ASSET PURCHASE AGREEMENT





                                     BETWEEN





                  THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC

                        (together with its subsidiaries)





                                       and





                               OCEAN LOGISTICS LLC





                                       and





          for the limited purposes set forth herein and as of guarantor





                          C & S WHOLESALE GROCERS, INC.





                            Dated as of June 27, 2005









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                                TABLE OF CONTENTS



                                                                            Page



ARTICLE I CONVEYANCE OF THE ACQUIRED ASSETS..................................2

   Section 1.1       Acquired Assets.........................................2

ARTICLE II PURCHASE PRICE....................................................3

   Section 2.1       Purchase Price; Payment.................................3

ARTICLE III LIABILITIES......................................................4

   Section 3.1       Excluded Liabilities....................................4

   Section 3.2       Assumed Liabilities.....................................4

   Section 3.3       Sale of Assets Under Section 4204 of ERISA..............5

   Section 3.4       Baltimore Drivers.......................................7

ARTICLE IV REPRESENTATIONS AND WARRANTIES....................................7

   Section 4.1       Representations and Warranties of Seller................7

   Section 4.2       Representations and Warranties of Purchaser............12

ARTICLE V EMPLOYEE MATTERS..................................................14

   Section 5.1       Responsibility for Employees...........................14

   Section 5.2       Offers of Employment...................................14

   Section 5.3       Freshtown and Edison...................................14

ARTICLE VI CONDITIONS TO CLOSING............................................15

   Section 6.1       Conditions to Obligations of Purchaser.................15

   Section 6.2       Conditions to Obligations of Seller....................16

ARTICLE VII CLOSING.........................................................16

   Section 7.1       The Closing............................................16

   Section 7.2       Seller's Obligations...................................17

   Section 7.3       Purchaser's Obligations................................18

ARTICLE VIII CERTAIN ADDITIONAL COVENANTS...................................19

   Section 8.1       Further Assurances.....................................19

   Section 8.2       Reasonable Access......................................19

   Section 8.3       Inventory..............................................20

   Section 8.4       Non-Acquired Facilities Inventory......................20

   Section 8.5       Inventory Repurchase...................................21

   Section 8.6       Inventory Actual Cost Payment..........................21

   Section 8.7       Injunctions/Orders.....................................21

   Section 8.8       Conveyance Taxes.......................................21

   Section 8.9       Apportionments and Prepaid Expenses....................22

   Section 8.10      Allocation of Purchase Price...........................23

   Section 8.11      Obtaining Permits......................................23

   Section 8.12      Waivers................................................24

   Section 8.13      Non-Disturbance Agreements.............................24

   Section 8.14      Insurance..............................................24

   Section 8.15      Transition Fee.........................................25

   Section 8.16      Fair Market Price......................................25

   Section 8.17      IT Services............................................26

   Section 8.18      Exhibits...............................................26

   Section 8.19      Repairs................................................26



                                      -i-

<PAGE>



ARTICLE IX INDEMNIFICATION..................................................26

   Section 9.1       Survival...............................................26

   Section 9.2       Indemnification Provisions for Benefit of Purchaser....26

   Section 9.3       Indemnification Provisions for Benefit of Seller.......28

   Section 9.4       Procedures Relating to Indemnification.................29

   Section 9.5       Time Limitations.......................................29

   Section 9.6       General Indemnification Provisions.....................29

ARTICLE X TERMINATION.......................................................30

   Section 10.1      Termination............................................30

   Section 10.2      Effect of Termination..................................32

ARTICLE XI OPERATIONS PENDING CLOSING.......................................32

   Section 11.1      Pending Operations.....................................32

ARTICLE XII DEFINITIONS.....................................................33

   Section 12.1      Certain Defined Terms..................................33

ARTICLE XIII MISCELLANEOUS..................................................38

   Section 13.1      Entire Agreement.......................................38

   Section 13.2      Expenses...............................................38

   Section 13.3      No Recording of Agreement..............................39

   Section 13.4      No Brokers.............................................39

   Section 13.5      Amendments.............................................39

   Section 13.6      Notices................................................39

   Section 13.7      Binding Effect; C&S Guaranty...........................40

   Section 13.8      Counterparts; Facsimile Signature......................41

   Section 13.9      No Third-Party Beneficiaries...........................41

   Section 13.10      Severability..........................................41

   Section 13.11      Headings..............................................41

   Section 13.12      Bulk Sales Indemnity..................................41

   Section 13.13      Public Announcement...................................41

   Section 13.14      Governing Law.........................................42

   Section 13.15      Dispute Resolution....................................42







                                      -ii-

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                                    EXHIBITS



Exhibit A List of Equipment Assets [CONFIDENTIAL]



Exhibit A-1 Equipment Assets and Value [CONFIDENTIAL]



Exhibit A-2 Tractors and Trailers [CONFIDENTIAL]



Exhibits B-1 and B-2 Assumed Contracts with corresponding amount of fixed

                     Assumed Liabilities [CONFIDENTIAL]



Exhibit B-3 Material Assumed Contracts [CONFIDENTIAL]



Exhibit C Legal Description of the Dunmore Owned Facility



Exhibit C-1, C-2 and

        C-3  Legal Descriptions of the Leased Facilities



Exhibit C-4 Legal Description of the New Orleans Owned Facility



Exhibit C-5 Legal Description of the Baltimore Owned Facility



Exhibit D Form of Assignment



Exhibit E New Orleans Sublease



Exhibit F Leased Equipment



Exhibit G-1, G-2 and

        G-3 Special Warranty Deeds for the Dunmore Owned, New Orleans

            and Baltimore Owned Facilities



Exhibit H Permits and Licenses



Exhibit I Supply Agreement [FILED SEPARATELY]



Exhibit J Lease Documents







                                     -iii-

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                                    SCHEDULES



Schedule 1.1             Excluded Assets

Schedule 4.1(e)(vi)      Written Notice of Non-Compliance

Schedule 4.1(e)(vii)     Written Notice of Repairs

Schedule 4.1(h)          Necessary Repairs

Schedule 4.1(j)          Litigation

Schedule 4.1(l)          Consents, Approvals, etc. [CONFIDENTIAL]

Schedule 4.1(n)          Violations [CONFIDENTIAL]

Schedule 4.1(o)          Environmental Issues [CONFIDENTIAL]

Schedule 4.1(p)(i)(A)    Affected Employees (with department, hiring date

                         and salary) [CONFIDENTIAL]

Schedule 4.1(p)(i)(B)    Employment agreements, severance agreements and

                         severance plans with respect to Affected Employees

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