     c.   Whether DEALER's representation of competing lines in another
          PETERBILT dealer's marketing area is likely to cause competitive
          injury to that dealer.

     d.   Whether DEALER's capital, personnel and management resources will be
          adequate to represent more than one line; and

     e.   For non-exclusive facilities, whether the facility is adequate to
          support an additional line.

VIII. TERMINATION OF AGREEMENT

     This section explains the circumstances under which the AGREEMENT may be
     terminated by either party, the procedure to be followed and the
     consequences of termination. Identifying specific events which could result
     in termination is intended to reduce the possibility of misunderstandings
     between PETERBILT and DEALER.

     A.   TERMINATION BY DEALER. DEALER may voluntarily terminate this AGREEMENT
          at any time by written notice to PETERBILT. Termination will be
          effective thirty (30) days after PETERBILT receives such notice unless
          otherwise mutually agreed in writing.

     B.   TERMINATION FOR CAUSE.

          1.   Immediate Termination. PETERBILT will have the right to terminate
               this AGREEMENT immediately in any of the following situations:

               a.   Any misrepresentation to PETERBILT by DEALER or any Owner or
                    DEALER PRINCIPAL in applying for this AGREEMENT or for
                    approval as Owner or DEALER PRINCIPAL of DEALER;

               b.   If DEALER, or any Owner, officer, or DEALER PRINCIPAL of
                    DEALER, is convicted of any felony or of any violation of
                    law which in PETERBILT's sole opinion tends to adversely
                    affect the business or interests of DEALER or PETERBILT, or
                    to impair good will associated with the Trademarks;

               c.   Submission by DEALER to PETERBILT of: (i) false claims for
                    reimbursement, sales incentives, warranty claims, refunds,
                    rebates or credits; (ii) false financial information, sales
                    reports or other data required by PETERBILT; or (iii) false
                    statements relating to predelivery or warranty service,
                    campaign inspections, servicing, repairing, or maintenance
                    required by PETERBILT;

               d.   If DEALER is closed for a period of five (5) consecutive
                    days, except when due to an event beyond DEALER's reasonable
                    control such as acts of God, war or civil disturbance, labor
                    strikes or other labor trouble;

                                  Page 7 of 13
<PAGE>   13

               e.   Failure of DEALER to obtain or maintain any license, or the
                    suspension or revocation of any license, necessary for the
                    conduct by DEALER of its business pursuant to this
                    AGREEMENT; or

               f.   If DEALER becomes insolvent, as defined by the Uniform
                    Commercial Code, or files any voluntary petition under any
                    bankruptcy law, or executes an assignment for the benefit of
                    creditors, or any petition is filed by any third party to
                    have DEALER declared bankrupt or to appoint a receiver or
                    trustee, or another officer having similar power, and such
                    filing or appointment is not vacated within thirty (30) days
                    or there is any levy under attachment or execution or
                    similar process which is not vacated or removed by payment
                    or bonding within ten (10) days.

               g.   Any attempted or actual sale, transfer or assignment by
                    DEALER of this AGREEMENT, ownership interests in the DEALER,
                    or any of the rights granted DEALER under this AGREEMENT, or
                    any attempted or actual transfer, assignment or delegation
                    by DEALER of any of the responsibilities assumed by it under
                    the AGREEMENT, including but not limited to removal,
                    withdrawal or change of Owner or DEALER PRINCIPAL, without
                    the prior written consent of PETERBILT;

          2.   Termination Upon Sixty (60) Days Notice. If any of the following
               events has occurred and PETERBILT determines that the matter may
               require termination of this AGREEMENT, PETERBILT will so advise
               DEALER in writing. If DEALER does not correct the condition
               within thirty (30) days after notice is sent, PETERBILT will have
               the right to terminate this AGREEMENT upon an additional sixty
               (60) days notice, subject to DEALER's right to arbitrate under
               Article IX. Events which may result in such termination include:

               a.   he conduct, directly or indirectly, of DEALER's operations
                    from a facility other than a facility and location
                    specifically approved in Addendum B, without the prior
                    written consent of PETERBILT;

               b.   Any sale or transfer, by operation of law or otherwise, of
                    any of the location(s) approved in Addendum B or of
                    substantially all of the assets required in the conduct of
                    DEALER's operations, without the prior written consent of
                    PETERBILT;

               c.   Any dispute, disagreement or controversy between or among
                    Owners, DEALER PRINCIPALS, officers or managers of DEALER
                    which, in the sole opinion of PETERBILT, adversely affects
                    the operations, management, reputation or business interests
                    of DEALER or PETERBILT or the reputation of PETERBILT's
                    PRODUCTS;

               d.   Any refusal to permit PETERBILT to examine or audit DEALER's
                    accounts and records as provided in Article V upon receipt
                    by DEALER of written notice from PETERBILT requesting such
                    permission or information;

               e.   Repeated failure of DEALER to furnish timely sales or
                    financial information and related data;

               f.   Failure of DEALER to establish or maintain required net
                    working capital or adequate wholesale credit lines;

               g.   Failure of DEALER to pay PETERBILT for any PRODUCTS in
                    accordance with the terms and conditions of sale;

               h.   Failure of DEALER to accept an amended form of the AGREEMENT
                    or renewal within thirty (30) days after its presentation to
                    DEALER if the AGREEMENT is substantially the same as offered
                    and accepted by a substantial majority of PETERBILT dealers
                    or if any applicable law or regulation, or any new
                    interpretation thereof indicates that a change in any of the
                    provisions of the AGREEMENT is necessary or desirable;

                                  Page 8 of 13
<PAGE>   14

               i.   Entry by DEALER into a written agreement to sell and service
                    vehicles for another truck manufacturer at an exclusive
                    facility identified in Addendum B;

               j.   Other than performance failures set out below in Article
                    VIII.B.3, any other failure to comply with material
                    provisions of the AGREEMENT and/or minimum standards set
                    forth in Addenda to the AGREEMENT.

          3.   Termination For Failure of Performance on Ninety (90) Days
               Notice. If, upon evaluation of DEALER's performance pursuant to
               Addenda B and C, PETERBILT determines that DEALER has failed to
               perform adequately its sales responsibilities or to provide
               adequate facilities, PETERBILT will review promptly with DEALER
               the nature and extent of such failure(s). PETERBILT will notify
               DEALER in writing of DEALER's failure of performance and will
               grant DEALER one hundred eighty (180) days from the date of such
               notice to correct such failure(s). If DEALER fails or refuses to
               correct such failure(s) or has not made substantial progress
               towards remedying such failure(s) at the expiration of such
               period, PETERBILT may terminate this AGREEMENT upon ninety (90)
               days notice.

          4.   Termination Based on Market Withdrawal. This AGREEMENT will
               terminate upon the effective date of PETERBILT's ceasing to
               manufacture or sell PRODUCTS subject to any notice requirements
               under applicable federal or state laws.

          5.   Termination Upon Death or Incapacity. PETERBILT will have the
               right to terminate this AGREEMENT in the event of the death or
               incapacity of any Owner or DEALER PRINCIPAL identified in
               Addendum D, upon ninety (90) days written notice to DEALER.
               Notwithstanding its right to terminate under this paragraph 5,
               PETERBILT agrees to permit succession to majority ownership or
               DEALER PRINCIPAL by any person provided they are approved as an
               Owner or DEALER PRINCIPAL by PETERBILT in accordance with the
               then current policies and procedures of PETERBILT. Provided
               DEALER is not then in default under any of the provisions of this
               Article VIII, Company also will grant DEALER one hundred eighty
               (180) days from the date of such death or incapacity to submit a
               succession plan for PETERBILT's approval.

     C.   EFFECTIVE DATE OF TERMINATION. If any period of notice of termination
          required under this Article VIII is less than that required by
          applicable law, the period of notice required will be deemed to be the
          minimum period required by such law.

     D.   EFFECT OF TERMINATION.

          1.   The Right to Purchase PRODUCTS. Upon sending any notice of
               termination, expiration or non-renewal, PETERBILT will have no
               further obligation to sell and DEALER will have no right to
               purchase any PRODUCTS. Any decision to permit DEALER to purchase
               PRODUCTS thereafter will be in PETERBILT's sole discretion and
               will not be construed as a waiver of the termination or a
               renewal, extension or continuation of this AGREEMENT. Upon the
               expiration or prior termination of this AGREEMENT, PETERBILT will
               have the right to cancel any and all pending requests by DEALER
               to purchase PRODUCTS and any shipments scheduled for delivery to
               DEALER.

                                  Page 9 of 13
<PAGE>   15

          2.   Repurchase of PRODUCTS.

               a.   PETERBILT's Obligations. Upon expiration, non-renewal or
                    termination of this AGREEMENT, PETERBILT will repurchase
                    from DEALER the following PRODUCTS which DEALER initially
                    purchased from PETERBILT or from a source designated by
                    PETERBILT:

                    (i)     New, unused, unmodified and undamaged current model
                            PETERBILT Vehicles then in DEALER's inventory. The
                            repurchase price will be the original purchase price
                            paid by DEALER, less all prior refunds or other
                            allowances made by PETERBILT to DEALER with respect
                            to the original purchase (and less standard freight
                            charges).

                    (ii)    New, unused and undamaged Genuine Parts and
                            Accessories then in DEALER's inventory which are in
                            good and saleable condition, provided that they are
                            listed in the then current PETERBILT Dealer Parts
                            Price List. The prices for such Genuine Parts and
                            Accessories will be the prices last established by
                            PETERBILT for dealers in the area in which DEALER is
                            located (less standard re-stocking and freight
                            charges).

                    (iii)   Tools and equipment required by PETERBILT and then
                            owned by DEALER especially designed for servicing
                            PETERBILT Vehicles. The purchase prices for tools
                            and equipment will be the price paid by DEALER less
                            appropriate depreciation or such other price as the
                            parties may negotiate.

                            PETERBILT shall have no obligation to repurchase
                            PRODUCTS as provided herein in the event DEALER and
                            PETERBILT agree to renew this AGREEMENT.

               b.   DEALER's Responsibilities. DEALER's right to reimbursement
                    under Article VIII.D.2.a is contingent upon the following:

                     (i).   Within thirty (30) days after the date of expiration
                            or the effective date of termination of this
                            AGREEMENT, DEALER will request PETERBILT in writing
                            to purchase the qualifying inventory and tools and
                            will provide PETERBILT with a detailed and accurate
                            list of such inventory and tools. After receiving
                            the list, PETERBILT may, in its discretion, enter
                            upon DEALER's premises to verify the inventory and
                            tools as qualifying under Article VIII.D.2.a.

                     (ii)   DEALER agrees to execute and deliver to PETERBILT
                            instruments satisfactory to PETERBILT conveying good
                            and marketable title to the inventory and tools as
                            PETERBILT may require. If such property is subject
                            to any lien or charge of any kind, DEALER agrees to
                            secure the discharge and satisfaction thereof prior
                            to the repurchase of the inventory and tools.

                     (iii)  DEALER agrees to allow PETERBILT to remove, at its
                            own expense, all signage bearing PETERBILT
                            Trademarks before DEALER is eligible for payment
                            hereunder.

               c.   Payment by PETERBILT. PETERBILT will make payment for all
                    repurchased items as soon as practicable upon DEALER's
                    compliance with the obligations set forth in Article
                    VIII.D.2.b, above. Any amount due DEALER at termination
                    shall be fully subject to set-off against any amounts owed
                    PETERBILT by DEALER.

                                 Page 10 of 13
<PAGE>   16

IX.  VOLUNTARY ARBITRATION OF DISPUTES

     In order to encourage DEALER and PETERBILT to resolve disputes in an
     efficient and inexpensive manner, DEALER and PETERBILT may mutually agree
     that any disputes, protests, controversies or claims, whether for damages,
     stays of action or otherwise, ("Disputes"), may be resolved by arbitration.
     If DEALER and PETERBILT agree to arbitrate a Dispute, it shall be subject
     to arbitration under the following procedures:

     A.   FILING CLAIM. Unless otherwise agreed, arbitration may be initiated by
          DEALER filing a written request therefor no later than sixty (60) days
          after PETERBILT and DEALER have agreed to resolve the Dispute by
          arbitration. DEALER's written request to arbitrate, together with the
          appropriate filing fee, shall be filed by DEALER with the Office of
          the American Arbitration Association located nearest to the DEALER,
          which shall then become the site of the arbitration proceedings,
          unless otherwise agreed between the parties. The arbitration request
          should state clearly and completely the nature of DEALER's claim and
          its basis, the amount involved, if any, and the remedies sought.

     B.   EXCLUSIVE REMEDY. Unless the parties specifically agree otherwise at
          the time they elect to arbitrate the Dispute, arbitration shall be the
          sole and exclusive remedy of DEALER for that Dispute, and the decision
          and award of the arbitrator shall be final and binding on both
          parties. At DEALER's request, PETERBILT will agree to mediation of the
          Dispute prior to binding and final arbitration.

     C.   PROCEDURES. The arbitration and/or mediation will be conducted in
          accordance with the Commercial Rules of the American Arbitration
          Association then in effect (hereinafter referred to as the "Commercial
          Rules"), except as modified by mutual agreement of the parties, and in
          compliance with the United States Arbitration Act (9 U.S.C. Section 1,
          et. seq.).

     D.   CHOICE OF ARBITRATOR. Unless the DEALER at its option requests three
          (3) arbitrators, the arbitration shall be heard by a single arbitrator
          mutually agreeable to the parties, who, unless the parties agree
          otherwise, shall be an attorney at law admitted to practice for at
          least ten (10) years with substantial commercial experience and
          selected from a panel of American Arbitration Association arbitrators.
          If the parties fail to reach agreement within fifteen (15) days of the
          DEALER's request to arbitrate, an arbitrator (or three arbitrators, if
          the DEALER so elects) meeting these qualifications shall be named by
          the American Arbitration Association from such panel in accordance
          with the Commercial Rules, provided that the arbitrator(s) selected
          shall not have previously provided legal representation in litigation
          between motor vehicle manufacturers and motor vehicle dealers.

     E.   ARBITRATOR'S AWARD. If the arbitrator finds that PETERBILT has acted
          in accordance with provisions of this AGREEMENT, the standards set
          forth in 15 U.S.C. Sections 1221-1225 (the "Dealer's Day in Court
          Act"), and any applicable federal, state or local law, the arbitrator
          shall render an award in favor of PETERBILT. If the award in favor of
          PETERBILT relates to termination or nonrenewal of this AGREEMENT, the
          termination or nonrenewal shall be expressly recognized by DEALER as
          having been made without breach by PETERBILT of the AGREEMENT, the
          Dealer's Day in Court Act, or any applicable federal, state or local
          law. The termination or nonrenewal shall then become effective on the
          date of the award. If the arbitrator renders an award in favor of
          DEALER relating to a Dispute involving termination, PETERBILT's notice
          of termination shall be void and shall not be deemed to constitute a
          breach of this AGREEMENT. The arbitrator shall not have the authority
          to award punitive damages for any Dispute or to impose remedies
          unavailable in a court of law. The decision and award of the
          arbitrator shall be conclusive as to all matters within the
          arbitrator's jurisdiction in all other proceedings between parties,
          their successors or assigns, and judgment upon the award may be
          entered in any Court of competent jurisdiction.

                                 Page 11 of 13
<PAGE>   17

     F.   PAYMENT OF FEES. The parties agree to compensate the arbitrator
          commensurate with the professional standing of the arbitrator and in
          accordance with the Commercial Rules. The compensation of the
          arbitrator, the administrative fees and charges of the American
          Arbitration Association, and the other expenses of the arbitration
          shall be borne equally by the parties and each party shall bear its
          own legal fees, provided that in all cases in which the DEALER is
          entitled to recovery of its legal fees under applicable state or
          federal law, PETERBILT shall pay such fees.

     G.   TIME PERIOD. Unless PETERBILT and DEALER specifically agree to the
          contrary, and subject to the Commercial Rules and the procedures of
          the American Arbitration Association, the arbitration hearing shall be
          concluded not more than one hundred and eighty (180) days after the
          date of DEALER's written request to arbitrate.

X.   DEFENSE AND INDEMNIFICATION BY PETERBILT

     PETERBILT will assume the defense of DEALER and agrees to indemnify and
     hold DEALER harmless in any legal proceeding naming DEALER as a defendant
     and involving any PRODUCT when the proceeding involves allegations of:
     breach of warranty, or a defect in manufacture or design; provided that
     PETERBILT has available sufficient evidence to support the conclusion that
     DEALER has not done or failed to do any act which would provide an
     independent basis for any allegations of liability against DEALER. DEALER
     agrees to cooperate fully in developing the facts necessary for defense of
     the lawsuits whether or not DEALER remains a party. The obligations of the
     parties set forth in this Article X shall survive the termination of this
     AGREEMENT.

XI.  MISCELLANEOUS PROVISIONS

     A.   ENTIRE AGREEMENT. This AGREEMENT and Addenda constitute the entire
          AGREEMENT made by the parties and cancels and supersedes any and all
          previous agreements relating to the subject matters covered herein.

     B.   AMENDMENT. No amendment of any portion of this AGREEMENT will be valid
          or binding unless approved in writing by an authorized representative
          of each of the parties.

     C.   COLLATERAL ASSIGNMENT. DEALER may not pledge, assign, hypothecate, or
          grant a security interest in, this AGREEMENT or DEALER's right, title
          or interest therein.

     D.   SEVERABILITY. If any term or provision of this AGREEMENT is adjudged
          by any court or government agency to be invalid, void or
          unenforceable, such term or provision will be deemed deleted from this
          AGREEMENT and the remaining provisions thereof will continue in full
          force and effect.

     E.   GOVERNING LAW. This AGREEMENT will be governed and construed according
          to the laws of the state in which DEALER is located. To the extent a
          valid law of any jurisdiction requires any obligations or rights under
          this AGREEMENT to be exercised other than in accordance with this
          AGREEMENT, the rights and obligations shall be exercised in accordance
          with such law. All provisions of this AGREEMENT shall be construed in
          light of this paragraph.

     F.   WAIVERS. Any failure of either party at any time to require
          performance by the other party of any provision herein will not be
          deemed to be a waiver by such party of any subsequent breach or
          violation of the same or any other provision.

     G.   NOTICES. Any notice required to be given by either party to the other
          under or in connection with this AGREEMENT will be in writing and
          delivered personally or by certified mail, return receipt requested
          and will be effective from the date of receipt.

                                 Page 12 of 13
<PAGE>   18

     H.   NEW AND SUPERSEDING DEALER AGREEMENTS. In the event any new and
          superseding form of this AGREEMENT is offered by PETERBILT to all
          authorized PETERBILT dealers at any time prior to the expiration of
          the term of this AGREEMENT, and a substantial majority (no fewer than
          sixty-five percent (65%) of PETERBILT dealers) accept it, PETERBILT
          may, by written notice to DEALER, terminate this AGREEMENT and replace
          it with a new AGREEMENT in the new and superseding form for a term not
          less than the then unexpired term of this AGREEMENT. In that event,
          such termination shall be effective, without further notice, upon the
          earlier of: (1) execution of a new and superseding form of this
          AGREEMENT by DEALER; or (ii) thirty (30) days after a new AGREEMENT is
          offered and sent to DEALER for execution.

     I.   INDEPENDENT ENTITY. DEALER is not PETERBILT's agent in any respect and
          has not been granted any express or implied authority to incur
          obligations or make representations binding upon PETERBILT.

By their signatures hereto, PETERBILT and DEALER agree to abide by the terms and
conditions of this AGREEMENT in good faith and for their mutual benefit.

                             .             PETERBILT MOTORS COMPANY
-----------------------------

By:                                        By:
     ------------------------                   ------------------------------
          W.M. Rush II                            Nicholas P. Panza
Title:   Chairman & CEO                    Title: General Manager
Date                                       Date:  October 5, 1997
    -------------

                                 Page 13 of 13
<PAGE>   19

                                   ADDENDUM A
                                    PRODUCTS

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

Effective ___________, DEALER has a non-exclusive right to buy the following
Vehicles:

  Heavy Duty Models 320, 362, 357, 377, 378, 379, 385 and Medium Duty Model 330

trucks/tractors bearing the name "Peterbilt" and Genuine Parts and Accessories
consisting of new parts, components and accessories manufactured by or for
PETERBILT and/or the PACCAR Parts division of PACCAR Inc, designed primarily for
use on such Vehicles (the Vehicles and their Genuine Parts and Accessories are
referred to in the Dealer Sales and Service Agreement collectively as
"PRODUCTS").

This Addendum shall remain in full effect until superseded by a new Addendum A
furnished DEALER by PETERBILT. This Addendum A cancels and supersedes any
previous Addendum A.

                                             PETERBILT MOTORS COMPANY

                                             By:
                                                  ------------------------------
                                                     Nicholas P. Panza
                                             Title:  General Manager
                                             Date:   October 5, 1997

                                  Page 1 of 1
<PAGE>   20

                                   ADDENDUM B
                   DEALERSHIP LOCATION AND FACILITY STANDARDS

                            ----------------------.

PETERBILT has entered into this Agreement in reliance upon DEALER's
representation that it will establish and maintain DEALER facilities and
operations only at the following location(s) identified in this Addendum:

Main:  _______________                     Exclusive Heavy Duty     Yes
____________________                       Exclusive Medium Duty:   Yes
                                           Facility Type:           Full Service

Moreover, it is the mutual desire of DEALER and PETERBILT that DEALER's
facilities reflect a premium image and distinctive appearance consistent with
all other duly authorized PETERBILT dealers. DEALER agrees that the facilities
will at all times be in compliance with standards set forth in this Addendum, as
amended from time to time.

DEALER further agrees to the following:

1.   Operating Hours. DEALER will maintain its DEALER operations open for
     business during 5.5 days per week and 16 hours per day which are customary
     and lawful for truck dealers where DEALER is located.

2.   Signs. Subject to applicable law, DEALER will erect and maintain at the
     DEALER location(s), at DEALER's expense, standard product and service signs
     owned by PETERBILT, as well as such other signs authorized by PETERBILT as
     are necessary to identify the DEALER Operations effectively and as
     recommended by PETERBILT. DEALER shall in no way alter or modify the signs
     without obtaining prior written approval from PETERBILT.

3.   Computer Systems. DEALER will acquire, install, maintain and upgrade at
     DEALER's sole expense, standardized electronic data processing systems,
     business systems, communication systems and appropriate software compatible
     with PETERBILT's systems. The computer terminals for the system will be
     installed and maintained by DEALER at location(s) identified herein.
     Furthermore, DEALER will use the systems in accordance with PETERBILT's
     instructions.

4.   Evaluation of DEALER Facilities. PETERBILT will periodically evaluate
     DEALER's facilities in accordance with the terms of this Addendum.
     PETERBILT will provide DEALER with a written evaluation.

DEALER will maintain a facility which will reflect favorably upon and preserve
the goodwill of DEALER, PETERBILT and all other PETERBILT dealers and which will
meet PETERBILT's current minimum facilities standards as to size, cleanliness,
appearance, features, Peterbilt signage and corporate identity. DEALER shall use
the Peterbilt name in its legal name and/or a dba in a manner or form subject to
PETERBILT's prior approval. At such time as sales show the requirement for
additional facilities within the geographic area used by PETERBILT to establish
DEALER's sales quotas for Vehicles and Genuine Parts and Accessories, DEALER may
be expected to establish outlets in additional locations with the prior written
approval of PETERBILT.

It is agreed that each facility shall meet the following minimum standards:

     (1)  At least 20 service bays adequate for servicing heavy-duty trucks.

     (2)  10,040 square feet for parts storage with adequate racking of which
          800 square feet will be used for visual display.

     (3)  Adequate tools for heavy equipment maintenance including the
          following: N/A.

                                  Page 1 of 2
<PAGE>   21

For facilities designated as "exclusive" in this Addendum, DEALER agrees that
the facility will be dedicated to selling and servicing PETERBILT PRODUCTS and
DEALER acknowledges that PETERBILT has entered into this AGREEMENT in reliance
on DEALER's representation to provide and maintain an exclusive facility which
will not be used by DEALER to represent competitive truck manufacturers.

For nonexclusive facilities approved by PETERBILT, DEALER recognizes that if it
engages in other business activities in the facilities and/or on the DEALER
location(s), the facilities necessary for the sale and servicing of PRODUCTS may
be adversely affected. For these reasons, DEALER agrees that it will not
substantially modify, relocate, change the usage of, reduce or expand the DEALER
location(s) or the facilities without PETERBILT's prior approval.

All changes in the DEALER location(s) and facilities that may be agreed upon by
DEALER and PETERBILT pursuant to this Addendum shall be reflected in a new
Addendum B which supersedes and cancels the existing Addendum B.

                                   -           PETERBILT MOTORS COMPANY
-----------------------------------

By:                                            By:
     ------------------------------               ------------------------------
           W.M. Rush II                               Nicholas P. Panza
Title: Chairman & CEO                          Title: General Manager
Date: October 5, 1997                          Date:  October 5, 1997

                                  Page 2 of 2
<PAGE>   22

                                   ADDENDUM C
     OPERATING REQUIREMENTS, PERFORMANCE GOALS AND SALES/SERVICE EVALUATION

OPERATING REQUIREMENTS. DEALER agrees to meet the following minimum operating
requirements to order, sell, and service PETERBILT Vehicles. DEALER will:

1.   Employ at all times a minimum of 10 qualified salespeople who have
     completed the training required to sell Vehicles and also employ a minimum
     of 10 qualified and trained salespeople to sell other PRODUCTS.

2.   Maintain a minimum inventory of at least 8 new and unused PETERBILT Heavy
     Duty Vehicles and 2 new and unused PETERBILT Medium Duty Vehicles in stock
     or on order for stock.

3.   Employ at all times a minimum of 20 qualified service personnel who have
     sufficient training to perform routine diesel truck maintenance and
     overhaul procedures.

4.   Purchase and maintain the recommended inventory of special tools necessary
     for servicing the PETERBILT Vehicles.

5.   Purchase and maintain a minimum parts inventory of PETERBILT Genuine Parts
     and Accessories. The anticipated investment for these parts is
     approximately $1,300,000. Inventory records will be maintained and
     available to support this requirement.

Where this Dealer Sales and Service Agreement covers multiple locations, minimum
operating requirements for each location may be set forth in an attachment to
this Addendum.

PERFORMANCE GOALS, SALES AND SERVICE EVALUATIONS. PETERBILT will evaluate
DEALER's sales and service performance periodically and agrees to review such
evaluations with DEALER so that DEALER may take prompt action if necessary to
improve its sales and service performance. PETERBILT will provide DEALER with a
copy of such evaluation. PETERBILT will evaluate DEALER's performance based on
criteria set forth in Article II.A.2. of the Dealer Sales and Service Agreement
and this Addendum C, including but not limited to:

1.   Achievement of fair and reasonable PERFORMANCE GOALS as PETERBILT may
     establish at its discretion;
2.   The trend of DEALER's sales and service performance over a reasonable
     period of time;
3.   The manner in which DEALER has conducted its sales and service operations,
     including advertising, sales promotions and customer relations.

IT IS AGREED THAT DEALER'S PERFORMANCE GOALS FOR 2000 ARE:

<TABLE>
<S>                                                  <C>
                HEAVY DUTY VEHICLES                  2212
                MEDIUM DUTY VEHICLES                 360
                PARTS                                TBD
</TABLE>

These performance goals are established in reliance on the DEALER's commitment
to promote maximum sales in the non-exclusive area consisting of the following
counties in the State of _____.

For Medium Duty products these performance goals are established in reliance on
the DEALER'S commitment to promote maximum sales in the non-exclusive area
consisting of ______county _____.

                                  Page 1 of 2
<PAGE>   23

Upon providing DEALER one hundred and eighty (180) days prior written notice,
PETERBILT may in its sole discretion alter the area described above at any time
by written notice to DEALER and/or appoint additional dealers in the area
without altering the area.

DEALER may sell outside this area and other PETERBILT dealers may sell into the
area from approved locations. If PETERBILT uses this area in part or in whole to
establish performance goals for another PETERBILT dealer, the performance goals
established for DEALER in this AGREEMENT shall be adjusted accordingly.

In addition, DEALER agrees to take the following actions in the time period
stated below in order to improve dealership operations:

          ACTION                                                 COMPLETION DATE
General:  DEALER agrees the following counties will be deleted from
          DEALER's area of primary marketing responsibility at the
          sole discretion of PETERBILT to establish a Central Texas
          primary marketing area: Anderson, Brazos, Freestone,
          Houston, Leon, Madison, and Robertson.

                                          PETERBILT MOTORS COMPANY
---------------------------

By:                                       By:
     ----------------------                      ------------------------------
       W.M. Rush II                              Nicholas P. Panza
Title: Chairman & CEO                     Title: General Manager
Date:  January 4, 2000                    Date:  January 4, 2000

                                  Page 2 of 2
<PAGE>   24

                                   ADDENDUM D
          STATEMENT OF OWNERSHIP AND FINANCIAL AND MANAGEMENT STANDARDS

STATEMENT OF OWNERSHIP AND MANAGEMENT. This Addendum is executed effective as of
_____________ pursuant to Articles I and IV of the Agreement. PETERBILT enters
into the Agreement in reliance upon personnel qualifications, representations
and present financial condition of the persons identified below and upon
DEALER's assurances that the following persons and only the following persons
will be the owners of DEALER.

<TABLE>
<CAPTION>
<S>                                                      <C>       <C>
Name                                                     Title     Percent Ownership
----                                                     -----     -----------------
Rush Enterprises, Inc. *a Public Owned Corporation                  100%
</TABLE>

DEALER recognizes that the effective performance of its obligations require that
experienced DEALER management be actively involved in DEALER operations at all
times. PETERBILT enters into this DEALER Sales and Service Agreement in reliance
upon the qualifications of to participate actively in the daily operation and
management of DEALER and upon DEALER's assurance that such person(s), and no
other person(s), will at all times function as DEALER PRINCIPAL(S) and/or
OPERATING MANAGER(S) and be considered as the individual(s) with complete
authority to make all decisions on behalf of DEALER with respect to DEALER's
operations.

NET WORKING CAPITAL. DEALER agrees to establish and maintain actual net working
capital in an amount not less than the minimum net working capital requirements
as determined by PETERBILT financial standards for dealership capitalization.
DEALER further agrees to invest or obtain additional funds within a reasonable
period of time to meet such minimum net working capital requirements.

WHOLESALE CREDIT. DEALER recognizes that in order to operate successfully, it
must maintain flooring lines of credit adequate to meet its ongoing obligations.
Accordingly, DEALER agrees to obtain, maintain and increase as PETERBILT may
require, adequate flooring and lines of credit from reputable financial
institution(s) or other credit source expressly approved by PETERBILT.

DEFAULT IN PAYMENT. Should DEALER when payment is due fail to pay for, or fail
to obtain financing to pay for, any PRODUCTS ordered by DEALER, PETERBILT may,
with respect to any such PRODUCTS, take any of the following actions:
     (a)  Store them at the sole risk and expense of DEALER;
     (b)  Cause them to be shipped elsewhere (including returning the same to
          PETERBILT) at DEALER's expense, including expenses for storing,
          handling, and shipping; or
     (c)  Sell them directly to any other PETERBILT dealer or other party, all
          expenses or losses occasioned thereby to be borne by DEALER.

FINANCIAL MANAGEMENT PERSONNEL ASSISTANCE. PETERBILT agrees to make available
field personnel who will periodically advise DEALER on subjects relating to
financial management of DEALER.

OTHER FINANCIAL STANDARDS. DEALER agrees to comply with all other PETERBILT
financial standards, including changes or additions thereto, published by
PETERBILT from time to time. PETERBILT agrees that DEALER will have a reasonable
period of time to comply with changes or additions to PETERBILT financial
standards.

                                           PETERBILT MOTORS COMPANY
----------------------------------

By:                                       By:
     -----------------------------              ------------------------------
        W.M. Rush II                              Nicholas P. Panza
Title:  Chairman & CEO                    Title:  General Manager
Date:   October 5, 1997                   Date:   October 5, 1997

                                  Page 1 of 1
<PAGE>   25

                                   ADDENDUM E
                             RIGHT OF FIRST REFUSAL

This Addendum to the Dealer Sales and Service Agreement between PETERBILT and
DEALER is entered into as of the date set forth below.

WHEREAS, DEALER desires to have PETERBILT provide assistance in identifying
potential buyers in the event DEALER decides to sell its business, or any branch
thereof (and DEALER has not otherwise entered into an agreement with PETERBILT
governing succession); and

WHEREAS, PETERBILT desires to have an option to purchase and a right of first
refusal in the event DEALER decides to sell its business, or any branch thereof;

NOW, therefor, in consideration of the promises and mutual covenants of the
parties hereinafter set forth, it is agreed as follows:

1.   DEALER shall give PETERBILT notice in writing before undertaking any
     efforts to sell the dealership. The notice will contain a description of
     the assets to be sold, the proposed selling price, and other terms relevant
     to the sale. Upon request, PETERBILT agrees to provide assistance to DEALER
     in locating buyer candidates acceptable to both PETERBILT and DEALER,
     although DEALER shall independently negotiate any buy/sell agreement.
     PETERBILT also agrees to make best efforts to conditionally approve
     potential buyers to facilitate DEALER'S negotiations. Upon conditionally
     approving a specific buyer, PETERBILT will waive its right of first refusal
     as to that buyer.

2.   In the event PETERBILT refuses to approve DEALER's proposed transfer or
     sale of any ownership interest in the dealership, PETERBILT shall have
     under Paragraph 4 herein, the right of first refusal in the event the
     DEALER has entered into a written buy/sell agreement or, under Paragraph 5
     herein, an option to purchase the dealership assets, including any
     leasehold interest or realty, if the DEALER has not yet entered into such
     an agreement.

3.   If PETERBILT intends to exercise its right of first refusal and/or option
     to purchase the dealership, it must so advise DEALER in writing of its
     decision within thirty (30) days of receiving the DEALER'S written request
     for approval of sale or transfer to a bona fide buyer identified in
     DEALER's request. DEALER agrees that PETERBILT shall have the right to
     assign its right to exercise its option to purchase or right of first
     refusal to any third party it may select and PETERBILT hereby guarantees
     the full payment of the purchase price by such assignee.

4.   If PETERBILT has refused to approve the transfer or sale of DEALER'S
     ownership or assets and DEALER has entered into a bona fide arms length
     written agreement governing such transfer or sale, PETERBILT'S right under
     this paragraph shall be a right of first refusal, permitting PETERBILT to
     assume the buyer's rights and obligations under such written agreement. The
     purchase price and other terms of sale shall be those set forth in such
     agreement and any related documents. PETERBILT may request and DEALER
     agrees to provide any and all supporting documents relating to the transfer
     or sale which PETERBILT may require to assess the bona fides of the
     agreement. Refusal to provide such documentation or to state that no such
     documents exist shall create the presumption that the buy/sell agreement is
     not a bona fide agreement.

<PAGE>   26

5.   If PETERBILT has refused to approve the transfer or sale of DEALER'S
     ownership or assets and DEALER has not entered into a bona fide arms length
     written agreement governing such transfer or sale, then PETERBILT shall
     have the option to purchase the principal tangible and intangible assets of
     DEALER used in the dealership operations, including real estate and/or
     leasehold interest, and to terminate the Dealer Sales and Service
     Agreement. The purchase price for the dealership shall be the fair market
     value of the business as negotiated by the parties.

IN WITNESS WHEREOF, the parties have executed this Addendum as of the date set
forth below.

                                          PETERBILT MOTORS COMPANY
----------------------------------

By:                                       By:
     -----------------------------           -----------------------------------
       W.M. Rush II                              Nicholas P. Panza
Title: Chairman & CEO                     Title: General Manager
Date:  October 5, 1997                    Date:  October 5, 1997

                                  Page 2 of 2<PAGE>   1

                                                                  Exhibit 10.19

LETTER AGREEMENT - FINAL

                                                                 March 29, 2000
                                                                 Via: Facsimile
                                                                   830-626-5314

Mr. Marvin Rush, Chairman
Rush Enterprises
P O Box 346630
San Antonio, Texas 78265-4630

Dear Marvin:

PACCAR Financial Corp. is pleased to offer this Letter Agreement confirming the
2000/2001 "financing plan" for the Rush Enterprises' Peterbilt dealerships
listed below. In consideration of this preferred finance plan, our mutual
expectation is to reach at least 20% new Peterbilt finance penetration (units
financed/units sold) in the year 2000 (about $110 million in finance volume) and
at least 25% in 2001. The program described below is intended for "day to day"
business, and the parties are free to negotiate terms for other transactions as
needs arise.

PROGRAM PERIOD

January 1, 2000 through December 31, 2001, unless terminated by either party
prior to its conclusion.

RATES

New
5 year Treasuries plus 3.40 percent

Used

3 year Treasuries plus 4.25 percent

(1)  Three Year Treasury Rates for new and used, respectively, will be based on
     the weekly H-15 Treasury Interest Rate report. The rates appearing on the
     last Tuesday of the preceding month will be used for the following month.

(2)  The above rate structure will also be used for PFC's owner operator lease
     program (stream rate). 60-month leases with 10% residual will be at a .25%
     premium due to the longer amortization. The cost of PFC's liability
     insurance will be added to this rate structure, for owner operator leases.

DEALER LIABILITY

8%   New Non Fleet

5%*  New Transactions of 10 or more units

10%  Used

*    5% fixed, all other liability amounts based on the declining balance.
     Parties are free to negotiate LL of other amounts as conditions warrant.
     Nonrecourse is available for qualified credits.

<PAGE>   2

Mr. Marvin Rush, President
March 29, 2000 - Final
Page Two

ANNUAL LOSS CAP

The annual loss cap for the program period (2000 and 2001) will be $500,000 per
year, plus any additional recourse agreed to by the parties. This will be an
aggregate cap for all the Rush Peterbilt dealerships.

DEALERSHIPS

Rush Truck Centers of Texas, Inc.
Rush Truck Centers of California, Inc.
Rush Truck Centers of Colorado, Inc.
Rush Truck Centers of Louisiana, Inc.
Rush Truck Centers of Oklahoma, Inc.
Rush Truck Centers of Arizona, Inc.
Rush Truck Centers of New Mexico, Inc.

DEALER RESERVE

Dealer reserve will be paid 100% upfront on new trucks up to a 3% dealer reserve
and up to a 5% dealer reserve on used trucks. Reserve amounts above 3% and 5%
will be split pro rata 75% for Rush and 25% for PFC. PFC's 25% will be added to
the program rate. The following illustrates this concept:

<TABLE>
<CAPTION>
Dealer Reserve
Used                               New                           PFC Rate
---------------                    --------                      ---------
<S>                                <C>                           <C>
Up to 5%                           Up to 3%                      No change
5.4%                               3.4%                          +.1%
5.8%                               3.8%                          +.2%
Etc.                               Etc.                          Etc.
</TABLE>

Dealer fees on the owner operator lease program in excess of 10% of the
capitalized equipment cost will be split 50/50 with PFC.

The dealer's reserve payment and dealer fee on leases will be paid on the 15 th
of the following month. The difference in payment methods will be used on all
finance transactions. Dealer fees on leases will be expressed as a percentage of
the capitalized equipment cost.

CHARGEBACKS

Early terminations of any retail finance contract or modification of terms due
to a bankruptcy proceeding will result in a chargeback of unearned dealer
reserve to Rush Enterprises based on current PFC practices, where dealer reserve
is earned using the same method as interest earned on the underlying retail
contract.

On owner operator lease transactions, 100% of unearned dealer fees will be
charged back on a straight line basis throughout the term of the lease on all
early termination defaults, repossessions and bankruptcies where terms are
amended.

Transactions will be evaluated based on PFC's credit underwriting standards. PFC
will provide standard administrative services including contract administration
and collections.

This Letter Agreement shall be and hereby is incorporated into the Agreement for
Acquisition of Secured Retail Installment Paper between

<PAGE>   3

Mr. Marvin Rush, President
March 29, 2000 - Final
Page Three

Rush Truck Centers of Texas, Inc., Rush Truck Centers of California,
Inc., Rush Truck Centers of Colorado, Inc., Rush Truck Centers of
Louisiana, Inc., and Rush Truck Centers of Oklahoma, Inc., and PACCAR
Financial Corp., dated September 14, 1998, as well as any amendments
thereto (including work to incorporate the dealerships in New Mexico
and Arizona), and the Lease Marketing Agreement between the same
parties and of even date therewith, as well as any amendments and
attachments thereto (collectively, the "Rush Dealer Agreements").
Except for the modifications stated herein, the Rush Dealer Agreements
shall remain in full force and effect unchanged.

INSURANCE

PFC is pleased to offer the following commission structure for physical
damage insurance for the year 2000:

o    Standard Commission - 12.5% of Net Written Premium for all business (fleet
     and non-fleet) paid monthly.

o    Quarterly Bonus - 3.25% of Net Written Premium on volume over $300k (not
     retroactive) paid quarterly.

o    Annual Bonus - 1.25% of Net Written Premium on volume over $1.5 million
     (retroactive) paid annually.

o    Contingency Income - PFC's standard contingency program will remain in
     effect, allowing up to 8% of annual earned premium based on loss ratios.
     Contingency income is paid annually.

It is anticipated that the quarterly and annual targets will increase in 2001
and beyond and as our insurance relationship develops. Other Items:

1.   Other insurance in PFC contracts - With PFC's competitive commission
     structure outlined above, there should be little need to place other
     physical damage insurance in PFC contracts. However, PFC will consider
     exceptions when specific customer needs or market conditions warrant those
     exceptions.

2.   Specified perils versus comprehensive coverage - At this point in time, PFC
     does not offer comprehensive coverage. To manage your E&O exposure, we
     understand that you have the customer sign an acknowledgement in cases
     where specified perils is sold.

3.   Claims service - PFC's dedicated claims group, part of AIG, provides
     outstanding claims service. The utilization of independent appraisers
     allows for quick authorization of repairs and fast overall service. As we
     experience claims over the next year, we will review this service together.
     If the service is not satisfactory, we can develop a program similar to the
     Rapid Repair program used by Associates.

<PAGE>   4

Mr. Marvin Rush, President
March 29, 2000 - Final
Page Four

We appreciate the opportunity to provide this program to Rush Enterprises, Inc.
and look forward to supporting your efforts to provide financial services to
truck owners in your territories. This proposal contains proprietary information
and may not be disclosed to anyone outside Rush Enterprises, Inc. without prior
written consent of PACCAR Financial Corp.

Please call me if you have any questions.

                                                  Sincerely,

                                                  Andrew J. Wold
                                                  President

AJW:ejb
rushltragreement

Acknowledged and Agreed to this ______ day of January, 2000.

By:
   -------------------------------------
Rush Truck Centers of Texas, Inc.
Rush Truck Centers of California, Inc.
Rush Truck Centers of Colorado, Inc.
Rush Truck Centers of Louisiana, Inc.
Rush Truck Centers of Oklahoma, Inc.
Rush Truck Centers of Arizona, Inc.
Rush Truck Centers of New Mexico, Inc.

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