American Stores Company and Subsidiaries - Page 19

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          as of January 1.  The other half of the leave entitlement will be           
          nonvested at that time.                                                     
               Although the General Plan enables a covered employee to take           
          his entire leave entitlement anytime after January 1, if an                 
          employee leaves his job prior to reaching his anniversary date,             
          he must reimburse petitioner for any used portion of the                    
          nonvested leave entitlement.  Moreover, if a covered employee               
          retires or voluntarily terminates employment with unused leave              
          entitlement, petitioner will only pay the employee for the vested           
          leave entitlement.  The employee does not have a right to receive           
          payment for any unused nonvested leave entitlement.                         
               An employee receives vacation pay under the General Plan               
          equal to the salary he would normally receive when the vacation             
          is actually taken.  Vacation pay is not based on the employee's             
          salary at the beginning of the calendar year.                               
               2.  The Star Markets Plan                                              
               Star Markets provides vacation pay benefits to certain non-            
          union employees under a plan which differs from the General Plan.           
          Star Markets permits an employee to take 1 week of vacation after           
          1 year of continuous service, and 2 weeks of vacation after 2               
          years of continuous service.  The plan also permits employees               
          with 5 years or more of continuous service to take additional               
          vacation pay benefits.  The actual amount of vacation for which             

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Last modified: May 25, 2011