Document:

exv10w3

Exhibit 10.3

QUALIFIED BORROWER GUARANTY

     UNCONDITIONAL GUARANTY OF PAYMENT (this “Guaranty”), is made as of October 15, 2009 by
AMB PROPERTY, L.P., a Delaware limited partnership (the “Guarantor”) for the benefit of
JPMORGAN CHASE BANK, N.A., as Administrative Agent and J.P. MORGAN EUROPE LIMITED, as
Administrative Agent and SUMITOMO MITSUI BANKING CORPORATION, as Administrative Agent
(collectively, the “Administrative Agent”) for the banks (the “Banks”) that are
from time to time parties to the Credit Agreement, dated as of October 15, 2009, among the
Borrower, the Initial Qualified Borrowers, the banks listed on the signature pages thereof,
JPMorgan Chase Bank, N.A., as Administrative Agent, and J.P. Morgan Securities Inc. and Sumitomo
Mitsui Banking Corporation, as Joint Lead Arrangers and Joint Bookrunners (the “Credit
Agreement”)

     Capitalized terms not otherwise defined in this Guaranty shall have the meanings ascribed to
them in the Credit Agreement.

WITNESSETH:

     WHEREAS, pursuant to the terms of the Credit Agreement, a Qualified Borrower may request that
the Banks make one or more loans (each, a “Loan”) to a Qualified Borrower, to be guaranteed
by Guarantor by this Guaranty and to be evidenced by Qualified Borrower Notes (collectively, the
“Note”), payable by the Qualified Borrower to the order of the Banks.

     WHEREAS, this Guaranty is the “Qualified Borrower Guaranty” referred to in the Credit
Agreement;

     WHEREAS, in order to induce the Administrative Agent and the Banks to make one or more Loans
to one or more Qualified Borrowers, and to satisfy one of the conditions contained in the Credit
Agreement with respect thereto, the Guarantor has agreed to enter into this Guaranty.

     NOW THEREFORE, in consideration of the premises and the direct and indirect benefits to be
derived from the making of the Loans by the Banks to Qualified Borrowers, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guarantor
hereby agrees as follows:

     1. Guarantor, on behalf of itself and its successors and assigns, hereby irrevocably,
absolutely, and unconditionally guarantees the full and punctual payment when due, whether at
stated maturity or otherwise, of all obligations of each and every Qualified Borrower now or
hereafter existing under the Notes (whether executed and delivered simultaneously herewith or
subsequently), or under any of the other Loan Documents (such obligations, whenever arising, being
the “Guaranteed Obligations”), and any and all reasonable costs and expenses (including,
without limitation, reasonable attorneys’ fees and disbursements) incurred by the Administrative
Agent in enforcing its rights under this Guaranty.

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     2. It is agreed that the obligations of Guarantor hereunder are primary and this Guaranty
shall be enforceable against Guarantor and its successors and assigns without the necessity for any
suit or proceeding of any kind or nature whatsoever brought by the Administrative Agent against the
relevant Qualified Borrower or its respective successors or assigns or any other party or against
any security for the payment and performance of the Guaranteed Obligations and without the
necessity of any notice of non-payment or non-observance or of any notice of acceptance of this
Guaranty or of any notice or demand to which Guarantor might otherwise be entitled (including,
without limitation, diligence, presentment, notice of maturity, extension of time, change in nature
or form of the Guaranteed Obligations, acceptance of further security, release of further security,
imposition or agreement arrived at as to the amount of or the terms of the Guaranteed Obligations,
notice of adverse change in such Qualified Borrower’s financial condition and any other fact which
might materially increase the risk to Guarantor), all of which Guarantor hereby expressly waives;
and Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of the
Guarantor hereunder shall in no way be terminated, affected, diminished, modified or impaired by
reason of the assertion of or the failure to assert by the Administrative Agent against such
Qualified Borrower or its respective successors or assigns, any of the rights or remedies reserved
to the Administrative Agent pursuant to the provisions of the Loan Documents. Guarantor hereby
agrees that any notice or directive given at any time to the Administrative Agent which is
inconsistent with the waiver in the immediately preceding sentence shall be void and may be ignored
by the Administrative Agent, and, in addition, may not be pleaded or introduced as evidence in any
litigation relating to this Guaranty for the reason that such pleading or introduction would be at
variance with the written terms of this Guaranty, unless the Administrative Agent has specifically
agreed otherwise in a writing, signed by a duly authorized officer. Guarantor specifically
acknowledges and agrees that the foregoing waivers are of the essence of this transaction and that,
but for this Guaranty and such waivers, the Banks would not make Loans and the Fronting Bank would
not issue Letters of Credit on behalf of any Qualified Borrower.

     3. Guarantor hereby waives, and covenants and agrees that it will not at any time insist upon,
plead or in any manner whatsoever claim or take the benefit or advantage of, any and all appraisal,
valuation, stay, extension, marshaling-of-assets or redemption laws, or right of homestead or
exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise
affect the performance by Guarantor of its obligations under, or the enforcement by the
Administrative Agent of, this Guaranty. Guarantor further covenants and agrees not to set up or
claim any defense, counterclaim, offset, set-off or other objection of any kind to any action, suit
or proceeding in law, equity or otherwise, or to any demand or claim that may be instituted or made
by the Administrative Agent other than the defense of the actual timely payment and performance by
the relevant Qualified Borrower of the Guaranteed Obligations hereunder; provided, however, that
the foregoing shall not be deemed a waiver of Guarantor’s right to assert any compulsory
counterclaim, if such counterclaim is compelled under local law or rule of procedure, nor shall the
foregoing be deemed a waiver of Guarantor’s right to assert any claim which would constitute a
defense, setoff, counterclaim or crossclaim of any nature whatsoever against Administrative Agent
or any Bank in any separate action or proceeding. Guarantor represents, warrants and agrees that,
as of the date hereof, its obligations under this Guaranty are not subject to any counterclaims,
offsets or defenses of any kind against the Administrative Agent, the Banks or the Fronting Bank.

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     4. The provisions of this Guaranty are for the benefit of the Administrative Agent on behalf
of the Banks and their successors and permitted assigns, and nothing herein contained shall impair
as between any Qualified Borrower and the Administrative Agent the obligations of such Qualified
Borrower under the Loan Documents.

     5. This Guaranty shall be a continuing, unconditional and absolute guaranty and the liability
of Guarantor hereunder shall in no way be terminated, affected, modified, impaired or diminished by
reason of the happening, from time to time, of any of the following, all without notice or the
further consent of Guarantor:

          (a) any assignment, amendment, modification or waiver of or change in any of the terms,
covenants, conditions or provisions of any of the Guaranteed Obligations or the Loan Documents or
the invalidity or unenforceability of any of the foregoing; or

          (b) any extension of time that may be granted by the Administrative Agent to any Qualified
Borrower, any guarantor, or their respective successors or assigns, heirs, executors,
administrators or personal representatives; or

          (c) any action which the Administrative Agent may take or fail to take under or in respect of
any of the Loan Documents or by reason of any waiver of, or failure to enforce any of the rights,
remedies, powers or privileges available to the Administrative Agent under this Guaranty or
available to the Administrative Agent at law, equity or otherwise, or any action on the part of the
Administrative Agent granting indulgence or extension in any form whatsoever; or

          (d) any sale, exchange, release, or other disposition of any property pledged, mortgaged or
conveyed, or any property in which the Administrative Agent and/or the Banks have been granted a
lien or security interest to secure any indebtedness of any Qualified Borrower to the
Administrative Agent and/or the Banks; or

          (e) any release of any person or entity who may be liable in any manner for the payment and
collection of any amounts owed by any Qualified Borrower to the Administrative Agent and/or the
Banks; or

          (f) the application of any sums by whomsoever paid or however realized to any amounts owing by
any Qualified Borrower to the Administrative Agent and/or the Banks under the Loan Documents in
such manner as the Administrative Agent shall determine in its sole discretion; or

          (g) any Qualified Borrower’s or the Guarantor’s voluntary or involuntary liquidation,
dissolution, sale of all or substantially all of their respective assets and liabilities,
appointment of a trustee, receiver, liquidator, sequestrator or conservator for all or any part of
any Qualified Borrower’s or Guarantor’s assets, insolvency, bankruptcy, assignment for the benefit
of creditors, reorganization, arrangement, composition or readjustment, or the commencement of
other similar proceedings affecting any Qualified Borrower or Guarantor or any of the assets of any
of them, including, without limitation, (i) the release or discharge of any Qualified Borrower or
Guarantor from the payment and performance of their respective obligations under any of the Loan
Documents by operation of law, or (ii) the impairment,

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limitation or modification of the liability of any Qualified Borrower or Guarantor in
bankruptcy, or of any remedy for the enforcement of the Guaranteed Obligations under any of the
Loan Documents, or Guarantor’s liability under this Guaranty, resulting from the operation of any
present or future provisions of the Bankruptcy Code or other present or future federal, state or
applicable statute or law or from the decision in any court; or

          (h) any improper disposition by any Qualified Borrower of the proceeds of the Loans, it being
acknowledged by Guarantor that the Administrative Agent shall be entitled to honor any request made
by any Qualified Borrower for a disbursement of such proceeds and that the Administrative Agent
shall have no obligation to see the proper disposition by such Qualified Borrower of such proceeds.

          (i) Guarantor hereby agrees that if at any time all or any part of any payment at any time
received by the Administrative Agent from any Qualified Borrower under any of the Notes or other
Loan Documents or Guarantor under or with respect to this Guaranty is or must be rescinded or
returned by the Administrative Agent for any reason whatsoever (including, without limitation, the
insolvency, bankruptcy or reorganization of any Qualified Borrower or Guarantor), then Guarantor’s
obligations hereunder shall, to the extent of the payment rescinded or returned, be deemed to have
continued in existence notwithstanding such previous receipt by the Administrative Agent, and
Guarantor’s obligations hereunder shall continue to be effective or reinstated, as the case may be,
as to such payment, as though such previous payment to the Administrative Agent had never been
made.

          (j) Until this Guaranty is terminated pursuant to the terms hereof, the Guarantor (i) shall
have no right of subrogation against any Qualified Borrower or any entity comprising same by reason
of any payments or acts of performance by Guarantor in compliance with the obligations of Guarantor
hereunder; (ii) hereby waives any right to enforce any remedy which Guarantor now or hereafter
shall have against any Qualified Borrower or any entity comprising same by reason of any one or
more payment or acts of performance in compliance with the obligations of Guarantor hereunder; and
(iii) from and after an Event of Default (as defined in the Credit Agreement) subordinates any
liability or indebtedness of any Qualified Borrower or any entity comprising same now or hereafter
held by Guarantor to the obligations of each Qualified Borrower under the Loan Documents.

     6. Guarantor hereby represents, warrants and covenants on its own behalf to the Administrative
Agent with the knowledge that the Administrative Agent is relying upon the same, as follows:

          (a) Guarantor will be familiar with the financial condition of each Qualified Borrower;

          (b) Guarantor has determined that it is in its best interest to enter into this Guaranty;

          (c) this Guaranty is necessary and convenient to the conduct, promotion and attainment of
Guarantor’s business, and is in furtherance of Guarantor’s business purposes;

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          (d) the benefits to be derived by Guarantor from each Qualified Borrower’s access to funds
made possible by the Loan Documents are at least equal to the obligations of Guarantor undertaken
pursuant to this Guaranty;

          (e) the Guarantor is solvent and has full partnership power and legal right to enter into this
Guaranty and to perform its obligations under the terms hereof and (i) Guarantor is organized and
validly existing under the laws of its state of formation, (ii) Guarantor has complied with all
provisions of applicable law in connection with all aspects of this Guaranty, and (iii) the person
executing this Guaranty on behalf of Guarantor has all the requisite power and authority to execute
and deliver this Guaranty; and

          (f) this Guaranty has been duly executed by Guarantor and constitutes the legal, valid and
binding obligation of Guarantor, enforceable against it in accordance with its terms except as
enforceability may be limited by applicable insolvency, bankruptcy or other laws affecting
creditors’ rights generally or general principles of equity whether such enforceability is
considered in a proceeding in equity or at law.

     The foregoing representations and warranties shall be deemed to be made as of the date hereof
and as the date of the making any Loan or the issuance of any Letter of Credit to or for the
account on any Qualified Borrower.

     7. Each of Guarantor and the Administrative Agent acknowledges and agrees that this Guaranty
is a guaranty of payment and not of collection and enforcement in respect of any obligations which
may accrue to the Administrative Agent and/or the Banks from each Qualified Borrower under the
provisions of any Loan Document.

     8. Subject to the terms and conditions of the Credit Agreement, and in conjunction therewith,
the Administrative Agent may assign any or all of its rights under this Guaranty.

     9. Guarantor agrees, upon the written request of the Administrative Agent, to execute and
deliver to the Administrative Agent, from time to time, any modification or amendment hereto or any
additional instruments or documents reasonably considered necessary by the Administrative Agent or
its counsel to cause this Guaranty to be, become or remain valid and effective in accordance with
its terms, provided, that, any such modification, amendment, additional instrument or document
shall not increase Guarantor’s obligations or diminish its rights hereunder and shall be reasonably
satisfactory as to form to Guarantor and to Guarantor’s counsel.

     10. The representations and warranties of the Guarantor set forth in this Guaranty shall
survive until this Guaranty shall terminate in accordance with the terms hereof.

     11. This Guaranty together with the Credit Agreement, each Note now or hereafter executed and
delivered by any Qualified Borrower, and the other Loan Documents contain the entire agreement
among the parties with respect to the subject matter hereof and supersedes all prior agreements
relating to such subject matter and may not be modified, amended, supplemented or discharged except
by a written agreement signed by Guarantor and the Administrative Agent.

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     12. If all or any portion of any provision contained in this Guaranty shall be determined to
be invalid, illegal or unenforceable in any respect for any reason, such provision or portion
thereof shall be deemed stricken and severed from this Guaranty and the remaining provisions and
portions thereof shall continue in full force and effect.

     13. This Guaranty may be executed in counterparts which together shall constitute the same
instrument.

     14. All notices, requests and other communications to any party hereunder shall be in writing
(including bank wire, telex, facsimile transmission followed by telephonic confirmation or similar
writing) and shall be addressed to such party at the address set forth below or to such other
address as may be identified by any party in a written notice to the others:

	 	 	 
	If to a
	 	 
	Qualified Borrower:

	 	At the address identified therefor by Borrower at the time
such Qualified Borrower delivers its Note or, if no such
address is so identified, at the address of Borrower set forth
in the Credit Agreement for notices.
	 
	 	 
	If to
	 	 
	Guarantor:

	 	At the address set forth in the Credit Agreement for notices.
	 
	 	 
	With Copies of
	 	 
	Notices to the
	 	 
	Qualified Borrower
	 	 
	or Guarantor to:

	 	DLA Piper LLP (US)
	 

	 	203 North LaSalle Street, Suite 1900
	 

	 	Chicago, Illinois 60601
	 

	 	Attention: James M. Phipps, Esq.
	 
	 	 
	If to the Administrative Agent:

	 	JPMorgan Chase Bank, N.A.
	 

	 	707 Travis Street, 6th Floor North
	 

	 	Houston, Texas 77002
	 

	 	Attention:
	 
	 	 
	and to:

	 	JPMorgan Chase Bank, N.A.
	 

	 	1111 Fannin Street, 10th Floor
	 

	 	Houston, Texas 77002
	 

	 	Attention: Loan and Agency Services
	 
	 	 
	With Copies to:

	 	Skadden, Arps, Slate, Meagher & Flom LLP
	 

	 	4 Times Square
	 

	 	New York, New York 10036
	 

	 	Attention: Martha Feltenstein, Esq.

     Each such notice, request or other communication shall be effective (i) if given by telex or
facsimile transmission, when such telex or facsimile is transmitted to the telex number or

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facsimile number specified in this Section and the appropriate answerback or facsimile
confirmation is received, (ii) if given by certified registered mail, return receipt requested,
with first class postage prepaid, addressed as aforesaid, upon receipt or refusal to accept
delivery, (iii) if given by a nationally recognized overnight carrier, 24 hours after such
communication is deposited with such carrier with postage prepaid for next day delivery, or (iv) if
given by any other means, when delivered at the address specified in this Section.

     15. This Guaranty shall be binding upon Guarantor and its successors and assigns and shall
inure to the benefit of the Administrative Agent and its successors and assigns.

     16. The failure of the Administrative Agent to enforce any right or remedy hereunder, or
promptly to enforce any such right or remedy, shall not constitute a waiver thereof, nor give rise
to any estoppel against the Administrative Agent, nor excuse Guarantor from its obligations
hereunder. Any waiver of any such right or remedy to be enforceable against the Administrative
Agent must be expressly set forth in a writing signed by the Administrative Agent.

     17. (a) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          (b) Any legal action or proceeding with respect to this Guaranty and any action for
enforcement of any judgment in respect thereof may be brought in the courts of the State of New
York or of the United States of America for the Southern District of New York, and, by execution
and delivery of this Guaranty, Guarantor hereby accepts for itself and in respect of its property,
generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts and appellate
courts from any thereof. Guarantor irrevocably consents to the service of process out of any of
the aforementioned courts in any such action or proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to Guarantor at the address for notices set forth
herein. Guarantor hereby irrevocably waives any objection which it may now or hereafter have to
the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection
with this Guaranty brought in the courts referred to above and hereby further irrevocably waives
and agrees not to plead or claim in any such court that any such action or proceeding brought in
any such court has been brought in an inconvenient forum. Nothing herein shall affect the right of
the Administrative Agent to serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against Guarantor in any other jurisdiction.

          (c) EACH OF THE GUARANTOR AND THE ADMINISTRATIVE AGENT HEREBY WAIVES ITS RIGHTS TO A JURY
TRIAL OF ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY. IT IS
HEREBY ACKNOWLEDGED BY GUARANTOR THAT THE WAIVER OF A JURY TRIAL IS A MATERIAL INDUCEMENT FOR THE
ADMINISTRATIVE AGENT TO ACCEPT THIS GUARANTY AND THAT THE LOANS MADE BY THE BANKS ARE MADE IN
RELIANCE UPON SUCH WAIVER. GUARANTOR FURTHER WARRANTS AND REPRESENTS THAT SUCH WAIVER HAS BEEN
KNOWINGLY AND VOLUNTARILY MADE, FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF

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LITIGATION, THIS GUARANTY MAY BE FILED BY THE ADMINISTRATIVE AGENT IN COURT AS A WRITTEN
CONSENT TO A NON-JURY TRIAL.

          (d) Guarantor hereby further covenants and agrees with the Administrative Agent that Guarantor
may be joined in any action against the Qualified Borrower in connection with the Loan Documents
and that recovery may be had against Guarantor in such action or in any independent action against
Guarantor (with respect to the Guaranteed Obligations), without the Administrative Agent first
pursuing or exhausting any remedy or claim against the Qualified Borrower or its successors or
assigns. Guarantor also agrees that, in an action brought with respect to the Guaranteed
Obligations in any jurisdiction, it shall be conclusively bound by the judgment in any such action
by the Administrative Agent (wherever brought) against any Qualified Borrower or its successors or
assigns, as if Guarantor were a party to such action, even though Guarantor was not joined as a
party in such action.

          (e) Guarantor hereby agrees to pay all reasonable expenses (including, without limitation,
attorneys’ fees and disbursements) which may be incurred by the Administrative Agent in connection
with the enforcement of its rights under this Guaranty, whether or not suit is initiated.

     18. Subject to the terms of Section 5(i) hereof, this Guaranty shall terminate and be of no
further force or effect upon the full performance and payment of the Guaranteed Obligations
hereunder. Upon termination of this Guaranty in accordance with the terms of this Guaranty, the
Administrative Agent promptly shall deliver to Guarantor such documents as Guarantor or Guarantor’s
counsel reasonably may request in order to evidence such termination.

     19. All of the Administrative Agent’s rights and remedies under each of the Loan Documents or
under this Guaranty are intended to be distinct, separate and cumulative and no such right or
remedy therein or herein mentioned is intended to be in exclusion of or a waiver of any other right
or remedy available to the Administrative Agent.

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     IN WITNESS WHEREOF, the undersigned has cause this Guaranty to be duly executed and delivered
as of the date first set forth above.

	 	 	 	 	 
	 	GUARANTOR:

AMB PROPERTY, L.P.,

a Delaware limited partnership

 	 
	 	By:  	AMB Property Corporation, a Maryland 
corporation and its sole general partner
 	 
	 	 	 
	 	By:  	 /s/  Gayle P. Starr
 	 
	 	 	Name:  	Gayle P. Starr 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	ACCEPTED:

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

 	 	 
	By:  	/s/ Ralph Totoonchie
 	 	 
	 	Name:  	Ralph Totoonchie 	 	 
	 	Title:  	Vice President 	 	 
	 
	J.P. MORGAN EUROPE LIMITED,

as Administrative Agent

 	 	 
	By:  	/s/ Caroline Walsh
 	 	 
	 	Name:  	Caroline Walsh 	 	 
	 	Title:  	Vice President 	 	 
	 
	SUMITOMO MITSUI BANKING CORPORATION,

as Administrative Agent

 	 	 
	By:  	/s/ William M. Ginn
 	 	 
	 	Name:  	William M. Ginn 	 	 
	 	Title:  	Executive Officer 	 	 

 

	 	 	 	 	 

ACKNOWLEDGMENT FOR GUARANTOR

	 	 	 	 	 	 	 	 	 
	STATE OF CALIFORNIA

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS.
	 	 
	COUNTY OF SAN FRANCISCO

	 	 	)	 	 	 	 	 

     On
October 13, 2009, before me, Elise J. Krzyzkowski, a Notary Public, personally appeared Gayle P. Starr,
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the
within instrument and acknowledged to me that she executed the same in her authorized capacity, and that
by her signature on the instrument the person, or entity upon behalf of which the person acted, executed the instrument.

     I certify under PENALTY OF PERJURY
under the laws of the State of California that the foregoing paragraph is true and correct.

     WITNESS my hand the official seal.

	 	 	 	 	 
	 	 	 
	 	
/s/ ELISE J. KRZYZKOWSKI
 	 
	 	Notary Publicexv10w1

Exhibit 10.1

SUPERVALU INC.

EXECUTIVE & OFFICER SEVERANCE PAY PLAN

SUPERVALU INC., a Delaware corporation, hereby establishes a severance pay plan for those employees
of SUPERVALU and its subsidiaries (the “Company”) in Pay Bands 0, 1 and 2, or Vice Presidents in
Pay Band 3 who have been elected by the Board of Directors as a corporate officer, pursuant to
this Plan document (the “Plan”). If and to the extent that any employees covered by this Plan are
also covered under the plan set forth in the document entitled “SUPERVALU INC. Severance Pay Plan
for Nonunion Associates” and dated June 2, 2008, as amended from time to time, this Plan shall
entirely replace and supersede such coverage effective May 2, 2009.

1. Purpose. The Plan provides severance benefits to certain employees of the Company whose
employment is involuntarily terminated without Cause, as that term is defined herein.

2. Effective Date. This Plan document is effective for any termination of employment of which a
participant (as defined in paragraph 3) is notified on or after May 2, 2009.

3. Participation. Unless excluded under paragraph 4, an employee of the Company becomes a
participant in the Plan if:

	 	(a)	 	at the time of termination, the employee is in Pay Bands 0, 1, 2 or is a Vice
President in Pay Band 3 who has been elected by the Board of Directors as a corporate
officer; and
	 
	 	(b)	 	the employee is involuntarily terminated without Cause, on or after the
effective date of this Plan, as that term is defined herein.

For purposes of subparagraph (b), Cause means:

     (i) the continued failure to substantially perform employee’s duties with the Company
(other than any such failure resulting from incapacity due to physical or mental illness),
after a written notice has been provided identifying the manner in which the employee has not
substantially performed employee’s duties, and after employee has had six months to improve
performance to Company’s expectations;

     (ii) the conviction of, or plea of guilty or nolo contendere to, a felony or the
employee’s engagement in conduct which, in the Company’s opinion, is materially and
demonstrably injurious to the Company;

     (iii) the commission of an act or acts of personal dishonesty intended to result in
substantial personal enrichment of the employee at the expense of the Company; provided,
however, that in no event shall Cause exist by virtue of any action taken by the employee in
compliance with express written directions of the Board, the Company’s Chief Executive
Officer, or the officer to whom the employee reports, or in reliance upon the express written
consent of the Company’s counsel; or

 

 

     (iv) employee’s failure to comply with Company policies relating to Code of Business
Conduct, Equal Employment Opportunities and Harassment, or Workplace Violence.

With respect to the Chief Executive Officer only, for a termination of employment to be for
Cause, the employee must be provided with a notice of termination within six (6) months after
the Company has actual knowledge of the act or omission constituting Cause, the employee must
be provided with an
opportunity to be heard by the Board no earlier than 30 days following the notice of
termination; and there must be a good faith determination of Cause by at least 2/3rds of the
non-employee outside directors of the Company.

Whether the termination meets the criteria for Cause outlined above will be determined by the
Company in its sole discretion based on all the facts and circumstances. The Company’s decision
will be final and binding.

A participant will continue in the Plan until the earliest of: (i) the date the participant has
been paid all the severance payments due under the Plan, (ii) the date the participant accepts
continuing employment with the Company in a classification other than a classification of employees
covered by this Plan, (iii) the date the participant’s employment is terminated under conditions
that do not qualify for benefits under this Plan, or (iv) the date of the participant’s death.

4. Exclusions. Even if an employee satisfies the requirements in paragraph 3, the employee will
not become a participant or receive benefits in this Plan if:

	 	(a)	 	employee is employed by SUPERVALU India;
	 
	 	(b)	 	employee is terminated due to disability or death;
	 
	 	(c)	 	employee has not been actively at work at any time during the six months
immediately preceding the termination date;
	 
	 	(d)	 	employee accepts any position with the Company or a subsidiary thereof;
	 
	 	(e)	 	employee is offered a position by the Company or a subsidiary thereof, and
such position does not requires relocation and offers total annual cash compensation
equal to or greater than employee’s current total annual cash compensation, even if
employee does not accept such offer;
	 
	 	(f)	 	employee is employed in a business unit that is sold or otherwise transferred
to another employer and, prior to the closing of that transaction, employee (i)
accepts any position with the other employer or (ii) is offered a position that does
not require relocation and with total annual cash compensation that is not less than
the employee’s current total annual cash compensation, even if employee does not
accept such offer;

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	 	(g)	 	employee does not continue working through the date designated by the Company
as the employee’s termination date or any earlier date that is designated by the
Company as the employee’s release from duty date;
	 
	 	(h)	 	employee fails to return Company property on or before the employee’s last
day of work;
	 
	 	(i)	 	employee is eligible for a severance payment on account of the employee’s
termination of employment under an individual Change of Control Severance Agreement;
	 
	 	(j)	 	employee fails to execute a Release of Claims and Agreement in the form and
manner prescribed by the Company within the time set forth in the Release of Claims
and Agreement or revokes or rescinds such Release of Claims and Agreement during the
revocation or rescission period set forth in such Release of Claims and Agreement. The
Agreement will include the participant’s agreements related to confidentiality,
noncompetition, nonsolicitation, nondisparagement, and arbitration; or
	 
	 	(k)	 	employee has signed an individual Change of Control Severance Agreement
before April 25, 2009 and has not agreed to changes consistent with the template
Change of Control Severance Agreement approved by the Compensation Committee of the
Board of Directors at its meeting on April 25, 2009, intended to replace and supersede
any previous individual Change of Control Severance Agreements.

5. Severance Pay Benefit. The amount of severance pay is determined under this paragraph 5.

	 	(a)	 	Amount. The amount of severance pay depends on the participant’s
classification as follows:

	 	 	 	 	 
	Tier I

	 	Chief Executive
Officer and/or
Employee in Pay
Band 0
	 	(1) 2 times annual base salary at time of termination
	 

	 	 	 	Plus
	 

	 	 	 	(2) an amount calculated as follows: take the average of
the performance results (expressed as a percentage) used
to determine employee’s bonus amounts under the Company’s
annual bonus plan for the preceding three years (or all
bonus amounts, if employee has been employed fewer than
three years). Multiply that percentage by employee’s
current target bonus amount under such annual bonus plan.
Multiply the result of this subparagraph by two.
	 
	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(3) pro-rated payments for each long term incentive plan
cycle that is not completed as of the employee’s
termination date (but only to the extent that the awards
for the long-term incentive plan have not already vested).
The Company shall determine, with respect to each such
long term incentive plan cycle, in its discretion, the
amount of the payment (prior to pro-ration) after
assessing progress

-3-

 

	 	 	 	 	 
	 

	 	 	 	against long term incentive plan
objectives to the termination date. By way of example, if
a termination occurred at the end of the 17th
week of the fiscal year beginning in 2012 and ending in
2013 (i.e., approximately June 2012) and assuming that
each three year performance cycle consists of 157 weeks:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø   In March/April 2013 the Company would, in its
discretion, assess performance to June 2012 against LTIP
objectives for the three year cycle ended February 2013,
determine the resulting LTIP bonus based on that
assessment and pay a pro rated 121/157th of
that amount for that completed three year cycle.

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø   Also, in March/April 2013 the Company would, in
its discretion, assess performance to June 2012 against
objectives for the three year cycle that will end February
2014, determine the resulting LTIP bonus based on that
assessment and pay a pro rated 69/157th of that
amount for the now 2/3rd completed three year
cycle.

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø   Finally, in March/April 2013 the Company would, in
its discretion, assess performance to June 2012 against
objectives for the three year cycle that will end February
2015, determine the resulting LTIP bonus based on that
assessment and pay a pro rated 17/157th of that
amount for the now 1/3rd completed three year
cycle.

	 	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(4) a pro-rated bonus under the Company’s annual bonus
plan (based on weeks of service in relevant bonus year)
calculated on the same basis as all others in the annual
bonus plan.
	 
	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(5) Reimbursement for cost of COBRA coverage for medical
and/or dental insurance (if participant has been enrolled
in such prior to termination, and if participant timely
makes a COBRA election) until the earlier of: a) 18
months following termination; or b) participant is
eligible to obtain medical and/or dental coverage through
other sources. (Reimbursed amounts will be taxable to the
participant).
	 
	 	 	 	 
	Tier II

	 	Executive Vice
Presidents and/or
Employee in Pay
Band 1
	 	(1) 1.5 times annual base salary at the time of termination
	 

	 	 	 	Plus
	 

	 	 	 	(2) an amount based on the following calculation: take
the average of the performance results (expressed as a
percentage) used to determine employee’s bonus amounts
under the Company’s annual bonus plan for the preceding
three years (or all bonus amounts, if employee has been
employed fewer than three years). Multiply that
percentage by employee’s current target bonus amount under
such annual bonus plan. Multiply the result of this
subparagraph by 1.5.
	 
	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(3) pro-rated payments for each long term incentive plan
cycle that is not completed as of the employee’s
termination date (but only to

-4-

 

	 	 	 	 	 
	 

	 	 	 	the extent that the awards
for the long-term incentive plan have not already vested).
The Company shall determine, with respect to each such
long term incentive plan cycle, in its discretion, the
amount of the payment (prior to pro-ration) after
assessing progress against long term incentive plan
objectives to the termination date. By way of example, if
a termination occurred at the end of the 17th
week of the fiscal year beginning in 2012 and ending in
2013 (i.e., approximately June 2012) and assuming that
each three year performance cycle consists of 157 weeks:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø    In March/April 2013 the Company would, in its
discretion, assess performance to June 2012 against LTIP
objectives for the three year cycle ended February 2013,
determine the resulting LTIP bonus based on that
assessment and pay a pro rated 121/157th of
that amount for that completed three year cycle.

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø    Also, in March/April 2013 the Company would, in
its discretion, assess performance to June 2012 against
objectives for the three year cycle that will end February
2014, determine the resulting LTIP bonus based on that
assessment and pay a pro rated 69/157th of that
amount for the now 2/3rd completed three year
cycle.

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø    Finally, in March/April 2013 the Company would, in
its discretion, assess performance to June 2012 against
objectives for the three year cycle that will end February
2015, determine the resulting LTIP bonus based on that
assessment and pay a pro rated 17/157th of that
amount for the now 1/3rd completed three year
cycle.

	 	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(4) a pro-rated bonus under the Company’s annual bonus
plan (based on weeks of service in relevant bonus year)
calculated on the same basis as all others in the annual
bonus plan
	 
	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(5) Reimbursement for cost of COBRA coverage for medical
and/or dental insurance (if participant has been enrolled
in such prior to termination, and if participant timely
makes a COBRA election) until the earlier of: a) 18
months following termination; or b) participant is
eligible to obtain medical and/or dental coverage through
other sources. (Reimbursed amounts will be taxable to the
participant).
	 
	 	 	 	 
	Tier III

	 	Employees in Pay
Band 2 or Vice
Presidents in Pay
Band 3 who have
been elected by the
Board of Directors
as an officer.
	 	(1)1 times annual base salary at
time of termination

	 

	 	 	Plus
	 

	 	 	(2) an amount based on the following calculation: take
the average of the performance results (expressed as a
percentage) used to determine employee’s bonus amounts
under the Company’s annual bonus plan for the preceding
three years (or all bonus amounts, if employee has been
employed fewer than three years). Multiply that
percentage by employee’s current target bonus amount under
such annual bonus plan. Multiply the result of this
subparagraph by one.

-5-

 

	 	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(3) pro-rated payments for each long term incentive plan
cycle that is not completed as of the employee’s
termination date (but only to the extent that the awards
for the long-term incentive plan have not already vested).
The Company shall determine, with respect to each such
long term incentive plan cycle, in its discretion, the
amount of the payment (prior to pro-ration) after
assessing progress against long term incentive plan
objectives to the termination date. By way of example, if
a termination occurred at the end of the 17th
week of the fiscal year beginning in 2012 and ending in
2013 (i.e., approximately June 2012) and assuming that
each three year performance cycle consists of 157 weeks:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø    In March/April 2013 the Company would, in its
discretion, assess performance to June 2012 against LTIP
objectives for the three year cycle ended February 2013,
determine the resulting LTIP bonus based on that
assessment and pay a pro rated 121/157th of
that amount for that completed three year cycle.

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø    Also, in March/April 2013 the Company would, in
its discretion, assess performance to June 2012 against
objectives for the three year cycle that will end February
2014, determine the resulting LTIP bonus based on that
assessment and pay a pro rated 69/157th of that
amount for the now 2/3rd completed three year
cycle.

	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Ø    Finally, in March/April 2013 the Company would, in
its discretion, assess performance to June 2012 against
objectives for the three year cycle that will end February
2015, determine the resulting LTIP bonus based on that
assessment and pay a pro rated 17/157th of that
amount for the now 1/3rd completed three year
cycle.

	 	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(4) a pro-rated bonus under the Company’s annual bonus
plan (based on weeks of service in relevant bonus year)
calculated on the same basis as all others in the annual
bonus plan
	 
	 	 	 	 
	 

	 	 	 	Plus
	 

	 	 	 	(5) Reimbursement for cost of COBRA coverage for medical
and/or dental insurance (if participant has been enrolled
in such prior to termination, and if participant timely
makes a COBRA election) until the earlier of: a) 12
months following termination; or b) participant is
eligible to obtain medical and/or dental coverage through
other sources. (Reimbursed amounts will be taxable to the
participant).

	 	(b) Time and Form of Payment All severance pay, except the pro-rated amounts
under the Company’s annual bonus and long-term incentive

-6-

 

	 	 	 	plans, will be paid in
a single lump sum as soon as practicable after the tenth day following the last
day of the revocation period specified in the Release of Claims and Agreement,
subject to paragraph 9(e) below. Notwithstanding anything to the contrary
herein, the last day of the revocation period will not be later than March 1 of
the year following the calendar year in which the termination date or, if
earlier, the release from duty date, occurs.
	 
	 	 	 	The pro-rated annual bonus will be paid at the same time other bonuses are
paid under the annual bonus plan. The pro-rated long term incentive plan bonus
will be paid as soon as practicable after the end of the fiscal year in which
the termination date, or if earlier, the release from duty date occurs. In no
event, however, will payments under the annual bonus plan, long term incentive
plan, or any other amounts payable under this plan, except for reimbursement
for the cost of COBRA coverage, be paid after May 15 following the end of the
Company’s fiscal year in which the termination date or, if earlier, the release
from duty date occurs.
	 
	 	 	 	Required taxes will be withheld from payments under this Plan, and appropriate
tax documents will be issued reflecting amounts received pursuant to this plan.
Severance pay is not eligible for contributions to the 401(k) plan, flexible
spending account plan or any deferred compensation plan.
	 
	 	(c)	 	WARN Benefits. Where the requirements of the Worker Adjustment and Retraining
Notification Act (“WARN”) or other similar state or local requirements apply,
participants will receive the legally required notice of termination dates. These
participants will remain on active employment status as required by law through that
notice period. Where the Company determines that the services of such participant are
not required through the full notice period, the participant may be released from duty
(see
paragraph (d) below) but will continue to receive regular pay and benefits on
the same basis as if they had reported to work and will also receive all
severance pay under this Plan for which they are eligible.
	 
	 	(d)	 	Release from Duty Date. In some circumstances, the Company may determine in
its sole discretion that the employee is not needed at work through the stated
termination date. A participant will be eligible to receive severance pay under this
Plan if the participant stops coming to work after receiving written notification from
the Company of such an early release date.
	 
	 	(e)	 	Repayment of Severance Pay. If within 6 months of an individual’s
termination date, the Company wishes to rehire, in any capacity, an individual who has
received severance benefits pursuant to this Plan, the rehired employee is required to
repay to the Company a portion of the severance benefits received, calculated as
follows: convert the amount of

-7-

 

	 	 	 	base salary in item (1) in Tier I, II, and III charts
above into weeks of base salary (e.g., 52 weeks for a Tier III participant) and
subtract from it the number of full weeks that elapsed between the participant’s
termination date (or release from duty date, if earlier) and rehire date. Multiply
that number of weeks by the weekly equivalent of the total base salary and bonus
amounts in items (1) and (2) in the Tier I, II, and III charts, above. (The weekly
equivalent is obtained by adding together the amounts paid under Items (1) and (2) and
then dividing by 104 for Tier I, 78 for Tier II, and 52 for Tier III). The result is
the gross repayment amount. The individual must repay that amount, reduced by
applicable taxes, to the Company prior to the date employment recommences or the
employment offer will be withdrawn.

	6.	 	Related Benefits and Benefit Plans.

	 	(a)	 	Outplacement Assistance. At participant’s request, outplacement services
shall be provided by a professional outplacement provider mutually acceptable to the
Executive and the Company at a cost to the Company of not more than Twenty-Five
Thousand Dollars ($25,000). Such services may be provided by direct payment to the
outplacement provider and not by reimbursement to employee. Services shall be paid
only if the services are provided during the period beginning with the later of the
termination date or last day worked and ending on the December 31 of the second
calendar year following the calendar year in which the termination occurred. However,
outplacement services may begin after the date Employee is notified of termination with
advance written approval of the Company.
	 
	 	(b)	 	Other Benefit Plans. Benefits in other benefit plans provided by the Company
will be determined in accordance with the plan documents for those benefit plans.
Severance pay is not eligible for deferral into 401(k) plans sponsored by the Company
and will not be counted as pay in the SUPERVALU Inc. Retirement Plan. Severance pay
is not eligible for contribution to any Section 125 “cafeteria” plans or any deferred
compensation plans. This Plan does not affect the payment of unused vacation or the
terms of any stock option plan or agreements.

7. Amendment and Termination of Plan. SUPERVALU INC., by action of its Board of Directors,
reserves the right to amend or terminate this Plan without notice, in any respect, in whole or in
part, for any reason, at any time and from time to time, prospectively or retroactively or both, as
to persons who are participants and as to persons who may become participants and as to benefits
being received and as to benefits that may be received in the future in whole or in part. However,
changes to the Plan which clarify its terms or that are not material changes to eligibility
requirements or the amount of the benefit may be adopted and approved in writing by the Executive
Vice President, Human Resources and Communications.

-8-

 

	8.	 	Claims Procedure.

	 	(a)	 	Initial Claim and Decision. If a participant (referred to as “claimant” for
remainder of Section 8) believes that he is not receiving a benefit he is entitled to
receive under the Plan, the claimant may file a claim with the Director of Employee
Relations. The claim must be in writing, must include the facts and arguments the
claimant wants to be considered, and must be filed within one year of the date the
claimant knew (or should have known) the facts behind the claim. The Director of
Employee Relations has 90 days after receiving the claim to make a decision and notify
the claimant if the claim is denied in whole or in part. The notice of denial will
state the reasons for the denial, the Plan provisions on which the denial is based, a
description of additional material (if any) needed from the claimant and why, the
procedure for requesting a review of the denial, and the participant’s right to file a
civil action under section 502(a) of ERISA if the claim is denied upon review.
	 
	 	(b)	 	Request for Review and Decision. If the claimant disagrees with the denial
of the claim, the claimant may file a request for a review of that decision. The
request must be in writing to the Corporate Executive Vice President of Human
Resources (hereinafter “EVPHR”), must state the reason for disagreement with the
denial of the claim, and must be filed within 60 days after the denial notice was
received. The claimant should submit all documents and written arguments s/he wants
considered at the review, and the claimant may, upon request and free of charge,
receive copies of documents and information relevant to the claim. The EVPHR has 60
days after receiving the request to make a decision and notify the claimant if the
denial is upheld. If the EVPHR decides that the claim was correctly denied, the
notice will state the reasons for the denial, the Plan provisions on which the denial
is based, the claimant’s right to receive, upon request and free of charge, reasonable
access to and copies of the relevant documents and information used in the claims
process, and the claimant’s right to file a civil action under section 502(a) of
ERISA.
	 
	 	(c)	 	Extensions of Time Periods. If the claimant is notified what special
circumstances require an extension and what date the claim is expected to be decided,
the 90-day period for deciding an initial claim may be extended for up to 90
additional days and the 60-day period for making a decision following a request for a
review may be extended for up to 60 additional days. If an extension of the 60-day
period is necessary because the claimant needs to submit additional information, the
claimant will be given 60 days to provide that information. The time it takes the
claimant to provide that information will not count against the 60 days the EVPHR has
to make a decision.
	 
	 	(d)	 	In General. The EVPHR will make all final decisions on claims. The EVPHR
has the discretion, authority, and responsibility to decide all factual and legal
questions under the Plan, to interpret and construe the Plan and any ambiguous or
unclear terms, and to determine whether a

-9-

 

	 	 	 	claimant is eligible for benefits and the
amount of benefits, if any, a claimant is entitled to receive. The EVPHR has the
right to delegate his or her authority to make decisions and all such decisions are
conclusive and binding on all parties. A claimant may, at his own expense, have an
attorney or representative act on his behalf, but the Company has the right to require
a written authorization from the claimant.
	 
	 	(e)	 	Substitution. For purposes of Section 8 (b) through (d) above, if the
claimant is the EVPHR, then “General Counsel” shall be substituted wherever “Corporate
Vice President of Human Resources” or “EVPHR” currently appears. In the absence of an
individual designated as “General Counsel,” the Executive Vice President who oversees
legal services shall be substituted wherever “Corporate Executive Vice President of
Human Resources” or “EVPHR” currently appears.
	 
	 	(f)	 	Deadline to File a Legal Action. No legal action to recover Plan benefits or
to enforce or clarify rights under the Plan under section 502 or section 510 of ERISA
or under any other provision of law, whether or not statutory, may be brought by any
claimant on any matter pertaining to this Plan unless the legal action is commenced in
the proper forum and before the earlier of : (a) thirty (30) months after the claimant
know or reasonably should have know of the principal facts on which the claim is
based, or (b) six (6) months after the claimant has exhausted the claim and review
procedure.
	 
	 	(g)	 	Choice of Forum. All controversies, disputes, claims, or causes of actions
arising under or related to the Plan must be brought in the United States District
Court for the District of Minnesota.

	9.	 	Miscellaneous Provisions.

	 	(a)	 	No Assignment. No participant will have any transmissible interest in any
benefit under the Plan nor shall any participant have any power to anticipate,
alienate, dispose of, pledge or encumber the same, nor shall the Company recognize any
assignment thereof, either in whole or in part, nor shall any benefit be subject to
attachment, garnishment, execution following the judgment or other legal process.
	 
	 	(b)	 	Correction of Error. The Company has the right to correct any errors that
may occur in the administration of the Plan, including reducing or eliminating
benefits to the participant under the Plan.
	 
	 	(c)	 	Governing Law. To the extent not preempted by the laws of the United States,
the laws of the State of Minnesota shall apply with respect to the Plan.
	 
	 	(d)	 	Severability. If a provision of the Plan shall be held to be illegal,
invalid or unenforceable, the illegal, invalid or unenforceable provision shall not

-10-

 

	 	 	 	affect the remaining parts of the Plan, and the Plan shall be construed and enforced
as if the illegal or invalid provisions had not been included.
	 
	 	(e)	 	409A Limitation. Notwithstanding any provision to the contrary, the Plan
shall either provide for payments that are exempt from Code section 409A or such
payments shall be made in compliance with Code section 409A. To the extent that any
payments or benefits to be provided to the participant under this Plan would be
considered deferred compensation under Code Section 409A and the participant, as of
the date of participant’s termination of employment, is a “specified employee” as
defined in regulations issued under Code Section 409A of the Code, then any such
payments that would otherwise be due and payable during the first six (6) months
following and on account of a termination of employment shall instead be paid to the
participant upon the earlier of (i) six months and one day after the date of the
participant’s termination of employment or (ii) any other date permitted under section
409A(a)(2) and section 409A(a)(3). To the extent that any payments or benefits to be
provided to the participant under this Plan would be considered deferred compensation
under Code section 409A, the provisions of this Plan pertaining thereto shall be
construed and administered to comply with section 409A. Neither the Company nor any
of its officers, directors, agent or affiliates shall be obligated, directly or
indirectly, to any participant or any other person for any taxes, penalties, interest
or like amounts that may be imposed on the participant or other person on account of
any amounts paid or payable under this Plan or on account of any failure to comply
with section 409A.

Effective: May 2, 2009

Amended: August 7, 2009

-11-

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