Document:

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                                                                   EXHIBIT 10.48

                                LEASE AGREEMENT

         THIS LEASE is made and entered into as of December 15, 2000, by and
between The Development Authority of the City of Manchester ("Landlord") and
Horizon Medical Products, Inc., a Georgia corporation ("Tenant");

         WHEREAS, Tenant is presently leasing from Landlord the "Facility" and
the "Project Site", as defined in and pursuant to the provisions of that certain
Lease Agreement dated July 1, 1996 (the "1996 Lease"), recorded at Deed Book
363, page 33, Meriwether County records;

         WHEREAS, Tenant is presently leasing from Landlord the remaining 20,000
square feet of the Facility pursuant to the provisions of that certain Lease
Agreement dated August 29, 1997 (the "1997 Lease"), recorded at Deed Book 383,
page 532, Meriwether County records;

         WHEREAS, Landlord has constructed on the Project Site a 15,000 square
foot building for lease by Tenant pursuant to the provisions of this Lease
Agreement;

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

          1.      PREMISES. Landlord, for and in consideration of the rents,
covenants, agreements, and stipulations herein mentioned, provided for, and
contained herein to be paid, kept, and performed by Tenant, demises and leases
and rents unto Tenant, and Tenant hereby leases and takes upon the terms and
conditions which hereinafter appear, the following described property (the
"Premises"), to-wit:

                  The approximate 15,000 square foot building that is
                  not part of the Project under the 1996 Lease, which
                  Premises is located on the Project Site as described
                  in the 1996 Lease and on the real property described
                  in Exhibit "A" attached hereto.

          2.      TERM AND RENEWAL. Tenant shall have the right and hold the
Premises for a term of one hundred eighteen (118) months, beginning on July 1,
2000 and ending on April 30, 2010, at midnight, unless sooner terminated as
hereinafter provided.

         If Tenant renews the Agreement Term under Section 8.7(a) of the 1996
Lease, Tenant shall renew the term of this Lease for one additional five-year
term on the same terms and conditions as contained in this Lease, provided that
monthly rental during the renewal term will be Six Thousand Two Hundred
Ninety-Six and 65/100 Dollars ($6,296.65).

          3. RENTAL. Tenant agrees to pay to Landlord, without demand,
deduction, or setoff, (i) rental and costs of Thirty Seven Thousand Eight
Hundred Seventy-One and 77/100 Dollars ($37,871.77) for the period from July 1,
2000 through December 31, 2000, and (ii) commencing on January 1, 2001 monthly
rental of Six Thousand Two Hundred Ninety-Six and 65/100 Dollars ($6,296.65) in
advance on the first day of each month during the remaining term hereof, with
the first

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month's rental due hereunder on January 1, 2001. Rental for any period during
the term hereof which is for less than one month shall be a prorated portion of
the monthly rental due.

         4.       AGREEMENTS AND REPRESENTATIONS.

                  (A)      REPRESENTATIONS BY LANDLORD. The Landlord makes the
following representations as the basis for the undertakings on its part herein
contained:

                                    (I) Landlord is a public body corporate and
                  politic organized and existing under the laws of the State of
                  Georgia and is duly authorized to enter into, execute, and
                  deliver this Lease Agreement and to undertake the transactions
                  contemplated by this Lease Agreement and to carry out its
                  obligations hereunder. By duly adopted resolution, Landlord
                  has duly authorized the execution and delivery of this Lease
                  Agreement.

                                    (II) Landlord has good and marketable title
                  to that certain real property specifically described in
                  Exhibit "A" attached hereto and incorporated herein by
                  reference, subject only to the permitted encumbrances
                  described in Exhibit "B" attached hereto ("Permitted
                  Encumbrances").

                                    (III) There are no actions, suits,
                  proceedings, inquiries, or investigations pending, or to the
                  knowledge of Landlord threatened, against or affecting
                  Landlord in any court or before any governmental authority or
                  arbitration board or tribunal, which involve the possibility
                  of materially and adversely affecting the transactions
                  contemplated by this Agreement or which, in any way, would
                  adversely affect the validity or enforceability of this
                  Agreement or any agreement to which Landlord is a party and
                  which is used or contemplated for use in the consummation of
                  the transactions contemplated hereby.

                  (B)      REPRESENTATIONS BY TENANT. Tenant makes the following
representations as the basis for the undertakings on its part herein contained:

                                    (I) Tenant is a corporation duly organized
                  and validly existing under the laws of the State of Georgia.
                  Tenant is not in violation of any provision of its Articles of
                  Incorporation or Bylaws, as amended, has the corporate power
                  to enter into and perform this Agreement, and has duly
                  authorized by proper corporate action the execution and
                  delivery of this Agreement, and is qualified to do business
                  and is in good standing under the laws of the State of
                  Georgia.

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                                    (II) To the best knowledge of Tenant, based
                  upon due diligence, neither the execution and delivery of this
                  Agreement nor the consummation of the transactions
                  contemplated hereby, nor the fulfillment of or compliance with
                  the terms and conditions hereof conflicts with or results in a
                  breach of the Articles of Incorporation or Bylaws of Tenant or
                  the terms, conditions, or provisions of any agreement or
                  instrument to which Tenant is now a party or by which it is
                  bound, or constitutes a default under any of the foregoing, or
                  results in the creation or imposition of any lien, charge, or
                  encumbrance whatsoever upon any of the property or assets of
                  Tenant under the terms of any such instrument or agreement.

                                    (III) There is no action, suit, proceeding,
                  inquiry, or investigation, at law or in equity, before or by
                  any court, public board or body, known to be pending or
                  threatened against or affecting Tenant, nor to the best
                  knowledge of Tenant is there any basis therefor, wherein an
                  unfavorable decision, ruling, or finding would materially and
                  adversely affect the transactions contemplated by this
                  Agreement or which would adversely affect, in any way, the
                  validity or enforceability of this Agreement or any agreement
                  or instrument to which Tenant is a party, used or contemplated
                  for use in the consummation of the transactions contemplated
                  hereby.

                  (C) OPERATION OF PREMISES. Tenant will use due diligence to
cause the Premises to be operated in accordance with the laws, rulings,
regulations, and ordinances of the State of Georgia and the departments,
agencies, and political subdivisions thereof. Tenant has obtained or will cause
to be obtained all requisite approvals of the State of Georgia and of other
federal, state, regional, and local governmental bodies for the construction and
equipping of the Premises.

          5.      CONSTRUCTION OF PREMISES.

                  (A)      Landlord has constructed to Premises pursuant to a
construction agreement between Landlord and Lankford Construction Company
("Construction Agreement"). Landlord has financed the construction of the
Premises through financing with Meriwether Bank and Trust Company in the
principal amount of Four Hundred Fifty Thousand Dollars ($450,000.00) (the
"Loan").

                  (B)      At the direction and sole cost of Tenant, Landlord
will promptly proceed, either separately or in conjunction with others, to
exhaust the remedies of Landlord against any defaulting supplier, contractor, or
subcontractor and against any surety therefor, for the performance of any
contract made in connection with the Premises. If Tenant shall so notify
Landlord, Tenant may, in its own name or in the name of Landlord, prosecute or
defend any action or proceeding or to take any other action involving any such
supplier, contractor, subcontractor, or surety which Tenant deems reasonably
necessary, and in such event Landlord agrees to cooperate fully with Tenant, and
to take all action necessary, to the extent it might lawfully do so, to effect
the substitution of Tenant

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for Landlord in any such action or proceeding. In addition, Landlord recognizes
that it may be entitled to a refund of certain sales, use, or other taxes levied
and paid on goods and merchandise which are used in the construction of the
Premises and which become an integral part thereof. Landlord agrees that it
will, at the request and expense of Tenant, take all action necessary to obtain
any such refund to which it is entitled.

                  (C)      Landlord represents and agrees that it will defend
Tenant in the quiet enjoyment and peaceful possession of the Premises, free from
all claims of all persons claiming by, through, or under Landlord, throughout
the Lease term, so long as Tenant shall perform the agreements to be performed
by it hereunder, or so long as the period for remedying any failure in such
performance shall not have expired.

                  (D)      Landlord agrees that it will not take any action
during the term of this Lease which might reasonably be construed as tending to
cause or induce the levy or assessment of ad valorem taxes on the Premises or on
its title in and to the Premises.

                  (E)      Pursuant to Section 3(i) above, Tenant has paid
Landlord and Meriwether Bank and Trust Company, a division of the Bank of Upson,
(the "Bank") for all of the following costs and expenses incurred by Landlord or
the Bank in connection with the construction loan ("Construction Loan") from the
Bank and the permanent loan from the Bank and/or F&M Bank and Trust Company
("Permanent Loan") to Landlord for the construction of the Premises and the
review of this Agreement:

                           (A)      the interest charged by the Bank on the
                   Construction Loan, and

                           (B) costs of the Construction Loan and the Permanent
                  Loan, including without limitation, attorney's fees, recording
                  costs, closing costs, cost of the survey, cost of the
                  appraisal, origination fees, intangible taxes, cancellation
                  fees, and fees of counsel for the Bank and for Synovus Trust
                  in connection with this lease; provided, however, that the sum
                  of all costs and expenses which Tenant is obligated to pay or
                  reimburse under this clause (b) shall not exceed in the
                  aggregate Fifteen Thousand Dollars ($15,000.00).

         6.       UTILITY BILLS. Tenant shall pay all utility bills, including
but not limited to water, sewer, gas, electricity, fuel, light, and heat bills
for the Premises, and Tenant shall pay all charges for garbage collection or
other sanitary services.

         7.       TAXES. Tenant will pay, or cause to be paid, as the same
become lawfully due and payable:

                  (A)      All taxes and governmental charges of any kind upon
or with respect to Tenant's interest in the Premises;

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                  (B)      All taxes and governmental charges of any kind upon
or with respect to Tenant's machinery, equipment, inventory or related property
installed or brought by the Tenant in or on the Premises; and

                  (C)      All assessments and charges made by any governmental
body for public improvements that may be secured by a lien or charge on the
Premises; provided, (i) that there will be no ad valorem tax liability with
respect to Tenant's interest in and to the Premises (but that personal property
owned by Tenant and located in the Premises shall be subject to ad valorem
taxes) and provided further (ii) that with respect to such special assessments
or other governmental charges that may lawfully be paid in installments over a
period of years, Tenant shall be obligated to pay only such installments as they
become due and payable.

         Tenant may, at its own expense and in its own name and behalf, in good
faith contest any such taxes, assessments, and other charges and, in the event
of any such contest, may permit the taxes, assessments, and other charges so
contested to remain unpaid during the period of such contest and any appeal
therefrom.

         8.       LIENS AND ENCUMBRANCES. Tenant and Landlord represent and
warrant that, as of July 1, 2000, there exist no lien, charge, or encumbrance
upon the Premises, other than the liens and encumbrances described in Exhibit
"B" attached hereto (the "Permitted Encumbrances"). Tenant may bring equipment,
machinery, furniture, office equipment, and inventory onto the Premises, which
property of Tenant will be subject to a security interest and lien in favor of
Bank of America, N.A., formerly known as Banc of America Commercial Finance
Corporation, formerly known as NationsCredit Commercial Corporation. Landlord
agrees to execute the form of Landlord's Consent and Waiver attached hereto as
Exhibit "C" and incorporated herein by reference, if requested to execute such
form by Bank of America, N.A. and/or any other secured lender of Tenant.
Additionally, Tenant may from time to time purchase items of machinery,
equipment, or other personal property that do not constitute part of the
Premises but are placed or installed on the Premises under an installment
purchase and security agreement, purchase money mortgage agreement,
lease-purchase agreement, or similar contractual obligation in which the seller
retains a security interest.

         9.       INSURANCE. Throughout the term of this Lease, Tenant shall
keep, or cause to be kept, the Premises continuously insured against such risks
as are commonly insured against by businesses of like size and type (other than
business interruption insurance), paying (except as otherwise provided herein)
as the same become due, all premiums in respect thereto, including, but not
necessarily limited to:

                  (A)      Insurance to the full insurable replacement value of
the Premises as determined by the Tenant, without deduction for depreciation,
against loss from damage by fire and lightening, with a uniform standard
extended coverage endorsement limited only as may be provided in the standard
form of extended coverage endorsement at the time and use in the State of
Georgia (provided that such insurance may provide for a deductible provision of
not in excess of One Hundred Thousand and No/100 Dollars ($100,000.00) with
respect to direct damage applicable to each separate instance of loss insured
against); and

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                  (B)      If the Premises has located thereon a boiler (or
boilers) and/or a pressure vessel (or pressure vessels), boiler and pressure
vessel (including pressure pipes) explosion insurance in an amount at least
equal to the replacement cost of the Premises and its contents as determined by
Tenant (with deductible provision not to exceed One Thousand and No/100 Dollars
($1,000.00)) against loss of damage with respect to all boilers and pressure
vessels and pressure pipes which may be installed in the Premises; and

                  (C)      General public liability insurance against claims for
bodily injury, death, or property damage occurring on the Premises, such
insurance to afford protection of not less than Three Million and No/100 Dollars
($3,000,000.00) per occurrence and Four Million and No/100 Dollars
($4,000,000.00) in the aggregate with respect to bodily injury and property
damage; and

                  (D)      Throughout the term of the Lease, Tenant shall
maintain, or cause to be maintained, in connection with the Premises workers'
compensation insurance coverage required by then applicable law.

         The insurance described above may be combined with insurance obtained
by Tenant pursuant to the 1996 Lease and the Project (as defined therein).

         All insurance required above shall be taken out and maintained in
generally recognizable responsible insurance companies selected by Tenant and
authorized to do business in the State of Georgia. All policies evidencing such
insurance shall provide for payment of the losses for coverage required above to
Landlord and Tenant, as their respective interests may appear; provided,
however, that all claims regardless of amount may be adjusted by Landlord with
the insurers, subject to the prior written approval of Tenant, as to settlement
of any claim which is an amount which would require payment to Landlord as
aforesaid. The insurance hereby required may be contained in blanket policies
now or hereafter maintained by Tenant, so long as such blanket policies contain
standard mortgage clauses that comply with the provisions of this Section; and
provided further that the policies evidencing such insurance also show as loss
payees the Landlord.

         10.      USE OF PREMISES. The Premises shall be used for manufacturing,
warehousing, and office administrative purposes and no other. The Premises shall
not be used for any illegal purposes, nor in any manner to create any nuisance
or trespass, nor in any manner to vitiate the insurance on the Premises.

         11.      ABANDONMENT OF THE PREMISES. Tenant agrees not to abandon or
vacate the Premises during the term of this Lease and agrees to use the Premises
for the purposes herein leased until the expiration hereof.

         12.      INDEMNITY. Tenant agrees to and does hereby indemnify and hold
Landlord and its officers, directors, and employees harmless against all claims
for damages to persons or property by reason of Tenant's use or occupancy of the
Premises, and all expenses incurred by Landlord as a result thereof, including
reasonable attorney's fees and court costs. The provisions of this Section shall
not apply to any claims or liability resulting from Landlord's acts of gross
negligence, bad faith,

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fraud, or deceit or for any claim which Tenant was not given an opportunity to
contest due to the bad faith, gross negligence, fraud, or deceit of Landlord or
its officers, agents, attorneys, or employees.

         13.      MAINTENANCE OF THE PREMISES. Throughout the Lease term, Tenant
shall keep the Premises in as reasonably safe condition as the operation thereof
will permit and shall keep the Premises in good repair and in good operating
condition, making from time to time all necessary repairs thereto.

         So long as no default exists hereunder, Tenant may from time to time,
in its sole discretion and at its own expense, make any alterations,
modifications, or improvements to the Premises, including installation of
additional machinery, equipment, and related property in the Premises, which
Tenant may deem desirable for its business purposes; provided that such
additions, modifications, and improvements do not adversely affect or impair the
structural integrity of the Premises or change the character of the Premises and
all such additions, modifications, and improvements are located within the
boundary lines of the Project Site (as defined in the 1996 Lease). All such
machinery, equipment, and related property installed by Tenant in the Premises
shall remain the sole property of Tenant. Tenant shall repair, at its expense,
any damage to the Premises caused by the removal of any such machinery,
equipment, or property. All such additions, modifications, or improvements to
the Premises will be accomplished in a good and workmanlike manner, in
conformity with all applicable laws and regulations, free and clear of liens and
encumbrances.

         14.      REMOVAL OF FIXTURES. Tenant may, if not in default hereunder,
prior to the expiration of this Lease remove any fixtures and equipment which it
has placed in the Premises, provided Tenant repairs all damages to the Premises
caused by such removal.

         15.      DESTRUCTION OF OR DAMAGE TO PREMISES. If the Premises is
totally destroyed by storm, fire, lightening, earthquake, or other casualty,
Tenant may terminate this Lease as of the date of such destruction and rental
shall be accounted for as between Landlord and Tenant as of that date. If this
Lease is not terminated by Tenant, Landlord and Tenant will use insurable
proceeds payable as a result of such destruction in reconstructing the Premises,
and upon completion of such reconstruction and occupancy of the Premises by
Tenant, full rental shall recommence.

         If the Premises is damaged but is not wholly destroyed by any such
casualties, rental shall abate in such proportion as use of the Premises has
been destroyed and Tenant may restore the Premises with insurance proceeds
payable as a result of such destruction to substantially the same condition as
before such damage, whereupon full rental shall recommence.

         16. GOVERNMENTAL ORDERS. Tenant agrees, at its own expense, to comply
promptly with all requirements of any legally constituted public authority made
necessary by reason of Tenant's occupancy of the Premises. It is mutually
agreed, however, between Landlord and Tenant, that if in order to comply with
such requirements, the cost to Tenant shall exceed a sum equal to two years'
rent, then Tenant may terminate this Lease by giving written notice of
termination to Landlord by certified mail, which termination shall become
effective sixty (60) days after receipt of such notice and which notice shall
eliminate the necessity of compliance with such requirements by giving such

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notice unless Landlord shall, before termination becomes effective, pay to
Tenant all costs of compliance in excess of one year's rent, or secure payment
of such sum in a manner satisfactory to Tenant.

         17.      CONDEMNATION. If the whole of the Premises, or such portion
thereof as will make the Premises unusable for the purposes herein leased, are
condemned by any legally constituted authority for any public use or purposes,
then in either of such events the term hereby granted shall cease from the date
when possession thereof is taken by public authorities, and rental shall be
accounted for as between Landlord and Tenant as of such date. Such termination,
however, shall be without prejudice to the rights of either Landlord or Tenant
to recover compensation and damage caused by condemnation from the condemnor. It
is further understood and agreed that neither Tenant nor Landlord shall have any
rights in any award made to the other by any condemnation authority
notwithstanding the termination of this Lease as herein provided.

         18.      ASSIGNMENT AND SUBLETTING. Tenant shall not, without the prior
written consent of Landlord, which shall not be unreasonably withheld, assign
this Lease or any interest hereunder, or sublet the Premises or any part
thereof. Consent to any assignment or sublease shall not impair this provision
and all later assignments or subleases shall be made likewise only on the prior
written consent of Landlord. The assignee of Tenant, at the option of Landlord,
shall become liable to Landlord for all obligations of Tenant hereunder, but no
sublease or assignment by Tenant shall relieve Tenant of any liability
hereunder.

         19.      EVENTS OF DEFAULT. The following shall be "Events of Default"
under this Lease, and the term "Event of Default" or "Default" shall mean,
whenever it is used in this Lease, any one or more of the following events:

                  (A)      Failure by Tenant to pay or cause to be paid when due
rental payments required to be paid under Section 3 hereof for a period of five
(5) days after such amount is due.

                  (B)      Failure by Tenant to observe and perform in any
material respect any covenant, condition, or agreement in this Lease, and such
failure shall continue unremedied for a period of thirty (30) days after written
notice, specifying such failure and requesting that it be remedied, given to
Tenant unless Tenant shall commence to remedy such failure within thirty (30)
days after the occurrence of such failure and shall diligently pursue such
remedy until completion thereof.

                  (C)      The commencement by Tenant of a voluntary case under
the federal bankruptcy laws, failure by Tenant promptly to institute judicial
proceedings to lift any execution, garnishment, or attachment of such
consequence as will materially impair Tenant's obligations hereunder, or the
entry of an order for relief in a case instituted under the bankruptcy laws with
respect to Tenant and dismissal of such case is not obtained within ninety (90)
days of the entry of such order, or the making of any general assignment by
Tenant for the benefit of its creditors, or the entry by Tenant into an
agreement of composition with its creditors.

                  (D)      Dissolution or liquidation of Tenant.

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                  (E)      Default by Tenant under the 1996 Lease or the 1997
Lease, and such default shall continue without cure for a period of thirty (30)
days after written notice, specifying such default under the 1996 Lease or the
1997 Lease, given to Tenant unless Tenant shall commence to cure such default
within thirty (30) days after such notice and shall diligently pursue such cure
until completion thereof.

                  (F)      After September 1, 2008, Landlord shall be limited to
the right to re-enter and take possession of the Premises without any liability
to Tenant for such entry and possession, as Landlord's sole remedy as result of
an Event of Default.

         20.      REMEDIES ON DEFAULT. Except as provided in Section  19(f)
above, in the event of a Default, the Landlord may take any one or more of the
following remedial steps in addition to any and all other rights or remedies it
may have at law or in equity:

                  (A)      Landlord may terminate this Lease by giving notice of
termination, in which event this Lease shall expire and terminate on the date
specified in such notice of termination, with the same force and effect as
though the date so specified were the date originally fixed as the termination
date of the term of this Lease, and all rights of Tenant under the Lease and in
and to the Premises shall expire and terminate, and Tenant shall remain liable
for all obligations under this Lease arising up to the date of such termination
and Tenant shall surrender the Premises to Landlord on the date specified in
such notice.

                  (B)      Landlord may, from time to time without terminating
this Lease, and without releasing Tenant in whole or in part from its obligation
to pay monthly rental and perform all of the covenants, conditions, and
agreements to be performed by Tenant as provided in this Lease, make such
alterations and repairs as may be necessary in order to re-let the Premises, and
after making such alterations and repairs, Landlord may, but shall not be
obligated to, re-let the Premises or any part thereof for such term or terms at
such rental or rentals and upon such other terms and conditions as Landlord in
its sole discretion may deem advisable or acceptable; upon each re-letting, all
rentals received by Landlord from such re-letting shall be applied first to the
payment of any cost and expenses of such re-letting, including brokerage fees
and attorney's fees and all costs of such alterations and repairs, and second to
the payment of the monthly rental due and unpaid hereunder, and the residue, if
any, shall be held by Landlord and paid to Tenant. In no event shall Tenant be
entitled to any excess rental received by Landlord over and above charges that
Tenant is obligated to pay hereunder as monthly rental; if such rentals received
from such re-letting during any month are less than those to be paid during the
month by Tenant hereunder, including monthly rental, Tenant shall pay any such
deficiency to Landlord, which deficiency shall be calculated and paid monthly.
Tenant shall also pay to Landlord as soon as ascertained and upon demand all
costs and expenses incurred by Landlord in connection with such re-letting and
making any alterations and repairs which are not covered by the rental received
under such re-letting; notwithstanding any such re-letting without termination,
Landlord may at any time thereafter elect to terminate this Lease for such
previous breach.

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         21.      HOLDING OVER. If Tenant remains in possession of the Premises
after expiration of the term hereof, with Landlord's acquiescence and without
any express agreement of the parties, Tenant shall be a tenant at will at the
rental rate which is in effect at the end of this Lease and there shall be no
renewal of this Lease by operation of law.

         22.      ATTORNEY'S FEES. In the event that any action or proceeding is
brought to enforce any term, covenant, or condition of this Lease on the part of
the Landlord or Tenant, the prevailing party in such litigation shall be
entitled to recover reasonable attorney's fees to be fixed by the court in such
action or proceeding, in an amount at least equal to fifteen percent (15%) of
any damages due from the non-prevailing party.

         23.      RIGHTS CUMULATIVE. All rights, powers, and privileges
conferred hereunder upon the parties hereto shall be cumulative and not
restrictive to those given by law.

         24.      WAIVER OF RIGHTS. No failure of Landlord to exercise any power
given Landlord hereunder or to insist upon strict compliance by Tenant of its
obligations hereunder and no custom or practice of the parties at variance with
the terms hereof shall constitute a waiver of Landlord's right to demand exact
compliance with the terms hereof.

         25.      PURCHASE OF PREMISES. Upon Tenant's purchase of the Facility
and the Project Site under the 1996 Lease, Tenant shall also purchase the
Premises for the cash price of which shall be composed of the sum of (i) Ten
Dollars ($10.00) and (ii) the remaining unpaid balance on the Permanent Loan.
Upon Tenant's purchase of the Premises from the Landlord and upon payment of the
purchase price set forth herein in cash, Landlord will, by bill of sale and
statutory warranty deed or other appropriate instruments, transfer and convey
the Premises (in its then condition, whatever that may be) to Tenant, subject
only to the Permitted Encumbrances and to any other liens of which Tenant
expressly consented and to those liens resulting from the failure of Tenant to
perform or observe any of the agreements or covenants on its part herein
contained.

         26.      ENVIRONMENTAL LAWS. Landlord represents to the best of its
knowledge and belief that the Premises are in compliance with all applicable
environmental laws and there are not excessive levels (as defined by the
Environmental Protection Agency) of radon, toxic waste, or hazardous substances
on the Premises. Tenant represents and warrants that Tenant shall comply with
all applicable environmental laws and that Tenant shall not permit any of its
employees, contractors, or subcontractors or any person present on the Premises
to generate, manufacture, store, dispose, or lease on or about or under the
Premises any toxic waste or hazardous substances which would result in the
Premises not complying with any applicable environmental laws.

         27.      TIME OF ESSENCE.  Time is of the essence of this Lease.

         28.      ENTIRE AGREEMENT. This Lease contains the entire agreement of
the parties hereto concerning the subject matter hereof, and no representations,
inducements, promises, or agreements, oral or otherwise, between the parties,
not embodied herein, shall be of any force or effect. No subsequent alteration,
amendment, change, or addition to this Lease shall be binding upon Landlord or
Tenant unless reduced to writing and signed by the parties hereto.

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         29.      MISCELLANEOUS.

                  (A)      All notices, certificates, or other communications
hereunder shall be sufficiently given and shall be deemed given on the third day
following the date on which the same shall have been mailed by first class mail,
postage prepaid, or on the date given if given by facsimile, confirmed in
writing, addressed as follows:

                  If to Landlord: The Development Authority of the City
                                  of Manchester
                                  ATTN:  Chairman
                                  Post Office Box 585
                                  Manchester, Georgia  31816

                  If to Tenant:   Horizon Medical Products, Inc.
                                  ATTN:  President
                                  Seven North Parkway Square
                                  4200 Northside Parkway, N.W.
                                  Atlanta, Georgia  30327

                                               and

                                  Horizon Medical Products, Inc.
                                  ATTN:  Vice President of Administration
                                  One Horizon Way
                                  Manchester, Georgia  31816

         The parties by notice given hereunder may designate any further or
different addresses to which subsequent notices, certificates or other
communications shall be sent.

                  (B)      This Lease shall inure to the benefit of and shall be
binding upon the parties hereto and their respective successors and permitted
assigns and shall be governed by and construed in accordance with the laws of
the State of Georgia.

                  (C)      In the event any provision of this Lease shall be
held invalid or unenforceable by any court of competent jurisdiction, the
remainder of this Lease shall be not effected thereby if such remainder would
then continue to conform to the requirements of applicable law.

                  (D)      All covenants, stipulations, obligations, and
agreements of the Landlord contained in this Lease shall be deemed to be
covenants, stipulations, obligations, and agreements of Landlord to the full
extent authorized by Georgia law. No covenant, stipulation, obligation, or
agreement contained herein shall be deemed to be a covenant, stipulation,
obligation, or agreement of any present or future member, agent, or employee of
Landlord in his individual capacity, and neither the members of Landlord nor any
official executing this Lease shall be subject to any personal liability or
accountability by reason of the execution by Landlord or such members thereof.

                                       11

<PAGE>

                  (E)      Any right, interest, or remedy which shall have
accrued during the term of this Lease shall not be terminated or extinguished by
the expiration or termination of this Lease but may be enforced by the party for
whose benefit such right, interest, or remedy shall have accrued and may be
enforceable by such party in accordance with the terms of this Lease as if it
had not terminated or expired or otherwise in accordance with law.

                  (F)      This Lease may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

                  (G)      LANDLORD MAKES NO WARRANTY, EITHER EXPRESS OR
IMPLIED, AS TO THE PREMISES OR THE CONDITION THEREOF, OR THAT THE PREMISES WILL
BE SUITABLE FOR THE PURPOSES OR NEEDS OF TENANT, EXCEPT AS EXPRESSLY PROVIDED
HEREIN. LANDLORD MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH
RESPECT TO THE MERCHANTABILITY, CONDITION, OR WORKMANSHIP OF ANY PART OF THE
PREMISES OR ITS SUITABILITY FOR THE TENANT'S PURPOSES.

                  (H)      This Lease, or a memorandum of this Lease describing
the relevant terms and conditions, and every assignment and modification hereof
shall be recorded at the Clerk's Office of the Superior Court of Meriwether
County or in such other office as may be at the time provided by law as the
proper place for such recordation.

         IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be
executed by its duly authorized officers as of the date first above written.

                                        THE DEVELOPMENT AUTHORITY
                                        OF THE CITY OF MANCHESTER

Signed, sworn to, and delivered
before me this January 24, 2001.

                                        By: /s/ George T. Chapman
                                           -------------------------------------
                                                       Chairman
---------------------------------
Unofficial Witness

                                        Attest: /s/ Judy Foster
                                               ---------------------------------
                                               Secretary or Assistant Secretary

---------------------------------
Notary Public
My Commission Expires:

[NOTARIAL SEAL]

                                       12

<PAGE>

                                        HORIZON MEDICAL PRODUCTS, INC.
Signed, sworn to, and delivered
before me this December 18, 2000.

                                        By: /s/ Marshall B. Hunt
                                           -------------------------------------
                                        Title: Chairman and CEO

---------------------------------
Unofficial Witness

/s/ Suzanne Mason                        Attest: /s/ William E. Peterson, Jr.
---------------------------------               --------------------------------
Notary Public                            Title:  Secretary
My Commission Expires:                         ---------------------------------

[NOTARIAL SEAL]

                                       13<PAGE>

                                                                  EXHIBIT 10.11

                                AMENDMENT NO. 10
                                       TO
                           SECOND AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

         THIS AMENDMENT NO. 10 is entered into as of December 3, 2002, by and
among AMERICAN TIRE DISTRIBUTORS, INC., a Delaware corporation, THE SPEED
MERCHANT, INC., a California corporation (collectively, the "Borrowers"), the
financial institutions party from time to time to the Loan Agreement (as
hereinafter defined) (the "Lenders"), and FLEET CAPITAL CORPORATION, a Rhode
Island corporation, as administrative agent (the "Administrative Agent") for the
Lenders.

                              PRELIMINARY STATEMENT

         The Borrowers, the Lenders and the Administrative Agent are parties to
the Second Amended and Restated Loan and Security Agreement dated as of March 6,
2000, as amended by Amendment No. 1 dated as of July 20, 2000, Amendment No. 2
dated as of February 2, 2001, Amendment No. 3 dated as of February 14, 2001,
Amendment No. 4 dated as of March 30, 2001, Amendment No. 5 dated as of August
10, 2001, Amendment No. 6 dated as of November 13, 2001, Amendment No. 7 dated
as of March 27, 2002, Waiver and Amendment No. 8 dated as of August 22, 2002,
and Amendment No. 9 dated as of September 25, 2002 (as at any time amended, the
"Loan Agreement"; terms defined therein, unless otherwise defined herein, being
used herein as therein defined).

         The Borrowers have requested that the Lenders further amend the Loan
Agreement to reflect certain modifications to the Borrowing Base, as more fully
described below.

         The Lenders are willing to amend the Loan Agreement, subject to the
terms and conditions contained herein.

                             STATEMENT OF AGREEMENT

         NOW, THEREFORE, in consideration of the Loan Agreement, the Loans
outstanding thereunder, the mutual covenants set forth therein and herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

         SECTION 1. AMENDMENTS TO LOAN AGREEMENT. Subject to the provisions of
SECTION 2 of this Amendment, the Loan Agreement is hereby amended as follows:

         (a) By adding the following new definitions to Section 1.1 of the Loan
Agreement, in proper alphabetical sequence:

<PAGE>

                  "Eligible Subordinated Vendor Inventory" means items of
         Inventory (a) that would be Eligible Inventory but for the fact that
         they are subject to a Subordinated Vendor Lien in favor of a vendor
         other than Bridgestone/Firestone or Goodyear Tire & Rubber Company or a
         division or Subsidiary thereof, and (b) to the extent the Subordinated
         Vendor Lien on such Inventory has been subordinated to the Security
         Interest pursuant to a Lien Subordination Agreement in the form of
         Exhibit G attached hereto and each of the Subordinated Vendor Inventory
         Eligibility Conditions has been satisfied, as determined by
         Administrative Agent in its sole discretion.

                  "Subordinated Vendor Inventory Eligibility Conditions" shall
         mean each of the following conditions precedent, the satisfaction of
         each of which shall be determined by Administrative Agent in its sole
         discretion:

         (i)      Loan Parties shall have given Administrative Agent at least
                  ten (10) Business Days prior written notice of their intent to
                  include the Eligible Subordinated Vendor Inventory in the
                  Borrowing Base;

         (ii)     Loan Parties shall have given Administrative Agent copies of
                  the security agreement and all related documentation between
                  the applicable vendor and Loan Parties at least ten (10)
                  Business Days prior to the proposed date of inclusion of such
                  Eligible Subordinated Vendor Inventory in the Borrowing Base;

         (iii)    Loan Parties and the applicable vendor shall have executed and
                  delivered to Administrative Agent a duly executed Lien
                  Subordination Agreement in the identical form of Exhibit G
                  attached hereto, with appropriate blanks completed at least
                  ten (10) Business Days prior to the proposed date of inclusion
                  of such Eligible Subordinated Vendor Inventory in the
                  Borrowing Base;

         (iv)     Administrative Agent shall have reviewed and found acceptable
                  in all respects such documentation delivered under clauses
                  (ii) and (iii) above between the vendor and Loan Parties and
                  the lien granted to such vendor pursuant to such documentation
                  shall (x) extend only to such vendor's branded inventory and
                  not to any proceeds thereof or other Collateral and (y)
                  otherwise comply with SECTION 11.9 of the Loan Agreement; and

         (v)      no Default or Event of Default shall exist.

Notwithstanding the terms contained in SECTION 15.9 of the Loan Agreement, if
the Lien Subordination Agreement that is delivered pursuant to clause (iii)
above is not in identical form to that attached as Exhibit G hereto, then the
consent of Administrative Agent and Required Lenders shall be required for any
modifications.

The Eligible Subordinated Vendor Inventory shall be included in the Borrowing
Base on the 5th Business Day after Administrative Agent's determination that
each of the foregoing conditions have

                                       2
<PAGE>

been satisfied. If at any time, any of the foregoing conditions ceases to be
satisfied, the Eligible Subordinated Vendor Inventory shall be deemed ineligible
and excluded from the Borrowing Base.

         (b) By amending the definition of "Borrowing Base" that is contained in
SECTION 1.1 of the Loan Agreement to read as follows:

                           "Borrowing Base" means at any time an amount equal to
                           the lesser of:

                           (a)      the aggregate Commitments, MINUS the sum of

                                    (i)     the Letter of Credit Reserve, PLUS

                                    (ii)    the Rent Reserve, PLUS

                                    (iii)   any Additional Reserves, and

                           (b)      an amount equal to

                                    (i) 85% (or such lesser percentage as the
                           Administrative Agent may in its reasonable credit
                           judgment determine from time to time) of the face
                           value of Eligible Receivables due and owing at such
                           time, PLUS

                                    (ii)    the lesser of:

                                            (A) the sum of (1) 65% (or such
                                    lesser percentage as the Administrative
                                    Agent may in its reasonable credit judgment
                                    determine from time to time) of the lesser
                                    of cost determined on a FIFO (or
                                    first-in-first-out) accounting basis and
                                    fair market value of Eligible Inventory
                                    consisting of tires at such time, PLUS (2)
                                    the lesser of (x) 60% (or such lesser
                                    percentage as the Administrative Agent may
                                    in its reasonable credit judgment determine
                                    from time to time) of the lesser of cost
                                    determined on a FIFO (or first-in-first-out)
                                    accounting basis and fair market value of
                                    Eligible B/F Inventory consisting of tires
                                    at such time, and (y) $18,000,000, PLUS (3)
                                    65% (or such lesser percentage as the
                                    Administrative Agent may in its reasonable
                                    credit judgment determine from time to time)
                                    of the lesser of cost determined on a FIFO
                                    (or first-in-first-out) accounting basis and
                                    fair market value of Eligible Goodyear
                                    Inventory consisting of tires at such time,
                                    plus (4) the lesser of (x) 65% (or such
                                    lesser percentage as the Administrative
                                    Agent may in its reasonable credit judgment
                                    determine from time to time) of the lesser
                                    of cost determined

                                       3
<PAGE>

                                    on a FIFO (or first-in-first-out) accounting
                                    basis and fair market value of Eligible
                                    Subordinated Vendor Inventory consisting of
                                    tires at such time, and (y) $10,000,000, and

                                            (B) $100,000,000, PLUS

                                    (iii)   the lesser of:

                                            (A) 50% (or such lesser percentage
                                    as the Administrative Agent may in its
                                    reasonable credit judgment determine from
                                    time to time) of the lesser of cost
                                    determined on a FIFO (or first-in-first-out)
                                    accounting basis and fair market value of
                                    Eligible Inventory other than tires, at such
                                    time, and

                                            (B) $25,000,000, MINUS

                                    (iv)    the sum of

                                            (A) the Letter of Credit Reserve,
                                    PLUS

                                            (B) the Rent Reserve, PLUS

                                            (C) the Dilution Reserve, PLUS

                                            (D) the Minimum Availability
                                    Reserve, PLUS

                                            (E) any Additional Reserves.

         (c) By incorporating the Exhibit G that is attached to this Amendment
into the Loan Agreement as a new Exhibit G thereto.

         SECTION 2. EFFECTIVENESS OF AMENDMENT.

         (a) The provisions of SECTION 1 of this Amendment shall become
effective on the date (the "Amendment Effective Date") on which the
Administrative Agent shall have received (1) an amendment fee in the amount of
$25,000, for the Ratable account of the Lenders, and (2) the following
documents, each of which shall be satisfactory in form and substance to the
Administrative Agent and in sufficient copies for each Lender (terms defined in
the Loan Agreement, as amended by this Amendment, being used in this SECTION 2
as so defined):

                           (i) this Amendment duly executed by the
                  Administrative Agent, the Borrowers, the Subsidiary Guarantors
                  and the Lenders; and

                                       4
<PAGE>

                           (ii) such other documents and instruments as the
                  Administrative Agent may reasonably request.

         SECTION 3. REPRESENTATIONS AND WARRANTIES. Each Loan Party hereby makes
the following representations and warranties to the Administrative Agent and the
Lenders, which representations and warranties shall survive the delivery of this
Amendment and the making of additional Loans under the Loan Agreement as amended
hereby:

                  (a) Authorization of Agreements. Each Loan Party has the right
         and power, and has taken all necessary action to authorize it, to
         execute, deliver and perform this Amendment and each other agreement
         contemplated hereby to which it is a party in accordance with their
         respective terms. This Amendment and each other such agreement
         contemplated hereby to which it is a party has been duly executed and
         delivered by the duly authorized officers of such Loan Party and each
         is, or each when executed and delivered in accordance with this
         Amendment will be, a legal, valid and binding obligation of such
         Borrower, enforceable in accordance with its terms.

                  (b) Compliance of Agreements with Laws. The execution,
         delivery and performance of this Amendment in accordance with their
         respective terms do not and will not, by the passage of time, the
         giving of notice or otherwise,

                           (i) require any Governmental Approval (that has not
                  been obtained) or violate any Applicable Law relating to such
                  Loan Party or any of its Subsidiaries,

                           (ii) conflict with, result in a breach of or
                  constitute a default under the articles or certificate of
                  incorporation or by-laws or any shareholders' agreement of
                  such Loan Party or any of its Subsidiaries, any material
                  provisions of any indenture, agreement or other instrument to
                  which such Loan Party, any of its Subsidiaries or any of such
                  Loan Party's or such Subsidiaries' property may be bound or
                  any Governmental Approval relating to such Loan Party or any
                  of its Subsidiaries, or

                           (iii) result in or require the creation or imposition
                  of any Lien upon or with respect to any property now owned or
                  hereafter acquired by such Loan Party other than the Security
                  Interest.

         SECTION 4. EFFECT OF AMENDMENT. From and after the Amendment Effective
Date, all references in the Loan Agreement and in any other Loan Document to
"this Agreement," "the Loan Agreement," "hereunder," "hereof" and words of like
import referring to the Loan Agreement, shall mean and be references to the Loan
Agreement as amended by this Amendment. Except as expressly amended hereby, the
Loan Agreement and all terms, conditions and provisions thereof remain in full
force and effect and are hereby ratified and confirmed. The execution, delivery
and effectiveness of this Amendment shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of the Administrative
Agent and the Lenders under any of the Loan Documents, nor constitute a waiver
of any provision of any of the Loan Documents.

                                       5
<PAGE>

         SECTION 5. COUNTERPART EXECUTION; GOVERNING LAW.

                  (a) Execution in Counterparts. This Amendment may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute but one and the
same agreement. Delivery of an executed signature page of any party hereto by
facsimile transmission shall be as effective as delivery of a manually delivered
counterpart thereof.

                  (b) Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York without giving
effect to conflicts of law principles thereof.

                  [Signatures will commence on following page]

                                       6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered by their respective officers thereunto duly authorized as
of the date first above written.

                                           BORROWERS:

                                           AMERICAN TIRE DISTRIBUTORS, INC.
[Corporate Seal]

Attest:                                    By: /s/ Richard P. Johnson
                                               ----------------------
                                               Name: Richard P. Johnson
/s/ J. Michael Gaither                         Title: President & CEO
----------------------
[Assistant] Secretary

                                           THE SPEED MERCHANT, INC.
[Corporate Seal]

Attest:                                    By: /s/ Richard P. Johnson
                                               ----------------------
                                               Name: Richard P. Johnson
/s/ J. Michael Gaither                         Title: President
----------------------
[Assistant] Secretary

                                           SUBSIDIARY GUARANTORS:

                                           Acknowledged and consented
                                           to this 9th day of December
                                           2002:

                                           T.O. HAAS TIRE COMPANY, INC.

                                           By: /s/ Richard P. Johnson
                                               ----------------------
                                               Name: Richard P. Johnson
                                               Title: President

                                           T.O. HAAS HOLDING CO., INC.

                                           By: /s/ Richard P. Johnson
                                               ----------------------
                                               Name: Richard P. Johnson
                                               Title: President

                                       7
<PAGE>

                                           FLEET CAPITAL CORPORATION, as
                                           Administrative Agent and as a Lender

                                           By: /s/ Stephen Y. McGehee
                                               ----------------------
                                                 Stephen Y. McGehee
                                                 Senior Vice President

                                       8
<PAGE>

                                                     WACHOVIA BANK, NATIONAL
                                                     ASSOCIATION, formerly known
                                                     as FIRST UNION NATIONAL
                                                     BANK, as Documentation
                                                     Agent and as a Lender

                                                     By: /s/ John T. Trainor
                                                         -------------------
                                                         Name: John T. Trainor
                                                         Title: Director

                                       9
<PAGE>

                                                 TRANSAMERICA BUSINESS CAPITAL
                                                 CORPORATION, as a Lender

                                                 By: /s/ Dennis C. Snyder
                                                     --------------------
                                                     Name: Dennis C. Snyder
                                                     Title: SVP

                                       10
<PAGE>

                                     STANDARD FEDERAL BANK NATIONAL
                                     ASSOCIATION, formerly known as MICHIGAN
                                     NATIONAL  BANK, as successor in interest to
                                     Mellon Bank, N.A., as a Lender

                                     By:      LASALLE BUSINESS CREDIT, INC., its
                                              agent

                                              By: /s/ Roger D. Attix
                                                  ------------------
                                                  Name: Roger D. Attix
                                                  Title: VP

                                       11
<PAGE>

                                  THE CIT GROUP/BUSINESS CREDIT, INC., as
                                  a Lender

                                  By: /s/ Nick Malatestinic
                                      ---------------------
                                      Name: Nick Malatestinic
                                      Title: Vice President Team Leader

                                       12
<PAGE>

                                    EXHIBIT G

                          LIEN SUBORDINATION AGREEMENT

         THIS LIEN SUBORDINATION AGREEMENT is made on __________, 200_, between
FLEET CAPITAL CORPORATION, a Rhode Island corporation, in its capacity as
administrative agent (together with its successors in such capacity, "Agent")
for Lenders (as hereinafter defined), and _____________, a _____________________
("Trade Creditor").

                                    RECITALS:

         American Tire Distributors, Inc., a Delaware corporation ("ATD"), The
Speed Merchant, Inc., a California corporation ("Speed Merchant"; ATD and Speed
Merchant are collectively referred to herein as "Borrowers") are parties to a
Second Amended and Restated Loan and Security Agreement dated as of March 6,
2000 (as amended to date and as the same may be further amended, restated,
modified or supplemented from time to time, the "Loan Agreement") with the
financial institutions party thereto from time to time ("Lenders") and Agent.
Borrowers, together with T.O. Haas Holding Co., Inc., a Nebraska corporation,
T.O. Haas Tire Company, Inc., a Nebraska corporation, and each other Person that
hereafter becomes a "Borrower" or a "Subsidiary Guarantor" under and as defined
in the Loan Agreement, are collectively referred to herein as "Loan Parties".

         Pursuant to the terms of the Loan Agreement, Lenders have heretofore
made and may from time to time hereafter make loans and other extensions of
credit to Borrowers, which loans and extensions of credit directly and
indirectly benefit all Loan Parties. As security for the repayment by Borrowers
of such loans and other extensions of credit, each Loan Party has granted or
will hereafter grant to Agent, for its benefit and the benefit of Lenders, a
security interest in substantially all of such Loan Party's personal property,
including, without limitation, all of such Loan Party's Inventory (as
hereinafter defined) and all proceeds thereof.

         Pursuant to the terms of [Name and date of Trade Creditor's Security
Agreement] (as amended to date and as the same may be further amended, restated,
modified or supplemented from time to time, the "Trade Security Agreement"),
each Loan Party has granted or may hereafter grant to Trade Creditor a security
interest in all Inventory (as hereinafter defined) consisting of tires sold to
such Loan Party by Trade Creditor and bearing any brand name or trademark used
by Trade Creditor now or in the future (such Inventory is referred to herein as
"Branded Inventory").

         Loan Parties have requested that Lenders extend credit to or for the
benefit of Loan Parties based, in part, on the value of Branded Inventory, which
extensions of credit will directly and indirectly benefit Trade Creditor. As an
inducement to Lenders to so extend credit, Loan Parties and Trade Creditor have
agreed to enter into this Agreement with Agent for the purpose of establishing
the priorities of Trade Creditor's and Agent's respective liens in the Branded
Inventory and to set forth certain other agreements between Trade Creditor and
Agent.

<PAGE>

         Accordingly, in consideration of the foregoing premises, the mutual
covenants and conditions herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby expressly
acknowledged, the parties hereto, intending to be bound hereby, agree as
follows:

                  1. DEFINITIONS; RULES OF CONSTRUCTION.

                  (a) In addition to the terms defined in the recitals hereto,
as used in this Agreement, the following terms shall have the following meanings
for the purposes of this Agreement:

                           "Account" shall have the meaning given to the term
         "account" in the UCC.

                           "Bankruptcy Case" shall mean any case hereafter
         commenced by or against any Loan Party under any chapter of the
         Bankruptcy Code.

                           "Bankruptcy Code" shall mean title 11 of the United
         States Code.

                           "Branded Inventory" shall have the meaning ascribed
         to it in the Recitals.

                           "Business Day" shall mean any day other than a
         Saturday, Sunday or day on which banks are authorized or required to be
         closed under the laws of the State of Georgia.

                           "Chattel Paper" shall have the meaning given to the
         term "chattel paper" in the UCC.

                           "Collateral" shall mean and collectively include all
         of the following property of each Loan Party, whether now existing or
         hereafter created or acquired (and whether acquired prior to or during
         the pendency of any Bankruptcy Case), wherever located: all Accounts,
         Inventory (including all Branded Inventory), General Intangibles,
         Documents, Instruments and Chattel Paper, and the proceeds and products
         of all of the foregoing.

                           "Document" shall have the meaning given to the term
         "document" in the UCC.

                           "Enforcement Action" shall mean and include any
         remedy available to Lenders under any of the Senior Creditor Documents
         or applicable law to enforce collection of any of the Senior
         Obligations following the occurrence of any Event of Default, and any
         remedy available to Trade Creditor under any of the Trade Creditor
         Documents or applicable law to enforce collection of any the Trade
         Obligations following the occurrence of an Event of Default, including,
         in each case, (a) the commencement of any action, suit or other
         proceeding against a Loan Party to enforce payment of any of the Senior
         Obligations or Trade Obligations; (b) the repossession, foreclosure
         upon or other act to realize upon any of the Collateral; (c) any
         notification by a party to any account debtor on any Account to remit
         payments with respect to such Account to the notifying party; and (d)
         any involuntary petition

                                       2
<PAGE>

         for relief against a Loan Party under the Bankruptcy Code or a petition
         or suit for the appointment of a receiver or other custodian for a Loan
         Party or any of a Loan Party's assets.

                           "Event of Default" shall mean an event or condition
         that constitutes a default or an event of default under the Senior
         Credit Documents or the Trade Creditor Documents.

                           "General Intangibles" shall have the meaning given to
         the term "general intangibles" in the UCC and shall include all tax
         refund claims, patents, patent applications, copyrights, trademarks,
         tradenames, trade secrets, service marks and choses in action.

                           "Instrument" shall have the meaning given to the term
         "instrument" in the UCC.

                           "Inventory" shall have the meaning given to the term
         "inventory" in the UCC.

                           "Lien" shall mean any security interest, statutory
         lien, judgment lien, common law lien, equitable lien or other interest
         in any of the Collateral.

                           "Person" shall mean any natural person, sole
         proprietorship, corporation, partnership, limited liability company,
         joint venture, business trust, other business entity, or any
         governmental unit, agency, bureau or political subdivision.

                           "Senior Creditor Documents" shall mean and include
         the Loan Agreement and all other instruments or agreements now or
         hereafter evidencing or securing the payment of the whole or any part
         of the Senior Obligations, including each Subsidiary Guaranty and
         Subsidiary Security Agreement (as those terms are defined in the Loan
         Agreement) executed by a Loan Party in favor of Agent, for its benefit
         and the benefit of Lenders.

                           "Senior Obligations" shall mean and include all
         liabilities and obligations of Loan Parties to Agent and Lenders,
         whether now or hereafter created, incurred or arising, and whether
         direct or indirect, absolute or contingent, primary or secondary, due
         or to become due, joint or several, or incurred during the pendency of
         a Bankruptcy Case or thereafter, including all liabilities now or at
         any time or times hereafter owing to Agent and Lenders under any of the
         Senior Creditor Documents.

                           "Trade Creditor Documents" shall mean and include the
         Trade Security Agreement and all other instruments or agreements now or
         hereafter evidencing or securing the payment of the whole or any part
         of the Trade Obligations.

                           "Trade Debt" shall mean, at any time, the outstanding
         trade debt then owing to Trade Creditor by Loan Parties arising out of
         Loan Parties' purchases of Branded Inventory on open account.

                                       3
<PAGE>

                           "Trade Obligations" shall mean and include the Trade
         Debt and all other liabilities and obligations of Loan Parties to Trade
         Creditor, whether now or hereafter created, incurred or arising,
         including all liabilities now or at any time hereafter owing to Trade
         Creditor under any of the Trade Creditor Documents.

                           "UCC" shall mean the Uniform Commercial Code (or any
         successor statute) as adopted and in force in the State of Georgia or,
         when the laws of any other state govern the method or manner of the
         creation or perfection of any security interest in any of the
         Collateral, the Uniform Commercial Code (or any successor statute) of
         such state.

                  (b) All references to any instrument or agreement, including
any of the Trade Creditor Documents or the Senior Creditor Documents, shall mean
and include all amendments and modifications thereto and renewals and
restatements thereof; all references to any statute shall mean and include all
amendments thereto and all regulations issued pursuant thereto; and the words
"including" and "include" shall mean "including, without limitation" and
"include, without limitation."

                  2. CONSENTS TO LIENS. Trade Creditor's security interest in
Branded Inventory as security for the Trade Obligations is a permitted Lien
under the Loan Agreement; the existence of such security interest does not
constitute an Event of Default under any of the Senior Creditor Documents. Trade
Creditor shall not request, accept or receive any Lien or other interest in any
of the Collateral except for Branded Inventory and to the extent that Trade
Creditor currently has a Lien on other Collateral, Trade Creditor is hereby
deemed to have released such Lien and agrees to execute any and all
documentation requested by Agent to evidence such release. Without limiting the
generality of the foregoing, Creditor acknowledges and agrees that it shall not
have a lien on or security interest in any proceeds of Branded Inventory. Trade
Creditor hereby consents to each Loan Party's grant of Liens in all of the
Collateral to Agent, for its benefit and the benefit of Lenders, as security for
the Senior Creditor Obligations and agrees that the existence of any such Liens
shall not constitute an Event of Default under any of the Trade Creditor
Documents.

         3. Priority of Liens.

                  (a) Trade Creditor and Agent agree at all times, whether
before, after or during the pendency of any bankruptcy, reorganization or other
insolvency proceeding and notwithstanding the priorities which would ordinarily
result from the order of granting or perfection of any Liens, the order of
filing or recording of any financing statements, or the priorities that would
otherwise apply under applicable law, that (i) Agent's Liens in the Collateral
constitute first priority Liens in such property to secure the Senior
Obligations and shall be superior to any Lien or other interest of Trade
Creditor in the same property arising pursuant to the Trade Creditor Documents,
by operation of law or otherwise; and (ii) any Lien or other interest at any
time acquired by Trade Creditor in any of the Collateral shall be subordinate to
the Liens of Agent therein.

                                       4
<PAGE>

                  (b) For purposes of the foregoing priorities, any claim of a
right of setoff by Trade Creditor shall be treated in all respects as a Lien and
no claim to right of setoff by Trade Creditor shall be asserted to defeat or
diminish the rights or priorities provided for herein in favor of Agent.

                  (c) If for any reason any Lien granted or conveyed by a Loan
Party to Agent pursuant to the Senior Creditor Documents or otherwise is set
aside or otherwise declared ineffective, in whole or in part, by any court of
competent jurisdiction, and if as a consequence thereof Trade Creditor becomes
entitled to receive any proceeds from any of the Collateral or on account of
Trade Creditor's Lien in any of the Collateral, then any such payments or
proceeds received by Trade Creditor shall be used by it to purchase a junior
participation in the Senior Obligations pursuant to a junior participation
agreement in form and content satisfactory to Agent but in all events providing
that Lenders' retained interest in the Senior Obligations (including both
principal and interest) and all costs and expenses incurred by Agent and Lenders
(including attorneys' fees) in attempting to collect the Senior Obligations or
to realize upon any of the Collateral shall be paid in full before Trade
Creditor shall be entitled to any payment on account of its junior participation
and Trade Creditor's junior participation will be without recourse of any kind
to Agent or any Lender except for Agent's or any Lender's gross negligence or
willful misconduct after the date of Trade Creditor's purchase of such junior
participation.

                  (d) In no event shall Trade Creditor institute, or join as a
party in the institution of, or directly or indirectly assist in the prosecution
of, any action, suit or proceeding seeking a determination that the Lien of
Agent in any of the Collateral is invalid, unperfected or avoidable, or is or
should be subordinated to the interests of any other Person. In no event shall
Agent or any Lender institute, or join as a party in the institution of, or
directly or indirectly assist in the prosecution of, any action, suit or
proceeding seeking a determination that the Lien of Trade Creditor in any of the
Collateral is invalid, unperfected or avoidable, or is or should be subordinated
to the interests of any Person other than Agent under the terms hereof.

                  (e) If at any time Agent shall subordinate, in whole or in
part, its Lien upon any of the Collateral to or in favor of any other Person,
the priority of Agent's Lien in the Collateral vis-a-vis Trade Creditor shall
not be affected thereby and Agent's Lien shall continue to be superior to Trade
Creditor's Lien in the Collateral as provided in paragraph 3(a) of this
Agreement.

         4. Standby as to Certain Actions. Trade Creditor agrees that it will
not ask for, demand, sue for, collect, take, receive, or repossess any of the
Branded Inventory or other Collateral from any Loan Party by setoff or in any
other manner, or otherwise take any Enforcement Action with respect to the whole
or any part of the Collateral, whether by judicial action or under power of
sale, by self-help repossession or otherwise, unless and until all of the Senior
Obligations have been paid finally and in full and Lenders' commitments to
extend further credit to or for the benefit of Loan Parties have been
terminated. If Trade Creditor in violation of the terms hereof, initiates any
Enforcement Action against a Loan Party or any of the Collateral, Agent may
interpose this Agreement and demand specific performance of the terms hereof.

                                       5
<PAGE>

         5. Agent's Rights Exclusive. Agent, on behalf of Lenders, shall have
the exclusive right to collect, foreclose upon, sell, transfer, liquidate or
otherwise dispose of any or all of the Collateral as provided in the Senior
Creditor Documents or by applicable law, in the manner deemed appropriate by
Agent and Lenders, without regard to any Liens of Trade Creditor therein, and
Trade Creditor will not hinder Agent's actions in enforcing its remedies or
taking any Enforcement Action with respect to the Collateral; provided, however,
that after payment in full of all Senior Obligations and the termination of
Lenders' commitments to extend further credit to or for the benefit of Loan
Parties, Agent shall deliver to Trade Creditor (unless otherwise restricted by
applicable law or by any order issued by a court in the proper exercise of its
jurisdiction and subject in all events to Agent's receipt of an indemnification
from Trade Creditor of all liabilities arising from such delivery) for
application to the Trade Obligations any proceeds remaining from the sale or
other disposition of the Collateral. To the fullest extent permitted by
applicable law, Trade Creditor waives any requirement on the part of Agent or
any Lender to conduct any sale or other disposition of any of the Collateral in
a commercially reasonable manner, and Agent shall be fully authorized to sell or
otherwise dispose of any or all of the Collateral in the manner deemed
appropriate by Agent and Lenders, including by the exercise of any right Agent
may have to accept any or all of the Collateral in total or partial satisfaction
of any of the Senior Obligations in accordance with the UCC or otherwise.

         6. Receipt of Monies by Trade Creditor. Trade Creditor agrees that
should it receive any money from the sale, liquidation, casualty or other
disposition of, or as a result of its Lien in any of the Collateral, it will
(unless otherwise restricted by law) hold the same in trust for Agent and
Lenders and promptly pay over the same to Agent for application to the Senior
Obligations (unless otherwise restricted by law or by any order issued by a
court in the proper exercise of its jurisdiction).

         7. Agreement on Certain Bankruptcy Matters.

                  (a) Without impairing, abrogating or in any way affecting
Agent's or any Lender's rights hereunder, including the relative priorities
established by paragraph 3 hereof, Agent may during any Bankruptcy Case give or
withhold its consent to any Loan Party's or any bankruptcy trustee's use or
consumption of any Collateral (including cash proceeds of any Accounts or other
Collateral), or may provide financing or otherwise extend credit to any Loan
Party or any bankruptcy trustee secured by a first priority Lien upon any or all
of the Collateral, whether acquired by such Loan Party prior to or after the
commencement of such Bankruptcy Case, and by its execution of this Agreement,
Trade Creditor shall be deemed to have consented to such Loan Party's or any
bankruptcy trustee's use of Collateral if and to the extent consented to by
Agent and the applicable Lenders and to any financing proposed to be provided by
Lenders (or any of them) to a Loan Party or any bankruptcy trustee that is
secured by a Lien upon any or all of the Collateral during the pendency of any
such Bankruptcy Case. Any Lien at any time acquired by Trade Creditor in any of
the Collateral, whether such Collateral is created, acquired or arises at any
time prior to or after any such Bankruptcy Case, shall be subject to all of the
terms of this Agreement and shall be subordinate in priority to all Liens at any
time granted to or obtained by Agent with respect to any such Collateral,
including Liens granted to or conferred upon Agent to secure financing in any
Bankruptcy Case.

                                       6
<PAGE>

                  (b) If the applicable Lenders consent to the sale of any of
the Collateral during any Bankruptcy Case (whether such sale is to be made
pursuant to 11 U.S.C. ss. 363, pursuant to a plan of reorganization or
otherwise), then Trade Creditor shall be deemed to have consented to any such
sale and shall, if requested to do so by Agent in connection with any such sale,
promptly execute and deliver to Agent a release of Trade Creditor's Liens with
respect to the Collateral to be sold.

                  (c) If Agent or any Lender shall be required in any Bankruptcy
Case to return, refund or repay to a Loan Party or any trustee or committee
appointed in the Bankruptcy Case any payment or proceeds of any Collateral in
connection with any action, suit or proceeding alleging that Agent or such
Lender's receipt of such payments or proceeds was a transfer voidable under
state or federal law (including the Bankruptcy Code), then Agent or such Lender
shall not be deemed ever to have received such proceeds for purposes of this
Agreement in determining whether and when all of the Senior Obligations have
been paid in full.

         8. Agreement to Release Liens. Trade Creditor agrees that it will (if
requested to do so by Agent after and during the continuance of an Event of
Default under the Senior Creditor Documents) release its Liens in any Collateral
in connection with and in order to facilitate any orderly liquidation sale of
such Collateral by any Loan Party or any bankruptcy trustee or receiver for such
Loan Party, and promptly upon the request of Agent, it will execute and deliver
such documents, instruments and agreements as are necessary to effectuate such
release and to evidence such release in the appropriate public records, provided
that the net proceeds from any such sale or other disposition are to be applied
in reduction of the Senior Obligations (with any excess after the Senior
Obligations have been paid in full to be turned over to Trade Creditor, to the
extent not otherwise prohibited by applicable law).

         9. Waiver of Marshalling; Application of Payments and Proceeds. Trade
Creditor hereby waives any right to require Agent to marshall any security or
collateral or otherwise to compel Agent or any Lender to seek recourse against
or satisfaction of the indebtedness to it from one source before seeking
recourse or satisfaction from another source. Agent shall be authorized to apply
any and all payments, collections and proceeds of Collateral received by it to
such portion of the Senior Obligations as Agent may lawfully elect consistent
with the provisions of the Senior Creditor Documents.

         10. Provisions Concerning Insurance. Proceeds of the Collateral include
insurance proceeds, and therefore the priorities set forth in paragraph 3 hereof
govern the ultimate disposition of casualty insurance proceeds. Agent shall have
the sole and exclusive right, as against Trade Creditor, to adjust settlement of
insurance claims in the event of any covered loss, theft or destruction of the
Collateral. All proceeds of such insurance shall inure to Agent to the extent of
the Senior Obligations, and Trade Creditor shall cooperate (if necessary), at
Agent's expense, in a reasonable manner in effecting the payment of insurance
proceeds to Agent. Agent shall have the right (as between the parties hereto) to
determine whether such proceeds will be applied to its claim or used to rebuild,
replace or repair the affected Collateral. If such proceeds are applied to
Senior Obligations, any proceeds remaining after payment in full of Senior
Obligations and expenses of collection, provided that Lenders' commitments to
extend further credit to or for the benefit of Loan Parties shall have

                                       7
<PAGE>

been terminated, shall be promptly remitted to Trade Creditor for application to
the Trade Obligations or to Loan Parties, as applicable.

         11. Notices. All notices, requests and demands to or upon a party
hereto shall be in writing and shall be delivered by hand, sent by certified or
registered mail, return receipt requested or by telecopier and shall be deemed
to have been validly served, given or delivered when delivered against receipt
or four (4) Business Days after deposit in the United States mail, certified,
return receipt requested, postage prepaid, or, in the case of telecopy notice,
when received at the office of the noticed party, in each case addressed as
follows:

                  (a) if to Agent:       Fleet Capital Corporation
                                         300 Galleria Parkway, Suite 800
                                         Atlanta, Georgia 30339
                                         Attention: Loan Administration Manager
                                         Telecopier No.:  (770) 859-2483

                  (b) if to Trade Creditor:
                                            ---------------------------

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

                                            ---------------------------
                                            Attention:
                                                       ----------------
                                            Telecopier No.:  (___) _______

or to such other address as each party may designate for itself by like notice
given in accordance with this paragraph. Any written notice that is not sent in
conformity with the provisions hereof shall nevertheless be effective on the
date that such notice is actually received by the noticed party. Trade Creditor
hereby agrees that any requirement for the giving of notice by Agent under the
UCC or otherwise in connection with any exercise by Agent of any of its and
Lenders' rights or remedies with respect to the Collateral shall be satisfied by
the giving of written notice at least five (5) days prior to the date on which
such rights or remedies are to be exercised by Agent, provided that nothing
herein shall be deemed to require the giving of any such notice when such notice
is not required by applicable law.

         12. No Duties Imposed Upon Agent or any Lender. The rights granted to
Agent in this Agreement are solely for its protection and nothing herein
contained imposes on Agent or any Lender any duties with respect to any of the
Collateral. None of Agent or any Lender has any duty to preserve rights against
prior parties on any instrument or chattel paper received from any Loan Party as
collateral security for any of the Senior Obligations.

         13. Relationship of Parties. This Agreement is entered into solely for
the purposes set forth above, and neither party assumes any responsibility to
the other party to advise such other party of information known to such party
regarding the financial condition of any Loan Party or regarding the Collateral,
or of any other circumstances bearing upon the risk of nonpayment of the
obligations of such Loan Party, under the Trade Creditor Documents, or the
Senior Creditor Documents. Each

                                       8
<PAGE>

party shall be responsible for managing its relationship with Loan Parties and
neither party shall be deemed the agent of the other for any purpose. Trade
Creditor, on one hand, and Agent and Lenders, on the other hand, each may alter,
amend, supplement, release, discharge or otherwise modify any terms of the Trade
Creditor Documents or of the Senior Creditor Documents, respectively, without
notice to or the consent of the other.

         14. No Debt Subordination. Nothing in this Agreement shall be construed
to be or operate as a subordination of any of the Senior Obligations to the
Trade Obligations, or vice versa.

         15. Additional Credit Extensions; Amendments to Senior Creditor
Documents; Amendments to Trade Creditor Documents. Trade Creditor acknowledges,
understands and agrees that Lenders may make loans to or for the benefit of Loan
Parties from time to time, pursuant to the Senior Creditor Documents or
otherwise, and all such loans shall constitute part of the Senior Obligations
and shall be secured by all of the Collateral, and nothing herein shall restrict
in any manner or in any way the right of Loan Parties to obtain additional
credit from Lenders or the right of Lenders to make available such additional
credit to Loan Parties as Lenders in their sole discretion may elect. Agent,
Lenders and Loan Parties may amend, modify, supplement or waive any of the
provisions of the Senior Creditor Documents without notice to or the consent of
Trade Creditor and without in any manner affecting this Agreement or any of
Agent's or any Lender's rights hereunder. Without the prior written consent of
the Lenders, neither Trade Creditor nor any of the Loan Parties may amend or
otherwise modify the terms of any Trade Creditor Document in any material
respect or in any respect that could reasonably be expected to be adverse to the
interests of the Agent and the Lenders.

         16. Indemnity. Trade Creditor agrees to indemnify, defend and hold
Agent and each Lender harmless from and against any loss, damage, cost, claim or
expense, including court costs and attorneys' fees, incurred or sustained by
Agent and such Lender in connection with any remittances of proceeds of any
Collateral made pursuant to the terms hereof from Agent to Trade Creditor, to
the extent that such remittance of proceeds subsequently is determined by a
court of competent jurisdiction to have been prohibited by applicable law,
avoidable under any insolvency law (including the Bankruptcy Code), or in
violation of the rights of any other creditor of any Loan Party when made. The
foregoing indemnity shall survive any termination of this Agreement.

         17. Independent Credit Investigations. None of the parties hereto nor
any of their respective directors, officers, agents, employees, successors or
assigns shall be responsible to the others or to any other Person for any Loan
Party's solvency, financial condition or ability to repay any of the Trade
Obligations or any of the Senior Obligations, or for statements of any Loan
Party, oral or written, or for the validity, sufficiency or enforceability of
any of the Trade Creditor Documents or any of the Senior Creditor Documents, or
the validity or priority of any liens or security interests granted by any Loan
Party to either party in connection with any of the Trade Creditor Documents or
any of the Senior Creditor Documents. Each party hereto has entered into its
agreements with Loan Parties based upon its own independent investigation, and
makes no warranty or representation to the other party nor does it rely upon any
representation of the other party with respect to matters identified or referred
to in this paragraph.

                                       9
<PAGE>

         18. No Rights Conferred Upon Loan Parties. Nothing herein shall be
construed to confer any rights upon Loan Parties. Without limiting the
generality of the foregoing, if any party hereto shall enforce its rights or
remedies in violation of this Agreement, Loan Parties shall not be authorized to
use such violation as a defense to any right or remedy exercised by such party,
nor assert such violation as a counterclaim or basis of setoff or recoupment
against such party, unless the other party hereto consents in writing and itself
asserts that the exercise of right or remedy is in violation of this Agreement.

         19. Governing Law. This Agreement shall be interpreted, and the rights
and obligations of the parties hereto determined, in accordance with the
internal laws of the State of Georgia.

         20. No Third Party Beneficiaries. Nothing contained in this Agreement
shall be deemed to indicate that this Agreement has been entered into for the
benefit of any Person other than the parties hereto.

         21. Conflict with Documents. The provisions of this Agreement are
intended by the parties to control any conflicting provisions in the Senior
Creditor Documents or the Trade Creditor Documents, including any covenants
prohibiting further borrowing or encumbrances of Collateral.

         22. Counterparts; Telecopied Signatures. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which counterparts taken together shall constitute but
one and the same instrument. Any signature delivered by a party by facsimile
transmission shall be deemed to be an original signature hereto.

         23. Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns. In no event, however, shall either party hereto transfer or assign
any Lien that it may have in any of the Collateral to any Person unless the
transferee or assignee thereof shall first agree in writing to be bound by the
terms of this Agreement the same as if an original signatory hereto.
Notwithstanding the immediately preceding sentence, any Person whose loans or
advances to Loan Parties (or either of them) hereafter are used to refinance and
pay in full the Senior Obligations shall be deemed for all purposes hereof to be
the successor to Agent, and from and after the date of any such refinancing in
satisfaction in full of the Senior Obligations such Person shall be deemed a
party hereto in the place and stead of Agent as if such Person had been the
original signatory hereto, and all loans, advances, liabilities, debit balances,
covenants and duties at any time or times owed by Loan Parties to such successor
to Agent, whether direct or indirect, absolute or contingent, secured or
unsecured, due or to become due, then existing or thereafter arising, including
any renewals, extensions, modifications, or replacements of any of the
foregoing, shall be deemed for all purposes hereunder to constitute and be
Senior Obligations.

                                       10
<PAGE>

         24. Further Assurances. Each of the parties hereto agrees to execute
such amendments to financing statements and other documents as may be necessary
to reflect of record the existence of this Agreement and the relative priorities
established pursuant to paragraph 3 hereof. Without limiting the generality of
the foregoing, Trade Creditor agrees that any UCC-1 financing statement or other
document filed of record to evidence or perfect Trade Creditor's security
interest in any of the Branded Inventory shall conspicuously state that the
security interest perfected thereby is subordinate in priority to all Liens at
any time granted to or conferred upon Agent with respect to the Trade Credit
Collateral and all other Collateral.

         25. Severability. Wherever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

         26. Entire Agreement; Amendments. This Agreement expresses the entire
understanding and agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior understandings and agreements of the
parties regarding the same subject matter. This Agreement may not be amended or
modified except by a writing signed by the parties hereto.

         27. Jury Trial Waiver. Trade Creditor and Agent each hereby waives all
rights to a trial by jury in connection with any action, suit or other
proceeding arising out of or related to this Agreement.

                      [SIGNATURES BEGIN ON FOLLOWING PAGE]

                                       11
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.

                                                FLEET CAPITAL CORPORATION
                                                ("Agent")

                                                By:
                                                   -----------------------------
                                                   Title:
                                                         -----------------------

                                                --------------------------------
                                                ("Trade Creditor")

                                                By:
                                                   -----------------------------
                                                   Name:
                                                        ------------------------
                                                   Title:
                                                         -----------------------

                                       12
<PAGE>

                          ACKNOWLEDGMENT AND AGREEMENT

         Each of the undersigned hereby accepts and acknowledges receipt of a
copy of the foregoing Lien Subordination Agreement and consents to and agrees to
be bound by all provisions thereof, including, without limitation, the
agreements between Agent, on behalf of Lenders, and Trade Creditor with respect
to the payment by each to the other of certain proceeds derived from the
liquidation of the Collateral.

         Each of the undersigned further acknowledges and agrees that the Lien
Subordination Agreement maybe modified or amended at any time or times without
notice to or the consent of any of the undersigned.

         Each of the undersigned agrees to indemnify, defend and hold Agent and
each Lender harmless from and against any loss, damage, cost, claim or expense,
including court costs and attorneys' fees, incurred or sustained by Agent and
such Lender in connection with any remittances of proceeds of any Collateral
made pursuant to the terms of the Lien Subordination Agreement from Agent to
Trade Creditor, to the extent that such remittance of proceeds subsequently is
determined by a court of competent jurisdiction to have been prohibited by
applicable law, avoidable under any insolvency law (including the Bankruptcy
Code), or in violation of the rights of any other creditor of any of the
undersigned when made. The foregoing indemnity shall survive any termination of
the Lien Subordination Agreement.

         Capitalized Terms used in this Acknowledgment and Agreement without
definition have the meaning specified in the foregoing Lien Subordination
Agreement unless the context otherwise requires.

As of _________________, 200__.

                                               AMERICAN TIRE DISTRIBUTORS, INC.
ATTEST:

------------------------------
                                               By: _____________________________
         [CORPORATE SEAL]                         Title:    ____________________

                                               THE SPEED MERCHANT, INC.
ATTEST:

-----------------------------
                                               By: _____________________________
         [CORPORATE SEAL]                         Title:    ____________________

                  [Signatures will continue on following page]

                                       13
<PAGE>

                                            T.O. HAAS HOLDING CO., INC.
ATTEST:

------------------------------
                                            By: ________________________________
         [CORPORATE SEAL]                         Title:    ____________________

                                            T.O. HAAS TIRE COMPANY, INC.
ATTEST:

------------------------------
                                            By: ________________________________
         [CORPORATE SEAL]                         Title:    ____________________

                                       14

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