Document:

Exhibit 10.3 - Zelmanovich Employment Agreement

Exhibit 10.3

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into by THE PANTRY, INC., a Delaware corporation (the "Corporation") and Boris Zelmanovich (the "Employee") and shall be effective as of June 3, 2013 (the "Effective Date").
The Corporation desires to employ Employee and Employee desires to accept such employment on the terms set forth below.
In consideration of the mutual promises set forth below and other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the Corporation and Employee agree as follows:

1.EMPLOYMENT.     The Corporation employs Employee and Employee accepts employment on the terms and conditions set forth in this Agreement. Employee shall serve as Senior Vice President, Chief Merchandising Officer and have such responsibilities and authority as the Corporation may assign from time to time. Employee, at the Corporation's discretion, may be reassigned or transferred to different units or locations; provided, however, that Employee shall not be required to be based more than fifty (50) miles from his assigned Corporate office on his initial date of employment.
1.1    Employee shall perform all duties and exercise all authority in accordance with, and otherwise comply with, all Corporation policies, procedures, practices and directions.
1.2    Employee shall devote all working time and best efforts to successfully perform his duties and advance the Corporation's interests. During his employment, Employee shall not engage in any other business activities of any nature whatsoever (including board memberships) for which he receives compensation without the Corporation's prior consent; provided, however, this provision does not prohibit him from personally owning and trading in stocks, bonds, securities, real estate, commodities or other investment properties for his own benefit which do not create actual or potential conflicts of interest with the Corporation.

2.COMPENSATION.
2.1    Base Salary. Employee's annual salary for all services rendered shall be Three Hundred Thirty-Five Thousand Dollars and Zero Cents ($335,000.00) less any applicable taxes and withholdings, payable in accordance with the Corporation's policies, procedures and practices as they may exist from time to time. Employee's salary periodically may be subject to annual increases in the Corporation's discretion in accordance with its policies, procedures and practices as they may exist from time to time.
2.2    Bonus Programs. Employee may participate in any incentive program which may be made available from time to time to Corporation's employees at Employee's level; provided, however, that Employee's participation is subject to the applicable terms, conditions and eligibility requirements of the program, as they may exist from time to time.

2.3    Benefits. Employee may participate in all medical, dental, disability, insurance, 401(k), pension, vacation and other employee benefit plans and programs which may be made available from time to time to Corporation employees at Employee's level; provided, however, that Employee's participation is subject to the applicable terms, conditions and eligibility requirements of these plans and programs, some of which are within the plan administrator's discretion, as they may exist from time to time. Notwithstanding 

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the foregoing, Employee shall be entitled to a minimum off our (4) weeks of annual vacation. Subject to applicable state law, accrued, unused vacation may not be carried over from year to year.
2.4    Relocation Expenses. The Corporation will assist Employee in relocating to North Carolina by providing relocation assistance under the Corporation's regular relocation practices and policies at a type and level currently offered to employees with a similar position and title. Provided, however, no such relocation expenses shall be paid later than March 15 of the year following the year in which the expense was incurred.
2.5    Benefit Plans Subject to Amendment. Nothing in this Agreement shall require the Corporation to create, continue or refrain from amending, modifying, revising or revoking any of the plans, programs or benefits set forth in Sections 2.2, 2.3 and 2.4. Employee acknowledges that the Corporation, in its sole discretion, may amend, modify, revise or revoke any such plans, programs or benefits. Any amendments, modifications, revisions and revocations of these plans, programs and benefits shall apply to Employee. Nothing in this Agreement shall afford Employee any greater rights or benefits with regard to these plans, programs and benefits than are afforded to him under their applicable terms, conditions and eligibility requirements, some of which are within the plan administrator's discretion, as they may exist from time to time.
2.6    Offset for Disability Payments. If at any time during which Employee is receiving salary or post-termination payments from the Corporation, he receives payments on account of mental or physical disability from any Corporation-provided plan, then the Corporation, in its discretion, may reduce his salary or post-termination payments by the amount of such disability payments.
2.7    Clawback Provision. It is the Corporation's Policy that, consistent with Section 954 of the Dodd-Frank Act, in the event that the Corporation is required to prepare an accounting restatement due to the material noncompliance of the Corporation with any financial reporting requirement under the securities laws, the Corporation will seek to recover from any current or former executive officer of the Corporation who received incentive-based compensation (including stock options and performance shares awarded as compensation) during the 3-year period preceding the date on which the Corporation is required to prepare the accounting restatement, the amount, based on the erroneous data, in excess of what would have been paid to the executive officer under the accounting restatement. The Corporation will implement this Policy in accordance with the rules of the Securities Exchange Commission, as they are promulgated. Pursuant to this agreement, Employee agrees to promptly return to the Corporation any and all amounts received pursuant to this Agreement to the extent the Corporation is entitled or required to recover such amounts by the terms of (i) the Corporation's Executive Compensation Recoupment Policy or other clawback or recoupment policy, as adopted, amended, implemented, and interpreted by the Corporation from time to time, and/or (ii) Section 954 of the Dodd-Frank Act (as may be amended) and any applicable rules or regulations promulgated by the Securities Exchange Commission.
3.TERM OF EMPLOYMENT AND TERMINATION. The original term of employment under this Agreement shall be two (2) years after the Effective Date listed above and subject to the following provisions:
3.1    Automatic Renewal. Upon the expiration of the original term or any renewal term of employment, Employee's employment shall be automatically renewed for a one (1) year period unless, at least sixty (60) days prior to the renewal date, either party gives the other party written notice of its intent not to continue the employment relationship. During any renewal term of employment, the terms, conditions and provisions set forth in this Agreement shall remain in effect unless modified in accordance with Section 8.

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3.2    Without Cause. During the original or any renewal term, this Agreement and the employment relationship hereunder shall be terminated without cause thirty (30) days after either the Corporation or Employee gives notice of such termination to the other party.
3.3    With Cause. The Corporation may terminate this Agreement and Employee's employment hereunder immediately without notice at any time for the following reasons which shall constitute "Cause": (i) gross negligence or willful misconduct in the performance of the Employee's duties; (ii) Employee's insubordination in responding to any specific, reasonable instructions from the Corporation's Chief Executive Officer or written reasonable instructions from the Board of Directors; (iii) conduct by Employee which is demonstrably and materially injurious to the Corporation, monetarily or otherwise; or (iv) the conviction of Employee of, or the entry of a plea of guilty or nolo contendere by Employee to, any crime involving moral turpitude or any felony. Prior to a termination pursuant to Section 3.3(i), Employee shall be given written notice of the manner in which he has failed to perform and a thirty (30) day opportunity to cure such failure.
3.4    Death or Disability. The Corporation may terminate Employee's employment without notice in the event of Employee's death or "Disability" which shall mean Employee's physical or mental inability to perform the essential functions of his duties with or without reasonable accommodation for a period of 180 consecutive days or 180 days in total within a 365-day period as determined by the Corporation in its reasonable discretion and in accordance with applicable law.
3.5    Survival. Section 4 (Compensation Upon Termination), Section 5 (Competitive Business Activities, Trade Secrets, Confidential Information and Corporation Property), and Section 6 (Change in Control) shall survive the expiration or termination of this Agreement, regardless of the reasons for such expiration or termination, until the obligations set forth therein have been satisfied.
4.COMPENSATION UPON TERMINATION.
4.1    By Corporation For Cause or By Employee Without Cause or By Employee Notice of Non-Renewal. If Employee's employment is terminated by the Corporation for Cause or by Employee without cause or by Employee notice of non-renewal, the Corporation's obligation to compensate Employee ceases on the effective termination date except as to amounts due at that time.
4.2    By Corporation by Non-Renewal or Without Cause. If the Corporation terminates Employee's employment by notice of non-renewal or without Cause, then Employee shall be entitled to receive:

(A)amounts due on the effective termination date;

(B)a prorated bonus for the fiscal year in which the effective termination date occurs. The amount of the pro-rata bonus paid will be determined based on actual results of the Employee and Corporation and days worked by Employee during the year. The bonus will be paid at the same time as bonuses are paid to other employees with a similar position and title;

(C)if the termination is by the Corporation without Cause in the first two years of employment under this Agreement, an amount equal to the greater of Employee's then current monthly salary for the then remaining months in the original term of this Agreement or for twelve (12) months, less any applicable taxes and withholdings and payable, subject to section 4.2(D) below, in substantially equal installments on the last business day of each applicable month and, if the termination or nonrenewal is after 

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the first two years of employment hereunder, an amount (less any applicable taxes and withholdings) equal to Employee's then current monthly salary for twelve (12) months, payable in substantially equal installments on the last business day of each applicable month ("Severance Payments"). Such Severance Payments shall commence in the month immediately following the month in which the release of claims required by Section 4.4 becomes effective. During the period in which Employee is receiving the Severance Payments, if Employee accepts employment or a consultancy with another entity or becomes self-employed, then he must notify the Corporation before such employment or consultancy begins and the payments made pursuant to Section 4.2(C) shall be reduced by the amount of compensation to be paid to him in connection with such employment, consultancy or self-employment. If Employee does not notify the Corporation in accordance with this provision, then its obligation to make payments or further payments pursuant to Section 4.2(C) shall cease;

(D)In order to ensure compliance with Section 409A and notwithstanding Sections B and C above, all severance payments will paid to the Employee prior to March 15 of the year following the calendar year of termination. If the payments would otherwise extend beyond such date, prior to the applicable March 15, the remaining balance of the severance amounts will be paid to the Employee in a lump sum; and

(E)unless Employee obtains comparable group health insurance coverage from a subsequent employer, then, for the twelve (12) months following the termination of Employee's employment, Employee may elect to continue participation in the Corporation's group health insurance plan in which Employee participated upon termination of employment by electing continuation coverage under the Consolidated Omnibus Budget Reconciliation Act ("COBRA"). For the twelve (12) month continuation period, the Corporation shall reimburse Employee for that portion of the COBRA premiums in excess of the amount Employee paid for group health plan coverage immediately prior to termination from employment. In the event Employee prefers to obtain coverage under an individual health insurance policy that is less expensive than COBRA coverage rather than electing COBRA continuation coverage, the Corporation shall, for twelve (12) months, reimburse Employee for that portion of the premium payments that are in excess of the amount Employee paid for group health plan coverage immediately prior to termination of employment. All such reimbursements required pursuant to this Section 4.2(E) shall be paid as soon as reasonably practicable following employee's submission of proof of timely premium payments to the Corporation, subject to the following: (i) all such claims for reimbursement shall be submitted by Employee and paid by the Corporation no later than fifteen (15) months following Employee's termination of employment, (ii) any claims for reimbursements shall be paid no later than the end of the calendar year after the calendar year in which the reimbursable expense is incurred, (iii) reimbursements in one calendar year shall not affect those payable in any later calendar year, and (iv) no benefit provided under this Section 4.2(E) may be cashed out or exchanged for other benefits
4.3    Death or Disability. If Employee's employment is terminated because of Employee's death either before or after a Change in Control (as hereinafter defined), then the Corporation shall pay to the estate of Employee an amount (less any applicable taxes and withholdings) equal to Employee's then current monthly salary for six (6) months. If Employee's employment is terminated because of Disability either before or after a Change in Control, then the Corporation shall pay Employee his then current monthly salary (less any applicable taxes and withholdings) for a period equal to the shorter of: (i) six (6) months from the date of termination; or, (ii) the time period from the date of termination through the date on which Employee begins receiving long term disability insurance benefits in accordance with the Corporation's long term disability plan. Any payments paid to Employee or his estate pursuant to this Section shall be paid in periodic, substantially equal installments; provided, however, that all such amounts payable shall 

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be paid no later than two and one-half (21⁄2) months following the end of the calendar year in which Employee's employment terminated.
4.4    Severance Pursuant to Agreement.
The Corporation's obligation to provide the payments under Sections 4.2, 4.3 (except in the event of termination because of Employee's death) and Section 6.3 is conditioned upon Employee's execution of an enforceable release of all claims and his compliance with Section 5 hereof (specifically including the return of all Corporation property, including but not limited to documents and electronic information). The required release shall contain a non-disparagement clause, confidentiality agreement and agreement to cooperate and shall be provided to Employee within seven (7) days following the date of his separation from service. Employee must execute the release within the time period specified in the release (which shall not be longer than forty-five (45) days from the date of Employee's receipt of the release). Such release shall not be effective until any applicable revocation period, which shall be no more than seven (7) days, has expired. If Employee chooses not to execute such a release or fails to comply with Section 5 of this Agreement, then the Corporation's obligation to compensate him ceases on the effective termination date except as to amounts due at that time.
Employee is not entitled to receive any compensation or benefits upon his termination except as: (i) set forth in this Agreement; (ii) otherwise required by law; or (iii) otherwise required by any employee benefit plan in which he participates; provided, however, that the terms and conditions afforded Employee under this Agreement are in lieu of any severance benefits to which he otherwise might be entitled pursuant to a severance plan, policy or practice. Nothing in this Agreement, however, is intended to waive or supplant any death, disability, retirement, 401(k) or pension benefits to which Employee may be entitled under employee benefit plans in which Employee participates.
5.COMPETITIVE BUSINESS ACTIVITIES, TRADE SECRETS, CONFIDENTIAL INFORMATION AND CORPORATION PROPERTY. Employee acknowledges that by virtue of Employee's employment and position with the Corporation, Employee (i) has or will have access to trade secrets and Confidential Information (as defined in Section 5.2(B)) of the Corporation including valuable information about its business operations and entities with whom it does business in various locations, and (ii) has developed or will develop relationships with parties with whom it does business in various locations. Employee also acknowledges that the trade secrets, Confidential Information and Competitive Business Activities provisions set forth in this Agreement are reasonably necessary to protect the Corporation's legitimate business interests, are reasonable as to the time, territory and scope of activities which are restricted, do not interfere with public policy or public interest and are described with sufficient accuracy and definiteness to enable him to understand the scope of the restrictions imposed on him.
5.1      Competitive Business Activities. Without the Corporation's prior written approval, during Employee's employment and for twelve (12) months following termination of employment regardless of the reason for such termination:
(A)    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 with gas sales 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. Notwithstanding the foregoing, Employee's ownership, directly or indirectly, of not more than one percent of the issued and outstanding stock of a corporation the shares of which are regularly traded on a national securities exchange or in the over-the-counter market shall not violate Section 5.1(A).

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(B)    Employee will not directly or indirectly, request or induce any other employee of the Corporation to: (i) terminate employment with the Corporation, or (ii) accept employment with another business entity, or (iii) become engaged in the convenience store business in competition with the Corporation.
5.2    Trade Secrets; Confidential Information.

(A)Employee hereby covenants and agrees not to use or disclose any Confidential Information (as hereinafter defined) or trade secrets except to authorized representatives of the Corporation or except as required by any governmental or judicial authority; provided, however, that the foregoing restrictions shall not apply to items that, through no fault of Employee's, have entered the public domain.

(B)Confidential Information. For purposes of this Agreement, "Confidential Information" means any data or information with respect to the business conducted by the Corporation, other than trade secrets, that is material to the Corporation and not generally known by the public. To the extent consistent with the foregoing definition, Confidential Information includes without limitation: (i) reports, pricing, pay/salary information, bonus information, sales manuals and training manuals, selling and pricing procedures, and financing methods of the Corporation, together with any techniques utilized by the Corporation in designing, developing, manufacturing, testing or marketing its products or in performing services for clients, customers and accounts of the Corporation; and (ii) the business plans, financial statements, reports and projections of the Corporation, and the Corporation's prospective strategic or expansion plans.

(C)Corporation Property. Employee acknowledges that all trade secrets and Confidential Information are and shall remain the sole, exclusive and valuable property of the Corporation and that Employee has and shall acquire no right, title or interest therein. Any and all printed, typed, written and other material which Employee may have or obtain with respect to trade secrets or Confidential Information (including without limitation all copyrights therein) shall be and remain the exclusive property of the Corporation, and any and all such material (including any copies) and all other Corporation property shall, upon request of the Corporation, be promptly delivered by Employee to the Corporation.
5.3        Other Agreements. Nothing in this Agreement shall terminate, revoke or diminish Employee's obligations or the Corporation's rights and remedies under law or any agreements relating to trade secrets, confidential information, or non-competition which Employee has executed in the past or may execute in the future or contemporaneously with this Agreement.
6.CHANGE IN CONTROL.
6.1     Definition of Change in Control. For purposes of this Agreement, a "Change in Control" shall mean:
(A)any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), other than: (i) the Corporation; a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation; a corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation; or (iv) the existing holders of capital stock of the Corporation as of the date hereof, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing more than fifty percent (50%) of the combined voting power of the Corporation's then outstanding securities; or

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(B)the consummation of a merger, share exchange, consolidation or reorganization involving the Corporation and any other corporation or other entity as a result of which less than fifty percent (50%) of the combined voting power of the Corporation or of the surviving or resulting corporation or entity after such transaction is held in the aggregate by the holders of the combined voting power of the outstanding securities of the Corporation immediately prior to such transaction ("Business Combination"), unless, following such Business Combination, (i) the individuals and entities who were the beneficial owners of the Corporation prior to the Business Combination beneficially own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Corporation or substantially all of the Corporation's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) is the beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) , directly or indirectly, of 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the Board of Directors of the Corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the board, providing for such Business Combination; or

(C)the stockholders of the Corporation approve a plan of complete liquidation of the Corporation or an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation's assets; or

(D)during any period of twelve (12) consecutive months, the individuals who constitute the Board of Directors of the Corporation at the beginning of such period (the "Incumbent Directors") cease for any reason to constitute a majority of the Board of Directors; provided, however, that a director who is not a director at the beginning of such period shall be deemed to be an Incumbent Director if such director is elected or recommended for election by a majority of the directors who are then Incumbent Directors, but excluding, for this purpose, any such individual whose initial assumption of the office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.
6.2    Termination Following. a Change in Control.   After the occurrence of a Change in Control, Employee shall be entitled to receive payments and benefits pursuant to this Agreement if Employee's employment is terminated within eighteen (18) months following the Change in Control either by the Corporation by notice of non-renewal, without Cause or by Employee for Good Reason. For purposes of this Agreement, "Good Reason" shall exist for Employee to terminate his employment if Employee resigns within six (6) months of any of the following conditions having arisen without his consent after having given the Corporation written notice of the existence of such condition within sixty (60) days of the initial existence of the condition and providing the Corporation with thirty (30) days to remedy the condition:

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(A)a substantial adverse alteration in the nature or status of his position or responsibilities or the conditions of his employment from those in effect immediately prior to the Change in Control;

(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 Plan ("Target Bonus");

(C)the Corporation's requiring Employee to be based more than fifty (50) miles from the Corporation's offices at which he was principally employed immediately prior to the date of the Change in Control;

(D)the Corporation's material failure to pay Employee any compensation due under this Agreement;

(E)the failure of the Corporation to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement;

(F)any other action or inaction that constitutes a material breach by the corporation of this Agreement.
6.3    Severance Pay and Benefits. If Employee's employment with the Corporation terminates under circumstances as described in Section 6.2 above, Employee shall be entitled to receive all of the following:

(A)all accrued compensation through the termination date;

(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 a lump sum within thirty (30) calendar days after the date on which the release of claims required by Section 4.4 becomes effective; and

(C)unless Employee obtains comparable medical insurance coverage from a subsequent employer, then, for twenty-four (24) months following the termination of Employee's employment, the Corporation shall continue to pay for Employee's health insurance coverage as described in this Section 6.3(C). Employee may elect to continue coverage under the Corporation's group health insurance plan in which he participated on the effective date of the termination of employment by election of continuation coverage under COBRA, subject to the terms of the group health plan and applicable law. The Corporation shall pay Employee's premiums directly to the COBRA administrator for the same health insurance coverage for the same group health insurance plan in which Employee participated on the effective date of the termination of employment. At the end of the maximum COBRA continuation period, the Corporation shall reimburse Employee for that portion of health insurance premiums under a fully-insured, individual health insurance policy that are in excess of the amount Employee paid for coverage under the Corporation's group health plan immediately prior to termination of employment.    Such individual health insurance policy reimbursements shall continue for no longer than the remainder, if any, of the twenty-four (24) month health insurance continuation period following expiration of the maximum COBRA continuation period. Notwithstanding the foregoing, in the event Employee prefers to initially obtain health insurance coverage under a fully-insured, individual health insurance policy that is less expensive than COBRA 

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coverage, the Corporation shall reimburse Employee for premiums that are in excess of the amount Employee paid for health insurance under the Corporation's group health plan immediately prior to termination through the earlier to occur of: (i) twenty-four (24) months following termination of employment, or (ii) the date Employee obtains comparable group health insurance coverage from a subsequent employer. All such reimbursements required pursuant to this Section 6.3(C) shall be paid as soon as reasonably practicable following employee's submission of proof of timely premium payments to the Corporation, subject to the following: (i) all such claims for reimbursement shall be submitted by Employee and paid by the Corporation no later than twenty-seven (27) months following Employee's termination of employment, (ii) any claims for reimbursements shall be paid no later than the end of the calendar year after the calendar year in which the reimbursable expense is incurred, reimbursements in one calendar year shall not affect those payable in any later calendar year, and no benefit provided under this Section 6.3(C) may be cashed out or exchanged for other benefits.
6.4    Parachute Payments.  Payments shall be reduced to the extent, if any, determined in accordance with the following provisions:

(A)For purposes of this Section 6.4: (i) a "Payment' shall mean any payment or distribution in the nature of compensation to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise, that is treated as a parachute payment under the provisions of Code Section 280G(b)(2) ; (ii) "Agreement Payment" shall mean a Payment paid or payable pursuant to this Agreement (disregarding this Section); (iii) "Reduced Amount" shall mean the amount of Payments that has a Present Value that is equal to 2.99 times the Executive's "base amount," as that term is defined under Code Section 280G(b)(3); (iv) "Present Value" shall mean such value determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of Code; and (v) "Code" shall mean the Internal Revenue Code of 1986, as amended.

(B)Anything in the Agreement to the contrary notwithstanding, in the event Deloitte & Touche LLP or such other accounting firm as shall be designated by the Company (the "Accounting Firm") shall determine that receipt of all Payments would subject the Executive to tax under Section 4999 of the Code, the Accounting Firm shall determine whether the Net After-Tax Reduced Amount exceeds that of the Net After-Tax Payments. For these purposes, the Net After-Tax Reduced Amount and the Net After-Tax Payments refer to the Reduced Amount and Payments, respectively, received by the Executive net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to the Executive's taxable income for the immediately preceding taxable year, or such other rate(s) as the Executive shall certify, in the Executive's sole discretion, as likely to apply to the Executive in the relevant tax year(s). If the Accounting Firm determines that the Net After-Tax Reduced Amount exceeds that of the Net After-Tax Payments, then the aggregate Agreement Payments shall be reduced to the Reduced Amount.

(C)If the Accounting Firm determines that aggregate Agreement Payments should be reduced to the Reduced Amount, the Company shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof. For purposes of reducing the aggregate Agreement Payments to the Reduced Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. The reduction of the aggregate Agreement Payments to the Reduced Amount, if applicable, shall be made by reducing the amounts payable to the Executive pursuant to Section 6.3 (as modified by Section 6.4) of this Agreement. All determinations made by the Accounting Firm under this Section shall be binding upon the Company and the Executive and shall be made within 60 days of a termination of employment of the Executive. As promptly as practicable following such determination, the Company shall pay to or 

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distribute for the benefit of the Executive such Agreement Payments as are then due to the Executive under this Agreement and shall promptly pay to or distribute for the benefit of the Executive in the future such Agreement Payments as become due to the Executive under this Agreement.

(D)As a result of the uncertainty in the application of Section 4999 of the code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of the Executive pursuant to this Agreement which should not have been so paid or distributed ("Overpayment") or that additional amounts which will have not been paid or distributed by the Company to or for the benefit of the Executive pursuant to this Agreement could have been so paid or distributed ("Underpayment"), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or the Executive which the Accounting Firm believes has a high probability of success determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the benefit of the Executive shall be repaid to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no such amount shall be payable by the Executive to the Company if and to the extent such payment would not either reduce the amount on which the Executive is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.
(E)All fees and expenses of the Accounting Firm in implementing the provisions of this Section 6.4 shall be borne by the Company.

7.WAIVER OF BREACH. The Corporation's waiver of any breach of a provision of this Agreement shall not waive any subsequent breach by the Corporation.

8.ENTIRE AGREEMENT. Except as expressly provided in this Agreement, this Agreement: (i) supersedes all other understandings and agreements, oral or written, between the parties with respect to the subject matter of this Agreement; and (ii) constitutes the sole agreement between the parties with respect to this subject matter. Each party acknowledges that: (i) no representations, inducements, promises or agreements, oral or written, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement; and (ii) no agreement, statement or promise not contained in this Agreement shall be valid. No change or modification of this Agreement shall be valid or binding upon the parties unless such change or modification is in writing and is signed by the parties.

9.SEVERABILITY. If a court of competent jurisdiction holds that any provision or sub-part thereof contained in this Agreement is invalid, illegal or unenforceable, that invalidity, illegality or unenforceability shall not affect any other provision in this Agreement. Additionally, if any of the provisions, clauses or phrases in the Competitive Business Activities, Trade Secrets, Confidential Information and Corporation Property provisions set forth in this Agreement are held unenforceable by a court of competent jurisdiction, then the parties' desire is that they be "blue-penciled" or rewritten by the court to the extent necessary to render them enforceable.

10.PARTIES BOUND. The terms, provisions, covenants and agreements contained in this Agreement shall apply to, be binding upon and inure to the benefit of the Corporation's successors and 

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assigns. The Corporation, at its discretion, may assign this Agreement. Employee may not assign this Agreement without the Corporation's prior written consent.

11.REMEDIES. Employee acknowledges that his breach of this Agreement would cause the Corporation irreparable harm for which damages would be difficult, if not impossible, to ascertain and legal remedies would be inadequate. Therefore, in addition to any legal or other relief to which the Corporation may be entitled by virtue of Employee's breach or threatened breach of this Agreement, the Corporation may seek equitable relief, including but not limited to preliminary and injunctive relief, and such other available remedies.

12.SECTION 409A OF THE INTERNAL REVENUE CODE. 
12.1   Parties' Intent.     The parties intend that the provisions of this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations thereunder (collectively, "Section 409A") and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. The Company does not guarantee to the Employee or any other person that any benefit or payment under this Agreement is exempt from Section 409A, nor will the Corporation indemnify, defend or hold harmless the Employee or any other person with respect to the tax consequences of a failure of any benefit or payment under this Agreement to meet an exemption under Section 409A. If any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause Employee to incur any additional tax or interest under Section 409A, the Corporation shall, upon the specific request of Employee, use its reasonable business efforts to in good faith reform such provision to comply with Code Section 409A; provided, that to the maximum extent practicable, the original intent and economic benefit to Employee and the Corporation of the applicable provision shall be maintained, and the Corporation shall have no obligation to make any changes that could create any additional economic cost or loss of benefit to the Corporation.
12.2    Application of Section 409A.      In the event any benefit or payment under this Agreement becomes subject to the provisions of Section 409A, the provisions of Section 409A of the Code and the regulations issued thereunder are incorporated herein by reference to the extent necessary for any benefit or payment that is subject Section 409A to comply therewith. In such event, the provisions of this Agreement shall be interpreted in a manner that satisfies the requirements of Section 409A and the related regulations, and this Agreement shall be operated accordingly.
Notwithstanding any other provision of this Agreement, in the event the Employee is treated as a "specified employee" under Section 409A and any payment or benefit under this Agreement is treated as a nonqualified deferred compensation payment under Section 409A, then payment of such amounts shall be delayed for six months and a day following the Employee's "separation from service," as such term is defined in Section 409A, at which time a lump sum payment shall be made to the Employee consisting of the sum of the delayed payments. This provision shall not apply in the event of a specified employee's termination of employment on account of death and, in the event of a specified employee's death during the aforementioned six-month and a day period, any such delayed nonqualified deferred compensation shall be paid within 30 days after such specified employee's death.

13.GOVERNING LAW. This Agreement and the employment relationship created by it shall be governed by North Carolina law without giving effect to North Carolina choice of law provisions.

11

IN WITNESS WHEREOF, the parties have entered into this Agreement on the day and year written below.

	
			
	EMPLOYEE
	 
	 

	 
	 
	 

	/s/ Boris Zelmanovich
	 
	6/3/2013

	Boris Zelmanovich
	 
	Date

	
			
	THE PANTRY, INC.
	 
	 

	 
	 
	 

	/s/ Dennis G. Hatchell
	 
	6/3/2013

	Name
	 
	Date

	 
	 
	 

	President & CEO
	 
	 

	Title
	 
	 

12Exhibit 10.4- Amended and Restated MCA

Exhibit 10.4

AMENDED AND RESTATED MASTER CONVERSION AGREEMENT

THIS AMENDED AND RESTATED MASTER CONVERSION AGREEMENT (“Agreement”) made and entered into this 27th day of June, 2013, by and between The Pantry, Inc., a Delaware corporation with offices at 305 Gregson Drive, Cary, NC 27511 (“PANTRY”), and Marathon Petroleum Company LP, a Delaware limited partnership with offices at 539 South Main Street, Findlay, Ohio 45840 (“MPC”), each a “Party” and together, the “Parties”.

WHEREAS, MPC and PANTRY entered into a Master Conversion Agreement dated July 26, 2010, as amended by First Amendment to Master Conversion Agreement dated February 14, 2011, Second Amendment to Master Conversion Agreement dated August 15, 2011, Third Amendment to Master Conversion Agreement dated October 2, 2011, Fourth Amendment to Master Conversion Agreement dated June 4, 2012, and Fifth Amendment to Master Conversion Agreement dated May 13, 2013 (collectively the “Existing Agreement”);

WHEREAS, MPC and PANTRY desire to amend the Existing Agreement to include additional motor fuel retail outlets under the Agreement, and modify related terms, including but not limited to [***]; and

WHEREAS, MPC and PANTRY desire to express such amendments by amending and restating the Existing Agreement in its entirety.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants hereinafter contained the Parties agree:

A.    AMENDED AND RESTATED AGREEMENT.  The terms and conditions of the Existing Agreement are amended and restated in its entirety to now read and apply to the Retail Outlets (as defined herein} as follows:

1.    Defined Terms. As used in this Agreement:

 (a)    “[***]” shall have the meaning specified in Section 4(d) of this
Agreement.

(b)    “Advertising Investment” means the amount reimbursed by MPC pursuant to Section 3(d) of this Agreement.

  (c)       “Brand Investment” shall have the meaning specified in Section 3(g)(1) of this
Agreement.

 (d)      “Contract  Year” means each of the seven (7) periods of 365/366 days thereafter during the Term commencing on January 1, and in the event the Term is extended pursuant to Section 2 of this Agreement, also the Extension Year. The period from July 1, 2010 through December 31, 2010 is not a Contract Year, in whole or in part.

(e)    “Designated Terminals” means those light products terminals that are designated by MPC in its commercially reasonable discretion, which designation shall be made in writing on or before the  thirtieth  (30th) day following the full execution of this Agreement, and is subject to change on a calendar month basis from time to time, provided that any modification is made in

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

writing on or before the 20th day of the calendar month immediately preceding the calendar month in which the change is to become effective and that any substituted or added terminal shall be located no more than a radius of 50 miles from the terminal it replaces or supplements, respectively.

(f)            “[***]” shall have the meaning specified in Section 4(b)(4)(E).

(g)     “[***]” means Marathon branded [***] and, to the extent offered by Marathon, also Marathon [***].

(h)     “Extension Year” has the meaning given in Section 2.

(i)      “[***]” means [***] consisting of a blend of [***] and [***], within the tolerances permitted by law for a [***].

(j)       “[***]” shall have the meaning specified in Section 4(a)(4)(F).

(k)    “GSA” means the certain Guaranteed Supply Agreement between MPC and PANTRY, with a Term commencing September 1, 2010, as amended.

(I)    “Image Investment” means the amount reimbursed by MPC pursuant to Section 3(a)
of this Agreement.

(m)     “Joint Image Plan” means the elements of branding of the main ID signage and canopy as depicted in Exhibit C attached to this Agreement.

(n)    “[***]” has the meaning specified in Section 3(f) of this Agreement.

(o)   “Minimum Combined Annual [***] Volume” means [***] of combined [***] {as defined in the GSA) and [***] (as defined in the GSA) purchased by PANTRY pursuant to the GSA and [***] purchased by PANTRY directly from MPC at the Designated Terminals, or as reduced in accordance with Section 13 or Section 14(B) of this Agreement.

(p)   “Minimum Monthly [***] Volume” means, with respect to a [***], the volume in gallons of [***] purchased by PANTRY directly from MPC at the Designated Terminals corresponding in the table below, to such [***] in the table below:

	
		
	[***]
	Volume in gallons [***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
		
	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

In illustration, and not in limitation, of the foregoing, for the [***], the Minimum Monthly [***] Volume is [***] gallons of [***] purchased by PANTRY directly from MPC at the Designated Terminals.

(q)   “Minimum  Combined  Annual [***] Volume” means [***] gallons  of combined [***] (as defined in the GSA) purchased by PANTRY pursuant to the GSA and [***] purchased by PANTRY directly from MPC at the Designated Terminals, or as reduced in accordance with Section 13 or Section 14(A) of this Agreement.

(r)    “Minimum Monthly [***] Volume” means, with respect to a [***], the volume in gallons of [***] purchased by PANTRY directly from MPC at the Designated Terminals for a particular [***], as provided below in the table below:

	
		
	[***]
	Volume in gallons [***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

	[***]
	[***]

In illustration, and not in limitation, of the foregoing, for the [***], the Minimum Monthly [***] Volume is [***] gallons of [***] purchased by PANTRY directly from MPC at the Designated Terminals.

(s)      “Opening Period” means the period from July 1, 2010 through December 31, 2010. (t)       “Phase 3 Image Plan” shall have the meaning given in 3(i).
(u)    “Phase 4 Image Plan” shall have the meaning given in 3(j).

(v)    “Phase 5 Image Plan” shall have the meaning specified in Section 3(k).

(w)    “[***]” means the total funds advanced by MPC to JOBBER pursuant to Section 3(j): [***].

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

(x)    “Phase 1 Outlets” means the motor fuel locations identified on Exhibit A to this 
Agreement.

(y)    “Phase 2 Outlets” means the motor fuel retail outlets identified on Exhibit B to this
Agreement.

(z)    “Phase 3 Outlets” means the motor fuel retail outlets identified on Exhibit D to this
Agreement.

(aa)    “Phase 4 Outlets” means the motor fuel retail outlets identified on Exhibit F to this
Agreement.

(bb)    “Phase 5 Outlets” means the motor fuel outlets identified on Exhibit H to this
Agreement.

(cc)     “Phase 5 Volume” means, with respect to a [***], the volume in gallons of Gasohol purchased by PANTRY directly from MPC at the Designated Terminals for a particular [***] delivered by PANTRY to the Phase 5 Outlets.

(dd)     “PMPA” means the Petroleum Marketing Practices Act, 15 U.S.C. §§ 2801 et seq.

(ee)    “Product Supply Agreement” means the agreement in force between the Parties from time to time pursuant to which MPC supplies PANTRY with Marathon branded petroleum products for resale under the MARATHON® trademark and brand name.

(ff)       “Retail Outlets” means the Phase 1 Outlets, the Phase 2 Outlets, the Phase 3 Outlets, the Phase 4 outlets and the Phase 5 Outlets. “Retail Outlet” means one of the Retail Outlets.

(gg)    “Standard Payment Terms” means the payment terms predominantly used by MPC's brand jobber class of trade. In illustration, and not in limitation, of the foregoing, as of the date of this Agreement, the payment terms predominately used by MPC's brand jobber class of trade are payment terms of [***].

(hh)    “Term” means the period commencing on July 1, 2010, and ending on December 31,
2017, except in the event the Term is extended pursuant to Section 2 of this Agreement, then the period
commencing on July 1, 2010 and ending on December 31, 2018.

(ii)    “Termination Event” means:

(1)        the failure of PANTRY to purchase the Minimum Combined Annual [***] Volume and deliver the same to the Retail Outlets and the [***] stores listed on Exhibit A to the GSA in any Contract Year;

(2)        the failure of PANTRY to purchase the Minimum Combined Annual [***] Volume and deliver the same to the Retail Outlets and the [***] stores listed on Exhibit A to the GSA in any Contract Year;
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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

(3)       the termination  or non-renewal, within  the  meaning  of the PMPA, of the Product Supply Agreement or the franchise relationship created or embodied by the Product Supply Agreement;

(4)      none  of  the  Retail  Outlets  are being  directly  supplied  by PANTRY  as
MARATHON® retail outlets;

(5)        the assignment by PANTRY of any of its rights or interests, in whole or in part, or the delegation by PANTRY of any of its duties, under this Agreement without the prior written consent of MPC; or

(6)      the occurrence of any material breach or nonperformance by PANTRY of any of its respective obligations under this Agreement that is not cured within thirty (30) days following the date written notice of breach or nonperformance is sent, via certified mail, return receipt requested, by MPC to PANTRY.

(jj)     “Tier [***] Volume” means the first [***] gallons, collectively, of [***] purchased by PANTRY directly from MPC at the Designated Terminals in a calendar month.

(kk)     “Tier [***] Volume” means the first [***] gallons, collectively, of [***] having an [***] purchased by PANTRY directly from MPC at the Designated Terminals in a calendar month.

(II)       “Tier [***] Volume” means the first [***] gallons, collectively, of [***] having an [***] purchased by PANTRY directly from MPC at the Designated Terminals in a calendar month.

(mm)   “Tier [***] Volume”  means the first [***] gallons, collectively, of [***] having a [***] purchased by PANTRY directly from MPC at the Designated Terminals in a calendar month.

(nn)   “Total Investment” means the Image Investment and Advertising Investment.

(oo)   “[***]” shall have the meaning specified in Section 7(a) of this Agreement.

2.    Term.  This Agreement is effective as to each Party upon execution by all Parties and will remain in effect until expiration of the Term, unless earlier terminated as provided for herein. MPC may elect to extend the Term for an additional period of 365 days, commencing at the conclusion of the seventh Contract Year (“Extension Year”), exercisable by delivery of written notice of such election delivered to PANTRY on or before [***].

3.       Image Investment; Advertising  Investment; Brand Investment; Conversion  Without Investment.

(a)    Advance of Image Investment.

(1)        In the manner, and upon and subject to Section 3(b) and 3(c) and all other terms and conditions of this Agreement, MPC agrees to reimburse PANTRY for costs of the materials and labor necessary to converting the Retail Outlets to the Marathon brand, in accordance with the then current image and identification standards established by MPC for “Branded Outlets” through the

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

Product Supply Agreement, and for those Retail Outlets [***] on the first date of the Term of Agreement, also in accordance with the [***].

(2)      MPC agrees to invest funds for the [***] associated with installation of the [***] as described in Section 3(b)(2), subject to MPC's approval of the [***] for such [***].  [***] shall remain responsible for the cost of the materials for [***].

(3)       MPC will document all reimbursements made to PANTRY pursuant to Section
3(a)(1) and 3(a)(2), which shall serve as the basis upon which MPC and PANTRY will confirm, in writing, the full and final amount of the Image Investment, which confirmation shall be completed on the later of (i) [***], or (ii) [***].

(4)        PANTRY will manage all such conversion work, including but not limited to installation of the Kangaroo sign, subject to MPC's approval of the contractor(s) performing such work.

(b)     Use of Image Investment. The Parties intend that the Image Investment will provide for the reimbursement of costs of purchase and installation of the following:

(1)           for those Retail Outlets [***] on the first date of the Term of the Agreement, the materials for the Joint Image Plan and, as to the elements of the conversion to Marathon brand at each of the other Retail Outlets, the image plan may include,  at MPC's  sole discretion, the purchase of canopy graphics, “Marathon channel letters”, canopy column  cladding, dispenser skirts, dispenser cladding, Marathon logo as part of the main ID sign, and/or approved windshield service centers; and

(2)        labor for the installation of the elements identified in Section 3(a)(1), 3(a)(2) and 3(b)(1); provided that MPC and PANTRY mutually agree to local market based labor rates to determine the labor costs associated with such imaging.

(c)      Disbursement of Image Investment. MPC will have no obligation to reimburse PANTRY with the Image Investment funds pursuant to Section 3(a) unless and until MPC has received from PANTRY:

(1)        documentation evidencing, to MPC's sole satisfaction, PANTRY's proper release and termination of existing contractual obligations with respect to the Retail Outlets, as to the rebranding of which PANTRY represents and warrants that it has developed its plans as a result of market assessments and other business judgments made by PANTRY prior to entering discussions with MPC regarding, and independent of, this Agreement; and

(2)        valid, accurate third party invoices documenting the expenditure of funds for all work and materials described in Section 3(b); and

(3)        photographs documenting the completion of all required conversion work at each Retail Outlet.

MPC will pay valid, accurate invoices for incurred expenditures within thirty (30) days following MPC's receipt of required documentation, invoices and photographs.

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

(d)    Advance  of Advertising Investment. MPC  agrees,  subject  to  Section  3(e),  to reimburse PANTRY for its costs of advertising and credit card solicitation campaigns incurred during [***], as mutually agreed by MPC and PANTRY, with respect to  the Retail Outlets, in an amount  up to [***]. MPC will document all reimbursements made to PANTRY for all advertising and credit card solicitation campaigns pursuant to this Section 3(d), which shall serve as the basis upon which MPC and PANTRY will confirm in writing, on or before [***], the full and final amount of the Advertising Investment.

(e)    Disbursement  of Advertising Investment. MPC will have no obligation to reimburse PANTRY with the Advertising Investment funds pursuant to Section 3(d) unless and until MPC has received from PANTRY:

(1)     documentation evidencing, to MPC's sole satisfaction, PANTRY's proper release and termination of existing contractual obligations with respect to the Retail Outlets, as to the rebranding of which PANTRY represents and warrants that it has developed its plans as a result of market assessments and other business judgments made by PANTRY prior to entering discussions with MPC regarding, and independent of, this Agreement; and

(2)        valid, accurate  third party  invoices  documenting  the expenditure  of funds, allocated by PANTRY in a commercially reasonable manner, for advertising and credit card solicitation campaigns as described in Section 3(d).

MPC will pay valid, accurate invoices received from PANTRY within thirty (30) days following MPC's receipt of required documentation and invoices.

(f)      Prepaid Card.  MPC and PANTRY will develop a [***] Marathon prepaid cards (“[***]”). MPC will coordinate with PANTRY [***] Marathon prepaid cards [***]. To the extent PANTRY orders [***] prepaid cards [***], the cost of production [***] shall be borne by PANTRY.

(g)     Amortization.

(1)        As used in this Agreement, “Brand Investment” is [***] of the [***]; and [***]. Upon the expiration of [***] of the [***] with the [***], the Brand Investment will [***].

(2)        Upon the expiration of [***] of the [***] with the [***], the [***] will [***].

(h)      Repayment of Total Investment.  MPC will inform PANTRY of the amount of the Total Investment [***]. Subject to the terms of this Agreement and the terms of the GSA, PANTRY shall be liable to repay the full amount of the Total Investment to MPC. The foregoing notwithstanding, if no Termination Event has occurred by the end of the Term, PANTRY's obligation to repay the Brand Investment to MPC shall be fully discharged.

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

(i)           Phase 3 Outlets. Section 3(a) through (h) shall not apply to the Phase 3 Outlets. The Parties agree that the Phase 3 Outlets will be reimaged or converted to the MARATHON brand at [***], in accordance with [***] image and identification standards established by MPC for “Branded Outlets” through the Product Supply Agreement and the mutually agreed image plans, which are outlined in Exhibit E to this Agreement (“Phase 3 Image Plan”).

(j)          Advance of [***]. In the manner, and subject to the provisions of Section 30(j)(1) and 3(j)(2), MPC agrees to [***], of the [***] necessary to convert the Phase 4 Outlets to the Marathon® brand, in accordance with the then current image and identification standards established by MPC for “Branded Outlets” through the Product Supply Agreement and the Parties' mutually agreed image plans for the Phase 4 Outlets, which are outlined in Exhibit G to this Agreement (“Phase 4 Image Plan”).  PANTRY agrees that all conversion of all Phase 4 Outlets will be completed on or before [***], except the Retail Outlet at [***] shall be reimaged or converted on or before [***]. PANTRY will manage all such conversion work included, but not limited to, installation of the Kangaroo sign, subject to MPC's approval of the contractor(s) performing such work.   MPC will have no [***] with the [***] pursuant to Section 3(j) unless and until MPC has received from PANTRY:

(1)  documentation evidencing, to MPC's sole satisfaction, PANTRY's proper release and termination of existing contractual obligations with respect to the Retail Outlets, as to the rebranding of which PANTRY represents and warrants that it has developed its plans as a result of market assessments and other business judgments made by PANTRY prior to entering discussions with MPC regarding, and independent of, this Amendment;

(2) valid, accurate third party invoices documenting the expenditure of funds for all work and materials described in this Section 3(j); and (3) photographs documenting the completion  of all requirement conversion work at each of the Phase 4 Outlets.

MPC will reimburse PANTRY for qualifying expenditures within [***] following MPC's receipt of the documentation, invoices and photographs required under this Section 3(j).

(k)         Phase 5 Outlets. Section 3(a) through (h) shall not apply to the Phase 5 Outlets. The Parties agree that the Phase 5 Outlets will be converted to the MARATHON brand at [***], in accordance with [***] image and identification standards established by MPC for “Branded Outlets” through the Product Supply Agreement and the mutually agreed image plans, which are outlined in Exhibit I to this Agreement (“Phase 5 Image Plan”), PANTRY shall convert all Phase 5 Outlets on or before [***], except the Retail Outlet at [***], shall be branded MARATHON® [***]. PANTRY will manage all such conversion work.

4.          [***].

(a)    [***].

(1)   [***]: Opening Period. MPC will [***] PANTRY [***] on each [***] by [***] directly from [***] at the Designated Terminals and delivered to the Retail Outlets, for resale at retail, in each [***] of the Opening Period in which this Agreement is in effect. PANTRY's purchases of [***] will be

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

invoiced in  accordance  with  the  [***].  Subject  to  Section  4(a)(5)  of this Agreement, [***] amount to be paid with respect to a [***] of [***] so purchased and delivered in a [***] will be calculated in accordance with the [***] set forth in Section 4(a)(3) of this Agreement

(2)    [***] Gasohol Rebates: Contract Years. In any [***] of any Contract Year in which this Agreement is in effect and PANTRY's [***] purchases of (i) [***] directly from MPC at the Designated Terminals and (ii) [***] in the [***] in accordance with [***]), each [***] of [***] purchased directly from MPC at the Designated Terminals and delivered to the Retail Outlets, for resale at retail, [***] that particular [***] shall be eligible for the calculation of [***] pursuant to this Section 4:

	
			
	[***]
	combined total volume[***]
	maximum total volume
[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

PANTRY's purchases of [***] will be invoiced in accordance with the [***]. Subject to Section 4(a)(5) of this Agreement, the [***] amount to be paid with respect to a [***]  of [***]  so purchased and delivered in a [***] will be calculated in accordance with the [***] set forth in Section 4(a)(3) and 4(c) of this Agreement.

		
	(3)
	[***] Formulas. 

(A)    [***].
(i)        The calculation of the [***] per each [***], for which [***] pursuant to Section 4(a)(2) for [***], up to and including the Tier [***] Volume, shall be based on the following formula, and further subject to the provisions of Section 4(a)(4) and Section 4(c):

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

[***], where:

[***]

[***]  The [***] of the [***] (based on the [***]}[***], in the [***], of [***]

[***], with a [***] of [***]
[***]

In illustration, and not in limitation of the foregoing, [***] (e.g. [***] may be applicable), [***], with a [***] (e.g. [***] may be applicable) [***].

(ii)         The calculation of [***] per each [***] of [***] having an [***], for which [***] pursuant to Section 4(a)(2) for [***], in excess of the Tier [***] Volume shall be based on the following formula, and further subject to the provisions of Section 4(a)(4) and Section 4(c):

[***], where:

[***]

[***] The [***] of the [***] (based on the [***]}[***], in the [***], of [***]

[***], with a [***] of [***]
[***]

In illustration, and not in limitation of the foregoing, [***] (e.g. [***] may be applicable), [***], with a [***] (e.g. [***] may be applicable) [***].

(B)    [***].

(i)         The calculation of the [***] per each [***] of [***] having an [***], for which [***] pursuant to Section 4(a)(2) for a [***], up to and including the Tier [***] Volume, shall be based on the following formula, and further subject to the provisions of Section 4(a)(4) and Section 4(c):

[***], where:

[***]

[***] The [***] of the [***] (based on the [***])[***], for the [***], of [***]

[***], with a [***] of [***]
[***]

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

In illustration, and not in limitation, of the foregoing, [***] (e.g. [***] may be applicable), [***], with a [***] (e.g. [***] may be applicable) [***].

(ii)         The calculation of the [***] per each [***] of [***] having an [***], for which [***] pursuant to Section 4(a)(2) in a [***], in excess of the Tier [***] Volume shall be based on the following formula, and further subject to the provisions of Section 4(a)(4) and Section 4(c):

[***], where:

[***]

[***] The [***] of the [***] (based on the [***])[***], for the [***], of [***]

[***], with a [***] of [***]
[***]

In illustration, and not in limitation, of the foregoing, [***]  (e.g. [***] may be applicable), [***], with a [***] (e.g. [***] may be applicable) [***].

(C)    [***].

(i)         The calculation of the [***] per each [***] of [***]  having an[***]. for which [***] pursuant to Section 4(a)(2) in a month, up to and including the Tier [***] Volume, shall be based on the following formula, and further subject to the provisions of Section 4(a)(4) and Section 4(c):

[***], where:

[***]

[***] The [***] of the [***] (based on the [***])   [***], for the [***], of [***]

[***]), with a [***] of [***]
[***]

In illustration, and not in limitation, of the foregoing, [***]  (e.g. [***] may be applicable), [***], with a [***] (e.g. [***] may be applicable) [***].

(ii)         The calculation of the [***] per each [***] of [***] having an [***], for which [***] pursuant to Section 4(a)(2) in a [***], in excess of the Tier [***] Volume shall be based on the following formula, and further subject to the provisions of Section 4(a)(4) and Section 4(c):

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 [***], where:

[***]

[***]  The [***] of the [***] (based on the [***])   [***], for the [***], of [***]

[***], with a [***] of [***]
[***]

In illustration, and not in limitation, of the foregoing, [***] (e.g. [***] may be applicable), [***], with a [***] (e.g. [***]  may be applicable) [***].

(4)    Manner of Computation. For [***] set forth in this Section
4(a). all of the following conventions shall apply:

(A)        [***] will be used for reference prices in the above formulas for the period of September 16 through May 31, regardless of the gasoline “type” product purchased;

(B)        For the "[***]" portion of all formulas set forth in this Section 4(a), the [***] shall be calculated [***] the [***] as used [***] for calculation of its [***], and in the event [***] published by [***], [***] will notify [***] of the [***] on or before [***] of the [***]

[***] following [***], and the [***] of the [***] shall be based on [***];

(C)       for the "[***]" portion of all formulas set forth in this Section 4(a), the [***] shall be based [***] (in illustration and not in limitation of the foregoing, [***];

(D)       pricing data will be [***];

(E)        if the Parties agree that a [***] is [***] for a [***], but [***] such [***], for a [***], then the [***] to [***] and [***] will be adjusted to remove the commodity and supplier in question for that period of time; and

(F)        The values resulting from the formulas expressed in each of the Sections 4(a)(3)(A), 4(a)(3)(B), and 4(a)(3)(C), (i.e., whether [***] values)  shall be applied to all [***] of the respective grade of [***] purchased by PANTRY at each Designated Terminal [***] up to the maximum total volume of [***] eligible for [***], as provided in Section 4(a)(2) (each a “[***] Number”), which will be subject to the provisions of Section 4(c) of this Agreement. For the avoidance of doubt, the application of this subparagraph (F) will result in as many [***] Numbers [***] for each Designated Terminal as the number of grades of [***] having an [***] PANTRY purchases at such Designated Terminal in such [***].

(5)    [***]. Any term, condition or provision of Section 4(a)(1) or
4(a)(2) of this Agreement to the contrary notwithstanding, PANTRY agrees and acknowledges that:

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 (A)        [***] shall be [***] with respect to any [***] of [***] purchased by PANTRY at the Designated Terminals and delivered to the Retail Outlets, for resale at retail, in any [***] of a Contract Year in which [***] (i) [***], and (ii) [***] (as defined in the GSA) [***] under the GSA, in the calendar month is [***];

(B)        [***] shall be [***] with respect to any [***] of [***] purchased directly from the Designated Terminals and delivered to the Retail Outlets for resale at retail in any [***] of a Contract Year [***] so purchased and delivered; and

(C)       [***] shall be [***] with respect to [***] purchased directly from the Designated Terminals in a [***] in a [***].

(b)    [***].

(1)       Volume Eligible for [***]: Opening Period. [***] will pay [***] a [***] on each [***] of [***] purchased by PANTRY directly from MPC at the Designated Terminals and delivered to the Retail Outlets, for resale at retail, in each [***] of the Opening Period in which this Agreement is in effect. PANTRY's purchases of [***] will be invoiced in accordance with the Product Supply Agreement. Subject to Section 4(b)(5) of this Agreement, the [***] amount to be paid with respect to a [***] of [***] so purchased and delivered in a [***] will be calculated in accordance with the [***] set forth in Section 4(b)(3) of this Agreement.

(2)      Volume Eligible for [***]: Contract Years. In any [***] of any Contract Year in which this Agreement is in effect and PANTRY's [***] (i) [***] directly from MPC at the Designated Terminals and (ii) [***] (as defined in the GSA) and [***],[***], to that particular [***], each [***] of [***] purchased directly from MPC at the Designated Terminals and delivered to the Retail Outlets, for resale at  retail, [***] that particular [***] shall be eligible for the calculation of [***] pursuant to this Section 4:

	
			
	

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

PANTRY's purchases of [***] will be invoiced in accordance with [***]. Subject to Section 4(b)(5) of this Agreement, the [***] with respect to a [***] of [***] so purchased and delivered in [***] will be calculated in accordance  with the [***] set forth in Section 4(b)(3) and 4(c) of this Agreement.

(3)    [***] Formulas.

(A)       [***] for which [***] pursuant to Section 4(b)(2) in a [***], up to and including the Tier [***] Volume, shall be based on the following formula and further subject to the provisions of Section 4(b)(4) and Section 4(c) of this Agreement:

[***], where:

[***]

[***] The [***] of the [***] (based on the [***])[***],  in the [***],  of the [***] for which [***] ([***][***])

[***], with a [***] of [***]
[***]

In illustration, and not in limitation, of the foregoing, [***] (or whatever [***] may be applicable) [***], with a [***] (or whatever [***] may be applicable) [***].

(B)        The  [***] of [***] for which [***] pursuant to Section 4(b)(2) in a [***]  in excess of the Tier [***]  Volume shall be based on the following formula and further subject to the provisions of Section
4(b)(4) and Section 4(c) of this Agreement:

[***], where:

[***]

[***] The [***] of the [***] (based on the [***])[***], in the [***], of the [***] for which [***] ([***])

[***], with a [***] of [***]

In illustration, and not in limitation, of the foregoing, [***] (or whatever [***] type may be applicable) [***], with a [***] (or whatever [***] type may be applicable).

(4)    Manner of Computation.  For the [***] set forth in this Section
4(b), all of the following conventions shall apply:

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 (A)       for the "[***] " portion of the formula, [***] shall be [***] using [***] as used by [***] of its [***], and in the event [***] was [***] by [***].  [***] will notify [***] of the [***] on or before the [***] of the [***], and the [***] of the [***] shall be [***];

(B)       for the "[***] " portion of the [***],[***] shall be [***] (in illustration and not in limitation of the foregoing, [***] is the [***]);

(C)       pricing data will be [***];

(D)       if [***] that a [***] is [***] a [***] for a [***], but not [***], for a [***], then the [***] relevant to such [***] will be [***] to [***] the [***] and [***] in question for that period of time; and

(E)        The  values  resulting  from  the  formulas  expressed  in each  of the Sections 4(b)(3)(A) and 4(b)(3)(B) (i.e., whether [***] values) shall be applied to the [***] of  the respective grade of [***] purchased by PANTRY at each Designated Terminal [***] up to the maximum total volume of [***] eligible for a [***], as provided in Section 4(b)(2) (each a “[***] Number”), which will be subject to the provisions of Section 4(c) of this Agreement. For the avoidance of doubt, the application of this subparagraph (E) will result in as many [***] Numbers [***] for each Designated Terminal as that number of grades (e.g., [***]) of [***] PANTRY purchases at such Designated Terminal in such [***].

(5)     [***].  Any term, condition or provision of Section 4(b)(1) or 4(b)(2) above to the contrary notwithstanding,

(A)        [***] shall be [***] with respect to any [***] of [***] purchased by PANTRY at the Designated Terminals and delivered to the Retail Outlets, for resale at retail, in any [***] of a Contract Year in which [***] (i) [***] of [***] so purchased and delivered, and (ii) number of [***] of [***] and [***] purchased by PANTRY [***], in the calendar  month is less  than  [***];

(B)        [***] shall be [***] with respect to any [***] of [***] purchased directly from the [***] and delivered to the [***] for resale at retail in any [***] of a Contract Year [***] so purchased and delivered; and

(C)        [***] shall be [***] with respect to [***] of [***] not purchased directly from the Designated Terminals in [***] in the [***].

(c)     [***].

(1)    [***].

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 (A)    For each Designated Terminal, MPC will [***] PANTRY [***] of [***] in [***] equal to the sum of the [***] Numbers at each such Designated Terminal for the [***]; except that (i) if PANTRY's [***] purchases of (x) [***] directly from MPC at the Designated Terminals and (y) [***] (as defined in the GSA) under the GSA, is [***] the "[***] and [***] · applicable to such [***] in accordance with Section 4(a)(2), then [***] on such purchases in the [***]; and (ii) if the sum of the [***] Numbers for a Designated Terminal in [***] is [***], such sum shall be deemed to be [***] for that Designated Terminal for that [***].

(B)      For each Designated Terminal, [***] of [***] in [***] equal to the sum of the [***] Numbers at each such Designated Terminal for the [***]; except  that (i) if PANTRY's [***] purchases of (x) [***] directly from MPC at the Designated Terminals and (y) [***] (as defined in the GSA) and [***] (as defined in the GSA) under the GSA, is [***] the “[***] and [***]” applicable to such [***] in accordance with Section 4(b)(2), then [***] on such purchases in [***]; and (ii) if the sum of the [***] Numbers for a Designated Terminal in [***] is [***], such sum shall be deemed to be [***] for that Designated Terminal for that [***].

(2)    [***] Adjustments.

(A)      [***] Adjustment.  If in any [***] beginning  [***], PANTRY's [***] purchases of [***] and [***] was [***] the “[***] and [***]” corresponding to the [***] as specified in Section 4(a)(2), but if PANTRY purchased the Minimum [***] Annual [***], the [***] Numbers for [***] will be added, and if such sum [***] the [***] actually paid to PANTRY for such [***], PANTRY will [***] amount as an adjustment.

(B)        [***] Adjustment.  If in any [***] beginning  [***], PANTRY's [***] purchases of [***] and [***] and [***] in the [***] are [***] the “[***] and [***]” as specified in Section  4(b)(2), but if PANTRY purchased  the Minimum  [***] Annual [***], the [***] Numbers for [***] will be added, and if such sum [***] the total [***] actually paid to PANTRY for [***], PANTRY will [***] amount an adjustment.

(C)       For avoidance of doubt, for [***] beginning [***], if both subsections (A) and (B) would apply, then PANTRY will [***] pursuant to both subsections (A) and (B).

(D)       [***] to PANTRY pursuant to this Section 4(c)(2) will be [***], on or before  the [***].

(d)    Additional [***].  [***] will remit to [***] that amount equal to
[***] of Phase 5 Volume delivered in that [***] commencing [***], provided that in such [***],[***] has delivered to the Retail Outlets, for resale at retail, the Minimum [***] Volume applicable to such [***] (“Additional [***]”). If in a [***],[***] has not delivered to the Retail Outlets, for resale at retail, the Minimum [***] Volume in a [***],[***] Additional [***]. For the avoidance of doubt, [***], Additional [***] is determined on a [***] basis;   the provisions of Section 4(c) are inapplicable to Additional [***].

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 (e)    [***].

(1)        [***] and [***] due under this Section 4 shall [***] in the [***] of [***] by [***] to [***] on the [***] of the [***] the [***] in which the [***] and [***] were [***], subject to the [***] and [***] in this Section 4(e)(1). By the [***] following the [***] in which [***] and [***] were [***],[***] will [***] the [***] for that [***] and [***] and Additional [***] for the [***] review. In the event [***] does [***] with the [***] for [***] or [***], or in the event [***] has a [***] to [***] under Section 6(b), [***] shall provide [***] with its [***] and/or [***] not later than the [***] of the [***] for [***] of [***]. In the event [***] on the proper [***] of such [***] to [***] or [***], as applicable, in [***] of the [***], if any, will be [***] until [***] can [***] on the [***], or the [***], as may be applicable.

(2)        Notwithstanding the provisions of Section 4(e)(1); if all of the Phase 1 Outlets and Phase 2 Outlets are not in compliance with the then current image and identification standards established  by MPC  for  “Branded  Outlets”  through  the Product  Supply  Agreement,  and also in [***] the Joint Image Plan, and the Parties' mutually agreed image plans on or before December 31, 201[***] and [***] thereto, and [***] otherwise [***] from [***] to [***] shall be [***] on [***],  [***], by [***] until [***], to [***], that  all of the Phase 1 Outlets and Phase  2 Outlets  [***], and as applicable, the Joint Image Plan.

(3)        Notwithstanding the provisions of Section 4(e)(1); if all of the Phase 3 Outlets are not [***] the Phase 3 Image Plan on or before December 31, 2011, [***], and [***] otherwise [***] shall be [***] on [***],[***], by [***] until [***], to [***], that all of the Phase 3 Outlets [***] Phase 3 Image Plan.

(4)    Notwithstanding the provisions of Section 4(e)(1); if all the Phase 4 Outlets are not in [***] the Phase 4 Image Plan by the applicable dates specified in Section 3(j), [***] shall be [***], by [***] that all of the Phase 4 Outlets [***] the Phase 4 Image Plan.

(5)     Notwithstanding the provisions of Section 4(e)(1); if all of the Phase 5 Outlets are not in [***] Phase 5 Image Plan on or before the applicable dates specified in Section
3(k), [***] shall be [***], by [***], that all of the Phase 5 Outlets [***] the Phase 5 Image Plan.

(f)    New Product In Market.

(1)     As used in this Section 4(f), the following terms shall have the corresponding meanings:

(A)        “Compliant Additive” is an additive that is a “[***]” within the meaning of [***], that complies with applicable standard specifications published by ASTM International, and that, when blended with gasoline, produces a blend that complies with all applicable federal state and local laws and regulations.

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 (B)        “predominantly sold at [***]” means that [***] are [***] and [***] for [***] the [***] and the [***] comprises [***]; whereby [***] will [***] as to [***] in order to [***];

(C)       “Geographic Area” shall mean the geographic area associated with a particular OPIS City posting.

(D)       “Novel Product” is either (1) a [***]; or (2) a [***], which [***] (with respect to [***]) for [***] or the future [***].

(2)        In the event MPC elects to offer for sale, as a Marathon Brand product, either (1) a [***], excluding however, products meeting the ASTM D 5798 Standard Specification for Fuel Ethanol (Ed75-Ed85) for Automotive Spark-Ignition Engines (“E-85”); or (2) a gasoline [***]  for such product(s) under the terms and conditions of this Agreement, per the formulas set forth [***]  in the [***] would be [***] for [***].

(3)      In the event a Novel Product is predominantly sold at [***] in a Geographic Area, and [***] to [***], in a [***], [***] will [***] for [***] or [***]  under [***] in [***] in [***] the [***] set forth in [***] that [***] would be [***] the [***] for the [***] that [***] during such [***]:[***] a [***] for the [***] in the [***] and [***] demonstrates, to [***], that [***] has [***], or will be able to [***], the [***] and [***] to accommodate [***] in the [***].

5.        Payment Card Processing.

(a)     [***].  Commencing December 1, 2010 or as soon as practicable thereafter, and continuing through the remainder of the Term, [***] using the Marathon version of the [***], for any third party payment cards and the MPC card payment products, including but not limited to the Marathon proprietary and prepaid cards and the SuperFleet card.

(b)    In the Opening Period and in any [***] of any Contract Year in which [***] and the [***] in each calendar month of such [***],[***] shall [***] on [***] during the [***] for [***] at the [***]. The [***] of [***] on [***] for such [***] in a [***] will be [***] by [***] (i) [***] during the [***] (ii) the [***], or that [***] which, when [***] from [***] during the [***]. In the event that [***] their [***] within a [***] during the Term, then [***] will [***], by [***] to the [***] between the [***] in the v, and the [***] of the [***].[***], as used in this paragraph, shall be [***] involving the [***] in a [***] relative to the [***] in that [***].

(c)        [***].  [***] under this Section 5 shall be [***] in the form of [***] by [***] to [***] on the [***] of the [***] following the [***] in which [***], subject to the [***] outlined in this Section 5(c). By the [***] of the [***] following the [***] in which [***] will send [***] the [***] for that [***], pursuant to this Section 5, for [***]. In the event [***] does [***],[***] shall [***] with [***] not later than the [***] of the [***] for purposes of reconciliation. In the event [***] on the [***] of such [***],[***] of the [***], if any, [***] until the [***].

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

6.        Volume Determination.

(a}        [***].   For all purposes under this Agreement, the volume of [***] of [***] and [***] that have been purchased by PANTRY directly from MPC in a relevant time period shall be taken as the equivalent of the volume of [***] of [***] and [***] delivered to the [***] for resale at retail in the time period; except that any volumes of [***] and [***] delivered by PANTRY in the time period to a retail motor fuel outlet which is the subject of a separate Improvement Agreement, Marketer's Agreement, Branding Agreement, Conversion Agreement, or any similar agreement, howsoever denominated, and whenever executed, by MPC and PANTRY shall not be deemed to be volumes of [***] or [***] delivered for resale at retail to the Retail Outlets in the time period.

(b)        [***] Reporting - Phase 5 Volume.  PANTRY shall submit a report to MPC, in a manner approved by MPC, stating the preliminary Phase 5 Volume [***] within a [***], by Retail Outlet and by Designated Terminal, no later than the [***] following the close of the [***]. Any changes to the volumes reported to MPC under this Section 6(b) shall be submitted by PANTRY as part of the reconciliation process contemplated in Section 4(e), not later than the [***] in which the preliminary Phase 5 Volume was reported. If no changes are submitted by PANTRY as part of such reconciliation, the Parties agree that the preliminary Phase 5 Volume shall be deemed final [***] in which the preliminary Phase 5 Volume was reported, and no changes to the Phase 5 Volume will be accepted by MPC after that date and time.

(c)         Audit.  MPC shall have the right to inspect the books and records of PANTRY to verify PANTRY's deliveries to the Retail Outlets. PANTRY shall maintain its books and records in such manner as to allow MPC, upon inspection thereof, to verify the accuracy of PANTRY's volumes delivered to each of the Retail Outlets. Inspection of books and records shall be made only after reasonable notice to PANTRY.

7.        Branded Outlets.

(a)        PANTRY agrees that, for the [***], each of the Retail Outlets will be MARATHON® branded retail outlets so long as [***]. For the purposes of this Section 7(a), “[***]” shall mean, with respect to any one or more Retail Outlet(s) from time to time during the [***], any of the motor fuel retail outlet(s) identified as a Retail Outlet [***] in accordance with the then current image and identification standards for “Branded Outlets” established by MPC through the Product Supply Agreement and, as applicable, the Joint Image Plan, Phase 3 Image Plan, Phase 4 Image Plan and/or the Phase 5 Image Plan, and [***].  Following a [***], MPC shall have the right, at its sole option, to [***] (i) the [***] immediately preceding the [***];[***] (ii) [***].  If MPC elects [***], PANTRY shall, within [***] of the occurrence of the applicable [***], certify to MPC the [***] immediately preceding the [***].  In the alternative, the Parties may mutually agree as to the [***] that is [***], in MPC's sole determination, of [***], including but not limited to [***][***], such [***] to be documented through a written amendment to the applicable exhibit attached to this Agreement.

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

(b)    PANTRY will cause the Retail Outlets to comply, at [***] to MPC other than [***] and [***] in accordance with Section 3 of this Agreement with the then current image and identification standards established by MPC for “Branded Outlets” through the [***] on or before the dates stated in Section 3, as applicable. For avoidance of  doubt, the then current  image  and identification standards established by MPC  for “Branded Outlets” through the [***] includes, for the purposes of this Agreement, the Joint Image Plan, and such authorized variation from the then current image and identification standards  established  by MPC  for  “Branded  Outlets”  through  the  [***] is applicable only to the Retail Outlets that are owned and operated by PANTRY as of the first date of the Term. Notwithstanding the provisions of this Section 7, in the event, and to the extent, MPC revises its image standards to [***] with [***], PANTRY shall [***] the canopy of any Retail Outlet having the [***],  except by the Parties' mutual consent [***].

(c)        As of July 26, 2010, [***] of the Retail Outlets do not meet [***] set  forth  in the Product  Supply  Agreement, and  may  be [***]. On or before [***], the Parties will meet and confer to discuss the status of such Retail Outlets at that time, relative to MPC's terms for adding “Branded Outlets”. For any such Retail Outlet(s) [***], the Parties will mutually agree to the [***]. The Parties agree to enter into a written amendment reflecting [***] of [***], as appropriate.

8.    Future Retail Outlets.

(a)      Exhibit B may be amended to add, subject to MPC's approval and the terms for adding “Branded Outlets” set forth in the Product Supply Agreement, any retail outlet that is, during the Term, reimaged or converted by PANTRY to a MARATHON® retail outlet. Except to the extent otherwise agreed by the Parties, PANTRY shall pay any costs and expenses necessary to reimage or convert to a MARATHON® retail outlet, any retail outlet added to Exhibit B during the Term except that MPC shall provide and own at its sole cost and expense, at each such retail outlet, a MARATHON® logo sign. MPC and PANTRY agree that any retail outlet added to Exhibit B as a Retail Outlet for all purposes under this Agreement, from and after the effective date of the amendment executed by MPC and PANTRY so as to add the retail outlet to Exhibit B, and will comply with the then current image and identification standards established by MPC for “Branded Outlets” through the Product Supply Agreement, and for those retail outlet owned and operated by PANTRY as of the date it is converted to the Marathon® brand, also the Joint Image Plan, within [***] following the effective date of the amendment executed by MPC and PANTRY so as to add the retail outlet to Exhibit B.

(b)    PANTRY [***] to the Marathon® brand, [***]. The Parties shall agree to a projected annual gasoline volume for such retail motor fuel outlet, and shall enter into a written amendment adding such retail motor fuel outlet(s) [***] to this Agreement, to the extent that the [***]  with such retail motor fuel outlet(s) added [***] pursuant to this Section 8(b), and sites added to Exhibit A to the GSA, [***].

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

9.        Payment Terms.   Subject to the terms and conditions of the Product Supply Agreement, including but not limited to, Section 3.3 of the Product Supply Agreement, PANTRY will be eligible for payment terms of [***].

10.        Payment Assurance. PANTRY agrees to provide a standby letter of credit issued in favor of MPC by a bank approved by MPC on such terms and conditions acceptable to MPC, and in an amount sufficient to secure payment of all Marathon branded products purchased by PANTRY and unpaid from time to time, including the amount of any payment for which MPC is awaiting confirmation, including without limitation any confirmation period for electronic funds transfer initiated by MPC. In the event PANTRY does not provide a letter of credit as required under this Section, MPC may, at its sole discretion, invoke its remedies under Section 3.3(c) of the Product Supply Agreement, including but not limited to, discontinuing further sales or shipments of Marathon branded products until such letter of credit is provided or, in the case of draws or expiration, until such letter of credit is restored.

11.        Public Announcements. Each Party will first give the other party notice and the opportunity to review and comment upon any public disclosure, statement or press release (whether or not required by law, regulation or stock exchange rule)  about  this Agreement and/or the relationship  between  the Parties prior to its disclosure to any third party, and the Parties shall agree as to the content and timing of any such disclosure, statement or press release prior to its release, subject to deadlines imposed by applicable law for public reporting.  Notice shall be provided at a time sufficient to allow a reasonable opportunity for review and discussion in advance of such statutory or regulatory deadline. This provision shall survive the termination or expiration of this Agreement for a period of one (1) year.

12.      [***].

(a)    For any retail motor fuel outlets operated by PANTRY and for which the fuel supply agreement is [***]  to [***] to [***] or [***]. PANTRY shall provide to MPC the information regarding such [***] sufficient for MPC's review and analysis of [***], including but not limited to, [***], on or before the earlier of (a) the [***]; or (b) [***].[***] shall have [***] with respect [***]. PANTRY shall have the right to accept or reject any offer made by MPC, or to make a counteroffer, in response to any offer made by MPC in accordance with this Section 12(a).

(b)        In the event [***] in accordance with [***] of whether [***]  has [***]  to the [***]  or to [***] with [***] shall provide [***]  with [***] to [***], and [***] a [***]  of [***] in which to [***], and [***]  to [***] for the [***] to the [***] and [***] or for [***], recognizing, however, that [***].

13.     Product Ratability.  If MPC implements a plan, formula, or method to equitably reduce demand for “Products” as provided by the Product Supply Agreement, the Minimum Combined Annual [***] Volume or the Minimum Combined Annual [***] Volume, or both, and the rebate eligibility volume for [***], for [***], or both, will be reduced accordingly.

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[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

14.     Accommodation of Material Loss of PANTRY Sales Volume.

(a)     PANTRY may request, in writing, a [***] of the Minimum Combined  Annual [***] Volume and monthly minimum volume of [***] and [***] necessary  to [***] pursuant  to Section 4 of this Agreement and [***] pursuant to the [***], provided PANTRY demonstrates a loss of sales volume of [***] at the Retail Outlets and [***] at the outlets listed on Exhibit A to the [***] and that [***] is the [***]  (as defined in [***] or [***], and not [***].[***] of the Minimum Combined Annual [***] and the monthly minimum [***]  as described in this paragraph shall be made in increments of [***] per calendar month of [***] per calendar  month, and for every [***] per calendar month of [***], the [***], as calculated in accordance with Section 4(a)(3) of this Agreement, shall be [***] up to [***]. The reduction in Minimum Combined Annual [***] Volume and the monthly minimum [***]  shall be applicable for the [***] with the calendar month in which PANTRY provides proof of such loss of sales volume. Upon PANTRY's providing proof of such loss of sales volume, the reduction of the Minimum Combined Annual [***] Volume and monthly minimum volume of [***] necessary to [***] documented by MPC in writing and consented to, by signature of authorized representative of PANTRY.

(b)        PANTRY may request, in writing, a reduction  of  the Minimum  Combined  Annual [***]   Volume  and monthly  minimum  volume  of (i)  [***] and  (ii) [***]  necessary to [***]  pursuant to Section 4 of this Agreement and [***] pursuant to the [***],  provided PANTRY demonstrates a loss of sales volume of [***] at the Retail Outlets and [***] at the outlets listed on Exhibit A to the [***]  and that [***] is the [***] (as defined in [***]),[***], or [***], and not [***].[***]  of the Minimum Combined  Annual [***]   Volume and the monthly minimum [***] and [***] as described in this paragraph shall be made [***] per calendar month of [***] and [***] per calendar month, and for every reduction of [***] per calendar month of [***] and [***], the [***], as calculated in accordance with Section 4(b)(3) of this Agreement, shall be [***]. The reduction in Minimum Combined Annual [***] Volume and the monthly minimum  [***] and [***]  shall be applicable for the [***] with the calendar month in which PANTRY provides proof of such loss of sales volume. Upon PANTRY's providing proof of such loss of sales volume, the reduction of the Minimum Combined Annual [***]  Volume and monthly minimum volume of [***] necessary [***] will be documented by MPC in writing and consented to, by signature of authorized representative of PANTRY.

15.       Default and Termination.  Upon the occurrence of any Termination Event, MPC shall have the right, at its sole option, to:

(a)        immediately terminate this Agreement without advance notice of termination, written or otherwise, from MPC; and

(b)        receive from PANTRY, without prior demand, an amount equal to the sum of the (1) unamortized balance of the [***] at the time the Termination Event occurs; and (2) unamortized balance of the [***] at the time the Termination Event occurs.

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

16.     Miscellaneous.

(a)        Payment. Unless a different time frame for payment is otherwise set forth in this Agreement, payment of any amount due pursuant to this Agreement shall be made to MPC [***].

(b)       Assignment. Neither Party may assign this Agreement without the prior written consent of the other Party.

(c)        Survivability. Those provisions in this Agreement which by their terms should survive the termination or expiration of this Agreement, including without limitation, Section 11, shall survive the termination or expiration of this Agreement.

(d)        Governing Law. Except for its conflicts of law provisions, in all other respects, Ohio law governs all matters pertaining to the validity, construction, and effect of this Agreement.

(e)        Remedies.  Remedies stated herein for breach or default hereunder, except as may be specifically provided, are cumulative and not exclusive. Nothing herein shall prevent any Party from obtaining or pursuing, where appropriate, other or additional remedies to which such Party may be entitled by law or in equity, except neither Party shall be entitled to consequential, incidental or punitive damages for breach of this Agreement, with the Parties' acknowledgement that MPC is entitled to the remedies set forth in Section 7(a) and Section 15 of this Agreement.

(f)       Waiver.  The waiver of any right upon a breach of any provision of this Agreement shall not be construed or deemed to be a continuing waiver with respect to said breach or any subsequent breach of any kind.

(g)      Notices. Any notice or the like required or permitted herein shall be sent to the appropriate party at said party's address first shown above. Notice shall be deemed given when received.

(h)    Severability. If any provision or term of this Agreement is determined by a court with appropriate jurisdiction to be in conflict with any applicable state or federal law or otherwise so determined to be illegal, unenforceable or invalid, the validity of the remaining terms and provisions shall not otherwise be affected thereby and 1he rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the term or pro\4sion held to be invalid.

(i)     Headings. The descriptive headings in the Agreement are inserted for convenience only and do not control or affect the meaning, construction, or interpretation of or constitute a part of this Agreement.

(j)      Integration. This Agreement, including the attached Exhibits, contains the entire agreement between the Parties relating to its subject matter and  supersedes and cancels all prior agreements and there are no antecedent or contemporaneous oral or written promises or agreements modifying, qualifying, or augmenting Its terms or any other oral or written representations inducing its execution.

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 (k)        Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an. original, but all of which together shall constitute one and the same instrument. The signature pages to this Agreement may be exchanged by facsimile.

(I)   Amendment.  This Agreement may be amended only by written amendment signed by both Parties.

B.        EFFECTIVE DATE. The Parties have executed this Agreement to be effective as of January 1, 2013.

C.       BINDING EFFECT. For purposes of any rights and/or obligations of the Parties arising before January 1, 2013, the Existing Agreement remains in full force and effect, fully enforceable against the Parties as their binding legal obligation In accordance with the terms set forth in this Agreement.

IN WITNESS WHEREOF, the parties have executed this Amended and Restated Master Conversion Agreement on the day and year first written above.

	
		
	THE PANTRY, INC
	MARATHON PETROLEUM COMPANY LP (“MPC”)

	(“PANTRY”)
	By: MPC Investment LLC, its General Partner

	 
	 

	By  /s/ Dennis G. Hatchell                                                                      
	By  /s/ Thomas M. Kelley                                     

	Its President and Chief Executive Officer
	Its Senior Vice President

STATE OF North Carolina  )

) SS.
COUNTY OF Wake             )

On this _ 24 _ day of      June      , 2013, before me, the undersigned Notary Public in and for said County and State, came Dennis G. HatcheII who, being first duly sworn, did say that he is the President and Chief Executive Officer of The Pantry, Inc., a Delaware corporation, and that he executed this Amended and Restated Master Conversion Agreement on behalf of and with the authority of said corporation, with full knowledge of its contents and as its free act and deed.

IN WITNESS WHEREOF, I have hereunto subscribed my name on the day and year last aforesaid.

/s/ Robin F. Ward             
Notary Public

My Commission expires:

April 23, 2018            
(SEAL)

STATE OF Ohio________  )

) SS.
COUNTY OF Hancock        )

On this _26_ day of      June      , 2013, before me, the undersigned Notary Public in and for said County and State, came T. M. Kelley, a Senior Vice President, Marketing, who did acknowledge that he executed this Amended and Restated Master Conversion Agreement on behalf of and with the authority of MPC Investment LLC, general partner of Marathon Petroleum Company LP, with full knowledge of its contents and as its free act and deed.

IN WITNESS WHEREOF, I have hereunto subscribed my name on the day and year last aforesaid.

/s/ Cynthia L. Ely      
Notary Public

My Commission expires:

June 5, 2016______
(SEAL)

EXHIBIT A
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated ____________, 2013
by and between The Pantry,  Inc. and
Marathon Petroleum Company LP

Phase 1 Outlets

	
			
	

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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
	

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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT B
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated____________, 2013
by and between The Pantry, Inc. and
Marathon Petroleum Company LP

Phase 2 Outlets

	
			
	

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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
	

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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
	

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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
	

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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
	

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_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT C
      TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated____________, 2013
by and between The Pantry, Inc. and
Marathon Petroleum Company LP

Joint Image Plan

Main ID sign	
		
	

	                              

The foregoing examples depict multiple configurations of a main ID sign acceptable at the Retail Outlets. The Pantry or Kangaroo® may be displayed in the [***] of a main ID sign provided that the Marathon® logo has at least equal representation on such main ID sign, including but not limited to, size of the logo.

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

Canopy

	
		
	
	 

      

The red areas in the canopy fascia that is part of the Joint Image Plan shall be [***].

The blue areas in the canopy fascia that is part of the Joint Image Plan shall be [***].

_________________

[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT D
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated____________, 2013
by and between The Pantry, Inc. and
Marathon Petroleum Company LP

Phase 3 Outlets
	
			
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	[***]

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
	Street Address
	City
	State

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT E
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated___________, 2013
by and between The Pantry, Inc. and
Marathon Petroleum Company LP

Phase 3 Image Plan

At each of the Phase 3 Outlets, [***] will install the following image items, at a minimum, which items shall comply with the [***] image and identification standards and the agreed plan below, and with respect to the canopy and
price sign, also the Joint Image Plan:

•    Price Sign(s)
o     Refacing of existing pylon signs (ID sign and Price Sign) is acceptable
		
	o 
	Kangaroo Express logo may maintain [***], with Marathon logo having [***], and at least [***] on such main ID sign, including but not limited to, [***]

o   High-rise signs containing the [***] must be replaced with either a [***] or [***].
•    Canopy
o   Comply with Joint Image Plan
o   ACM or vinyl is acceptable, resulting in flat fascia
o     Kangaroo Express logo on [***]
o   Two (2) sets of [***] ([***]), except to the extent prohibited by applicable zoning laws
		
	o 
	Small round or square canopy columns/poles must be cladded to [***] standard specifications. large round canopy columns/poles must be painted to match [***] cladding specifications. To ensure consistency with imaging of Phase 1 Outlets and Phase 2 Outlets[***], but if [***].

o     Lane identifiers to [***] standard specifications
•    Dispensers
o  STP® pump skirts
o   Dispenser cladding required. [***] to install new dispenser side risers to [***] specifications.
Side risers must be stainless steel or white
o     Standard [***] round valances required, except where the pump's proximity to canopy pole does not allow for standard round valance, in which case approved square valences are permitted
o   Any diesel dispensers underneath gasoline canopy must be imaged to [***] standard specs
o   Any [***] must be labeled [***]
•    Area lights/poles  to be painted white
•    Trash receptacles must be [***] -1 receptacle per dispenser
•    Bollards to be painted black
•    Gas island curbing to be painted black or be stainless steel
•    All other site curbing to be painted white
•    Marketing materials:
o   Outdoor application holders - present and stocked
o  Indoor application holders -present and stocked

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

The image concept for each Phase 3 Outlet must be submitted to [***], and [***], prior to [***] for such Phase 3 Outlet.

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT F
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated___________, 2013
by and between The Pantry, Inc. and
Marathon Petroleum Company LP

Phase 4 Outlets

	
			
	Street Address
	City
	State

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT G
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated___________, 2013
by and between The Pantry, Inc. and 
Marathon Petroleum Company LP

Phase 4 Image Plan

At each of the Phase 4 Outlets, [***] will install the following image items, at a minimum, which items shall comply with the [***] image and identification standards and the agreed plan below, and with respect to the canopy and price sign, also the Joint Image Plan:
•    Price Sign(s)
o   Refacing of existing pylon signs (ID sign and Price Sign) is acceptable
o   Kangaroo Express logo may maintain [***], with Marathon logo having [***], and at least [***] on such main ID sign, including but not limited to, [***]
o   High-rise signs containing the [***] must be replaced with either a [***] or [***].
•    Canopy
o     Comply with Joint Image Plan
o   ACM or vinyl is acceptable, resulting in flat fascia o   Kangaroo Express logo on [***]
o   Two (2) sets of [***] ([***]),
except to the extent prohibited by applicable zoning laws
o  Small round or square canopy columns/poles must be cladded to [***] standard specifications.
Large round canopy columns/poles must be painted to match [***] cladding specifications. To
ensure consistency with imaging of Phase 1 Outlets, Phase 2 Outlets, and Phase 3 Outlets
[***], but [***].
o     Lane identifiers to [***]  standard specifications
•    Dispensers
o   STP® pump skirts
o     Dispenser cladding required. [***] to install new dispenser side risers to [***] specifications.
Side risers must be stainless steel or white
		
	o 
	Standard [***] round valances required, except where the pump's proximity to canopy pole does not allow for standard round valance, in which case approved square valences are permitted

o   Any diesel dispensers underneath gasoline canopy must be imaged to [***] standard specs       
   [***] must be labeled [***]
•    Area lights/poles to be painted white
•    Trash receptacles must be [***] - 1 receptacle per dispenser
•    Bollards to be painted black
•    Gas island curbing to be painted black or be stainless steel
•    All other site curbing to be painted white

The image concept for each Phase 4 Outlet must be submitted to [***], and [***], prior to [***] for such Phase 4 Outlet.

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT H
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated___________, 2013
by and between The Pantry, Inc. and 
Marathon Petroleum Company LP

Phase 5 Outlets

	
			
	Street Address
	City
	State

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

	
			
	Street Address
	City
	State

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

EXHIBIT I
TO AMENDED AND RESTATED MASTER CONVERSION AGREEMENT
dated___________, 2013
by and between The Pantry, Inc. and
Marathon Petroleum Company LP

Phase 5 Image Plan

At each of the Phase 5 Outlets, [***] will install the following image items, at a minimum, which items shall comply with the [***] image and identification standards and the agreed plan below, and with respect to the canopy and price sign, also the Joint Image Plan:
•    Price Sign(s)
o   Refacing of existing pylon signs (ID sign and Price Sign) is acceptable
		
	o
	Kangaroo Express logo may maintain [***], with Marathon logo having [***], and at least [***] on such main ID sign, including but not limited to, [***]

o     High-rise signs must be replaced with either a [***] or [***].
•    Canopy
o   Comply with Joint Image Plan
o   ACM or vinyl is acceptable, resulting in flat fascia o     Kangaroo Express logo on [***]
o   Two (2) sets of [***] ([***]),
except to the extent prohibited by applicable zoning laws
o    Small round or square canopy columns/poles must be cladded to [***] standard specifications.
Large round canopy columns/poles must be painted to match [***] cladding specifications. To ensure consistency with imaging of Phase 1 Outlets, Phase 2 Outlets, Phase 3 Outlets and Phase 4
Outlets [***], but [***] 
		
	o
	Lane identifiers to [***] standard specifications

•    Dispensers
o   STP® pump skirts
o   Dispenser cladding required. [***] to install new dispenser side risers to [***] specifications.
Side risers must be stainless steel or white
o  Standard [***] round valances required, except where the pump's proximity to canopy pole does not allow for standard round valance, in which case approved square valences are permitted
o   Any diesel dispensers underneath gasoline canopy must be imaged to [***] standard specs
o   [***] must be labeled [***]
•    Area lights/poles to be painted white
•    Trash receptacles must be [***] - 1 receptacle per dispenser
•    Bollards to be painted black
•    Gas island curbing to be painted black or be stainless steel
•    All other site curbing to be painted white

The image concept for each Phase 5 Outlet must be submitted to [***], and [***], prior to [***] for such Phase 5 Outlet.

_________________
[***]  Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

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