Document:

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                                                                   Exhibit 10.59

                                                                     May 5, 2005

Clarence J. Gabriel, Jr.
Albertson's, Inc.
250 E. Parkcenter Blvd.
Boise, Idaho 83706

Dear Gabe,

        This letter will confirm the agreement between you and Albertsons, Inc.,
including its subsidiaries and affiliates, (the "Company") regarding your
resignation from the position of Executive Vice President, Supply Chain and
Asset Management as of May 5, 2005 ("Resignation Date"), and sets forth our
mutual understanding of the terms of your agreement and general release. This
agreement will become effective on the eighth (8th) day after the date of its
execution by you (the "Effective Date").

1.      Your employment as Executive Vice President, Supply Chain and Asset
        Management will end on the Resignation Date. You will be classified as a
        special employee from the Resignation Date through the Termination Date.
        The term "Termination Date" shall mean the earliest of (i) May 5, 2006,
        (ii) the date you commence employment with or become an independent
        consultant for a third party (regardless of whether such third party is
        a "Competing Business," as that term is defined in Exhibit A hereto), or
        (iii) the date of your death.

2.      Conditioned upon your agreement to the terms set forth herein, you shall
        be entitled to the compensation and benefits listed below during the
        period from the Resignation Date to the Termination Date. This will
        constitute the only compensation and benefits payable to you, including
        but not limited to those provided by the employment letter between you
        and the Company dated December 24, 2002.

        A.) During said period you will be entitled to:

               (1) A base salary at the rate in effect on the Resignation Date
               from the Resignation Date until the Termination Date in
               accordance with practices and policies in effect on the Effective
               Date and to accrue vesting service in all plans and programs in
               which you are eligible to participate (including but not limited
               to continued vesting in the deferrable restricted stock units you
               received under the Albertson's, Inc. Amended and Restated 1995
               Stock Based Incentive Plan) as if you were a regular, full-time
               employee and officer;
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Mr. C. J. Gabriel, Jr.
May 5, 2005

               (2) All earned vacation up to the Resignation Date;

               (3) Participate in the Company's medical, dental, life insurance
               and retirement plans according to the terms and conditions of
               such plans (you will receive a COBRA notice as required by law
               upon the Termination Date.);

               (4) Defer eligible amounts under the 2005 Deferred Compensation
               Plan;

               (5) Receive benefits (including but not limited to any Company
               contribution and any match provided under ASRE during the term of
               this agreement pursuant to the terms of the Plan) according to
               the terms and conditions of the Company's qualified and
               non-qualified retirement plans accrued with respect to your
               service through the Termination Date;

               (6) Receive the benefits associated with stock options or
               restricted stock units in the same manner as an active employee
               during the period from the Resignation Date to the Termination
               Date and for the period thereafter as set forth in the relevant
               agreement or grant under which such options or units were
               received. (You understand that you are subject to the Company's
               window periods only until the end of the fiscal 2005 first
               quarter earnings release, but agree to consult with the Corporate
               Secretary prior to trading Company stock during the term of this
               agreement.);

               (7) Receive up to $50,000 in outplacement services, commencing on
               the Resignation Date, provided by Drake Beam Morin, Inc. or such
               other firm as is mutually acceptable to the parties; and

               (8) Receive financial counseling services as provided by the
               Company for other executives through AYCO, commencing on the
               Resignation Date and ending on the Termination Date.

        B. In addition to the above items, you will be entitled to receive (i) a
        lump sum payment equal to $350,000, less applicable taxes (the amount of
        the target bonus under the Company's annual bonus plan), which sum will
        be payable to you promptly following the expiration of the seven (7) day
        period referred to in paragraph 14, and (ii) a bonus for 2005 that will
        be calculated pursuant to the annual Corporate Bonus Plan based on
        actual Company performance, prorated through the Resignation Date, and
        paid when the Company distributes such amounts to bonus eligible
        participants; provided any bonus is payable under the Corporate
        Incentive Plan.

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Mr. C. J. Gabriel, Jr.
May 5, 2005

3.      Notwithstanding anything to the contrary in this agreement, you
        acknowledge that you will not be entitled to or receive any raises, be
        granted any additional options or restricted stock, be eligible for any
        bonuses except as provided herein, earn or accrue any vacation benefits,
        or be eligible to participate in the long-term disability plans
        following the Resignation Date. Moreover, you expressly waive all rights
        to termination or severance benefits except as may be provided in this
        agreement. Such waiver specifically extends to any rights under your
        Change of Control Severance Agreement dated as of January 13, 2003 and
        your employment letter dated December 24, 2002.

4.      Notwithstanding anything to the contrary in this agreement, the parties
        agree as follows:

        (a)    If the Termination Date occurs because you commence employment
               with or become an independent contractor for a third party other
               than a Competing Business or die prior to May 5, 2006, the
               Company will pay you: i) the remaining amount of your base salary
               (calculated from the Termination Date through May 5, 2006) in a
               lump sum, less applicable taxes, within ten (10) business days of
               receipt of the notice required by Paragraph 5 below, and ii) the
               prorated bonus payment described in paragraph 2 B (ii) above as
               provided therein. and

        (b)    If the Termination Date occurs prior to May 5, 2006 other than
               as set forth in Paragraph 4(a) above, no further sums or
               benefits shall be payable to you or your spouse under this
               agreement; although the terms of the relevant plans and programs
               will continue to apply as to any benefits accrued or vested as
               of the Termination Date and subject to your rights under COBRA.

5.      You agree to notify the Company in writing if you accept employment with
        or accept a position as an independent contractor for any third party,
        within five (5) business days of your acceptance. Such notice shall
        specify the name and address of the employer or such third party and the
        date of commencement or engagement and shall be delivered to the Company
        care of the General Counsel at Albertsons, Inc., 250 E. Parkcenter
        Blvd., Boise, Idaho 83706.

6.      Upon the Resignation date, you shall return to the Company all of the
        Company's personal property, including without limitation all documents,
        data, computers, phones, personal digital assistants, books, records,
        documents, videos, cards, keys, credit cards issued to you, and all
        other such personal property of every nature and kind.

7.      Nothing in this agreement shall be construed as an admission of
        liability by the Company or you; rather, we are resolving any and all

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Mr. C. J. Gabriel, Jr.
May 5, 2005

        matters and disputes regarding your employment and separation from the
        Company.

8.      You shall not directly or indirectly, in your own name or anonymously,
        in public or in private, in any form of communication (including but not
        limited to oral, written, or electronic) deprecate, impugn, disparage,
        or make any remarks that would tend to or be construed to tend to defame
        the Company or any of its employees, members of its board of directors
        or agents, nor shall you assist any other person, firm or company in so
        doing.

9.      You acknowledge that the offer of consideration contained in this
        Agreement is contingent upon your compliance with the terms described
        herein. You understand and agree that if the Company believes that you
        are in violation of the terms of this Agreement, the Company retains the
        right to cease providing payments or otherwise carrying out the terms of
        the Agreement. Further, you acknowledge and agree that if you violate
        the terms of this Agreement, the Company shall have the right to recover
        any amounts paid under this Agreement, including the value of any
        benefits provided, in addition to any other rights the Company may have
        at law or in equity.

10.     For twelve (12) consecutive months beginning on the Resignation Date,
        regardless of whether the Termination Date has occurred (unless the
        Termination Date has occurred because you have been employed by or
        become an independent contractor for a Competing Business), you agree to
        cooperate with the Company from time to time to provide information or
        answer questions with respect to matters with which you are familiar as
        reasonably requested by the Chief Executive Officer or his designee.

11.     You agree to cooperate with the Company, its affiliates, and each of its
        respective attorneys or other legal representatives in connection with
        any claim, litigation, or judicial or arbitral proceeding which is now
        pending or may hereinafter be brought against the Company by any third
        party, including your appearance as a witness at depositions or trials,
        without necessity of a subpoena, in order to state truthfully your
        knowledge of matters at issue. The Company shall promptly reimburse you
        for your actual and reasonable travel or other out-of-pocket expenses
        that you may incur in cooperating with the Company in accordance with
        this Paragraph.

        You also agree that at the Resignation Date and during the twelve month
        period thereafter you will furnish the Company with such certificates as
        it may from time to time request regarding (i) the truthfulness,
        accuracy, and completeness of the Company's books and records with which
        you are familiar, (ii) the truthfulness, accuracy and

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Mr. C. J. Gabriel, Jr.
May 5, 2005

        completeness of any filings made by the Company with which you are
        familiar, and (iii) the adequacy of the Company's disclosure controls
        and internal controls with which you are familiar.

12.     Without the express prior written consent of the Company, you shall
        never disclose to any person, corporation or other entity, or use for
        your own benefit or purposes, any information of a confidential and
        proprietary nature obtained from or pertaining to the Company, its
        assets or business, including information concerning the Company's
        current or future proposed business plans, processes, operation methods,
        customer lists, trade secrets, suppliers, employee personnel files and
        compensation, financial affairs, or marketing strategies. You further
        agree that you will immediately forward to the General Counsel any
        business information related to the Company that has been or is directed
        to you.

13.     You agree that you will not, without the prior written consent of the
        Company, on your behalf or on behalf of any person, firm or company,
        directly or indirectly, attempt to influence, persuade or induce, or
        assist any other person in so persuading or inducing, any employee of
        the Company or any subsidiary or affiliate of the Company to give up, or
        to not commence, employment or a business relationship with the Company
        or any subsidiary or affiliate of the Company. You agree that you will
        not, without the prior written consent of the Company, on your behalf or
        on behalf of any person, firm or company, directly or indirectly, engage
        or cause to be engaged in an employment or a consulting capacity any
        employee of the Company or a subsidiary or affiliate of the Company.

14.     In consideration of the Company's covenants and agreements contained
        herein:

        (a)    You do hereby knowingly and voluntarily, fully and finally
               release and forever discharge the Company, including its related
               or affiliated companies, subsidiaries, partnerships, or other
               business entities, and its and their present and former
               respective officers, directors, shareholders, members, owners,
               agents, consultants, employees, representatives, insurers,
               successors and assigns (hereinafter referred to collectively as
               the "Released Parties"), from any and all claims, charges,
               complaints, liens, demands, causes of action, obligations,
               damages and liabilities, known or unknown, suspected or
               unsuspected that you had, now have, or may hereafter claim to
               have against the Released Parties, arising out of or relating in
               any way to your employment with or separation from the Company or
               otherwise relating to any of the Released Parties from the
               beginning of time through the date you sign this agreement. This
               release specifically extends to, without

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Mr. C. J. Gabriel, Jr.
May 5, 2005

               limitation, claims or causes of action under any local, state
               and federal law governing employment relations, including but
               not limited to federal equal employment opportunity laws and
               federal and state labor statutes and regulations, including, but
               not limited to, Title VII of the Civil Rights Act of 1964, the
               Americans with Disabilities Act, the Age Discrimination in
               Employment Act of 1967, the Family Medical Leave Act, and the
               Employee Retirement Income Security Act of 1974, all as amended
               from time to time.

               With respect to the Released Parties, you expressly waive, to the
               extent allowed by law, all rights afforded by any provision under
               applicable law which generally provides that a general release
               does not extend to claims which the creditor does not know or
               suspect to exist in his favor at the time of executing the
               release, which if known by him must have materially affected his
               settlement with the debtor. Notwithstanding any such forgoing
               provision or comparable provision, you understand and agree that
               this agreement is intended to include all claims, if any, which
               you may have and which you do now know or suspect to exist in
               your favor against the Released Parties and that this release
               extinguishes those claims.

               Notwithstanding anything to the contrary contained in this
               agreement, you are not releasing any of your rights to the
               following:

               (i) To indemnification as an officer, director or trustee
               pursuant to Section 145 of the Delaware General Corporation Law
               or the by-laws of the Company;
               (ii) To exercise and obtain, in accordance with the terms of
               such options, any and all the benefits appurtenant to the
               options to purchase the Company's common stock held by you on
               the Effective Date; or
               (iii) Any of your rights to enforce this agreement.

        (b)    You acknowledge that the Company has advised you that you may
               consult with an attorney of your choosing prior to signing this
               agreement and that you have been given at least twenty-one (21)
               days during which to review and consider the provisions of this
               agreement, although you may sign and return it sooner if you so
               desire. You further acknowledge that you have been advised by the
               Company that you have the right to revoke this agreement for a
               period of seven (7) days after signing it and that this agreement
               shall not become effective or enforceable until such seven (7)
               day revocation period has expired. You acknowledge and agree that
               if you wish to revoke this agreement, you must do so in writing,
               and that such revocation must be signed by you and delivered to
               the

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Mr. C. J. Gabriel, Jr.
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               Company care of the General Counsel at Albertsons, Inc., 250 E.
               Parkcenter Blvd., Boise, Idaho 83706, by the end of the seventh
               (7th) day after you have signed this agreement. You acknowledge
               and agree that, in the event you revoke this agreement, you
               shall have no right to receive the payments or benefits
               described above.

15.     If any provision of this agreement shall be determined under applicable
        law to be overly broad in duration, geographical coverage, substantive
        scope, or otherwise, such provision shall be deemed narrowed to the
        broadest term permitted by applicable law and shall be enforced as so
        narrowed. If any provision of this agreement nevertheless shall be
        unlawful, void, or unenforceable, it shall be deemed severable from and
        shall in no way affect the validity or enforceability of the remaining
        provisions of this agreement. This agreement will survive the
        performance of the specific arrangements herein. This agreement is
        binding on and shall inure to the benefit of the Company and you and
        each of our respective heirs, executors, administrators, successors and
        assigns.

16.     This agreement constitutes the entire agreement relating to the matters
        set forth herein between the parties hereto and supercedes any and all
        other agreement, understandings, negotiations, or discussions, either
        oral or written, express or implied, between the parties hereto. Each
        party acknowledges that no representations, inducements, promises,
        agreements or warranties, oral or otherwise, have been made by either
        party, or anyone acting on either party's behalf, which are not embodied
        in this agreement, and that neither party has executed this agreement in
        reliance on any such representation, inducement, promise, agreement or
        warranty, and that no such representation, inducement, promise,
        agreement or warranty not contained in this agreement, including, but
        not limited to, any purported supplements, modification, waivers or
        terminations of this agreement shall be valid or binding, unless
        executed in writing by both you and the Company.

17.     This agreement shall be governed by the laws of the State of Idaho.

Please acknowledge your agreement to the terms contained herein by executing and
returning this original signed agreement in the self-addressed envelope provided
herewith.

                                            Very truly yours,

                                            /s/ John Sims

                                            John Sims
                                            Executive Vice President and
                                            General Counsel

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Mr. C. J. Gabriel, Jr.
May 5, 2005

     Agreed and accepted this  5/9/05  day of 2005.
                              --------

     By: /s/ Clarence J. Gabriel
         -----------------------------------
         Clarence J. Gabriel

                                                                               8<PAGE>

                                                                   EXHIBIT 10.60

               FORM OF AWARD OF DEFERRABLE RESTRICTED STOCK UNITS
                                   (2004 PLAN)

      Pursuant to Section 7 of the Albertson's, Inc. 2004 Equity and Performance
Incentive Plan (the "Plan"), ___________ (the "Participant"), an officer or
other key employee of Albertson's, Inc. or one or more of its Subsidiaries (the
"Company") is hereby awarded units representing ______ shares of common stock,
$1.00 par value, of the Company (the "Deferrable Restricted Stock Units"), on
__________ (the "Date of Grant"), upon the terms and conditions set forth in
this Award Agreement (this "Agreement") and in the Plan.

1.    GRANT OF DEFERRABLE RESTRICTED STOCK UNITS; PAYMENT OF DIVIDEND
      EQUIVALENTS.

      (a)   Each Deferrable Restricted Stock Unit represents a hypothetical
            share of the Company's common stock, $1.00 par value (the "Stock").
            The Deferrable Restricted Stock Units will be credited to an account
            established for the Participant.

      (b)   On each date a cash dividend is distributed with respect to the
            Stock, an amount equal to such dividend per share, multiplied by the
            number of Deferrable Restricted Stock Units then credited to the
            Participant's account, will be paid in cash to the Participant.

2.    VESTING.

      (a)   The Deferrable Restricted Stock Units will vest as follows: [VESTING
            SCHEDULE TO BE INSERTED] (each, a "Vesting Date"), provided that the
            Participant has been continuously employed as an employee of the
            Company from the Date of Grant through the applicable Vesting Date.
            For purposes of this Agreement, "continuously employed" shall mean
            the absence of any interruption or termination of employment with
            the Company or with a person or entity controlling, controlled by or
            under common control with the Company (an "Affiliate"). Continuous
            employment shall not be considered interrupted or terminated in the
            case of sick leave, military leave or any other leave of absence
            approved by the Company or in the case of transfers between
            locations of the Company or its Affiliates.

      (b)   Notwithstanding Section 2(a) above, all Deferrable Restricted Stock
            Units subject to this Agreement will become immediately vested upon
            the occurrence of a Change in Control of the Company.

      (c)   Except as provided in Section 2(d) below, upon a termination of
            employment under involuntary or voluntary terms, including
            retirement, any Deferrable Restricted Stock Units that were not
            vested as of such date of termination of employment will be
            forfeited and the Company will have no further obligation with
            respect to thereto.

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      (d)   Upon the Participant's termination of employment for reasons of
            death or permanent disability, a pro-rata portion of the Deferrable
            Restricted Stock Units will vest. The pro-rata portion will be
            calculated by multiplying the full number of Deferrable Restricted
            Stock Units granted hereunder by a fraction, the numerator of which
            is the number of complete weeks from the Date of Grant to the date
            of the Participant's death or permanent disability determination,
            and the denominator of which is 260 (representing the total number
            of weeks in the vesting period). The excess of the number of
            Deferrable Restricted Stock Units resulting from this calculation
            over the number of Deferrable Restricted Stock Units that have
            previously vested pursuant to Section 2(a) will become vested on the
            date of the Participant's death or permanent disability.

3.    NON-ASSIGNABLE/NON-TRANSFERABLE. This Agreement and the Deferrable
      Restricted Stock Units are not assignable or transferable by the
      Participant (voluntarily or by operation of law) prior to issuance as set
      forth in Section 4 below; provided, however, that no provision in this
      Agreement will prevent the transfer of the Deferrable Restricted Stock
      Units or the shares of Stock underlying such Deferrable Restricted Stock
      Units by will or the laws of descent and distribution in the event of the
      death of the Participant.

4.    ISSUANCE OF THE STOCK.

      (a)   Except as provided in Section 4(c) or Section 4(d) below, the
            Company will issue to the Participant (or to the estate, guardian or
            beneficiary of the Participant, as the case may be) the Stock
            underlying the vested Deferrable Restricted Stock Units upon the
            later of (i) each Vesting Date or (ii) the specified payout date
            elected by the Participant in an election (an "Initial Election")
            made at the time of grant and in accordance with Section 409A of the
            Internal Revenue Code of 1986, as amended (the "Code"), if any
            ("Issue Dates").

      (b)   The Participant may elect, in the manner and form prescribed by the
            Company (the "Deferral Election"), to delay the issuance of the
            Stock pursuant to Section 4(a).

            (i)   If permitted by Section 409A of the Code, such Deferral
                  Election may apply to less than all of the shares of Stock
                  underlying the Participant's Deferrable Restricted Stock
                  Units.

            (ii)  Unless otherwise permitted in accordance with Section 409A of
                  the Code, a Deferral Election will not be effective unless (A)
                  in the case of a distribution made by reason of a specified
                  time or a fixed schedule, the Deferral Election is made not
                  less than twelve months prior to the first date that issuance
                  would have been made absent such Deferral Election, (B) the
                  initial issuance under such Deferral Election will be made no
                  less than five years from the date payment would have been
                  made absent such Deferral Election (excluding issuance on
                  account of the death or disability of the Participant), and
                  (C) such Deferral Election will not take effect until twelve
                  months after the date on which the Deferral Election is made.

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      (c)   If the Participant makes an Initial Election (or a Deferral Election
            in accordance with Section 4(b) above), the Company will issue to
            the Participant (or to the estate, guardian or beneficiary of the
            Participant, as the case may be) the Stock underlying the vested
            Deferrable Restricted Stock Units so deferred upon the date selected
            by the Participant in the Initial Election (or Deferral Election, if
            applicable). Notwithstanding the foregoing, in the event of a Change
            in Control:

            (i)   The Company will immediately issue to the Participant the
                  Stock underlying those Deferrable Restricted Stock Units that
                  become fully vested solely due to the occurrence of the Change
                  in Control pursuant to Section 2(b);

            (ii)  The Company will immediately issue to the Participant the
                  Stock underlying those vested Deferrable Restricted Stock
                  Units that meet the "short-term deferral" exception set forth
                  in Q/A 4(c) of Internal Revenue Service Notice 2005-1 or any
                  subsequent guidance promulgated under Section 409A of the
                  Code; and

            (iii) The Company will issue to the Participant (or to the estate,
                  guardian or beneficiary of the Participant, as the case may
                  be), the Stock underlying the remaining vested Deferrable
                  Restricted Stock Units upon the earliest of (A) the occurrence
                  of a "change in ownership or effective control" of the
                  Company, or a "change in the ownership of a substantial
                  portion of the assets" of the Company (as such terms are
                  defined in Section 409A of the Code), (B) the Participant's
                  "separation from service" (within the meaning of Section 409A
                  of the Code); provided, however, that if the Participant is a
                  "specified employee" of the Company or an Affiliate on the
                  date of the Participant's separation from service, the Company
                  will issue the Stock underlying the vested Deferrable
                  Restricted Stock Units to the Participant six months following
                  the Participant's separation from service (or, if earlier, the
                  Participant's date of death), or (C) the date selected by the
                  Participant in the Initial Election (or Deferral Election, if
                  applicable).

      (d)   Notwithstanding any provision of this Agreement to the contrary, the
            Company will issue to the Participant (or to the estate, guardian or
            beneficiary of the Participant, as the case may be) the Stock
            underlying the vested Deferrable Restricted Stock Units immediately
            upon the Participant's death or becoming disabled (within the
            meaning of Section 409A of the Code).

      (e)   Except to the extent provided by Section 409A and permitted by the
            Company, no Stock may be issued to the Participant at a time earlier
            than otherwise expressly provided in this Agreement.

      (f)   The Company's obligations to the Participant with respect to the
            Deferrable Restricted Stock Units will be satisfied in full upon the
            issuance of shares of Stock corresponding to such Deferrable
            Restricted Stock Units.

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5.    DETRIMENTAL ACTIVITY.

      (a)   If the Participant, either during employment by the Company or
            within one year after termination of such employment, shall engage
            in any Detrimental Activity (as defined below), and the Board of
            Directors of the Company shall so find, and (except for any
            Detrimental Activity described in Section 5(c)(iv)(B)) the
            Participant shall not have ceased all Detrimental Activity within 30
            days after notice of such finding given within one year after
            commencement of such Detrimental Activity, the Participant shall:

            (i)   Forfeit any Deferrable Restricted Stock Units then held by the
                  Participant;

            (ii)  Return to the Company, all shares of Stock that the
                  Participant has not disposed of that were issued to the
                  Participant pursuant to this Agreement within a period of one
                  year prior to the date of the commencement of such Detrimental
                  Activity; and

            (iii) With respect to any shares of Stock that the Participant has
                  disposed of that were issued to the Participant pursuant to
                  this Agreement within a period of one year prior to the date
                  of the commencement of such Detrimental Activity, pay to the
                  Company in cash the closing price of the shares of such Stock
                  on the New York Stock Exchange on the date of issuance
                  pursuant to this Agreement (or on the last trading day prior
                  to such issuance, if there was no trading on the date of
                  issuance).

      (b)   To the extent that such amounts are not paid to the Company, the
            Company may, in addition to all other remedies at law or in equity,
            set off the amounts so payable to it against any amounts that may be
            owing from time to time by the Company to the Participant, whether
            as wages, deferred compensation or vacation pay or in the form of
            any other benefit or for any other reason.

      (c)   For purposes of this Agreement, the term "Detrimental Activity"
            shall include:

            (i)   Without the prior written consent of the Company, engaging in
                  any activity, as an employee, director, principal, agent, or
                  consultant for another entity, and in a capacity, that
                  directly competes with the Company in any business activity
                  (or in any business activity which was under active
                  development while the Participant was employed by the Company
                  if such development is being actively pursued by the Company
                  during the one-year period referred to in this Section 5) for
                  which the Participant has had any direct responsibility and
                  direct involvement during the last two years of his or her
                  employment with the Company, in any territory in which the
                  Company engages in such business activity.

            (ii)  Soliciting any employee of the Company to terminate his or her
                  employment with the Company.

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            (iii) The disclosure to anyone outside the Company, or the use in
                  other than the Company's business, without prior written
                  authorization from the Company, of any confidential,
                  proprietary or trade secret information or material relating
                  to the business of the Company, acquired by the Participant
                  during his or her employment with the Company or while acting
                  as a consultant for the Company thereafter.

            (iv)  Activity that results in termination for "cause". For the
                  purposes of this Section, termination for "cause" shall mean a
                  termination:

                  (A)   Due to the Participant's willful and continuous gross
                        neglect of his or her duties for which he or she is
                        employed; or

                  (B)   Due to an act of dishonesty on the part of the
                        Participant constituting a felony resulting or intended
                        to result, directly or indirectly, in his or her gain
                        for personal enrichment at the expense of the Company.

6.    RIGHTS OF PARTICIPANT.

      (a)   The Participant will not have any rights as a stockholder with
            respect to any shares of Stock issuable pursuant to the Deferrable
            Restricted Stock Units until the date on which a stock certificate
            (or certificates) representing such Stock is issued.

      (b)   The obligations of the Company under this Agreement will be merely
            that of an unfunded and unsecured promise of the Company to deliver
            shares of Stock in the future and to pay cash in respect of
            dividends from time to time, and the rights of the Participant will
            be no greater than that of an unsecured general creditor. No assets
            of the Company will be held or set aside as security for the
            obligations of the Company under this Agreement.

7.    ADJUSTMENTS. The number of shares of Stock issuable pursuant to the
      Deferrable Restricted Stock Units is subject to adjustment as provided in
      Section 12 of the Plan.

8.    AMERICAN JOBS CREATION ACT.

      (a)   It is intended that this Agreement and its administration comply
            with the provisions of Section 409A of Code. Notwithstanding any
            provision in this Agreement to the contrary, this Agreement will be
            interpreted, applied and to the minimum extent necessary, amended in
            the sole discretion of the Company, so that the Agreement does not
            fail to meet, and is operated in accordance with the requirements of
            paragraphs (2), (3) and (4) of Section 409A of the Code.

      (b)   It is intended that, to the extent applicable, all Participant
            elections hereunder will comply with Section 409A of the Code. The
            Company is authorized to adopt rules or regulations deemed necessary
            or appropriate in connection therewith to anticipate and/or comply
            with the requirements thereof.

                                       5
<PAGE>

9.    NOTICES. Notices hereunder will be mailed or delivered to the Company,
      Compensation Department, Albertson's, Inc., P.O. Box 20, Boise, Idaho
      83726 and will be mailed to or delivered to the Participant at the
      Participant's address set forth in the payroll records of the Company, or
      in either case, at such other address as one party may subsequently
      furnish to the other party in writing.

10.   NO EMPLOYMENT RIGHTS. This award will not confer upon the Participant any
      right with respect to continuance of employment by the Company, nor will
      it interfere in any way with any right of the Company to terminate the
      Participant's employment at any time.

11.   GOVERNING LAW. The laws of the State of Delaware will govern this award
      and all matters related hereto.

12.   SEVERABILITY. In the event that one or more of the provisions of this
      Agreement shall be invalidated for any reason by a court of competent
      jurisdiction, any provision so invalidated shall be deemed to be separable
      from the other provisions hereof, and the remaining provisions hereof
      shall continue to be valid and fully enforceable.

13.   INTERPRETATION. Any reference in this Agreement to Section 409A of the
      Code will also include any proposed, temporary or final regulations, or
      any other guidance, promulgated with respect to such Section by the U.S.
      Department of the Treasury or the Internal Revenue Service. Except as
      expressly provided in this Agreement, capitalized terms used herein will
      have the meaning ascribed to such terms in the Plan.

14.   SUBJECT TO PLAN. This award is subject to the terms of the Plan. To the
      extent any provision of this Agreement violates or is inconsistent with an
      express provision of the Plan, the Plan provision will govern and any
      inconsistent provision in this Agreement will have no force or effect.

15.   TAXES. The Participant will pay to the Company, on demand, any taxes the
      Company reasonably determines it is required to withhold under applicable
      tax laws with respect to the Deferrable Restricted Stock Units or the
      issuance of Stock pursuant to this award. To the extent that Stock is
      issuable to the Participant when the tax withholding obligation arises,
      the tax withholding obligation shall be satisfied by the Company
      withholding shares of Stock otherwise issuable pursuant to this award in
      order to satisfy the minimum tax withholding amount permissible under the
      method that results in the least amount withheld.

16.   COUNTERPARTS. This Agreement may be executed in two or more counterparts,
      each of which will be an original but all of which together will represent
      one and the same agreement.

                                       6
<PAGE>

17.   AMENDMENTS/ENTIRE AGREEMENT. Any amendment to the Plan will be deemed to
      be an amendment to this Agreement. Except as provided in this Agreement,
      no amendment will adversely affect the number or value of the
      Participant's Deferrable Restricted Stock Units without the Participant's
      written consent. This Agreement cannot be changed or terminated orally.
      The Agreement and the Plan contain the entire agreement between the
      parties relating to the subject matter hereof.

      PARTICIPANT                              ALBERTSON'S, INC.

      _____________________________            By:___________________________

                                               Title:

                                       7

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