UFCW LOCAL 7 COMPREHENSIVE OFFER OF SETTLEMENT TO KING SOOPERS AND CITY MARKET FOR ALL KING SOOPERS AND CITY MARKET MEAT AND RETAIL CONTRACTS OCTOBER

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1 UFCW LOCAL 7 COMPREHENSIVE OFFER OF SETTLEMENT TO KING SOOPERS AND CITY MARKET FOR ALL KING SOOPERS AND CITY MARKET MEAT AND RETAIL CONTRACTS OCTOBER 7, 2015 The Union reserves the right to correct, amend or otherwise modify any errors in this counter proposal. Any hourly pay raises, health and welfare as well as pension contribution changes shall be effective retroactively to the 2015 contract expiration date. TERMS OF OFFER: 1. TENTATIVE AGREEMENT(S): All items agreed to date. 2. LETTERS OF AGREEMENT: Retain current Letters of Understanding as tentatively agreed by the parties subcommittee. 3. TERM OF AGREEMENT: 3 year agreement. 4. STATEWIDE ACCRETION: Within the State of Colorado, any new stores opened by the Employer shall be accreted and shall be covered by the terms of this agreement. 5. APPENDIX A : Rate Determination: Effective upon the expiration of the 2015 contract, current employees will enter the newly revised wage scales in the following manner: Employees making less than the new entry rate per hour will immediately upon ratification receive the new entry rate per hour retroactive to the expiration of the 2015 agreement. Employees whose current wage is not found on the newly negotiated wage scale and between the new entry rate and the new top rate will be moved to the next higher wage rate from their current pay rate, and they will be required to work in that step for the designated period of time. Employees whose wage is found in the newly agreed wage scale will move to the same rate in the newly negotiated wage scale and shall receive credit for the hours worked and will progress to the next wage step after finishing the balance of hours. 6. DEFINITION OF CLASSIFICATIONS: In the Clerk Agreements, delete the definition for Courtesy Clerks, GM/Non-Food Clerks and Salad Bar Clerks and substitute the following new classification entitled Guest Service Clerks. Existing GM/Non-Food Clerks, Delivery Driver, Teleshopper Clerks, Salad Bar Clerks and Floral Clerks shall be moved to the Customer Service Clerk classification as provided above in the rate determination provision. 1

2 Guest Service Clerk. A Guest Service Clerk s duties shall include duties customarily assigned to courtesy clerks; the pricing, handling, displaying, selling and stocking of those items generally considered as non-food, general merchandise, home side or drug merchandise; all work in conjunction with the operation of the fuel center without restriction including, but not limited to, the stocking, handling and checking of food items within the fuel center; the operation of the currency booth and customer service counter; all work associated with the salad bar except any higher-rated employee in either the Retail Clerks or Meat Cutters Agreements may perform work in the salad bar; all work in the floral department; delivery driver work as assigned; and home shop/teleshop work as assigned. 7. WEEKEND PREMIUM: The premium rate for work performed on Saturday shall be one dollar ($1.00) plus the employee s regular straight-time pay. 8. SUNDAY PREMIUM: All hours worked on Sunday shall be paid at time and one-quarter. 9. NIGHT PREMIUM: A premium of one dollar $1.00 per hour shall be paid for all work performed between the hours of 12:00 midnight and 6:00 am to all employees. 10. VACATION: All meat bargaining unit employees are eligible for pro-rata vacation at termination. 11. DIGNITY AND RESPECT: All unit employees have the right to be treated with respect and to be allowed to perform their jobs with dignity. In the event that the employer fails to comply with this provision, an employee will be eligible to be compensated for the loss of dignity and/or respect. The Employer and the Union agree that each will fully comply with the applicable laws and regulations regarding discrimination against any employee, or applicant for employment, because of such person s race, religion, color, national origin, sex, age or gender identity. An employee that is no longer able to perform his or her job assignment because of physical disability or injury may be reassigned to a position that he or she is able to perform. In such circumstance, the employee will retain the wage rate and progression of the classification they were in prior to the disability or injury except in the case of a promotion in which case the person will be promoted to the new classification and wage rates. 12. UNION REPRESENTATIVE VISITATION: (City Market) The President of the Union and/or designee, and the Business Representative thereof, shall have the right of entering the premises of the Employer for the purpose of interviewing employees in such a way as to not interfere with the service of the Employer. 13. NO STRIKE OR LOCKOUT: During the life of this Agreement, there shall be no lockout, strike, picketing, boycotting, stoppage of work, anti-company or anti-union publicity or other economic action of whatsoever nature, against the Company or the Union. 14. HEALTH AND WELFARE: King Soopers Store No. 86 shall be included in the Rocky Mountain UFCW Unions and Employers Health Benefit Plan. Disability benefit shall be increased to $

3 Restoration of the pre-2012 deductible levels. At the conclusion of the contracts the reserve level shall equal IBNR+3.5 months. All employees shall become eligible for health and welfare benefits under this contract the first day of the month following ninety (90) days of consecutive employment. 15. PENSION: For all employees hired on or after March 6, 2005, the Pension benefit shall increase to $30.00 per participant retroactive to the expiration of the 2015 contracts. Effective January 1, 2016, all Pension benefits for all employees shall increase to $35.00 per participant. Effective January 1, 2017, all Pension benefits for all employees shall increase to $40.00 per participant. In order to correct the courtesy clerk participation failure in the Rocky Mountain Plan, to amend the Plan retroactively to 1982 with respect to courtesy clerk participation and pension credit accrual, by substituting a one year service requirement in place of the current time-of-contribution requirement for participation and benefit credit accrual. The rule of eighty ( 80 ) with a minimum age of fifty-three (53) effective upon ratification. Retirees shall receive a thirteenth check in December of 2015, 2016, and LIQUOR STORE CLERKS: The Union agrees to withdraw with prejudice and without back pay all current pending grievances regarding the classification and rate of pay for work performed in the liquor store. Effective the date of expiration of the 2015 contract, a Liquor Store Clerk Classification shall be paid as set forth in Appendix A. 17. MINIMUM WAGE: Effective upon ratification, in the event the municipal, state, or federal minimum wage increases during the effective term of this Agreement to a rate greater than the starting rate, the new rate will be at least twenty cents ($.20) above the minimum wage and each rate above will be at least ten cents ($0.10) higher than the previous rate in the wage progression schedule. There will be no backfilling of hours. 18. DEPARTMENT MANAGER BONUSES: The Company shall apply the same department manager bonus program to bargaining unit employees that it administers in its non-union facilities. 19. PROFIT SHARING: See Attached Plan. APPENDIX A WAGE SCALES CLASSIFICATION September 12, 2015* September 11, 2016* September 17, 2017* All Purpose/Nutrition Clerk First 960 hours worked $11.80 $12.39 $13.02 Next 960 hours worked $12.55 $13.18 $13.84 Next 960 hours worked $14.00 $14.70 $

4 Next 960 hours worked $14.80 $15.54 $16.32 Next 960 hours worked $15.80 $16.59 $17.43 Thereafter $18.81 $19.81 $20.81 Certified Pharmacy Technicians First 960 hours worked $12.55 $13.19 $13.83 Next 960 hours worked $13.25 $13.93 $14.60 Next 960 hours worked $14.43 $15.17 $15.91 Next 960 hours worked $14.80 $15.56 $16.31 Next 960 hours worked $18.06 $18.98 $19.91 Thereafter $19.56 $20.56 $21.56 Bakery and Liquor Clerk First 520 hours worked $10.50 $11.13 $11.76 Next 1040 hours worked $11.00 $11.66 $12.32 Next 1040 hours worked $11.50 $12.19 $12.88 Next 1040 hours worked $12.00 $12.72 $13.44 Next 1040 hours worked $12.50 $13.25 $14.00 Next 1040 hours worked $14.00 $14.84 $15.68 Next 1040 hours worked $15.50 $16.43 $17.36 Next 1040 hours worked $16.00 $16.96 $17.92 Thereafter $16.69 $17.69 $18.69 Guest Service Clerk First 960 hours worked $11.55 $12.29 $13.03 Next 960 hours worked $12.00 $12.77 $13.54 Next 960 hours worked $12.78 $13.60 $14.42 Next 960 hours worked $14.30 $15.22 $16.14 Next 960 hours worked $14.70 $15.64 $16.59 Thereafter $15.58 $16.58 $17.58 Plant/Floral Manager $19.56 $20.56 $21.56 Plant/Floral Manger in Hub Store $20.56 $21.56 $22.56 Service or Grocery Manager $21.56 $22.56 $23.56 Head Clerk & Night Crew Foreman $20.56 $21.56 $22.56 Produce Manager $20.56 $21.56 $22.56 General Merchandise Manager $20.56 $21.56 $

5 Assistant Bakery Manager $19.56 $20.56 $21.56 Bakery Manager $20.56 $21.56 $22.56 CLASSIFICATION September 12, 2015* September 11, 2016* September 17, 2017* Meat Cutters First 960 hours worked $12.86 $13.47 $14.08 Next 960 hours worked $13.73 $14.38 $15.03 Next 960 hours worked $14.62 $15.31 $16.01 Next 960 hours worked $15.51 $16.25 $16.98 Next 960 hours worked $16.39 $17.17 $17.95 Thereafter $21.05 $22.05 $23.05 Butcher Block Clerk First 960 hours worked $12.50 $13.20 $13.89 Next 960 hours worked $13.00 $13.72 $14.45 Next 960 hours worked $14.50 $15.31 $16.12 Next 960 hours worked $16.00 $16.89 $17.78 Next 960 hours worked $16.50 $17.42 $18.34 Thereafter $17.94 $18.94 $19.94 Meat Wrapper First 960 hours worked $12.50 $13.25 $13.95 Next 960 hours worked $13.00 $13.78 $14.51 Next 960 hours worked $14.50 $15.37 $16.18 Next 960 hours worked $16.00 $16.96 $17.86 Next 960 hours worked $16.50 $17.49 $18.41 Thereafter $17.94 $18.94 $19.94 Deli Clerk First 520 hours worked $10.50 $11.13 $11.76 Next 1040 hours worked $11.00 $11.66 $12.32 Next 1040 hours worked $11.50 $12.19 $12.88 Next 1040 hours worked $12.00 $12.72 $13.44 Next 1040 hours worked $12.50 $13.25 $14.00 Next 1040 hours worked $14.00 $14.84 $15.68 Next 1040 hours worked $15.50 $16.43 $17.36 Next 1040 hours worked $16.00 $16.96 $17.92 Thereafter $16.69 $17.69 $

6 Deli and Restaurant Chefs $18.19 $19.19 $20.19 Cheese Steward $19.56 $20.56 $21.56 Snack Bar/Meat Clean-Up First 520 hours of work $9.50 $10.36 $11.22 Second 520 hours of work $10.00 $10.90 $11.81 Thereafter $11.00 $12.00 $13.00 Catering Clerk First 520 hours of work $9.50 $10.36 $11.22 Second 520 hours of work $10.00 $10.90 $11.81 Thereafter $11.00 $12.00 $13.00 Meat Department Manager $22.98 $23.98 $24.98 Assistant Meat Department Manager $21.43 $22.43 $23.43 Butcher Block Manager $21.30 $22.30 $23.30 Deli Department Manager $22.98 $23.98 $24.98 Assistant Deli Department Manager $19.71 $20.71 $21.71 Catering Captain $16.43 $17.43 $18.43 *And conforming dates for Agreements with a different anniversary date. 6