Document:

<PAGE>

                                                                      Exh. 10.36

                 FIFTH AMENDMENT, WAIVER AND COLLATERAL RELEASE

          This Fifth Amendment, Waiver and Collateral Release (this "Waiver") is
entered into as of September 3, 2003, by and among SMART & FINAL INC., a
Delaware corporation (the "Borrower"), the Guarantors listed on the signature
pages hereof, the financial institutions and other entities party hereto (the
"Lenders") and BNP PARIBAS, as Administrative Agent for the Lenders (the
"Administrative Agent").

                                    RECITALS

          A. The Borrower, the Lenders, the Administrative Agent, Harris Trust &
Savings Bank, as syndication agent, and Cooperative Centrale
Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland", New York Branch, as
documentation agent, are parties to that certain Credit Agreement dated as of
November 30, 2001 (as amended to date, the "Credit Agreement"). Capitalized
terms used herein without definition have the meanings ascribed to such terms in
the Credit Agreement.

          B. The Borrower has informed the Administrative Agent that it intends
to sell its Florida broadline foodservice operations and nine of the fourteen
Smart & Final stores located in Florida (such nine stores, the "Florida Stores")
to GFS Holding Inc., a Michigan corporation ("GFS"), and certain of GFS's
subsidiaries for a total purchase price of approximately $28 million in cash and
the assumption of approximately $30 million of lease liabilities with respect to
eight of the Florida Stores. The transaction will be structured as a sale of the
stock of Henry Lee Company and a sale or sublease, as applicable, of the Florida
Stores and the assets comprising the Orlando, Florida foodservice unit, and will
also include the sale of three Synthetic Lease Properties for a total purchase
price of approximately $14,340,000 (collectively, the "Sale Transaction"). The
assets to be sold in the Sale Transaction are set forth on Annex A hereto (such
assets, the "Sale Assets").

          C. The Borrower has further informed the Administrative Agent that the
Subsidiaries of Henry Lee Company will be transferred to American Foodservice
Distributors prior to the consummation of the Sale Transaction. Such transfer
will violate the provisions of Section 4.1(b)(viii) of the Pledge Agreement.

          D. The Borrower has also informed the Administrative Agent that on
August 16, 2003, it closed the remaining five of the fourteen stores located in
Florida and two additional non-operating properties located in Florida, all of
which are identified on Annex B hereto (such stores, the "Closed FL Stores").
The Borrower intends to find replacement tenants to assume the leases with
respect to the Closed FL Stores or otherwise dispose of the Closed FL Stores at
an indeterminate date.

          E. Section 6.02(d) of the Credit Agreement prohibits sales of assets
by the Loan Parties except under certain circumstances. Under Section
6.02(d)(iii), the Loan Parties may sell assets if the purchase price for the
asset being sold is paid solely in

<PAGE>

cash (the "Cash Requirement") and the aggregate purchase price paid to all of
the Loan Parties for such asset and all other assets sold by the Loan Parties
during the same Fiscal Year pursuant to Section 6.02(d)(iii) does not exceed
$7,500,000 in any Fiscal Year and $15,000,000 during the term of the Credit
Agreement (the "Proceeds Limitation"). In addition, Section 6.02(d)(v) permits
sales of Synthetic Lease Properties so long as the purchase price thereof does
not exceed $5,000,000 (the "Five Million Dollar Limitation"). The Sale
Transaction does not, and the disposition of the Closed FL Stores may not, meet
the requirements of Section 6.02(d)(iii) and 6.02(d)(v).

          F. In connection with the Sale Transaction, the Borrower intends to
amend the Synthetic Lease Documents to provide that (i) the period for acquiring
replacement properties shall be increased from 60 days to 180 days and (ii) the
failure to acquire a replacement property within that time period shall not
constitute an event of default under the Synthetic Lease Documents so long as
the cash proceeds from the sale of any Synthetic Lease Properties are held as
collateral for the obligations under the Synthetic Lease Documents. Such an
amendment may violate Section 6.02(j)(iv) of the Credit Agreement, which
prohibits amendments of the Synthetic Lease Documents in any manner which is
materially adverse to the Lenders.

          G. The Borrower has requested that the Lenders and the Administrative
Agent (i) consent to the transfer of the three Subsidiaries of Henry Lee Company
to American Foodservice Distributors, (ii) consent to the Sale Transaction and
the release of Henry Lee Company from all of its obligations under the Loan
Documents, (iii) consent to the disposition of the Closed FL Stores, (iv) agree
to waive the Cash Requirement and the Proceeds Limitation of Section
6.02(d)(iii) and the Five Million Dollar Limitation of Section 6.02(d)(v) in
connection with the Sale Transaction and the disposition of the Closed FL
Stores, (v) consent to the amendment of the Synthetic Lease Documents to (A)
increase the period for acquiring replacement properties from 60 days to 180
days and (B) provide that the failure to acquire a replacement property within
that time period shall not constitute an event of default under the Synthetic
Lease Documents so long as the cash proceeds from the sale of any Synthetic
Lease Properties are held as collateral for the obligations under the Synthetic
Lease Documents and (vi) release the Lien granted to the Administrative Agent
under the Collateral Documents, the Second Mortgages and the Subordinate
Security Agreement with respect to the Sale Assets.

          H. The Administrative Agent and the Lenders have agreed to (i) consent
to the transfer of the three Subsidiaries of Henry Lee Company to American
Foodservice Distributors, (ii) consent to the Sale Transaction and the release
of Henry Lee Company from all of its obligations under the Loan Documents, (iii)
consent to the disposition of the Closed FL Stores, (iv) waive the Cash
Requirement and the Proceeds Limitation of Section 6.02(d)(iii) and the Five
Million Dollar Limitation of Section 6.02(d)(v) in connection with the Sale
Transaction and the disposition of the Closed FL Stores, (v) consent to the
amendment of the Synthetic Lease Documents to (A) increase the period for
acquiring replacement properties from 60 days to 180 days and (B) provide that
the failure to acquire a replacement property within that time period shall not
constitute an event of default under the Synthetic Lease Documents so long as
the cash

                                       2

<PAGE>

proceeds from the sale of any Synthetic Lease Properties are held as collateral
for the obligations under the Synthetic Lease Documents and (vi) release the
Lien granted to the Administrative Agent under the Collateral Documents, the
Second Mortgages and the Subordinate Security Agreement with respect to the Sale
Assets, all as provided hereinbelow.

          NOW THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereto hereby agree as follows:

          Section 1. Section References. Unless otherwise expressly stated
herein, all Section references herein shall refer to Sections of the Credit
Agreement.

          Section 2. Consents. The Administrative Agent and the Lenders hereby
consent to:

               (a) the transfer of the three Subsidiaries of Henry Lee Company
to American Foodservice Distributors;

               (b) the Sale Transaction;

               (c) the release of Henry Lee Company from all of its obligations
under the Loan Documents;

               (d) the disposition of the Closed FL Stores; and

               (e) the amendment of the Synthetic Lease Documents to (A)
increase the period for acquiring replacement properties from 60 days to 180
days and (B) provide that the failure to acquire a replacement property within
that time period shall not constitute an event of default under the Synthetic
Lease Documents so long as the cash proceeds from the sale of any Synthetic
Lease Properties are held as collateral for the obligations under the Synthetic
Lease Documents.

          Section 3. Amendment of Loan Documents. All Loan Documents to which
Henry Lee Company is a party are hereby amended to remove Henry Lee Company as a
party.

          Section 4. Waiver of Section 6.02(d)(iii) and Section 6.02(d)(v). In
connection with the Sale Transaction and the disposition of the Closed FL
Stores, the Lenders hereby waive the Cash Requirement and the Proceeds
Limitation of Section 6.02(d)(iii) and the Five Million Dollar Limitation of
Section 6.02(d)(v); provided, that the Net Cash Proceeds from (i) the Sale
Transaction (excluding any Net Cash Proceeds received from the sale of any
Synthetic Lease Properties to GFS or any of its affiliates which are held as
collateral for the obligations of the Borrower under the Synthetic Lease
Documents and not used to purchase replacement Synthetic Lease Properties) and
(ii) the disposition of the Closed FL Stores shall be applied in accordance with
Section 2.05(b)(iii), and the Revolving Facility shall be permanently reduced in
accordance with Section 2.04(b).

                                       3

<PAGE>

          Section 5. Release of Collateral. Upon the later to occur of (i)
consummation of the Sale Transaction and (ii) satisfaction of the conditions
precedent set forth in Section 6 hereof (such date, the "Release Date"), the
Lenders authorize the Administrative Agent to release its Lien on the Sale
Assets. On the Release Date, the Administrative Agent shall, at the expense of
the Borrower, promptly return to the Borrower (i) all stock certificates
representing the shares of stock of Henry Lee Company pledged to the
Administrative Agent pursuant to the Collateral Documents and the executed stock
powers related thereto and (ii) any and all instruments, certificates and other
documents evidencing any lien, charge or encumbrance on the Sale Assets. In
addition, effective on the Release Date, the Administrative Agent authorizes the
Borrower and its agents or representatives to file such documents or
instruments, including UCC termination statements to terminate the UCC-1
Financing Statements filed against Henry Lee Company, as the Borrower may deem
necessary to evidence, effect or confirm the release and termination of any and
all Liens created under the Collateral Documents, the Second Mortgages and the
Subordinate Security Agreement with respect to the Sale Assets.

          Section 6. Conditions Precedent. The effectiveness of this Waiver is
subject to the satisfaction of each of the following conditions precedent:

               (a) The Administrative Agent shall have received all of the
following, in form and substance satisfactory to the Administrative Agent:

                    (i) Waiver Documents. This Waiver, a Borrowing Base
     Certificate (modified as necessary from the form attached as Exhibit K to
     the Credit Agreement to give pro forma effect to the Sale Transaction), a
     Pledge Supplement with respect to the transfer of the stock of the three
     Subsidiaries of Henry Lee Company to American Foodservice Distributors,
     together with new stock certificates and stock powers executed in blank
     with respect to the stock of such Subsidiaries, and any other instrument,
     document or certificate required by the Administrative Agent to be executed
     or delivered by the Borrower or any other Person in connection with this
     Waiver, duly executed by such Persons (the "Waiver Documents");

                    (ii) Copies of Sale Documents. True and correct copies of
     the stock and asset purchase agreements and any other agreements, documents
     or instruments executed in connection with the Sale Transaction;

                    (iii) Consent of Required Lenders. The written consent of
     the Required Lenders to this Waiver;

                    (iv) Amendment, Waiver and Release in connection with
     Synthetic Lease Documents. (A) Copies of the amendment, waiver and release
     documents with respect to the Synthetic Lease Documents, pursuant to which
     (1) the period for acquiring

                                       4

<PAGE>

     replacement properties shall be increased from 60 days to 180 days, (2) the
     failure to acquire a replacement property within that time period shall not
     constitute an event of default under the Synthetic Lease Documents so long
     as the cash proceeds from the sale of any Synthetic Lease Properties are
     held as collateral for the obligations under the Synthetic Lease Documents,
     (3) the asset sale covenant in the Synthetic Lease Documents will be
     amended or waived to permit the Sale Transaction, (4) the Liens on the Sale
     Assets created by the Synthetic Lease Documents will be released and (5)
     any other conforming changes to the Synthetic Lease Documents reasonably
     requested by the Administrative Agent will be made and (B) evidence that
     such amendment, waiver and release documents have been executed and are in
     full force and effect;

                    (v) Additional Information. Such additional documents,
     instruments and information as the Administrative Agent may reasonably
     request to effect the transactions contemplated hereby.

               (b) The Administrative Agent shall have received the Net Cash
Proceeds of the Sale Transaction on the date of receipt thereof by the Borrower
or any of its Subsidiaries.

               (c) The representations and warranties contained herein and in
the Credit Agreement shall be true and correct as of the date hereof as if made
on the date hereof (except for those which by their terms specifically refer to
an earlier date, in which case such representations and warranties shall be true
and correct as of such earlier date).

               (d) All corporate proceedings taken in connection with the
transactions contemplated by this Waiver and all other agreements, documents and
instruments executed and/or delivered pursuant hereto, and all legal matters
incident thereto, shall be satisfactory to the Administrative Agent.

               (e) No Default or Event of Default shall have occurred and be
continuing, after giving effect to this Waiver.

          Section 7. Representations and Warranties. The Borrower hereby
represents and warrants to the Administrative Agent and the Lenders that, as of
the date of and after giving effect to this Waiver, (a) the execution, delivery
and performance of this Waiver and any and all other Waiver Documents executed
and/or delivered in connection herewith have been authorized by all requisite
corporate action on the part of the Borrower and will not violate the Borrower's
certificate of incorporation or bylaws, (b) all representations and warranties
set forth in the Credit Agreement and in any other Loan Document are true and
correct as if made again on and as of such date (except those, if any, which by
their terms specifically relate only to an earlier date, in which case such
representations and warranties are true and correct as of such earlier date),
(c) no Default or Event of Default has occurred and is continuing, and (d) the
Credit Agreement (after giving effect to this Waiver), and all other Loan
Documents are and remain legal, valid, binding and enforceable obligations in
accordance with the terms thereof.

                                       5

<PAGE>

          Section 8. Survival of Representations and Warranties. All
representations and warranties made in this Waiver or any other Loan Document
shall survive the execution and delivery of this Waiver and the other Loan
Documents, and no investigation by the Administrative Agent or the Lenders, or
any closing, shall affect the representations and warranties or the right of the
Administrative Agent and the Lenders to rely upon them.

          Section 9. Certain Waivers. The Borrower and each Guarantor hereby
agrees that neither the Administrative Agent nor any Lender shall be liable
under a claim of, and hereby waives any claim against the Administrative Agent
and the Lenders based upon, lender liability (including, but not limited to,
liability for breach of the implied covenant of good faith and fair dealing,
fraud, negligence, conversion, misrepresentation, duress, control and
interference, infliction of emotional distress and defamation and breach of
fiduciary duties) as a result of any discussions or actions taken or not taken
by the Administrative Agent or the Lenders on or before the date hereof or the
discussions conducted pursuant hereto, or any course of action taken by the
Administrative Agent or any Lender in response thereto or arising therefrom.
This Section 9 shall survive the execution and delivery of this Waiver and the
other Loan Documents and the termination of the Credit Agreement.

          Section 10. Reference to Agreement. Each of the Loan Documents,
including the Credit Agreement, and any and all other agreements, documents or
instruments now or hereafter executed and/or delivered pursuant to the terms
hereof or pursuant to the terms of the Credit Agreement as amended hereby, are
hereby amended so that any reference in such Loan Documents to the Credit
Agreement, whether direct or indirect, shall mean a reference to the Credit
Agreement as amended hereby.

          Section 11. Costs and Expenses. The Borrower shall pay on demand all
reasonable costs and expenses of the Administrative Agent (including the
reasonable fees, costs and expenses of counsel to the Administrative Agent)
incurred in connection with the preparation, execution and delivery of this
Waiver.

          Section 12. Governing Law. THIS WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA.

          Section 13. Execution. This Waiver may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Waiver by telecopier shall be effective
as delivery of a manually executed counterpart of this Waiver.

          Section 14. Limited Effect. This Waiver relates only to the specific
matters covered herein, shall not be considered to be a waiver of any rights any
Lender may have under the Credit Agreement (other than as expressly set forth
herein), and shall not be considered to create a course of dealing or to
otherwise obligate any Lender to

                                       6

<PAGE>

execute similar amendments or grant any waivers under the same or similar
circumstances in the future.

          Section 15. Ratification By Guarantors and Henry Lee Company. Each of
Henry Lee Company and the other Guarantors hereby agrees to this Waiver, and
each of the Guarantors (other than Henry Lee Company) acknowledges that such
Guarantor's Guaranty shall remain in full force and effect without modification
thereto.

                                       7

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                   SMART & FINAL INC.,
                                   as Borrower

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

                                   AMERICAN FOODSERVICE DISTRIBUTORS

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

                                   SMART & FINAL STORES CORPORATION

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

                                   SMART & FINAL OREGON, INC.

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

                                   PORT STOCKTON FOOD DISTRIBUTORS, INC.

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President - Finance

<PAGE>

                                   HENRY LEE COMPANY

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President - Finance

                                   AMERIFOODS TRADING COMPANY

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

                                   CASINO FROZEN FOODS, INC.

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

                                   FOODSERVICESPECIALISTS.COM, INC.

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

                                   OKUN PRODUCE INTERNATIONAL, INC.

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

<PAGE>

                                   HL HOLDING CORPORATION

                                   By: /s/ Richard N. Phegley
                                       -----------------------------------------
                                       Name: Richard N. Phegley
                                       Title: Senior Vice President &
                                              Chief Financial Officer

<PAGE>

                                   BNP PARIBAS,
                                   as Administrative Agent and a Lender

                                   By: /s/ Sean T. Conlon
                                       -----------------------------------------
                                       Name: Sean T. Conlon
                                       Title: Managing Director

                                   By: /s/ Janice S. H. Ho
                                       -----------------------------------------
                                       Name: Janice S. H. Ho
                                       Title: Director

<PAGE>

                                   HARRIS TRUST & SAVINGS BANK

                                   By:
                                       -----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                   COOPERATIVE CENTRALE
                                   RAIFFEISEN-BOERENLEENBANK
                                   B.A., "RABOBANK NEDERLAND",
                                   NEW YORK BRANCH

                                   By: /s/ Ian Reece
                                       -----------------------------------------
                                       Name: Ian Reece
                                       Title: Managing Director

                                   By: /s/ Jessalyn Peters
                                       -----------------------------------------
                                       Name: Jessalyn Peters
                                       Title: Executive Director

<PAGE>

                                   CREDIT INDUSTRIEL ET COMMERCIAL

                                   By: /s/ Albert M. Calo
                                       -----------------------------------------
                                       Name: Albert M. Calo
                                       Title: Vice President

                                   By: /s/ Frederic Landriot
                                       -----------------------------------------
                                       Name: Frederic Landriot
                                       Title: Assistant Vice President

<PAGE>

                                   COBANK, ACB

                                   By: /s/ S. Richard Dill
                                       -----------------------------------------
                                       Name: S. Richard Dill
                                       Title: Vice President

<PAGE>

                                   UNION BANK OF CALIFORNIA, N.A.

                                   By: /s/ Peter Thompson
                                       -----------------------------------------
                                       Name: Peter Thompson
                                       Title: Vice President

<PAGE>

                                   U.S. BANK NATIONAL ASSOCIATION

                                   By: /s/ Janet E.Jordan
                                       -----------------------------------------
                                       Name: Janet E. Jordan
                                       Title: Vice President

<PAGE>

                                   NATEXIS BANQUE POPULAIRES

                                   By: /s/ Nicolas Regent
                                       -----------------------------------------
                                       Name: Nicolas Regent
                                       Title: Vice President Multinational

                                   By: /s/ Pieter J. van Tulder
                                       -----------------------------------------
                                       Name: Pieter J. van Tulder
                                       Title: Vice President And Manager
                                              Multinational Group

<PAGE>

                                   TRANSAMERICA BUSINESS CAPITAL CORPORATION

                                   By:
                                       -----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                   CITY NATIONAL BANK

                                   By: /s/ Robert Louk
                                       -----------------------------------------
                                       Name: Robert Louk
                                       Title: Vice President

<PAGE>

                                   RZB FINANCE LLC

                                   By:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                   By:
                                       -----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                   BANK OF THE WEST

                                   By: /s/ Danny Flores
                                       -----------------------------------------
                                       Name: Danny Flores
                                       Title: Syndications Officer

<PAGE>

                                   PREFERRED BANK

                                   By: /s/ Walt Duchanin
                                       -----------------------------------------
                                       Name: Walt Duchanin
                                       Title: Executive Vice President

<PAGE>

                                   BANK LEUMI USA

                                   By: /s/ Jacques V. Delvoye
                                       -----------------------------------------
                                       Name: Jacques V. Delvoye
                                       Title: Vice President

<PAGE>

                                     ANNEX A
                                   SALE ASSETS

1.   Common stock of Henry Lee Company and all of its assets and liabilities,
     including accounts receivable, inventory, fixtures and equipment, and
     operating leases. There is no owned real estate. The principal leased real
     estate is located at: (i) 3301 N.W. 125th Street, Miami, FL, Lots 158
     through 172 and lots 173 through 176; (ii) 3305 N.W. 125th Street, Miami,
     FL, Lots 177 through 179; and (iii) 11150 N.W. 32nd Avenue, Miami, FL.

2.   Assets and liabilities of Orlando Foodservice business including accounts
     receivable, inventory, fixtures and equipment, tradenames, and operating
     leases. There is no owned real estate. The principal leased real estate is
     located at 2450 Shrader Avenue, Orlando, FL.

3.   Assets and liabilities of nine operating Smart & Final stores in Florida
     including accounts receivable, inventory, fixtures and equipment, and
     operating leases. There is no owned real estate. The principal leased real
     estate is located at: (i) 8000 N.E. 5th Avenue, Miami, FL; (ii) 101 South
     State Road 7, Hollywood, FL; (iii) 3333 North State Road 7, Lauderdale
     Lakes, FL; (iv) 2299 S.W. 8th Street, Miami, FL; (v) 1661 Gulf-to-Bay
     Boulevard, Clearwater, FL; (vi) 3131 Fourth Street, St. Petersburg, FL;
     (vii) 5600 West Flagler Street, Miami, FL; (viii) 2508 North Roosevelt
     Boulevard, Key West, FL; and (ix) 2535 North Federal Highway, Ft.
     Lauderdale, FL (which is also a synthetic lease property).

4.   Residual collateral interest in three synthetic lease properties: (i) a
     freezer facility located at 2850 NW 120th Terrace, Miami, FL; (ii) a 1.38
     acre parking lot located at N.W. 125th Street and 32nd Avenue, Miami, FL;
     and (iii) a store property located at 2535 North Federal Highway, Ft.
     Lauderdale, FL.

<PAGE>

                                     ANNEX B
                              CLOSED FLORIDA STORES

1.   Assets and liabilities of seven non-operating Smart & Final store
     properties in Florida including any residual accounts receivable,
     inventory, fixtures and equipment, and operating leases. There is no owned
     real estate. The leased real estate is located at: (i) 18351 NW 27th
     Avenue, Carol City, FL; (ii) 775 West 49th Street, Hialeah, FL; (iii) 7500
     West Commercial Blvd., Lauderhill, FL; (iv) 8746 Bird Road, Miami, FL; (v)
     12955 Kendall Drive, Miami, FL; (vi) 11350 Pines Boulevard, Pembroke Pines;
     and (vii) 2020 66th Street North, St. Petersburg, FL.<PAGE>

                                                                      Exh. 10.37

                                                               EXECUTION VERSION

                      FIRST SUPPLEMENT TO CONSENT, WAIVER,
                             COLLATERAL RELEASE AND
                           AMENDMENT AGREEMENT NO. 5A

     This First Supplement to Consent, Waiver, Collateral Release and Amendment
Agreement No. 5A, dated as of September 5, 2003 (this "Supplement"), is among
the Persons that have executed this Supplement (the "Parties"), and supplements
that certain Consent, Waiver, Collateral Release and Amendment Agreement No. 5A,
dated as of September 3, 2003 (the "Agreement") among the Parties. Capitalized
terms used, but not defined, in this Supplement are used as defined in the
Agreement.

                                    RECITALS

     A. In connection with the Lessee's sale of the Sale Assets to GFS and
certain of its subsidiaries, Section 11.2(d) of the Lease requires the Lessee to
deposit with the Owner Trustee the greater of (i) the net cash proceeds from the
sale of the Florida Properties, which would equal approximately $13 million, or
(ii) the portion of the Termination Value attributable to the Florida
Properties, plus the Prepayment Fee attributable to the Florida Properties,
which would equal approximately $16-17 million.

     B. The Lessee has requested that the Lenders and the Holder grant a waiver
allowing the Lessee to deposit the gross sale proceeds, which equal $14,340,000,
in lieu of the amount described in clause (ii) of Recital A, and the Majority
Secured Parties desire to grant such a waiver, subject to the terms and
conditions of this Supplement.

     NOW, THEREFORE, for good and valuable consideration received, the Parties
agree as follows.

     1. Waivers. The Majority Secured Parties waive, in connection with the sale
of the Florida Properties only, the requirement in Section 11.2(d) of the Lease
that the Lessee deposit with the Owner Trustee the greater of (i) the net cash
proceeds from the transfer of the Florida Properties or (ii) the portion of the
Termination Value attributable to the Property, plus the Prepayment Fee
attributable to the Florida Properties and allow the Lessee instead to deposit
with the Owner Trustee $14,340,000, which is the gross purchase price Lessee
will receive from the sale of the Florida Properties;

     2. Lessee's Agreements and Acknowledgments. Lessee acknowledges and agrees
to all matters approved or waived by the Majority Secured Parties in Section 1
of this Supplement and further acknowledges that the foregoing consents and
waivers do not constitute a waiver of the Prepayment Fee that may be due if the
Florida Properties are not replaced within the time period specified in the
Agreement and that the amount to be deposited with the Trustee under this
Supplement does not include any fees payable to the Secured Parties under the
Agreement or this Supplement.

     3. Conditions Precedent. The effectiveness of this Supplement is subject to
the satisfaction of each of the following conditions precedent.

<PAGE>

          (a) Certain Documents. The Agent shall have received all of the
following, in form and substance satisfactory to the Agent:

               (i) Consent of Required Secured Parties. The Majority Secured
Parties shall have executed and delivered this Supplement; and

               (ii) Additional Information. Such additional documents,
instruments and information as the Agent may reasonably request to effect the
transactions contemplated hereby.

          (b) Fees. In consideration of the waiver granted under this
Supplement, (i) each A-2 Lender and each B Lender who executes and delivers this
Agreement by 5:00 p.m. (EDT) on September [8], 2003 shall have received an
amendment fee of 0.05% of its Commitment, and (ii) the Holder shall have
received an amendment fee of 0.05% of its Holder Commitment if it executes and
delivers this Agreement by the same time.

          (c) Representations and Warranties. The representations and warranties
contained in this Supplement and in the Lease shall be true and correct as of,
and as if made on, the date hereof (except for those that by their terms
specifically refer to an earlier date, in which case such representations and
warranties shall be true and correct as of the earlier date).

          (d) Corporate Proceedings Satisfactory. All corporate proceedings
taken in connection with the transactions contemplated by this Supplement and
all other agreements, documents and instruments executed or delivered pursuant
to it, and all legal matters incident thereto, shall be satisfactory to the
Agent.

          (e) No Lease Default or Lease Event of Default. No Lease Default or
Lease Event of Default shall have occurred and be continuing after giving effect
to this Supplement.

     4. Representations and Warranties. Each Credit Party represents and
warrants to the Agent and the Secured Parties that, as of the date of and after
giving effect to this Agreement, (a) the execution, delivery and performance of
this Supplement and all other documents executed or delivered in connection
herewith have been authorized by all requisite corporate action on the part of
each Credit Party and will not violate any Credit Party's certificate of
incorporation or bylaws, (b) all representations and warranties set forth in the
Lease and in any other Operative Agreement are true and correct as if made again
on and as of such date (except those, if any, that by their terms specifically
relate only to an earlier date, in which case such representations and
warranties are true and correct as of the earlier date), (c) no Lease Default or
Lease Event of Default has occurred and is continuing, and (d) the Lease (as
amended by the Agreement and this Supplement) and all other Operative Agreements
are and remain legal, valid, binding and enforceable obligations in accordance
with their terms.

     5. Survival of Representations and Warranties. All representations and
warranties made by any Credit Party in this Supplement or any other Operative
Agreement shall survive the execution and delivery of this Supplement and the
other Operative Agreements, and no investigation by the Agent or the Secured
Parties, or any closing, shall affect the representations and warranties or the
right of the Agent and the Secured Parties to rely upon them.

                                       2

<PAGE>

     6. Costs and Expenses. The Lessee shall pay on demand all reasonable costs
and expenses of the Agent (including the reasonable fees, costs and expenses of
counsel to the Agent) incurred in connection with the preparation, execution and
delivery of this Supplement.

     7. Governing Law. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO
CONFLICT-OF-LAWS PRINCIPLES.

     8. Execution. This Supplement may be executed in any number of counterparts
and by different Parties on separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same instrument. A Party's delivery of an executed
counterpart of this Supplement by telecopier shall be effective as delivery of a
manually executed counterpart of this Supplement.

     9. Limited Effect. This Supplement relates only to the specific matters it
covers, shall not be considered to be a waiver of any other rights any Secured
Party may have under the Operative Agreements, and shall not be considered to
create a course of dealing or to otherwise obligate any Secured Party to grant
similar waivers or execute any amendments under the same or similar
circumstances in the future.

     10. Ratification By Guarantors. Each Guarantor consents to this Supplement,
and each Guarantor (other than Henry Lee Company) acknowledges that its guaranty
remains in full force and effect without any modification.

     11. Certain Waivers. Each Credit Party agrees that none of the Financing
Parties shall be liable under a claim of, and waives any claim against any
Financing Party based upon, lender liability (including, but not limited to,
liability for breach of the implied covenant of good faith and fair dealing,
fraud, negligence, conversion, misrepresentation, duress, control and
interference, infliction of emotional distress, defamation and breach of
fiduciary duty) as a result of any discussions or actions taken or not taken by
any Financing Party on or before the date hereof, the discussions conducted
pursuant hereto, or any course of action taken by any Financing Party in
response thereto or arising therefrom. This Section 14 shall survive the
execution and delivery of this Agreement and the expiration or termination of
the Lease.

                            [Signature Pages Follow]

                                       3

<PAGE>

LESSOR:
Wells Fargo Bank Northwest, National Association,
as Owner Trustee under S&F Trust 1998-1

By: /s/ Val T. Orton
    ----------------------------------
Name: Val T. Orton
Title: Vice President

LESSEE:
Smart & Final Inc.

By: /s/ Richard N. Phegley               By:
    ----------------------------------       -----------------------------------
Name: Richard N. Phegley                 Name:
Title: Senior Vice President &                 ---------------------------------
       Chief Financial Officer           Title:
                                                --------------------------------

     [First Supplement to Consent, Waiver, Collateral Release and Amendment
                               Agreement No. 5A]

<PAGE>

A-2 LENDER, B LENDER AND AGENT:
Fleet Capital Corporation

By: /s/ Renay McLeish
    ----------------------------------
Name: Renay McLeish
Title: Vice President

A-2 LENDER:
GMAC Commercial Finance, LLC,
successor by merger to GMAC Business Credit, LLC

By: /s/ David W. Berry
    ----------------------------------
Name: David W. Berry
Title: Vice President

A-2 LENDER:
Cooperative Centrale Raiffeisen-Boerenleenbank B.A.
"Rabobank Nederland," New York Branch

By: /s/ Bradford F. Scott                By: /s/ Edward J. Peyser
    ----------------------------------       -----------------------------------
Name: Bradford F. Scott                  Name: Edward J. Peyser
Title: Executive Director                Title: Managing Director

A-2 LENDER:
Natexis Banques Populaires

By: /s/ Pieter J. van Tulder             By: /s/ Nicolas Regent
    ----------------------------------       -----------------------------------
Name: Pieter J. van Tulder               Name: Nicolas Regent
Title: Vice President And Manager        Title: Vice President Multinational
       Multinational Group

A-2 LENDER:
BNP Paribas

By: /s/ Sean T. Conlon                   By: /s/ Mitchell M. Ozawa
    ----------------------------------       -----------------------------------
Name: Sean T. Conlon                     Name: Mitchell M. Ozawa
Title: Managing Director                 Title: Managing Director

     [First Supplement to Consent, Waiver, Collateral Release and Amendment
                                Agreement No. 5A]

<PAGE>

B LENDER:
Transamerica Equipment Financial Services Corporation

By: /s/ James R. Bates
    ----------------------------------
Name: James R. Bates
Title: Vice President

     [First Supplement to Consent, Waiver, Collateral Release and Amendment
                               Agreement No. 5A]

<PAGE>

HOLDER:
Casino USA, Inc.

By: /s/ Etienne Snollaerts
    ----------------------------------
Name: Etienne Snollaerts
Title: Director

     [First Supplement to Consent, Waiver, Collateral Release and Amendment
                                Agreement No. 5A]

<PAGE>

GUARANTOR:
American Foodservice Distributors

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

GUARANTOR:
Smart & Final Stores Corporation

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

GUARANTOR:
Smart & Final Oregon, Inc.

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

GUARANTOR:
Port Stockton Food Distributors, Inc.

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President - Finance

GUARANTOR:
Henry Lee Company

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President - Finance

     [First Supplement to Consent, Waiver, Collateral Release and Amendment
                                Agreement No. 5A]

<PAGE>

GUARANTOR:
Amerifoods Trading Company

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

GUARANTOR:
Casino Frozen Foods, Inc.

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

GUARANTOR:
FoodServiceSpecialists.Com, Inc.

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

GUARANTOR:
Okun Produce International, Inc.

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

GUARANTOR:
HL Holding Corporation

By: /s/ Richard N. Phegley
    ----------------------------------
Name: Richard N. Phegley
Title: Senior Vice President &
       Chief Financial Officer

     [First Supplement to Consent, Waiver, Collateral Release and Amendment
                                Agreement No. 5A]

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