Document:

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                                                                    EXHIBIT 10.1

                               THIRD AMENDMENT TO

                     BRIGHT HORIZONS FAMILY SOLUTIONS, INC.

                           1998 STOCK INCENTIVE PLAN

         This Third Amendment (this "Amendment") to the 1998 Stock Incentive
Plan (the "Plan") is hereby established by Bright Horizons Family Solutions,
Inc., a Delaware corporation (the "Company"), and adopted by its Board of
Directors as of the 28th day of March, 2001 (the "Effective Date").

                                    RECITALS

         A. The Board of Directors of the Company (the "Board") previously
approved, and the shareholders of the Company previously approved and adopted,
the Plan.

         B. The Board has deemed that it is in the best interests of the Company
to amend the Plan.

                                   AMENDMENT

         Paragraph (a) of Section 3 of the Plan is hereby deleted and replaced
with the following:

                  "(a) As of the Effective Date, the aggregate number of shares
         of Common Stock that may be issued under the Plan shall be 2,250,000
         shares. Of the total number of shares that may be issued under the
         Plan, an aggregate of 100,000 shares shall be reserved for issuance
         under Section 8 hereof, subject to increases at the discretion of the
         Board. The shares of Common Stock issuable under the Plan may consist,
         in whole or in part, of authorized and unissued shares or treasury
         shares. No officer of the Company or other person whose compensation
         may be subject to the limitations on deductibility under Section 162(m)
         of the Code shall be eligible to receive awards pursuant to this Plan
         relating to in excess of 200,000 shares of Common Stock in any fiscal
         year (the "Section 162(m) Maximum")."<PAGE>   1

                                                                   EXHIBIT 10.58

                  TRANSPORTATION MANAGEMENT SERVICES AGREEMENT
                                     BETWEEN
                            UPS LOGISTICS GROUP, INC.
                                       AND
                             TRACTOR SUPPLY COMPANY

This Transportation Management Services Agreement (the "Agreement") is made and
entered into as of the 10th day of May 2001 (the "Effective Date"), by and
between Tractor Supply Company, whose address is 320 Plus Park Blvd., Nashville,
Tennessee 37217 ("Customer"), and UPS Logistics Group, Inc., whose address is
990 Hammond Drive, Suite 400, Atlanta, Georgia 30328 ("Logistics Group").

         WHEREAS, Customer requires transportation management of its goods,
commodities or products (the "Goods"); and

         WHEREAS, Logistics Group has the capability to provide transportation
management services (the "Services") of Customer's Goods; and

         NOW, THEREFORE in consideration of the mutual covenants and conditions
contained herein, the parties agree as follows:

1.       TERM AND TERMINATION:

         1.1      Term. The term of this Agreement shall commence on the
                  Effective Date hereof, and shall continue thereafter in full
                  force and effect for a period of thirty-six (36) months.
                  Customer shall have the option of extending the initial term
                  for a period of one year, provided, however, that Customer
                  shall give Logistics Group written notice of such extension at
                  least ninety (90) days prior to the expiration of the initial
                  term; and, further provided that the parties mutually agree in
                  writing, at least sixty (60) days prior to the expiration of
                  the initial term, to all rates and charges with respect to the
                  extended term.

         1.2      Termination. Either party may terminate this Agreement on one
                  hundred eighty (180) days prior written notice, subject to the
                  remainder of this Section 1.

         1.3      Early Termination Obligations

                  1.3.1    If Customer terminates Exhibit B for any reason other
                           than a default by Logistics Group, or if Logistics
                           Group terminates Exhibit B for reason of default by
                           Customer, any time after the Effective Date, Customer
                           agrees to the early termination provisions set forth
                           in Section 3.0 of Exhibit B.

                  1.3.2    If Customer terminates Exhibit C for any reason other
                           than a default by Logistics Group, or if Logistics
                           Group terminates Exhibit C for reason of default by
                           Customer, any time after the Effective Date, Customer
                           shall be liable for the early termination costs set
                           forth in Section 3.0 of Exhibit C.

2.0      GOODS AND SERVICES:

         2.1      Description of Goods. Exhibit A hereto describes the Goods for
                  which Logistics Group shall cause transportation management
                  services to be provided pursuant to this Agreement.

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         2.2      Services to Be Performed.

                  2.2.1    Logistics Group, by and through its affiliate,
                           Worldwide Dedicated Services, Inc., agrees to provide
                           dedicated transportation services ("Dedicated
                           Services") as more fully set out in Exhibit B hereto.

                  2.2.2    Logistics Group agrees to provide transportation
                           management services ("Management Services") as more
                           fully set out in Exhibit C hereto.

3.0      RATES AND CHARGES:

         3.1      The rates and charges for the Dedicated Services are set forth
                  in Exhibit B hereto.

         3.2      The rates and charges for Management Services are set forth in
                  Exhibit C hereto.

4.0      JOINT LOGISTICS COMMITTEE; RATE REVIEW:

         4.1      Joint Logistics Committee. Logistics Group and Customer shall
                  jointly establish a committee ("the Joint Logistics
                  Committee") to review the operation of this Agreement and the
                  provision of the Services in an effort to facilitate the
                  performance of each party's obligations hereunder. The Joint
                  Logistics Committee shall comprise an equal number of
                  representatives from Logistics Group and from Customer (but no
                  more than two each) with such representatives to be nominated
                  by the relevant party from time to time to the other party in
                  writing. In addition, other representatives that the parties
                  may reasonably request shall be entitled to attend and
                  participate in meetings of the Joint Logistics Committee. The
                  initial representatives of Logistics Group to the Logistics
                  Committee shall be the General Manager of Transportation
                  Management and General Manager of Dedicated Services, and the
                  initial representatives of Customer to the Logistics Committee
                  shall be the Director of Transportation and the Vice President
                  of Logistics.

         4.2      Meetings of the Joint Logistics Committee. The Joint Logistics
                  Committee shall meet within three (3) months of the Effective
                  Date, and thereafter shall meet no less than once every three
                  (3) months in person or by telephone conference call
                  throughout the duration of this Agreement (other than where
                  the parties agree that such a periodic meeting is not
                  necessary) and at such other times as either party may
                  reasonably request.

         4.3      Changes in Operating Parameters. Customer and Logistics Group
                  acknowledge and agree that Logistics Group has calculated the
                  Rates and Charges set forth in Exhibits B and C based on and
                  in reliance of certain key assumptions ("Assumptions" or
                  "Operating Parameters") supplied to Logistics Group by
                  Customer, which Operating Parameters are set forth in such
                  Exhibits. In the event of a change in any Operating Parameter,
                  either party may propose such rate adjustment as it deems
                  reasonably necessary to respond to the Operating Parameter
                  change. The Joint Logistics Committee shall consider the
                  proposed rate adjustment and each party agrees to provide all
                  information reasonably requested by any member of the Joint
                  Logistics Committee to assist the requesting member therefor.
                  In the event that the Joint Logistics Committee is unable to
                  unanimously agree on the amount of an appropriate rate
                  adjustment (or that no such adjustment should be made) within
                  thirty (30) days following the date of their first meeting
                  with respect to such proposed rate adjustment, any member of
                  the Joint Logistics Committee may submit the matter to
                  arbitration in accordance with Section 18 hereof.

         4.4      Changed Conditions. Customer and Logistics Group acknowledge
                  that certain "Changed Conditions," could alter the Operating
                  Parameters on which the Schedule of Rates and Charges is
                  based. As used herein, a Changed Condition means the enactment
                  or promulgation of any new law, regulation or statute, the
                  repeal or judicial annulment of an existing law, regulation or
                  statute, or the imposition of new material conditions or the
                  removal of existing material conditions on the issuance or
                  renewal of any official permit, license or approval after the
                  Effective Date hereof,

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                  which (a) results in the imposition or removal of requirements
                  affecting the ability of Logistics Group to perform the
                  Service under this Agreement, (b) are substantially more or
                  less burdensome on Logistics Group than the requirements as of
                  the Effective date hereof, and (c) result in a substantial
                  decrease or increase in the Rates and Charges to which
                  Logistics Group would otherwise be entitled hereunder. If any
                  Changed Condition occurs after the Effective Date hereof,
                  either party shall have the right to propose such rate
                  adjustment as it deems reasonably necessary to preserve for
                  such party its intended benefits under this Agreement. Such a
                  review will occur at least once on or before the yearly
                  anniversary date of the term of this Agreement. The Joint
                  Logistics Committee shall consider the proposed rate
                  adjustment, and each party agrees to provide all information
                  reasonably requested by any member of the Joint Logistics
                  Committee to assist the requesting member therefor. In the
                  event that the Joint Logistics Committee is unable to
                  unanimously agree on the amount of an appropriate rate
                  adjustment (or that no such adjustment should be made) within
                  thirty (30) days following the date of their first meeting
                  with respect to such proposed rate adjustment, any member of
                  the Joint Logistics Committee may submit the matter to
                  arbitration in accordance with Section 18 hereof.

         4.5      Cost of Living Increases. Notwithstanding any other provision
                  in this Section 4, Customer understands that the cost for all
                  labor, including but not limited to managers, supervisors,
                  clerk and drivers, may be subject to an annual cost of living
                  adjustment not to exceed four and one-half percent (4.5%),
                  which increase will be mutually agreed to by Joint Logistics
                  Committee.

5.       BILLING AND PAYMENT:

         5.1      Logistics Group shall bill Customer for all Fixed, Variable
                  and Miscellaneous Charges, as indicated in Exhibit B and
                  Exhibit C attached hereto at the end of each week in which the
                  charges were incurred.

         5.2      Logistics Group shall provide weekly consolidated billings to
                  Customer for all carrier charges incurred that week.

         5.3      Customer agrees to pay the invoices as submitted and approved
                  within fifteen (15) days from date of invoice. Any dispute as
                  to the amount of the invoices shall be promptly resolved by
                  the parties. Claims for loss or damage to Goods shall not be
                  deducted from invoices, and shall be handled in accordance
                  with the provisions of Sections 18 and 20 hereof.

         5.4      If Customer fails to make timely payment of the charges as set
                  in invoices reviewed and approved for payment by Customer
                  within the grace period specified in Section 19 hereof, then,
                  in addition to any other right that Logistics Group may have,
                  Customer shall pay to Logistics Group a late payment charge at
                  the rate of one percent per month or, the highest rate allowed
                  by applicable law, on the amount outstanding and unpaid from
                  time to time, whichever is lower. The late payment charge
                  shall be calculated from the date that the unpaid charges
                  become due as outlined above and shall be compounded monthly
                  for the period during which any such charges remain unpaid.

6.       INSURANCE:

         6.1      Logistics Group shall maintain at all times during the life of
                  this Agreement insurance as provided below and shall name
                  Customer as an additional insured to the extent of indemnity
                  provided herein under its liability policies as follows:

                  6.1.1    Commercial general liability insurance including
                           premises/operations, broad form property damage,
                           independent contractors, and contractual liability
                           covering Logistics Group's obligations hereunder for
                           bodily injury and property damage, with a combined
                           single limit of not less than $1,000,000 each
                           occurrence.

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                  6.1.2    Workers' compensation insurance in statutory amounts
                           covering Logistics Group and its employees, and
                           employer's liability insurance in an amount not less
                           than $300,000 per accident/disease.

                  6.1.3    Motor cargo insurance for $100,000 to cover loss or
                           damage to Goods caused by Logistics Group's
                           negligence.

         6.2      All insurance required above shall be carried with insurance
                  companies licensed to do business in the state(s) where
                  operations are maintained. Logistics Group shall deliver to
                  Customer, upon Customer's request, certificates of insurance
                  as evidence of the required coverages. All policies shall
                  provide that such coverages under these policies shall not be
                  canceled or materially changed without at least thirty (30)
                  days prior written notice delivered to Customer.

7.0      INDEMNIFICATION:

         7.1      Claim Notices.

                  7.1.1      Any Party entitled to seek indemnification pursuant
                             to this Agreement (the "Indemnitee") must provide
                             written notice (the "Claim Notice") to the Party
                             obligated to provide indemnification (the
                             "Indemnitor") with respect to any claim, suit or
                             proceeding initiated against the Indemnitee by a
                             party other than the Indemnitor ("Third Party
                             Claim").

                  7.1.2      All Claim Notices must be delivered promptly, but
                             in no event more than thirty days (the "Notice
                             Period") following (i) the receipt of actual notice
                             of the Third party Claim by any officer, director
                             or manager of Indemnitee, or (ii) the occurrence of
                             any event that any officer, director or manager of
                             Indemnitee believes or should reasonably believe
                             could give rise to a Third Party Claim.

                  7.1.3      The failure of Indemnitee to notify Indemnitor
                             within the Notice Period shall not relieve
                             Indemnitor of any liability with respect to the
                             Third Party Claim, except to the extent the
                             Indemnitor demonstrates that the defense of the
                             Third Party Claim is materially prejudiced by such
                             failure.

                  7.1.4      The Claim Notice should state in reasonable detail
                             the facts giving rise to the Third Party Claim and
                             Indemnitee's intention to seek indemnification for
                             the Third Party Claim. If the Indemnitee wishes to
                             control the defense of the Third Party Claim, this
                             should also be stated in the Claim Notice.

         7.2      Defense of a Third Party Claim.

                  7.2.1      Upon receipt of a Claim Notice, the Indemnitor may
                             elect to assume the defense of the Third Party
                             Claim at Indemnitor's expense with counsel
                             reasonably satisfactory to the Indemnitee. The
                             Indemnitor shall promptly notify the Indemnitee in
                             writing whether it has elected to assume such
                             defense, and each party agrees to cooperate with
                             the party assuming the defense of the Third Party
                             Claim (including, without limitation, allowing and
                             directing its employees to serve as witnesses and
                             otherwise rendering such assistance as the
                             defending party may reasonably request) in such
                             defense and related negotiations (including
                             settlement negotiations).

                  7.2.2    If the Indemnitor elects to control the defense of a
                           Third Party Claim, the Indemnitee shall have the
                           right to employ separate counsel in any action or
                           claim and to participate in its defense. The fees and
                           expenses of counsel employed by Indemnitee shall be
                           at the expense of Indemnitee; provided, however, that
                           if counsel to the Indemnitor

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                           determines that it is unable to represent the
                           interests of both the Indemnitor and the Indemnitee,
                           the Indemnitee may employ separate counsel at the
                           Indemnitor's expense.

                  7.2.3    If Indemnitor assumes the defense of a Third Party
                           Claim no compromise or settlement may be effected by
                           the Indemnitor without the Indemnitee's consent
                           unless (i) there is no finding or admission of any
                           violation of law or any violation of the rights of
                           any person by Indemnitee, (ii) there is no effect on
                           any other claim that may be made by or against
                           Indemnitee, (iii) the sole relief provided is
                           monetary damages that are paid in full by Indemnitor,
                           and (iv) the compromise or settlement contains, as an
                           unconditional term thereof, the giving by the
                           claimant or the plaintiff of the Indemnitee a release
                           from all liability in respect of such Third Party
                           Claim. The Indemnitee shall have no liability with
                           respect to any compromise or settlement thereof
                           effected without its consent.

                  7.2.4    If the Indemnitor does not notify the Indemnitee
                           within fifteen (15) days after receipt of the Claim
                           Notice that Indemnitor elects to undertake the
                           defense of a Third Party Claim, the Indemnitee shall
                           have the right to defend the claim, at the expense of
                           Indemnitor, with counsel of Indemnitee's choosing.

                  7.2.5    No settlement of a Third Party Claim defended by
                           Indemnitee pursuant to this Section 7 shall be made
                           without the prior written consent of Indemnitor,
                           which consent shall not be unreasonably withheld.
                           Failure of Indemnitor to reject a settlement within
                           ten (10) days of receipt thereof shall be deemed an
                           acceptance of such settlement.

         7.3      Other Claims.

                  7.3.1    If an Indemnitee has a claim against an Indemnitor
                           that does not involve a Third Party Claim, the
                           Indemnitee shall notify the Indemnitor with
                           reasonable promptness of its claim, specifying the
                           nature of and specific basis for such claim and the
                           estimated amount of such claim.

                  7.3.2    If Indemnitor elects to satisfy the claim, the
                           Indemnitor shall remit payment for the amount of the
                           claim to the Indemnitee upon receipt of an invoice
                           therefor.

                  7.3.3    If the Indemnitor elects to dispute either the basis
                           of the claim or the amount of the claim, Indemnitor
                           shall promptly provide written notice to Indemnitee
                           setting forth the specific basis for the dispute. In
                           the event of a dispute, the Indemnitor and Indemnitee
                           shall proceed in good faith to negotiate a resolution
                           of such dispute, and if not resolved through good
                           faith negotiation, the dispute shall be resolved in
                           accordance with the dispute resolution provisions set
                           forth in Section 18 hereof.

8.       LIABILITY:

         8.1      In no event shall Logistics Group, its employees, agents,
                  subcontractors, or affiliates be liable for any loss of or
                  damage to Goods arising out or caused, directly or indirectly,
                  by an event of Force Majeure or the packing, packaging,
                  loading and/or unloading of the Goods by Customer, or any
                  other circumstance or cause that could not be prevented by its
                  respective reasonable care determined in accordance with
                  applicable law.

         8.2      For shipments of Goods not transported by Logistics Group's
                  affiliated company, WDS, the carrier of the Goods shall have
                  the risk of any loss of or damage to the Goods managed
                  pursuant to this Agreement while the Goods are in such
                  carrier's care, custody, or control on such terms and
                  conditions as may be agreed to in writing between Logistics
                  Group and the carrier. Such terms and conditions shall not be
                  materially less advantageous to the Customer than those set
                  forth in this Agreement.

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         8.3      For shipments transported by WDS, Logistics Group shall only
                  be liable to Customer for the actual loss, damage, or injury
                  to the Goods occurring while the Goods are in the possession
                  or under the control of WDS and resulting from WDS's negligent
                  acts or omissions, except to the extent that any loss or
                  damage to the Goods is caused by the acts or omissions of
                  Customer or its consignees and their employees, which loss or
                  damage will be measured by Customer's replacement cost for the
                  Goods, without markup.

         8.4      Logistics Group's maximum liability hereunder to Customer
                  shall not exceed $100,000 per occurrence for truckload (TL) or
                  WDS shipments, or exceed the declared or released value for
                  less than truckload (LTL) or parcel shipments, and Customer
                  agrees to waive the right of subrogation on behalf of its
                  insurers for any amount above foregoing limits, no matter how
                  caused.

         8.5      For claims not caused by Logistics Group's negligence,
                  Logistics Group agrees to file claims on behalf of Customer
                  with the carriers engaged under this Agreement, as further
                  described in Exhibit C hereto. Claims will be limited to the
                  values which Customer has authorized Logistics Group to
                  declare for its shipments. In no event shall Logistics Group
                  have any responsibility to pay any amounts which a carrier
                  fails or refuses to pay with respect to any carrier claim.

         8.6      Neither party shall be liable to the other party for any
                  indirect, special, punitive or consequential damages.

9.       DESIGNATED CONTACT:

         9.1      Customer and Logistics Group shall furnish to each other in
                  writing the name, address, office phone number, home phone
                  number, email address, and special access code numbers, if
                  any, of each employee, agent or representative of Customer or
                  Logistics Group who is authorized to instruct Customer or
                  Logistics Group with respect to the Services to be performed
                  pursuant to this Agreement. Such information shall be
                  continuously updated in writing to both parties.

         9.2      Logistics Group is entitled to rely on any instructions,
                  without regard to the medium in which it is received by
                  Logistics Group, which it reasonably believes have been
                  authorized by Customer in performing the Services hereunder,
                  including but not limited to the disposition of Goods.

10.0     RIGHT OF INSPECTION: Logistics Group reserves the right to open and
         inspect any carton or articles constituting Goods tendered to it for
         transportation management pursuant to this Agreement. Logistics Group
         further reserves the right to refuse transportation of any shipment
         pursuant to this Agreement which it reasonably believes is damaged or
         could cause damage to the shipment, other merchandise or the carrier's
         equipment, or which is improperly or insecurely packed or wrapped.

11.0     GOVERNING STATE LAW. This Agreement shall be governed by and construed
         in accordance with the laws of the State of Tennessee.

12.0     FORCE MAJEURE. If and to the extent that either party may be precluded
         by acts of God, authority of laws, strikes, casualties, or failure in
         electrical power, heat, light, air conditioning, or communications
         equipment, or other causes beyond its reasonable control from
         performance hereunder (a "Force Majeure Event"), such performance shall
         be excused or delayed to the extent that it is necessitated by such
         Force Majeure Event. Upon the occurrence of such a Force Majeure Event,
         the party seeking to rely on this provision shall promptly give written
         notice to the other party of the nature and consequences of the Force
         Majeure Event. A party may terminate this Agreement if a Force Majeure
         Event affecting the performance of the other party has continued
         unremedied for more than ninety (90) days; provided that such
         termination shall not be deemed a termination following a default for
         purposes of the early termination provisions

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         referred to in Section 1.3 hereof.

13.0     REPRESENTATIONS AND WARRANTIES.

         13.1     Each party represents and warrants to the other party as
                  follows: (a) the party is duly organized, validly existing,
                  and in good standing under the laws of the jurisdiction of its
                  organization; (b) the party has full power and authority to
                  execute and deliver this Agreement and to perform its
                  obligations hereunder; (c) this Agreement constitutes the
                  valid and legally binding obligation of the party, enforceable
                  in accordance with its terms and conditions; (d) neither the
                  execution and delivery of this Agreement, nor the performance
                  hereof shall (i) violate any provision of the charter, bylaws,
                  or other governing document of the party; or (ii) conflict
                  with, result in a breach of, or constitute a default under any
                  other agreement or arrangement or any law, regulation, order
                  or decree by which the party is bound; and (e) the party is
                  not obligated to pay any brokers' or finders' fee to any
                  person in connection with the negotiation and/or execution of
                  this Agreement.

         13.2     THE WARRANTIES OF THE PARTIES EXPRESSLY SET FORTH IN THIS
                  AGREEMENT ARE THE SOLE WARRANTIES MADE BY THE PARTIES AND ARE
                  IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, OR
                  STATUTORY, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF
                  MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE. IN
                  ANY JURISDICTION WHICH DOES NOT ALLOW THE EXCLUSION OR
                  LIMITATION OF IMPLIED WARRANTIES, NO IMPLIED WARRANTIES SHALL
                  EXTEND BEYOND THE TERM OF THIS AGREEMENT, TO THE MAXIMUM
                  EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY SUCH
                  JURISDICTION.

14.0     NON-WAIVER; SEVERABILITY. The parties agree that a waiver of any right
         under this Agreement by either party on any occasion will not in any
         way constitute a waiver of such right or any other right in any
         agreement on any subsequent occasion. The parties further agree that in
         the event any provision of this Agreement is determined to be invalid,
         such invalidity will not affect the validity of the remaining portions
         of this Agreement, and further agree to substitute the invalid
         provision with a provision which most closely approximates the intent
         and economic effect of the invalid provision. Acceptance by Logistics
         Group of the amounts (or lesser amounts) payable hereunder shall not be
         deemed a waiver of any default hereunder.

15.0     USE IN ADVERTISING.

         15.1     Both parties agree that neither party's corporate name or
                  logo, or the name or logo of any of its affiliated companies,
                  shall be disclosed or advertised in any manner without prior
                  written mutual consent. Notwithstanding the foregoing,
                  Customer hereby grants to Logistics Group continuing
                  permission to disclose Customer's name as a reference to any
                  current or prospective customers of Logistics Group.

         15.2     During the term of this Agreement, Customer hereby grants to
                  Logistics Group the limited, nonexclusive, nonassignable, and
                  personal right and license to use Customer's name and logo and
                  any proprietary information provided to Logistics Group
                  hereunder, in accordance with the specific requirements of
                  this Agreement, the Customer's written instructions or to the
                  extent otherwise reasonably necessary or appropriate to
                  perform the Services hereunder.

16.0     CONFIDENTIALITY.

         16.1     Confidential Information. For purposes of this Section,
                  "Confidential Information" means any information, other than
                  Trade Secrets (as defined in Section 16.2), that the
                  disclosing Party or any Affiliate thereof designates as
                  confidential, is treated by the disclosing Party as
                  confidential or proprietary, or is subject to efforts by the
                  disclosing Party or its Affiliates, which are reasonable under
                  the circumstances to maintain its secrecy including, without
                  limitation, the contents of this Agreement, the business
                  processes or customers of the disclosing Party or its
                  Affiliates and any and all additional confidential information
                  of the disclosing Party that the receiving Party

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                  becomes aware as a result of the receiving Party's access to
                  the disclosing Party's facilities or business operations. The
                  term Confidential Information shall include (i) any notices
                  given under this Agreement and not only written information
                  but information transferred orally, visually, electronically
                  or by any other means, and (ii) all information that has been
                  disclosed to either Party by a third party that the receiving
                  Party is obligated to treat as confidential or secret.

         16.2     Trade Secrets. For purposes of this Section, "Trade Secrets"
                  means information, without regard to form, including, but not
                  limited to, technical or non-technical data, a formula, a
                  pattern, a compilation, a program, a device, a method, a
                  technique, a drawing, a process, financial data, financial
                  plans, product plans, or a list of actual or potential
                  customers or suppliers which is not commonly known by or
                  available to the public and which information (a) derives
                  economic value, actual or potential, from not being generally
                  known to, and not being readily ascertained by proper means
                  by, other persons who can obtain economic value from its
                  disclosure or use, and (b) is the subject of efforts that are
                  reasonable under the circumstances to maintain its secrecy.

         16.3     Exclusions. For the avoidance of doubt, Confidential
                  Information and Trade Secrets (collectively, "Protected
                  Information") shall not include:

                  16.3.1   Information that is in the public domain at the date
                           of this Agreement;

                  16.3.2   Information that subsequently comes into the public
                           domain, otherwise than as a result of a breach of
                           this Agreement, but only after it has come into the
                           public domain;

                  16.3.3   Information which the receiving Party obtains from a
                           third party who, to the knowledge of the receiving
                           Party, is not under any confidentiality obligation to
                           the disclosing Party respecting such information;

                  16.3.4   Information which the receiving Party at the time of
                           disclosure already has in its possession and which is
                           not subject to any obligation of secrecy on its part
                           to the other Party; or

                  16.3.5   Information which the receiving Party can show to
                           have been independently developed by employees of the
                           receiving Party who had no access to the information
                           disclosed by the disclosing Party.

         16.4     Obligation of Confidentiality. In order to protect the
                  Protected Information received by it relating to the other
                  Party (or their respective Affiliates ) each Party must (i)
                  exercise at a minimum the same care it would exercise to
                  protect its own information (ii) only use the Protected
                  Information for the purposes contemplated by this Agreement,
                  and (iii) not use, disclose, reproduce, distribute, or
                  otherwise disseminate such Protected Information, to any
                  person other than in the case of Logistics Group, any third
                  parties engaged by Logistics Group to provide Services or a
                  portion of the Services, with such disclosure being limited to
                  the extent required for such Parties to provide such Services,
                  except with the prior written approval of the other Party. Any
                  and all reproductions of Protected Information must
                  prominently contain a confidentiality legend.

         16.5     Compelled Disclosure. The obligations contained in this
                  Section 16 shall not apply to any Protected Information, where
                  either Party, or any person to whom it has transmitted
                  Protected Information, becomes legally required to disclose
                  any of the Protected Information received but the legally
                  compelled Party shall provide the other Party with prompt
                  written notice of that requirement so that the other Party may
                  seek a protective order or other appropriate remedy but shall
                  not be obligated to delay disclosure. The Party legally
                  required to disclose Protected Information, shall only
                  disclose that portion of the Protected Information which, in
                  the written opinion of its legal counsel, is required to
                  disclose.

                                     Page 8
<PAGE>   9

         16.6     Disclosure to Representatives. Each Party also agrees that it
                  shall only disclose the Protected Information to its officers,
                  directors, employees, agents and/or independent contractors
                  ("Representatives") on a need-to-know basis and, in the case
                  of independent contractors or other third parties, only after
                  such third parties have agreed to be bound by obligations of
                  confidentiality substantially similar to those set forth in
                  this Section 16.

         16.7     Other Limited Disclosure. If a Party wishes to disclose
                  Protected Information to a bona fide prospective purchaser of
                  its business, or any part of its business which supplies or
                  receives Services, it may disclose relevant Protected
                  Information to the financing sources and/or the professional
                  advisers of such prospective purchaser provided that, prior to
                  any such disclosure, the potential purchaser, as well as its
                  financing sources and professional advisors, agree to be bound
                  by obligations of confidentiality substantially similar to
                  those set forth in this Section 16 with such disclosures to be
                  made only on a need-to-know basis for purposes of evaluating
                  the transaction.

         16.8     Rights and Remedies.

                  16.8.1   If either Party should breach or threaten to breach
                           any of the provisions of this Section 16, the
                           non-breaching Party, in addition to any other
                           remedies it may have at law or in equity, will be
                           entitled to a restraining order, injunction, or other
                           similar remedy in order to specifically enforce the
                           provisions of this Section 16. Each Party
                           specifically acknowledges that money damages alone
                           would be an inadequate remedy for the injuries and
                           damage that would be suffered and incurred by the
                           non-breaching Party as a result of a breach of any of
                           the provisions of this Section 16. In the event that
                           either Party should seek an injunction hereunder, the
                           other Party hereby waives any requirement for the
                           submission of proof of the economic value of any
                           Protected Information or the posting of a bond or any
                           other security. In the event of a dispute between the
                           Parties with respect to a breach of Section 16, the
                           non-prevailing Party shall pay all costs and
                           expenses, including, but not limited to, reasonable
                           attorneys' fees, associated with resolving the
                           dispute.

                  16.8.2   The receiving Party shall notify the disclosing Party
                           immediately upon discovery of any unauthorized use or
                           disclosure of Protected Information, or any other
                           breach of Section 16 by the receiving Party or any
                           Representative of the receiving Party, and will
                           cooperate with the disclosing Party in every
                           reasonable way to help the disclosing Party regain
                           possession of its Protected Information and prevent
                           its further unauthorized use or disclosure. The
                           receiving Party shall be responsible for the acts of
                           any Representative that are in violation of this
                           Section 16.

         16.9     Use of Residual Information. Notwithstanding anything herein
                  to the contrary, either Party may disclose, publish,
                  disseminate, and use Residual Information (as defined below)
                  learned from the other Party without limitation or restriction
                  of any type; provided, however, that neither Party shall
                  disclose, publish, or disseminate (i) the source of Residual
                  Information, (ii) any financial, statistical or personnel
                  data, or (iii) the business plans of the other Party. Neither
                  Party shall have an obligation to limit or restrict the
                  assignment of their Representatives who have had access to the
                  other Parties Protected Information or to pay royalties for
                  any work resulting from the use of Residual Information.
                  However, the foregoing shall not be deemed to grant to either
                  Party a license under the other parties intellectual property.
                  For purposes of this Section, "Residual Information" means
                  Protected Information in intangible form, including ideas,
                  concepts, know-how and techniques, retained in the memory of
                  Representatives of the receiving Party who have had access to
                  such information in accordance with the terms of this
                  Agreement.

         16.10    No Grant of Rights. All Protected Information is and shall
                  remain property of the disclosing Party. By disclosing
                  Protected Information to the receiving Party, the disclosing
                  Party does not grant any express or implied rights or license
                  to the receiving Party to or under any patents, patent
                  applications, inventions, copyrights, trademarks, trade secret
                  information, or other intellectual

                                     Page 9
<PAGE>   10

                  property rights heretofore or hereafter possessed by the
                  disclosing Party.

         16.11    No Warranties. NO WARRANTIES ARE MADE BY EITHER PARTY WITH
                  RESPECT TO THE PROTECTED INFORMATION. ALL PROTECTED
                  INFORMATION DISCLOSED HEREUNDER IS PROVIDED "AS IS." THE
                  DISCLOSING PARTY ACCEPTS NO RESPONSIBILITY FOR ANY EXPENSES,
                  LOSSES OR ACTIONS INCURRED OR UNDERTAKEN BY THE RECEIVING
                  PARTY AS A RESULT OF ITS USE OF SUCH CONFIDENTIAL INFORMATION.

         16.12    Post-Termination Obligations. Following the termination of the
                  Agreement, the receiving Party must, within ten (10) business
                  days following receipt of a written request from the
                  disclosing Party, deliver to the Disclosing Party all tangible
                  materials containing or embodying the Disclosing Party's
                  Protected Information or, at the disclosing Party's option,
                  certify that all such materials in the receiving Party's
                  possession have been destroyed.

         16.13    Survival of Confidentiality Restrictions. The covenants of
                  confidentiality set forth in this Section 16 will (i) apply
                  after the Effective Date to all Protected Information
                  disclosed to the receiving Party before and after the
                  Effective Date, and (ii) continue and must be maintained from
                  the Effective Date through the termination of the Agreement
                  and (a) with respect to Trade Secrets, at any and all times
                  after the termination of the Agreement during which such Trade
                  Secrets retains their status as a "trade secret" under
                  applicable law; and (b) with respect to Confidential
                  Information, for the shorter of a period equal to three (3)
                  years after termination of the Agreement, or until such
                  Confidential Information no longer qualifies as confidential
                  under applicable law.

17.0     INDEPENDENT CONTRACTOR. Logistics Group shall act as an independent
         contractor under this Agreement. It shall perform its obligations under
         this Agreement using its own employees or agents. It shall decide on
         the manner and means of accomplishing those obligations and shall
         direct, control and supervise its employees. It shall comply with all
         payroll tax, withholding, social security, unemployment and related
         employer obligations applicable to it. Logistics Group shall not hold
         itself out as an agent of or in a joint venture with Customer, and
         Logistics Group shall have no authority to act on behalf of Customer
         except to the extent necessary to accomplish its obligations under this
         Agreement.

18.0     DISPUTE RESOLUTION.

         18.1     The parties shall use reasonable efforts to resolve any
                  dispute, claim, or question relating to this Agreement or the
                  breach thereof. To this effect, the parties shall consult and
                  negotiate with each other in good faith and, recognizing their
                  mutual interests, attempt to reach a fair and equitable
                  resolution satisfactory to both parties.

         18.2     If one party gives written notice to the other of any such
                  dispute relating to this Agreement or the breach hereof, then
                  the Project or Operations Managers from each party shall meet
                  no later than five (5) days after the date of such notice is
                  given and shall negotiate in good faith and use their best
                  efforts to reach, within ten (10) days after date of
                  commencement of such meeting, a mutually agreeable resolution
                  of the dispute or breach pursuant to the terms and conditions
                  of this Agreement.

         18.3     If such meetings do not resolve the dispute or breach to the
                  satisfaction of both parties within the initial 10-day period
                  provided above, then the dispute shall be referred to the
                  Joint Logistics Committee at its next meeting. The Joint
                  Logistics Committee shall meet at least once in person (or its
                  members shall all at least make themselves reasonably
                  available for such a meeting) within ten (10) days after the
                  expiration of such initial 10-day period or as otherwise
                  mutually agreed, and shall negotiate in good faith and use
                  their best efforts to resolve the dispute or breach.

         18.4     Except for claims resulting from alleged breaches of the
                  confidentiality obligations hereunder or the infringement of
                  patents or trademarks, any controversy or claim arising out of
                  or relating to

                                     Page 10
<PAGE>   11

                  this Agreement, or the breach thereof, shall be settled by
                  arbitration administered by the American Arbitration
                  Association, at a mutually agreed upon location, in accordance
                  with its then applicable commercial arbitration rules or as
                  otherwise mutually agreed. Both parties shall be bound by the
                  arbitration decision, and judgment on such decision may be
                  entered in any federal or state court of competent
                  jurisdiction.

19.0     DEFAULT. If either party shall fail to perform the obligations imposed
         upon it by this Agreement, the other party shall give the defaulting
         party written notice, stating specifically the cause for which the
         notice of default is given. If, within a period of thirty (30) days
         after such notice with respect to non-monetary obligations and fifteen
         (15) days after such notice with respect to monetary obligations, the
         defaulting party does not with diligence remove and remedy the default,
         then the party not in default may terminate this Agreement immediately
         by written notice. During any period when a default has occurred and is
         continuing, the non-defaulting party may, but shall not be obligated
         to, take such steps as it reasonably deems necessary to mitigate the
         damages caused by such default. The right of termination by the
         non-defaulting party shall be in addition to all of its other rights
         and remedies available at law and in equity.

20.0     NOTICE OF LOSS OR DAMAGE TO GOODS.

         20.1     Customer must give Logistics Group written notice of a claim
                  for any loss or damage to Goods. Such claim must be made
                  within thirty (30) days after Customer is given written notice
                  by Logistics Group that loss or damage to the Goods has
                  occurred or Customer otherwise becomes aware that Goods have
                  been damaged, whichever is sooner, setting out a description
                  of the Goods, Customer's replacement costs, and any other
                  information that Logistics Group may reasonably request.

         20.2     Logistics Group will pay, decline, or make a firm compromise
                  settlement offer in writing to Customer within thirty (30)
                  days after receipt of the claim.

         20.3     Logistics Group shall be entitled to request, and if so
                  requested, Customer shall give to Logistics Group, proof of
                  the cost of the Goods that are the subject of any claim.

21.0     TAXES. Customer agrees to pay and indemnify and hold Logistics Group
         harmless from and against all sales, personal property, gross receipts,
         excise, franchise, and business taxes imposed by any foreign, federal,
         state or local government or taxing authority with respect to the
         services performed by Logistics Group under this Agreement, except to
         the extent of any taxes based on the net income of Logistics Group
         arising out of any transaction under this Agreement. Tax liability
         shall include penalties, fines or interest thereon unless such
         penalties, fines or interest are incurred as a result of Logistics
         Group's failure to properly and timely comply with any tax or other
         similar law applicable to Logistics Group through no fault of Customer.
         This Section 22 does not apply to fuel taxes and third structure taxes
         for which Logistics Group is responsible in accordance with Exhibit B,
         Dedicated Services.

22.0     ASSIGNMENT.

         22.1     The rights and obligations of the parties under this Agreement
                  may not be transferred or assigned to a third party or heirs
                  by either party without the prior written consent of the other
                  party. However, Logistics Group may transfer all or part of
                  its rights and/or obligations under this Agreement to one or
                  more of it affiliates upon prior written notice to Customer,
                  and such transfer will become effective immediately, unless
                  legitimate written objections are made by Customer within five
                  (5) business days of notification.

         22.2     Any subcontracting of the Services by Logistics Group shall
                  not be deemed as an assignment.

23.0     NOTICES. Any notice required or permitted to be given hereunder shall,
         except where specifically provided otherwise, be given in writing to
         the person listed below by personal delivery, UPS Next Day Air(R) or
         other reputable overnight courier service, or UPS(R) Document
         Exchange(SM) service, such as UPS

                                     Page 11
<PAGE>   12

         Online(R) Courier(SM) or a successor service ("UPS(R) Document
         Exchange(SM)"). The date of such notice shall be deemed as follows: the
         date upon which such notice is so personally delivered; if by UPS Next
         Day Air(R) or other courier service, the date of receipt at the
         designated address; or if by UPS(R) Document Exchange(SM), the date of
         delivery, irrespective of the date appearing thereon:

                  To Logistics Group:

                  Susan L. Sullivan
                  Contracts Manager
                  990 Hammond Drive, Suite 400
                  Atlanta, GA  30328
                  Phone: 770/206-4208
                  Fax:  770/206-4444
                  Email: slsullivan@upslogistics.com

                  To Customer:

                  William B. Orellana
                  Director, Corporate Transportation
                  Tractor Supply Company
                  320 Plus Park Blvd.
                  Nashville, Tennessee  37217
                  Phone:  615/366-4617
                  Fax:  615/324-4101
                  Email: borellana@tractorsupply.com

24.0     SOLICITATION OF PERSONNEL. During the term of this Agreement and for a
         period of two (2) years after the expiration or termination thereof,
         neither party to this Agreement (including the affiliates, successors
         and assigns of each party) shall Actively Solicit the employment of any
         employee of the other party, which employee was engaged in the
         performance of this Agreement. For purposes of this Agreement,
         "Actively Solicit" means to initially call or to initiate contact in
         any other manner with an employee of the other party for the purpose of
         inducing such employee to leave his or her present position, but such
         term shall not include as wrongful any contact with, interview or
         hiring of those employees who (a) have answered standard
         advertisements, (b) have already resigned their positions without
         inducement by the other party, or (c) initiate the contact with the
         other party regarding employment with that party.

25.0     HAZARDOUS SUBSTANCES.

         25.1     For purposes of this agreement, "Hazardous Substances" shall
                  mean any hazardous substance, material, pollutant,
                  contaminant, petroleum, used oil or used antifreeze, or any
                  fraction thereof which may be incidentally contained in the
                  Goods, as such terms are defined under applicable federal,
                  state, or local statutes, regulations, or ordinances.

         25.2     Logistics Group reserves the right to refuse Hazardous
                  Substances for transportation if, in its reasonable
                  determination, it cannot safely transport such Hazardous
                  Substances in accordance with all applicable federal and state
                  laws and regulations. If Logistics Group accepts for
                  transportation Hazardous Substances, including but not limited
                  to hazardous materials as defined by the U.S. DOT, such
                  Hazardous Substances must be accompanied by a full written
                  declaration of their nature and contents, and be properly and
                  safely packed as directed by Customer in accordance with all
                  federal and state laws and regulations. Customer warrants that
                  the Hazardous Substances will be fit and safe to be carried in
                  the condition in which they are tendered for transportation.

         25.3     Logistics Group reserves the right to take whatever action it
                  reasonably deems necessary, at Customer's expense, in the
                  absence of prior written notice from Customer, if it
                  reasonably suspects that any of Customer's Hazardous
                  Substances may become a danger to any other goods handled by
                  Logistics Group or freight in transit, or to be moved in
                  transit, or may become a danger to

                                     Page 12
<PAGE>   13

                  Logistics Group's equipment, property, its employees, servants
                  or agents. Logistics Group agrees that it will use all
                  reasonable efforts to notify Customer's designated hazardous
                  materials compliance officer before taking any such action and
                  to coordinate its actions with all reasonable directions and
                  requests of such officer.

         25.4     Customer does not expect, and this Agreement does not
                  contemplate, that Logistics Group will arrange for the pick-up
                  or transportation of any hazardous waste as defined in the
                  Resource Conservation and Recovery Act ("RCRA") or any other
                  federal, state or local laws or regulations governing the
                  transportation of hazardous waste.

         25.5     All title, risk of loss, and other incidents of ownership to
                  the Hazardous Substances, in relation to the services
                  performed in accordance with this Agreement, shall at all
                  times be vested in Customer.

         25.6     Customer assumes full responsibility for and shall indemnify,
                  defend, and hold harmless Logistics Group, its carriers, and
                  the directors, officers, employees and agents, and all persons
                  acting on behalf of each of those companies, from and against
                  any and all losses, claims, obligations, liens, encumbrances,
                  liabilities, penalties, causes of action, damages, costs,
                  attorney fees, and expenses ("Losses") in connection with
                  Logistics Group's handling of Hazardous Substances in
                  accordance with this Agreement, including, without limitation,
                  injury, disease or death of persons and/or damage to or
                  destruction of any property or contamination of or adverse
                  effect on humans, animals, aquatic life, or the environment,
                  including (a) any contamination, damage or destruction to
                  Logistics Group's facilities, caused by or connected with any
                  Hazardous Substances generated from the Goods; (b) any act or
                  omission of Customer relative to the management of said
                  Hazardous Substances; and (c) any breach by Customer of any of
                  the terms and provisions of this Section; provided, however,
                  that the foregoing obligation of Customer shall not apply to
                  the extent such Losses are due to or arise from the negligent
                  act(s) or omission(s) to act or intentional misconduct of
                  Logistics Group, its carriers, including but not limited to
                  United Parcel Service, Inc., and the directors, officers,
                  employees and agents and all persons acting on behalf of those
                  companies ("Logistics Group Affiliates").

26.0     INTELLECTUAL PROPERTY RIGHTS.

         26.1     Logistics Systems. Logistics Group may deem it necessary, in
                  the course of performing the Services, to use certain
                  information systems, such as, but not limited to, Logistics
                  Group's proprietary software and computer systems (such
                  information systems being the "Logistics Systems"). For the
                  duration of this Agreement Logistics Group hereby grants to
                  the Customer non-exclusive, royalty free, worldwide license to
                  use the Logistics Systems. Customer agrees it will not sell,
                  copy in whole or in part, except for an archival copy or
                  copies made in the course of automatic backups, modify,
                  reverse engineer, decompile or dissemble the Logistics
                  Systems. Customer shall restrict access by Customer's
                  employees and agents to the Logistics Systems such that only
                  those employees and agents who are authorized by Logistics
                  Group to use the Logistics Systems are granted access thereto.
                  Logistics Systems are owned by Logistics Group or its
                  suppliers who shall at all times retain all rights, title and
                  interest therein. Upon the effective date of termination of
                  this Agreement, Customer's license to use the Logistics
                  Systems shall automatically terminate unless such license is
                  expressly extended by Logistics Group. Customer shall certify
                  in writing to Logistics Group that no other copies of the
                  Logistics Systems, or any portion thereof, remain in
                  Customer's possession.

         26.2     Intellectual Property Rights of Logistics Group. Nothing in
                  this Agreement shall be construed as granting to Customer any
                  rights to the Logistics Systems except the license rights
                  granted in Section 26.1 above or otherwise pursuant to this
                  Agreement.

         26.3     Work Product.

                                     Page 13
<PAGE>   14

                  26.3.1   Logistics Group acknowledges and agrees that work
                           product that Logistics Group creates as a result of
                           this Agreement or in performing the Services under
                           this Agreement to the extent such work product is
                           specifically commissioned and paid for by Customer or
                           otherwise incorporates Customer's Protected
                           Information (the "Customer Work Product") shall be
                           "work made for hire" within the meaning of the United
                           States Copyright Act and as such shall be and remain
                           the exclusive property of Customer. Without limiting
                           the foregoing, to the maximum extent permitted by
                           applicable law, all data, information and reports
                           (and all rights therein and thereto, including
                           copyrights), whether produced by or as a result of
                           the performance of Logistics Group of its
                           obligations, to the extent they contain information
                           provided by Customer to Logistics Group regarding
                           Customer's (i) purchase, transportation, handling,
                           storage, sale or other disposition of Goods, (ii)
                           management practices and policies, or (iii) financial
                           position or results, shall be the exclusive property
                           of Customer. Upon termination of this Agreement for
                           any reason, Logistics Group agrees to turn over all
                           Customer Work Product then in its possession or
                           control to Customer.

                  26.3.2   Customer acknowledges and agrees that Logistics Group
                           shall own all other work product that Logistics Group
                           creates as a result of this Agreement or in
                           performing the Services under this Agreement. Without
                           limiting the foregoing, to the maximum extent
                           permitted by applicable law, the Logistics Systems,
                           and all specifications, programs, source code, object
                           code, algorithms, documentation, diagrams and flow
                           charts and any other tangible or intangible machine
                           readable or human readable materials of any type
                           whatsoever (and all rights therein and thereto,
                           including copyrights), whether produced by or as a
                           result of the performance of Logistics Group of its
                           obligations, which are incorporated in or related to
                           the Logistics Systems, or development thereof, shall
                           be the exclusive property of Logistics Group,
                           excluding only the Customer Work Product. As of the
                           moment of creation of such Logistics Systems, or any
                           phase of the development thereof, Logistics Group
                           shall have the sole right, title and interest of any
                           kind, nature or description in and to such Logistics
                           Systems, including copyrights. Except for the license
                           right granted in Section 27.1, no rights of any kind
                           to the Logistics Systems, including but not limited
                           to use, license or ownership rights, are conveyed to
                           Customer by Logistics Group. Customer shall not copy,
                           sell, publish, disclose, display, reverse engineer,
                           use for its own purposes or make available to any
                           third party any of content of the Logistics Systems
                           in whatever form or reproduction, without the prior
                           written consent of Logistics Group.

         26.4     Individual Property. All other data, specifications, computer
                  programs, documentation and other materials that are (i)
                  developed or provided by either Party, (ii) not described in
                  Sections 26.1, 26.2, or 26.3 above and (iii) utilized in
                  performing this Agreement ("Individual Property") shall be and
                  remain the property of the developing or providing Party and
                  may not be sold, transferred, disseminated, or conveyed by the
                  other Party to any other entity or used other than in the
                  performance of this Agreement (or any resulting agreement)
                  without the express written permission of the
                  developing/providing Party. Unless otherwise agreed between
                  the Parties, all such Individual Property shall be returned to
                  the developing/providing Party by the other Party promptly
                  upon termination of this Agreement, or as soon thereafter as
                  practicable.

         26.5     This Section shall survive termination or expiration of this
                  Agreement.

27.0     CURRENCY FLUCTUATION.

         27.1     Logistics Group will bill all service fees ("Service Fees")
                  under this Agreement in U.S. dollars.

         27.2     The currency exchange rate ("Billing Exchange Rate") will be
                  determined by reference to The Wall Street Journal on the last
                  business day of each month. Logistics Group will apply the
                  Billing

                                     Page 14
<PAGE>   15

                  Exchange Rate to the foreign currency fee schedule to
                  determine the U.S. Dollar invoice amounts of the Service Fees.
                  Logistics Group will be responsible for administering and
                  reviewing the currency conversion with Customer having the
                  right to review all conversions. Logistics Group will include
                  on each invoice the Billing Exchange Rate used to determine
                  the conversion.

28.0     LICENSES. Except as may be otherwise provided in this Agreement,
         Logistics Group, at its sole cost and expense, shall procure and
         maintain all licenses and permits and pay all taxes, including receipts
         taxes, required by any local, state, or federal authorities associated
         with the Services performed hereunder.

29.0     SHARED SAVINGS PROGRAM: Logistics Group agrees to guarantee to Customer
         certain transportation cost savings, as more fully set out in Exhibit B
         (Section 6.0) and Exhibit D. In consideration of these guarantees,
         Customer agrees to participate in the Shared Savings Program as more
         fully set out in Exhibit E.

30.0     ENTIRE AGREEMENT AND AMENDMENTS. This Agreement and any attachment
         hereto set forth the full and complete understanding of the parties
         with respect to the matters herein, and each supersedes any and all
         agreements and representations between the parties made or dated prior
         to the Effective Date. This Agreement can only be modified or amended
         in writing and signed by each of the parties.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their authorized representatives as of the Effective Date.

<TABLE>
<S>                                            <C>
UPS LOGISTICS GROUP, INC.                      TRACTOR SUPPLY COMPANY

By: /s/ James P. Thompson                      By: /s/ Larry Goldberg
    ---------------------------------------       ------------------------------

Name: James P. Thompson                        Name: Larry Goldberg
      -------------------------------------          ---------------------------

Title: Sr. VP & COO Transportation Services    Title: Vice President-Logistics
       ------------------------------------          ---------------------------
</TABLE>

                                     Page 15
<PAGE>   16

                                    EXHIBIT A

                              DESCRIPTION OF GOODS

The Goods to be tendered under this Agreement include the following:

Animal and pet products, lawn and garden products, light truck and towing
equipment, general maintenance products and work ware including clothing and
boots.

                                     Page 16
<PAGE>   17

                                    EXHIBIT B
                     TO TRANSPORTATION MANAGEMENT AGREEMENT
                                     *******
                               DEDICATED SERVICES

1.0      SHIPMENTS

         1.1      Subject to the terms and conditions contained in this Exhibit
                  and the applicable Schedules, Customer agrees to tender to
                  Logistics Group such Goods as Customer in its sole discretion
                  may determine for transportation by Logistics Group to points
                  identified in the applicable Schedules, and Logistics Group
                  agrees to accept and deliver the Goods promptly and
                  efficiently at Customer's direction in accordance with the
                  rates and charges set forth in the applicable Schedules.
                  Customer shall designate the point of origin and destination
                  for each shipment and shall stipulate the point or points
                  where stop-offs, if any, shall be made for partial unloading.
                  Such designation shall be shown on Customer's bill of lading
                  to be provided to Logistics Group.

         1.2      Each shipment shall be evidenced by a receipt in the form
                  specified by Customer, signed by both Logistics Group and the
                  consignee, or as otherwise directed by Customer. The receipt
                  shall specify the kind and quantity of Goods that Logistics
                  Group received and delivered at each loading and unloading
                  point.

2.0      EQUIPMENT

         2.1      Logistics Group agrees to provide and keep available during
                  the term of this Exhibit those vehicles specified in the
                  applicable Schedule for the transportation of the Goods.
                  Execution of a Schedule hereto shall constitute Customer's
                  authorization to Logistics Group to acquire and/or transfer
                  for use under the applicable Schedule the vehicles listed
                  therein. Such vehicles shall be collectively referred to in
                  this Exhibit as the "Equipment." Customer agrees to compensate
                  Logistics Group for providing and keeping the Equipment
                  available solely and exclusively for the movement of the Goods
                  during the term of this Exhibit and pursuant to the applicable
                  Schedule.

         2.2      Should any of the Equipment not be available due to breakdown
                  or preventive maintenance servicing, Logistics Group will
                  provide suitable substitute equipment (within four hours after
                  notification) at no additional cost to Customer.

         2.3      Logistics Group shall, during the term of this Exhibit,
                  maintain the Equipment in good repair, mechanical condition
                  and appearance, and furnish all tires and other parts required
                  for the safe and efficient operation and maintenance of the
                  Equipment. Logistics Group shall pay all expenses, including
                  the expense of road service and repair, in connection with the
                  use and operation of the Equipment, unless otherwise specified
                  in a Schedule.

         2.4      Should Logistics Group and Customer determine that Customer
                  requires Equipment in addition to that set forth in any
                  Schedule ("Extra Equipment") for Logistics Group's performance
                  of Services, the Extra Equipment charges shall be as set forth
                  in an amended Schedule agreed to by Logistics Group and
                  Customer.

         2.5      Customer acknowledges that Logistics Group may make deliveries
                  on Customer's behalf to locations that are unattended by the
                  consignee, or which otherwise will not have authorized persons
                  available to sign the delivery document for the Goods at time
                  of delivery. Logistics Group shall only be liable for the loss
                  or damage to any Goods once the Goods have been delivered to
                  any location as directed by Customer if such loss is the
                  direct result of Logistics Group's negligence or willful
                  misconduct.

                                     Page 17
<PAGE>   18

         2.6      Logistics Group shall follow Customer's reasonable directives
                  with respect to the appearance of the Equipment, including,
                  without limitation, by displaying Customer's name and logo on
                  the Equipment in such manner as Customer may from time to time
                  reasonably request.

3.0      EARLY TERMINATION. If Customer terminates this Exhibit for any reason
         other than a default by Logistics Group, or if Logistics Group
         terminates this Exhibit for reason of a default by Customer, any time
         after the Effective Date, Customer will be responsible to Logistics
         Group for the unexpired portion of the cost of any permits, bonds,
         taxes, and unusable licenses associated with the Equipment identified
         on Schedule "A", and the cost for removal of any customized lettering
         or identification marking from the Equipment. Customer shall have the
         option to purchase the Equipment at the actual book value ("Book
         Value") established by the lessor or title holder of the Equipment (the
         "Lessor"). If Customer does not exercise this option, Logistics Group
         agrees to use all reasonable commercial efforts to redeploy the
         Equipment in its business. If Logistics group is unable to redeploy the
         Equipment, Customer agrees to pay Logistics Group for any "loss" on the
         Equipment. For purposes of this Agreement, any such "loss" shall be
         equal to the difference in the actual amount received for the sale of
         the Equipment by the Lessor and the Book Value of the Equipment, as
         determined by the Lessor, at the time the Equipment is sold to a third
         party.

4.0      OPERATING PARAMETERS. The following Operating Parameters shall apply to
         all Schedules hereto, unless otherwise provided in a Schedule.

         4.1      Logistics Group to Provide:

                  4.1.1    Drivers who meet all legal and regulatory
                           requirements

                  4.1.2    All fuel, tractor maintenance, and road services

                  4.1.4    Benefits, workers' compensation, holiday, vacation
                           pay and payroll taxes for Logistics Group employees

                  4.1.5    Cost for third-structure and out-of-balance fuel tax

                  4.1.6    One full-time National Account Manager (who will be
                           employed for Dedicated and Transportation Management
                           Services)

                  4.1.7    Load securing equipment such as load restraints

         4.2      CUSTOMER TO PROVIDE:

                  4.2.1    Trailers and trailer maintenance

                  4.2.2    Loading of trailers for outbound

                  4.2.3    Location to store trailers when not in use

                  4.2.4    Required documentation for pick-up, transport, and
                           delivery

                  4.2.5    Tolls, scale fees and lumper fees (subject to
                           Customer's prior approval)

                  4.2.6    Material handling equipment necessary for loading and
                           unloading at crossdock facilities and Customer's
                           retail locations

                  4.2.7    Customer will provide electronic order entry
                           as necessary

                  4.2.8    Utilities and maintenance for Customer's
                           facility

                  4.2.9    On-site office space for Logistics Group
                           employees

         4.3      OPERATIONAL ASSUMPTIONS

                  4.3.1    Loads are multiple stops

                  4.3.2    Freight is palletized and loose

                  4.3.3    Each stop is allotted a one-hour period

                  4.3.4    The data provided by Customer was accurate and
                           representative of its transportation needs at the
                           time of issuance.

                  4.3.5    Drivers will operate within the legal limits as
                           prescribed by state and federal agencies

                  4.3.7    Driver and tractor will be available to Customer as
                           follows:

                           -        Truck is available to dispatch 24 hours a
                                    day Sunday through Saturday

                           -        System to operate 52 weeks per year

                           -        Delivery windows are 24 hours per day Sunday
                                    through Saturday

                                     Page 18
<PAGE>   19

                           -        Drivers will be responsible for unloading
                                    trailers at Customer's retail stores in the
                                    usual and customary manner

                           -        Tractors rates based on a three-year term

5.0      SUPPLEMENTAL CHARGES: In addition to the rates and charges set forth in
         the Schedules, Logistics Group shall, and Customer agrees to pay, the
         following supplemental charges, when applicable:

         5.1      Fuel is included and pegged at ****** per gallon. Any increase
                  or decrease in fuel charges (including all applicable taxes)
                  will be billed or credited to Customer. Fuel will be
                  reconciled on a monthly basis.

         5.2      Additional tractors: ****** per tractor for each day in use

         5.3      Additional trailers:  ****** per day for each trailer obtained
                  by Logistics Group

         5.4      Additional drivers or clerks: ****** per day per driver or
                  clerk, plus applicable charges as stated in the variable
                  charges section of the Schedules attached hereto, subject to
                  Logistics Group availability; if not available, to a mutually
                  acceptable amount agreed to by the parties.

         5.5      Permits, licenses, and heavy vehicle use, excise, and personal
                  property taxes which exceed  ****** in any given year: billed
                  at cost

6.0      EMPTY MILES GUARANTEE

         6.1      Definitions

                  6.1.1    Empty Miles are defined as the miles on dedicated
                           routes where no Goods are in transit other than
                           routes that are dedicated to feed deliveries or to
                           miles associated with feed pick-ups or as directed by
                           Customer.

                  6.1.2    Loaded Miles are defined as any miles on Logistics
                           Group dedicated routes when the truck is loaded with
                           third-party backhauls, store product, return to
                           vendor ("RTV"), or store transfers. RTV trips will be
                           considered Loaded Miles for both the scheduled day
                           for a store and for any unscheduled RTV that is
                           requested by Customer or a third party approved by
                           Customer.

         6.2      Guarantee

                  6.2.1    Logistics Group will guarantee that Customer's annual
                           Empty Miles will be ****** percent (******) or less
                           of Customer's total system miles, excluding routes
                           that are dedicated to feed deliveries and miles
                           associated with feed pick-ups as directed by
                           Customer. Logistics Group will waive ****** per mile
                           (one half of the average variable cost per mile) for
                           all eligible miles above the ****** guarantee;
                           provided, however, that Logistics Group will only be
                           liable for actual Empty Miles as defined in this
                           Section.

                  6.2.2    Logistics Group will conduct a quarterly review of
                           the Empty Miles with Customer and shall reconcile
                           Empty Miles, for purposes of the Empty Guarantee
                           described in Section 6.2.1, on the annual anniversary
                           date of this Agreement.

         6.3      Assumptions for Empty Mile Guarantee

                  6.3.1    Customer will provide to Logistics Group store
                           delivery volumes by noon one day prior to shipping
                           date.

                  6.3.2    Customer will comply with routes provided by
                           Logistics Group, unless otherwise agreed to in
                           writing by the parties including but not limited to
                           hot loads or trips requested to be delivered or
                           picked up by Customer.

*        Subject to a confidential treatment request of Tractor Supply Company
dated August 13, 2001.

                                     Page 19
<PAGE>   20

                  6.3.3    Shipments must be available for dispatch by earliest
                           preferred dispatch time of all stores on a route.

                  6.3.4    Trips requested by Customer to be delivered by
                           Equipment other than recommended by Logistics Group,
                           or which are outside the parameters of the Operating
                           Assumptions, will not be included the calculation of
                           Empty Miles.

                  6.3.5

                                     Page 20
<PAGE>   21

                                   SCHEDULE 1
                            SYSTEM ASSUMPTION/CHARGES
                                 OMAHA, NEBRASKA

                     [This Schedule 1 supercedes Schedule A
                 Schedule of Charges dated November 13, 2000.]

1.0      ASSUMPTIONS

         1.1      LOGISTICS GROUP TO PROVIDE

                  1.1.1    ****** tandem axle conventional sleeper tractors
                           equipped with HighwayMaster(R) computers

                  1.1.2    ****** full-time drivers meeting Logistics Group
                           qualifications

                  1.1.3    ****** full-time manager, ****** full-time
                           dispatcher, and ****** full-time clerk to be based at
                           Customer's facility

                  1.1.4    One routing software package and software training

                  1.1.5    Daily dispatch and routing instructions and schedules

                  1.1.6    Tools of the trade to allow Logistics Group to
                           perform normal and customary business as mutually
                           agreed upon.

1.2      OPERATIONAL ASSUMPTIONS

                  1.2.1    Outbound loads will be truckload ("TL") and Less than
                           truckload ("LTL")

                  1.2.2    Drivers will operate in single and team operation

                  1.2.3    Driver and tractor will be available to Customer as
                           follows:

                           -        Truck is available to dispatch 24 hours per
                                    day Sunday through Saturday

                           -        System to operate 52 weeks per year

                           -        Delivery windows are 24 hours per day Sunday
                                    through Saturday

                           -        Drivers will be responsible for unloading
                                    trailers at Customer's retail stores

                           -        Tractors rates based on a three-year term

2.0      SCHEDULE OF CHARGES

         2.1      FIXED CHARGES (MANAGEMENT, EQUIPMENT, MAINTENANCE, AND
                  IS-RELATED COSTS): ****** per week.

         2.2      VARIABLE CHARGES

                  2.2.1    OVER THE ROAD (TRIPS IN EXCESS OF ***** ROUND TRIP
                           MILES)

                           -        Single mileage charge based on PC Miler
                                    Practical: ***** per mile, plus ***** per
                                    stop (includes labor, equipment,
                                    maintenance, and fuel expenses).

                           -        Team Mileage charge based on PC Miler
                                    Practical: ***** per mile, plus ***** per
                                    team stop (includes labor, equipment,
                                    maintenance, and fuel expense).

                  2.2.2    LOCAL (TRIPS OF LESS THAN 150 ROUND TRIP MILES) -
                           OMAHA LOCAL

                           -        ***** per mile, plus ***** per hour for
                                    drivers.

                           -        Overtime Charge after 40 hours per driver
                                    per week will be charged at ***** per hour
                                    for drivers.

                  2.2.3    LOCAL (TRIPS OF LESS THAN 150 ROUND TRIP MILES)

                           -        ***** per mile, plus ***** per hour for
                                    drivers.

                           -        Overtime Charge after 40 hours per driver
                                    per week will be charged at ***** per hour
                                    for drivers.

                  2.2.4    HOURLY CHARGE

                           -        The fixed charge includes one clerk and 40
                                    hours of labor. If the permanent clerk works
                                    in excess of 40 hours, the rate will be
                                    ****** per hour.

                           -        Extra clerks shall be charged at ****** per
                                    hour straight time and ****** per hour
                                    overtime in excess of 40 hours.

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                     Page 21
<PAGE>   22

2.2.5    SUPPLEMENTAL CHARGES

         -        Detention (after two hours free time at each delivery and
                  three hours at each vendor): ****** per each 15 minutes or
                  ****** per hour. Driver will notify dispatcher after one hour
                  for assistance (when practical).

         -        Fuel is included and pegged at ****** per gallon.

*        Subject to a confidential treatment request of Tractor Supply Company
dated August 13, 2001.

                                     Page 22
<PAGE>   23
                                    SCHEDULE 1
                                     EQUIPMENT

                       TRACTOR SUPPLY COMPANY - OMAHA, NE

          EQUIPMENT TO BE DETERMINED AND MUTUALLY AGREED TO IN WRITING.

===============================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 1 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 1 is dispatched.
===============================================================================

TRACTOR SUPPLY COMPANY              UPS LOGISTICS GROUP, INC.

By:  /s/ Larry Goldberg             By:    /s/ James P. Thompson
    ----------------------------          --------------------------------------

Title:  Vice President-Logistics    Title:  Sr. VP & COO Transportation Services
       -------------------------           -------------------------------------

Date:  May 9, 2001                  Date:  May 14, 2001
      --------------------------          --------------------------------------

                                     Page 23
<PAGE>   24

                                   SCHEDULE 1
                                    EQUIPMENT

                       TRACTOR SUPPLY COMPANY - OMAHA, NE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Equipment   Date in       Contract        Year &                       Model &                 Original       Monthly
Number      Service        Term           Make                          Type                    Value      Depreciation
----------------------------------------------------------------------------------------------------------------------
<S>         <C>           <C>       <C>                       <C>                              <C>         <C>
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                    Century
</TABLE>

===============================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 1 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 1 is dispatched.
===============================================================================

TRACTOR SUPPLY COMPANY                        UPS LOGISTICS GROUP, INC.

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

Name:                                         Name:
       --------------------------------            ----------------------------

Title:                                        Title:
       --------------------------------             ---------------------------

Date:                                         Date:
       --------------------------------             ---------------------------

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 24
<PAGE>   25
                                   SCHEDULE 2
                            SYSTEM ASSUMPTION/CHARGES
                               PENDLETON, INDIANA

 [This Schedule supercedes Appendix A Schedule of Charges dated April 1, 2000.]

1.0      ASSUMPTIONS

         1.1      LOGISTICS GROUP TO PROVIDE

                  1.1.1    ****** tandem axle conventional sleeper tractors
                           equipped with HighwayMaster(R) computers

                  1.1.2    ****** full-time drivers meeting Logistics Group
                           qualifications

                  1.1.3    ****** full-time manager. ****** full-time
                           dispatcher, ****** full-time yard switchers, and
                           ****** full-time clerks based at Customer's facility

                  1.1.4    One routing software package and software training

                  1.1.5    Daily dispatch and routing instructions and schedules

                  1.1.6    Tools of the trade to allow Logistics Group to
                           perform normal and customary business as mutually
                           agreed upon.

1.2      OPERATIONAL ASSUMPTIONS

                  1.2.1    Outbound loads will be truckload ("TL") and Less than
                           truckload ("LTL")

                  1.2.2    Drivers will operate in single and team operation

                  1.2.3    Driver and tractor will be available to Customer as
                           follows:

                  -        Truck is available to dispatch 24 hours per day
                           Sunday through Saturday

                  -        System to operate 52 weeks per year

                  -        Delivery windows are 24 hours per day Sunday through
                           Saturday

                  -        Drivers will be responsible for unloading trailers at
                           Customer's retail stores

                  -        Tractors rates based on a three-year term

2.0      SCHEDULE OF CHARGES

2.1      FIXED CHARGES (MANAGEMENT, EQUIPMENT, MAINTENANCE, AND IS-RELATED
         COSTS): ****** per week.

2.2      VARIABLE CHARGE

         2.2.1    OVER THE ROAD (TRIPS IN EXCESS OF 150 ROUND TRIP MILES)

                  -        Single mileage charge based on PC Miler Practical:
                           ****** per mile, plus ****** per stop (includes
                           labor, equipment, maintenance, and fuel expenses).

                  -        Team Mileage charge based on PC Miler Practical:
                           ****** per mile, plus ****** per team stop (includes
                           labor, equipment, maintenance, and fuel expenses).

                  -        ****** per Purina Stop (includes labor, equipment,
                           maintenance, and fuel expenses).

         2.2.2    LOCAL (TRIPS OF LESS THAN 150 ROUND TRIP MILES)

                  -        ****** per mile, plus ****** per hour for drivers.

                  -        Overtime Charge after 40 hours per driver per week
                           will be charged at ****** per hour for drivers.

         2.2.3    HOURLY CHARGES

                  -        The fixed charge includes two clerks and eighty (80)
                           hours of labor. If the permanent clerks work in
                           excess of 80 hours, the rate will be ****** per hour.
                           Extra clerks shall be charged at ****** per hour
                           straight time and ****** per hour overtime in excess
                           of 40 hours.

                  -        The fixed charge includes two switchers and 80 hours
                           of labor. If the permanent switchers work in excess
                           of 80 hours, the rate will be ****** per hour. Extra

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                       Page 25
<PAGE>   26
                           switchers shall be charged at ****** per hour
                           straight time and ****** per hour overtime in excess
                           of 40 hours.

                  2.2.4    SUPPLEMENTAL CHARGES

                           -        Detention will occur after two hours free
                                    time at each delivery and three hours at
                                    each vendor, and will be charged at ******
                                    per each 15 minutes. Driver will notify
                                    dispatcher after one hour for assistance
                                    (when practical).

                           -        Fuel is included at ****** per gallon.

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                     Page 26
<PAGE>   27
                                   SCHEDULE 2
                                    EQUIPMENT

                     TRACTOR SUPPLY COMPANY - PENDLETON, IN

         Equipment to be determined and mutually agreed to in writing.

================================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 2 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 2 is dispatched.
================================================================================

TRACTOR SUPPLY COMPANY                        UPS LOGISTICS GROUP, INC.

By:  /s/ Larry Goldberg                       By:  /s/ James P. Thompson
    ---------------------------------            -------------------------------

Title:  Vice President-Logistics              Title:  Sr. VP & COO
       ------------------------------                 Transportation Services
                                                    ----------------------------

Date:  May 9, 2001                            Date:  May 14, 2001
      -------------------------------              -----------------------------

                                    Page 27

<PAGE>   28

                                   SCHEDULE 2
                                    EQUIPMENT

                     TRACTOR SUPPLY COMPANY - PENDLETON, IN

<TABLE>
<CAPTION>
-------------- --------- ---------- ------------------------- ------------------------------ ------------- -------------
  Equipment    Date in   Contract            Year &                      Model &               Original      Monthly
   Number      Service     Term               Make                        Type                  Value      Depreciation
-------------- --------- ---------- ------------------------- ------------------------------ ------------- -------------
<S>            <C>       <C>        <C>                       <C>                            <C>           <C>

                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
                            36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******        ******
                                    Century
</TABLE>

===============================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 2 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 2 is dispatched.
===============================================================================

TRACTOR SUPPLY COMPANY                        UPS LOGISTICS GROUP, INC.

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

Name:                                         Name:
      -------------------------------              -----------------------------

Title:                                        Title:
       ------------------------------               ----------------------------

Date:                                         Date:
      -------------------------------              -----------------------------

* Subject to a confidential treatment request of Tractor Supply Company
dated August 13, 2001.

                                    Page 28
<PAGE>   29

                                   SCHEDULE 3

                            SYSTEM ASSUMPTION/CHARGES

                           Rural Hall, North Carolina

         [This Schedule supercedes Appendix A Schedule of Charges dated
                               November 6, 2000.]

1.       ASSUMPTIONS

         1.0      LOGISTICS GROUP TO PROVIDE

                  1.1.1    ****** tandem axle conventional sleeper equipped with
                           HighwayMaster(R) computers

                  1.1.2    ****** full-time drivers meeting Logistics Group
                           qualifications

                  1.1.3    ****** full-time manager and ****** full-time clerk
                           based at Customer's facility

                  1.1.4    One routing software package

                  1.1.5    Daily dispatch and routing instructions and schedules

                  1.1.6    Tools of the trade to allow Logistics Group to
                           perform normal and customary business as mutually
                           agreed upon.

         1.2      OPERATIONAL ASSUMPTIONS

                  1.2.1    Outbound loads will be truckload ("TL") and Less than
                           truckload ("LTL")

                  1.2.2    Drivers will operate in single operation

                  1.2.3    Driver and tractor will be available to Customer as
                           follows:

                           -        Truck is available to dispatch 24 hours per
                                    day Sunday through Saturday

                           -        System to operate 52 weeks per year

                           -        Delivery windows are 24 hours per day Sunday
                                    through Saturday

                           -        Drivers will be responsible for unloading
                                    trailers at Customer's retail stores

                           -        Tractors rates based on a three-year term

2.0      SCHEDULE OF CHARGES

         2.1      FIXED CHARGES (MANAGEMENT, EQUIPMENT, MAINTENANCE, AND
                  IS-RELATED COSTS): ****** per week.

         2.2      VARIABLE CHARGES

                  2.2.1    OVER THE ROAD (TRIPS IN EXCESS OF 150 ROUND TRIP
                           MILES)

                           -        Single mileage charge based on PC Miler
                                    Practical: ****** per mile, plus ****** per
                                    stop (includes labor, equipment,
                                    maintenance, and fuel expenses).

                  2.2.2    LOCAL (TRIPS OF LESS THAN 150 ROUND TRIP MILES)

                           -        ****** per mile, plus ****** per hour for
                                    drivers.

                           -        Overtime Charge after 40 hours per driver
                                    per week will be charged at ****** per hour
                                    for drivers.

                  2.2.3    HOURLY CHARGE

                           -        The fixed charge includes one clerk and 40
                                    hours of labor. If the permanent clerk works
                                    in excess of 40 hours, the rate will be
                                    ****** per hour. Extra clerks shall be
                                    charged at ****** per hour straight time and
                                    ****** per hour overtime in excess of 40
                                    hours.

                  2.2.4    SUPPLEMENTAL CHARGES

                           -        Detention will occur after two hours free
                                    time at each delivery and three hours at
                                    each vendor, and will be charged at ******
                                    per each 15 minutes, or ****** per hour.
                                    Driver will notify dispatcher after one hour
                                    for assistance (when practical).

                           -        Fuel is included at ****** per gallon.

* Subject to a confidential treatment request of Tractor Supply Company
dated August 13, 2001.

                                    Page 29
<PAGE>   30

                                   SCHEDULE 3
                                   EQUIPMENT

                    TRACTOR SUPPLY COMPANY - RURAL HALL, NC
         Equipment to be determined and mutually agreed to in writing.

===============================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 3 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 3 is dispatched.
===============================================================================

TRACTOR SUPPLY COMPANY              UPS LOGISTICS GROUP, INC.

By:  /s/ Larry Goldberg             By:  /s/ James P. Thompson
    -----------------------------       ---------------------------------------

Title: Vice President-Logistics     Title: Sr. VP & COO Transportation Services
       --------------------------          ------------------------------------

Date:  May 9, 2001                  Date:  May 14, 2001
      ---------------------------         -------------------------------------

                                    Page 30
<PAGE>   31

                                   SCHEDULE 3
                                   EQUIPMENT

                    TRACTOR SUPPLY COMPANY - RURAL HALL, NC

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Equipment       Date in        Contract        Year &                       Model &                 Original      Monthly
Number          Service          Term           Make                         Type                    Value     Depreciation
---------------------------------------------------------------------------------------------------------------------------
             <C>            <C>       <C>                       <C>                              <C>        <C>
                                 36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                         Century
                                 36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                         Century
                                 36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                         Century
                                 36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                         Century
                                 36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                         Century
                                 36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                         Century
                                 36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                         Century
</TABLE>

===============================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 3 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 3 is dispatched.
===============================================================================

TRACTOR SUPPLY COMPANY                      UPS LOGISTICS GROUP, INC.

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

Name:                                       Name:
     ---------------------------------           ------------------------------

Title:                                      Title:
      --------------------------------            -----------------------------

Date:                                       Date:
     ---------------------------------           ------------------------------

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 31
<PAGE>   32

                                   SCHEDULE 4
                           SYSTEM ASSUMPTION/CHARGES
                                  WACO, TEXAS

This Schedule supercedes Appendix A Schedule of Charges dated November 13,
2000.

1.0      ASSUMPTIONS

         1.1      LOGISTICS GROUP TO PROVIDE

                  1.1.1    ****** tandem axle conventional sleeper tractors
                           equipped with HighwayMaster(R) computers

                  1.1.2    ****** full-time drivers meeting Logistics Group
                           qualifications

                  1.1.3    ****** full-time manager, ****** full-time yard
                           switcher, and ****** full-time clerk based at
                           Customer's facility

                  1.1.4    One routing software package and software training

                  1.1.5    Daily dispatch and routing instructions and
                           schedules

                  1.1.6    Tools of the trade to allow Logistics Group to
                           perform normal and customary business as mutually
                           agreed upon.

         1.2      OPERATIONAL ASSUMPTIONS

                  1.2.1    Outbound loads will be truckload ("TL") and Less
                           than truckload ("LTL")

                  1.2.2    Drivers will operate in single operation

                  1.2.3    Driver and tractor will be available to Customer as
                           follows:

                           -        Truck is available to dispatch 24 hours per
                                    day Sunday through Saturday

                           -        System to operate 52 weeks per year

                           -        Delivery windows are 24 hours per day
                                    Sunday through Saturday

                           -        Drivers will be responsible for unloading
                                    trailers at Customer's retail stores

                           -        Tractors rates based on a three-year term

2.0   SCHEDULE OF CHARGES

         2.1      FIXED CHARGES (MANAGEMENT, EQUIPMENT, MAINTENANCE, AND
                  IS-RELATED COSTS): ****** per week.

         2.2      VARIABLE CHARGE

                  2.2.1    OVER THE ROAD (TRIPS IN EXCESS OF 150 ROUND TRIP
                           MILES)

                           -        Single mileage charge based on PC Miler
                                    Practical: ****** per mile, plus ****** per
                                    stop (includes labor, equipment,
                                    maintenance, and fuel expenses).

                  2.2.2    LOCAL (TRIPS OF LESS THAN 150 ROUND TRIP MILES)

                           -        ****** per mile, plus ****** per hour for
                                    drivers.

                           -        Overtime Charge after forty (40) hours per
                                    driver per week will be charged at ******
                                    per hour for drivers.

                  2.2.3    HOURLY CHARGE

                           -        The fixed charge includes one clerk and 40
                                    hours of labor. If the permanent clerk
                                    works in excess of 40 hours, the rate will
                                    be ****** per hour. Extra clerks shall be
                                    charged at ****** per hour straight time
                                    and ****** per hour overtime in excess of
                                    forty (40) hours.

                           -        The fixed charge includes one switcher and
                                    (40) forty hours of labor. When the
                                    permanent switcher works in excess of forty
                                    (40) hours, the rate will be ****** per

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 32
<PAGE>   33

                                    hour. Extra switchers shall be charged at
                                    ****** per hour straight time and ******
                                    per hour overtime in excess of forty (40)
                                    hours.

                  2.2.4    SUPPLEMENTAL CHARGES

                           -        Detention will occur after two hours free
                                    time at each delivery and three hours at
                                    each vendor, and will be charged at ******
                                    per each 15 minutes, or ****** per hour.
                                    Driver will notify dispatcher after one
                                    hour for assistance (when practical).

                           -        Fuel is included at ****** per gallon.

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 33
<PAGE>   34

                                   SCHEDULE 4
                                   EQUIPMENT

                       TRACTOR SUPPLY COMPANY - WACO, TX
         Equipment to be determined and mutually agreed to in writing.

===============================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 4 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 4 is dispatched.
===============================================================================

TRACTOR SUPPLY COMPANY              UPS LOGISTICS GROUP, INC.

By:  /s/ Larry Goldberg             By:  /s/ James P. Thompson
    ----------------------------       ----------------------------------------

Title:  Vice President-Logistics    Title: Sr. VP & COO Transportation Services
       -------------------------          -------------------------------------

Date:  May 9, 2001                  Date:  May 14, 2001
      --------------------------         --------------------------------------

                                    Page 34
<PAGE>   35

                                   SCHEDULE 4
                                   EQUIPMENT

                       TRACTOR SUPPLY COMPANY - WACO, TX

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Equipment       Date in        Contract        Year &                       Model &                 Original      Monthly
Number          Service          Term           Make                         Type                    Value     Depreciation
---------------------------------------------------------------------------------------------------------------------------
             <C>            <C>       <C>                       <C>                              <C>        <C>

                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
                                36      1998 Freightliner         FLC12064ST TAC 70" Rsd Roof       ******       ******
                                        Century
</TABLE>

===============================================================================
This Schedule shall commence on the date the first Equipment listed on this
Schedule 4 is placed into service and shall continue thereafter for a period of
36 months from the date the last equipment on this Schedule 4 is dispatched.
===============================================================================

TRACTOR SUPPLY COMPANY                      UPS LOGISTICS GROUP, INC.

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

Name:                                       Name:
     ---------------------------------           ------------------------------

Title:                                      Title:
      --------------------------------            -----------------------------

Date:                                       Date:
     ---------------------------------           ------------------------------

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 35
<PAGE>   36

                                   EXHIBIT C
                     TO TRANSPORTATION MANAGEMENT AGREEMENT

                                    *******
                       TRANSPORTATION MANAGEMENT SERVICES

1.0      Duties of Logistics Group

         1.1      Carrier Network. Logistics Group shall develop and make
                  available to Customer a network of carriers for less than
                  truckload (LTL), truckload (TL), and such other carriers as
                  are necessary to move Customer's Goods in accordance with the
                  requirements of this Agreement. In the event Customer
                  requires LTL and TL carriers for lanes not included in
                  Logistics Group's network as of the Effective Date of this
                  Agreement, Logistics Group will supplement its network
                  ("Additional Lanes") as follows:

                  1.1.1     Additional Lanes for TL shipments: Logistics Group
                            will obtain bid rates from no less than five core
                            (network) carriers, and will select the carrier(s)
                            that, in Logistics Group's discretion, best meet
                            Customer's transportation and financial
                            requirements.

                  1.1.2     Additional Lanes for LTL shipments: Logistics Group
                            will use the discount rate provided by the carrier
                            in use by Logistics Group operating for Customer in
                            the same region of the country as the respective
                            Additional Lane and which best meets Customer's
                            operational and financial requirements.

         1.2      Management Reports. Logistics Group shall provide to Customer
                  within seven business days after the end of each month, or as
                  otherwise mutually agreed to in writing, transportation
                  management reports, in a mutually agreed upon format,
                  summarizing to the reasonable satisfaction of Customer, the
                  activities, costs, and Services performed hereunder during
                  that month.

         1.3      Declared Values. Logistics Group will ship all Goods with
                  carriers at a declared value equal to Customer's replacement
                  cost without markup.

         1.4      Carrier Payment. Logistics Group will provide to Customer a
                  weekly invoice with consolidated billing for all carriers.

         1.4      Carrier Claims. Logistics Group will act on behalf of
                  Customer in the filing and processing of carrier claims
                  subject to the remainder of this Section.

                  1.4.1    Logistics Group will file, track and receive payment
                           of all claims, and will instruct the carriers to pay
                           the claim in the name of Customer.

                  1.4.2    Logistics Group shall send all claim checks on a
                           weekly basis by UPS Next Day Air(R) for receipt by
                           Customer on each Monday.

                  1.4.3    Logistics Group agrees to be vigilant in managing
                           claims but will not litigate an unpaid claim on
                           behalf of Customer unless Customer agrees to pay all
                           Logistics Group's costs associated with the
                           litigation at cost; Costs may include but are not
                           limited to outside attorney's fees. Otherwise,
                           Customer shall be responsible for litigating unpaid
                           claims.

         1.7      Governing publications. This Exhibit is subject to the terms,
                  rules and regulations of the following publications, as
                  applicable, unless otherwise specifically described herein:

                  -        National Motor Freight Classification ("NMFC") - 100
                           W series or reissues thereof

                  -        U.S. Postal Service Zip Code Directory

                  -        P.C. Miler Distances in effect at date of shipment

                                    Page 36
<PAGE>   37

2.0      RATES AND CHARGES:

         2.1      Fixed Charges: ****** per week, which includes:

                  2.1.1    Nashville Transportation Management Staff: ******
                           per week (for one Traffic Manager, and four
                           Logistics Operations Specialists)

                  2.1.2    Implementation and Licensing Fees amortized over
                           three-year term: ****** per week.

         2.2      Variable Charges:

                  2.2.1    Optimization Fee: ****** per shipment for each
                           shipment received from Customer, which is processed
                           through the Optimizer (the module within the TMS
                           that determines the most cost-effective and
                           efficient transportation service)

                  2.2.2    Freight pay and audit fees (applied to all
                           shipments):

                           -        Invoice received electronically: ****** per
                                    invoice

                           -        Invoice received manually: ****** per
                                    invoice

                  2.2.3    Additional Clerical: ****** per hour per clerk, and
                           ****** per hour for overtime hours (hours over 40
                           hours per week), plus ****** per day. Additional
                           Clerical can be obtained upon prior approval of
                           Customer.

                  2.2.4    Systems Integration: billed as incurred, but not to
                           exceed ****** based on the Operating Parameters.

                  2.2.5    Carrier Charges (including assessorials and
                           surcharges): at cost (with no markup)

                  2.2.6    Freight Pay / Audit Surcharge: ****** for each
                           carrier invoice received from carriers that are not
                           included in the Logistics Group core carrier program
                           and without prior written approval from Logistics
                           Group.

                  2.2.7    Carrier claims processing: administrative cost plus
                           ****** (when processed by Logistics Group staff not
                           based in Nashville TN).

3.0      EARLY TERMINATION COSTS

         If Customer terminates this Exhibit for any reason other than a
         default by Logistics Group, or if Logistics Group terminates this
         Exhibit for reason of default by Customer, the Fixed Charges for the
         remaining months of the unexpired term of the Agreement, as set forth
         below:

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 37
<PAGE>   38

<TABLE>
<CAPTION>
         ----------------------------------------------------------------------------------
           If terminated             Fee                If terminated           Fee
            After Month                                  After Month
         ----------------------------------------------------------------------------------
           <S>                     <C>                  <C>                   <C>
                 1                 ******                     19              ******
         ----------------------------------------------------------------------------------
                 2                 ******                     20              ******
         ----------------------------------------------------------------------------------
                 3                 ******                     21              ******
         ----------------------------------------------------------------------------------
                 4                 ******                     22              ******
         ----------------------------------------------------------------------------------
                 5                 ******                     23              ******
         ----------------------------------------------------------------------------------
                 6                 ******                     24              ******
         ----------------------------------------------------------------------------------
                 7                 ******                     25              ******
         ----------------------------------------------------------------------------------
                 8                 ******                     26              ******
         ----------------------------------------------------------------------------------
                 9                 ******                     27              ******
         ----------------------------------------------------------------------------------
                 10                ******                     28              ******
         ----------------------------------------------------------------------------------
                 11                ******                     29              ******
         ----------------------------------------------------------------------------------
                 12                ******                     30              ******
         ----------------------------------------------------------------------------------
                 13                ******                     31              ******
         ----------------------------------------------------------------------------------
                 14                ******                     32              ******
         ----------------------------------------------------------------------------------
                 15                ******                     33              ******
         ----------------------------------------------------------------------------------
                 16                ******                     34              ******
         ----------------------------------------------------------------------------------
                 17                ******                     35              ******
         ----------------------------------------------------------------------------------
                 18                ******                     36              ******
         ----------------------------------------------------------------------------------
</TABLE>

4.0      OPERATING PARAMETERS

         4.1.     Customer will receive staffing on all business days that the
                  Customer's Store Support Center is open. Customer currently
                  recognizes the following 6 paid holidays:

                  Memorial Day              Christmas Day
                  Independence Day          Labor Day
                  New Year's Day            Thanksgiving

         4.2      Customer will provide office space for Logistics Group
                  Transportation Management staff in Nashville TN.

         4.3      Normal operating hours for Nashville will be from 7:00 A.M.
                  to 6:00 P.M. Central Time Monday through Friday; after hour
                  and emergency coverage available as necessary.

         4.4      Freight audit and payment of all carrier invoices will be
                  processed at the Logistics Group operations center located in
                  Atlanta GA.

         4.5      Customer bills of lading will reference 3rd party bill to
                  address as UPS Logistics Group.

         4.6      Logistics Group will instruct all carriers to submit freight
                  invoices to Logistics Group's Atlanta GA location.

         4.7      Systems Integration:

                  4.7.1    The existing T1 lines in place between Customer and
                           Logistics Group, as of the Effective Date of this
                           Agreement, will be used for the Services consistent
                           with the requirements set forth herein. Any
                           additional T1 lines required by Customer shall be at
                           Customer's sole cost.

                  4.7.2    Logistics Group will implement its proprietary
                           Transportation Management System ("TMS") in
                           connection with the Services.

                  4.7.3    Customer's SAP(R) system will provide the necessary
                           information in a flat file or EDI format that will
                           allow input into the TMS. Logistics Group must
                           receive and validate flat file before implementation
                           can begin.

                  4.7.4    Batch transmissions from Customer to Logistics Group
                           systems will take place once per day.

                  4.7.5    The TMS will not be updating Customer's SAP(R)
                           system.

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 38
<PAGE>   39

         4.8      Customer will contact the onsite Logistics Group staff in
                  Nashville for all customer service and track and trace
                  requests.

         4.9*     Customer's product is seasonal, with peak shipping in the
                  spring months.

         4.10     Customer will notify its existing carriers of termination of
                  services, prior to the implementation of Services hereunder.

         4.11*    LTL shipment volume: ****** of all shipments and ****** of
                  total weight

         4.12*    TL shipment volume: ****** of all shipments and ****** of
                  total weight.

-        Denotes Operating Parameters that are subject to change pending
         completion of the 2001 Analysis (as defined hereinafter).

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 39
<PAGE>   40

                                   EXHIBIT D
                      TRANSPORTATION MANAGEMENT AGREEMENT
                                    ********

                      TRANSPORTATION MANAGEMENT GUARANTEE

1.0      Guaranteed Savings

         1.1      The Transportation Management Guaranteed Savings ("Guaranteed
                  Savings") is defined as the amount of savings and/or revenue
                  that Logistics Group represents it will provide to Customer,
                  based on the following factors:

                  1.1.1    Logistics Group Carrier Rate savings

                  1.1.2    Outsourced transportation Optimization savings

                  1.1.3    Third-Party backhaul revenue (from Dedicated
                           Services)

         1.2      Undefined terms in this Exhibit D shall have their respective
                  meaning as defined elsewhere in this Agreement, including but
                  not limited to Exhibit E.

2.0      Determination of Guaranteed Savings Amount:

         2.1      Monthly shipment and tonnage distribution for 2000 (based on
                  a "Shipton" factor, which is the number of shipments in each
                  month multiplied by the number of tons shipped in each
                  month). Year 2000 will be used as the baseline for all
                  Guaranteed Savings and Shared Savings calculations for the
                  duration of this Agreement.

<TABLE>
<CAPTION>
                           ------------------ ------------------------ -------------------------
                                 MONTH               SHIPTONS             % OF ANNUAL TOTAL
                           ------------------ ------------------------ -------------------------
                               <S>                   <C>                  <C>
                                January               ******                    ******
                           ------------------ ------------------------ -------------------------
                               February               ******                    ******
                           ------------------ ------------------------ -------------------------
                                 March                ******                    ******
                           ------------------ ------------------------ -------------------------
                                 April                ******                    ******
                           ------------------ ------------------------ -------------------------
                                  May                 ******                    ******
                           ------------------ ------------------------ -------------------------
                                 June                 ******                    ******
                           ------------------ ------------------------ -------------------------
                                 July                 ******                    ******
                           ------------------ ------------------------ -------------------------
                                August                ******                    ******
                           ------------------ ------------------------ -------------------------
                               September              ******                    ******
                           ------------------ ------------------------ -------------------------
                                October               ******                    ******
                           ------------------ ------------------------ -------------------------
                               November               ******                    ******
                           ------------------ ------------------------ -------------------------
                               December               ******                    ******
                           ------------------ ------------------------ -------------------------
                                 TOTAL                ******                    ******
                           ------------------ ------------------------ -------------------------
                                                      Table 1
</TABLE>

                  Note (1):  Table 1 indicates that ****** of the annual volume
                             occurred in months July-December; therefore,
                             assuming that TMS is fully operational on or before
                             July 1, 2000, the Guaranteed Savings for 2001 would
                             be ****** x ****** = ******.

                  Note (2):  Table 1 is based on data provided to Logistics
                             Group by Customer as of February 22, 2001, and does
                             not include all December 2000 shipments. Data in
                             Table 1 will be updated at such time that Customer
                             has provided to Logistics Group the complete
                             shipment data for December 2000, and this Table 1
                             will be amended accordingly.

         2.2      Based on the Shipton information above, the annual
                  transportation costs that Customer represents to Logistics
                  Group it incurred prior to this Agreement, and the costs that
                  Logistics Group projects Customer will incur for the Services
                  hereunder, Logistics Group guarantees Customer an annual
                  savings of ******, subject to the remainder of this Exhibit
                  D.

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 40
<PAGE>   41

3.0      Adjustments in the Guaranteed Savings

         3.1      If the number of annual Shiptons declines when compared to
                  the 2000 Total shown in Table 1, Logistics Group will
                  quantify and make any adjustments to the Guaranteed Savings
                  based upon a mutually agreed percentage.

         3.2      If at any time the then-current Carrier Rate Savings falls
                  below the Carrier Rate Savings contained in the 2001
                  Analysis, then any one of the following conditions shall
                  apply:

                  3.2.1    If the decrease in the Carrier Rates Savings is the
                           result of reasons beyond the control of the
                           Logistics Group, the Carrier Rate Savings in the
                           2001 Analysis will apply, and Logistics Group will
                           adjust the Guarantee accordingly.

                           For illustration purposes only:
                                    Assume that the Carrier Rate Savings of the
                                    2001 Analysis provides a **** percent ******
                                    savings when compared to Customer Rates,
                                    and that during any given period the actual
                                    savings provided by Logistics Group Rates
                                    is ***** percent ******, with a monetary
                                    difference of ******. If this reduction in
                                    savings is the result of factors beyond the
                                    control of the Logistics Group, Logistics
                                    Group will reduce the Guaranteed Savings by
                                    ******.

                           Examples of occurrences that could necessitate the
                           Guaranteed Savings adjustment in the above
                           illustration include but are not limited to:

                           3.2.1.1  An significant increase in the average
                                    class of Customer's LTL shipments above the
                                    ****** average that Customer has
                                    represented;

                           3.2.1.2  A significant change in the percent of TL
                                    versus LTL shipments that are presented to
                                    Logistics Group by Customer; and/or

                           3.2.1.3    The volume in a given lane is reduced or
                                      transferred to another lane in which the
                                      overall potential savings are reduced.

                  3.2.2    If any decrease in the Carrier Rate Savings is due
                           solely to factors within the control of Logistics
                           Group, the Guarantee will not be modified.

                  3.2.3    Logistics Group will provide to Customer a quarterly
                           written report of the Carrier Rate Savings trends
                           including the reasons for changes, if any, in the
                           Carrier Rate Savings.

         3.3      For Excluded and Non-Compliant Shipments, Logistics Group
                  will adjust the Guaranteed Savings by multiplying the Overall
                  Savings percentage by the cost of the Excluded and
                  Non-Compliant Shipment, as shown in Table 2 below.

                      For illustration purposes only

<TABLE>
                        ------------------------------- ---------------
                        <S>                             <C>
                        Cost of                         ******
                        Excluded/Non-Compliant
                        Shipments
                        ------------------------------- ---------------
                        Actual Annual Savings Based     ******
                        on Compliant Shipments
                        ------------------------------- ---------------
                        Adjustment to Guaranteed        ******
                        Savings
                        ------------------------------- ---------------
                                             Table 2
</TABLE>

                  Note:    Actual Annual Savings based on Compliant Shipments
                           shall be calculated at the end of each calendar
                           year. In the event that Excluded and Non-Compliant
                           shipments are experienced in a any given year, this
                           amount, calculated for the respective year, will be

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 41
<PAGE>   42

                           used in the above calculation. For example, the
                           Actual Savings based on compliant shipments for 2002
                           will be used to adjust the 2002 Savings Guarantee
                           for the cost of Excluded and Non-Compliant Shipments
                           in that same year.

         3.4      If changes in Customer's and/or its vendors' shipping and
                  receiving hours result in a reduction of Logistics Group's
                  ability to provide overall savings to Customer, Logistics
                  Group will quantify this impact for Customer and have the
                  right, but not the obligation, to adjust the Guaranteed
                  Savings accordingly.

         3.5      The Guaranteed Savings will not include any costs associated
                  with fuel surcharges. These costs will be removed from the
                  baseline and the Actual Expense prior to any calculations
                  under this Section 3.

         3.6      In the event Logistics Group determines that a change in any
                  Operating Parameter set forth in Exhibit C (Section 4)
                  negatively impacts the overall savings opportunity, Logistics
                  Group will quantify this impact for Customer and will have
                  the right to request that the Joint Logistics Committee
                  adjust the Guaranteed Savings accordingly.

                                    Page 42
<PAGE>   43

                                   EXHIBIT E
                      TRANSPORTATION MANAGEMENT AGREEMENT
                                    ********
                             SHARED SAVINGS PROGRAM

1.0      Definitions

         1.1      Actual Expense: The transportation costs billed under this
                  Agreement.

         1.2      Additional Lanes: For purposes of calculating projected
                  Shared Savings, Customer Rates for Additional Lanes will be
                  the same percentage higher than the Logistics Group Rates for
                  existing lanes for the respective mode (e.g., TL, LTL).

                           By way of example, if Logistics Group Rates for TL
                           shipments are on average five percent lower than
                           Customer Rates for TL shipments, Logistics Group
                           Rates for TL Additional Lanes will be five percent
                           lower than Customer Rates.

         1.3      Baseline Expense: The transportation costs that Customer
                  would have incurred based on Customer's Rates without
                  Optimization.

                  1.3.1    To enable Logistics Group to determine the Baseline
                           Expense, Customer agrees to provide to Logistics
                           Group its Customer Rates within thirty (30) days
                           from the Effective Date of this Agreement.

                  1.3.2    Logistics Group will develop a Customer-specific
                           rate tariff containing Customer Rates to be used in
                           determining the cost Customer would have incurred
                           without the benefit of Logistics Group Rates.

                  1.3.3    Logistics Group will, on behalf of Customer, obtain
                           updated rates from core carriers annually for the
                           duration of this Agreement. In the event that these
                           updated rates result in an overall increase in rates
                           when compared to existing core carrier rates,
                           Logistics Group will, with the consent of the Joint
                           Logistics Committee, increase the Baseline expense
                           by the same percentage for the purpose of Shared
                           Savings calculations.

         1.4      Carrier Rate Savings: The difference, stated either as a
                  percentage or a monetary amount, in Logistics Group Rates and
                  Customer Rates. For purposes of this definition, Logistics
                  Group's Rates are lower than Customer Rates, unless otherwise
                  stated herein.

         1.5      Customer Rates: The carrier rates that Customer has in place
                  prior to the Effective Date.

         1.6      Excluded Shipments: Those shipments that result in costs
                  above Logistics Group Rates due to reasons beyond the control
                  of Logistics Group, including but not limited to emergency
                  shipments (e.g., express, expedited, air) or extended transit
                  service outside the agreed upon Assumptions, shipments
                  affected by Force Majeure events, and special transportation
                  service requests by Customer.

         1.7      Logistics Group Rates: The carrier rates that Logistics Group
                  provides to Customer.

         1.8      Non-Compliant Shipments: Shipments that result in lost
                  potential savings and / or higher transportation costs, that
                  (a) the customer does not make available to Logistics Group
                  at least 48 hours prior to the required ship date and for
                  which Logistics Group is not able to fully optimize and/or
                  obtain the lower cost carrier; or (b) Shipments where
                  Customer or Customer's vendors ship

                                    Page 43
<PAGE>   44

                  via carriers not included in the Logistics Group core carrier
                  program without prior written approval from Logistics Group.
                  Any incumbent carriers of Customer that Customer and
                  Logistics Group mutually agree in writing to continue using
                  will be considered part of the core carrier program.

         1.9      Optimization: The process by which Logistics Group provides
                  the most cost-effective and efficient transportation service
                  to Customer, which includes but is not limited to the use of
                  Logistics Group Rates, shipment consolidation and multi-stop
                  TL.

         1.10     Overall Savings: Carrier Rate Saving plus Optimization
                  savings.

         1.11     Realized Savings: The amount equal to the Actual Expense less
                  Baseline Expense.

         1.12     Shared Savings Pool: Realized savings minus the Savings
                  Guarantee.

         1.13     2001 Analysis: The modeling analysis that Logistics Group
                  will perform subject to Customer providing the required data
                  including but not limited to cube information. (As of the
                  Effective Date of this Agreement, Logistics Group was not in
                  receipt of all data necessary to complete the 2001 Analysis.
                  Upon completion of the 2001 Analysis, Logistics Group will
                  provide a written copy of same to Customer, and the parties
                  will amend this Agreement accordingly.)

2.0      Administration of the SSP

         2.1      Logistics Group will provide a quarterly report to Customer,
                  which will set forth the Realized Savings for all
                  transportation managed by Logistics Group for that quarter.
                  If applicable, Customer agrees to make any required Shared
                  Savings payments within thirty (30) days from date of
                  Logistics Group's first quarterly report which demonstrates
                  that Logistics Group has achieved the full annual Guaranteed
                  Savings for the then current year and thereafter within
                  thirty (30) days after each subsequent quarterly report
                  during such year. All disputes regarding Logistic Group's
                  computation of the Realized Savings initially shall be
                  submitted to the Joint Logistics Committee and, if the Joint
                  Logistics Committee is unable to resolve the issue, shall be
                  subject to the dispute resolution provisions of Section 18 of
                  the Agreement.

         2.2      The parties agree that Customer shall be entitled to ******
                  percent (******) of the Shared Savings Pool, and Logistics
                  Group shall be entitled to ****** percent (******) of the
                  Shared Savings Pool. See Table 3 for an example of the SSP
                  calculation.

                  For illustration purposes only:

<TABLE>
                  ---------------------------------- --------------
                  <S>                                   <C>
                  Realized                              ******
                  Savings:
                  Less Guaranteed Savings:              ******
                  Shared Savings Pool:                  ******

                  Customer share (******):              ******
                  Logistics Group share (****):         ******
                  ---------------------------------- --------------
                                        Table 3
</TABLE>

* Subject to a confidential treatment request of Tractor Supply Company dated
August 13, 2001.

                                    Page 44

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