Exhibit 10(1)

 

AMENDMENT TO SERVICE AGREEMENT

BETWEEN 7-ELEVEN, INC. AND MCLANE COMPANY, INC.

 

* - Confidential portions of this Amendment have been omitted and filed
separately with the Securities and Exchange Commission under a confidential
treatement request pursuant to Rule 24b-2 of the Securities Exchange Act of
1934, as amended.

 

This Amendment to Service Agreement (“Amendment”) is made and entered into on
this 7th day of April, 2005 by and between 7-ELEVEN, INC., a Texas corporation
(“7-Eleven”), and MCLANE COMPANY, INC., a Texas corporation (“Vendor”).

 

W I T N E S S E T H:

 

WHEREAS, 7-Eleven and Vendor are parties to that certain Service Agreement made
and entered into as of September 21, 2002 which has been previously amended
prior to the date hereof (the “Agreement”);

 

WHEREAS, 7-Eleven and Vendor desire to further amend the Agreement as set out
below; and

 

WHEREAS, capitalized terms used in this Amendment that are not defined shall
have the same meaning ascribed to such terms as in the Agreement.

 

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements
in the Agreement and herein, the parties hereto agree as follows:

 

1. Section 16.1 of the Agreement is amended by replacing “January 31, 2006” with
“January 31, 2008”, and by replacing “September 22, 2005” with “September 22,
2007” in each place wherever found in Section 16.1.

 

2. Section 5.1 of the Agreement is amended by deleting the fourth sentence and
replacing it as follows:

 

When and if Vendor delivers products to a CDC, (a) Vendor shall (i) reduce the
applicable Billing Plan markup for such products that are picked in bulk by *
basis points, including any individually picked product to the extent the total
daily order to Vendor for such product is equal to or exceeds a full case; (ii)
reduce the applicable Billing Plan markup for such products that are
individually picked by * basis points (iii) to the extent the Billing Plan does
not apply to a particular product delivered through the CDC (e.g. BIB), make
available and offer to 7-Eleven a mutually acceptable reduction off of the store
delivered price for such product, and (b) all such purchases shall be applied to
all calculations of Vendor rebates and incentives set forth herein provided
7-Eleven furnishes store and item level detail for such purchases in a mutually
agreed upon format.

 

3. Effective January 1, 2005, Section 6.4 of the Agreement is amended by
replacing “all suppliers” with “all other designated wholesale vendors as shown
on the attached list, cash purchase transactions and Vendor” in the third
sentence of Section 6.4, and by adding a new fourth sentence as follows: “At
least twice a year, 7-Eleven and Vendor agree to review and modify, if
necessary, the list of other designated wholesalers that may be servicing Stores
and any such modifications to the list shall be in writing and signed by the
parties”. In addition, effective January 1, 2005, the chart at the end of
Section 6.4 is deleted and replaced with the chart shown immediately below:

 

*

 

Tab 1

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4. Section 8.3 of the Agreement is deleted and replaced with the following new
Section 8.3:

 

Effective with 2005 reroutes to the Stores after June 1, 2005, and for the
remainder of the Agreement, Vendor shall provide a minimum of two deliveries per
week to each Store using the order schedule for each Store of either
Sunday/Wednesday, Monday/Thursday, or Tuesday/Friday provided that each Store
makes available to set such scheduling at least 45 hours for the week, and
provided further that, in the case of a Franchisee, the Franchisee has requested
such twice a week delivery. The actual delivery days and times shall be mutually
agreed upon between 7-Eleven and Vendor with input from Franchisees to the
extent applicable as provided in Section 8.5. If Vendor fails to make at least 2
deliveries per week to any Store, Vendor agrees to pay as a charge, and not as a
penalty, the amount of $* to each Store for each such failure. Such charge shall
be paid through an invoice credit to each affected Store to be received by the
Store within 30 days following the quarter after a quarterly review and
reconciliation between 7-Eleven and Vendor.

 

5. Section 8.4 of the Agreement is deleted and replaced with the following new
Section 8.4:

 

Effective by July 1, 2005, electronic orders placed each day by each Store by
the 7-Eleven cut-off time of 10:00 a.m. local Store time shall be processed and
delivered by Vendor seven days per week, 362 days per year to each model market
Store within 42 hours of such order placement with Vendor and shall be processed
and delivered by Vendor to each non model market Store within 54 hours of such
order placement with Vendor unless, in each case, an express written exception
has been granted by 7-Eleven. 7-Eleven will provide to Vendor consolidated and
edited ready to process order data each day by 11:00 a.m. local Store time. If
Vendor fails to meet such 42 hour or such 54 hour order to delivery for any
Store, as applicable, Vendor agrees to pay as a charge, and not as a penalty,
the amount of $* to each Store for each such failure. Such charge shall be paid
through an invoice credit to each affected Store to be received by the Store
within 30 days following the quarter after a quarterly review and reconciliation
between 7-Eleven and Vendor. 7-Eleven shall provide Vendor with the current list
of designated 7-Eleven model market Stores and shall provide Vendor with at
least 30 days notice of any additional model market Store designations.

 

6. Section 8.5 of the Agreement is deleted and replaced with the following new
Section 8.5:

 

  (a)

For purposes of this Section 8.5, “Appointment Time” shall be defined as the
time of day that Vendor shall deliver product to each Store *. Such Appointment
Time shall be documented in writing by the parties and cannot be changed unless
agreed to in writing by the parties. Vendor shall deliver product to each Store
no more than two and one-half hours before nor more than thirty minutes after
the Appointment Time (such time period being defined as the “Accepted Delivery
Window”). Unless another time period has been specifically designated by
7-Eleven in writing, Vendor recognizes and agrees that the high

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

 

traffic period between the hours of 5:00 a.m. to 9:00 a.m. local Store time
shall be excluded from any Appointment Times and that deliveries shall not take
place during such high traffic period. Vendor acknowledges that its failure to
deliver product to each Store within the Accepted Delivery Window will result in
Store inefficiencies and potential reductions in 7-Eleven Store customer service
and traffic. Accordingly, if Vendor fails to deliver product to any Store within
such Accepted Delivery Window more than * times within a * month period (such
periods to commence on July 1, 2005), Vendor agrees to pay as a charge, and not
as a penalty, the amount of $* to each Store for each subsequent delivery made
by Vendor outside such Accepted Delivery Window in 2005, with such charge
increasing to $* in 2006 and for the remainder of the Agreement. Notwithstanding
the foregoing charges and payments for failure by Vendor to deliver product
within such Accepted Delivery Window, if Vendor’s applicable distribution center
meets at least a *% on-time delivery threshold for any week in which such
payments were applicable (determined using the Acceptable Delivery Windows for
all Stores serviced by such distribution center), 7-Eleven shall reimburse
Vendor for any such payments made to any Store serviced by such distribution
center following a quarterly review and reconciliation between 7-Eleven and
Vendor. Further, if Vendor, at any time, delivers product to any Store more than
two hours later than the Appointment Time, Vendor agrees to pay as a charge, and
not as a penalty, the amount of $* to each Store in 2005 for each such delivery,
with such charge increasing to $* in 2006 and for the remainder of the
Agreement; provided, however, Vendor will not be obligated to pay the foregoing
charge if it is obligated to make a payment, as provided above, for failing to
meet the Accepted Delivery Window to the extent related to the same delivery.
Any of the foregoing payment charges to be made by Vendor shall be paid by
Vendor through an invoice credit to each affected Store to be received by the
Store within 30 days following the quarter after a quarterly review and
reconciliation between 7-Eleven and Vendor.

 

  (b) Commencing on June 1, 2005 and for the remainder of the Agreement, Vendor
shall also provide night deliveries between the hours of 6:00 p.m. and 5:00 a.m.
local Store time to all non model market Stores requesting such night delivery
as required herein. Vendor shall fully implement procedures to accommodate any
such night delivery requests. Vendor agrees, to the extent such non model market
Stores request it, that it shall provide an average of no less than *% nighttime
deliveries by end of 2005, an average of no less than *% nighttime deliveries in
2006, and an average of no less than *% nighttime deliveries in 2007 and for the
remainder of the Agreement. Each year, for each * percent by which Vendor falls
below the foregoing yearly average nighttime delivery percentages, Vendor shall
pay 7-Eleven as a charge, and not as a penalty, the amount of $*. Such
payment(s) shall be made no later than by February 10th of the following year
following a review and reconciliation between 7-Eleven and Vendor prior to such
date. Vendor also agrees, notwithstanding any other delivery times that may be
required by any Store (whether such Store is a model market or non model market
Store), that Vendor shall not deliver (and there shall be no Vendor delivery
vehicle on the Store lot) between the hours of 5:00 a.m. and 9:00 a.m. local
Store time. If Vendor delivers product to any Store during the restricted hours
of 5:00 a.m. to 9:00 a.m. local Store time, Vendor agrees to pay as a charge,
and not as a penalty, the amount of $* to each Store for each such delivery. The
foregoing payment charge shall be paid through an invoice credit to each
affected Store to be received by the Store within 30 days following the quarter
after a quarterly review and reconciliation between 7-Eleven and Vendor.

 

 

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

7. Section 8.9 of the Agreement is deleted and replaced with the following new
Section 8.9:

 

  (a) Vendor agrees to maintain the minimum delivery service fill rates (the
“Required Fill Rates”) for the categories of products ordered by the Stores in
each of the areas serviced by each of Vendor’s Distribution Centers (each a
“Service Area”) as such categories and rates are set forth on the table attached
hereto and made a part hereof as Schedule 8.9. Vendor recognizes that no excuses
for failing to meet these rates shall be permitted other than force majeure as
provided in Article XIX. For purposes of this Section 8.9, the delivery service
fill rates will be calculated and expressed in dollars and the delivery service
fill rates shall be defined as the product unit selling price from the Vendor to
the Store multiplied by the number of Store product units delivered to the Store
by the Vendor divided by the product unit selling price from the Vendor to the
Store multiplied by the product selling units ordered by the Store and the
resulting quotient thereof multiplied by 100. The delivery service fill rates
described in this Section 8.9 shall be calculated to the nearest one-hundredth
of one percent by the Vendor and reported to 7-Eleven by the Vendor for each
Distribution Center within 30 days following each quarter of the Agreement.

 

  (b) Effective July 1, 2005 and for the remainder of the Agreement, if the
Vendor delivery service fill rates for any quarter and for any given category or
categories as calculated in the aggregate for all Stores in each Service Area
(the “Actual Vendor Fill Rates”) are less than the applicable Required Fill
Rates as set forth in Schedule 8.9 for such category or categories, Vendor shall
pay 7-Eleven as a charge and not as a penalty the sum of $* for every * percent
that the Vendor’s Actual Vendor Fill Rates in each applicable category or
categories is less than the corresponding Required Fill Rates.

 

An example of how the calculation will specifically work is set forth on
Schedule 8.9.

 

  (c) All payments from Vendor for failure to meet the Required Fill Rates shall
be made to 7-Eleven within 10 days following 7-Eleven’s receipt of the report
referenced in 8.9(a). 7-Eleven acknowledges that the foregoing charges are
intended as an incentive for Vendor to meet the required delivery service fill
rates and are not a penalty and that any such payments shall be considered
liquidated damages that may be claimed by 7-Eleven for failure by Vendor to meet
the service rates set forth herein.

 

8. A new Section 8.14 is added to the Agreement as follows:

 

8.14 No later than by June 1, 2005, Vendor shall provide deliveries seven days
per week to all CDC’s subject to the following exceptions and qualifications:

 

  (a) Such deliveries shall not be required on Christmas Day, New Year’s Day or
Thanksgiving Day.

 

  (b) Where the weight of product deliveries to either a single CDC or group of
CDC’s serviced by a single truck is less than an average of * pounds per day
during the week, at 7-Eleven’s option, either (i) the weekly delivery frequency
will be adjusted to accommodate a * pound minimum (e.g. if the average weekly
CDC deliveries total * pounds, an adjustment would be made from seven to four
deliveries per week), or (ii) 7-Eleven will pay as a charge and not as a penalty
the amount of $* for any additional load during the week that caused the average
per day for the week to be less than * pounds for a given CDC or group of CDC’s.
7-Eleven shall be granted until July 31, 2005 to achieve the * pound minimum
before being required to exercise any option as provided in this Section 8.14(b)
above.

 

  (c) Vendor agrees to consolidate loads to CDC’s where commercially reasonable
to do so.

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9. Section 13.2 of the Agreement is amended by adding the following new sentence
at the end of such section:

 

Vendor shall also pay to 7-Eleven the amount of $* on September 21, 2005, and
the same amount on September 21, 2006, all in the same manner as such payments
have been made prior to the date hereof.

 

10. Section 15.1 is amended by deleting the fourth and fifth sentence and
replacing them with the following:

 

*

 

11. In order to make certain recognized and needed corrections and to evidence
the established billing plan practices of the parties, Schedule 5.1 (the “Former
Billing Plan”) of the Agreement is deleted and replaced by new Schedule 5.1a
(the “Correction Billing Plan”) attached hereto and made a part hereof. The
changes from the Former Billing Plan are noted as “changes” on the last page of
the Correction Billing Plan.

 

12. A new section 14.5 is added to the Agreement as follows:

 

14.5 Vendor recognizes that 7-Eleven is developing and is planning to implement
retailer initiated invoicing, global data synchronization and electronic
check-in commencing in the latter part of 2005. Vendor shall cooperate and work
with 7-Eleven on processes and systems to support and implement each of these
initiatives. Vendor agrees, notwithstanding anything in the Agreement to the
contrary, that Vendor will be solely responsible for costs and expenses of any
Vendor-related programming or system changes or work associated with such
initiatives unless Vendor demonstrates to 7-Eleven’s reasonable satisfaction
that such costs and expenses are directly attributable to an exclusive and
proprietary method of doing business with 7-Eleven and such changes or work
cannot be leveraged or used by Vendor with any of Vendor’s other customers. In
such event, Vendor shall submit a written statement to 7-Eleven describing the
scope of work and containing a firm estimate of the total cost and expense, and
7-Eleven and Vendor will mutually agree on the manner in which such work shall
be funded .

 

Except as specifically amended by this Amendment, the Agreement as previously
amended shall remain in full force and effect and is hereby ratified and
confirmed.

 

This Amendment may be executed in counterparts, each of which shall be deemed an
original, and all of which shall constitute one and the same instrument.

 

This Amendment shall be binding upon all the parties to the Agreement and their
respective successors and assigns.

 

This Amendment shall be governed by and construed in accordance with the laws of
the State of Texas without regard to its conflict of law rules or principles.

 

 

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

This Amendment has been executed by the duly authorized representatives of the
parties as of the date first above set forth.

 

MCLANE COMPANY, INC.   7-ELEVEN, INC.

By:

 

/s/ Terry L. McElroy

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

  By:  

/s/ Cynthia L. Davis

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

Name:

  Terry L. McElroy   Name:   Cynthia L. Davis

Title:

  President   Title:   Vice President, Demand Chain         ATTEST:        

/s/ Steven R. Seldowitz

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

        Assistant Secretary

 

 

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Schedule 8.9

Wholesale PSA Service Fill Rate Requirements

 

PSA
Code

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

  

PSA Name

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

   Minimum
Quarterly
Fill Rate

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

  12    Cigarettes    * % 24    Non-Alcoholic Beverages    * % 13    Cold
Dispensed Bevs    * % 14    Confectionery    * % 17    Food Service    * % 32   
Tobacco        23    Hot Beverages        30    Snacks    * % 22    Health &
Beauty Care        20    Non-Foods        21    Packaged Foods        29   
Refrigerated Food Products        53    Store Supply        16   
Electronics/Battery/Film        18    Frozen Food        31    Soap/Cleaning   
* % 15    Dairy        33    Wearing Apparel        51    Electronic Supply     
  36    Bakery        52    Food Service Supply        50    Beverage Supply   
    27    Stationery        35    Gasoline        34    Services        19   
Frozen Treats        28    Publications       

 

 

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

McLane Fill Rate Example

 

PSA Name

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

  

Required
Fill

Rate

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

    Actual
Vendor
Fill
Rate

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

    Fill Rate
Difference
@
Nearest
tenth of
1%

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

    Incentive
Payment
@ $* per
*%

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

14    Confectionery    * %   * %   * %   $ * 18    Frozen Food    * %   * %   *
%   $ *

 

 

 

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SCHEDULE 5.1a

 

Billing Plan — Schedule of Mark Ups by Vendor Distribution Centers

 

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  UINDept

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Description

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    NW S/S

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MI

Fran

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    MW
S/S

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    NC S/S

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    MY S/S

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    MY
Fran

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  20000    Grocery Default    * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * %   * %   * % 20601    Grocery*1, *2    * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 20602    Soft
Drinks/Isotonics*2    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * % 20603    Fountain Syrups/Bib*3    * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 20604    Juices    *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %
20605    Drink Powders/Liquid Mixes    * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * %   * % 20606    Cookies/Crackers    * %   * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 20608   
Nuts/Snacks    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * % 20610    Automotive/Motor Oil    * %   * %   * %   * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * % 20611    Nacho Chips    * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %
20612    Coffee Vending Institutional    * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * % 20614    Bulk Popcorn/Supplies    * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %
20620    Disposable Lighters    * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * % 20721    Cups/lids/logo items    * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 20722   
Store supplies/racks    * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * %   * % 20723    Bags (Paper, Plastic)    * %   * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 20925    Candy
(Full Case)    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * % 20926    Candy (Bag)    * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * % 21030    Candy (Count Goods)    * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %
21235    Tobacco Smokeless/Snuff (Grocery)    * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * % 21338    Tobacco Chewing/Smoking
(Grocery)    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * % 21339    Cigarette Papers/Smoking Accs (Grocery)    * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21442   
Tobacco Cigars (Grocery)    * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * % 21545    Frozen Food (Retail)    * %   * %   * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21546    Frozen
Food (Bulk/Portion Pack)    * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %

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    UIN PRICE RULE =>

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   97110

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    97114

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    87111

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    97110

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    97114

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    97114

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    97111

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    97110

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    97114

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  UINDept

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Description

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    ME S/S

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    NE
Fran

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    NW S/S

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    MS
Fran

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    MZ
Corp

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    MZ
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    MY S/S

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    MY
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  21547    Deli Meat/Bulk/PPK Frozen    * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * % 21548    Bakery Frozen    * %   * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21649   
Frozen Fast Food/Desserts    * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * % 21650    Frozen Sandwiches    * %   * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21651    Frozen
Fast Food/Pizza/Burrittos    * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * % 21652    Ice Cream (Take Home)    * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21653   
Frozen Ice Cream Novelties    * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * %   * %   * % 21757    Refrigerated    * %   * %   * %   * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21758    Refrigerated
Juice/Shakes    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * % 21759    Packaged Cheese    * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * % 21760    Refrigerated Bakery   
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
% 21761    Eggs    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * % 21762    Produce    * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * % 21865    Frozen Beef    * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21866   
Processed Meats    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * % 21867    Wafer Meats    * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * %   * %   * % 21868    Fresh Box Beef    * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21869
   Fresh Poultry    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * % 21870    Fresh Fish    * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * %   * %   * % 21871    Deli Meat/Bulk/PPK/Cooler
   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %  
* % 21872    Deli Cheese/Bulk/PPK    * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * %   * %   * %   * % 21873    Deli Salads/Bulk/PPK    * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21874   
Frozen Potatoes    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * % 21875    Frozen Poultry    * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * % 21876    Frozen Pork    * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21877
   Fresh Salads    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * % 21878    Fresh Bulk Veg.    * %   * %   * %   * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %

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

    UIN PRICE RULE =>

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

   97110

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

    97110

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

    97114

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    87111

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

    97114

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

    97110

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

    97114

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    97114

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    97114

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

    97114

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

    97111

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

    97110

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

    97114

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

    97114

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

  UINDept

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

  

Description

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

   SW S/S

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

    ME S/S

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

    NE
Fran

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

    NW S/S

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

    MS
Fran

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

    MZ
Corp

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    MZ
Fran

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

    SZ
Fran

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    MP
Fran

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    MI
Fran

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    MW S/S

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

    NC S/S

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

    MY S/S

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

    MY
Fran

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

  21879    Fresh Bulk Fruits    * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * % 21880    Produce PerPackaged    * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 21881   
Frozen Seafood (Food Service)    * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * % 32002    Health Care    * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 32003    Beauty Care
   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %  
* % 32104    Hair Care    * %   * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * % 32105    Toys/Games/Novelties    * %   * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 32106   
School/Office products    * %   * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * % 32108    School Paper (all types)    * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 32110   
Caps/Hats    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * % 32112    Gloves    * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * % 32114    Soft Goods    * %   * %   * %   * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * % 32115    Baby    * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %
32116    Hosiery    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * % 32117    Shoecare    * %   * %   * %   * %   * %   * %   *
%   * %   * %   * %   * %   * %   * %   * % 32118    Sunglasses    * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 32120   
Misc General Merchandise    * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * % 32122    Pet Supplies    * %   * %   * %   * %   *
%   * %   * %   * %   * %   * %   * %   * %   * %   * % 32123    Auto
Accessories    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %  
* %   * %   * % 32124    Household    * %   * %   * %   * %   * %   * %   * %  
* %   * %   * %   * %   * %   * %   * % 32125    Sewing Accessories    * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 32126   
Hardware    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * % 32127    Electrical    * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %   * %   * %   * %   * % 32128    Light Bulbs    * %   * %   * %  
* %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * % 32130   
Film/Tapes/CD’s/Computer    * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * % 32134    Batteries    * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * % 32138    Disposable
Lighters    * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   * %   *
%   * %   * %

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

    UIN PRICE RULE =>

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

   97110

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

    97110

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

    97114

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

    87111

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

    97114

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

    97110

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

    97114

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

    97114

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

    97114

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

    97114

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

    97111

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

    97110

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

    97114

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

    97114

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

  UINDept

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

  

Description

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

   SW S/S

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

    ME S/S

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

    NE
Fran

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

    NW S/S

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

    MS
Fran

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

    MZ
Corp

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

    MZ
Fran

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

    SZ
Fran

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

    MP
Fran

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

    MI
Fran

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

    MW S/S

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

    NC S/S

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

    MY S/S

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

    MY
Fran

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

  32140    Logo Lighters    * %   * %   * %   * %   * %   * %   * %   * %   * %
  * %   * %   * %   * %   * % 32142    Ice Chests    * %   * %   * %   * %   * %
  * %   * %   * %   * %   * %   * %   * %   * %   * %

 

NOTES   1 - All Firewood is at *%     2 - All Water is at *%     3 - UIN
Department 20603 Corp Codes 711 & 050 receive National Drink Pricing all others
receive markup as indicated     Changes:     97110 (MZ Corp) and 97110 (NC/SS)
were mislabeled 97114     97110 (MY S/S) was added (omitted on original)    
97110 (MZ Corp) and 97110 (NC S/S) Grocery default (20000) was changed from *%
to *%     97110 (MZ Corp) and 97110 (NC S/S) Fountain/Syrups/Bibs (20603) was
changed from *% to *%     UIN department 32105 was changed from *% to *%     All
plans reflect markup based on full case orders and do not reflect the $*
additional markup for single sell purchases.

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Section 6.4

Draft List of Designated Wholesale Vendors

 

Central

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

  

Great Lakes

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Southwest

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Mid-Pacific

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Northwest

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Northeast

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

  

Chesapeake

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* (vendor names omitted)

   * (vendor names omitted)    * (vendor names omitted)    * (vendor names
omitted)    * (vendor names omitted)    * (vendor names omitted)    * (vendor
names omitted)