Fourth Amendment to Distribution Service Agreement



 Exhibit 10.35 
  
  
 FOURTH AMENDMENT TO DISTRIBUTION SERVICE AGREEMENT 
  
 THIS FOURTH AMENDMENT TO DISTRIBUTION SERVICE AGREEMENT (the
“Amendment”) is made and entered into on the 16th day of October, 2003, to be effective on the Effective Date (as defined below), by and between The Pantry, Inc., a Delaware corporation (“Pantry”) and McLane Company, Inc., a
Texas corporation (“McLane”). 
  
 RECITALS 
  
 WHEREAS, the Pantry, Lil’ Champ Food Stores, Inc., a Florida corporation
(“Lil’ Champ”), and McLane entered into (i) a Distribution Service Agreement effective as of October 10, 1999, (ii) a First Amendment to Distribution Service Agreement effective as of June 28, 2001, (iii) a Second Amendment to
Distribution Service Agreement effective as of September 8, 2001, and (iv) a Third Amendment to Distribution Service Agreement effective as of October 5, 2002 (the October 10, 1999 Distribution Service Agreement, together with the June 28, 2001
First Amendment, September 8, 2001 Second Amendment, and October 5, 2002 Third Amendment are hereinafter referred to collectively as the “Service Agreement”); and 
  
 WHEREAS, the Pantry is in negotiations to acquire additional convenience food stores that it desires to make subject to the
Service Agreement, such additional stores being more particularly described on Exhibit A attached hereto and incorporated herein for all purposes (the “Additional Stores”); and 
  
 WHEREAS, in the event the Pantry acquires the Additional Stores, the Pantry and McLane desire to further amend the Service
Agreement; 
  
 NOW, THEREFORE, for and in consideration of the
promises, covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and expressly conditioned upon the Pantry acquiring the Additional Stores, the Pantry and
McLane do hereby agree as follows: 
  
 1. Additional Stores to
be Subject to Service Agreement. The Pantry and McLane hereby agree that the Additional Stores shall, effective as of the date the Pantry acquires such Additional Stores (the “Effective Date”), be subject to and governed by all terms
and conditions of the Service Agreement, as amended by this Amendment, and shall be considered “stores” for all purposes thereof. 
  
 2. Extension of Service Agreement. The first sentence of Section 4.1 of the Service Agreement is hereby amended to read in its entirety as follows:

  
 * Selected portions have been deleted as confidential pursuant to Rule
24b-2. Complete copies of the entire exhibit have been filed with the Securities and Exchange Commission and marked “CONFIDENTIAL TREATMENT.” 
  

 1 








 “This Agreement shall, unless earlier terminated in accordance with the terms of
this Agreement, continue until October 10, 2008.” 
  
 3.
Adjustment of Service Charge/Gatorade Mark-Up. The Service Charge of $* per store/per week provided for in the Service Agreement is reduced to $* per store/per week and the markup on Gatorade provided for in the Service Agreement is reduced
from *% to *%. 
  
 4. Cigarette Rebate Adjustment. The
Pantry shall be entitled, in addition to the rebates provided for in the Service Agreement and on Exhibit A of the Service Agreement, to an additional rebate of (i) $* (*) per each carton of premium cigarettes and $* (*) per each carton of generic
cigarettes purchased by the Pantry from McLane after the Effective Date for stores located in Georgia, and (ii) $* (*) per each carton of premium cigarettes and $* (*) per each carton of generic cigarettes purchased by the Pantry from McLane after
the Effective Date for stores located in Tennessee. 
  
 5.
Service Allowance. Section 9 of the Third Amendment is hereby amended to read in its entirety as follows: 
  
 “Within ten (10) business days after the Effective Date, McLane shall pay to the Pantry $* per each Additional Store and $* for each
other store subject to the Service Agreement. Such amounts shall be amortized over the twelve (12) month period immediately following the Effective Date using the straight line method of amortization, with any unamortized amount relating to a store
which the Pantry sells, closes or otherwise ceases to operate during such twelve (12) month period being repaid to McLane within ten (10) days after the end of the McLane accounting quarter in which such sale, closure or cessation of operation
occurs through an equitable adjustment made by McLane to any amounts that may be owing by McLane to any amounts that may be owing by McLane to Pantry at the end of such McLane accounting quarter. If the unamortized amount to be repaid to McLane at
the end of such accounting quarter is greater than the amount that is owed by McLane to Pantry, the remaining adjustment will be made at the end of subsequent McLane accounting quarters until the full unamortized amount is repaid by Pantry to
McLane. Provided the Pantry is in compliance with all terms and conditions of the Service Agreement (as amended by this Amendment) on the date payment is due, within ten (10) business days after the beginning of each McLane accounting quarter,
McLane agrees to pay to the Pantry a Service Allowance of $*. This quarterly amount is based on * stores and $* per store; and shall be adjusted equitably during the remaining term of the Service Agreement (as amended by this Amendment) to take into
account store openings and store sales/closures.” 
  
 * Selected portions
have been deleted as confidential pursuant to Rule 24b-2. Complete copies of the entire exhibit have been filed with the Securities and Exchange Commission and marked “CONFIDENTIAL TREATMENT.” 
  
  

 2 








 CONFIDENTIAL TREATMENT 
  
 6. Representation and Warranty. Pantry hereby represents and warrants to McLane that Lil’ Champ has been merged
into The Pantry, Inc. and is no longer a legal entity as of June 25, 2001. As of the Effective Date, Lil’ Champ will be released by McLane as a party to the Service Agreement. In consideration, Pantry represents and warrants to McLane, and
Pantry agrees that (i) all existing Lil’ Champ stores previously serviced by McLane (“Lil’ Champ Stores”) have been transferred to and are owned entirely by Pantry, (ii) McLane will continue to provide services under the Service
Agreement and this Amendment to the Lil’ Champ Stores, and (iii) Pantry will be fully responsible and liable to McLane for the performance of any and all obligations and liabilities of Lil’Champ to McLane under the Service Agreement and
this Amendment. 
  
 7. Effective Date. All terms and
conditions of this Amendment shall be effective as of the Effective Date defined in Section 1 of this Amendment. 
  
 8. Defined Terms. Capitalized terms not specifically defined in this Amendment shall have the meaning ascribed to them in the Service Agreement.

  
 9. No Other Modifications. Except as specifically
modified by this Amendment, all terms and conditions of the Service Agreement shall remain fully applicable and in full force and effect. 
  
 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above, to be effective as of the Effective Date. 
  

	 THE PANTRY, INC.

		
	 By:
	 	/S/    DAVID M. ZABORSKI
	 	 	

	 Printed Name:    David M. Zaborski

	 Title:    V.P. Marketing

	
	  
 McLANE
PANTRY, INC.

		
	 By:
	 	/S/    DAVE TESTROET
	 	 	

	 	 	Dave Testroet
	 	 	Division President
	 	 	McLane Carolina/Mid-Atlantic


  
  

 3 








 CONFIDENTIAL TREATMENT 
  
 EXHIBIT A 
  
 GOLDEN GALLON STORE LIST 
  

	

	Count	  	Pantry
Store #	  	Store #	  	Address	  	City	  	State	  	Zip
	

	 1
	  	3492	  	  1	  	SHALLOWFORD & HICKORY VALLEY	  	Chattanooga	  	TN	  	37421
	 2
	  	3493	  	  5	  	101 NEWBERRY ST @ REDDING ROAD	  	Red Bank	  	TN	  	37415
	 3
	  	3494	  	16	  	11280 DAYTON PIKE	  	Soddy Daisy	  	TN	  	37379
	 4
	  	3495	  	18	  	4011 RINGGOLD ROAD	  	Chattanooga	  	TN	  	37412
	 5
	  	3496	  	26	  	(9300 LEE HIGHWAY)	  	Ooltewah	  	TN	  	37363
	 6
	  	3497	  	28	  	5030 HUNTER ROAD @I-75	  	Ooltewah	  	TN	  	37363
	 7
	  	3498	  	31	  	8229 MAHAN GAP ROAD	  	Ooltewah	  	TN	  	37363
	 8
	  	3499	  	37	  	CORNER HWY 76 @225 GREEN RD	  	Chatsworth	  	GA	  	30705
	 9
	  	3500	  	52	  	301 SOUTH ERWIN STREET	  	Cartersville	  	GA	  	30120
	 10
	  	3501	  	60	  	4605 CLEVELAND HIGHWAY	  	Cohutta	  	GA	  	30710
	 11
	  	3502	  	61	  	3608 CHATSWORTH HIGHWAY	  	Dalton	  	GA	  	30720
	 12
	  	3503	  	62	  	5703 ALABAMA HIGHWAY	  	Ringgold	  	GA	  	30736
	 13
	  	3504	  	63	  	2622 CHATTANOOGA ROAD	  	Rocky Face	  	GA	  	30740
	 14
	  	3505	  	64	  	2800 S. DIXIE HIGHWAY	  	Dalton	  	GA	  	30720
	 15
	  	3506	  	65	  	CHATTANOOGA VALLEY ROAD	  	Flinstone	  	GA	  	30725
	 16
	  	3507	  	66	  	HIGHWAY 27 SOUTH	  	Rock Springs	  	GA	  	30739
	 17
	  	3508	  	67	  	1897 MCFARLAND AVENUE	  	Rossville	  	GA	  	30741
	 18
	  	3509	  	69	  	PARK CITY	  	Rossville	  	GA	  	30741
	 19
	  	3510	  	71	  	WEST MAIN @CHATTANOOGA STREET	  	Lafayette	  	GA	  	30728
	 20
	  	3511	  	72	  	209 LEE & GORDON MILL ROAD	  	Chickamauga	  	GA	  	30707
	 21
	  	3512	  	75	  	2200 CLEVELAND ROAD	  	Dalton	  	GA	  	30720
	 22
	  	3513	  	76	  	1476 RED BUD ROAD	  	Calhoun	  	GA	  	30701
	 23
	  	3514	  	77	  	(4806 HIGHWAY 58 NORTH)	  	Chattanooga	  	TN	  	37416
	 24
	  	3515	  	78	  	8701 E. BRAINERD @MORRIS HILL	  	Chattanooga	  	TN	  	37421
	 25
	  	3516	  	81	  	HIGHWAY 225 SOUTH	  	Chatsworth	  	GA	  	30705
	 26
	  	3517	  	82	  	6960 LEE HIGHWAY @SHALLOWFORD	  	Chattanooga	  	TN	  	37421
	 27
	  	3518	  	83	  	CORNER HWY 225 @HWY 41	  	Calhoun	  	GA	  	30701
	 28
	  	3519	  	84	  	(702 E. HIGHWAY 53 SE)	  	Calhoun	  	GA	  	30701
	 29
	  	3520	  	85	  	11134 HIGHWAY 27	  	Summerville	  	GA	  	30747
	 30
	  	3521	  	86	  	406 LYLERLY HIGHWAY	  	Summerville	  	GA	  	30747
	 31
	  	3522	  	88	  	3129 MAPLE STREET	  	Lindale	  	GA	  	30147
	 32
	  	3523	  	89	  	1010 E WALNUT AVE @RIVERBEND	  	Dalton	  	GA	  	30720
	 33
	  	3524	  	90	  	234 BROWN’S FERRY RD @I-24	  	Chattanooga	  	TN	  	37419
	 34
	  	3525	  	91	  	201 CARBONDALE ROAD SW	  	Dalton	  	GA	  	30720
	 35
	  	3526	  	92	  	FORT MOUNTAIN & US 411	  	Chatsworth	  	GA	  	30705
	 36
	  	3527	  	93	  	2512 AMNICOLA HIGHWAY	  	Chattanooga	  	TN	  	37406
	 37
	  	3528	  	95	  	190 S MAIN STREET @US 11	  	Trenton	  	GA	  	30752
	 38
	  	3529	  	96	  	5331 HWY 58 @HICKORY VALLEY	  	Chattanooga	  	TN	  	37416

  

 i 








 CONFIDENTIAL TREATMENT 
  

	

	Count	  	Pantry
Store #	  	Store #	  	Address	  	City	  	State	  	Zip
	

	 39
	  	3530	  	101	  	1321 DUG GAP	  	Dalton	  	GA	  	30720
	 40
	  	3531	  	102	  	1002 UNDERWOOD STREET	  	Dalton	  	GA	  	30720
	 41
	  	3532	  	103	  	2006 REDMOND CIRCLE	  	Rome	  	GA	  	30161
	 42
	  	3533	  	105	  	5501 HWY 153 @GADD ROAD	  	Hixson	  	TN	  	37343
	 43
	  	3534	  	106	  	1131 NORTH MAIN STREET	  	Lafayette	  	GA	  	30728
	 44
	  	3535	  	107	  	2300 SPRINGPLACE ROAD	  	Cleveland	  	TN	  	37311
	 45
	  	3536	  	109	  	4814 ALABAMA HWY, NW @HWY 20	  	Rome	  	GA	  	30161
	 46
	  	3537	  	110	  	4350 MARTHA BERRY HIGHWAY NE	  	Rome	  	GA	  	30161
	 47
	  	3538	  	113	  	10086 DAYTON PIKE	  	Soddy Daisy	  	TN	  	37379
	 48
	  	3539	  	114	  	6224-A HIXSON PIKE @BIG RDGE	  	Hixson	  	TN	  	30343
	 49
	  	3540	  	117	  	1182 MOUNTAIN CREEK ROAD	  	Chattanooga	  	TN	  	37405
	 50
	  	3541	  	119	  	1005 HIXSON PIKE	  	Hixson	  	TN	  	37343
	 51
	  	3542	  	123	  	5216 DAYTON BLVD @GADD ROAD	  	Red Bank	  	TN	  	37415
	 52
	  	3543	  	124	  	2501 DAYTON BLVD @SIGNAL VW	  	Red Bank	  	TN	  	37415
	 53
	  	3544	  	125	  	902 DALLAS ROAD @SYLVAN	  	Chattanooga	  	TN	  	37405
	 54
	  	3545	  	127	  	5710 LAKE RESORT DRIVE	  	Chattanooga	  	TN	  	37415
	 55
	  	3546	  	129	  	3480 KEITH STREET	  	Cleveland	  	TN	  	37311
	 56
	  	3547	  	130	  	4850 GEORGETOWN PIKE	  	Cleveland	  	TN	  	37311
	 57
	  	3548	  	131	  	703 SOUTH WHITE STREET	  	Athens	  	TN	  	37303
	 58
	  	3549	  	135	  	910 NORTH BROAD, NE	  	Rome	  	GA	  	30161
	 59
	  	3550	  	137	  	712 SIGNAL MOUNTAIN ROAD	  	Chattanooga	  	TN	  	37409
	 60
	  	3551	  	138	  	6 SHORTER AVENUE, NW	  	Rome	  	GA	  	30161
	 61
	  	3552	  	139	  	3740 TENNESSEE AVENUE	  	Chattanooga	  	TN	  	37409
	 62
	  	3553	  	141	  	5337 ALABAMA HIGHWAY	  	Ringgold	  	GA	  	30736
	 63
	  	3554	  	145	  	902 JOE FRANKLIN PARKWAY	  	Cartersville	  	GA	  	30120
	 64
	  	3555	  	151	  	1301 LAFAYETTE ROAD	  	Rossville	  	GA	  	30741
	 65
	  	3556	  	152	  	4919 MAIN STREET	  	Jasper	  	TN	  	37347
	 66
	  	3557	  	153	  	4849 HIXSON PIKE	  	Hixson	  	TN	  	37343
	 67
	  	3558	  	154	  	852 RANKIN AVENUE, NORTH	  	Dunlap	  	TN	  	37327
	 68
	  	3559	  	155	  	1200 OAK DRIVE	  	Manchester	  	TN	  	37355
	 69
	  	3560	  	156	  	I-59 @HIGHWAY 136	  	Trenton	  	GA	  	30752
	 70
	  	3561	  	158	  	ROUTE 8, BOX 201 SCRUGGS RD	  	Ringgold	  	GA	  	30736
	 71
	  	3562	  	159	  	2493 SOUTH CHURCH STREET	  	Murfreesboro	  	TN	  	37130
	 72
	  	3563	  	160	  	1401 RED BUD ROAD	  	Calhoun	  	GA	  	30701
	 73
	  	3564	  	161	  	3070 CEDARTOWN HWY	  	Rome	  	GA	  	30161
	 74
	  	3565	  	162	  	1264 MCMINNVILLE HIGHWAY	  	Manchester	  	TN	  	37355
	 75
	  	3566	  	163	  	2374 OLD FORT PARKWAY	  	Murfreesboro	  	TN	  	37130
	 76
	  	3567	  	165	  	2278 HILLSBORO BLVD	  	Manchester	  	TN	  	37355
	 77
	  	3568	  	166	  	2695 ADP 40, SE	  	Cleveland	  	TN	  	37311
	 78
	  	3569	  	167	  	8972 RHEA COUNTY HIGHWAY	  	Dayton	  	TN	  	37321
	 79
	  	3570	  	168	  	6708 RINGGOLD ROAD	  	Chattanooga	  	TN	  	37412
	 80
	  	3571	  	170	  	835 HIGHWAY 411, NORTH	  	Etowah	  	TN	  	37331
	 81
	  	3572	  	173	  	(4858 HIGHWAY 58)	  	Chattanooga	  	TN	  	37416

  

 ii 








 CONFIDENTIAL TREATMENT 
  

	

	Count	  	Pantry
Store #	  	Store #	  	Address	  	City	  	State	  	Zip
	

	 82
	  	3573	  	176	  	8540 HIXSON PIKE @CMP COLUM	  	Hixson	  	TN	  	37343
	 83
	  	3574	  	179	  	13424 DAYTON PIKE	  	Soddy Daisy	  	TN	  	37379
	 84
	  	3575	  	181	  	8640 DAYTON PIKE	  	Soddy Daisy	  	TN	  	37379
	 85
	  	3576	  	182	  	4026 SHALLOWFORD RD @N. MOOR	  	Chattanooga	  	TN	  	37411
	 86
	  	3577	  	183	  	(3407 AMNICOLA HIGHWAY)	  	Chattanooga	  	TN	  	37406
	 87
	  	3578	  	184	  	4300 NORCROSS RD @ELY RD	  	Hixson	  	TN	  	37343
	 88
	  	3579	  	185	  	1850 ALMAVILLE ROAD	  	Smyrna	  	TN	  	37167
	 89
	  	3580	  	186	  	ROUTE 1, BOX 1130	  	Monteagle	  	TN	  	37356
	 90
	  	3581	  	187	  	3390 AIRPORT ROAD	  	Dalton	  	GA	  	30721
	 91
	  	3582	  	188	  	3743 CUMMINGS HWY @I-24	  	Chattanooga	  	TN	  	37419
	 92
	  	3583	  	189	  	1702 SOUTH RUTHERFORD BLVD	  	Murfreesboro	  	TN	  	37130
	 93
	  	3584	  	190	  	519 WALDRON ROAD	  	Lavergne	  	TN	  	37086
	 94
	  	3585	  	192	  	8003 HORTON HIGHWAY	  	Arrington	  	TN	  	37014
	 95
	  	3586	  	193	  	HWY 411 BOX 597A	  	Ocoee	  	TN	  	37361
	 96
	  	3587	  	195	  	1418 BATTLEFIELD PARKWAY	  	Ft. Oglethorpe	  	GA	  	30742
	 97
	  	3588	  	197	  	9652 E BRAINERD RD @OOL-RING	  	Chattanooga	  	TN	  	37421
	 98
	  	3589	  	201	  	210 25TH STREET, NW	  	Cleveland	  	TN	  	37311
	 99
	  	3590	  	202	  	2214 EAST WALNUT AVENUE	  	Dalton	  	GA	  	30720
	 100
	  	3591	  	203	  	1200 SOUTH CEDAR	  	S. Pttsburg	  	TN	  	37380
	 101
	  	3592	  	204	  	2280 SPRINGPLACE ROAD	  	Cleveland	  	TN	  	37311
	 102
	  	3593	  	205	  	2502 BLUE SPRINGS ROAD	  	Cleveland	  	TN	  	37311
	 103
	  	3594	  	206	  	410 EAST NORTH STREET	  	Sweetwater	  	TN	  	37874
	 104
	  	3595	  	207	  	HIGHWAY 58	  	Decatur	  	TN	  	37322
	 105
	  	3596	  	210	  	HIGHWAY 64	  	Ducktown	  	TN	  	37326
	 106
	  	3597	  	211	  	HWY 411 & MAIN STREET	  	Benton	  	TN	  	37307
	 107
	  	3598	  	212	  	MT. VERD ROAD & I-75	  	Athens	  	TN	  	37303
	 108
	  	3599	  	213	  	1157 HIGHWAY 68	  	Sweetwater	  	TN	  	37874
	 109
	  	3600	  	215	  	230 TENNESSEE AVENUE	  	Etowah	  	TN	  	37331
	 110
	  	3601	  	216	  	612 SOUTH MAIN STREET	  	Sweetwater	  	TN	  	37874
	 111
	  	3602	  	217	  	6003 SHALLOWFORD ROAD	  	Chattanooga	  	TN	  	37411
	 112
	  	3603	  	218	  	1700 HARRISON PIKE	  	Cleveland	  	TN	  	37311
	 113
	  	3604	  	219	  	1200 CLEVELAND HIGHWAY	  	Dalton	  	GA	  	30721
	 114
	  	3605	  	220	  	5012 HIXSON PIKE	  	Hixson	  	TN	  	37343
	 115
	  	3606	  	221	  	2631 DECATUR PIKE	  	Athens	  	TN	  	37303
	 116
	  	3607	  	227	  	6239 HIGHWAY 58	  	Harrison	  	TN	  	37341
	 117
	  	3608	  	229	  	796 NISSAN BLVD	  	Smyrna	  	TN	  	37167
	 118
	  	3609	  	230	  	198 HAYWOOD LANE	  	Nashville	  	TN	  	37211
	 119
	  	3610	  	231	  	989 INTERSTATE DRIVE	  	Manchester	  	TN	  	37355
	 120
	  	3611	  	232	  	109 SEQUOYAH ACCESS ROAD	  	Soddy	  	TN	  	37379
	 121
	  	3612	  	233	  	3901-A CLEVELAND HIGHWAY	  	Dalton	  	GA	  	30721
	 122
	  	3613	  	234	  	5183 MURFREESBORO ROAD	  	LeVergne	  	TN	  	37086
	 123
	  	3614	  	235	  	7020 E. BRAINERD ROAD	  	Chattanooga	  	TN	  	37421

  

 iii 








 CONFIDENTIAL TREATMENT 
  

	

	Count	  	Pantry
Store #	  	Store #	  	Address	  	City	  	State	  	Zip
	

	 124
	  	3615	  	236	  	6855 BATTLEFIELD PARKWAY	  	Ringgold	  	GA	  	30736
	 125
	  	3616	  	237	  	4900 BRAINERD RD @MOORE RD	  	Chattanooga	  	TN	  	30741
	 126
	  	3617	  	239	  	2610 SOUTH CHURCH STREET	  	Murfreesboro	  	TN	  	37128
	 127
	  	3618	  	240	  	1221 SOUTH WATER AVENUE	  	Gallatin	  	TN	  	37066
	 128
	  	3619	  	243	  	1001 LAFAYETTE ROAD	  	Chickamauga	  	GA	  	30707
	 129
	  	3620	  	244	  	10576 LEBANON ROAD	  	Mt. Juliet	  	TN	  	37122
	 130
	  	3621	  	246	  	2098 MADISON ST SHELBYVILLE	  	Shelbyville	  	TN	  	37160
	 131
	  	3622	  	247	  	(11400 HIGHWAY 41)	  	Ringgold	  	GA	  	30736
	 132
	  	3623	  	248	  	(600 ASHLAND TERRANCE)	  	Chattanooga	  	TN	  	37415
	 133
	  	3624	  	250	  	(2300 JENKINS RD)	  	Chattanooga	  	TN	  	37421
	 134
	  	3625	  	601	  	(1309 WEST MAIN STREET)	  	Lebanon	  	TN	  	37087
	 135
	  	3626	  	602	  	(3401 MEMORIAL BLVD)	  	Murfreesboro	  	TN	  	37130
	 136
	  	3627	  	603	  	(HWY 70 & OLD KENTUCKY HWY)	  	Cookeville	  	TN	  	38503
	 137
	  	3628	  	623	  	CLEVELAND	  	Cleveland	  	TN	  	37311
	 138
	  	3629	  	626	  	(6917 MIDDLE VALLEY RD)	  	Hixson	  	TN	  	37343

  

 iv