Document:

Exhibit 10.17

             

            
            FIRST AMENDMENT TO

            
            AMENDED AND RESTATED

            
            EMPLOYMENT AGREEMENT

             

             

            
            THIS FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT
            AGREEMENT (“Amendment”) is made and entered into
            as of the 2nd day of May, 2008, by and between THE PANTRY, INC., a Delaware
            corporation (the “Corporation”) and FRANK G. PACI (the
            “Employee”).

             

            
            WITNESSETH:

             

            
            WHEREAS, the Corporation and Employee
            entered into an Amended and Restated Employment Agreement dated as of November 20, 2007
            (the “Employment Agreement”); and

             

            
            WHEREAS, the parties desire to clarify
            their intent regarding severance pay and benefits under circumstances described in
            Section 6.2 of the Employment Agreement; and

             

            
            WHEREAS, the parties intend that such
            severance pay and benefits shall be as set forth in Sections 6.3(A), (B) and (C) of the
            Employment Agreement, as amended by this Amendment; and

             

            
            WHEREAS, the parties desire to delete
            Section 6.3(D) of the Employment Agreement and amend the Employment Agreement in
            certain other respects as set forth below.

             

            
            NOW, THEREFORE, in consideration of the
            mutual terms and conditions set forth below and other good and valuable consideration,
            the receipt and sufficiency of which are hereby acknowledged, the Corporation and
            Employee agree that the Employment Agreement shall be amended as follows:

             

            
                	
                            
                             

                        	
                            
                            1.

                        	
                            
                            The first sentence of Section 3 is hereby amended to
                            read as follows:

                        

            

             

            
            3.         The
            original term of employment under this Agreement shall be for that period of time
            commencing on July 2, 2007 and ending on January 2, 2009, subject to the following
            provisions:

            
             

            
            2.         Section
            4.2.2 is amended by deleting the clause designated “(B)” in the first
            sentence of Section 4.2.2 and inserting the following in lieu thereof:

            
             

            
            (B)       an amount equal to the
            greater of Employee’s then current monthly salary for the number of months then
            remaining to July 2, 2009 or for twelve (12) months, less any applicable taxes and
            withholdings and payable in substantially equal installments on the last business day
            of each applicable month (for purposes of Section 409A, each installment payment shall
            be considered a separate payment); and

            
             

            
            3.         The
            first sentence of Section 5.1(A) is deleted and the following inserted in lieu
            thereof:

             

            
            

            

            

            
            Employee shall not, either individually or on behalf of another,
            directly or indirectly, as employer, employee, owner, partner, stockholder, independent
            contractor, agent, or otherwise, enter into or in any manner participate in the
            convenience store business in North Carolina, South Carolina, Florida, or any other
            state in which the Corporation owns or operates ten (10) or more convenience stores
            upon the date of termination of employment.

            
             

            
                	
                            
                             

                        	
                            
                            4.

                        	
                            
                            Section 6.2(B) is hereby amended to read as
                            follows:

                        

            

             

            
            (B)       a
            material diminution by the Corporation of Employee’s annual base salary and
            target bonus, as such target bonus is described in the Corporation’s Annual
            Incentive Compensation Plan (“Target Bonus);

            
             

            
                	
                            
                             

                        	
                            
                            5.

                        	
                            
                            The first phrase of Section 6.3(B) is hereby amended to
                            read as follows:

                        

            

             

            
            (B)       a
            severance payment equal to Employee’s then current monthly salary for twenty-four
            (24) months plus an amount equal to two (2) times the value of Employee’s Target
            Bonus for the year in which the termination occurs (less any applicable taxes and
            withholdings), payable in substantially equal monthly installments on the last business
            day of each applicable month.

            
             

            
                	
                            
                             

                        	
                            
                            6.

                        	
                            
                            Section 6.3(D) of the Employment Agreement is deleted in
                            its entirety.

                        

            

             

            
            7.         Except
            as hereby amended, the Employment Agreement shall remain in full force and effect and
            is hereby ratified and confirmed in all respects.

             

            
            IN WITNESS WHEREOF, this Amendment has been
            duly executed as of the day and year set forth above.

            
             

            
             

            
                	
                            
                             

                        	
                            
                             

                        	
                            
                            THE PANTRY, INC.

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                            By:

                        	
                            
                            /s/ Peter J. Sodini

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                            Peter J. Sodini

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                            President & CEO

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                            EMPLOYEE:

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                            /s/Frank G. Paci

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                            Frank G. Paci

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        

            

            
             

             

             

            
            2Exhibit 10.18

             

            
            INDEMNIFICATION

            
            AGREEMENT

             

            
            This Indemnification Agreement, made and entered into this 1st day of
            May, 2008 (the “Agreement”), by and between The Pantry, Inc., a Delaware
            corporation (the “Company”), and Frank G. Paci
            (“Indemnitee”):

             

            
            WHEREAS, highly competent persons have become more reluctant to serve
            corporations as officers and directors or in other capacities unless they are provided
            with adequate protection through insurance or adequate indemnification against
            inordinate risks of claims and actions against them arising out of their service to and
            activities on behalf of the corporation; and

             

            
            WHEREAS, the uncertainties relating to such insurance and to
            indemnification have increased the difficulty of attracting and retaining such persons;
            and

             

            
            WHEREAS, the Board of Directors of the Company (the “Board”)
            has determined that the increased difficulty in attracting and retaining such persons
            is detrimental to the best interests of the Company’s stockholders and that the
            Company should act to assure such persons that there will be increased certainty of
            such protection in the future; and

             

            
            WHEREAS, it is reasonable, prudent and necessary for the Company
            contractually to obligate itself to indemnify, and to advance expenses on behalf of,
            such persons to the fullest extent permitted by applicable law so that they will serve
            or continue to serve the Company free from undue concern that they will not be so
            indemnified; and

             

            
            WHEREAS, each of Section 145 of the General Corporation Law of the State
            of Delaware and the Company’s Bylaws is nonexclusive, and therefore contemplates
            that contracts may be entered into with respect to indemnification of directors,
            officers, employees and agents; and

             

            
            WHEREAS, Indemnitee is willing to serve, continue to serve and to take
            on additional service for or on behalf of the Company on the condition that he be so
            indemnified;

             

            
            NOW, THEREFORE, in consideration of the premises and the covenants
            contained herein, the Company and Indemnitee do hereby covenant and agree as
            follows:

             

            
            Section 1.        
            Services by Indemnitee. Indemnitee agrees
            to serve as an officer of the Company. Indemnitee may at any time and for any reason
            resign or be removed from such position (subject to any other contractual obligation or
            any obligation imposed by operation of law). This Agreement shall continue in force
            after Indemnitee has ceased to serve as an officer of the Company.

             

            
            Section 2.        
            Indemnification – General. The
            Company shall indemnify, and advance Expenses (as hereinafter defined) to, Indemnitee
            (a) as provided in this Agreement and (b) subject to the provisions of this Agreement,
            to the fullest extent permitted by applicable law in effect on the date hereof and as
            such law may be amended from time to time. The rights of Indemnitee provided under the
            preceding sentence shall include, but shall not be limited to, the rights set forth in
            the other Sections of this Agreement.

             

            
            

            

            

            

            
            Section 3.        
            Proceedings Other Than Proceedings by or in the Right of the
            Company. Subject to the provisions of this Agreement,
            Indemnitee shall be entitled to the rights of indemnification provided in this Section
            3 if, by reason of his Corporate Status (as hereinafter defined), he is, or is
            threatened to be made, a party to or a participant in any Proceeding (as hereinafter
            defined), other than a Proceeding by or in the right of the Company. Pursuant to this
            Section 3 but subject to the provisions of this Agreement, Indemnitee shall be
            indemnified against all Expenses, judgments, penalties, taxes, fines and amounts paid
            in settlement (including all interest assessments and other charges paid or payable in
            connection therewith) actually and reasonably incurred by him or on his behalf in
            connection with such Proceeding or any claim, issue or matter therein, if he acted in
            good faith and in a manner he reasonably believed to be in or not opposed to the best
            interests of the Company and, with respect to any criminal Proceeding, had no
            reasonable cause to believe his conduct was unlawful.

             

            
            Section 4.        
            Proceedings by or in the Right of the
            Company. Subject to the provisions of this Agreement,
            Indemnitee shall be entitled to the rights of indemnification provided in this Section
            4 if, by reason of his Corporate Status, he is, or is threatened to be made, a party to
            or a participant in any Proceeding brought by or in the right of the Company to procure
            a judgment in its favor. Pursuant to this Section but subject to the provisions of this
            Agreement, Indemnitee shall be indemnified against all Expenses actually and reasonably
            incurred by him or on his behalf in connection with such Proceeding if he acted in good
            faith and in a manner he reasonably believed to be in or not opposed to the best
            interests of the Company;
            provided,
            however, that, if applicable law so
            provides, no indemnification against such Expenses shall be made in respect of any
            claim, issue or matter in such Proceeding as to which Indemnitee shall have been
            adjudged to be liable to the Company unless and to the extent that the Court of
            Chancery of the State of Delaware, or the court in which such Proceeding shall have
            been brought or is pending, shall determine that such indemnification may be
            made.

             

            
            Section 5.        
            Indemnification for Expenses of a Party Who is Wholly or Partly
            Successful. Notwithstanding any other provision of this
            Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party
            to (or a participant in) and is successful, on the merits or otherwise, in any
            Proceeding, he shall be indemnified to the maximum extent permitted by law against all
            Expenses actually and reasonably incurred by him or on his behalf in connection
            therewith. If Indemnitee is not wholly successful in such Proceeding but is successful,
            on the merits or otherwise, as to one or more but less than all claims, issues or
            matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses
            actually and reasonably incurred by him or on his behalf in connection with each
            successfully resolved claim, issue or matter. For purposes of this Section and without
            limitation, the termination of any claim, issue or matter in such a Proceeding by
            dismissal, with or without prejudice, shall be deemed to be a successful result as to
            such claim, issue or matter.

             

            
            Section 6.        
            Indemnification for Expenses of a Witness.
            Notwithstanding any other provision of this Agreement, to the extent that Indemnitee
            is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee
            is not a party, he shall be indemnified against all Expenses actually and reasonably
            incurred by him or on his behalf in connection therewith.

             

            
            Section 7.        
            Advancement of Expenses. Notwithstanding
            any provision of this Agreement to the contrary, the Company shall advance all
            reasonable Expenses incurred by or on behalf of Indemnitee in connection with any
            Proceeding in which Indemnitee is involved with by reason of

             

            
            2

             

            
            

            

            

            
            Indemnitee’s Corporate Status within fifteen (15) days after the
            receipt by the Company of a statement or statements from Indemnitee requesting such
            advance or advances from time to time, whether prior to or after final disposition of
            such Proceeding. Such statement or statements shall reasonably evidence the Expenses
            incurred by Indemnitee and shall include or be preceded or accompanied by an
            undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall
            ultimately be determined that Indemnitee is not entitled to be indemnified against such
            Expenses. Any advance and undertakings to repay pursuant to this Section 7 shall be
            unsecured and interest free.

             

            
                	
                            
                             

                        	
                            
                            Section 8.

                        	
                            
                            Procedure for Determination of Entitlement to
                            Indemnification.

                        

            

             

            
            (a)       To obtain indemnification
            under this Agreement, Indemnitee shall submit to the Chief Executive Officer of the
            Company a written request, including therein or therewith such documentation and
            information as is reasonably available to Indemnitee and is reasonably necessary to
            determine whether and to what extent Indemnitee is entitled to indemnification. The
            Company shall, promptly upon receipt of such a request for indemnification, advise the
            Board in writing that Indemnitee has requested indemnification.

            
             

            
            (b)       Upon written request by
            Indemnitee for indemnification pursuant to Section 8(a) hereof, a determination with
            respect to Indemnitee’s entitlement thereto shall be made in the specific case:
            (i) if a Change in Control (as hereinafter defined) shall have occurred, by Independent
            Counsel (as hereinafter defined) in a written opinion to the Board of Directors, a copy
            of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not
            have occurred, (A) by a majority vote of the Disinterested Directors (as hereinafter
            defined), even though less than a quorum of the Board, or (B) if there are no such
            Disinterested Directors or, if such Disinterested Directors so direct, by Independent
            Counsel in a written opinion to the Board, a copy of which shall be delivered to
            Indemnitee or (C) if so directed by the Board, by the stockholders of the Company; and,
            if it is so determined that Indemnitee is entitled to indemnification, payment to
            Indemnitee shall be made within thirty (30) days after such determination. Indemnitee
            shall cooperate with the person, persons or entity making such determination with
            respect to Indemnitee’s entitlement to indemnification, including providing to
            such person, persons or entity upon reasonable advance request any documentation or
            information which is not privileged or otherwise protected from disclosure and which is
            reasonably available to Indemnitee and reasonably necessary to such determination. Any
            costs or expenses (including attorneys’ fees and disbursements) incurred by
            Indemnitee in so cooperating with the person, persons or entity making such
            determination shall be borne by the Company (irrespective of the determination as to
            Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies
            and agrees to hold Indemnitee harmless therefrom.

            
             

            
            (c)       In the event the
            determination of entitlement to indemnification is to be made by Independent Counsel
            pursuant to Section 8(b) hereof, the Independent Counsel shall be selected as provided
            in this Section 8(c). If a Change in Control shall not have occurred, the Independent
            Counsel shall be selected by the Disinterested Directors or, if there are no such
            Disinterested Directors, by the Board of Directors, and the Company shall give written
            notice to Indemnitee advising him of the identity of the Independent Counsel so
            selected. If a Change in Control shall have occurred, the Independent Counsel shall be
            selected by Indemnitee (unless Indemnitee shall request that such selection be made by
            the Board of Directors, in which event the preceding sentence shall apply), and
            Indemnitee shall give written notice to the Company advising it of the identity of the
            Independent Counsel so selected. In either event, Indemnitee or the Company, as the
            case may be, may, within ten (10) days after such written notice of selection shall
            have been given, deliver to the

             

            
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            Company
            or to Indemnitee, as the case may be, a written objection to such selection;
            provided,
            however, that such objection may be
            asserted only on the ground that the Independent Counsel so selected does not meet the
            requirements of “Independent Counsel” as defined in Section 17 of this
            Agreement, and the objection shall set forth with particularity the factual basis of
            such assertion. Absent a proper and timely objection, the person so selected shall act
            as Independent Counsel. If such written objection is so made and substantiated, the
            Independent Counsel so selected may not serve as Independent Counsel unless and until
            such objection is withdrawn or the Court of Chancery of the State of Delaware or other
            court of competent jurisdiction has determined that such objection is without merit.
            If, within twenty (20) days after submission by Indemnitee of a written request for
            indemnification pursuant to Section 8(a) hereof, no Independent Counsel shall have been
            selected and not objected to, either the Company or Indemnitee may petition the Court
            of Chancery of the State of Delaware or other court of competent jurisdiction for
            resolution of any objection which shall have been made by the Company or Indemnitee to
            the other’s selection of Independent Counsel and/or for the appointment as
            Independent Counsel of a person selected by the Court or by such other person as the
            Court shall designate, and the person with respect to whom all objections are so
            resolved or the person so appointed shall act as Independent Counsel under Section 8(b)
            hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to
            Section 10(a) of this Agreement, Independent Counsel shall be discharged and relieved
            of any further responsibility in such capacity (subject to the applicable standards of
            professional conduct then prevailing).

            
             

            
            (d)       The Company shall not be
            required to obtain the consent of Indemnitee to the settlement of any Proceeding which
            the Company has undertaken to defend if the Company assumes full and sole
            responsibility for such settlement and the settlement grants Indemnitee a complete and
            unqualified release in respect of the potential liability. Indemnitee shall not
            unreasonably withhold his consent to any proposed settlement; provided, however, that
            the Company shall not settle any proceeding in any manner that would impose any penalty
            or limitation on Indemnitee without his written consent. The Company shall not be
            liable for any amount paid by Indemnitee in settlement of any Proceeding unless the
            Company has consented to such settlement, which consent shall not be unreasonably
            withheld.

            
             

            
            Section 9.        
            Presumptions and Effect of Certain Proceedings; Limitations on
            Indemnification.

            
             

            
            (a)       In making a determination
            with respect to entitlement to indemnification under this Agreement, the person or
            persons or entity making such determination shall presume that Indemnitee is entitled
            to indemnification under this Agreement if Indemnitee has submitted a request for
            indemnification in accordance with Section 8(a) of this Agreement, and the Company
            shall have the burden of proof to overcome that presumption in connection with the
            making by any person, persons or entity of any determination contrary to that
            presumption. Neither the failure of the Company (including by its directors or
            Independent Counsel) to have made a determination prior to the commencement of any
            action pursuant to this Agreement that indemnification is proper in the circumstances
            because Indemnitee has met the applicable standard of conduct, nor an actual
            determination by the Company (including by its directors or Independent Counsel) that
            Indemnitee has not met such applicable standard of conduct, shall be a defense to the
            action or create a presumption that Indemnitee has not met the applicable standard of
            conduct.

            
             

            
            (b)       If the person, persons or
            entity empowered or selected under Section 8 of this Agreement to determine whether
            Indemnitee is entitled to indemnification shall not have made a determination within
            sixty (60) days after receipt by the Company of the request therefor, the

             

            
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            requisite determination of entitlement to indemnification shall be
            deemed to have been made and Indemnitee shall be entitled to such indemnification,
            absent (i) a misstatement by Indemnitee of a material fact, or an omission of a
            material fact necessary to make Indemnitee’s statement not materially misleading,
            in connection with the request for indemnification, or (ii) a prohibition of such
            indemnification under applicable law;
            provided,
            however, that such sixty (60) day period
            may be extended for a reasonable time, not to exceed an additional thirty (30) days, if
            the person, persons or entity making the determination with respect to entitlement to
            indemnification in good faith requires such additional time for the obtaining or
            evaluating of documentation and/or information relating thereto; and provided, further,
            that the foregoing provisions of this Section 9(b) shall not apply (i) if the
            determination of entitlement to indemnification is to be made by the stockholders
            pursuant to Section 8(b) of this Agreement and if (A) within fifteen (15) days after
            receipt by the Company of the request for such determination the Board of Directors has
            resolved to submit such determination to the stockholders for their consideration at an
            annual meeting thereof to be held within seventy-five (75) days after such receipt and
            such determination is made thereat, or (B) a special meeting of stockholders is called
            within fifteen (15) days after such receipt for the purpose of making such
            determination, such meeting is held for such purpose within sixty (60) days after
            having been so called and such determination is made thereat, or (ii) if the
            determination of entitlement to indemnification is to be made by Independent Counsel
            pursuant to Section 8(b) of this Agreement.

            
             

            
            (c)       The termination of any
            Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or
            conviction, or upon a plea of nolo
            contendere or its equivalent, shall not
            (except as otherwise expressly provided in this Agreement or as otherwise required by
            law) of itself adversely affect the right of Indemnitee to indemnification or create a
            presumption that Indemnitee did not act in good faith and in a manner which he
            reasonably believed to be in or not opposed to the best interests of the Company or,
            with respect to any criminal Proceeding, that Indemnitee had reasonable cause to
            believe that his conduct was unlawful.

            
             

            
            (d)       The knowledge and/or
            actions, or failure to act, of any director, officer, agent or employee of the Company
            shall not be imputed to Indemnitee for purposes of determining the right to
            indemnification under this Agreement.

            
             

            
            (e)       Notwithstanding any other
            provision of this Agreement, no indemnification shall be paid or Expenses reimbursed
            under this Agreement on account of any judgment rendered against Indemnitee (i) in a
            matter for which indemnification is not permitted under applicable law (federal or
            state) or (ii) for an accounting of profits made from the purchase and sale of
            securities of the Company under Section 16 of the Securities Exchange Act of 1934, as
            amended. Any provision herein to the contrary notwithstanding, the Company shall not be
            obligated pursuant to the terms of this Agreement to indemnify Indemnitee or otherwise
            act in violation of any undertaking appearing in and required by the rules and
            regulations promulgated under the Securities Act in any registration statement filed
            with the Securities and Exchange Commission under the Securities Act. Indemnitee
            acknowledges that paragraph (h) of Item 512 of Regulation S-K currently generally
            requires the Company to undertake in connection with any registration statement filed
            under the Act to submit the issue of the enforceability of Indemnitee’s rights
            under this Agreement in connection with any liability under the Securities Act on
            public policy grounds to a court of appropriate jurisdiction and to be governed by any
            final adjudication of such issue. Indemnitee specifically agrees that any such
            undertaking shall supersede the provisions of this Agreement and to be bound by any
            such undertaking.

             

            
                	
                            
                             

                        	
                            
                            Section 10.

                        	
                            
                            Remedies of
                            Indemnitee.

                        

            

             

             

            
            5

             

            
            

            

            

             

            
            (a)       In the event that (i) a
            determination is made pursuant to Section 8 of this Agreement that Indemnitee is not
            entitled to indemnification under this Agreement, (ii) advancement of Expenses is not
            timely made pursuant to Section 7 of this Agreement, (iii) no determination of
            entitlement to indemnification shall have been made pursuant to Section 8(b) of this
            Agreement within ninety (90) days after receipt by the Company of the request for
            indemnification, (iv) payment of indemnification required under Section 5, Section 6,
            the last sentence of Section 8(b) or the last sentence of Section 17(g) of this
            Agreement is not made within fifteen (15) days after receipt by the Company of a
            written request therefor, or (v) payment of indemnification pursuant to Section 3 or 4
            of this Agreement is not made within thirty (30) days after a determination has been
            made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an
            adjudication by the Court of Chancery of the State of Delaware of his entitlement to
            such indemnification or advancement of Expenses. Alternatively, in accordance with this
            Section 10, Indemnitee, at his option, may seek an award in arbitration to be conducted
            by a single arbitrator pursuant to the Commercial Arbitration rules of the American
            Arbitration Association. Indemnitee shall commence such proceeding seeking an
            adjudication or an award in arbitration within one hundred eighty (180) days following
            the date on which Indemnitee first has the right to commence such proceeding pursuant
            to this Section 10(a);
            provided,
            however, that the foregoing clause shall
            not apply in respect of a proceeding brought by Indemnitee to enforce his rights under
            Section 5 of this Agreement. The Company shall not oppose Indemnitee’s right to
            seek any such adjudication or award in arbitration.

             

            
            (b)       In the event that a
            determination shall have been made pursuant to Section 8(b) of this Agreement that
            Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration
            commenced pursuant to this Section 10 shall be conducted in all respects as a
            de novo trial,
            or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that
            adverse determination.

             

            
            (c)       If a determination shall
            have been made pursuant to Section 8(b) of this Agreement that Indemnitee is entitled
            to indemnification, the Company shall be bound by such determination in any judicial
            proceeding or arbitration commenced pursuant to this Section 10, absent (i) a
            misstatement by Indemnitee of a material fact, or an omission of a material fact
            necessary to make Indemnitee’s statement not materially misleading, in connection
            with the request for indemnification, or (ii) a prohibition of such indemnification
            under applicable law.

             

            
            (d)       In the event that
            Indemnitee, pursuant to this Section 10, seeks a judicial adjudication of or an award
            in arbitration to enforce his rights under, or to recover damages for breach of, this
            Agreement, Indemnitee shall be entitled to recover from the Company, and shall be
            indemnified by the Company against, any and all expenses (of the types described in the
            definition of Expenses in Section 17 of this Agreement) actually and reasonably
            incurred by him in such judicial adjudication or arbitration, but only if (and only to
            the extent) he prevails therein. If it shall be determined in said judicial
            adjudication or arbitration that Indemnitee is entitled to receive part but not all of
            the indemnification or advancement of Expenses sought, the expenses incurred by
            Indemnitee in connection with such judicial adjudication or arbitration shall be
            appropriately prorated.

             

            
            (e)       The Company shall be
            precluded from asserting in any judicial preceding or arbitration commenced pursuant to
            this Section 10 that the procedures and presumptions of this Agreement are not valid,
            binding and enforceable and shall stipulate in any such court or before any such
            arbitrator that the Company is bound by all the provisions of this
            Agreement.

             

            
            6

             

            
            

            

            

             

            
                	
                            
                             

                        	
                            
                            Section 11.

                        	
                            
                            Non-Exclusivity: Survival of Rights; Insurance;
                            Subrogation.

                        

            

             

            
            (a)       The rights of
            indemnification and to receive advancement of Expenses as provided by this Agreement
            shall not be deemed exclusive of any other rights to which Indemnitee may at any time
            be entitled under applicable law, the Company’s Certificate of Incorporation, the
            Company’s Bylaws, any other agreement, a vote of stockholders or a resolution of
            directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any
            provision hereof shall limit or restrict any right of Indemnitee under this Agreement
            in respect of any action taken or omitted by such Indemnitee in his Corporate Status
            prior to such amendment, alteration or repeal. To the extent that a change in the
            General Corporation Law of the State of Delaware, whether by statute or judicial
            decision, permits greater indemnification or advancement of Expenses than would be
            afforded currently under the Company’s Bylaws and this Agreement, it is the
            intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater
            benefits so afforded by such change. No right or remedy herein conferred is intended to
            be exclusive of any other right or remedy, and every other right and remedy shall be
            cumulative and in addition to every other right and remedy given hereunder or now or
            hereafter existing at law or in equity or otherwise. The assertion or employment of any
            right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
            employment of any other right or remedy.

             

            
            (b)       To the extent that the
            Company maintains an insurance policy or policies providing liability insurance for
            directors, officers, employees or agents of the Company or of any other corporation,
            partnership, joint venture, trust, employee benefit plan or other enterprise which such
            person serves at the request of the Company, Indemnitee shall be covered by such policy
            or policies in accordance with its or their terms to the maximum extent of the coverage
            available for any such director, officer, employee or agent under such policy or
            policies.

             

            
            (c)       In the event of any payment
            under this Agreement, the Company shall be subrogated to the extent of such payment to
            all of the rights of recovery of Indemnitee, and Indemnitee shall execute all papers
            required and take all action necessary to secure such rights, including execution of
            such documents as are necessary to enable the Company to bring suit to enforce such
            rights.

             

            
            (d)       The Company shall not be
            liable under this Agreement to make any payment of amounts otherwise indemnifiable (or
            for which advancement is provided hereunder) hereunder if and to the extent that
            Indemnitee has otherwise actually received such payment under any insurance policy,
            contract, agreement or otherwise.

             

            
            (e)       The Company’s
            obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was
            serving at the request of the Company as a director, officer, employee or agent of any
            other corporation, partnership, joint venture, trust, employee benefit plan or other
            enterprise shall be reduced by any amount Indemnitee has actually received as
            indemnification or advancement of expenses from such other corporation, partnership,
            joint venture, trust, employee benefit plan or other enterprise.

             

            
            Section 12.      
            Duration of Agreement; Successors and
            Assigns. This Agreement shall continue until and terminate
            upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased
            to serve as an officer or director of the Company or any subsidiary of the Company or
            as an officer, director, employee or agent of any other corporation, partnership, joint
            venture, trust,

             

            
            7

             

            
            

            

            

            
            employee benefit plan or other enterprise which Indemnitee served at the
            request of the Company; or (b) the final termination of any Proceeding then pending in
            respect of which Indemnitee is granted rights of indemnification or advancement of
            Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 10
            of this Agreement relating thereto. This Agreement shall be binding upon the Company
            and its successors and assigns (including any direct or indirect successor by purchase,
            merger, consolidation or otherwise to all or substantially all of the business or
            assets of the Company) and shall inure to the benefit of Indemnitee and his heirs,
            executors and administrators. In the event that the Company shall be a constituent
            corporation in a consolidation, merger or other reorganization, the Company, if it
            shall not be the surviving, resulting or acquiring company therein, shall require as a
            condition thereto that the surviving, resulting or acquiring company agree to indemnify
            Indemnitee to the full extent provided herein. Whether or not the Company is the
            resulting, surviving or acquiring company in any such transaction, Indemnitee shall
            also stand in the same position under this Agreement with respect to the resulting,
            surviving or acquiring company as he or she would have with respect to the Company if
            its separate existence had continued. The Company shall require and cause any successor
            (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all,
            substantially all, or a substantial part of the business and/or assets of the Company,
            by written agreement in form and substance satisfactory to Indemnitee, expressly to
            assume and agree to perform this Agreement in the same manner and to the same extent
            that the Company would be required to perform if not such succession had taken
            place.

             

            
            Section 13.      
            Severability. If any provision or
            provisions of this Agreement shall be held to be invalid, illegal or unenforceable for
            any reason whatsoever: (a) the validity, legality and enforceability of the remaining
            provisions of this Agreement (including without limitation, each portion of any Section
            of this Agreement containing any such provision held to be invalid, illegal or
            unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any
            way be affected or impaired thereby and shall remain enforceable to the fullest extent
            permitted by law; (b) such provision or provisions shall be deemed reformed to the
            extent necessary to conform to applicable law and to give the maximum effect to the
            intent of the parties hereto; and (c) to the fullest extent possible, the provisions of
            this Agreement (including, without limitation, each portion of any Section of this
            Agreement containing any such provision held to be invalid, illegal or unenforceable,
            that is not itself invalid, illegal or unenforceable) shall be construed so as to give
            effect to the intent manifested thereby.

             

            
            Section 14.      
            Exception to Right of Indemnification or Advancement of
            Expenses. Notwithstanding any other provision of this
            Agreement, but subject to Section 10(d) hereof, Indemnitee shall not be entitled to
            indemnification or advancement of Expenses under this Agreement with respect to any
            Proceeding brought by Indemnitee, or any claim therein, unless the bringing of such
            Proceeding or making of such claim shall have been approved by the Board of
            Directors.

             

            
            Section 15.      
            Identical Counterparts. This Agreement may
            be executed in one or more counterparts, each of which shall for all purposes be deemed
            to be an original but all of which together shall constitute one and the same
            Agreement. Only one such counterpart signed by the party against whom enforceability is
            sought needs to be produced to evidence the existence of this Agreement.

             

            
            Section 16.      
            Headings. The headings of the paragraphs of
            this Agreement are inserted for convenience only and shall not be deemed to constitute
            part of this Agreement or to affect the construction thereof.

             

            
            8

             

            
            

            

            

             

            
                	
                            
                             

                        	
                            
                            Section 17.

                        	
                            
                            Definitions. For purposes
                            of this Agreement:

                        

            

             

            
            (a)       “Change in
            Control” means a change in control of the Company occurring after the Effective
            Date of a nature that would be required to be reported in response to Item 6(e) of
            Schedule 14A of Regulation 14A (or in response to any similar item on any similar
            schedule or form) promulgated under the Securities Exchange Act of 1934 (the
            “Act”), whether or not the Company is then subject to such reporting
            requirement; provided,
            however, that, without limitation, such a
            Change in Control shall be deemed to have occurred if after the Effective Date (i) any
            “person” (as such term is used in Section 13(d) and 14(d) of the Act)
            (other than (A) a trustee or other fiduciary holding securities under an employee
            benefit plan of the Company or (B) a corporation owned directly or indirectly by the
            stockholders of the Company in substantially the same proportions as their ownership of
            stock of the Company) is or becomes the “beneficial owner” (as defined in
            Rule 13d-3 under the Act), directly or indirectly, of securities of the Company
            representing 30% or more of the combined voting power of the Company’s then
            outstanding securities without the prior approval of at least two-thirds of the members
            of the Board in office immediately prior to such person attaining such percentage
            interest; (ii) there occurs a proxy contest, or the Company is a party to a merger,
            consolidation, sale of assets, plan of liquidation or other reorganization not approved
            by at least two-thirds of the members of the Board then in office, as a consequence of
            which members of the Board in office immediately prior to such transaction or event
            constitute less than a majority of the Board thereafter; or (iii) during any period of
            two consecutive years, other than as a result of an event described in clause (a)(ii)
            of this Section 17, individuals who at the beginning of such period constituted the
            Board (including for this purpose any new director whose election or nomination for
            election by the Company’s stockholders was approved by a vote of at least
            two-thirds of the directors then still in office who were directors at the beginning of
            such period) cease for any reason to constitute at least a majority of the
            Board.

             

            
            (b)       “Corporate
            Status” describes the status of a person who is or was (i) an officer or director
            of the Company or any subsidiary of the Company or (ii) an officer, director, employee
            or agent of any other corporation, partnership, joint venture, trust, employee benefit
            plan or other enterprise which such person is or was serving at the request of the
            Company.

             

            
            (c)       “Disinterested
            Director” means a director of the Company who is not and was not a party to the
            Proceeding in respect of which indemnification is sought by Indemnitee.

             

            
                	
                            
                             

                        	
                            
                            (d)

                        	
                            
                            “Effective Date” means May 1,
                            2008.

                        

            

             

            
            (e)       “Expenses”
            shall include all reasonable attorneys’ fees, retainers, court costs, transcript
            costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
            binding costs, telephone charges, postage, delivery service fees, and all other
            disbursements or expenses of the types customarily incurred in connection with
            prosecuting, defending, preparing to prosecute or defend, investigating, being or
            preparing to be a witness in, or otherwise participating in, a Proceeding.

             

            
            (f)        “Good
            Faith” shall mean Indemnitee having acted in good faith and in a manner
            Indemnitee reasonably believed to be in or not opposed to the best interests of the
            Company, and, with respect to any criminal Proceeding, having had no reasonable cause
            to believe Indemnitee’s conduct was unlawful.

             

             

            
            9

             

            
            

            

            

            
            (g)       “Independent
            Counsel” means a law firm, or a member of a law firm, that is experienced in
            matters of corporation law and neither presently is, nor in the past five (5) years has
            been, retained to represent: (i) the Company or Indemnitee in any matter material to
            either such party (other than with respect to matters concerning Indemnitee under this
            Agreement, or of other indemnitees under similar indemnification agreements, or (ii)
            any other party to the Proceeding giving rise to a claim for indemnification hereunder.
            Notwithstanding the foregoing, the term “Independent Counsel” shall not
            include any person who, under the applicable standards of professional conduct then
            prevailing, would have a conflict of interest in representing either the Company or
            Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
            The Company agrees to pay the reasonable fees and expenses of the Independent Counsel
            referred to above and to fully indemnify such counsel against any and all Expenses,
            claims, liabilities and damages arising out of or relating to this Agreement or its
            engagement pursuant hereto.

             

            
            (h)       “Proceeding”
            includes any threatened, pending or completed action, suit, arbitration, alternate
            dispute resolution mechanism, investigation, inquiry, administrative hearing or any
            other actual, threatened or completed proceeding, whether brought by or in the right of
            the Company or otherwise, including any counterclaims therein, and whether civil,
            criminal, administrative or investigative, in which Indemnitee was, is or will be
            involved as a party or otherwise, by reason of the fact of Indemnitee’s Corporate
            Status, by reason of any action taken by him or of any inaction on his part while
            acting as an officer or director of the Company or any subsidiary of the Company or by
            reason of the fact that he is or was serving at the request of the Company as a
            director, officer, employee or agent of any other corporation, partnership, joint
            venture, trust or other enterprise, in each case whether or not (i) the claim arose, or
            is based on facts occurring, before or after the Effective Date and (ii) he is acting
            or serving in any such capacity at the time any liability or Expenses are incurred for
            which indemnification or advancement of Expenses can be provided under this
            Agreement.

             

            
                	
                            
                             

                        	
                            
                            Section 18.

                        	
                            
                            Enforcement.

                        

            

             

            
            (a)       The Company expressly
            confirms and agrees that it has entered into this Agreement and assumed the obligations
            imposed on it hereby in order to induce Indemnitee to continue to serve as an officer
            of the Company, and the Company acknowledges that Indemnitee is relying upon this
            Agreement in serving as an officer of the Company.

             

            
            (b)       This Agreement constitutes
            the entire agreement between the parties hereto with respect to the subject matter
            hereof and supersedes all prior agreements and understandings, oral, written and
            implied, between the parties hereto with respect to the subject matter
            hereof.

             

            
            Section 19.      
            Modification and Waiver. No supplement,
            modification or amendment of this Agreement shall be binding unless executed in writing
            by both of the parties hereto. No waiver of any of the provisions of this Agreement
            shall be deemed or shall constitute a waiver of any other provisions hereof (whether or
            not similar) nor shall such waiver constitute a continuing waiver.

             

            
            Section 20.      
            Notice by Indemnitee. Indemnitee agrees
            promptly to notify the Company in writing upon being served with any summons, citation,
            subpoena, complaint, indictment, information or other document relating to any
            Proceeding or matter which may be subject to indemnification or advancement of Expenses
            covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve
            the Company of any obligation which it may have to Indemnitee under this Agreement or
            otherwise, except to the extent the Company is materially prejudiced by such
            failure.

             

            
            10

             

            
            

            

            

             

            
            Section 21.      
            Notices. All notices, requests, demands and
            other communications hereunder shall be in writing and shall be deemed to have been
            duly given if (i) delivered by hand and receipted for by the party to whom said notice
            or other Communication shall have been directed, or (ii) mailed by certified or
            registered mail with postage prepaid, on the third business day after the date on which
            it is so mailed:

             

            
                	
                            
                             

                        	
                            
                            (a)

                        	
                            
                            If to Indemnitee, to:

                        

            

            
                	
                            
                             

                        	
                            
                            Frank G. Paci

                        

            

            
                	
                            
                             

                        	
                            
                            c/o The Pantry, Inc.

                        

            

            
                	
                            
                             

                        	
                            
                            1801 Douglas Drive

                        

            

            
                	
                            
                             

                        	
                            
                            Sanford, North Carolina 27330

                        

            

            
                	
                            
                             

                        	
                            
                            Telephone: (919) 774-6700

                        

            

            
                	
                            
                             

                        	
                            
                            Facsimile: (919) 774-3329

                        

            

             

            
                	
                            
                             

                        	
                            
                            (b)

                        	
                            
                            If to the Company, to:

                        

            

            
                	
                            
                             

                        	
                            
                            The Pantry, Inc.

                        

            

            
                	
                            
                             

                        	
                            
                            1801 Douglas Drive

                        

            

            
                	
                            
                             

                        	
                            
                            Sanford, North Carolina 27330

                        

            

            
                	
                            
                             

                        	
                            
                            Telephone: (919) 774-6700

                        

            

            
                	
                            
                             

                        	
                            
                            Facsimile: (919) 774-3329

                        

            

            
                	
                            
                             

                        	
                            
                            Attention: Chief Executive Officer

                        

            

             

            or to
            such other address as may have been furnished to Indemnitee by the Company or to the
            Company by Indemnitee, as the case may be.

             

            
            Section 22.      
            Contribution. To the fullest extent
            permissible under applicable law, if the indemnification provided for in this Agreement
            is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of
            indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether
            for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement
            and/or for Expenses, in connection with any claim relating to an indemnifiable event
            under this Agreement, in such proportion as is deemed fair and reasonable in light of
            all of the circumstances of such Proceeding in order to reflect (i) the relative
            benefits received by the Company and Indemnitee as a result of the event(s) and/or
            transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the
            Company (as its directors, officers, employees and agents) and Indemnitee in connection
            with such event(s) and/or transaction(s).

             

            
            Section 23.      
            Governing Law; Submission to Jurisdiction; Appointment of Agent for
            Service of Process. This Agreement and the legal relations
            among the parties shall be governed by, and construed and enforced in accordance with,
            the laws of the State of Delaware, without regard to its conflict of laws rules. Except
            with respect to any arbitration commenced by Indemnitee pursuant to Section 10(a) of
            this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i)
            agree that any action or proceeding arising out of or in connection with this Agreement
            shall be brought only in the Chancery Court of the State of Delaware (the
            “Delaware Court”), and not in any other state or federal court in the
            United States of America or any court in any other country, (ii) consent to submit to
            the exclusive jurisdiction of the Delaware Court for purposes of any action or
            proceeding arising out of or in connection with this Agreement, (iii) appoint, to the
            extent such party is not a resident of the State of Delaware, irrevocably RL&F
            Service Corp., One Rodney Square, 10th Floor, 10th and King
            Streets, Wilmington, Delaware 19801 as its agent in the

             

            
            11

             

            
            

            

            

            State
            of Delaware as such party’s agent for acceptance of legal process in connection
            with any such action or proceeding against such party with the same legal force and
            validity as if served upon such party personally within the State of Delaware, (iv)
            waive any objection to the laying of venue of any such action or proceeding in the
            Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any
            such action or proceeding brought in the Delaware Court has been brought in an improper
            or otherwise inconvenient forum.

             

            
            Section 24.      
            Miscellaneous. Use of the masculine pronoun
            shall be deemed to include usage of the feminine pronoun where appropriate.

             

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

             

            
                	
                            
                             

                        	
                            
                             

                        	
                            
                            THE PANTRY, INC.

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                            By:

                        	
                            
                            /s/ Peter J. Sodini

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                            Peter J. Sodini

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                            President & CEO

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                            INDEMNITEE:

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                            /s/ Frank G. Paci

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                            Frank G. Paci

                        
	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        	
                            
                             

                        

            

             

             

             

             

             

             

            
            12

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