American Stores Company and Subsidiaries - Page 18

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                         3 weeks after 5 years of service                             
                         4 weeks after 12 years of service                            
                         5 weeks after 20 years of service                            
          The General Plan calculates years of service using the                      
          anniversary of an employee's date of hire (the anniversary date).           
          The plan uses an employee's job category (salaried or hourly                
          worker) as of January 1 of each year to calculate the amount of             
          the employee's leave entitlement for the calendar year.  Leave              
          entitlements generally must be used by the end of the calendar              
          year; no full week increments of leave may extend beyond that               
          time.  Moreover, employees do not receive compensation for the              
          portion of their leave entitlement which remains unused at the              
          end of the calendar year.                                                   
               Leave entitlement for employees covered by the General Plan            
          vests ratably over the 1-year period between successive                     
          anniversary dates.  Consequently, an employee's leave entitlement           
          as of January 1 normally includes both vested and nonvested                 
          portions.  The vested portion is coextensive with services which            
          have already been performed by the employee.  The nonvested                 
          portion of the leave entitlement will vest (on a weekly or                  
          monthly basis) as future services are performed by the employee.            
          Thus, an employee with an anniversary date of July 1 of a given             
          year will be vested in one-half of his vacation pay for that year           

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Last modified: May 25, 2011