2620 Elm Hill Pike, Nashville, TN 37214

KROGER ACCOUNTING CENTER

2620 Elm Hill Pike, Nashville, TN 37214

January 21, 2013

To: Kroger Manufacturing Supplier or Broker

Re: EDI Communications

Kroger continues to look at ways to reduce cost to our customers and drive costs out of the supply chain.Since EDI is crucial to driving cost out of the supply chain, The Regional Accounting Service Center (RASC) will begin expanding this cost reduction effort to all suppliers. Effective March 11, 2013 RASC will implement a $200.00 manual handling fee for each invoice not returned via EDI for a purchase order transmitted via EDI. The noncompliance assessment will be applied against payment to help offset the cost of the manual paper process. In addition, Vendor will have 90 days from Kroger's receipt of goods to successfully transmit an EDI invoice for that transaction. Any invoices not transmitted within the 90-day period (manually or using EDI) will be subject to an additional $200 late invoice fee per transaction. Your acceptance of a purchase order from Kroger after March 11, 2013 will signify your consent to these terms.

Our Kroger Manufacturing suppliers/brokers must be able to receive Kroger purchase orders electronically and the supplier must return the invoice electronically for requirement to be satisfied. Suppliers must become EDI compliant with all plants for which they do business with. You have 60 days from the receipt sent date of this letter to be EDI compliant.

Each plant you add after your initial60 days set up compliancy must be ready for EDI 30 days after the plant is added to to your account to send EDI invoices on those Purchase Orders.

Overall, it is the goal of The Kroger Co. to continue to remove unnecessary costs from the supply chain.

There are many solutions available for your EDI selections. Currently we use several solutions. One is a low cost Internet solution with EDICT systems. Their web site contains information, pricing and a demo for your review or you can call them at (800) 443-3428. Another solution is Sterling Commerce. Their number is (800) 299-4031. A complete list of software and network suppliers can be found on Uniform Code Council’s web site at

Kroger Manufacturing EDI Specifications can be found on the Internet at

We look forward to a strong EDI partnership with your company in the near future. Thank you in advance for you cooperation and support in this key industry initiative.

Sincerely,

Radhika Jablonski – Area Manager, Manufacturing Payables