American Stores Company and Subsidiaries - Page 17

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          the right to take one week of paid vacation.  Following an                  
          employee's first year of continuous service, the plan operates              
          somewhat differently.  As of each January 1, an employee's                  
          vacation pay benefits are determined based on the next                      
          anniversary of his initial hire date.  This calculated amount is            
          referred to as the employee's "leave entitlement".  Only those              
          individuals continuously employed by petitioner for the 12-month            
          period ending on December 31 of each year obtain a leave                    
          entitlement.  The General Plan permits an employee to take his              
          entire leave entitlement as of January 1.  Thus, for example, an            
          employee who worked for petitioner since July 1, 1985, had the              
          right to take 1 week of vacation upon reaching July 1, 1986.  On            
          January 1, 1987, the same employee was able to take 2 weeks of              
          leave, since the employee was expected to have 2 years of service           
          by July 1, 1987.                                                            
               The following schedule reflects the leave entitlement                  
          available to employees under the General Plan:                              
                                      Salaried                                        
                         1 week after 1 year of service                               
                         2 weeks after 2 years of service                             
                         3 weeks after 5 years of service                             
                         4 weeks after 10 years of service                            
                         5 weeks after 20 years of service                            
                                       Hourly                                         
                         1 week after 1 year of service                               
                         2 weeks after 2 years of service                             







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Last modified: May 25, 2011