August 31, 2011

Re: IMPORTANT CHANGE TO PAMIDA ROUTING

Dear Vendor:

Beginning with purchase orders approved on or after October 3, 2011, Pamida is transitioning to the use of a delivery date (one arrival date) rather than a ship window. Orders will now only specify a required delivery date at our DC’s. We will no longer specify when the goods are to ship, only when the goods need to arrive at our distribution centers. We will not make any changes to existing orders so there may be a time when you will have orders showing the existing shipping windows and the new delivery date.

When orders are written, we will take into account the order processing time you need from the time you receive the order until the time it is ready to ship as well as the estimated transit time to our distribution centers.

Please verify the order processing times (time needed from the day you receive the order until ready to ship) you require for every shipping location sending product to Pamida. In the past we asked for this information for every item on the new item set up form. We will now only accept one lead time per vendor number (shipping location). Please send the lead time information for those locations you use to ship to Pamida to your Category Manager and they will ensure the system is updated. We need to have all of your lead times verified within 30 days of receipt of this letter. Keep in mind that our objective is to ultimately leverage our business with the vendors that can consistently deliver high quality merchandise in the shortest amount of time.

Collect orders: To ensure Pamida’s Collect orders are to our DC’s on the PO Arrival Date, you will need to consider how your freight has historically moved. The number of days transit time listed below are averages only. Please adjust based on your historical transit times to our DC’s.

·  If your orders usually move via the Power Lane (both DC’s orders are picked up and shipped together to one of our DC’s), your product ready date must be 9 days prior to the PO Delivery Date and you must request routing at least 3 business days prior to your expected ready date.

·  If your orders usually move FTL-Full Trailer Load, your product ready date must be 6 days prior to the PO Delivery Date and you must request routing at least 3 business days prior to your expected ready date.

·  If your orders usually move LTL-Less Than Trailer Load, your product ready date must be 7 days prior to the PO Delivery Date and you must request routing at least 3 business days prior to your expected ready date.

·  If your orders usually move FedEx Small Package, your product should ship 5 days before the PO Delivery Date.

·  If your orders usually move through our CA or NJ Consolidator, your product ready date must be 8 days prior to the PO Delivery Date and you must request routing at least 3 business days prior to your expected ready date.

·  If your orders are POE (US arrival port of entry), your product must be available at the US Port of Entry 12 days prior to the PO Delivery Date and you must notify the Pamida Import Department 7 days prior the vessel estimated time of arrival.

Mode / Lead Time from Ready Date to Delivery Date / Date Routing Should Be Requested
Power Lane* / 9 Days / 3 business days prior to ready date
FTL-Full Trailer Load / 6 Days / 3 business days prior to ready date
LTL – Less Than Trailer Load / 7 Days / 3 business days prior to ready date
FedEx Small Package / 5 Days / N/A
Consolidator / 8 Days / 3 business days prior to ready date
POE – US Port Of Entry / 12 Days** / 7 business days prior to arrival

*Power Lane is when the orders for both DC’s are shipped to one DC. Pamida ships it to the other DC.

**Lead time for POE orders is from available date at the US arrival port to delivery date at our DC

Import Orders – The only change in regard to import orders will be in the verbiage on the PO. Rather than saying Ship Window, it will now say Delivery Window. This is a label change only. Goods still must be delivered to either the FOB port or CFS facility within the given delivery window.

Prepaid LIVE delivery appointments must made at least 5 business days before PO Arrival Date. See DC contact information below:

Distribution Center Name and Address / DC # / Contact
Pamida DC #450
185 N. Mount Zion Road
Lebanon, IN 46052 / 0450 / Delivery Appointments-(765) 483-5429 or FAX- (765) 483-5420
Scheduled live unloads Monday – Friday 6:00am -1:00pm. Approved Carrier’s Drop Trailers allowed anytime 24/7
Pamida DC #410
c/o Shopko DC
10808 S. 132nd Street Omaha, NE 68138 / 0410 / Delivery Appointments-(402) 331-6550 ext. 3006 or FAX-(402) 331-8772Scheduled live unloads Tuesday –Friday 6:00am – 1:00pm. Approved Carrier’s Drop Trailers allowed anytime 24/7

If for any reason you are not able to make the delivery date specified on the order, you must contact the Category Manager or the Allocation and Replenishment Manager to request an extension. If you do not contact Pamida for a change immediately upon receipt of the order, we will view this as an acceptance of the order and you will be required to deliver this order in full on the delivery date.

We will attempt to bring every order in on the date specified but there may be times at our discretion that we may alter the delivery date slightly. We will try to bring these goods in earlier than the delivery date shown on the order.

All compliance requirements will still apply. Failure to meet these conditions may result in a chargeback.

We appreciate your cooperation with this change. Please direct any questions to your Pamida Category Manager or your Allocation and Replenishment Manager.

Sincerely,

Timothy J. Flavin

Executive Vice President

Chief Merchandising Officer

Pamida Stores Operating Co., LLC