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					ALBERTSON’S NATIONAL RECLAMATION POLICY This policy is based upon guidelines established in the 1990 Joint Industry Report for Product Reclamation Centers (“JIR”) sponsored by FMI, GMA, NACDS, NAWGA, and NFBA. This Albertson’s National Reclamation Policy (“Reclamation Policy”) supercedes all prior Policy statements and agreements for Albertson’, Inc., and its affiliates and wholly owned subsidiaries (excluding Shaw’s Supermarkets, Inc., and Bristol Farms). Scope: This Reclamation Policy addresses the processing of damaged/unsaleable product for both national and Albertson’s Own Brands that are brought through our distribution system and linked to our Grocery, General Merchandise and Lobby departments. In addition, this Reclamation Policy also includes and introduces unique programs such as callbacks, resets, and manufacturer recalls that are processed through our reclamation centers. This Reclamation Policy applies to all Albertson’s operating banners and other retail formats developed by Albertson’s such as “albertsons.com” except for Shaw’s Supermarkets, Inc., and Bristol Farms which are excluded from this policy. I. Definitions: Unsaleables - Product removed from the primary distribution channel or determined to be unfit for the primary channel regardless of the reason. Types of unsaleables included in this Reclamation Policy include (but not limited to):  Unlabeled or mislabeled product  Improperly sealed product  Over/short weight or partially filled product  Broken glass  Crushed, dented, or collapsed product  Swollen cans  Manufacturer withdrawal  Moldy package  Rusted can  Leakers  Soiled, stained, sticky, etc.  Defaced  Expired product or date sensitive product such as over-the-counter drug items.  Spoiled or perishable frozen/refrigerated grocery Pre-Damage Direct Product Costs – Handling and storage costs that occur before damage is identified as an item moves through retail distribution. These costs include costs incurred at the warehouse, during transportation to the store, and at the store itself. Post-damage Handling Costs – Costs that typically occur after damage to the item has been identified and before it arrives at the reclamation center. These costs also include costs for handling items that have been identified as damaged in the warehouse. Reclamation Center Processing Costs – Handling and storage costs that occur as an item is processed through a reclamation center. Contained in this formula are major variables such as reclamation center efficiencies, type of product and processing chutes. II. A. Damage Program -- National Brands: Invoice Cost: Pre-Damage DPC: Post Damage Handling: Reclamation Center Costs: Operations Through Scan: Processing Chute: Based on Albertson’s Supplier list cost. Based on JIR guidelines (approximately 6% of the list cost) $.128 per item (JIR guideline) $.15 per item. (JIR guideline) Based upon Supplier disposition.

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Processing Chutes (national brands only, per item): Auto Donate: $.050 Auto Destroy: $.070 Auto Shipback: $.060 Center Option: $.040 Supplier Review/Hold $.120 Note: If the Supplier fails to select to a processing chute, it reverts to Albertson’s “Center Option” processing chute. B. Damage Program (Own Brands only): Invoice Cost: Based on Albertson’s Supplier list cost. Handling Fee: Supplier list cost plus 6% handling fee. Disposition: All products will be donated. Note: In an effort to address low cost providers, the total maximum reclamation processing charge, under the Auto Donate or Center Option damage processing chutes ONLY, will not exceed 130% of Supplier list cost. III. Callbacks/Guarantee Sale Program: Invoice Cost: Reclamation Center Costs: Based on Albertson’s Supplier list cost. Supplier list cost plus 6% handling fee.

All Callback/Guaranteed Sale Programs must be approved by Albertson’s category management group with a signed agreement. IV. Reset: Invoice Cost: Reclamation Center Costs: Based on Albertson’s Supplier list cost. Supplier list cost plus 6% handling fee.

All resets will be set up by Albertson’s category management group with a signed agreement listing the reset items and the Supplier responsible for billing and product disposition.

V. Manufacturer Recalls: Albertson’s Supplier list cost plus 6% handling fee. In addition to the reclamation center processing charge, an additional graduated charge is applied for recalls and market withdrawals: $12,000 if up to half of Albertson’s Divisions are involved. $24,000 if more than half of Albertson’s Divisions are involved. A 10% fee will be added if the recall notice is received after hours, between 4:00 PM and 7:00 AM Mountain Time. VI. Continuities: Handled under separate corporate agreement. VII. Swell Allowances: Swell allowances are not accepted and are replaced by this Reclamation Policy. VIII. Shipping, Invoicing and Warehousing: Shipping - All products shipped from the reclamation center for all programs will be at Supplier’s expense and shipped prepaid by Supplier or freight collect. Any special handling / shipping containers must be supplied by the Supplier. Supplier must contact the reclamation center in writing to make arrangements for disposition of product. Supplier pickup or return requires a preferred carrier and arrangements for pallet exchange at time of pickup. Proof of delivery for Supplier prepaid and freight collect shipments will be the responsibility of the Supplier. Shipment information will be supplied by Albertson’s upon written request from Supplier.

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Warehousing - All products, regardless of the program, will be held a maximum of 21 days from the date on the reclamation invoice. After the 21st day, all held products will be disposed of with no Supplier recourse. Invoicing – Reclamation invoices will be made available to the Supplier via 3rd Party Website @ www.cls.inmar.com. Albertson’s will deduct all invoiced amounts from an open accounts payable account. All inquiries regarding reclamation invoices must be made in writing not more that 120 days from the date of invoice. Any requested changes to a Supplier’s Reclamation Policy, disposition or contact information will take effect one period after approval by Albertson’s. If Supplier does not dispute the validity of any invoice within the 120-day period, Supplier waives its right to dispute such invoice. Note: Any changes or alteration of terms or language within this Policy will not be accepted. IX. Product Reviews / Count: Albertson’s holds its 3rd party contractor accountable by requesting random vendor audits on a quarterly basis. Any other onsite reviews by outside contractors are considered disruptive to the operation and are not permitted. Furthermore, off-site product counts will not be honored. An election to have products shipped to an outside third party will be categorized as “Supplier Review/Hold”. X. List 1 product returns: Product that is identified as “List 1” in the CFRs (section 1310.02(a)) will be handled in accordance with DEA regulations. This will require unique handling and/or destruction of product and will incur an additional charge separate from the normal damage/reset/recall fees as outlined above. List 1 items include, but are not limited to, products containing both pseudoephedrine and ephendrine hydrochloride as dictated by DEA guidelines. Please select a specific Processing Chute Option for the Damage/Unsaleable program and complete the Albertson’s National Reclamation Agreement form attached. Please note that your selection will be utilized by ALL divisions of Albertson’s. If no form is completed, all products will be disposed of at Albertson’s discretion and all applicable processing charges applied.

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NATIONAL RECLAMATION AGREEMENT The following establishes a set procedure for handling all damaged/unsaleable products for all Divisions of Albertson’s Inc. Please select a product Processing Chute Option for damaged/unsaleable goods, which are processed in our Reclamation Centers. COMPANY NAME: ADDRESS: CITY: PHONE: EMAIL: ST: FAX: ZIP:

DAMAGED/UNSALEABLE GOODS CHUTE SELECTION (select only one) (note: Does not apply to Own Brand vendors. See Pg 2, Section “B” of Policy for explanation) National Brands: Auto Donate ($.050) Auto Destroy ($.070) *Shipping Address: Center Option ($.040) Supplier Review/Hold ($.120) *Phone: *Fax:

Auto Ship back ($.060) (If selected, insert required (*) information below)

*Blanket Return Authorization No. Own Brand List cost plus 6%-auto donate only *Preferred Carrier: *Carrier Number: *Carrier’s UPS account number: Note: All Supplier review/hold products will be held for a maximum of 21 days. All products will be shipped prepaid by Supplier or freight collect. Any changes to a Supplier handling or billing National Reclamation Agreement form will take effect one period after approval by Albertson’s. If you do not return this form your product will be billed and handled according to the defaults in THIS RECLAMATION POLICY. Signature: Printed Name of Signatory: Title: UPC Manufacturer Code: Date: Please complete the above and return to: Albertson’s Inc. Attn: Gale Grant 701A South Sally Place Fullerton, CA 92831 Fax: 714/680-5486
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