American Stores Company and Subsidiaries - Page 22

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          year, it may continue into the next calendar year without                   
          forfeiture.)  As with the General Plan, the Star Markets Plan               
          calculates vacation pay benefits using an employee's rate of pay            
          in effect at the time the vacation is actually taken; vacation              
          pay is not premised on an employee's salary at the beginning of             
          the calendar year.                                                          
                    3.  The Acme Markets Plans                                        
               Acme Markets offers vacation pay benefits to certain union             
          employees.  The Acme Markets Plans' vacation season extends from            
          May 1 through September 30 of each year for the first and second            
          weeks of vacation, and May 1 through April 30 of the next                   
          calendar year for the third, fourth, and fifth weeks of vacation.           
          In contrast with the Star Markets Plan, employees covered by the            
          Acme Markets Plans vest ratably in a specified amount of leave              
          for each month or each week they work for Acme Markets between              
          May 1 of one calendar year and April 30 of the next year.  The              
          amount of leave in which an employee vests depends on the                   
          employee's length of continuous service with Acme Markets.  As of           
          May 1 of each year, an employee will be fully vested in the                 
          vacation pay he is expected to take during the vacation season              
          beginning on that date.                                                     
               All vacations under the Acme Markets Plans must be used                
          during the relevant vacation season; no vacation benefits accrue            








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Last modified: May 25, 2011