Document:

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                                                                   EXHIBIT 10.32

                  EXECUTIVE SEVERANCE AGREEMENT, dated as of July 24, 2000 (the
                  "Agreement"), between Heafner Tire Group, Inc., a Delaware
                  corporation (the "Employer"), and James Matthews (the
                  "Employee").

                  The Employer desires to retain the Employee to supply services
to the Employer in connection with Employer's business of marketing and
distributing wholesale and retail tires and related products (the "Business"),
and the Employee desires to provide such services to the Employer, on the terms
and subject to the conditions set forth in this Agreement.

                  In consideration of (i) the Employee's agreement to supply
services under this Agreement and (ii) the mutual agreements set forth below,
the sufficiency of which is hereby acknowledged, the Employer and the Employee
agree as follows:

                  SECTION 1. Employment Relationship.

                  (a)      Employment by Employer. The Employer hereby employs
the Employee, and the Employee hereby agrees to be employed by the Employer, as
President of the American Tire Distributors Division of the Employer (the
"Division"), and the Employee will devote all of his business time, attention,
knowledge and skills and use his best efforts during the Employment Period to
perform services and duties consistent with his title and position (the
"Services") for the Employer in accordance with directions given to the Employee
from time to time by the Board of Directors of the Employer.

                  (b)      Employment Period. The period commencing on the date
of this Agreement and ending on the date on which this Agreement is terminated
is referred to herein as the "Employment Period." During the Employment Period,
the Employee will be an at-will employee of the Employer. The Employment Period
shall be freely terminable for any reason by either party at any time.

                  SECTION 2. Compensation and Benefits. During the Employment
Period:

                  (a)      Base Compensation. The Employer shall pay to the
Employee a base salary of $250,000 per annum (the "Base Salary"), payable in
accordance with the Employer's payroll practices. The Base Salary shall be
increased (but not decreased) subject to additional discretionary increases (but
not decreased) as determined periodically by the Board of Directors.

                  (b)      Additional Compensation. As additional compensation
for the Services, the Employer shall pay to the Employee an amount equal to the
greater of (x) with respect to the remaining portion of calendar year 2000 and
calendar year 2001, annual fixed bonus payments (the "Fixed Bonus") equal to 20%
of the Employee's Base Salary for such year or parts of year on a pro-rata
basis, and (y) (i)with respect to the remainder of calendar year 2000 and for
calendar year 2001, an annual bonus payment at the "Lower", "Target" or "Upper"
percentage payment levels, as the case may be, in accordance with the terms and
conditions of the Employer's 2000 Executive Bonus Plan, or (ii) with respect to
subsequent calendar years, other
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annual incentive compensation as the Board of Directors of the Employer
determines in its sole discretion to pay the Employee, payable in all cases on
or around April 1 of the following year. The Employee will be entitled to
participate in the 2000 Executive Bonus Plan on a pro-rata percentage for the
period from the date hereof to the end of the year as a Level I Employee. The
Employee acknowledges that the Employer may terminate or modify its Executive
Bonus Plan and other incentive plans at any time, although no termination or
amendment affecting the Employee will be made effective unless it is
consistently applied to other employees participating in such plans. In the
event of any conflict or inconsistency between the terms of the any Executive
Bonus Plan and the terms of Section 2(b) or 3 of this Agreement, the terms of
Sections 2(b) and 3 of this Agreement shall control.

                  (c)      Non-Competition Payments. In consideration of the
covenants contained in Section 5 hereof, the Employer shall pay to the Employee
an amount equal to $137,500 in two installments. The first installment shall be
in the amount of $82,500 and shall be payable on the date which is ninety (90)
days from the date hereof. The second installment shall be in the amount of
$55,000 and shall be payable on the date which is one hundred eighty (180) days
from the date hereof.

                  (d)      Stock Options. The Employee has been granted options
to acquire shares of Class A Common Stock of the Employer, pursuant to the Stock
Option Agreement, dated as of the date hereof, between the Employer and the
Employee (the "1999 Stock Option Agreement"). The stock options granted to the
Employee under the 1999 Stock Option Agreement are granted pursuant to the
Employer's 1999 Stock Option Plan and are subject to vesting in accordance with
the terms of the 1999 Stock Option Agreement Except as otherwise provided in the
1999 Stock Option Agreement and in this Agreement with respect to payments under
the Executive Bonus Plan and except as hereafter mutually agreed by the Employer
and the Employee, in the event of a Change in Control (as defined below), to the
extent not fully vested at such time, the Employee shall become fully vested in
all awards heretofore or hereafter granted to him under all incentive
compensation, deferred compensation, stock option, stock appreciation rights,
restricted stock, phantom stock or other similar plans maintained by the
Employer.

                  (e)      Benefit Plans. During the Employment Period, the
Employee shall be entitled to receive benefits from the Employer consistent with
those currently in effect for the Employer's senior executives (including
deferred compensation plans, and company automobile and financial planning
perquisites), as those benefits are revised from time to time by the Board of
Directors of the Employer. Nothing contained herein is intended to require the
Employer to maintain any existing benefits or create any new benefits. The
Employee will be entitled to participate in the Employer's deferred compensation
program on a basis consistent with the other Division Presidents and for the
partial year 2000 a pro-rata contribution from the date of this Agreement to the
end of the year and each full year thereafter during the Employment Period based
on an annual Employer contribution level of $16,000 per year in accordance with
the Heafner Tire Group, Inc., deferred compensation program as that program is
revised from time to time by the Board of Directors. If the Employment Period is
terminated by the Employer or the Employee as set forth in Section 3(e)(ii)
below, the Employee and relevant family members shall be entitled to continue to
participate in the Employer's welfare benefit plans at the Employer's expense
for a period of 18 months after the termination date. If the Employment Period
is terminated by the Employer or the Employee as set forth in Section 3(e)(iii)
below, the

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Employee and relevant family members shall be entitled to continue to
participate in the Employer's welfare benefit plans at the Employer's expense
for a period of three years after the termination date. For purposes of this
Section 2(d), the Employees' relevant family members shall be those members of
the Employee's immediate family covered by the applicable welfare benefit plan
immediately prior to the termination date.

                  (f)      Vacation and Holidays. The Employee shall be entitled
to a minimum of four weeks' vacation each year and paid holidays in accordance
with the Employer's policy.

                  (g)      No Mitigation. The Employee shall not be required to
mitigate the amount of any payments under this Agreement (whether by seeking new
employment or in any other manner), nor shall any such payment be reduced by any
earnings that the Employee may receive from any other source.

                  SECTION 3. Termination.

                  (a)      Death or Disability. If the Employee dies during the
Employment Period, the Employment Period shall terminate as of the date of the
Employee's death. If the Employee becomes unable to perform the Services for 90
consecutive days due to a physical or mental disability, (i) the Employer may
elect to terminate the Employment Period at any time thereafter, and (ii) the
Employment Period shall terminate as of the date of such election. All
disabilities shall be certified by a physician acceptable to both the Employer
and the Employee, or, if the Employer and the Employee cannot agree upon a
physician within 15 days, by a physician selected by physicians designated by
each of the Employer and the Employee. The Employee's failure to submit to any
physical examination by such physician after such physician has given reasonable
notice of the time and place of such examination shall be conclusive evidence of
the Employee's inability to perform his duties hereunder.

                  (b)      Cause. The Employer, at its option, may terminate the
Employment Period and all of the obligations of the Employer under this
Agreement for Cause. The Employer shall have "Cause" to terminate the Employee's
employment hereunder after in the event of (i) the Employee's conviction of or
plea of guilty or nolo contendere to a felony involving moral turpitude, (ii)
the Employee's gross negligence in the performance of the Services, which is not
corrected within 15 business days after written notice, (iii) the Employee's
knowingly dishonest act, or knowing bad faith or willful misconduct in the
performance of the Services, which is not corrected within 15 business days
after written notice, or (iv) the Employee's material breach of any of his
obligations under Section 5, which is not corrected within a reasonable period
of time (determined in light of the cure, if any, appropriate to such material
breach, but in no event less than 15 business days) after written notice. If the
Employee is charged with a felony involving moral turpitude, then during the
period while such charge or related indictment remains outstanding and until
finally determined, the Employer shall have the right to suspend the Employee
without compensation.

                  (c)      Without Cause. The Employer, at its option, may
terminate the Employment Period without Cause at any time.

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                  (d)      Termination by Employee for Good Reason. The Employee
may terminate this Agreement upon 60 days' prior written notice to the Employer
for Good Reason (as defined below) if the basis for such Good Reason is not
cured within a reasonable period of time (determined in light of the cure
appropriate to the basis of such Good Reason, but in no event less than 15
business days) after the Employer receives written notice specifying the basis
of such Good Reason. "Good Reason" shall mean (i) the failure of the Employer to
pay any undisputed amount due under this Agreement or a reduction in Base
Salary, Fixed Bonus or benefits provided under this Agreement (other than
immaterial reductions in benefits or a reduction in benefits or salary
applicable to all of the Employer's bonus eligible employees) or a termination
of, or reduction in the percentage level of, the "plan" or "target" bonus
opportunity applicable to Employee from the "Plan" percentage level applicable
to a Level 1 Employee under the 2000 Executive Bonus Plan in effect on the date
hereof (the "Effective Date Plan Percentage"), (ii) a material diminution in the
status, position and responsibilities of the Employee or (iii) the Employer
requiring the Employee to be based at any office or location that requires a
relocation or commute greater than 50 miles from the office or location to which
the Employee is currently assigned, provided, however, that Good Reason shall
not be deemed to exist due to the travel requirements consistent with the
performance of the Employee's services hereunder.

                  (e)      Payments in the Event of Termination. (i) Basic
Termination Payment. Upon the termination of the Employment Period at any time
for any reason, the Employer shall pay to the Employee or his estate the Base
Salary earned to the date of termination, and if such termination occurs after
December 31st of any year for which a bonus is payable pursuant to Section 2(b)
but before such bonus has been paid, the Employer shall pay to the Employee or
his estate the bonus due for the preceding year.

                           (ii)     Additional Involuntary Termination Payment.
Upon the termination of the Employment Period at any time by the Employer
without Cause or by the Employee for Good Reason, the Employer shall pay to the
Employee within five business days of such termination a lump-sum amount (in
addition to the amount payable under the first sentence of Section 3(e)(i))
equal to (x) the sum of the Employee's annual Base Salary at the annual rate in
effect on the date of termination and the Severance Bonus Amount, multiplied by
(y) 1.5. Notwithstanding the foregoing, the Employee shall be entitled to no
payment under this Section 3(e)(ii) if he is entitled to receive a payment under
Section 3(e)(iii). "Severance Bonus Amount" means an amount equal to the
Employee's Base Salary at the annual rate in effect on the date of termination
multiplied by a percentage, which is the greater of (1) the Effective Date Plan
Percentage and (2) the "plan" or "target" bonus percentage then applicable under
any executive bonus plan or other incentive compensation program.

                           (iii)    Additional Change in Control Payment. Upon
the termination of the Employment Period (x) by the Employer without Cause upon
or prior to a Change in Control, provided that the Employee reasonably
demonstrates that such termination occurred at the request of a third party
participating in, or otherwise in anticipation of or in connection with, such
Change in Control, or (y) by the Employee with Good Reason or by the Employer
for any reason other than for Cause within one year after a Change in Control,
then the Employer shall pay to the Employee within five business days of such
termination a lump-sum amount (in addition to the amount payable under the first
sentence of Section 3(e)(i)) equal to the sum of (A)

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the higher of (1) the Employee's annual Base Salary at the date of such
termination or (2) the Employee's annual Base Salary at the time of the Change
in Control, in each case multiplied by three, and (B) the Severance Bonus Amount
multiplied by three. If the Employment Period is terminated by the Employee for
any reason other than with Good Reason on or after the first anniversary of a
Change in Control but no later than the 30th day after such first anniversary,
the Employee shall be entitled to 50% of the payments specified in this Section
3(e)(iii). If the Employment Period is terminated by the Employee with Good
Reason at any time on or after the first anniversary of a Change in Control, the
Employee shall be entitled to the payment specified in Section 3(e)(ii).

                           (iv)     Change in Control Defined. "Change in
Control" means the first to occur of any of the following: (A) the sale
(including by merger, consolidation or sale of stock of subsidiaries or any
other method) of all or substantially all of the assets of the Employer and its
consolidated subsidiaries (taken as a whole) to any person or entity not
directly or indirectly controlled by the holders of at least 50% of the Combined
Voting Power of the then outstanding shares of capital stock of the Employer
(excluding shares owned by employees of the Employer as of the date of
determination) (B) at any time prior to the consummation of an initial public
offering of Class A Common Stock of the Employer or other common stock of the
Employer having the voting power to elect directors, a transaction (except
pursuant to such initial public offering) resulting in the Principal
Shareholders owning, collectively, less than 50% of the Combined Voting Power of
the then outstanding shares of capital stock of the Employer (excluding shares
owned by employees of the Employer as of the date of determination), (C) at any
time after the consummation of an initial public offering of Class A Common
Stock of the Employer or other common stock of the Employer having the voting
power to elect directors, the acquisition (except pursuant to such initial
public offering) by any person or entity (other than the Principal Shareholders)
not directly or indirectly controlled by the Employer's stockholders of more
than 30% of the Combined Voting Power of the then outstanding shares of capital
stock of the Employer (excluding shares owned by employees of the Employer as of
the date of determination), (D) individuals serving as directors of the Employer
on the date hereof and who were nominated or selected to serve as directors by
one or more Principal Shareholders (together with any new directors whose
election was approved by a vote of (x) such individuals or directors whose
election was previously so approved or (y) Principal Shareholders holding a
majority of the aggregate voting power of the capital stock of the Employer held
by all Principal Shareholders) cease for any reason to constitute a majority of
the Board of Directors of the Employer, (E) the adoption of a plan relating to
the liquidation or dissolution of the Employer in connection with an equity
investment or sale or a business combination transaction or (F) any other event
or transaction that the Board of Directors of the Employer deems to be a Change
in Control. "Combined Voting Power" with respect to capital stock of the
Employer means the number of votes such stock is normally entitled (without
regard to the occurrence of any contingency) to vote in an election of directors
of the Employer. "Principal Shareholders" means (i) Charlesbank Equity Fund IV,
Limited Partnership and the investors in such fund, (ii) Charlesbank Equity Fund
IV G.P. Limited Partnership, (iii) Charlesbank Capital Partners, LLC (and any
other fund managed by Charlesbank Capital Partners, LLC), (iv) any investor
(other than The 1818 Mezzanine Fund, L.P.) whose investment in the Employer is
approved by the representative of management on the board of the Employer, (v)
any new investors in the Company designated as Principal Shareholders by
Charlesbank Capital Partners, LLC within one year of the initial investment by
Charlesbank Equity Fund IV, Limited Partnership, and (vi) any

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corporation, partnership, limited liability company or other entity a majority
of the capital stock or other ownership interests of which are directly or
indirectly owned by any of the foregoing.

                           (v)      Other Provisions Applicable to Payments. Any
amounts due under this Section 3 and not paid when due shall bear interest
(compounded annually) for the period from and including the date payable to but
excluding the date paid at a rate per annum equal to the sum of (x) four percent
and (y) the rate publicly announced by BankBoston, N.A. as its "prime rate."

                  (f)      Termination of Obligations. In the event of
termination of the Employment Period in accordance with this Section 3, all
obligations of the Employer and the Employee under this Agreement shall
terminate, except for any amounts payable by the Employer as specifically set
forth in Section 3(e); provided, however, that notwithstanding anything to the
contrary contained in this Agreement, the provisions of Section 5 shall survive
such termination in accordance with their respective terms and the relevant
provisions of Section 6 shall survive such termination indefinitely. In the
event of termination of the Employment Period in accordance with this Section 3,
the Employee agrees to cooperate with the Employer in order to ensure an orderly
transfer of the Employee's duties and responsibilities.

                  SECTION 4. Parachute Excise Tax Gross-Up.

                  (a)      If, as a result of any payment or benefit provided
under this Agreement or under any other plan, arrangement or other agreement
with the Employer or any entity affiliated with the Employer, either alone or
together with such other payments and benefits which the Employee receives or is
then entitled to received from the Employer, the Employee becomes subject to the
excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code"), (together with any interest and penalties thereon an
"Excise Tax"), the Employer shall pay the Employee an amount (the "Gross-Up
Payment") sufficient to place the Employee in the same after-tax financial
position that he would have been in if he had not incurred any tax liability
under Section 4999 of the Code. For purposes of determining whether the Employee
is subject to an Excise Tax and the amount of any Gross-Up Payment, (i) any
payments or benefits received by the Employee (whether pursuant to the terms
hereof or pursuant to any plan, arrangement or other agreement with the Employer
or any entity affiliated with the Employer) which payments ("Contingent
Payments") are deemed to be contingent on a change described in Section
280G(b)(2)(A)(i) of the Code shall be taken into account and (ii) the Employee
shall be deemed to pay federal, state and local taxes at the highest marginal
applicable rates of such taxes for the calendar year in which the Gross-Up
Payment is to be made, net of the maximum deduction from federal income taxes
which could be obtained from deduction of any state and local taxes deemed paid
by the Employee.

                  (b)      The determination of whether the Employee is subject
to Excise Tax and the amounts of such Excise Tax and Gross-Up Payment, as well
as other calculations hereunder, shall be made at the expense of the Employer by
Arthur Andersen, which shall provide the Employee with prompt written notice
(the "Employer Notice") setting forth their determinations and calculations.
Within 30 days following the receipt by the Employee of the Employer Notice, the
Employee may notify the Employer in writing (the "Employee Notice") if the
Employee disagrees with such determinations or calculations, setting forth the
reasons for any such

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disagreement. If the Employer and the Employee do not resolve such disagreement
within 10 business days following receipt by the Employer of the Employee
Notice, such dispute will be resolved in accordance with Section 6(f). The
Employer shall pay all reasonable expense incurred by either party in connection
with the determinations, calculations, disagreements or resolutions pursuant to
this paragraph, including, but not limited to, reasonable legal, consulting or
other similar fees.

                  (c)      The Employee shall notify the Employer in writing of
any claim by the Internal Revenue Service that, if successful, would require the
payment by the Employer of a Gross-Up Payment. Such notification shall be given
as soon as practicable but no later than 10 business days after the Employee is
informed in writing of such claim and shall apprise the Employer of the nature
of such claim and the date of which such claim is requested to be paid. The
Employee shall not pay such claim prior to the expiration of the 30 day period
following the date on which the Employee gives such notice to the Employer (or
such shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Employer notifies the Employee in writing prior to
the expiration of such period that it desires to contest such claim, the
Employee shall:

                           (i)      give the Employer any information reasonably
requested by the Employer relating to such claim;

                           (ii)     take such action in connection with
contesting such claim as the Employer shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation with
respect to such claim by an attorney reasonably selected by the Employer and
reasonably satisfactory to the Employee;

                           (iii)    cooperate with the Employer in good faith in
order to effectively contest such claim; and

                           (iv)     permit the Employer to participate in any
proceedings relating to such claim; provided, however, that the Employer shall
bear and pay directly all costs and expenses (including, but not limited to,
additional interest and penalties and related legal, consulting or other similar
fees) incurred in connection with such contest and shall indemnify and hold the
Employee harmless, on an after-tax basis, for any Excise Tax or other tax
(including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses.

                  (d)      The Employer shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Employee to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Employee agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Employer shall
determine; provided, however, that if the Employer directs the Employee to pay
such claim and sue for a refund, the Employer shall advance the amount of such
payment to the Employee on an interest-free basis, and shall indemnify and hold
the Employee harmless, on an after-tax basis, from any Excise Tax or other

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tax (including interest or penalties with respect thereto) imposed with respect
to such advance or with respect to any imputed income with respect to such
advance; and provided, further, that if the Employee is required to extend the
statute of limitations to enable the Employer to contest such claim, the
Employee may limit this extension solely to such contested amount. The
Employer's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Employee shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority. In addition, no position
may be taken nor any final resolution be agreed to by the Employer without the
Employee's consent if such position or resolution could reasonably be expected
to adversely affect the Employee (including any other tax position of the
Employee unrelated to the matters covered hereby).

                  (e)      As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the
Employer hereunder, it is possible that Gross-Up Payments which will not have
been made by the Employer should have been made ("Underpayment"), consistent
with the calculations required to be made hereunder. In the event that the
Employer exhausts its remedies and the Employee thereafter is required to pay to
the Internal Revenue Service an additional amount in respect of any Excise Tax,
the Employer (in the same fashion as set forth in Section 4(b) shall determine
the amount of the Underpayment that has occurred and any such Underpayment shall
promptly be paid by the Employer to or for the benefit of the Employee.

                  (f)      If, after the receipt by Employee of an amount
advanced by the Employer in connection with the contest of an Excise Tax claim,
the Employee becomes entitled to receive any refund with respect to such claim,
the Employee shall promptly pay to the Employer the amount of such refund
(together with any interest paid or credited thereon after taxes applicable
thereto). If, after the receipt by the Employee of an amount advanced by the
Employer in connection with an Excise Tax claim, a determination is made that
Employee shall not be entitled to any refund with respect to such claim and the
Employer does not notify the Employee in writing of its intent to contest the
denial of such refund prior to the expiration of 30 days after receiving notice
of such determination, such advance shall be forgiven and shall not be required
to be repaid and the amount of such advance shall be offset, to the extent
thereof, by the amount of the Gross-Up Payment.

                  SECTION 5. Confidential Information; Non-Competition.

                  (a)      Non-Disclosure of Confidential Information.

                           (i)      For the Employment Period and at all times
         thereafter, the Employee covenants and agrees that he will not disclose
         "Confidential Information" (as herein defined) to persons other than
         Employer and its Affiliates and their employees and except as necessary
         in connection with the advancement of the interests of Employer. For
         purposes of this Agreement, "Confidential Information" shall mean all
         confidential, proprietary or secret information whether or not reduced
         to writing relating to the products, equipment or business of Employer
         and its Affiliates submitted to the Employee or received, compiled,
         developed, designed, produced or otherwise discovered by the Employee
         from time to time during the Employment Period. Confidential

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         Information may include, without limitation, all plans, records,
         customer lists, forms, formulae, designs, specifications, drawings,
         computer programs, inventions, discoveries, methods of manufacture,
         price lists, trade secrets and business secrets. Confidential
         Information shall not include information which (i) is or becomes
         available to the public from a source other than the Employee; or (ii)
         becomes known by Employee from a third party source having the right to
         disclose the information.

                           (ii)     The Employee specifically acknowledges that
         Confidential Information, whether compiled or created by Employer or by
         the Employee or otherwise, derives independent economic value from not
         being readily known to or ascertainable by proper means by others who
         can obtain economic value from the disclosure of Confidential
         Information and that any retention and/or disclosure or other use of
         Confidential Information by Employee during or after the termination of
         the Employee's employment with Employer (except in the regular course
         of performing his duties hereunder) will constitute a misappropriation
         of Confidential Information belonging to Employer.

                           (iii)    The Employee agrees that upon termination of
         his employment with Employer, for any reason, voluntary or involuntary,
         with or without Cause, he will immediately return to Employer any
         Confidential Information, copies of the same, and any other property
         belonging to Employer, within his possession, and will not at any time
         thereafter copy, reproduce or otherwise facilitate the future
         disclosure of the same. The Employee agrees that, following such
         termination of employment, he shall not disclose or use any
         Confidential Information which he receives, compiles, develops,
         designs, produces or otherwise discovers from time to time during the
         Employment Period and that all embodiments of such information shall
         belong to Employer or its affiliates, as the case may be. The Employee
         further agrees that he will not retain or use for his account at any
         time any trade names, trade mark, service mark, or other proprietary
         business designation used or owned in connection with the business of
         Employer or any of its affiliates.

                           (iv)     The Employee's obligations under this
         Section 5(a) will survive termination of his employment for any reason.
         The Employee shall not be prohibited from disclosing Confidential
         Information to the extent required by law or judicial or administrative
         proceeding (after providing Employer with notice and an opportunity to
         contest such requirement) to make disclosure.

                  (b)      Noncompetition.

                           (i)      Period of Covenant. The term of the
         following noncompetition covenant shall be during the Employment Period
         and a period of eighteen months after the termination of the Employment
         Period for any reason. Such period is hereinafter referred to as the
         "Noncompetition Period".

                           (ii)     Nature and Scope of Covenant. The Employee
         covenants and agrees not to carry on or engage in, directly or
         indirectly, on his own behalf or by or

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         through any other person or entity, any business or other activity in
         competition with the Business (as defined above) during the
         Noncompetition Period within (i) the United States (ii) the
         Northeastern and Mid-Atlantic United States, (iii) the states of New
         York, Pennsylvania, West Virginia, Virginia, Maryland and North
         Carolina and (iv) the geographic area within 100 miles of any location
         from which the Business is now or hereafter conducted (the "Restricted
         Territory"). Without limiting the generality of the foregoing, the
         Employee covenants and agrees that during the Noncompetition Period and
         except in connection with his employment by Employer he will not,
         directly or indirectly, engage in any of the following activities:

                           (A)      own any interest in (other than ownership of
                  less than five percent (5%) of the voting securities of a
                  publicly traded company), manage or serve as an employee of or
                  consultant, business advisor or independent contractor, either
                  directly or indirectly, for any individual, corporation,
                  partnership, association, joint venture or other entity which
                  is engaged in a business in competition with the Business;

                           (B)      solicit business similar to the Business
                  from any customer that has done business with, or potential
                  customers that have been in contact with Employer during the
                  Employment Period.

                           (C)      make a loan to, or guarantee the obligations
                  of, any individual or entity engaged in a business in
                  competition with the Business or make a loan to, or guarantee
                  the obligations of, any owner, officers, director, partner or
                  shareholder thereof;

                           (D)      request, induce or attempt to influence any
                  customer or any supplier of goods or services to the Employer
                  to curtail or cancel any business it transacts with the
                  Employer with respect to the Business; or

                           (E)      request, induce or attempt to influence any
                  employee of the Employer to terminate his or her employment
                  with the Employer, or attempt to dissuade any then current
                  employee of the Employer from continuing employment with the
                  Employer.

                  SECTION 6. General Provisions.

                  (a)      Enforceability. It is the desire and intent of the
parties hereto that the provisions of this Agreement shall be enforced to the
fullest extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, although the Employee
and the Employer consider the restrictions contained in this Agreement to be
reasonable for the purpose of preserving the Employer's goodwill and proprietary
rights, if any particular provision of this Agreement shall be adjudicated to be
invalid or unenforceable, such provision shall be deemed amended to delete
therefrom the portion thus adjudicated to be invalid or unenforceable, such
deletion to apply only with respect to the operation of such provision in the
particular jurisdiction in which such adjudication is made. It is expressly

                                       10
<PAGE>   11

understood and agreed that although the Employer and the Employee consider the
restrictions contained in Section 5 to be reasonable, if a final determination
is made by a court of competent jurisdiction that the time or territory or any
other restriction contained in this Agreement is unenforceable against the
Employee, the provisions of this Agreement shall be deemed amended to apply as
to such maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable.

                  (b)      Remedies. The parties acknowledge that the Employer's
damages at law would be an inadequate remedy for the breach by the Employee of
any provision of Section 5, and agree in the event of such breach that the
Employer may obtain temporary and permanent injunctive relief restraining the
Employee from such breach, and, to the extent permissible under the applicable
statutes and rules of procedure, a temporary injunction may be granted
immediately upon the commencement of any such suit. Nothing contained herein
shall be construed as prohibiting the Employer from pursuing any other remedies
available at law or equity for such breach or threatened breach of Section 5 or
for any breach or threatened breach of any other provision of this Agreement.

                  (c)      Withholding. The Employer shall withhold such amounts
from any compensation or other benefits payable to the Employee under this
Agreement on account of payroll and other taxes as may be required by applicable
law or regulation of any governmental authority.

                  (d)      Employer's Successors. The Employer shall require any
successor or successors (whether direct or indirect and whether by purchase,
lease, merger, consolidation, liquidation or otherwise) to all or substantially
all of the Employer's business and/or assets, by an agreement in substance and
form satisfactory to the Employee, to assume this Agreement and to agree
expressly to perform this Agreement in the same manner and to the same extent as
the Employer would be required to perform it in the absence of a succession. The
Employer's failure to obtain such agreement prior to the effectiveness of a
succession shall be a breach of this Agreement and shall entitle the Employee to
all of the compensation and benefits to which he would have been entitled
hereunder if the Employer had involuntarily terminated his employment without
Cause immediately after such succession become effective. For all purposes under
this Agreement, the term "Employer" shall include any successor or successors to
the Employer's business and/or assets which executes and delivers the assumption
agreement described in the subsection or which becomes bound by this Agreement
by operation of law.

                  (e)      Employee's Successors. This Agreement and all rights
of the Employee hereunder shall inure to the benefit of, and be enforceable by,
the Employee's personal or legal representatives, executors, administrators,
successors, heirs, distributee, devisees and legatees.

                  (f)      Indemnity. The Employer hereby agrees to indemnify
and hold the Employee harmless consistent with the Employer's policy against any
and all liabilities, expenses (including attorneys' fees and costs), claims,
judgments, fines, and amounts paid in settlement actually and reasonably
incurred in connection with any proceeding arising out of the Employee's
employment with the Employer (whether civil, criminal, administrative or
investigative, other than proceedings by or in the right of the Employer), if
with respect to the actions at issue in the proceeding the Employee acted in
good faith and in a manner Employee

                                       11
<PAGE>   12

reasonably believed to be in, or not opposed to, the best interests of the
Employer, and (with respect to any criminal action) Employee had no reason to
believe Employee's conduct was unlawful. Said indemnification arrangement shall
(i) survive the termination of this Agreement, (ii) apply to any and all
qualifying acts of the Employee which have taken place during any period in
which he was employed by the Employer, irrespective of the date of this
Agreement or the term hereof, including, but not limited to, any and all
qualifying acts as an officer and/or director of any affiliate while the
Employee is employed by the Employer and (iii) be subject to any limitations
imposed from time to time under applicable law.

                  (g)      Dispute Resolution; Attorney's Fees. Except as
provided above in Section 6(b), the Employer and the Employee agree that any
dispute arising as to the parties' rights and obligations hereunder shall be
resolved by binding arbitration before an arbitrator to be determined by
mutually agreeable means. In such event, each of the Employer and the Employee
shall have the right to full discovery. The Employer shall bear all costs of the
arbitrator in any such proceeding, and if the arbitration is definitively
decided in the Employee's favor, the Employee shall have the right, in addition
to any other relief granted by such arbitrator, to recover reasonable attorneys'
fees; provided, however, that the Employer shall have the right, in any dispute
other than a dispute relating to the occurrence of a Change in Control or the
payment of an amount under Section 3(e)(iii), in addition to any other relief
granted by such arbitrator, to recover reasonable attorneys' fees in the event
that the arbitration is definitively decided in the Employer's favor (with the
amount of such fees being limited to those expended defending the claim or
claims decided in favor of the Employer). Any judgment by such arbitrator may be
entered into any court with jurisdiction over the dispute.

                  (h)      Acknowledgment. The Employee acknowledges that he has
been advised by the Employer to seek the advice of independent counsel prior to
reaching agreement with the Employer on any of the terms of this Agreement. The
parties agree that no rule of construction shall apply to this Agreement which
construes ambiguous language in favor of or against any party by reason of that
party's role in drafting the Agreement.

                  (i)      Amendments and Waivers. No modification, amendment or
waiver, of any provision of, or consent required by, this Agreement, nor any
consent to any departure herefrom, shall be effective unless it is in writing
and signed by the parties hereto. Such modification, amendment, waiver or
consent shall be effective only in the specific instance and for the purpose for
which given.

                  (j)      Notices. All notices or other communications which
are required or permitted hereunder shall be in writing and sufficient if
delivered personally or sent by registered or certified mail, postage prepaid,
return receipt requested, sent by overnight courier, or sent by facsimile (with
confirmation of receipt), addressed as follows:

                           If to the Employer:

                                    Heafner Tire Group, Inc.
                                    2105 Water Ridge Parkway, Suite 500
                                    Charlotte, North Carolina  28217
                                    Attention:  President
                                    Facsimile:  (704) 423-8987

                                       12
<PAGE>   13

                           with a copy to:

                                    Covington & Burling
                                    1330 Avenue of the Americas
                                    New York, New York  10019
                                    Attention:  Scott F. Smith
                                    Facsimile:  (212) 841-1010

                           and:

                                    Charlesbank Capital Partners, LLC
                                    600 Atlantic Avenue
                                    Boston, Massachusetts 02210-2203
                                    Attention:  Mark A. Rosen and Tami E. Nason
                                    Facsimile:  (617) 619-5402

                           with a copy to:

                                    Skadden, Arps, Slate Meagher & Flom LLP
                                    919 Third Avenue
                                    New York, NY 10022
                                    Facsimile:  (212) 735-2000
                                    Attention:  David J. Friedman

                           If to the Employee:

                                    James Matthews
                                    9504 Nelson Lane
                                    Manassas, Virginia 20110

                           With a copy to:

                                    Morgan, Lewis & Bockius
                                    1800 M Street, N.W.
                                    Washington, District Of Columbia 20036-5869
                                    Attn: Robert J. Smith
                                    Facsimile: 202-467-7176

                                       13
<PAGE>   14

                           or at such other address as the party to whom notice
is to be given may have furnished to the other party in writing in accordance
herewith. If such notice or communication is mailed, such communication shall be
deemed to have been given on the fifth business day following the date on which
such communication is posted.

                  (j)      Descriptive Headings; Certain Interpretations.
Descriptive headings are for convenience only and shall not control or affect
the meaning or construction of any provision of this Agreement. Except as
otherwise expressly provided in this Agreement: (i) any reference in this
Agreement to any agreement, document or instrument includes all permitted
supplements and amendments; (ii) a reference to a law includes any amendment or
modification to such law and any rules or regulations issued thereunder; (iii)
the words "include," "included" and "including" are not limiting; and (iv) a
reference to a person or entity includes its permitted successors and assigns.

                  (k)      Counterparts; Entire Agreement. This Agreement may be
executed in any number of counterparts, and each such counterpart hereof shall
be deemed to be an original instrument, but all such counterparts together shall
constitute one agreement. This Agreement and the 1999 Stock Option Agreement
contain the entire agreement among the parties with respect to the transactions
contemplated by this Agreement and the 1999 Stock Option Agreement and supersede
all other or prior written or oral agreements or understandings among the
parties with respect to the Employee's employment by the Employer.

                  (L)      GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NORTH
CAROLINA.

                  (M)      CONSENT TO JURISDICTION. EACH OF EMPLOYEE AND
EMPLOYER HEREBY IRREVOCABLY AND, WITH RESPECT TO ANY CLAIMS BROUGHT UNDER
SECTION 6(B) OF THIS AGREEMENT OR WITH RESPECT TO THE ENFORCEMENT OF ANY
ARBITRAL AWARD AS PROVIDED IN SECTION 6(G) OF THIS AGREEMENT, UNCONDITIONALLY
SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT IN
CHARLOTTE, NORTH CAROLINA FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS WHICH ARISE
OUR OF OR RELATE TO THIS AGREEMENT, AND EACH OF EMPLOYEE AND EMPLOYER AGREES NOT
TO COMMENCE ANY LEGAL PROCEEDING RELATED THERETO EXCEPT IN SUCH COURT. EACH OF
EMPLOYEE AND EMPLOYER IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY OBJECTION WHICH IT MAY NOW OF HEREAFTER HAVE TO THE LAYING OF VENUE IN
ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

                                       14
<PAGE>   15

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

                                       HEAFNER TIRE GROUP, INC.

                                       By:
                                          -------------------------------------
                                          Donald C. Roof
                                          President and Chief Executive Officer

                                       /s/ James Matthews
                                       ----------------------------------------
                                       James Matthews, Employee<PAGE>   1
                                                                   EXHIBIT 10.33

                                                                  EXECUTION COPY

                           AMENDMENT NO. 4 AND WAIVER
                                       to
                           SECOND AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

         THIS AMENDMENT NO. 4 AND WAIVER is entered into as of March 30, 2001 by
and among HEAFNER TIRE GROUP, INC., a Delaware corporation, WINSTON TIRE
COMPANY, a California corporation, THE SPEED MERCHANT, INC., a California
corporation, CALIFORNIA TIRE COMPANY, a California corporation (the
"Borrowers"), the financial institutions party from time to time to the Loan
Agreement (as hereinafter defined) (the "Lenders"), and FLEET CAPITAL
CORPORATION, a Rhode Island corporation, as administrative agent (the
"Administrative Agent") for the Lenders.

                              Preliminary Statement

         The Borrowers, the Lenders and the Administrative Agent are parties to
the Second Amended and Restated Loan and Security Agreement dated as of March 6,
2000, as amended by Amendment No. 1 dated as of July 20, 2000, Amendment No. 2
dated as of February 2, 2001 and Amendment No. 3 dated as of February 14, 2001
(the "Loan Agreement"; terms defined therein, unless otherwise defined herein,
being used herein as therein defined).

         The Borrowers are in default of certain financial covenants set forth
in the Loan Agreement as a result of which the Lenders are entitled to exercise
their remedies under the Loan Agreement (the "Existing Defaults"). The Borrowers
have requested that the Lenders waive the Existing Defaults and amend the Loan
Agreement as hereinafter set forth and the Lenders have agreed to grant such
waivers and so to amend the Loan Agreement, upon and subject to the terms and
conditions of this Amendment.

                             Statement of Agreement

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

         Section 1. Amendment to Loan Agreement. Subject to the provisions of
SECTION 3, the Loan Agreement is hereby amended by:

<PAGE>   2

         (a) amending Section 1.1 Definitions by deleting therefrom the
definitions "Applicable Margin", "Borrowing Base", "EBIT", " EBITDA" and
"Revolving Credit Facility" and substituting therefor the following respective
definitions:

                  "Applicable Margin" from and after the Amendment No. 4
         Effective Date means as to each Type of Loan, the Tier I rate per annum
         set forth under the appropriate caption on the pricing matrix attached
         hereto as ANNEX B, subject to quarterly adjustment as follows: From and
         after delivery of the consolidated quarterly financial statements of
         Heafner and its Consolidated Subsidiaries for the Fiscal Quarter ending
         on or about June 30, 2001 and each Fiscal Quarter ending thereafter and
         the related officer's certificate in accordance with the respective
         provisions of SECTIONS 10.1(B) and 10.3, the foregoing percentages will
         be adjusted, PROVIDED that no Default or Event of Default has occurred
         and is continuing, effective the first day of the calendar month that
         begins at least 10 days after delivery of such financial statements for
         such Fiscal Quarter or any succeeding Fiscal Quarter, to the
         percentages set forth in ANNEX B that correspond to the Leverage Ratio
         reflected in such financial statements and the related certificate.

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

                  (a)      the aggregate Commitments, MINUS the sum of

                           (i)      the Letter of Credit Reserve, PLUS

                           (ii)     the Rent Reserve, PLUS

                           (iii)    any Additional Reserves, and

                  (b)      an amount equal to

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

                           (ii) the lesser of

                                    (A) 65% (or such lesser percentage as the
                  Administrative Agent may in its reasonable credit judgment
                  determine from time to time) of the lesser of cost determined
                  on a FIFO (or first-in-first-out) accounting basis and fair
                  market value of Eligible Inventory consisting of tires, at
                  such time, and

                                    (B) $100,000,000, PLUS

                           (iii) the lesser of

                                    (A) 50% (or such lesser percentage as the
                  Administrative Agent may in its reasonable credit judgment
                  determine from time to time) of the lesser

                                       2
<PAGE>   3

                  of cost determined on a FIFO (or first-in-first-out)
                  accounting basis and fair market value of Eligible Inventory
                  other than tires, at such time, and

                                    (B) $40,000,000, MINUS

                           (iv) the sum of

                                    (A) the Letter of Credit Reserve, PLUS

                                    (B) the Rent Reserve, PLUS

                                    (C) the Dilution Reserve, PLUS

                                    (D) the Minimum Availability Reserve, PLUS

                                    (E) any Additional Reserves.

                  "EBIT" for any specified accounting period for a specified
         Person, means Net Income of such Person(s) for such period before
         provision for net interest expense and income taxes PLUS, in the case
         of EBIT of Heafner, up to $3,500,000 in non-recurring charges related
         to what is commonly referred to by the Borrowers as the "Riggs
         Settlement" deducted in computing Net Income of Heafner for such
         specified period.

                  "EBITDA" for any specified accounting period for a specified
         Person means EBIT for such period for such Person PLUS depreciation and
         amortization expense deducted in computing such EBIT.

                  "Revolving Credit Facility" means the credit facility
         providing for Revolving Credit Loans based upon the Borrowing Base and
         described in SECTION 2.1 up to an aggregate principal amount at any one
         time outstanding not to exceed $180,000,000 or such lesser or greater
         amount as shall be agreed upon from time to time in writing by the
         Administrative Agent, the Syndication Agent, the Documentation Agent,
         the Lenders and the Borrowers.

         (b) amending Section 1.1 Definitions by adding the following
definitions thereto in the appropriate alphabetical order:

                  "Amendment No. 4" means the Amendment No. 4 and Waiver to the
         Second Amended and Restated Loan and Security Agreement between the
         Borrowers, the Lenders and the Administrative Agent dated as of March
         30, 2001.

                  "Amendment No. 4 Effective Date" means the date on which
         Amendment No. 4 shall have become effective in accordance with its
         terms.

                                       3
<PAGE>   4

                  "EBITDA - Heafner Group" means for any specified accounting
         period, EBITDA of Heafner and its Consolidated Subsidiaries other than
         Winston on a consolidated basis for such period, as reported in
         accordance with GAAP.

                  "EBITDA - Winston" means for each of the four Fiscal Quarters
         of Fiscal Year 2000 (i) ($657,000), (ii) ($3,251,000), (iii)
         ($3,842,000) and (iv) ($13,009,000), respectively, and for any
         specified accounting period ending after the last day of Fiscal Year
         2000, EBITDA of Winston for such period, as reported pursuant to
         SECTION 10.1(C).

                  "Leverage Ratio" means as of any specified date, the ratio of
         (a) total Debt of Heafner and its Consolidated Subsidiaries on a
         consolidated basis as of such date to (b) the sum of (i) EBITDA -
         Heafer, plus (ii) EBITDA - Winston for the period of four consecutive
         Fiscal Quarters ended on or most recently before such date; PROVIDED,
         HOWEVER, that from and after the earlier of the date on which (x)
         Heafner no longer owns, directly or indirectly, any shares of the
         capital stock of Winston or (y) a balance sheet of Winston prepared on
         a basis consistent with the financial statements prepared and submitted
         pursuant to SECTION 10.1(C) would reflect no assets or liabilities,
         EBITDA - Winston shall not be included in the calculation of the
         Leverage Ratio.

                  "Minimum Availability Reserve" means $15,000,000 or such
         greater amount as the Administrative Agent may in its reasonable credit
         judgment determine from time to time.

                  "Series C Preferred Stock Purchase Agreement" means the Share
         Purchase Agreement dated as of March 30, 2001 among Heafner,
         Charlesbank Equity Fund IV, Limited Partnership, and The 1818 Mezzanine
         Fund, L.P., as in effect on the Amendment No. 4 Effective Date and as
         amended after the Amendment No. 4 Effective Date in accordance with the
         terms of this Agreement.

         (c) amending Section 4.6(b) Termination of Agreement by amending
subpart (iv) thereof by substituting the phrase "the earlier of March 30, 2001
and the Amendment No. 4 Effective Date" for the phrase "the Effective Date" the
three times it appears therein;

         (d) amending Section 8.12(c) Cash Receipts and Disbursements Forecasts;
Borrowing Base Certificate in its entirety to read as follows:

                  (c) Cash and Collateral Reporting. The Borrowers shall deliver
         to the Administrative Agent (i) not less frequently than weekly the
         forecasted cash receipts and disbursements, in form and substance
         satisfactory to the Administrative Agent, of Heafner and its
         Subsidiaries, on a consolidated basis, for the succeeding 13 weeks,
         (ii) not later than Wednesday of each week, a Borrowing Base
         Certificate prepared as of the close of business on the preceding
         Friday, (iii) not less frequently than weekly, as requested by the
         Administrative Agent, a weekly summary accounts payable aging, and

                                       4
<PAGE>   5

         (iv) on the 20th day of each calendar month, a Borrowing Base
         Certificate prepared as of the last Business Day of the preceding
         Fiscal Month.

         (e) amending Section 10.1 Financial Statements by redesignating
subsection (c) as subsection (d) and inserting therein immediately following
subsection (b) a new subsection (c) to read as follows:

                  (c) Winston Financial Statements. As soon as available after
         the end of each Fiscal Month, but in any event within 30 days after the
         end of each Fiscal Month (or 45 days after the end of any Fiscal Month
         that is the last Fiscal Month of a Fiscal Quarter), copies of the
         unaudited balance sheet of Winston as at the end of such Fiscal Month
         and the related unaudited statements of operations and cash flows for
         Winston for such Fiscal Month and for the portion of the Fiscal Year
         through such Fiscal Month, certified by a Financial Officer as
         presenting fairly the financial condition and results of Winston to the
         maximum extent possible as if it were a continuing operation (subject
         to audit adjustments) for the applicable period(s);

         (f) amending Section 10.3 Officer's Certificate by amending subsection
(a) thereof in its entirety to read as follows:

                  (a) setting forth as at the end of such Fiscal Quarter or
         Fiscal Year, as the case may be, the calculations required to establish
         whether or not the Borrowers were in compliance with the requirements
         of SECTIONS 11.1, 11.2 and 11.5 as at the end of each respective period
         and the calculations necessary to determine the Leverage Ratio as at
         the end of each respective period, and

         (g) amending Section 11.1 Financial Covenants in its entirety to read
as follows:

                  SECTION 11.1 Financial Covenants.

                  (a) Minimum EBITDA. Permit EBITDA - Heafner Group or EBITDA -
         Winston, for any period specified on SCHEDULE 11.1(A) attached hereto,
         to be less (or more negative) than the amount set forth opposite such
         period on SCHEDULE 11.1(A).

                  (b) Minimum Fixed Charge Coverage. Permit the ratio of (i) the
         sum of EBITDA - Heafner Group, plus EBITDA - Winston, plus, during the
         period from the Amendment No. 4 Effective Date through the last day of
         the first Fiscal Quarter of Fiscal Year 2002, $12,000,000 (attributable
         to the amount of equity contributed in cash to Heafner on or
         immediately prior to the Amendment No. 4 Effective Date), minus cash
         taxes paid, minus Capital Expenditures (other than Financed Capex) to
         (ii) the sum of interest expense, plus scheduled principal payments on
         Debt (other than the Loans), in each case for Heafner and its
         Consolidated Subsidiaries (and Winston, to the extent not otherwise
         included therein) on a consolidated basis, for any period specified on
         SCHEDULE

                                       5
<PAGE>   6

         11.1(B) attached hereto, to be less than the ratio set forth opposite
         such period on SCHEDULE 11.1(B).

                  (c) Minimum Tangible Capital Funds. At any time during any
         Fiscal Month specified on SCHEDULE 11.1(C) attached hereto, permit the
         sum of Net Worth (including, without duplication, any amount of equity
         contributed in cash to Heafner from time to time on or after the
         Amendment No. 4 Effective Date, but excluding the effect of any gain or
         loss recognized by Heafner in connection with the disposition of
         Winston, and excluding up to $3,379,000 attributable to an adjustment
         to deferred taxes of Heafner resulting in a negative adjustment to Net
         Worth effective December 30, 2000), plus the outstanding principal
         amount of the Senior Notes, minus the aggregate net book value of all
         intangible assets, to be less than the amount set forth opposite such
         Fiscal Month.

         (h) amending Section 11.4 Acquisitions in its entirety to read as
follows:

                  SECTION 11.4 Acquisitions. Acquire, after the Amendment No. 4
         Effective Date, any Business Unit or Investment or, after the Amendment
         No. 4 Effective Date, maintain any Investment other than Permitted
         Investments.

         (i) amending Section 11.5 Capital Expenditures in its entirety to read
as follows:

                  SECTION 11.5 Capital Expenditures. Make or incur any Capital
         Expenditures (excluding Financed Capex) in the aggregate in excess of
         (i) $6,750,000 for Fiscal Year 2001 and (ii) $12,000,000 for any Fiscal
         Year thereafter, PROVIDED that any amount of such allowance not used in
         a Fiscal Year may be carried forward, but only to the succeeding Fiscal
         Year.

         (j) amending Section 11.11 Amendments of Other Agreements by
redesignating clause (iii) thereof as clause (iv) and inserting a new clause
(iii) immediately following clause (ii) thereof to read as follows:

                  (iii) the Series C Preferred Stock Purchase Agreement

         (k) amending Section 15.9(b)(iii) in its entirety to read as follows:

                  (iii) except to the extent expressly provided in SECTIONS 4.7
         and 14.1, no amendment shall be made to the definition of any of the
         following terms, "Applicable Margin", "Borrowing Base" (except as
         otherwise expressly contemplated hereunder) and the defined terms used
         in such definition, EXCEPT that the Required Lenders may reduce the
         Minimum Availability Reserve to an amount less than $15,000,000,
         "Eligible Assignee", "Proportionate Share", "Ratable", "Ratable Share",
         "Commitment Percentage", "Secured Obligations", or "Commitment";

         (l) amending Section 15.2(a)(iv) by deleting therefrom the phrase "two
times per year" and substituting therefor the phrase "three times per year";

                                       6
<PAGE>   7

         (m) further amending the Loan Agreement by deleting Annex A -
Commitments and Annex B - Pricing Matrix and substituting therefor a new Annex A
- Commitments and a new Annex B - Pricing Matrix in the forms attached hereto as
ANNEX 1 and ANNEX 2, respectively, and adding thereto new Schedules 11.1(a),
11.1(b) and 11.1(c) in the respective forms attached hereto as ANNEXES 3, 4 and
5.

         Section 2. Waiver. Effective in accordance with SECTION 3 hereof, the
Lenders hereby waive compliance and the effects of noncompliance by the
Borrowers with (a) the provisions of Section 11.1(a) (Minimum Net Worth) and
Section 11.1(c) (Minimum Interest Coverage Ratio) of the Loan Agreement as of
and for the Fiscal Year ended December 30, 2000 and (b) the provisions of
Section 9.4 (Conduct of Business) to the extent that classifying the operations
of Winston as "discontinued" would otherwise result in a violation thereof.

         Section 3. Effectiveness of Amendment. The provisions of SECTIONS 1 and
2 of this Amendment shall become effective as of the date hereof on the date
(the "Amendment Effective Date") on which the Administrative Agent shall have
received (1) an amendment fee in the amount of $450,000 for the Ratable account
of the Lenders and (2) the following documents, each of which shall be
satisfactory in form and substance to the Administrative Agent and in sufficient
copies for each Lender:

         (a) at least seven copies of this Amendment duly executed by the
Borrowers, the Subsidiary Guarantors and the Lenders;

         (b) a certificate of the president or chief financial officer of
Heafner stating that, to the best of his knowledge and based on an examination
sufficient to enable him to make an informed statement, after giving effect to
the Amendment,

                  (i) all of the representations and warranties made or deemed
                  to be made under the Loan Agreement are true and correct in
                  all material respects on and as of the Amendment Effective
                  Date, and

                  (ii) no Default or Event of Default exists;

and the Administrative Agent shall be satisfied as to the truth and accuracy
thereof;

         (c) evidence satisfactory to it that the Investors (as defined in the
Series C Preferred Stock Purchase Agreement) have made or committed to make an
additional cash equity contribution to Heafner in an aggregate amount not less
than $12,000,000 on terms and conditions satisfactory to the Administrative
Agent and the Lenders in their reasonable discretion;

         (d) an appraisal of all Inventory of the Loan Parties performed by
Hilco Appraisal Services, LLC, or another qualified independent appraiser
acceptable to the Administrative Agent, in form and substance satisfactory to
the Administrative Agent;

                                       7
<PAGE>   8

         (e) evidence satisfactory to the Administrative Agent that, effective
as of the last day of Fiscal Year 2000, the net assets of Winston shall appear
on the consolidated balance sheet of Heafner and its Consolidated Subsidiaries
as "held for sale" and the business of Winston shall be accounted for as a
discontinued operation; and

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

         Section 4. Additional Event of Default. The failure by the Investors
(as defined in the Series C Preferred Stock Purchase Agreement) to satisfy
timely their respective commitments to make additional cash equity contributions
to Heafner in an aggregate amount not less than $12,000,000, in each case upon
the terms set forth in the Series C Preferred Stock Purchase Agreement, shall,
at the option of the Required Lenders, constitute an Event of Default under the
Loan Agreement.

         Section 5. Representations and Warranties. Each Borrower hereby makes
the following representations and warranties to the Administrative Agent and the
Lenders, which representations and warranties shall survive the delivery of this
Amendment and the making of additional Loans under the Loan Agreement as amended
hereby:

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

         (b) Compliance of Agreements with Laws. The execution, delivery and
performance of this Amendment and each other agreement contemplated hereby to
which such Borrower is a party in accordance with their respective terms do not
and will not, by the passage of time, the giving of notice or otherwise,

                  (i) require any Governmental Approval or violate any
         Applicable Law relating to such Borrower or any of its Subsidiaries,

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

                                       8
<PAGE>   9

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

         Section 6. Effect of Amendment. From and after the Amendment Effective
Date, all references in the Loan Agreement and in any other Loan Document to
"this Agreement," "the Loan Agreement," "hereunder," "hereof" and words of like
import referring to the Loan Agreement, shall mean and be references to the Loan
Agreement as amended by this Amendment. Except as expressly amended hereby, the
Loan Agreement and all terms, conditions and provisions thereof remain in full
force and effect and are hereby ratified and confirmed. The execution, delivery
and effectiveness of this Amendment shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of the Administrative
Agent and the Lenders under any of the Loan Documents, nor constitute a waiver
of any provision of any of the Loan Documents.

         Section 7. Counterpart Execution; Governing Law.

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

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

                                       9
<PAGE>   10

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

                                               BORROWERS:

                                               HEAFNER TIRE GROUP, INC.

[CORPORATE SEAL]

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

                                               WINSTON TIRE COMPANY

[CORPORATE SEAL]

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

                                               By: /s/ David H. Taylor
                                                   ----------------------------
                                                   Name: David H. Taylor
                                                         ----------------------
                                                   Title: Vice President
                                                          ----------------------

                                       10
<PAGE>   11

                                               THE SPEED MERCHANT, INC.

[CORPORATE SEAL]

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

                                               By: /s/ David H. Taylor
                                                   ----------------------------
                                                   Name: David H. Taylor
                                                         ----------------------
                                                   Title: Vice President
                                                          ----------------------

                                               CALIFORNIA TIRE COMPANY

[CORPORATE SEAL]

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

                                               By: /s/ David H. Taylor
                                                   ----------------------------
                                                   Name: David H. Taylor
                                                         ----------------------
                                                   Title: Vice President
                                                          ----------------------

                                       11
<PAGE>   12

                                          FLEET CAPITAL CORPORATION, as
                                          Administrative Agent and as a Lender

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

                                          BANK OF AMERICA, N.A., as Syndication
                                          Agent and as a Lender

                                          By: /s/ ???????????????
                                              ---------------------------------
                                              Name:
                                                    ---------------------------
                                              Title:
                                                    ---------------------------

                                          FIRST UNION NATIONAL BANK, as
                                          Documentation Agent and as a Lender

                                          By: /s/ John T. Trainor
                                              ---------------------------------
                                              Name: John T. Trainor
                                                    ---------------------------
                                              Title: Vice President
                                                    ---------------------------

                                          MELLON BANK, N.A., as a Lender

                                          By: /s/ Roger D. ??????
                                              ---------------------------------
                                              Name: Roger D. ??????
                                                    ---------------------------
                                              Title: V.P.
                                                    ---------------------------

                                          PNC BANK, NATIONAL ASSOCIATION, as a
                                          Lender

                                          By: /s/ John W. Speiser
                                              ---------------------------------
                                              Name: John W. Speiser
                                                    ---------------------------
                                              Title: Vice President
                                                    ---------------------------

                                       12
<PAGE>   13

                                              GUARANTORS:

                                              Acknowledged and consented to this
                                              3rd day of April 2001:

                                              T.O. HAAS TIRE COMPANY, INC.

                                              By: /s/ J. Michael Gaither
                                                  -----------------------------
                                                  Name: J. Michael Gaither
                                                        -----------------------
                                                  Title: Vice President
                                                         ----------------------

                                              T.O. HAAS HOLDING CO., INC.

                                              By: /s/ J. Michael Gaither
                                                  -----------------------------
                                                  Name: J. Michael Gaither
                                                        -----------------------
                                                  Title: Vice President
                                                         ----------------------

                                              HAAS INVESTMENT COMPANY

                                              By: /s/ J. Michael Gaither
                                                  -----------------------------
                                                  Name: J. Michael Gaither
                                                        -----------------------
                                                  Title: Vice President
                                                         ----------------------

                                       13
<PAGE>   14

                                     ANNEX 1

                                   COMMITMENTS

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

                      LENDER                COMMITMENT         COMMITMENT (IN $)
                                            PERCENTAGE
--------------------------------------------------------------------------------

Fleet Capital Corporation                     32.50%               58,500,000
--------------------------------------------------------------------------------

First Union National Bank                     22.50%               40,500,000
--------------------------------------------------------------------------------

Bank of America, N.A.                         22.50%               40,500,000
--------------------------------------------------------------------------------

Mellon Bank, N.A.                             11.25%               20,250,000
--------------------------------------------------------------------------------

PNC Bank, National Association                11.25%               20,250,000
================================================================================

                      TOTAL                    100%               180,000,000

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

                                       14
<PAGE>   15

                                     ANNEX 2

                                 PRICING MATRIX

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
         Tier                  LEVERAGE           EURODOLLAR RATE           BASE RATE          UNUSED COMMITMENT
                                 RATIO                 LOANS                  LOANS                   FEE
--------------------------------------------------------------------------------------------------------------------
<S>                      <C>                      <C>                       <C>                <C>

Tier I                   > 5.50 to 1                    3.25%                 2.00%                  0.500%
                         -
--------------------------------------------------------------------------------------------------------------------
                         > 5.00 to 1 and
                         -
Tier II                  < 5.50 to 1                    3.00%                 1.75%                  0.500%
--------------------------------------------------------------------------------------------------------------------
                         > 4.50 to 1 and
                         -
Tier III                 < 5.00 to 1                    2.75%                 1.50%                  0.500%
--------------------------------------------------------------------------------------------------------------------
                         > 4.00 to 1 and
                         -
Tier IV                  <  4.50 to 1                   2.50%                 1.25%                  0.375%
--------------------------------------------------------------------------------------------------------------------
                         > 3.50 to 1 and
                         -
Tier V                   < 4.00 to 1                    2.00%                 0.75%                  0.375%
--------------------------------------------------------------------------------------------------------------------

Tier VI                  < 3.50 to 1                    1.75%                 0.50%                  0.375%
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       15
<PAGE>   16

                                     ANNEX 3

                                SCHEDULE 11.1(a)

                             EBITDA - Heafner Group

The period of four consecutive
Fiscal Quarters ending with:                             EBITDA - Heafner Group
------------------------------                           ----------------------

The last day of the first Fiscal Quarter
of Fiscal Year 2001                                            $37,000,000

The last day of the second Fiscal Quarter
of Fiscal Year 2001                                            $37,000,000

The last day of the third Fiscal Quarter
of Fiscal Year 2001                                            $34,000,000

The last day of the fourth Fiscal Quarter
of Fiscal Year 2001                                            $35,000,000

The last day of the first Fiscal Quarter
of Fiscal Year 2002                                            $36,000,000

The last day of the second Fiscal Quarter
of Fiscal Year 2002                                            $37,500,000

The last day of the third Fiscal Quarter
of Fiscal Year 2002                                            $39,500,000

The last day of the fourth Fiscal Quarter of
Fiscal Year 2002 and the last day of each                      $41,000,000
Fiscal Quarter ending thereafter

                                       16
<PAGE>   17

                            Minimum EBITDA - Winston

Period                                                   EBITDA - Winston
------                                                   ----------------

The first and second Fiscal Quarters of
Fiscal Year 2001                                            ($8,000,000)

The first, second and third Fiscal Quarters
of Fiscal Year 2001                                         ($8,000,000)

The period of four consecutive Fiscal
Quarters ending on the last day of Fiscal Year 2001         ($8,000,000)

The period of four consecutive Fiscal Quarters
ending on the last day of the first Fiscal Quarter
of Fiscal Year 2002                                         ($3,400,000)

The period of four consecutive Fiscal Quarters
ending on the last day of the second Fiscal Quarter           ($300,000)
of Fiscal Year 2002

Each period of four consecutive Fiscal Quarters
ending thereafter                                                     $0

                                       17
<PAGE>   18

                                     ANNEX 4

                                SCHEDULE 11.1(b)

         Period                                               Ratio
         ------                                               -----

The second Fiscal Quarter of Fiscal
Year 2001                                                     1.70 to 1

The second and third Fiscal Quarters
of Fiscal Year 2001                                           1.60 to 1

The second, third and fourth Fiscal
Quarters of Fiscal Year 2001                                  1.50 to 1

The period of four consecutive Fiscal
Quarters ending on the last day of the
first Fiscal Quarter of Fiscal Year 2002                      1.20 to 1

The periods of four consecutive Fiscal
Quarters ending on the last day of the
second and third Fiscal Quarters of Fiscal                    1.00 to 1
Year 2002

The periods of four consecutive Fiscal
Quarters ending on the last day of the
fourth Fiscal Quarter of Fiscal Year 2002                     1.10 to 1
and the last day of each Fiscal Quarter
ending thereafter

                                       18
<PAGE>   19

                                     ANNEX 5

                                SCHEDULE 11.1(c)

During the Fiscal Month                       Tangible Capital Funds
-----------------------                       ----------------------

April, 2001                                       $28,000,000
May, 2001                                         $28,000,000
June, 2001                                        $30,000,000
July, 2001                                        $30,000,000
August, 2001                                      $30,000,000
September, 2001                                   $34,000,000
October, 2001                                     $34,000,000
November, 2001                                    $34,000,000
December, 2001                                    $34,000,000
January, 2002                                     $34,000,000
February, 2002                                    $34,000,000
March, 2002                                       $34,000,000
April, 2002                                       $35,000,000
May, 2002                                         $35,000,000
June, 2002                                        $37,000,000
July, 2002                                        $37,000,000
August, 2002                                      $37,000,000
September, 2002                                   $40,000,000
October, 2002                                     $40,000,000
November, 2002                                    $40,000,000
December, 2002                                    $40,000,000

Each Fiscal Month thereafter                      $40,000,000, as increased by
                                                  $2,000,000 on the last day of
                                                  the Fiscal Months of
                                                  June and December of each
                                                  Fiscal Year commencing on
                                                  the last day of the Fiscal
                                                  Month of June, 2003

                                       19

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