Document:

Exhibit 10.36

Exhibit 10.36

PERFORMANCE FOOD GROUP COMPANY

Incentive Stock Option Agreement

THIS INCENTIVE STOCK OPTION AGREEMENT (this "Agreement") is made and entered into on <<OptionDate>> (the "Grant Date"), by and between Performance Food Group Company, a Tennessee corporation (together with its Subsidiaries and Affiliates, the "Company"), and <<FirstName>> <<MiddleName>> <<LastName>> (the "Optionee"). Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Performance Food Group Company 2003 Equity Incentive Plan (the "Plan").

WHEREAS, the Company has adopted the Plan, which permits the issuance of stock options for the purchase of shares of the common stock, par value $.01 per share, of the Company (the "Shares"); and

WHEREAS, the Company desires to afford the Optionee an opportunity to purchase Shares as hereinafter provided in accordance with the provisions of the Plan;

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

	Grant of Option.

	The Company grants as of the date of this Agreement the right and option (the "Option") to purchase <<Shares>> Shares, in whole or in part (the "Option Stock"), at an exercise price of $<<Price>> per Share, on the terms and conditions set forth in this Agreement and subject to all provisions of the Plan.  The Optionee, holder or beneficiary of the Option shall not have any of the rights of a shareholder with respect to the Option Stock until such person has become a holder of such Shares by the due exercise of the Option and payment of the Option Payment (as defined in Section 3 below) in accordance with this Agreement.

	The Option shall be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), and this Agreement shall be interpreted in a manner consistent therewith.  In order to provide the Company with the opportunity to claim the benefit of any income tax deduction which may be available to it upon the exercise of the Option and in order to comply with all applicable federal or state tax laws or regulations, the Company may take such action as it deems appropriate to insure that, if necessary, all applicable federal, state or other taxes are withheld or collected from the Optionee.

	Exercise of Option.  The Optionee may exercise the Option beginning on the fourth anniversary of the date of this Agreement provided that Optionee has been an employee of the Company at all times from the Grant Date to such fourth anniversary (such four-year period being referred to as the "Vesting Period"). Notwithstanding the above, each outstanding Option shall vest and become exercisable upon the occurrence of a Change in Control or Potential Change in Control and shall be governed by the provisions of Section 13 of the Plan.  In the event that the Optionee dies, is Disabled or elects Normal Retirement (as defined below) before the expiration of the Vesting Period, the Option shall vest as of the date of such death, disability or Normal Retirement, as the case may be, on a pro rata basis with respect to the amount of the Vesting Period that has elapsed, rounded to the nearest whole share.  If Optionee elects Early Retirement (as defined below) prior to the expiration of the Vesting Period, this Option shall vest as though Optionee had elected Normal Retirement, provided that the Optionee's Early Retirement is with the consent of the Committee.  "Early Retirement" means retirement, for purposes of the Plan with the express consent of the Company at or before the time of such retirement, from active employment with the Company prior to age 65, in accordance with any applicable early retirement policy of the Company then in effect.  "Normal Retirement" means retirement from active employment with the Company on or after age 65.  For purposes of this Agreement, "Disabled" means that the Optionee is permanently unable to perform the essential duties of the Optionee's occupation.  

	Manner of Exercise.  The Option may be exercised in whole or in part at any time within the period permitted hereunder for the exercise of the Option, with respect to whole Shares only, by serving written notice of intent to exercise the Option delivered to the Company at its principal office (or to the Company's designated agent), stating the number of Shares to be purchased, the person or persons in whose name the Shares are to be registered and each such person's address and social security number.  Such notice shall not be effective unless accompanied by payment in full of the Option Price for the number of Shares with respect to which the Option is then being exercised (the "Option Payment") and cash equal to the required withholding taxes as set forth by Internal Revenue Service and applicable State tax guidelines for the employer's minimum statutory withholding.  The Option Payment shall be made in cash or cash equivalents or in whole Shares that have been held by the Optionee for at least six months prior to the date of exercise valued at the Shares' Fair Market Value on the date of exercise (or next succeeding trading date if the date of exercise is not a trading date) or the actual sales price of such Shares, together with any applicable withholding taxes, or by a combination of such cash (or cash equivalents) and Shares.  The Optionee shall not be entitled to tender Shares pursuant to successive, substantially simultaneous exercises of the Option or any other stock option of the Company.  Subject to applicable securities laws, the Optionee may also exercise the Option by delivering a notice of exercise of the Option and by simultaneously selling the Shares of Option Stock thereby acquired pursuant to a brokerage or similar agreement approved in advance by proper officers of the Company, using the proceeds of such sale as payment of the Option Payment, together with any applicable withholding taxes.  For purposes of this Agreement, "Fair Market Value" means the closing sales price of the Shares on the Nasdaq Stock Market's National Market System or the actual sales price of such Shares.

	Termination of Option.  The Option will expire ten years from the date of grant of the Option (the "Term") with respect to any then unexercised portion thereof, unless terminated earlier as set forth below:

	Termination by Death.  If the Optionee's employment by the Company terminates by reason of death, or if the Optionee dies within three months after termination of such employment for any reason other than Cause, this Option may thereafter be exercised, to the extent the Option was exercisable at the time of such termination, by the legal representative of the estate or by the legatee of the Optionee under the will of the Optionee, for a period of one year from the date of death or until the expiration of the Term of the Option, whichever period is the shorter.

	Termination by Reason of Disability.  If the Optionee's employment by the Company terminates by reason of Disability, this Option may thereafter be exercised, to the extent the Option was exercisable at the time of such termination, by the Optionee or personal representative or guardian of the Optionee, as applicable, for a period of three years from the date of such termination of employment or until the expiration of the Term of the Option, whichever period is the shorter; provided, however, that if the Option is exercised following the one year anniversary of the date of termination, the Option shall thereafter be treated as a Non-Qualified Stock Option.

	Termination by Normal Retirement or Early Retirement.  If Optionee's employment by the Company terminates by reason of Normal Retirement or Early Retirement, this Option may thereafter be exercised by the Optionee, to the extent the Option was exercisable at the time of such termination, for a period of three years from the date of such termination of employment or until the expiration of the Term of the Option, whichever period is the shorter; provided, however, that if the Option is exercised following the three month anniversary of the date of termination, the Option shall thereafter be treated as a Non-Qualified Stock Option.

	Termination for Cause or Voluntary Termination.  If the Optionee's employment by the Company is voluntarily terminated or terminated for Cause, this Option shall terminate immediately and become void and of no effect.

	Other Termination.  If the Optionee's employment by the Company is involuntarily terminated for any reason other than for Cause, death, Disability or Normal Retirement or Early Retirement, this Option may be exercised, to the extent the Option was exercisable at the time of such termination, by the Optionee for a period of three months from the date of such termination of employment or the expiration of the Term of the Option, whichever period is the shorter.

	No Right to Continued Employment.  The grant of the Option shall not be construed as giving Optionee the right to be retained in the employ of the Company, and the Company may at any time dismiss Optionee from employment, free from any liability or any claim under the Plan.

	Adjustment to Option Stock.  The Committee may make adjustments in the terms and conditions of, and the criteria included in, this Option in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.2 of the Plan) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 

	Amendments to Option.  Subject to the restrictions contained in Sections 6.2 and 14 of the Plan, the Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, the Option, prospectively or retroactively; provided that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would adversely affect the rights of the Optionee or any holder or beneficiary of the Option shall not to that extent be effective without the consent of the Optionee, holder or beneficiary affected.

	Limited Transferability.  During the Optionee's lifetime this Option can be exercised only by the Optionee.  This Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by Optionee other than by will or the laws of descent and distribution.  Any attempt to otherwise transfer this Option shall be void.  No transfer of this Option by the Optionee by will or by laws of descent and distribution shall be effective to bind the Company unless the Company shall have been furnished with written notice thereof and an authenticated copy of the will and/or such other evidence as the Committee may deem necessary or appropriate to establish the validity of the transfer. 

	Reservation of Shares.  At all times during the term of this Option, the Company shall use its best efforts to reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of this Agreement.

	Plan Governs.  The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof.  The terms of this Agreement are governed by the terms of the Plan, and in the case of any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall govern.

	Severability.  If any provision of this Agreement is, or becomes, or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or the Award, or would disqualify the Plan or Award under any laws deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award, and the remainder of the Plan and Award shall remain in full force and effect.

	Notices.  All notices required to be given under this Option shall be deemed to be received if delivered or mailed as provided for herein to the parties at the following addresses, or to such other address as either party may provide in writing from time to time.

To the Company:Performance Food Group Company

12500 West Creek Parkway

Richmond, Virginia 23238

Attn: Chief Financial Officer

To the Optionee:<<FirstName>> <<MiddleName>> <<LastName>>

<<AddressLine_1>>

<<AddressLine_2>>

<<AddressLine_3>>

<<City>>, <<State>> <<Zip>>

 

	Governing Law.  The validity, construction and effect of this Agreement shall be determined in accordance with the laws of the State of Tennessee without giving effect to conflicts of laws principles.

	Resolution of Disputes.  Any dispute or disagreement which may arise under, or as a result of, or in any way related to, the interpretation, construction or application of this Agreement shall be determined by the Committee.  Any determination made hereunder shall be final, binding and conclusive on the Optionee and the Company for all purposes.

	Successors in Interest.  This Agreement shall inure to the benefit of and be binding upon any successor to the Company.  This Agreement shall inure to the benefit of the Optionee's legal representative and assignees.  All obligations imposed upon the Optionee and all rights granted to the Company under this Agreement shall be binding upon the Optionee's heirs, executors, administrators, successors and assignees.  

	Excessive Shares.  In the event that the number of Shares subject to this Option exceeds any maximum established under the Code for Incentive Stock Options that may be granted to Optionee, or in the event that this Option becomes first exercisable in any calendar year to obtain Common Stock having a Fair Market Value (determined at the time of grant) in excess of $100,000, this Option shall be treated as a Non-Qualified Stock Option to the extent of such excess.  The proceeding sentence shall be interpreted consistently with the provisions of Section 422(d) of the Code.

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IN WITNESS WHEREOF, the parties have caused this Incentive Stock Option Agreement to be duly executed effective as of the day and year first above written.

 

PERFORMANCE FOOD GROUP COMPANY

 

By: __________________________________

 

Optionee: 

_____________________________________

Please Print

Optionee: 

_____________________________________

Signature

 

 

 

<<FirstName>> <<MiddleName>> <<LastName>>

<<OptionDate>>

<<Shares>>

<<Price>>Exhibit 10.1

                            CERTIFICATE OF PLEDGE

 WHEREAS,  SABILA   INDUSTRIAL   SOCIEDAD  ANONIMA,   holder   of   juridical
 identification number three-  one hundred and  one-one hundred twenty  three
 thousand five  hundred  and  eighty  eight  (3-101-123588),  with  principal
 offices in Guanacaste,  Liberia, three point  five kilometers  south of  the
 entrance to Liberia, represented by its special agent with sufficient powers
 to carry out this action mister JOSE ALBERTO ZUNIGA BLANCO, of age,  married
 once, industrial engineer, with identity  card number 5-250-980, a  resident
 of Liberia, Guanacaste, four hundred twenty five meters east of the  Olympia
 cinema, as established  in Extraordinary  Session of  Stockholders, held  at
 fifteen hundred hours on July second of the year two thousand and four, with
 powers duly  registered.  As per  notary  Feman Pacheco  Alfaro,  in  number
 seventy nine of page one hundred sixty  three front of volume forty of  said
 notary's registry, at fourteen hundred hours  on August six of the year  two
 thousand four  will pay  to BANCO  CREDITO AGRICOLA  DE CARTAGO,  holder  of
 juridical identification number four  zero zero zero  zero zero-one one  two
 eight (4-00000-1128) the sum of THREE HUNDRED FIFTY THOUSAND DOLLARS  00/100
 (US$350,000.00) legal currency of the United States of America, having  been
 received as a business loan, in cash, no later than on the seventh day  (07)
 of August of the year two thousand and twelve (2012), and the debtor company
 is required to pay said amount at the creditor's offices located in Cartago,
 central street between central  and first avenue,  in the following  manner:
 ninety six payments against principal and interest as follows; a) ninety six
 fixed and consecutive monthly payments of four thousand seven hundred twenty
 eight dollars and  forty cents  (US$ 4,728.40)  in said  currency each  one,
 having to make the first  payment on the seventh  (07) day of September  two
 thousand four (2004) and b) one last payment for the balance upon expiration
 of this obligation on August 7 two thousand twelve (2012), date of  maturity
 of this obligation and on which the debtor company shall pay any outstanding
 balance. I expressly authorize  the Bank to change  the amount of the  quota
 payments in order to adjust the method of  payment to the term of the  debt,
 in view of the changes in interest rate  to be described later on. The  loan
 carries normal interest  on balance of  the principal, estimated  at a  rate
 made up  of one  annual fixed  factor of  two point  five percentage  points
 (2.5%), plus a variable  factor which is totally  outside the will power  of
 intervention of the parties hereto, this being the PRIME rate current at the
 beginning of each month of the loan, the first day of each month, during the
 life of the  loan, and a  mere statement on  the part of  the creditor  will
 suffice for  the  new  adjustment  to become  effective.  In  spite  of  the
 aforementioned, at no time during the life of this loan, shall the  interest
 rate fall below six point seventy five percent (6.75%) per year. In view  of
 the fact that at the present time, said PRIME rate at the beginning of  each
 month is four point twenty five per  cent (4.25%) per year, the normal  rate
 of this loan for the  first month is hereby  estimated at six point  seventy
 five per cent  (6.75%) per year.  For further  certifications regarding  its
 level which may be  required by either of  the parties or administrative  or
 judicial authorities with respect to this loan and its collection, the PRIME
 rate may be certified by a notary public and may be seen at the Central Bank
 of Costa Rica's  official Internet  web site or  the Reuters  Agency or  the
 Bloomberg Agency's web page. Interests will be estimated taking as a  factor
 the quotient  resulting  after dividing  the  exact  number of  day  of  the
 business year by the number  of days of the  business year; in other  words,
 three hundred  and sixty  divided by  three hundred  and sixty.  In case  of
 default, the debtor company agrees to pay interest, estimated at a rate that
 will be two percentage points additional to the current interest rate at the
 time of  default, and,  should the  period of  default prolong  itself,  the
 interest rate will  continue to be  adjusted in the  same manner  previously
 indicated for ordinary interest rates. In case  the day of payment is not  a
 working  day,  the  debtor  company  shall  make  payment  the  working  day
 immediately following, and interests will be  estimated through the date  of
 cancellation. It behooves solely to the Creditor to enforce payment, and the
 Debtor expressly renounces the rights  conferred under article five  hundred
 sixty three  of the  Commercial Code.  In case,  and if  it is  the  opinion
 exclusively of  the creditor  Bank, that  the collateral  here rendered  has
 suffered a  depreciation, the  creditor Bank  may  require that  the  debtor
 company provide  additional  satisfactory  collateral. Failure  to  pay  the
 principal, interests or commissions,  and in general  any non compliance  of
 obligations incurred  herewith  by  the  Debtor  company,  shall  cause  the
 Creditor to separately determine that the obligation has expired, and demand
 in anticipation its payment, and, to  resort to one of the obligations  here
 contracted by the Debtor , the debtor company hereby enters into MORTAGE  IN
 THE SECOND DEGREE on the following:

                                      **

 The debtor company  hereby states it  agrees that, in  case it  is asked  to
 partially liberate any asset  pledged herewith an indispensable  requirement
 shall be, being up  to date in the  payment of interests  due on the  entire
 loan. The collateral  rendered herewith  shall remain  at all  times on  the
 debtor company's premises, Guanacaste, Liberia, from the entrance to Liberia
 three point five kilometers south; the debtor company hereby states that  it
 will not rent such  assets, that they are  insured, and that the  collateral
 rendered herewith bears no other liens.  The lack of payment of interest  or
 principal within  the agreed-upon  time periods  for each  disbursement,  or
 failure to comply with  any obligation contracted by  the debtor company  in
 this certificate of collateral, the Creditor Bank may collect via  juridical
 means without payment requirements or execution proceedings and demand  that
 the collateral be  auctioned on the  bases of the  amount of  capital it  is
 responsible for, or whatever lesser balance owed. In case of execution,  the
 debtor company  renounces  its domicile,  the  payment requirement  and  any
 proceedings relative to execution. Execution proceedings shall be based, and
 as required shall be  carried out, based on  a liquidation submitted by  the
 creditor Bank, duly  certified by a  Public Accountant, which  as of now  is
 considered correct  and is  accepted by  all who  hold obligations  in  this
 certificate of collateral. In case execution proceedings are carried out  on
 this loan,  once  the judicial  authorities  presiding over  said  execution
 request that the assets  be produced whenever it  is so ordered, the  debtor
 company is required to  produce them, to have  them within sight during  the
 juridical execution, to have them legally inspected, or to turn them over to
 the successful  bidder,  be  it  the creditor  itself,  or  a  third  party.
 Likewise, during the life of this  collateral agreement, the debtor  company
 is required to allow  inspections without prior notice  of the assets  given
 herewith as collateral, by officials of the creditor bank. The creditor  may
 renounce its right to one or  several such inspections without detriment  to
 any of  its  rights, or  the  loss of  its  right to  carry  out  subsequent
 inspections agreed upon. The  debtor company is  responsible for payment  of
 all taxes, and any  cost derived from inspections  made shall be covered  by
 the  debtor,   contributions,  deductions,   withholdings  and   any   other
 expenditures or taxes which are due under Costa Rican law or as a result  of
 any other action by the authorities, that may affect payments in such a  way
 that amortizations, interests, or payments of any kind that may be owed  and
 due to the creditor Bank originated  in this credit operation, are  received
 by said bank in full with no  deductions and, should the creditor Bank  have
 to pay  any amount  for that  purpose, those  held responsible  hereby  must
 refund it  upon receiving  notice to  do so.  The debtor's  obligations  and
 commitments are  as  follows: (A)  To  comply with  all  terms,  conditions,
 provisions, and specifications referring to this loan given by the Bank,  as
 stipulated in this document.  The debtor recognizes that  it is fully  aware
 of; and fully accepts, all such conditions. (B) The veracity of the contents
 of all documents  and all other  reports submitted to  the creditor must  be
 guaranteed. (C) All formalization and administration expenses pertaining  to
 this loan must..  be covered.  (D) Any  time the  bank is  required to  make
 executive collection due to  failure to pay in  the manner agreed upon,  the
 debtor must pay the amount required by such proceedings. (E) It must  submit
 internal financial statements,  duly audited,  every three  months for  each
 fiscal closing, tri-monthly  statements must be  submitted to  the bank  the
 month after the trimester fiscal closing  and those that must be audited  on
 an annual basis, two months after the  annual closing. (F) If the debtor  is
 reclassified with due cause,  to a higher risk  category, the interest  rate
 shall be adjusted as established by  the bank, (G) This approval is  subject
 to the availability of  funds or limits on  portfolio in' the  corresponding
 line of credit, the  Bank also reserves the  right, before formalizing  this
 loan, to  modify the  conditions  under which  it  was authorized  and  even
 nullify its approval  should reasons  to do so  be determined.  In case  for
 reasons that behoove  the debtor,  the General  Superintendent of  Financial
 Institutions,  in   accordance  with   SUGEF  agreement   one-ninety   five,
 reclassifies this  loan,  the  debtor  agrees  that  the  interest  rate  on
 disbursements made against this loan, be adjusted according to the following
 table: a) Category B: an increase in the interest rate's fixed component  of
 zero point  five percentage  points;  b) Category  B2:  an increase  in  the
 interest rate's fixed component  of one percentage point;  c) Category C  an
 increase in the interest rate's fixed component of one point five percentage
 points; and d) Categories D and E, an increase in the interest rate's  fixed
 component of two  percentage points or  in accordance  with variations  that
 SUGEF may  introduce  to  the  table. The  debtor  company  must  obtain  an
 insurance policy against  fire and related  risks, and turn  it over to  the
 creditor Bank, and the  debtor is required  to keep the  policy up to  date,
 current, and turned over to the creditor until the loan is cancelled in  its
 totality and until the cancellation of any other amount due to the  creditor
 as a result of this  loan. Upon simple request  from the creditor Bank,  the
 debtor is required to submit to  the creditor a certification issued by  the
 National Insurance Institute indicating that  the policy required here  with
 has been  taken, and  that the  creditor has  been declared  grantee of  its
 benefits, and such a procedures will be equally maintained upon each renewal
 of the policy during  the period of the  collateral credit and, the  receipt
 for renewal will be sent to the creditor. The debtor company, sets forth its
 address for receipt of notifications the debtor's central offices located in
 San Jose Tournon Housing Development across from Villas Tournon Hotel, Facio
 y Canas  law office.  This certificate  is ruled  by the  provisions of  the
 Commercial Code and is  signed in San Jose  on the sixth  day of August  two
 thousand four.

             DEBTOR:
                                   For/ SABILA INDUSTRIAL S.A. Juridical
                                   Identification No.3-101 - 123588

                                   JOSE ALBERTO ZUNIGA SOLANO I.D.
                                   No.5-250-980

  **   Denotes Confidential Portion Omitted and Filed Separately with
       the Commission

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