SUPERVALU Cost Change Policy

Effective Date: August 1, 2005

Cost Increases:

• All cost increases must be submitted on SUPERVALU’s Cost Change form a minimum of eight (8) weeks prior to the new cost effective date.

• All scheduled promotions must be price protected at the deal price through the end of the promotion.

• Supervalu reserves the right to purchase inventory at our discretion in advance of the price change effective date on all price increases/promotions.

• Any cost increases must be supported by the “SUPERVALU Manufacturer Price Increase Justification Form” (located on Internet: SVHarbor.com). This form is to be signed by a company officer, Vice President or higher.

• VMI suppliers should hold cost for 1.5 weeks for every one (1%) percent increase in cost, provide a check for this amount or allow a buy in. All exceptions must be approved by the SUPERVALU V.P. of Merchandising.

• Cost changes on commodities are exempt from SUPERVALU’s standard notification procedure and require only submission on SUPERVALU’s Cost Change form.

Cost Declines:

Floor stock protection must be paid on cost declines and will be taken on inventory on hand on the effective date of the decline.