CONTRACTOR SERVICES AGREEMENT

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                                                                   Exhibit 10.39

                          CONTRACTOR SERVICES AGREEMENT

        THIS AGREEMENT (the "Agreement") is effective as of the 27th day of

July, 2003 (the "Effective Date"), by and between Velocity Express Corporation,

a Delaware corporation ("Company") and MCG Global, LLC ("Contractor").

                              W I T N E S S E T H:

        WHEREAS, Company is engaged in the logistics and same-day delivery

business (collectively, the "Business");

        WHEREAS, Contractor is experienced in the business of corporate

management, operational, strategic and financial guidance and has the expertise

necessary to advise Company regarding these and similar matters;

        WHEREAS, Company desires to contract for the services of Contractor to

provide Vincent Wasik to act as the Company's Chief Executive Officer;

        WHEREAS, the parties wish to enter into this Agreement to reflect their

mutual understandings and agreements;

        NOW, THEREFORE, in consideration of the foregoing recitals, which are

hereby made an integral part hereof and of the mutual covenants hereinafter set

forth, the parties hereto, intending to be legally bound hereby, agree as

follows:

        1.      Confidential Information.  Company and Contractor previously

entered into a Non-Disclosure and Non-Circumvention Agreement on April 18, 2001

(the "Non-Disclosure Agreement"), which Non-Disclosure Agreement, as well as its

duties, obligations and definitions are incorporated herein by reference. As

used in this Agreement, the term "Confidential Information" shall mean, in

addition to the definitions contained in the Non-Disclosure Agreement, any and

all information regarding Company, the Business or the Services disclosed,

transferred, or made known to Contractor, including without limitation

information concerning Company's past and present litigation, and Company's

finances, technology, customers, sales representatives suppliers.

        2.      Services.  Contractor shall serve as the Company's Chief

Executive Officer with all of the normal powers, duties, obligations and rights

as are generally attendant to such (collectively, the "Services"). All Services

called for by this Agreement shall be performed in conjunction with and in

accordance with the directions, specifications, conditions and requirements, as

the same may be modified from time to time, of the Company's Board of Directors

(the "Board").

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        3.