-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 AAYkm8QDJafRrhsVvy2S7QdlPk5c3xS/2P1uH0Dd/3tMfDLuX/EklQ453+cyEHZ0
 8lHwSgQvUS22ULWqN4mS/Q==

<SEC-DOCUMENT>0000950123-07-008481.txt : 20070611
<SEC-HEADER>0000950123-07-008481.hdr.sgml : 20070611
<ACCEPTANCE-DATETIME>20070608210704
ACCESSION NUMBER:		0000950123-07-008481
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070608
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20070611
DATE AS OF CHANGE:		20070608

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LANDSTAR SYSTEM INC
		CENTRAL INDEX KEY:			0000853816
		STANDARD INDUSTRIAL CLASSIFICATION:	TRUCKING (NO LOCAL) [4213]
		IRS NUMBER:				061313069
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1226

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21238
		FILM NUMBER:		07911060

	BUSINESS ADDRESS:	
		STREET 1:		13410 SUTTON PARK DRIVE SOUTH
		CITY:			JACKSONVILLE
		STATE:			FL
		ZIP:			32224
		BUSINESS PHONE:		9043901234

	MAIL ADDRESS:	
		STREET 1:		LANDSTAR SYSTEM INC
		STREET 2:		13410 SUTTON PARK DRIVE SOUTH
		CITY:			JACKSONVILLE
		STATE:			FL
		ZIP:			32224
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y35930e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Current Report<BR>
Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Date of Report (Date of earliest event reported) June&nbsp;8, 2007</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><IMG src="y35930y3593000.gif" alt="(LANDSTAR LOGO)"></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>LANDSTAR SYSTEM, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>021238</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>06-1313069</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>13410 Sutton Park Drive South, Jacksonville, Florida</B><BR>
(Address of principal executive offices)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>32224</B><BR>
(Zip Code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(904)&nbsp;398-9400</B><BR>
(Registrant&#146;s telephone number, including area code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">N/A<BR>
(Former name, former address and former fiscal year, if changed since last report)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01 Entry Into a Material Definitive Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="y35930exv99w1.htm">EX-99.1: LETTER AGREEMENT</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link2 "Item&nbsp;1.01 Entry Into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item&nbsp;5.02&nbsp;(e) Departure
of Directors or Certain Officers; Election of Directors; Appointment
of Certain Officers; Compensatory Arrangements of Certain Officers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;8, 2007, Landstar System, Inc. (the &#147;Company&#148;) entered into a letter agreement (the
&#147;Letter Agreement&#148;) with Henry H. Gerkens, its Chief Executive Officer, increasing Mr.&nbsp;Gerkens&#146;
base salary to an annual rate of $500,000 effective as of June&nbsp;1, 2007, and further amending and
restating the letter agreement entered into by the Company and Mr.&nbsp;Gerkens on April&nbsp;27, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Letter Agreement provides that in the event the Company terminates Mr.
Gerkens&#146; employment prior to the Company&#146;s 2009 annual meeting of stockholders other than for cause
or disability, or Mr.&nbsp;Gerkens terminates his employment for good reason, in each case at any time
that Mr.&nbsp;Gerkens&#146; rights to receive severance are not governed by his Key Executive Employment
Protection Agreement, (i)&nbsp;the Company shall pay Mr.&nbsp;Gerkens a lump sum severance benefit equal to
two times the sum of his annual base salary and the annual bonus that would have been payable to
him for the relevant period under the Company&#146;s Executive Incentive Compensation Plan, (ii)&nbsp;Mr.
Gerkens shall be entitled to continue to receive certain other benefits described in the Letter
Agreement and (iii)&nbsp;the 50,000 stock options granted to Mr.&nbsp;Gerkens in connection with his
appointment as Chief Executive Officer in 2004 shall immediately vest. In the event Mr.&nbsp;Gerkens&#146;
employment with the Company ends due to his death or disability, he shall be entitled to receive a
pro rata portion of the annual bonus that would have been payable to him for the relevant period
under the Company&#146;s Executive Incentive Compensation Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Letter Agreement, Mr.&nbsp;Gerkens has agreed that in the event his service as Chief
Executive Officer ends after the Company&#146;s 2009 annual meeting of stockholders for any reason other
than (i)&nbsp;a termination as a result of which he is entitled to receive severance benefits under
either his Key Executive Employment Protection Agreement or the Letter Agreement, (ii)&nbsp;a
termination for cause or (iii)&nbsp;his death, he shall provide the Company with certain consulting and
advisory services during the two-year period following the end of his employment, for which he will
be paid a salary at an annual rate of $150,000 and be entitled to continue to receive certain other
benefits described in the Letter Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Letter Agreement also provides that Mr.&nbsp;Gerkens will work exclusively for the Company
while in its employment and not compete with the Company or solicit or hire any of its employees
for a two-year period following the end of his employment as Chief Executive Officer for any
reason.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should Mr.&nbsp;Gerkens be reelected to the Board in 2009, the Letter Agreement will be deemed
automatically extended for the duration of his concurrent service as Chief Executive Officer and
Board member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary of the Letter Agreement is not intended to be complete and is qualified in its
entirety by the Letter Agreement, a copy of which is attached hereto as Exhibit&nbsp;99.1.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Exhibit Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Description of Exhibit</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement, dated June&nbsp;8, 2007, between Landstar System, Inc. and Henry H. Gerkens.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">LANDSTAR SYSTEM, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: June 8, 2007&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/
James B. Gattoni</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="3" align="left">James B. Gattoni&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Vice President and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>y35930exv99w1.htm
<DESCRIPTION>EX-99.1: LETTER AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit
99.1</B>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">June&nbsp;8, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Henry H. Gerkens<BR>
13410 Sutton Park Drive South<BR>
Jacksonville, Florida 32224

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Henry:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recognition of your achievements as the Chief Executive Officer of Landstar System, Inc.
(the &#147;Company&#148;), your base salary shall increase to the annual rate of $500,000, effective as of
June&nbsp;1, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover, as you know, on April&nbsp;27, 2004, you and the Company entered into an employment
letter in connection with your appointment as Chief Executive Officer of the Company. To reflect
the change in your rate of base salary and to make other changes thereto that the parties deem
appropriate, including the addition of certain restrictive covenants for the benefit of the
Company, the parties have agreed to amend and restate that letter, as set forth herein, to specify
the terms under which you will continue to serve as Chief Executive Officer. For the avoidance of
doubt, other than with respect to your increase in salary, you shall continue to be compensated on
the same terms and conditions as are currently applicable to you, including with respect to your
Participant Percentage Participation under the Company&#146;s Executive Incentive Compensation Plan (the
&#147;EICP&#148;), which will continue to be 100%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As Chief Executive Officer, you will have all of the duties and obligations generally
associated with that position at the Company. You serve as the Chief Executive Officer at the
pleasure of the Board and as a member of the Board at the discretion of our stockholders. Pursuant
to your re-election to the Board at the Company&#146;s 2006 Annual Meeting of Stockholders, your current
term as a member of the Board runs through the Company&#146;s 2009 Annual Meeting of Stockholders. In
the event that you are re-elected to the Board at the 2009 Annual Meeting of Stockholders and at
any subsequent meeting of Stockholders, this letter agreement will be deemed automatically extended
for the duration of your concurrent service as Chief Executive Officer of the Company and as a
member of the Board of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, if the Company terminates your employment for any reason other
than Cause or Disability (as such terms are defined in your Key Executive Employment Protection
Agreement (&#147;KEEPA&#148;)) or you voluntarily terminate your employment for Good Reason (as defined in
clauses (i)&nbsp;and (ii)&nbsp;in the definition of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such term in the KEEPA) at any time prior to the Company&#146;s 2009 Annual Meeting of Stockholders
and your rights to receive severance are not governed by the KEEPA (that is, generally prior to the
occurrence of Change of Control, as defined in the KEEPA), then the Company shall pay you a lump
sum severance benefit (the &#147;Severance Benefit&#148;) equal to two times the sum of (i)&nbsp;your annual base
salary (as in effect on June&nbsp;1, 2007, or as it may hereafter be increased) and (ii)&nbsp;the amount that
would be payable to you as an annual bonus for the applicable period based on your stated
Participant Percentage Participation in the EICP, within five (5)&nbsp;business days of the date of
your termination of employment. If you receive the Severance Benefit, you and, to the extent
applicable, your dependents shall be entitled, after the date of your termination and until the
earlier of (x)&nbsp;the second anniversary of such date or (y)&nbsp;the date you become eligible for
comparable benefits under a similar plan, policy or program of a subsequent employer, to continue
participation in all of the Company&#146;s employee and executive welfare benefit plans (the &#147;Benefit
Plans&#148;) in which you participated immediately prior to the date of your termination. To the extent
any such benefits cannot be provided under the terms of the applicable plan, policy or program, the
Company shall either provide an insurance policy or policies providing all or part of such
benefits, and to the extent of any portion of the benefits not covered by any such policies, shall
provide you the remaining benefits coverage under another plan or from the Company&#146;s general
assets. Your continued participation in the Benefit Plans will be on the same terms and conditions
that would have applied had you continued to be an employee of the Company; provided, however, that
to the extent that the benefits provided under any such Benefit Plan are not medical benefits and
the provision of such benefits would not be exempt from Federal income taxation (the &#147;Taxable Other
Benefits&#148;), you will reimburse the Company for the full cost of such Taxable Other Benefits for the
first six months following your termination of employment (unless and solely to the extent you
elect, within ten business days of the date of your termination, to forego receipt of such Taxable
Other Benefits under this letter agreement). In addition, you would be entitled to receive any
vested amounts or benefits owing to you under the Company&#146;s otherwise applicable employee benefit
plans and programs (including any equity compensation plan), and all options granted to you in
connection with your appointment as Chief Executive Officer pursuant to the April&nbsp;27, 2004 letter
agreement which have not previously vested in accordance with their terms shall become fully vested
and exercisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that your employment with the Company terminates due to your death or Disability,
or under circumstances that entitle you to receive the Severance Benefit, you shall also receive
for the year of termination a payment in respect of the EICP determined in accordance with the
provisions of such EICP, but based on your base salary in effect at the date of your termination of
employment, multiplied by a fraction, the numerator of which is the number of days in such year
prior to and including the date of your termination and the denominator of which is the number of
days in such year.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You acknowledge that in the event that your employment is terminated under circumstances in
which the Severance Benefit is payable and you receive all of the compensation and other benefits
provided for in the two immediately preceding paragraphs in respect of any termination of your
employment with the Company, you will not assert any claims against the Company with respect to
such termination and that, except as expressly provided below, the payments and benefits paid to
you pursuant to this letter will be in full satisfaction of any and all claims you may have against
the Company with respect to such termination. You agree that, if requested by the Company, you
shall provide the Company with a formal written release of any such claims, in such form as shall
be reasonably requested by the Company, consistent with its past practices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that your service as Chief Executive Officer ends after the 2009 Annual Meeting
of Stockholders for any reason other than (i)&nbsp;your death, (ii)&nbsp;a termination by the Company for
Cause or (iii)&nbsp;a termination as a result of which you are entitled to receive the Severance Benefit
or the severance benefits under the KEEPA, then, during the two-year period following your
termination of service as Chief Executive Officer, unless the parties shall otherwise agree in
writing, you shall provide the Company consulting and other advisory services consistent with your
training and experience and your prior position with the Company as and when reasonably requested
by the Board of Directors or the then current Chief Executive Officer of the Company. Such
services shall not require you to devote, in any 12-month period, more than 20% of the average time
that you had devoted to your duties as Chief Executive Officer during the 36&nbsp;months immediately
prior to your termination of employment. In requesting any such services, the Company shall use
its commercially reasonable best efforts not to interfere with any of your other business
commitments. Unless the context otherwise requires, you shall determine the time and place at
which you perform any such services. For your availability to consult with the Company, and in
consideration of any services you are called on to perform, the Company shall pay you at the rate
of $150,000 per annum in quarterly installments, in advance, except that the installments payable
for the first six months following your termination of employment shall be paid six months
following the date your employment terminates. During the period that you are available to provide
consulting services, you and, to the extent applicable, your dependents shall be entitled to
continue participation in the Benefit Plans. To the extent any such benefits cannot be provided
under the terms of the applicable plan, policy or program, the Company shall either provide an
insurance policy or policies providing all or part of such benefits, and to the extent of any
portion of the benefits not covered by any such policies, shall provide you the remaining benefits
coverage under another plan or from the Company&#146;s general assets. Your continued participation in
the Benefit Plans will be on the same terms and conditions that would have applied had you
continued to be an employee of the Company; provided, however, that to the extent that the benefits
provided under any such Benefit Plan are not medical benefits and the provision of such benefits
would not be exempt from Federal income taxation (the &#147;Taxable Other Benefits&#148;), you will reimburse
the Company for the full cost of such Taxable Other
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Benefits for the first six months following your termination of employment (unless and solely
to the extent you elect, within ten business days of the date of your termination, to forego
receipt of such Taxable Other Benefits under this letter agreement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You agree that during the period of your employment with the Company, you shall provide your
services exclusively for the benefit of the Company, except that you may serve on the board of
directors of other companies or on the board or other governing body of charitable or community
organizations with the approval of the Board, which approval shall not be unreasonably withheld.
For a period of two years following the termination of your employment with the Company for any
reason, you shall not (i)&nbsp;provide any services, in any capacity whatsoever (including, but not
limited to, as an officer, employee, director, partner, principal, consultant, advisor or member)
to any business enterprise that is in direct competition with the business of the Company anywhere
in the United States or (ii)&nbsp;solicit or hire, or otherwise engage the services of, or assist any
third party in soliciting, hiring or engaging the services of any person who is, or at any time
during the preceding 90&nbsp;day period was, an employee of the Company or an independent contractor
providing services to the Company. You agree and acknowledge that by reason of your knowledge of
the Company&#146;s business, including your possession of and access to valuable confidential business
information, regardless of whether or not trade secrets, and your relationships with the Company&#146;s
customers, clients, employees and other service providers, the Company has a legitimate business
interest to protect in respect of its good will, confidential information and relationships with
customers, employees and independent contractors and that the foregoing covenants are necessary to
protect such interest, and are reasonable in both their geographic and temporal scope.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the avoidance of doubt, at any time that the rights and protections provided to you under
the KEEPA are in effect, the Severance Benefits payable to you hereunder shall not be applicable
and you shall be entitled to receive the full benefit and protection afforded to you under the
terms of the KEEPA.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please confirm your acceptance of this amended and restated letter agreement by signing where
indicated below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Sincerely,</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">&nbsp;/s/ Ronald W. Drucker</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Ronald W. Drucker, Chairman</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Compensation Committee of Landstar</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">System, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Landstar System, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">By:&nbsp;/s/ James B. Gattoni<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">James B. Gattoni</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Chief Financial
Officer</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Agreed and Accepted:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Henry H. Gerkens</div>
<DIV align="left"><DIV style="font-size: 3pt; margin-top: 16pt; width: 20%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Henry H. Gerkens

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: June&nbsp;8, 2007

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>y35930y3593000.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 y35930y3593000.gif
M1TE&.#EA?@!P`/<``````(````"``("`````@(``@`"`@,#`P,#<P*;*\`0$
M!`@("`P,#!$1$186%AP<'"(B(BDI*55554U-34)"0CDY.?]\@/]04-8`D\SL
M_^_6QN?GUJVID#,``&8``)D``,P````S`#,S`&8S`)DS`,PS`/\S``!F`#-F
M`&9F`)EF`,QF`/]F``"9`#.9`&:9`)F9`,R9`/^9``#,`#/,`&;,`)G,`,S,
M`/_,`&;_`)G_`,S_````,S,`,V8`,YD`,\P`,_\`,P`S,S,S,V8S,YDS,\PS
M,_\S,P!F,S-F,V9F,YEF,\QF,_]F,P"9,S.9,V:9,YF9,\R9,_^9,P#,,S/,
M,V;,,YG,,\S,,__,,S/_,V;_,YG_,\S_,___,P``9C,`9F8`9ID`9LP`9O\`
M9@`S9C,S9F8S9IDS9LPS9O\S9@!F9C-F9F9F9IEF9LQF9@"99C.99F:99IF9
M9LR99O^99@#,9C/,9IG,9LS,9O_,9@#_9C/_9IG_9LS_9O\`S,P`_P"9F9DS
MF9D`F<P`F0``F3,SF68`F<PSF?\`F0!FF3-FF68SF9EFF<QFF?\SF3.9F6:9
MF9F9F<R9F?^9F0#,F3/,F6;,9IG,F<S,F?_,F0#_F3/_F6;,F9G_F<S_F?__
MF0``S#,`F68`S)D`S,P`S``SF3,SS&8SS)DSS,PSS/\SS`!FS#-FS&9FF9EF
MS,QFS/]FF0"9S#.9S&:9S)F9S,R9S/^9S`#,S#/,S&;,S)G,S,S,S/_,S`#_
MS#/_S&;_F9G_S,S_S/__S#,`S&8`_YD`_P`SS#,S_V8S_YDS_\PS__\S_P!F
M_S-F_V9FS)EF_\QF__]FS`"9_S.9_V:9_YF9_\R9__^9_P#,_S/,_V;,_YG,
M_\S,___,_S/__V;_S)G__\S___]F9F;_9O__9F9F__]F_V;__Z4`(5]?7W=W
M=X:&AI:6ELO+R[*RLM?7U]W=W>/CX^KJZO'Q\?CX^/_[\*"@I("`@/\```#_
M`/__````__\`_P#______RP`````?@!P```(_@#_"1Q(L*#!@P@3*ES(L*'#
MAQ`C2IQ(L:+%BQ@S:MS(L:/'CR!#&I0G3Z3)DQ,3T,J`LJ5+A/5J_=OULF9-
M7@)IT;/)\R1-@0EZ"OU(C];`GT.39H1'D-8\I5`KUD,J$&?4JQ#GS2JXJQ[6
MKPR9%IPE%JS9@D4/!CW+5F#)@SK;LGU[D*5<L%X3KKV+]6G"13OY7MV+L*S@
MN_<.0[6[D)X\7N\.O+M'N7)D7GX5>]S*$%\;-@LIK&/7[IY5S2_C_(O#>C7K
MU[`%4L#'[C3JE!")K,-'FQT[SQ(&OG;]CTB;`YEO.YRWX&$DS//H>:WG&.?D
M>^TH"%2M^I^$Q,H9_AYH0^2CO7C_[JUSW3UX^(/SV)7'G16R^^[OW@^4AV_[
M/W82&3617]RE]QY_`TF`&6$HS0/::@:BAJ!`X`G$6414301>=XH])I`A^1%$
MSR(3"6A18JQ1D!Q;\_!2GB$5$J1+18Q5U,Y`-\K%"X!$Q$A0/9%49&)%\[@G
MP8I]%4<$/D@.Q&!$BR!IST)3$H23:B$VF``\&<"3`"];>AEFE_#PTDYY[_`"
MII=>9N`F/$-.M,N77&;039=;)J!GF6JJ^64&8-*D6B09)$!72/+0LLBBL9"X
MZ#^-+KKH!`(YXVBC_RP2Z2PD9B0IB:UHVNFGDF9Z(82F[A*82'#JIU!W_JWL
M4J-(\LCDZD&#9K"J2?5$QTNGMQ*DSJ$NV2-/D,'B*%"5-='C8WA!JC@4+P=D
M>%L\..78$R^1'/"//+$H1R(];&@GU#SKQ!BN9EW]@Q.Q+Z&[SHJV"B96D=KR
ME%V6_^2U"[!LT5+2E.^L)Q0OHO4[4&9:L;5(NP+!TT92-R8F'7QQ1D6+;?\<
M`.]+O$PP;&/6)K4+O,SVY*W!"]7S*U2S))"704VV-,^-_3G4ZE`'9)!R0>CU
M-,_$`#XDSY,N&7:0:4*)5?1#]7QLTLD*H9M`S2C%8\A_$]%SJDE7STK0`0HF
M)8]V+#]DU]<?+:*T0?B4G12Z<4@@=51B_T-/_HMMK'-W3>^H]FQ#2'_D+<WM
MP/C/STG%,6^`+;5RZ#P'K$/!X8M#%8\$JF%NUFEF&L+.WT*!9S=$;XM42]22
M2/#=0#-'A;!J3#Z4L4GL$'UH/;%#A>(_M3<$<$M/RR7/>JJU@?5`J9L4).-G
MR3.Q:CTN=/M)O1XF/:H3Y"W0\#;W+A>Z[/TS@><"+8\1AP9=WQ;E_G5WW%$>
MM9:L03?:;W_.%<$VW$,<TTSQ_*>_A?@/(^[3'CNV)AP".O!_'UK'.YZ2`/#=
MCR&4*QY$5F*0#"00(=Y33@8LJ)"'*607;%/(5NP!/=243"&$^D?-IC2/#Z(E
M638<2"0@UI!:D-`@_H63$+(84@O2'807.4SA;8+8%%[L"B(9^!=#GJB<>B5$
M51;AW<ZNZ"H/*H06S9M(K;[HJB#.0A[TL`<]J$B1O0VQ(%'2SPL3P$:-T,.*
M!%%5&F^3EH+0PBLMW`@]V)>3]S!H$0FH4@@YXJ-%+%(N5(E+L00RJY_,PXA8
MN6-.X"$^E]1P($;943L">)9ZB&473ZEC@^I1P4S!HQT2:$/PQ@<G)MK,+Y^L
MQ3UX\[B[V&,>ZN-)K79Q@'NP`SE\4:50`D.=>L0C:$GAQ;TP<Y#>)6=Y'VM1
M9@(YD)]1<57)H4Y+Y"&!HO%"'>HXC03>*)#Q6(5L!KO9.JP"2^45Y!T4_@C1
M/60IOC9D:9\"J<<[YI>>-EAE<P;C11O`<X]T(DH"AZL<1`72!D,\B"#M&-U3
MVO"TS45(`NU@PXIVZ1=UW&,"*SIGCMX!H*=(KQV'H\U;$C.?<^)C)[PP!/HX
M,@])K&-*D!DE4`PA"8/PZVQ%X\_$*/2Z@O!"@D`!J4&>"IXBF:MCZAC(/JTR
M#R(@2Z$YXL5$17)-@@13A@S+3/;@(R*$7'.;;UW8S.8QUV*M<2-GY0DWE=+"
M7];#>W>%R0S#0Q(T_G(@>PNLWDBR$V,Q]I>,I2(P,U"2R18VL+TBR3Q8LL;"
M8G(H]:#%+&8Q)`_2XK1O.2TM5%6KTV)&M)&@_D4M#$6=HPDH$GI:!&EC>UJ6
MJ&06L8T8+2+!VUV$42F,&1)5F)*<!"`%:2N92OL,,HL,U(-M._V66:^"N7I]
M<B`XJ9%LG72[E0`K2+=;'8.D4S+"?!8E)J)+AFA"F$68*`/-*:1`<`NLWB:@
M7@^#!SW8F8'OKM9)9X%$!X?W1R5&XE!]=.20P*A=_5J+&S4"UG'[\JQ9T"._
M!J&:0&KAM9Q$<<(SH=\(]?L/6B"-ATD"92U>N*H%*!<ILU#P?FER8-@)R&TI
M;E\`:Y%7FP3P>JOJL4!V<3L3&D07]'#&?O^1@13.(H"0>,M>;>(^W)IH+W,B
M2"O]*(\5%R0ZH`SR04P.=5L391<J*E&MG%UL#].N1+6ZBK.J:J':.=%5(/1@
C\E9TD<H^!_JTVWB*:7F\6CN3\H*0CK2D)TWI2EL:(0$!`#L_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
