Document:

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                                                                   Exhibit 4.3.1

     FIFTEENTH SUPPLEMENTAL INDENTURE, dated as of January 28, 2003, between The
Kroger Co., a corporation duly organized and existing under the laws of the
State of Ohio (herein called the "Company"), having its principal office at 1014
Vine Street, Cincinnati, Ohio 45202, the Guarantors listed on the signature
pages and Schedule I hereto (each, a "Guarantor") and U.S. Bank, N.A. (formerly
known as Firstar Bank, N.A.), a banking corporation duly organized and existing
under the laws of the State of Ohio, as Trustee (herein called the "Trustee").

                             RECITALS OF THE COMPANY

     The Company has heretofore executed and delivered to the Trustee an
Indenture dated as of June 25, 1999 (the "Indenture"), providing for the
issuance from time to time of the Company's unsecured debentures, notes or other
evidences of indebtedness (herein and therein called the "Securities"), to be
issued in one or more series as in the Indenture provided.

     Section 201 of the Indenture permits the form of the Securities of any
series to be established pursuant to an indenture supplemental to the Indenture.

     Section 301 of the Indenture permits the terms of the Securities of any
series to be established in an indenture supplemental to the Indenture.

     Section 901(7) of the Indenture provides that, without the consent of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee, at
any time and from time to time, may enter into one or more indentures
supplemental to the Indenture for the purpose of establishing the form or terms
of Securities of any series as permitted by Sections 201 and 301 of the
Indenture.

     Each of the Guarantors has duly authorized the issuance of a guarantee of
the Securities, as set forth herein, and to provide therefor, each of the
Guarantors has duly authorized the execution and delivery of this Fifteenth
Supplemental Indenture.

     The Company and the Guarantors, pursuant to the foregoing authority,
propose in and by this Fifteenth Supplemental Indenture to establish the terms
and form of the Securities of a new series and to amend and supplement the
Indenture in certain respects with respect to the Securities of such series.

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     All things necessary to make this Fifteenth Supplemental Indenture a valid
agreement of the Company and the Guarantors, and a valid amendment of and
supplement to the Indenture, have been done.

     NOW, THEREFORE, THIS FIFTEENTH Supplemental Indenture WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities
by the Holders thereof, it is mutually agreed, for the equal and proportionate
benefit of all Holders of the Securities of the series to be created hereby, as
follows:

                                   ARTICLE ONE

                                   DEFINITIONS

Section 101. DEFINITIONS.

     (a) For all purposes of this Fifteenth Supplemental Indenture:

          (1) Capitalized terms used herein without definition shall have the
     meanings specified in the Indenture;

          (2) All references herein to Articles and Sections, unless otherwise
     specified, refer to the corresponding Articles and Sections of this
     Fifteenth Supplemental Indenture and, where so specified, to the Articles
     and Sections of the Indenture as supplemented by this Fifteenth
     Supplemental Indenture; and

          (3) The terms "hereof", "herein", "hereby", "hereto", "hereunder" and
     "herewith" refer to this Fifteenth Supplemental Indenture.

     (b) For all purposes of the Indenture and this Fifteenth Supplemental
Indenture, with respect to the Securities of the series created hereby, except
as otherwise expressly provided or unless the context otherwise requires:

          "Adjusted Treasury Rate" means, with respect to any Redemption Date,
     the rate per annum equal to the semi-annual equivalent yield to maturity of
     the Comparable Treasury Issue, assuming a price for the Comparable Treasury
     Issue (expressed as a percentage of its principal amount) equal to the
     Comparable Treasury Price for such Redemption Date.

          "Attributable Debt" means, in connection with a Sale and Lease-Back
     Transaction, as of any particular time, the aggregate of present values
     (discounted at a rate per annum equal to the interest rate borne by the
     Securities of the series created by this Fifteenth Supplemental Indenture)
     of the obligations of the Company or any

                                      - 2 -

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     Restricted Subsidiary for net rental payments during the remaining primary
     term of the applicable lease, calculated in accordance with generally
     accepted accounting principles. The term "net rental payments" under any
     lease for any period shall mean the sum of the rental and other payments
     required to be paid in such period by the lessee thereunder, not including,
     however, any amounts required to be paid by such lessee (whether or not
     designated as rental or additional rental) on account of maintenance and
     repairs, reconstruction, insurance, taxes, assessments, water rates,
     operating and labor costs or similar charges required to be paid by such
     lessee thereunder or any amounts required to be paid by such lessee
     thereunder contingent upon the amount of sales, maintenance and repairs,
     reconstruction, insurance, taxes, assessments, water rates or similar
     charges.

          "Business Day" means any day other than a Saturday or Sunday or a day
     on which banking institutions in New York City or Cincinnati, Ohio are
     authorized or obligated by law or executive order to close.

          "Capital Lease" means any lease of property which, in accordance with
     generally accepted accounting principles, should be capitalized on the
     lessee's balance sheet or for which the amount of the asset and liability
     thereunder as if so capitalized should be disclosed in a note to such
     balance sheet; and "Capitalized Lease Obligation" means the amount of the
     liability which should be so capitalized or disclosed.

          "Comparable Treasury Issue" means the United States Treasury security
     selected by a Quotation Agent as having a maturity comparable to the
     remaining term of the Securities to be redeemed that would be utilized, at
     the time of selection and in accordance with customary financial practice,
     in pricing new issues of corporate debt securities of comparable maturity
     to the remaining term of such Securities.

          "Comparable Treasury Price" means, with respect to any Redemption
     Date, (i) the average of the Reference Treasury Dealer Quotations, after
     excluding the highest and lowest such Reference Treasury Dealer Quotations
     for such Redemption Date, or (ii) if the Trustee obtains fewer than three
     such Reference Treasury Dealer Quotations, the average of all such
     Quotations.

          "Consolidated Net Tangible Assets" means, for the Company and its
     Subsidiaries on a consolidated basis determined in accordance with
     generally accepted accounting principles, the aggregate amounts of assets
     (less depreciation and valuation

                                      - 3 -

<PAGE>

     reserves and other reserves and items deductible from gross book value of
     specific asset accounts under generally accepted accounting principles)
     which under generally accepted accounting principles would be included on a
     balance sheet after deducting therefrom (a) all liability items except
     deferred income taxes, commercial paper, short-term bank Indebtedness,
     Funded Indebtedness, other long-term liabilities and shareholders' equity
     and (b) all goodwill, trade names, trademarks, patents, unamortized debt
     discount and expense and other like intangibles, which in each case would
     be so included on such balance sheet.

          "Credit Facility" means any credit agreement, loan agreement or credit
     facility, whether syndicated or not, involving the extension of credit by
     banks or other credit institutions, entered into by the Company or Fred
     Meyer, Inc. and outstanding on the date of this Fifteenth Supplemental
     Indenture, and any refinancing or other restructuring of such agreement or
     facility.

          "Funded Indebtedness" means any Indebtedness maturing by its terms
     more than one year from the date of the determination thereof, including
     (i) any Indebtedness having a maturity of 12 months or less but by its
     terms renewable or extendible at the option of the obligor to a date later
     than 12 months from the date of the determination thereof and (ii) rental
     obligations payable more than 12 months from the date of determination
     thereof under Capital Leases (such rental obligations to be included as
     Funded Indebtedness at the amount so capitalized at the date of such
     computation and to be included for the purposes of the definition of
     Consolidated Net Tangible Assets both as an asset and as Funded
     Indebtedness at the amount so capitalized).

          "Non-Restricted Subsidiary" means any Subsidiary that the Company's
     Board of Directors has in good faith declared pursuant to a written
     resolution not to be of material importance, either singly or together with
     all other Non-Restricted Subsidiaries, to the business of the Company and
     its consolidated Subsidiaries taken as a whole.

          "Operating Assets" means all merchandise inventories, furniture,
     fixtures and equipment (including all transportation and warehousing
     equipment but excluding office equipment and data processing equipment)
     owned or leased pursuant to Capital Leases by the Company or a Restricted
     Subsidiary.

          "Operating Property" means all real property and improvements thereon
     owned or leased pursuant to Capital Leases by the Company or a Restricted
     Subsidiary and constituting,

                                      - 4 -

<PAGE>

     without limitation, any store, warehouse, service center or distribution
     center wherever located, provided that such term shall not include any
     store, warehouse, service center or distribution center which the Company's
     Board of Directors declares by written resolution not to be of material
     importance to the business of the Company and its Restricted Subsidiaries.

          "Quotation Agent" means the Reference Treasury Dealer appointed by the
     Company.

          "Reference Treasury Dealer" means (i) J.P. Morgan Securities, Inc. and
     its successors; provided, however, that if the foregoing shall cease to be
     a primary U.S. Government securities dealer in New York City (a "Primary
     Treasury Dealer"), the Company shall substitute therefor another Primary
     Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the
     Company.

          "Reference Treasury Dealer Quotations" means, with respect to each
     Reference Treasury Dealer and any Redemption Date, the average, as
     determined by the Company, of the bid and asked prices for the Comparable
     Treasury Issue (expressed in each case as a percentage of its principal
     amount) quoted in writing to the Trustee by such Reference Treasury Dealer
     at 5:00 p.m. on the third Business Day preceding such Redemption Date.

          "Restricted Subsidiaries" means all Subsidiaries other than
     Non-Restricted Subsidiaries.

          "Sale and Lease-Back Transaction" has the meaning specified in Section
     1010.

          "Subsidiary" means (i) any corporation or other entity of which
     securities or other ownership interests having ordinary voting power to
     elect a majority of the board of directors or other persons performing
     similar functions are at the time directly or indirectly owned by the
     Company and/or one or more Subsidiaries or (ii) any partnership of which
     more than 50% of the partnership interest is owned by the Company or any
     Subsidiary.

                                   ARTICLE TWO

                                 SECURITY FORMS

Section 201. FORM OF SECURITIES OF THIS SERIES.

     The Securities of this series shall be in the form set forth in this
Article.

                                      - 5 -

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Section 202. FORM OF FACE OF SECURITY.

     This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary or a
nominee of a Depositary. This Security is not exchangeable for Securities
registered in the name of a Person other than the Depositary or its nominee
except in the limited circumstances described in the Indenture, and no transfer
of this Security (other than a transfer of this Security as a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary) may be registered except in
the limited circumstances described in the Indenture.

     Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to The Kroger Co. or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

                                 THE KROGER CO.

                           5.50% Senior Notes due 2013

CUSIP No. 501044 CE 9

ISIN No. US 501044 CE 98                                              $

     The Kroger Co., a corporation duly organized and existing under the laws of
the State of Ohio (herein called the "Company", which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to , or registered assigns, the principal sum
of $ on February 1, 2013 and to pay interest thereon from January 28, 2003, or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually on February 1 and August 1 in each year,
commencing August 1, 2003 at the rate of interest of 5.50% per annum until the
principal hereof is paid or made available for payment. Interest on the Security
will be computed on the basis of a 360-day year of twelve 30-day months. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the January 15 or July 15 (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the

                                      - 6 -

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Securities of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and interest on this
Security will be made at the office or agency of the Company maintained for that
purpose in Cincinnati, Ohio, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts; PROVIDED, HOWEVER, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register.

     In the case where any Interest Payment Date or the maturity date of this
Security does not fall on a Business Day, payment of interest or principal
otherwise payable on such day need not be made on such day, but may be made on
the next succeeding Business Day with the same force and effect as if made on
such Interest Payment Date or the maturity date of this Security.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated: January 28, 2003

                                        THE KROGER CO.

                                       By
                                         ----------------------------------
Attest:
       -------------------------------

     This is one of the Securities of the series designated therein referred to
in the within mentioned Indenture.

                                      - 7 -

<PAGE>

                                        U.S. BANK, N.A.,
                                        as Trustee

                                       By
                                          --------------------------------------
                                           Authorized Officer

Attest:

------------------------

Section 203. FORM OF REVERSE OF SECURITY.

     This Security is one of a duly authorized issue of Securities of the
Company (including the related Guarantees, the "Securities") issued and to be
issued under an Indenture dated as of June 25, 1999, as supplemented by the
First Supplemental Indenture dated as of June 25, 1999, the Second Supplemental
Indenture dated as of June 25, 1999, the Third Supplemental Indenture dated as
of June 25, 1999, the Fourth Supplemental Indenture dated as of September 22,
1999, the Fifth Supplemental Indenture dated as of September 22, 1999, the Sixth
Supplemental Indenture dated as of September 22, 1999, the Seventh Supplemental
Indenture dated as of February 11, 2000, the Eighth Supplemental Indenture dated
as of February 11, 2000, the Ninth Supplemental Indenture dated as of August 21,
2000, the Tenth Supplemental Indenture dated as of May 11, 2001, the Eleventh
Supplemental Indenture dated as of May 11, 2001, the Twelfth Supplemental
Indenture dated as of August 16, 2001, the Thirteenth Supplemental Indenture
dated as of April 3, 2002, the Fourteenth Supplemental Indenture dated as of
June 17, 2002, and the Fifteenth Supplemental Indenture dated as of January 28,
2003 (as so supplemented, herein called the "Indenture"), each between the
Company and the Guarantors named therein, and Firstar Bank, N.A. (now known as
U.S. Bank, N.A.), as Trustee (herein called the "Trustee", which term includes
any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Guarantors named therein, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof, initially limited in aggregate principal amount to
$500,000,000.

     The Company may from time to time, without notice to or consent of the
registered holders of the Securities issue further Securities ("Additional
Securities"). The Additional Securities will rank equal with the Securities in
all respects (or in all respects other than the payment of interest accruing
prior to the issue date of the Additional Securities, or except for the first
payment of interest following the issue date of the Additional Securities). The
Additional Securities may be consolidated and form a single series with the
Securities and may have the same terms as to status, redemption, or otherwise,
as the Securities.

     The Securities of this series will be redeemable, in whole or in part, at
the option of the Company at any time at a redemption price equal to the greater
of (i) 100% of the principal amount of such Securities or (ii) as determined by
a Quotation Agent, the sum of the

                                      - 8 -

<PAGE>

present values of the remaining scheduled payments of principal and interest
thereon (not including any portion of such payments of interest accrued as of
the date of redemption) discounted to the date of redemption on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the
Adjusted Treasury Rate plus 25 basis points, plus, in each case, accrued
interest thereon to the date of redemption.

     Notice of any redemption will be mailed at least 30 days but not more than
60 days before the Redemption Date to each holder of the Securities to be
redeemed. Unless the Company defaults in payment of the redemption price, on and
after the Redemption Date, interest will cease to accrue on the Securities or
portions thereof called for redemption.

     The Indenture contains provisions for defeasance at any time of (i) the
entire indebtedness of this Security or (ii) certain restrictive covenants and
Events of Default with respect to this Security, in each case upon compliance
with certain conditions set forth therein.

     If an Event of Default shall occur and be continuing, the principal of all
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of 50% in aggregate principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all the Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange therefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     As set forth in, and subject to, the provisions of the Indenture, no Holder
of any Security will have any right to institute any proceeding with respect to
the Indenture or for any remedy thereunder, unless such Holder shall have
previously given to the Trustee written notice of a continuing Event of Default,
the Holders of not less than 25% in principal amount of the Outstanding
Securities shall have made written request, and offered reasonable indemnity, to
the Trustee to institute such proceeding as trustee, and the Trustee shall not
have received from the Holders of a majority in principal amount of the
Outstanding Securities a direction inconsistent with such request and shall have
failed to institute such proceeding within 60 days; PROVIDED, HOWEVER, that such
limitations do not apply to a suit instituted by the Holder hereof for the
enforcement of payment of the principal of (and premium, if any) or any interest
on this Security on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and

                                      - 9 -

<PAGE>

unconditional, to pay the principal of and any premium and interest on this
Security at the times, place and rate, and in the coin or currency, herein
prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registerable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and any premium and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

     The Securities are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities are
exchangeable for a like aggregate principal amount of Securities of like tenor,
of a different authorized denomination, as requested by the Holder surrendering
the same.

     Except where otherwise specifically provided in the Indenture, no service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

Section 204. FORM OF GUARANTEE.

     The form of Guarantee shall be set forth on the Securities substantially as
follows:

                                    GUARANTEE

     For value received, each of the undersigned hereby absolutely, fully and
unconditionally and irrevocably guarantees, jointly and severally with each
other Guarantor, to the holder of the Security on which this Guarantee is
endorsed the payment of principal of, premium, if any, and interest on such
Security in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and
interest, if any, of such Security, if lawful, and the payment or performance of
all other obligations of the Company under the Indenture or such Security, to
the holder of such Security and the Trustee, all in accordance with and subject
to the terms and limitations of such Security and Article Five

                                     - 10 -

<PAGE>

of the Fifteenth Supplemental Indenture to the Indenture. This Guarantee will
not become effective until the Trustee duly executes the certificate of
authentication on this Guarantee. This Guarantee shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to conflict of law principles thereof.

Dated: January 28, 2003

                               Each of the Guarantors Listed on Schedule I
                               hereto, as Guarantor of the Securities

                               By:
                                  ----------------------------------------
                                     Name:

                                     Title:

                                     - 11 -

<PAGE>

                                  QUEEN CITY ASSURANCE, INC.,
                                  as Guarantor of the Securities
                                  RJD ASSURANCE, INC.,
                                  as Guarantor of the Securities
                                  VINE COURT ASSURANCE INCORPORATED,
                                  as Guarantor of the Securities

                                  By
                                    --------------------------------------------
                                     Name:  Bruce M. Gack
                                     Title: Senior Vice President/Vice President

                                  RICHIE'S INC., as Guarantor of the Securities,
                                  ROCKET NEWCO, INC.,
                                  as Guarantor of the Securities
                                  HENPIL, INC.,
                                  as Guarantor of the Securities

                                  By:
                                      ------------------------------------------
                                      Name:  Paul Schweitzer
                                      Title: President/Vice President

                                     - 12 -

<PAGE>

This is one of the Guarantees referred to in the within mentioned Indenture.

Attest:                                     U.S. BANK, N.A.
                                            as Trustee

----------------------------                By:
                                               ---------------------------------
                                               Name:
                                               Title:

                                     - 13 -

<PAGE>

                                   SCHEDULE I

                                   Guarantors

Name of Guarantor                                        State of Organization
-----------------                                        ---------------------

Alpha Beta Company                                       California
Bay Area Warehouse Stores, Inc.                          California
Bell Markets, Inc.                                       California
Cala Co.                                                 Delaware
Cala Foods, Inc.                                         California
CB&S Advertising Agency, Inc.                            Oregon
Crawford Stores, Inc.                                    California
Dillon Companies, Inc.                                   Kansas
Dillon Real Estate Co., Inc.                             Kansas
Distribution Trucking Company                            Oregon
Drugs Distributors, Inc.                                 Indiana
F4L L.P.                                                 Ohio
FM, Inc.                                                 Utah
FMJ, Inc.                                                Delaware
Food 4 Less GM, Inc.                                     California
Food 4 Less Holdings, Inc.                               Delaware
Food 4 Less Merchandising, Inc.                          California
Food 4 Less of California, Inc.                          California
Food 4 Less of Southern California, Inc.                 Delaware
Fred Meyer, Inc.                                         Delaware
Fred Meyer Jewelers, Inc.                                California
Fred Meyer Stores, Inc.                                  Delaware
Hughes Markets, Inc.                                     California
Hughes Realty, Inc.                                      California
Inter-American Foods, Inc.                               Ohio
Junior Food Stores of West Florida, Inc.                 Florida
J.V. Distributing, Inc.                                  Michigan
KRGP Inc.                                                Ohio
KRLP Inc.                                                Ohio
The Kroger Co. of Michigan                               Michigan
Kroger Dedicated Logistics Co.                           Ohio
Kroger Group Cooperative, Inc.                           Ohio
Kroger Limited Partnership I                             Ohio
Kroger Limited Partnership II                            Ohio
Kroger Texas L.P.                                        Ohio
Kwik Shop, Inc.                                          Kansas
Mini Mart, Inc.                                          Wyoming
Peyton's-Southeastern, Inc.                              Tennessee
QFC Sub, Inc.                                            Washington
Quality Food Centers, Inc.                               Washington
Quality Food Holdings, Inc.                              Delaware

                                     - 14 -

<PAGE>

Name of Guarantor                                        State of Organization
-----------------                                        ---------------------

Quality Food, Inc.                                       Delaware
Quik Stop Markets, Inc.                                  California
Ralphs Grocery Company                                   Delaware
Second Story, Inc.                                       Washington
Smith's Beverage of Wyoming, Inc.                        Wyoming
Smith's Food & Drug Centers, Inc.                        Delaware
THGP Co., Inc.                                           Pennsylvania
THLP Co., Inc.                                           Pennsylvania
Topvalco, Inc.                                           Ohio
Turkey Hill, L.P.                                        Pennsylvania
Wells Aircraft, Inc.                                     Kansas

                                     - 15 -

<PAGE>

                                  ARTICLE THREE

                            THE SERIES OF SECURITIES

Section 301. TITLE AND TERMS.

     There shall be a series of Securities designated as the "5.50% Senior Notes
due 2013" of the Company. Their Stated Maturity shall be February 1, 2013, and
they shall bear interest at the rate of 5.50% per annum.

     Interest on the Securities of this series will be payable semi-annually on
February 1 and August 1 of each year, commencing August 1, 2003, until the
principal thereof is made available for payment. Interest on the Securities of
this series will be computed on the basis of a 360-day year of twelve 30-day
months. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will be paid to the Person in whose name the
Securities of this series (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the January 15 or July 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date.

     In the case where any Interest Payment Date or the maturity date of the
Securities of this series does not fall on a Business Day, payment of interest
or principal otherwise payable on such date need not be made on such day, but
may be made on the next succeeding Business Day with the same force and effect
as if made on such Interest Payment Date or the maturity date of the Securities
of this series.

     The aggregate principal amount of Securities of this series which may be
authenticated and delivered under this Fifteenth Supplemental Indenture is
initially limited to $500,000,000, except for Securities authenticated and
delivered upon registration or transfer of, or in exchange for, or in lieu of,
other Securities of this series pursuant to Section 304, 305 and 306 of the
Indenture and except for any Securities of this series which, pursuant to
Section 303 of the Indenture, are deemed never to have been authenticated and
delivered under the Indenture. Notwithstanding the foregoing, the Company may
from time to time, without notice to or consent of the registered holders of the
Securities issue further Securities ("Additional Securities"). The Additional
Securities will rank equal with the Securities in all respects (or in all
respects other than the payment of interest accruing prior to the issue date of
the Additional Securities, or except for the first payment of interest following
the issue date of the Additional Securities). The Additional Securities may be
consolidated and form a single series with the Securities and may have the same
terms as to status, redemption, or otherwise, as the Securities.

     The Securities of this series will be represented by two or more Global
Securities representing the entire $500,000,000 aggregate principal amount of
the Securities of this series (as such amount may be increased by the Additional
Securities), and the Depositary with respect to such Global Security or Global
Securities will be The Depository Trust Company.

                                     - 16 -

<PAGE>

     The Place of Payment for the principal of (and premium, if any) and
interest on the Securities of this series shall be the office or agency of the
Company in the City of Cincinnati, State of Ohio, maintained for such purpose,
which shall be the Corporate Trust Office of the Trustee and at any other office
or agency maintained by the Company for such purpose; PROVIDED, HOWEVER, that at
the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register.

     The Securities of this series are redeemable prior to maturity at the
option of the Company as provided in this Fifteenth Supplemental Indenture.

     The Securities of this series are not subject to a sinking fund and the
provisions of Section 501(3) and Article Twelve of the Indenture shall not be
applicable to the Securities of this series.

     The Securities of this series are subject to defeasance at the option of
the Company as provided in this Fifteenth Supplemental Indenture.

                                  ARTICLE FOUR

                  MODIFICATIONS AND ADDITIONS TO THE INDENTURE

Section 401. MODIFICATIONS TO THE CONSOLIDATION, MERGER,
             CONVEYANCE, TRANSFER OR EASE PROVISIONS.

     With respect to the Securities of this series, Section 801 of the Indenture
shall be deleted in its entirety and the following shall be substituted
therefor:

          "Section 801. COVENANT NOT TO MERGE, CONSOLIDATE, SELL OR CONVEY
     PROPERTY EXCEPT UNDER CERTAIN CONDITIONS.

          The Company covenants that it will not merge with or into or
     consolidate with any corporation, partnership, or other entity or sell,
     lease or convey all or substantially all of its assets to any other Person,
     unless (i) either the Company shall be the continuing corporation, or the
     successor entity or the Person which acquires by sale, lease or conveyance
     all or substantially all the assets of the Company (if other than the
     Company) shall be a corporation or partnership organized under the laws of
     the United States of America or any State thereof or the District of
     Columbia and shall expressly assume all obligations of the Company under
     this Indenture and the Securities of the series created by the Fifteenth
     Supplemental Indenture, including the due and punctual payment of the
     principal of and interest on all the Securities of the series created by
     the Fifteenth Supplemental Indenture according to their tenor, and the due
     and punctual performance and observance of all of the covenants and
     conditions of the Indenture to be performed or observed by the Company, by
     supplemental indenture in form satisfactory to the Trustee, executed and
     delivered to the Trustee by such entity, and (ii) the Company, such person
     or such successor

                                     - 17 -

<PAGE>

     entity, as the case may be, shall not, immediately after such merger or
     consolidation, or such sale, lease or conveyance, be in default in the
     performance of any such covenant or condition and, immediately after giving
     effect to such transaction, no Event of Default, and no event which, after
     notice or lapse of time or both, would become an Event of Default, shall
     have happened and be continuing.

          Section 802. SUCCESSOR SUBSTITUTED

          Upon any consolidation of the Company with, or merger of the Company
     into, any other Person or any sale, lease or conveyance of all or
     substantially all of the assets of the Company in accordance with Section
     801, the successor Person formed by such consolidation or into which the
     Company is merged or to which such sale, lease or conveyance is made shall
     succeed to, and be substituted for, and may exercise every right and power
     of, the Company under this Indenture with the same effect as if such
     successor Person had been named as the Company herein, and thereafter,
     except in the case of a lease, the predecessor Person shall be relieved of
     all obligations and covenants under this Indenture and the Securities."

Section 402. OTHER MODIFICATIONS.

     With respect to the Securities of this series, the Indenture shall be
modified as follows:

          (a) The eighth paragraph of Section 305 of the Indenture shall be
modified by inserting ", and a successor Depositary is not appointed by the
Company within 90 days" at the end of clause (i) in such paragraph; and

          (b) Section 401 of the Indenture shall be modified by adding to the
end of such Section the following paragraph:

          "For the purpose of this Section 401, trust funds may consist of (A)
     money in an amount, or (B) U.S. Government Obligations (as defined in
     Section 1304) which through the scheduled payment of principal and interest
     in respect thereof in accordance with their terms will provide, not later
     than one day before the due date of any payment, money in an amount, or (C)
     a combination thereof, sufficient, in the opinion of a nationally
     recognized firm of independent public accountants expressed in a written
     certification thereof delivered to the Trustee, to pay and discharge, the
     principal of, premium, if any, and each installment of interest on the
     Securities of this series on the Stated Maturity of such principal or
     installment of interest on the day on which such payments are due and
     payable in accordance with the terms of this Indenture and of such
     Securities of this series."

Section 403. ADDITIONAL COVENANTS; DEFEASANCE AND COVENANT DEFEASANCE.

     (a) With respect to the Securities of this series, the following provisions
shall be added as Sections 1009 and 1010 and as Article Thirteen (Section
references contained in these

                                     - 18 -

<PAGE>

additional provisions are to the Indenture as supplemented by this Fifteenth
Supplemental Indenture):

          "Section 1009. LIMITATIONS ON LIENS.

          After the date hereof and so long as any Securities of the series
     created by the Fifteenth Supplemental Indenture are Outstanding, the
     Company will not issue, assume or guarantee, and will not permit any
     Restricted Subsidiary to issue, assume or guarantee, any Indebtedness which
     is secured by a mortgage, pledge, security interest, lien or encumbrance of
     any kind (including any conditional sale or other title retention
     agreement, any lease in the nature thereof, and any agreement to give any
     of the foregoing) (each being hereinafter referred to as a "lien" or
     "liens") of or upon any Operating Property or Operating Asset, whether now
     owned or hereafter acquired, of the Company or any Restricted Subsidiary
     without effectively providing that the Securities of the series created by
     the Fifteenth Supplemental Indenture (together with, if the Company shall
     so determine, any other Indebtedness of the Company ranking equally with
     the Securities) shall be equally and ratably secured by a lien on such
     assets ranking ratably with and equal to (or at the Company's option prior
     to) such secured Indebtedness; provided that the foregoing restriction
     shall not apply to:

               (a) liens on any property or assets of any corporation existing
     at the time such corporation becomes a Restricted Subsidiary provided that
     such lien does not extend to any other property of the Company or any of
     its Restricted Subsidiaries;

               (b) liens on any property or assets (including stock) existing at
     the time of acquisition of such property or assets by the Company or a
     Restricted Subsidiary, or liens to secure the payment of all or any part of
     the purchase price of such property or assets (including stock) upon the
     acquisition of such property or assets by the Company or a Restricted
     Subsidiary or to secure any indebtedness incurred, assumed or guaranteed by
     the Company or a Restricted Subsidiary for the purpose of financing all or
     any part of the purchase price of such property or, in the case of real
     property, construction or improvements thereon or attaching to property
     substituted by the Company to obtain the release of a lien on other
     property of the Company on which a lien then exists, which indebtedness is
     incurred, assumed or guaranteed prior to, at the time of, or within 18
     months after such acquisition (or in the case of real property, the
     completion of construction (including any improvements on an existing
     asset) or commencement of full operation at such property, whichever is
     later (which in the case of a retail store is the opening of the store for
     business to the public)); provided that in the case of any such
     acquisition, construction or improvement, the lien shall not apply to any
     other property or assets theretofore owned by the Company or a Restricted
     Subsidiary;

               (c) liens on any property or assets to secure Indebtedness of a
     Restricted Subsidiary to the Company or to another Restricted Subsidiary;

               (d) liens on any property or assets of a corporation existing at
     the time such corporation is merged into or consolidated with the Company
     or a Restricted Subsidiary

                                     - 19 -

<PAGE>

     or at the time of a purchase, lease or other acquisition of the assets of a
     corporation or firm as an entirety or substantially as an entirety by the
     Company or a Restricted Subsidiary provided that such lien does not extend
     to any other property of the Company or any of its Restricted Subsidiaries;

               (e) liens on any property or assets of the Company or a
     Restricted Subsidiary in favor of the United States of America or any State
     thereof, or any department, agency or instrumentality or political
     subdivision of the United States of America or any State thereof, or in
     favor of any other country, or any political subdivision thereof, to secure
     partial, progress, advance or other payments pursuant to any contract or
     statute or to secure any Indebtedness incurred or guaranteed for the
     purpose of financing all or any part of the purchase price (or, in the case
     of real property, the cost of construction) of the property or assets
     subject to such liens (including, but not limited to, liens incurred in
     connection with pollution control, industrial revenue or similar
     financings);

               (f) liens existing on properties or assets of the Company or any
     Restricted Subsidiary existing on the date hereof; provided that such liens
     secure only those obligations which they secure on the date hereof or any
     extension, renewal or replacement thereof;

               (g) any extension, renewal or replacement (or successive
     extensions, renewals or replacements) in whole or in part, of any lien
     referred to in the foregoing clauses (a) through (f), inclusive; provided
     that such extension, renewal or replacement shall be limited to all or a
     part of the property or assets which secured the lien so extended, renewed
     or replaced (plus improvements and construction on real property);

               (h) liens imposed by law, such as mechanics', workmen's,
     repairmen's, materialmen's, carriers', warehouseman's, vendors', or other
     similar liens arising in the ordinary course of business of the Company or
     a Restricted Subsidiary, or governmental (federal, state or municipal)
     liens arising out of contracts for the sale of products or services by the
     Company or any Restricted Subsidiary, or deposits or pledges to obtain the
     release of any of the foregoing liens;

               (i) pledges, liens or deposits under worker's compensation laws
     or similar legislation and liens or judgments thereunder which are not
     currently dischargeable, or in connection with bids, tenders, contracts
     (other than for the payment of money) or leases to which the Company or any
     Restricted Subsidiary is a party, or to secure the public or statutory
     obligations of the Company or any Restricted Subsidiary, or in connection
     with obtaining or maintaining self-insurance or to obtain the benefits of
     any law, regulation or arrangement pertaining to unemployment insurance,
     old age pensions, social security or similar matters, or to secure surety,
     appeal or customs bonds to which the Company or any Restricted Subsidiary
     is a party, or in litigation or other proceedings such as, but not limited
     to, interpleader proceedings, and other similar pledges, liens or deposits
     made or incurred in the ordinary course of business;

               (j) liens created by or resulting from any litigation or other
     proceeding which is being contested in good faith by appropriate
     proceedings, including liens

                                     - 20 -

<PAGE>

     arising out of judgments or awards against the Company or any Restricted
     Subsidiary with respect to which the Company or such Restricted Subsidiary
     is in good faith prosecuting an appeal or proceedings for review or for
     which the time to make an appeal has not yet expired; or final unappealable
     judgment liens which are satisfied within 30 days of the date of judgment;
     or liens incurred by the Company or any Restricted Subsidiary for the
     purpose of obtaining a stay or discharge in the course of any litigation or
     other proceeding to which the Company or such Restricted Subsidiary is a
     party;

               (k) liens for taxes or assessments or governmental charges or
     levies not yet due or delinquent, or which can thereafter be paid without
     penalty, or which are being contested in good faith by appropriate
     proceedings; landlord's liens on property held under lease; and any other
     liens or charges incidental to the conduct of the business of the Company
     or any Restricted Subsidiary or the ownership of the property or assets of
     any of them which were not incurred in connection with the borrowing of
     money or the obtaining of advances or credit and which do not, in the
     opinion of the Company, materially impair the use of such property or
     assets in the operation of the business of the Company or such Restricted
     Subsidiary or the value of such property or assets for the purposes of such
     business; or

               (l) liens not permitted by clauses (a) through (k) above if at
     the time of, and after giving effect to, the creation or assumption of any
     such lien, the aggregate amount of all Indebtedness of the Company and its
     Restricted Subsidiaries secured by all such liens not so permitted by
     clauses (a) through (k) above together with the Attributable Debt in
     respect of Sale and Lease-Back Transactions permitted by paragraph (a) of
     Section 1010 does not exceed 10% of Consolidated Net Tangible Assets.

          Section 1010. LIMITATIONS ON SALE AND LEASE-BACK TRANSACTIONS.

          After the date hereof and so long as any Securities of the series
     created by the Fifteenth Supplemental Indenture are Outstanding, the
     Company agrees that it will not, and will not permit any Restricted
     Subsidiary to, enter into any arrangement with any Person providing for the
     leasing by the Company or a Restricted Subsidiary of any Operating Property
     or Operating Asset (other than any such arrangement involving a lease for a
     term, including renewal rights, for not more than 3 years and leases
     between the Company and a Restricted Subsidiary or between Restricted
     Subsidiaries), whereby such Operating Property or Operating Asset has been
     or is to be sold or transferred by the Company or any Restricted Subsidiary
     to such Person (herein referred to as a "Sale and Lease-Back Transaction"),
     unless:

               (a) the Company or such Restricted Subsidiary would, at the time
     of entering into a Sale and Lease-Back transaction, be entitled to incur
     Indebtedness secured by a lien on the Operating Property or Operating Asset
     to be leased in an amount at least equal to the Attributable Debt in
     respect of such Sale and Lease-Back Transaction without equally and ratably
     securing the Securities of the series created by the Fifteenth Supplemental
     Indenture pursuant to Section 1009; or

                                     - 21 -

<PAGE>

               (b) the proceeds of the sale of the Operating Property or
     Operating Asset to be leased are at least equal to the fair market value of
     such Operating Property or Operating Asset (as determined by the chief
     financial officer or chief accounting officer of the Company) and an amount
     in cash equal to the net proceeds from the sale of the Operating Property
     or Operating Asset so leased is applied, within 180 days of the effective
     date of any such Sale and Lease-Back Transaction, to the purchase or
     acquisition (or, in the case of Operating Property, the construction) of
     Operating Property or Operating Assets or to the retirement, repurchase,
     redemption or repayment (other than at maturity or pursuant to a mandatory
     sinking fund or redemption provision and other than Indebtedness owned by
     the Company or any Restricted Subsidiary) of Securities of the series
     created by the Fifteenth Supplemental Indenture or of Funded Indebtedness
     of the Company ranking on a parity with or senior to the Securities of the
     series created by the Fifteenth Supplemental Indenture, or in the case of a
     Sale and Lease-Back Transaction by a Restricted Subsidiary, of Funded
     Indebtedness of such Restricted Subsidiary; provided that in connection
     with any such retirement, any related loan commitment or the like shall be
     reduced in an amount equal to the principal amount so retired.

          The foregoing restriction shall not apply to, in the case of any
     Operating Property or Operating Asset acquired or constructed subsequent to
     the date eighteen months prior to the date of this Indenture, any Sale and
     Lease-Back Transaction with respect to such Operating Asset or Operating
     Property (including presently owned real property upon which such Operating
     Property is to be constructed) if a binding commitment is entered into with
     respect to such Sale and Lease-Back Transaction within 18 months after the
     later of the acquisition of the Operating Property or Operating Asset or
     the completion of improvements or construction thereon or commencement of
     full operations at such Operating Property (which in the case of a retail
     store is the opening of the store for business to the public).

                                ARTICLE THIRTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

          Section 1301. COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT
     DEFEASANCE.

          The Company may at its option by Board Resolution, at any time, elect
     to have either Section 1302 or Section 1303 applied to the Outstanding
     Securities of this series upon compliance with the conditions set forth
     below in this Article Thirteen.

          Section 1302. DEFEASANCE AND DISCHARGE.

          Upon the Company's exercise of the option provided in Section 1301
     applicable to this Section, the Company shall be deemed to have been
     discharged from its obligations with respect to the Outstanding Securities
     of the series created by the Fifteenth Supplemental Indenture on the date
     the conditions set forth below are satisfied (hereinafter, "Defeasance").
     For this purpose, such Defeasance means that the Company shall be deemed to
     have paid and discharged the entire indebtedness represented by the
     Outstanding Securities of this series and to have satisfied all its other
     obligations under

                                     - 22 -

<PAGE>

     such Securities of this series and this Indenture insofar as such
     Securities of this series are concerned (and the Trustee, at the expense of
     the Company, shall execute proper instruments acknowledging the same),
     except for the following which shall survive until otherwise terminated or
     discharged hereunder: (A) the rights of Holders of Outstanding Securities
     of this series to receive, solely from the trust fund described in Section
     1304 and as more fully set forth in such Section, payments in respect of
     the principal of (and premium, if any) and interest on such securities when
     such payments are due, (B) the Company's obligations with respect to such
     Securities of this series under Sections 304, 305, 306, 1002 and 1003, (C)
     the rights, powers, trusts, duties and immunities of the Trustee hereunder
     and (D) this Article Thirteen. Subject to compliance with this Article
     Thirteen, the Company may exercise its option under this Section 1302
     notwithstanding the prior exercise of its option under Section 1303.

          Section 1303. COVENANT DEFEASANCE.

          Upon the Company's exercise of the option provided in Section 1301
     applicable to this Section, the Company shall be released from its
     obligations under Section 501(4) (in respect of the covenants in Sections
     1008 through 1010), Section 801 and Sections 1008 through 1010, the
     Securities of this series and the Holders of Securities of this series, on
     and after the date the conditions set forth below are satisfied
     (hereinafter, "covenant Defeasance"). For this purpose, such covenant
     Defeasance means that the Company may omit to comply with and shall have no
     liability in respect of any term, condition or limitation set forth in any
     such Section, whether directly or indirectly, by reason of any reference
     elsewhere herein to any such Section or by reason of any reference in any
     such Section to any other provision herein or in any other document, but
     the remainder of this Indenture and such Securities of this series shall be
     unaffected thereby.

          Section 1304. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE.

          The following shall be the conditions to application of either Section
     1302 or Section 1303 to the Outstanding Securities of this series:

               (1) The Company shall irrevocably have deposited or caused to be
          deposited with the Trustee (or another trustee satisfying the
          requirements of Section 609 who shall agree to comply with the
          provisions of this Article Thirteen applicable to it) as trust funds
          in trust for the purpose of making the following payments,
          specifically pledged as security for, and dedicated solely to, the
          benefit of the Holders of such Securities of this series, (A) money in
          an amount, or (B) U.S. Government Obligations which through the
          scheduled payment of principal and interest in respect thereof in
          accordance with their terms will provide, not later than one day
          before the due date of any payment, money in an amount, or (C) a
          combination thereof, sufficient, in the opinion of a nationally
          recognized firm of independent public accountants expressed in a
          written certification thereof delivered to the Trustee,

                                     - 23 -

<PAGE>

          to pay and discharge, and which shall be applied by the Trustee (or
          other qualifying trustee) to pay and discharge, the principal of,
          premium, if any, and each installment of interest on the Securities of
          this series on the Stated Maturity of such principal or installment of
          interest on the day on which such payments are due and payable in
          accordance with the terms of this Indenture and of such Securities of
          this series. For this purpose, "U.S. Government Obligations" means
          securities that are (x) direct obligations of the United States of
          America for the payment of which its full faith and credit is pledged
          or (y) obligations of a Person controlled or supervised by and acting
          as an agency or instrumentality of the United States of America the
          payment of which is unconditionally guaranteed as a full faith and
          credit obligation by the United States of America, which, in either
          case, are not callable or redeemable at the option of the Company
          thereof, and shall also include a depository receipt issued by a bank
          (as defined in Section 3(a)(2) of the Securities Act of 1933, as
          amended) as custodian with respect to any such U.S. Government
          Obligation or a specific payment of principal of or interest on any
          such U.S. Government Obligation held by such custodian for the account
          of the holder of such depository receipt, PROVIDED that (except as
          required by law) such custodian is not authorized to make any
          deduction from the amount payable to the holder of such depositary
          receipt from any amount received by the custodian in respect of the
          U.S. Government Obligation or the specific payment of principal of or
          interest on the U.S. Government Obligation evidenced by such
          depositary receipt.

               (2) No Event of Default or event which with notice or lapse of
          time or both would become an Event of Default shall have occurred and
          be continuing on the date of such deposit or, insofar as subsections
          501(6) and (7) are concerned, at any time during the period ending on
          the 121st day after the date of such deposit (it being understood that
          this condition shall not be deemed satisfied until the expiration of
          such period).

               (3) Such Defeasance or covenant Defeasance shall not cause the
          Trustee to have a conflicting interest as defined in Section 608 and
          for purposes of the Trust Indenture Act with respect to any securities
          of the Company.

               (4) Such Defeasance or covenant Defeasance shall not result in a
          breach or violation of, or constitute a default under, this Indenture
          or any other agreement or instrument to which the Company is a party
          or by which it is bound.

               (5) The Company shall have delivered to the Trustee an Officers'
          Certificate and an Opinion of Counsel, each stating that all

                                     - 24 -

<PAGE>

          conditions precedent provided for relating to either the Defeasance
          under Section 1302 or the covenant Defeasance under Section 1303 (as
          the case may be) have been complied with.

               (6) In the case of an election under Section 1302, the Company
          shall have delivered to the Trustee an Opinion of Counsel stating that
          (x) the Company has received from, or there has been published by, the
          Internal Revenue Service a ruling, or (y) since the date of this
          Fifteenth Supplemental Indenture there has been a change in the
          applicable Federal income tax law, in either case to the effect that
          and based thereon such opinion shall confirm that, the Holders of the
          Outstanding Securities of this series will not recognize income, gain
          or loss for Federal income tax purposes as a result of such Defeasance
          or covenant Defeasance and will be subject to Federal income tax on
          the same amounts, in the same manner and at the same times as would
          have been the case if such Defeasance or covenant Defeasance had not
          occurred.

          Section 1305. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE
     HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.

          Subject to the provisions of the last paragraph of Section 1003, all
     money and U.S. Government Obligations (including the proceeds thereof)
     deposited with the Trustee (or other qualifying trustee--collectively, for
     purposes of this Section 1305, the "Trustee") pursuant to Section 1304 in
     respect of the Securities of this series shall be held in trust and applied
     by the Trustee, in accordance with the provisions of such Securities of
     this series and this Indenture, to the payment, either directly or through
     any Paying Agent (including the Company acting as its own Paying Agent) as
     the Trustee may determine, to the Holders of such Securities of this
     series, of all sums due and to become due thereon in respect of principal
     (and premium, if any) and interest, but such money need not be segregated
     from other funds except to the extent required by law.

          The Company shall pay and indemnify the Trustee against any tax, fee
     or other charge imposed on or assessed against the U.S. Government
     Obligations deposited pursuant to Section 1304 or the principal and
     interest received in respect thereof other than any such tax, fee or other
     charge which by law is for the account of the Holders of the Outstanding
     Securities of this series.

          Anything in this Article Thirteen to the contrary notwithstanding, the
     Trustee shall deliver or pay to the Company from time to time upon Company
     Request any money or U.S. Government Obligations held by it as provided in
     Section 1304 which, in the opinion of a nationally recognized firm of
     independent public accountants expressed in a written certification thereof
     delivered to the Trustee, are in excess of the amount thereof which would
     then be required to be deposited to effect an equivalent Defeasance or
     covenant Defeasance.

          Section 1306. REINSTATEMENT.

                                     - 25 -

<PAGE>

          If the Trustee or the Paying Agent is unable to apply any money in
     accordance with Section 1302 or 1303 by reason of any order or judgment of
     any court or governmental authority enjoining, restraining or otherwise
     prohibiting such application, then the Company's obligations under this
     Indenture and the Securities of this series shall be revived and reinstated
     as though no deposit had occurred pursuant to this Article Thirteen until
     such time as the Trustee or Paying Agent is permitted to apply all such
     money in accordance with Section 1302 or 1303; PROVIDED, HOWEVER, that if
     the Company makes any payment of principal of (and premium, if any) or
     interest on any Security of this series following the reinstatement of its
     obligations, the Company shall be subjugated to the rights of the Holders
     of such Securities of this series to receive such payment from the money
     held by the Trustee or the Paying Agent."

Section 404. REDEMPTION OF SECURITIES.

     With respect to Securities of this series, Section 1101 of the Indenture
shall be deleted in its entirety and the following shall be substituted
therefor:

          "Section 1101. OPTIONAL REDEMPTION.

          The Securities will be redeemable, in whole or in part, at the option
     of the Company at any time at a redemption price equal to the greater of
     (i) 100% of the principal amount of such Securities or (ii) as determined
     by a Quotation Agent, the sum of the present values of the remaining
     scheduled payments of principal and interest thereon (not including any
     portion of such payments of interest accrued as of the date of redemption)
     discounted to the date of redemption on a semi-annual basis (assuming a
     360-day year consisting of twelve 30-day months) at the Adjusted Treasury
     Rate plus 25 basis points plus, in each case, accrued interest thereon to
     the date of redemption."

                                  ARTICLE FIVE

                                    GUARANTEE

Section 501. GUARANTEE.

     Each Guarantor hereby jointly and severally fully and unconditionally
guarantees (each a "Guarantee") to each Holder of a Security authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of the Indenture or the
Securities or the obligations of the Company or any other Guarantor to the
Holders or the Trustee hereunder or thereunder, that (a) the principal of,
premium, if any, and interest on the Securities will be duly and punctually paid
in full when due, whether at maturity, upon redemption, by acceleration or
otherwise, and interest on the overdue principal and (to the extent permitted by
law) interest, if any, on the Securities and all other obligations of the
Company or the Guarantor to the Holders of or the Trustee under the Indenture or
the Securities hereunder (including fees, expenses or others) (collectively, the
"Obligations") will be promptly paid in full or performed, all in accordance
with the terms of the Indenture and the Securities; and (b) in case of any
extension of time of payment or renewal of any Obligations, the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at Stated Maturity, by acceleration or otherwise.
If the

                                     - 26 -

<PAGE>

Company shall fail to pay when due, or to perform, any Obligations, for whatever
reason, each Guarantor shall be obligated to pay, or to perform or cause the
performance of, the same immediately. An Event of Default under the Indenture or
the Securities shall constitute an event of default under this Guarantee, and
shall entitle the Holders of Securities to accelerate the Obligations of the
Guarantor hereunder in the same manner and to the same extent as the Obligations
of the Company.

     Each Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Securities or the Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Securities with respect to any provisions
of the Indenture or the Securities, any release of any other Guarantor, the
recovery of any judgment against the Company, any action to enforce the same,
whether or not a Guarantee is affixed to any particular Security, or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a Guarantor.

     Each Guarantor further agrees that, as between it, on the one hand, and the
Holders of Securities and the Trustee, on the other hand, (a) the maturity of
the Obligations may be accelerated as provided in Article Five of the Indenture
for the purposes of the Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Obligations, and (b)
in the event of any acceleration of such Obligations as provided in Article Five
of the Indenture, such Obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantor for the purposes of its
Guarantee.

Section 502. WAIVER OF DEMAND.

     To the fullest extent permitted by applicable law, each of the Guarantors
waives presentment to, demand of payment from and protest of any of the
Obligations, and also waives notice of acceptance of its Guarantee and notice of
protest for nonpayment.

Section 503. GUARANTEE OF PAYMENT.

     Each of the Guarantors further agrees that its Guarantee constitutes a
guarantee of payment when due and not of collection, and waives any right to
require that any resort be had by the Trustee or any Holder of the Securities to
the security, if any, held for payment of the Obligations.

Section 504. NO DISCHARGE OR DIMINISHMENT OF GUARANTEE.

     Subject to Section 510 of this Fifteenth Supplemental Indenture, the
obligations of each of the Guarantors hereunder shall not be subject to any
reduction, limitation, impairment or for any reason (other than the indefeasible
payment in full in cash of the Obligations), including any claim of waiver,
release, surrender, alteration or compromise of any of the Obligations, and
shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each of the Guarantors hereunder
shall not be discharged or impaired or

                                     - 27 -

<PAGE>

otherwise affected by the failure of the Trustee or any Holder of the Securities
to assert any claim or demand or to enforce any remedy under the Indenture or
the Securities, any other guarantee or any other agreement, by any waiver or
modification of any provision of any thereof, by any default, failure or delay,
willful or otherwise, in the performance of the Obligations, or by any other act
or omission that may or might in any manner or to any extent vary the risk of
any Guarantor or that would otherwise operate as a discharge of any Guarantor as
a matter of law or equity (other than the indefeasible payment in full in cash
of all the Obligations).

Section 505. DEFENSES OF COMPANY WAIVED.

     To the extent permitted by applicable law, each of the Guarantors waives
any defense based on or arising out of any defense of the Company or any other
Guarantor or the unenforceability of the Obligations or any part thereof from
any cause, or the cessation from any cause of the liability of the Company,
other than final and indefeasible payment in full in cash of the Obligations.
Each of the Guarantors waives any defense arising out of any such election even
though such election operates to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of each of the Guarantors
against the Company or any security.

Section 506. CONTINUED EFFECTIVENESS.

     Subject to Section 510 of this Fifteenth Supplemental Indenture, each of
the Guarantors further agrees that its Guarantee hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of principal of or interest on any Obligation is rescinded or must
otherwise be restored by the Trustee or any Holder of the Securities upon the
bankruptcy or reorganization of the Company.

Section 507. SUBROGATION.

     In furtherance of the foregoing and not in limitation of any other right of
each of the Guarantors by virtue hereof, upon the failure of the Company to pay
any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each of the Guarantors
hereby promises to and will, upon receipt of written demand by the Trustee or
any Holder of the Securities, forthwith pay, or cause to be paid, to the Holders
in cash the amount of such unpaid Obligations, and thereupon the Holders shall,
assign (except to the extent that such assignment would render a Guarantor a
"creditor" of the Company within the meaning of Section 547 of Title 11 of the
United States Code as now in effect or hereafter amended or any comparable
provision of any successor statute) the amount of the Obligations owed to it and
paid by such Guarantor pursuant to this Guarantee to such Guarantor, such
assignment to be PRO RATA to the extent the Obligations in question were
discharged by such Guarantor, or make such other disposition thereof as such
Guarantor shall direct (all without recourse to the Holders, and without any
representation or warranty by the Holders). If (a) a Guarantor shall make
payment to the Holders of all or any part of the Obligations and (b) all the
Obligations and all other amounts payable under this Fifteenth Supplemental
Indenture shall be indefeasibly paid in full, the Trustee will, at such
Guarantor's request, execute and deliver to such Guarantor appropriate
documents, without recourse and

                                     - 28 -

<PAGE>

without representation or warranty, necessary to evidence the transfer by
subrogation to such Guarantor of an interest in the Obligations resulting from
such payment by such Guarantor.

Section 508. INFORMATION.

     Each of the Guarantors assumes all responsibility for being and keeping
itself informed of the Company's financial condition and assets, and of all
other circumstances bearing upon the risk of nonpayment of the Obligations and
the nature, scope and extent of the risks that each of the Guarantors assumes
and incurs hereunder, and agrees that the Trustee and the Holders of the
Securities will have no duty to advise the Guarantors of information known to it
or any of them regarding such circumstances or risks.

Section 509. SUBORDINATION.

     Upon payment by any Guarantor of any sums to the Holders, as provided
above, all rights of such Guarantor against the Company, arising as a result
thereof by way of right of subrogation or otherwise, shall in all respects be
subordinated and junior in right of payment to the prior indefeasible payment in
full in cash of all the Obligations to the Trustee; PROVIDED, HOWEVER, that any
right of subrogation that such Guarantor may have pursuant to this Fifteenth
Supplemental Indenture is subject to Section 507 hereof.

Section 510. TERMINATION.

     A Guarantor shall, upon the occurrence of either of the following events,
be automatically and unconditionally released and discharged from all
obligations under this Fifteenth Supplemental Indenture and its Guarantee
without any action required on the part of the Trustee or any Holder if such
release and discharge will not result in any downgrade in the rating given to
the Securities by Moody's Investors Service and Standard and Poor's Rating
Services:

          (a) upon any sale, exchange, transfer or other disposition (by merger
or otherwise) of all of the Capital Stock of a Guarantor or all, or
substantially all, of the assets of such Guarantor, which sale or other
disposition is otherwise in compliance with the terms of the Indenture;
provided, however, that such Guarantor shall not be released and discharged from
its obligations under this Fifteenth Supplemental Indenture and its Guarantee
if, upon consummation of such sale, exchange, transfer or other disposition (by
merger or otherwise), such Guarantor remains or becomes a Guarantor under any
Credit Facility; or

          (b) at the request of the Company, at any time that none of the Credit
Facilities are guaranteed by any Subsidiary of the Company.

The Trustee shall deliver an appropriate instrument evidencing such release upon
receipt of a request of the Company accompanied by an Officers' Certificate
certifying as to the compliance with this Section. Any Guarantor not so released
will remain liable for the full amount of the principal of, premium, if any, and
interest on the Notes provided in this Fifteenth Supplemental Indenture and its
Guarantee.

                                     - 29 -

<PAGE>

Section 511. GUARANTEES OF OTHER INDEBTEDNESS.

     As long as the Securities are guaranteed by the Guarantors, the Company
will cause each of its Subsidiaries that becomes a Guarantor in respect of (i)
any Indebtedness of the Company which is outstanding on the date hereof and (ii)
any Indebtedness incurred by the Company after the date hereof (other than in
respect of asset-backed securities), to include in any guarantee given by any
such Guarantor, provisions similar to those set forth in Section 510 hereof.

Section 512. ADDITIONAL GUARANTORS.

     The Company will cause each of its Subsidiaries that becomes a Guarantor in
respect of any Indebtedness of the Company following the date hereof to execute
and deliver a supplemental indenture pursuant to which it will become a
Guarantor under this Fifteenth Supplemental Indenture, if it has not already
done so or unless the Guarantor is prohibited from doing so by applicable law or
a provision of a contract to which it is a party or by which it is bound.

Section 513. LIMITATION OF GUARANTOR'S LIABILITY.

     Each Guarantor, and by its acceptance hereof each Holder, hereby confirms
that it is the intention of all such parties that the Guarantee by such
Guarantor not constitute a fraudulent transfer or conveyance for purposes of
Title 11 of the United States Code, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar Federal of state law. To
effectuate the foregoing intention, the Holders and such Guarantor hereby
irrevocably agree that the obligations of such Guarantor under this Fifteenth
Supplemental Indenture and its Guarantee shall be limited to the maximum amount
which, after giving effect to all other contingent and fixed liabilities of such
Guarantor, and after giving effect to any collections from or payments made by
or on behalf of, any other Guarantor in respect of the obligations of such
Guarantor under its Guarantee or pursuant to its contribution obligations under
this Fifteenth Supplemental Indenture, will result in the obligations of such
Guarantor under its Guarantee not constituting such fraudulent transfer or
conveyance.

Section 514. CONTRIBUTION FROM OTHER GUARANTORS.

     Each Guarantor that makes a payment or distribution under its Guarantee
shall be entitled to a contribution from each other Guarantor in a pro rata
amount based on the net assets of each Guarantor, determined in accordance with
generally accepted accounting principles in effect in the United States of
America as of the date hereof.

Section 515. NO OBLIGATION TO TAKE ACTION AGAINST THE COMPANY.

     Neither the Trustee, any Holder nor any other Person shall have any
obligation to enforce or exhaust any rights or remedies or take any other steps
under any security for the Obligations or against the Company or any other
Person or any property of the Company or any other Person before the Trustee,
such Holder or such other Person is entitled to demand

                                     - 30 -

<PAGE>

payment and performance by any or all Guarantors of their liabilities and
obligations under their Guarantee.

Section 516. DEALING WITH THE COMPANY AND OTHERS.

     The Holders, without releasing, discharging, limiting or otherwise
affecting in whole or in part the obligations and liabilities of any Guarantor
hereunder and without the consent of or notice to any Guarantor, may:

          (a) grant time, renewals, extensions, compromises, concessions,
waivers, releases, discharges and other indulgences to the Company or any other
Person;

          (b) take or abstain from taking security or collateral from the
Company or from perfecting security or collateral from the Company;

          (c) release, discharge, compromise, realize, enforce or otherwise deal
with or do any act or thing in respect of (with or without consideration) any
and all collateral, mortgages or other security given by the Company or any
third party with respect to the Obligations;

          (d) accept compromises or arrangements from the Company;

          (e) apply all monies at any time received from the Company or from any
security to such part of the Obligations as the Holders may see fit or change
any such application in whole or in part from time to time as the Holders may
see fit; and

          (f) otherwise deal with, or waive or modify their right to deal with,
the Company and all other Persons and any security as the Holders or the Trustee
may see fit.

Section 517. EXECUTION AND DELIVERY OF THE GUARANTEE.

          (a) To further evidence the Guarantee set forth in this Article Five,
each Guarantor hereby agrees that a notation of such Guarantee shall be endorsed
on each Security authenticated and delivered by the Trustee and executed by
either manual or facsimile signature of an officer of each Guarantor. The
corporate seal of a Guarantor may be reproduced on the executed Guarantee and
the execution thereof may be attested to by any appropriate officer of the
Guarantor, but neither such reproduction nor such attestation is or shall be
required.

          (b) Each of the Guarantors hereby agrees that its Guarantee set forth
in this Article Five shall remain in full force and effect notwithstanding any
failure to endorse on each Security a notation of such Guarantee.

          (c) If an officer of a Guarantor whose signature is on this Fifteenth
Supplemental Indenture or a Guarantee no longer holds that office at the time
the Trustee authenticates such Guarantee or at any time thereafter, such
Guarantor's Guarantee of such Security shall be valid nevertheless.

                                     - 31 -

<PAGE>

          (d) The delivery of any Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of any Guarantee
set forth in this Fifteenth Supplemental Indenture on behalf of each Guarantor.

                                   ARTICLE SIX

                                  MISCELLANEOUS

Section 601. MISCELLANEOUS.

          (a) The Trustee accepts the trusts created by the Indenture, as
supplemented by this Fifteenth Supplemental Indenture, and agrees to perform the
same upon the terms and conditions of the Indenture, as supplemented by this
Fifteenth Supplemental Indenture.

          (b) The recitals contained herein shall be taken as statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Fifteenth Supplemental Indenture.

          (c) All capitalized terms used and not defined herein shall have the
respective meanings assigned to them in the Indenture.

          (d) Each of the Company and the Trustee makes and reaffirms as of the
date of execution of this Fifteenth Supplemental Indenture all of its respective
representations, covenants and agreements set forth in the Indenture.

          (e) All covenants and agreements in this Fifteenth Supplemental
Indenture by the Company or the Trustee and each Guarantor shall bind its
respective successors and assigns, whether so expressed or not.

          (f) In case any provisions in this Fifteenth Supplemental Indenture
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

          (g) Nothing in this Fifteenth Supplemental Indenture, express or
implied, shall give to any Person, other than the parties hereto and their
successors under the Indenture and the Holders of the series of Securities
created hereby, any benefit or any legal or equitable right, remedy or claim
under the Indenture.

          (h) If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act of 1939, as may be amended from time to
time, that is required under such Act to be a part of and govern this Fifteenth
Supplemental Indenture, the latter provision shall control. If any provision
hereof modifies or excludes any provision of such Act that may be so modified or
excluded, the latter provision shall be deemed to apply to this Fifteenth
Supplemental Indenture as so modified or excluded, as the case may be.

          (i) This Fifteenth Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.

                                     - 32 -

<PAGE>

          (j) All amendments to the Indenture made hereby shall have effect only
 with respect to the series of Securities created hereby.

          (k) All provisions of this Fifteenth Supplemental Indenture shall be
deemed to be incorporated in, and made a part of, the Indenture; and the
Indenture, as supplemented by this Fifteenth Supplemental Indenture, shall be
read, taken and construed as one and the same instrument.

          This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

                                     - 33 -

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed as of the day and year first above written.

Attest:                                 THE KROGER CO.
                                        Each of the Guarantors Listed on
                                        Schedule I hereto, as Guarantor of
                                        the Securities

/s/ Bruce M. Gack                       By: /s/ Paul Heldman
----------------------------                -----------------------------------
Bruce M. Gack Assistant                     Name:  Paul Heldman
Secretary/Secretary                         Title: Senior Vice President/
                                                   President/Vice President

Attest:                                 QUEEN CITY ASSURANCE, INC.,
                                        as Guarantor of the Securities
                                        RJD ASSURANCE, INC.,
                                        as Guarantor of the Securities
                                        VINE COURT ASSURANCE INCORPORATED,
                                        as Guarantor of the Securities

/s/ Scott M. Henderson                  By: /s/ Bruce M. Gack
----------------------------                -----------------------------------
Scott M. Henderson Treasurer                Name:  Bruce M. Gack
                                            Title: Senior Vice President/
                                                   Vice President

                                        RICHIE'S INC., as Guarantor of
                                        the Securities

                                        By: /s/ Paul Schweitzer
                                            -----------------------------------
                                            Name:  Paul Schweitzer
                                            Title: President

                                     - 34 -

<PAGE>

                                        ROCKET NEWCO, INC.,
                                        as Guarantor of the Securities

                                        HENPIL, INC.,
                                        as Guarantor of the Securities

                                        By: /s/ Paul Schweitzer
                                            -----------------------------------
                                            Name:  Paul Schweitzer
                                            Title: Vice President

                                     - 35 -

<PAGE>

Attest:                                 U.S. BANK, N.A.,
                                        as Trustee

/s/ Robert T. Jones                     By: /s/ Bill Sicking
---------------------------                 -----------------------------------
                                            Name:  William Sicking
                                            Title: Vice President and Senior
                                                   Trust Officer

                                     - 36 -

<PAGE>

                                   SCHEDULE I

                                   Guarantors

Name of Guarantor                                       State of OrganizatioN
-----------------                                       ---------------------
Alpha Beta Company                                      California
Bay Area Warehouse Stores, Inc.                         California
Bell Markets, Inc.                                      California
Cala Co.                                                Delaware
Cala Foods, Inc.                                        California
CB&S Advertising Agency, Inc.                           Oregon
Crawford Stores, Inc.                                   California
Dillon Companies, Inc.                                  Kansas
Dillon Real Estate Co., Inc.                            Kansas
Distribution Trucking Company                           Oregon
Drugs Distributors, Inc.                                Indiana
F4L L.P.                                                Ohio
FM, Inc.                                                Utah
FMJ, Inc.                                               Delaware
Food 4 Less GM, Inc.                                    California
Food 4 Less Holdings, Inc.                              Delaware
Food 4 Less Merchandising, Inc.                         California
Food 4 Less of California, Inc.                         California
Food 4 Less of Southern California, Inc.                Delaware
Fred Meyer, Inc.                                        Delaware
Fred Meyer Jewelers, Inc.                               California
Fred Meyer Stores, Inc.                                 Delaware
Hughes Markets, Inc.                                    California
Hughes Realty, Inc.                                     California
Inter-American Foods, Inc.                              Ohio
Junior Food Stores of West Florida, Inc.                Florida
J.V. Distributing, Inc.                                 Michigan
KRGP Inc.                                               Ohio
KRLP Inc.                                               Ohio
The Kroger Co. of Michigan                              Michigan
Kroger Dedicated Logistics Co.                          Ohio
Kroger Group Cooperative, Inc.                          Ohio
Kroger Limited Partnership I                            Ohio
Kroger Limited Partnership II                           Ohio
Kroger Texas L.P.                                       Ohio
Kwik Shop, Inc.                                         Kansas
Mini Mart, Inc.                                         Wyoming
Peyton's-Southeastern, Inc.                             Tennessee
QFC Sub, Inc.                                           Washington
Quality Food Centers, Inc.                              Washington
Quality Food Holdings, Inc.                             Delaware
Quality Food, Inc.                                      Delaware
Quik Stop Markets, Inc.                                 California

                                     - 37 -

<PAGE>

Name of Guarantor                                       State of Organization
-----------------                                       ---------------------
Ralphs Grocery Company                                  Delaware
Second Story, Inc.                                      Washington
Smith's Beverage of Wyoming, Inc.                       Wyoming
Smith's Food & Drug Centers, Inc.                       Delaware
THGP Co., Inc.                                          Pennsylvania
THLP Co., Inc.                                          Pennsylvania
Topvalco, Inc.                                          Ohio
Turkey Hill, L.P.                                       Pennsylvania
Wells Aircraft, Inc.                                    Kansas

                                     - 38 -

<PAGE>

STATE OF OHIO           )
                        ) ss.:
COUNTY OF HAMILTON      )

                  On the 28th day of January, 2003, before me personally came
Paul W. Heldman, to me known, who, being by me duly sworn, did depose and say
that he is Senior Vice President of The Kroger Co., and President or Vice
President of each of the Guarantors Listed on Schedule I hereto, corporations
described in and which executed the foregoing instrument; that he knows the
seals of said corporations; that the seals affixed to said instrument are such
corporate seals; that they were so affixed by authority of the Board of
Directors of such corporations, and that he signed his name thereto by like
authority.

                                       /s/ Dorothy Dansberry
                                       ------------------------------------

STATE OF OHIO           )
                        ) ss.:
COUNTY OF HAMILTON      )

                  On the 28th day of January, 2003, before me personally came
Paul Schweitzer, to me known, who, being by me duly sworn, did depose and say
that he is Vice President of Rocket Newco, Inc. and Henpil, Inc., corporations
described in and which executed the foregoing instrument; that he knows the
seals of said corporations; that the seals affixed to said instrument are such
corporate seals; that they were so affixed by authority of the Board of
Directors of said corporations, and that he signed his name thereto by like
authority.

                                       /s/ Barbara Edwards
                                       ---------------------------------------

                                      - 1 -

<PAGE>

STATE OF OHIO           )
                        ) ss.:
COUNTY OF HAMILTON      )

                  On the 28th day of January, 2003, before me personally came
Bruce M. Gack, to me known, who, being by me duly sworn, did depose and say that
he is Sr. Vice Pres. or Vice President of Queen City Assurance, Inc., RJD
Assurance, Inc. and Vine Court Assurance Incorporated, one of the corporations
described in and which executed the foregoing instrument; that he knows the seal
of said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by authority of the Boards of Directors of said
corporation, and that he signed his name thereto by like authority.

                                       /s/ Dorothy Dansberry
                                       ---------------------------------------

STATE OF OHIO           )
                        ) ss.:
COUNTY OF HAMILTON      )

                  On the 28th day of January, 2003, before me personally came
Paul Schweitzer, to me known, who, being by me duly sworn, did depose and say
that he is President of Richie's Inc., one of the corporations described in and
which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Boards of Directors of said
corporation, and that he signed his name thereto by like authority.

                                       /s/ Barbara Edwards
                                       ---------------------------------------

                                      - 2 -

<PAGE>

STATE OF OHIO           )
                        ) ss.:
COUNTY OF HAMILTON      )

                  On the 28th day of January, 2003, before me personally came
William Sicking, to me known, who, being by me duly sworn, did depose and say
that he is a Vice Pres & Sr. Trust Officer of U.S. Bank, N.A., one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.

                                       /s/ Dorothy Dansberry
                                       ---------------------------------------

                                      - 3 -Form of Stock Purchase Agreement

 EXHIBIT 4.01 
  
 FORM of STOCK PURCHASE AGREEMENT 
  
 Netopia, Inc. 
 MarketPlace Tower 
 6001 Shellmound Street, 4th Fl. 
 Emeryville, CA 94608 
  
 Ladies & Gentlemen: 
  
 The undersigned,                     (the
“Investor”), hereby confirms its agreement with you as follows: 
  
 1.
This Stock Purchase Agreement (the “Agreement”) is made as of July     , 2003 between Netopia, Inc., a Delaware corporation (the “Company”), and the Investor. 
  
 2. The Company has authorized the sale and issuance of up to 3,500,000 shares (the
“Shares”) of common stock of the Company, $0.001 par value per share (the “Common Stock”), to certain investors in a private placement (the “Offering”). 
  
 3. The Company and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the Investor
             Shares, for a purchase price of $         per share, or an aggregate purchase price of
$        , pursuant to the Terms and Conditions for Purchase of Shares attached hereto as Annex I and incorporated herein by reference as if fully set forth herein (the “Terms and
Conditions”). Unless otherwise requested by the Investor, certificates representing the Shares purchased by the Investor will be registered in the Investor’s name and address as set forth below. 
  
 4. The Investor represents that, except as set forth below, (a) it has had no position,
office or other material relationship within the past three years with the Company or persons known to it to be affiliates of the Company, (b) neither it, nor any group of which it is a member or to which it is related, either beneficially owns
(including the right to acquire or vote) or has an open short position in any securities of the Company, (c) it is aware of the requirements of the anti-manipulation rules under the Exchange Act including, without limitation, Regulation M, (d)
before the Registration Statement is declared effective, it will not enter into any plan, arrangement or understanding with any broker-dealer, agent or underwriter regarding sales of the Shares purchased in the Offering including without limitation,
any option, derivative or hedging transactions, and (e) it has no direct or indirect affiliation or association with any NASD member as of the date hereof. Exceptions: 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (If no exceptions,
write “none.” If left blank, response will be deemed to be “none.”) 
  
 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space provided below for that purpose. By executing this Agreement, you acknowledge that the Company may use the
information in paragraph 4 above and the name and address information below in preparation of the Registration Statement (as defined in Annex 1). 
  

	 AGREED AND ACCEPTED:
 NETOPIA, INC.
	 	 	 	 Investor:                                     
                                        
                             

	 	 	 	 	 	 	 By:                                      
                                        
                                     
 

			
	
	 	 	 	 
	 By:
	 	 William D. Baker
	 	 	 	 Print
Name:                                       
                                        
                     

	 Title:
	 	 Senior Vice President, Finance & Operations, CFO
	 	 	 	 
				
	 	 	 	 	 	 	 Title:                                     
                                        
                                    

				
	 	 	 	 	 	 	 Address:                                     
                                        
                             

				
	 	 	 	 		 	                                      
                                        
                                        
     
				
	 	 	 	 	 	 	 Tax ID
No.:                                       
                                        
                     

				
	 	 	 	 	 	 	 Contact
name:                                       
                                        
                 

				
	 	 	 	 	 	 	 Telephone:                                     
                                        
                         

 ANNEX I 
  
 TERMS AND CONDITIONS FOR PURCHASE OF SHARES 
  
 1. Authorization and Sale of the Shares. Subject to these Terms and Conditions, the Company has authorized the sale of up to 3,500,000 Shares. The
Company reserves the right to increase or decrease this number. 
  
 2. Agreement to Sell and Purchase the Shares; Subscription Date. 
  
 2.1 At each Closing (as defined in Section 3), the Company will sell to the Investor, and the Investor will purchase from the Company, upon the terms and conditions hereinafter set forth, the number of Shares set
forth in Section 3 of the Stock Purchase Agreement to which these Terms and Conditions are attached at the purchase price set forth thereon. 
  
 2.2 The Company may enter into the same form of Stock Purchase Agreement, including these Terms and Conditions, with certain other investors (the
“Other Investors”) and expects to complete sales of Shares to them. (The Investor and the Other Investors are hereinafter sometimes collectively referred to as the “Investors,” and the Stock Purchase Agreement to which these
Terms and Conditions are attached and the Stock Purchase Agreements (including attached Terms and Conditions) executed by the Other Investors are hereinafter sometimes collectively referred to as the “Agreements.”) The Company may accept
executed Agreements from Investors for the purchase of Shares commencing July 28, 2003 and concluding upon the date (the “Subscription Date”) on which the Company has (i) executed the final Agreements with Investors and (ii) notified CDC
Securities, in its capacity as placement agent for this transaction, in writing that it is no longer accepting additional Agreements from Investors for the purchase of Shares. The Company may not enter into any Agreements after the Subscription
Date. 
  
 3. Delivery of the Shares at Closing. The
completion of the purchase and sale of the Shares (the “Closing”) shall occur at the offices of the Company’s counsel upon receipt of cleared funds and fully executed documents for the purchase of the Shares on each date set by the
Company, provided that a final closing shall occur no later than August 1, 2003 (“the “Final Closing Date”). Within three (3) days after each Closing, the Company shall deliver to the Investor one or more stock certificates
representing the number of Shares set forth in Section 3 of the Stock Purchase Agreement, each such certificate to be registered in the name of the Investor. 
  
 The Company’s obligation to issue the Shares to the Investor shall be subject to the following conditions, any one or more of which may be waived by
the Company: (a) receipt by the Company of a certified or official bank check or wire transfer of funds in the full amount of the purchase price for the Shares being purchased hereunder as set forth in Section 3 of the Stock Purchase Agreement; and
(b) the accuracy of the representations and warranties made by the Investors and the fulfillment of those undertakings of the Investors to be fulfilled prior to the Closing. 
  
 The Investor’s obligation to purchase the Shares shall be subject to the following conditions, any one or more of which
may be waived by the Investor: (a) the representations and warranties of the Company set forth herein shall be true and correct as of the Closing Date in all material respects and (b) the Investor shall have received such documents as such Investor
shall reasonably have requested, including, a standard opinion of Company Counsel as to the matters set forth in Section 4.2 and as to exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities
Act”), of the sale of the Shares. 
  
 4. Representations,
Warranties and Covenants of the Company. The Company hereby represents and warrants to, and covenants with, the Investor, as follows: 
  
 4.1 Organization. The Company is duly organized and validly existing in good standing under the laws of the jurisdiction of its organization. The
Company has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and as described in the documents filed by the Company under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), since the end of its most recently completed fiscal year through the date hereof, including, without limitation, its most recent report on Form 10-K (the “Exchange Act Documents”) and is registered or qualified
to do business and in good standing in each jurisdiction in which the nature of the business conducted by it or the location of the properties owned or leased by it requires such qualification and where the failure to be so qualified would have a
material adverse effect upon the condition (financial or otherwise), earnings, business or business prospects, properties or operations of the Company, considered as one enterprise (a “Material Adverse Effect”), and no proceeding has been
instituted in any such jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such power and authority or qualification. 
  

 2 

 4.2 Due Authorization and Valid Issuance. The Company has all requisite power and authority to
execute, deliver and perform its obligations under the Agreements, and the Agreements have been duly authorized and validly executed and delivered by the Company and constitute legal, valid and binding agreements of the Company enforceable against
the Company in accordance with their terms, except as rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law). The Shares being purchased by the Investor hereunder will, upon issuance and payment therefore pursuant to the terms hereof, be duly authorized, validly issued, fully-paid and
nonassessable. 
  
 4.3 Non-Contravention. The execution and
delivery of the Agreements, the issuance and sale of the Shares under the Agreements, the fulfillment of the terms of the Agreements and the consummation of the transactions contemplated thereby will not (A) conflict with or constitute a violation
of, or default (with the passage of time or otherwise) under, (i) any material bond, debenture, note or other evidence of indebtedness, lease, contract, indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or
instrument to which the Company or any Subsidiary is a party or by which it or any of its Subsidiaries or their respective properties are bound, (ii) the charter, by-laws or other organizational documents of the Company or any Subsidiary, or (iii)
any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company or any Subsidiary or their respective properties, except in the case of clauses (i) and (iii) for
any such conflicts, violations or defaults which are not reasonably likely to have a Material Adverse Effect or (B) result in the creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the
material properties or assets of the Company or any Subsidiary or an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material bond, debenture, note or any other evidence of indebtedness or any
material indenture, mortgage, deed of trust or any other agreement or instrument to which the Company or any Subsidiary is a party or by which any of them is bound or to which any of the material property or assets of the Company or any Subsidiary
is subject. No consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative agency, or other governmental body in the United States or any other person is required for the
execution and delivery of the Agreements and the valid issuance and sale of the Shares to be sold pursuant to the Agreements, other than such as have been made or obtained, and except for any post-closing securities filings or notifications required
to be made under federal or state securities laws. 
  
 4.4
Capitalization. As of March 31, 2003, the Company has not issued any capital stock since that date other than pursuant to (i) employee benefit plans disclosed in the Exchange Act Documents, or (ii) outstanding warrants, options or other
securities disclosed in the Exchange Act Documents, except as listed on Schedule 4.4. The Shares to be sold pursuant to the Agreements have been duly authorized, and when issued and paid for in accordance with the terms of the Agreements will be
duly and validly issued, fully paid and nonassessable. The outstanding shares of capital stock of the Company have been duly and validly issued and are fully paid and nonassessable, have been issued in compliance with all federal and state
securities laws, and were not issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as set forth in or contemplated by the Exchange Act Documents, there are no other outstanding rights
(including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued shares of capital stock or other equity interest in the Company or any Subsidiary, or any contract,
commitment, agreement, understanding or arrangement of any kind to which the Company is a party or of which the Company has knowledge and relating to the issuance or sale of any capital stock of the Company, any such convertible or exchangeable
securities or any such rights, warrants or options. Without limiting the foregoing, except as set forth in Exchange Act Documents, no preemptive right, co-sale right, right of first refusal, registration right, or other similar right exists with
respect to the Shares or the issuance and sale thereof. No further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and sale of the Shares. The Company owns the entire equity
interest in each of its Subsidiaries, free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest, other than as described in the Exchange Act Documents. Except as disclosed in the Exchange Act Documents, there
are no stockholders agreements, voting agreements or other similar agreements with respect to the Common Stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders. 

 
 4.5 Legal Proceedings. There is no material legal or governmental
proceeding pending or, to the knowledge of the Company, threatened to which the Company is or may be a party or of which the business or property of the Company or any Subsidiary is subject that is not disclosed in the Exchange Act Documents.

  

 3 

 4.6 No Violations. The Company is not in violation of its charter, bylaws, or other organizational
document, or in violation of any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company, which violation, individually or in the aggregate, would be reasonably
likely to have a Material Adverse Effect, or is in default (and there exists no condition which, with the passage of time or otherwise, would constitute a default) in any material respect in the performance of any bond, debenture, note or any other
evidence of indebtedness in any indenture, mortgage, deed of trust or any other material agreement or instrument to which the Company is a party or by which the Company is bound or by which the properties of the Company are bound, which would be
reasonably likely to have a Material Adverse Effect. 
  
 4.7
Governmental Permits, Etc. With the exception of the matters which are dealt with separately in Section 4.1, 4.12, 4.13, and 4.14, each of the Company has all necessary franchises, licenses, certificates and other authorizations from any
foreign, federal, state or local government or governmental agency, department, or body that are currently necessary for the operation of the business of the Company as currently conducted and as described in the Exchange Act Documents except where
the failure to currently possess could not reasonably be expected to have a Material Adverse Effect. 
  
 4.8 Intellectual Property. Except as specifically disclosed under “Risk Factors” in the Exchange Act Documents, to the knowledge of the
Company, (i) the Company owns or possesses sufficient rights to use all material patents, patent rights, trademarks, copyrights, licenses, inventions, trade secrets, trade names and know-how (collectively, “Intellectual Property”)
described or referred to in the Exchange Act Documents as owned or possessed by it or that are necessary for the conduct of its business as now conducted or as proposed to be conducted as described in the Exchange Act Documents except where the
failure to currently own or possess would not have a Material Adverse Effect, (ii) the Company is not infringing, or has not received any notice of, or has any knowledge of, any asserted infringement by the Company of, any rights of a third party
with respect to any Intellectual Property that, individually or in the aggregate, would have a Material Adverse Effect and (iii) the Company has not received any notice of, or has any knowledge of, infringement by a third party with respect to any
Intellectual Property rights of the Company that, individually or in the aggregate, would have a Material Adverse Effect. 
  
 4.9 Financial Statements. The financial statements of the Company and the related notes contained in the Exchange Act Documents present fairly, in
accordance with generally accepted accounting principles, the financial position of the Company as of the dates indicated, and the results of its operations and cash flows for the periods therein specified consistent with the books and records of
the Company except that the unaudited interim financial statements were or are subject to normal and recurring year-end adjustments which are not expected to be material in amount. Such financial statements (including the related notes) have been
prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods therein specified, except as may be included in the notes to such financial statements, or in the case of unaudited statements,
as may be permitted by the SEC on Form 10-Q under the Exchange Act and except as disclosed in the Exchange Act Documents. The other financial information contained in the Exchange Act Documents has been prepared on a basis consistent with the
financial statements of the Company. 
  
 4.10 No Material
Adverse Change. Except as disclosed in the Exchange Act Documents, since March 31, 2003, there has not been (i) any material adverse change in the financial condition or earnings of the Company considered as one enterprise, (ii) any material
adverse event affecting the Company, (iii) any obligation, direct or contingent, that is material to the Company considered as one enterprise, incurred by the Company, except obligations incurred in the ordinary course of business, (iv) any dividend
or distribution of any kind declared, paid or made on the capital stock of the Company, or (v) any loss or damage (whether or not insured) to the physical property of the Company which has been sustained which has a Material Adverse Effect.

  
 4.11 NASDAQ Compliance. The Company’s Common Stock
is registered pursuant to Section 12(g) of the Exchange Act and is listed on The Nasdaq Stock Market, Inc. National Market (the “Nasdaq Market”), and the Company has taken no action designed to, or likely to have the effect of, terminating
the registration of the Common Stock under the Exchange Act or de-listing the Common Stock from the Nasdaq Market, nor has the Company received any notification that the Securities and Exchange Commission (the “SEC”) or the National
Association of Securities Dealers, Inc. (“NASD”) is contemplating terminating such registration or listing. 
  
 4.12 Reporting Status. The Company has filed in a timely manner all documents that the Company was required to file under the Exchange Act during
the 12 months preceding the date of this Agreement. To the knowledge of the Company, the following documents complied in all material respects with the SEC’s requirements as of their respective filing dates, and the information contained
therein as of the date thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were made
not misleading: 
  

 4 

 (a) Form 10-K for the year ended September 30, 2002, as amended, Form 10-Q for the quarters ended
December 31, 2002 and March 31, 2003, each as amended, Proxy Statement for the meeting held on January 28, 2003, and 
  
 (b) All other documents, if any, filed by the Company with the SEC since September 30, 2002 pursuant to the reporting requirements of the Exchange Act.

  
 4.13 Listing. The Company shall comply with all
requirements of the National Association of Securities Dealers, Inc. with respect to the issuance of the Shares and the listing thereof on the Nasdaq Market. 
  
 4.14 No Manipulation of Stock. The Company has not taken and will not, in violation of applicable law, take, any action designed to or that might
reasonably be expected to cause or result in stabilization or manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares. 
  
 4.15 Company not an “Investment Company”. The Company has been advised of the rules and requirements under the Investment Company Act of
1940, as amended (the “Investment Company Act”). The Company is not, and immediately after receipt of payment for the Shares will not be, an “investment company” or an entity “controlled” by an “investment
company” within the meaning of the Investment Company Act and shall conduct its business in a manner so that it will not become subject to the Investment Company Act. 
  
 5. Representations, Warranties and Covenants of the Investor. 
  
 5.1 The Investor represents and warrants to, and covenants with, the Company
that: (i) the Investor is an “accredited investor” as defined in Regulation D under the Securities Act and the Investor is also knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to
investments in shares presenting an investment decision like that involved in the purchase of the Shares, including investments in securities issued by the Company and investments in comparable companies, and has requested, received, reviewed and
considered all information it deemed relevant in making an informed decision to purchase the Shares; (ii) the Investor is acquiring the number of Shares set forth in Section 3 of the Stock Purchase Agreement in the ordinary course of its business
and for its own account for investment only and with no present intention of distributing any of such Shares or any arrangement or understanding with any other persons regarding the distribution of such Shares; (iii) the Investor will not, directly
or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares except in compliance with the Securities Act, applicable state securities laws
and the respective rules and regulations promulgated thereunder; (iv) all of the representations made by the Investor are true, correct and complete as of the date hereof and will be true, correct and complete as of the Closing Date; (v) the
Investor will notify the Company immediately of any change in any of such information until such time as the Investor has sold all of its Shares or until the Company is no longer required to keep the Registration Statement effective; and (vi) the
Investor has, in connection with its decision to purchase the number of Shares set forth in Section 3 of the Stock Purchase Agreement, relied only upon the Exchange Act Documents and the representations and warranties of the Company contained
herein. The Investor understands that its acquisition of the Shares has not been registered under the Securities Act or registered or qualified under any state securities law in reliance on specific exemptions therefrom, which exemptions may depend
upon, among other things, the bona fide nature of the Investor’s investment intent as expressed herein. There are no suits, pending litigation, or claims against the undersigned that could materially affect the net worth of the Investor.

  
 5.2 The Investor acknowledges that it has been provided with a
copy of the Exchange Act Documents and has carefully reviewed the same. The Investor further acknowledges that the Company has made available to it the opportunity to ask questions of and receive answers from the Company’s officers and
directors concerning the terms and conditions of this Agreement and the business and financial condition of the Company, and the Investor has received to its satisfaction, such information about the business and financial condition of the Company
and the terms and conditions of the Agreement as it has requested. The Investor has carefully considered the potential risks relating to the Company and a purchase of the Securities, and fully understands that the Securities are speculative
investments, which involve a high degree of risk of loss of the Investor’s entire investment. Among others, the undersigned has carefully considered each of the risks identified under the caption “Risk Factors” in the Exchange Act
Documents. 
  
 5.3 The Investor acknowledges, represents and
agrees that no action has been or will be taken in any jurisdiction outside the United States by the Company that would permit an offering of the Shares, or possession or distribution of offering materials in connection with the issue of the Shares,
in any jurisdiction outside the United States where legal action by the 

  

 5 

 
Company for that purpose is required. Each Investor outside the United States will comply with all applicable laws and regulations in each foreign
jurisdiction in which it purchases, offers, sells or delivers Shares or has in its possession or distributes any offering material, in all cases at its own expense. 
  
 5.4 The Investor hereby covenants with the Company not to make any sale of the Shares without complying with the provisions
of this Agreement and without causing the prospectus delivery requirement under the Securities Act to be satisfied, and the Investor acknowledges that the certificates evidencing the Shares will be imprinted with a legend that prohibits their
transfer except in accordance therewith. The Investor acknowledges that there may occasionally be times when the Company determines that it must suspend the use of the Prospectus forming a part of the Registration Statement, as set forth in Section
6.2(c). The undersigned is aware that, in such event, the Securities will not be subject to ready liquidation, and that any Securities purchased by the undersigned would have to be held during such suspension. The overall commitment of the Investor
to investments, which are not readily marketable, is not excessive in view of the Investor’s net worth and financial circumstances, and any purchase of the Securities will not cause such commitment to become excessive. The Investor is able to
bear the economic risk of an investment in the Securities. 
  
 5.5
The Investor further represents and warrants to, and covenants with, the Company that (i) the Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken
all necessary action to authorize the execution, delivery and performance of this Agreement, and (ii) this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as the indemnification agreements of the Investors herein may be legally unenforceable. 
  
 5.6 Investor will not use any of the restricted Shares acquired pursuant to
this Agreement to cover any short position in the Common Stock of the Company if doing so would be in violation of applicable securities laws. 
  
 5.6 The Investor understands that nothing in the Exchange Act Documents, this Agreement or any other materials presented to the Investor in connection
with the purchase and sale of the Shares constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors, as it, in its sole discretion, has deemed necessary or appropriate in connection with its
purchase of Shares. 
  
 6. Registration of the Shares;
Compliance with the Securities Act. 
  
 6.1 Registration
Procedures and Other Matters. The Company shall: 
  
 (a)
subject to receipt of necessary information from the Investors after prompt request from the Company to the Investors to provide such information, prepare and file with the SEC, within 30 days after the Closing Date, a registration statement on Form
S-3 (the “Registration Statement”) to enable the resale of the Shares by the Investors from time to time through the automated quotation system of the Nasdaq Market or in privately-negotiated transactions; 
  
 (b) use commercially reasonable efforts, subject to receipt of necessary
information from the Investors after prompt request from the Company to the Investors to provide such information, to cause the Registration Statement to become effective within 90 days after the Registration Statement is filed by the Company such
efforts to include, without limiting the generality of the foregoing, preparing and filing with the SEC in such 30-day period any financial statements that are required to be filed prior to the effectiveness of such Registration Statement;

  
 (c) use commercially reasonable efforts to prepare and file
with the SEC such amendments and supplements to the Registration Statement and the Prospectus used in connection therewith as may be necessary to keep the Registration Statement current, effective and free from any material misstatement or omission
to state a material fact for a period not exceeding, with respect to each Investor’s Shares purchased hereunder, the earlier of (i) the second anniversary of the Closing Date, (ii) the date on which the Investor may sell all Shares then held by
the Investor without restriction by the volume limitations of Rule 144(e) of the Securities Act, or (iii) such time as all Shares purchased by such Investor in this Offering have been sold pursuant to a registration statement or exemption from
registration; 
  
 (d) furnish to the Investor with respect to the
Shares registered under the Registration Statement such number of copies of the Registration Statement, Prospectuses and Preliminary Prospectuses in conformity with the 

  

 6 

 
requirements of the Securities Act and such other documents as the Investor may reasonably request, in order to facilitate the public sale or other
disposition of all or any of the Shares by the Investor; provided, however, that the obligation of the Company to deliver copies of Prospectuses or Preliminary Prospectuses to the Investor shall be subject to the receipt by the Company of reasonable
assurances from the Investor that the Investor will comply with the applicable provisions of the Securities Act and of such other securities or blue sky laws as may be applicable in connection with any use of such Prospectuses or Preliminary
Prospectuses; 
  
 (e) file documents required of the Company for
normal blue sky clearance in states specified in writing by the Investor and use commercially reasonable efforts to maintain such blue sky qualifications during the period the Company is required to maintain the effectiveness of the Registration
Statement pursuant to Section 6.1(c); provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented; 

 
 (f) bear all expenses in connection with the procedures in paragraph (a)
through (e) of this Section 6.1 and the registration of the Shares pursuant to the Registration Statement; and 
  
 (g) advise the Investor, promptly after it shall receive notice or obtain knowledge of the issuance of any stop order by the SEC delaying or suspending
the effectiveness of the Registration Statement or of the initiation or threat of any proceeding for that purpose; and it will promptly use commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal at the
earliest possible moment if such stop order should be issued. 
  
 Notwithstanding anything to the contrary herein, the Registration Statement shall cover only the Shares. In no event at any time before the Registration Statement becomes effective with respect to the Shares shall the Company publicly
announce or file any other registration statement, other than registrations on Form S-8, without the prior written consent of a majority in interest of the Investors. 
  
 The Company understands that the Investor disclaims being an underwriter, but the Investor being deemed an underwriter by
the SEC shall not relieve the Company of any obligations it has hereunder; provided, however that if the Company receives notification from the SEC that the Investor is deemed an underwriter, then the period by which the Company is
obligated to submit an acceleration request to the SEC shall be extended to the earlier of (i) the 90th day after such SEC notification, or (ii) 120 days after the initial filing of the Registration Statement with the SEC. 
  
 6.2 Transfer of Shares after Registration; Suspension. 
  
 (a) The Investor agrees that it will not effect any disposition of the
Shares or its right to purchase the Shares that would constitute a sale within the meaning of the Securities Act except as contemplated in the Registration Statement referred to in Section 6.1 and as described below or as otherwise permitted by law,
and that it will promptly notify the Company of any changes in the information set forth in the Registration Statement regarding the Investor or its plan of distribution. 
  
 (b) Except in the event that paragraph (c) below applies, the Company shall (i) if deemed necessary by the Company, prepare
and file from time to time with the SEC a post-effective amendment to the Registration Statement or a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required
document so that, to the knowledge of the Company, such Registration Statement will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading, and so that, as thereafter delivered to purchasers of the Shares being sold thereunder, such Prospectus will not contain to the knowledge of the Company an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (ii) provide the Investor copies of any documents filed pursuant to Section 6.2(b)(i); and (iii) inform each
Investor that the Company has complied with its obligations in Section 6.2(b)(i) (or that, if the Company has filed a post-effective amendment to the Registration Statement which has not yet been declared effective, the Company will notify the
Investor to that effect, will use commercially reasonable efforts to secure the effectiveness of such post-effective amendment as promptly as possible and will promptly notify the Investor pursuant to Section 6.2(b)(i) hereof when the amendment has
become effective). 
  
 (c) Subject to paragraph (d) below, in the
event (i) of any request by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to a Registration Statement or related Prospectus or for
additional information; (ii) of the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any 

  

 7 

 
proceedings for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; or (iv) of any event or circumstance which, upon the advice of its counsel, necessitates the making of any changes
in the Registration Statement or Prospectus, or any document incorporated or deemed to be incorporated therein by reference, so that, to the knowledge of the Company, in the case of the Registration Statement, it will not contain any untrue
statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the Prospectus, it will not contain to the knowledge of the
Company any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; then
the Company shall deliver a certificate in writing to the Investor (the “Suspension Notice”) to the effect of the foregoing and, upon receipt of such Suspension Notice, the Investor will refrain from selling any Shares pursuant to the
Registration Statement (a “Suspension”) until the Investor’s receipt of copies of a supplemented or amended Prospectus prepared and filed by the Company, or until it is advised in writing by the Company that the current Prospectus may
be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in any such Prospectus. In the event of any Suspension, the Company will use commercially reasonable efforts to
cause the use of the Prospectus so suspended to be resumed as soon as reasonably practicable within 20 business days after the delivery of a Suspension Notice to the Investor. In addition to and without limiting any other remedies (including,
without limitation, at law or at equity) available to the Investor, the Investor shall be entitled to specific performance in the event that the Company fails to comply with the provisions of this Section 6.2(c). 
  
 (d) Notwithstanding the foregoing paragraphs of this Section 6.2, the
Investor shall not be prohibited from selling Shares under the Registration Statement as a result of Suspensions on more than four occasions of not more than 30 days each in any twelve month period, unless, in the good faith judgment of the
Company’s Board of Directors, upon the written opinion of counsel of counsel, the sale of Shares under the Registration Statement in reliance on this paragraph 6.2(d) would be reasonably likely to cause a violation of the Securities Act or the
Exchange Act and result in liability to the Company. 
  
 (e)
Provided that a Suspension is not then in effect, the Investor may sell Shares under the Registration Statement, provided that it arranges for delivery of a current Prospectus to the transferee of such Shares. Upon receipt of a request therefore,
the Company has agreed to provide an adequate number of current Prospectuses to the Investor and to supply copies to any other parties requiring such Prospectuses. 
  
 (f) In the event of a sale of Shares by the Investor pursuant to the Registration Statement, the Investor must also deliver
to the Company’s transfer agent, with a copy to the Company, a Certificate of Subsequent Sale substantially in the form attached hereto as Exhibit A, so that the Shares may be properly transferred. 
  
 6.3 Indemnification. For the purpose of this Section 6.3: 

 
 (i) the term “Selling Stockholder” shall include the Investor
and any affiliate of such Investor; 
  
 (ii) the term
“Registration Statement” shall include the Prospectus in the form first filed with the SEC pursuant to Rule 424(b) of the Securities Act or filed as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing
is required, exhibit, supplement or amendment included in or relating to the Registration Statement referred to in Section 6.1; and 
  
 (iii) the term “untrue statement” shall include any untrue statement or alleged untrue statement, or any omission or alleged omission to state
in the Registration Statement a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 (a) The Company agrees to indemnify and hold harmless each Selling
Stockholder from and against any losses, claims, damages or liabilities to which such Selling Stockholder may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in
respect thereof) arise out of, or are based upon (i) any untrue statement of a material fact contained in the Registration Statement as amended at the time of effectiveness or any omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, or (ii) any failure by the Company to fulfill any undertaking included in the Registration Statement as amended at the time of effectiveness, and the Company will reimburse such Selling
Stockholder for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim, or preparing to defend any such action, proceeding or claim, provided,
however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such Registration Statement or any 

  

 8 

 
omission of a material fact required to be stated therein or necessary to make the statements therein not misleading in reliance upon and in conformity with
written information furnished to the Company by or on behalf of such Selling Stockholder specifically for use in preparation of the Registration Statement or the failure of such Selling Stockholder to comply with its covenants and agreements
contained in Section 6.2 hereof respecting sale of the Shares or any statement or omission in any Prospectus that is corrected in any subsequent Prospectus that was delivered to the Selling Stockholder prior to the pertinent sale or sales by the
Selling Stockholder. The Company shall reimburse each Selling Stockholder for the amounts provided for herein on demand as such expenses are incurred. 
  
 (b) The Investor agrees to indemnify and hold harmless the Company (and each person, if any, who controls the Company within the meaning of Section 15 of
the Securities Act, each officer of the Company who signs the Registration Statement and each director of the Company) from and against any losses, claims, damages or liabilities to which the Company (or any such officer, director or controlling
person) may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, (i) any failure to comply with the covenants
and agreements contained in Section 6.2 hereof respecting sale of the Shares, or (ii) any untrue statement of a material fact contained in the Registration Statement or any omission of a material fact required to be stated therein or necessary to
make the statements therein not misleading if such untrue statement or omission was made in reliance upon and in conformity with written information furnished by or on behalf of the Investor specifically for use in preparation of the Registration
Statement, and the Investor will reimburse the Company (or such officer, director or controlling person), as the case may be, for any legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action,
proceeding or claim; provided that the Investor’s obligation to indemnify the Company shall be limited to the net amount received by the Investor from the sale of the Shares. 
  
 (c) Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect of
which indemnity is to be sought against an indemnifying person pursuant to this Section 6.3, such indemnified person shall notify the indemnifying person in writing of such claim or of the commencement of such action, but the omission to so notify
the indemnifying person will not relieve it from any liability which it may have to any indemnified person under this Section 6.3 (except to the extent that such omission materially and adversely affects the indemnifying person’s ability to
defend such action) or from any liability otherwise than under this Section 6.3. Subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified person, the indemnifying person shall be entitled to
participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified person promptly after receiving the aforesaid notice from such indemnified person, shall be entitled to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person
for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof, provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the
opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the indemnified person shall be entitled to retain its own counsel at the
expense of such indemnifying person; provided, however, that no indemnifying person shall be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) for all indemnified parties. In no event
shall any indemnifying person be liable in respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the terms of such settlement; provided that such consent shall not be unreasonably withheld.
No indemnifying person shall, without the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnification
could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 
  
 (d) If the indemnification provided for in this Section 6.3 is unavailable
to or insufficient to hold harmless an indemnified person under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying person
shall contribute to the amount paid or payable by such indemnified person as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Company on
the one hand and the Investor, as well as any other Selling Stockholders under such registration statement on the other in connection with the statements or omissions or other matters which resulted in such losses, claims, damages or liabilities (or
actions in respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether the untrue statement relates to information
supplied by the Company on the one hand or an Investor or other Selling Stockholder on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. The Company and the
Investor agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Investor and other Selling Stockholders were treated as one entity 

  

 9 

 
for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection
(d). The amount paid or payable by an indemnified person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), the Investor shall not be required to contribute any amount in excess of
the amount by which the net amount received by the Investor from the sale of the Shares to which such loss relates exceeds the amount of any damages which such Investor has otherwise been required to pay by reason of such untrue statement. No person
guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Investor’s obligations in this
subsection to contribute shall be in proportion to its Investor sale of Shares to which such loss relates and shall not be joint with any other Investors. 
  
 (e) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations
regarding the provisions hereof including, without limitation, the provisions of this Section 6.3, and are fully informed regarding said provisions. They further acknowledge that the provisions of this Section 6.3 fairly allocate the risks in light
of the ability of the parties to investigate the Company and its business in order to assure that adequate disclosure is made in the Registration Statement as required by the Act and the Exchange Act. The parties are advised that federal or state
public policy as interpreted by the courts in certain jurisdictions may be contrary to certain of the provisions of this Section 6.3, and the parties hereto hereby expressly waive and relinquish any right or ability to assert such public policy as a
defense to a claim under this Section 6.3 and further agree not to attempt to assert any such defense. 
  
 6.4 Termination of Conditions and Obligations. The conditions precedent imposed by Section 4 or this Section 5 upon the transferability of the
Shares shall cease and terminate as to any particular number of the Shares when such Shares shall have been effectively registered under the Securities Act and sold or otherwise disposed of in accordance with the intended method of disposition set
forth in the Registration Statement covering such Shares or at such time as an opinion of counsel reasonably satisfactory to the Company shall have been rendered to the effect that such conditions are not necessary in order to comply with the
Securities Act. 
  
 6.5 Information Available. 

 
 (a) A copy of the Company Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K and Proxy Statements are available on the SEC’s website at www.sec.gov; and 
  
 (b) Upon the request of the Investor, the Company will mail a copy of the filings listing in Section 6.5(a) with exhibits with the SEC and all other
information that is made available to stockholders to the Investor; and 
  
 (c) Upon the reasonable request of the Investor, the company will mail the Investor, an adequate number of copies of the Prospectuses to supply to any other party requiring such Prospectuses. 
  
 7. Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be mailed (A) if within the United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered from outside the
United States, by International Federal Express or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier,
one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed, (iv) if delivered by facsimile, upon electronic confirmation of receipt and shall be delivered as addressed as follows:

  

	 	(a)	 	if to the Company, to: 

  
 Netopia, Inc. 
 MarketPlace Tower 
 6001 Shellmound Street, 4th Floor 
 Emeryville, CA 94608 
 Attn: William D. Baker, CFO 
 Tel: (510) 420-7512 
  

	 	(b)	 	with a copy to: 

  

 10 

 Netopia, Inc. 
 MarketPlace Tower 
 6001 Shellmound Street, 4th Floor 
 Emeryville, CA 94608 
 Attn: General Counsel 
 Tel: (510) 420-7513 
 Fax: (510) 420-7608 
  

	 	(c)	 	if to the Investor, at its address on the signature page hereto, or at such other address or addresses as may have been furnished to the Company in writing.

  
 8. Changes. This Agreement may not be
modified or amended except pursuant to an instrument in writing signed by the Company and the Investor. 
  
 9. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to
be part of this Agreement. 
  
 10. Severability. In case
any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

  
 11. Governing Law. This Agreement shall be governed by,
and construed in accordance with, the internal laws of the State of Delaware, without giving effect to the principles of conflicts of law. 
  
 12. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. 
  
 13. Rule 144. The Company covenants that it will timely file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder (or, if the Company is not required to file such reports, it will, upon the request of any Investor holding Shares purchased hereunder made after the
first anniversary of the Closing Date, make publicly available such information as necessary to permit sales pursuant to Rule 144 under the Securities Act), and it will take such further action as any such Investor may reasonably request, all to the
extent required from time to time to enable such Investor to sell Shares purchased hereunder without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or (b) any similar rule or regulation hereafter adopted by the SEC. Upon the request of the Investor, the Company will deliver to such holder a written statement as to whether it has complied with such information and
requirements. 
  
 14. Confidential Information. The
Investor represents to the Company that, at all times during the Company’s offering of the Shares, the Investor has maintained in confidence all non-public information regarding the Company received by the Investor from the Company or its
agents, and covenants that it will continue to maintain in confidence such information and shall not use such information for any purpose other than to evaluate the purchase of the Shares until such information (a) becomes generally publicly
available other than through a violation of this provision by the Investor or its agents or (b) is required to be disclosed in legal proceedings (such as by deposition, interrogatory, request for documents, subpoena, civil investigation demand,
filing with any governmental authority or similar process), provided, however, that before making any use or disclosure in reliance on this subparagraph (b) the Investor shall give the Company at least fifteen (15) days prior written notice (or such
shorter period as required by law) specifying the circumstances giving rise thereto and will furnish only that portion of the non-public information which is legally required and will exercise commercially reasonable efforts to obtain reliable
assurance that confidential treatment will be accorded any non-public information so furnished. 
  

 11 

 [Company Letterhead] 
  
                     , 200     
  
 Re: Netopia, Inc.; Registration Statement on Form S-3 
  
 Dear Selling Stockholder: 
  
 Enclosed please find five (5) copies of a prospectus dated
            ,          (the “Prospectus”) for your use in reselling your shares of common stock, $0.001 par value (the
“Shares”), of Netopia, Inc. (the “Company”), under the Company’s Registration Statement on Form S-3 (Registration No. 333-              ) (the
“Registration Statement”), which has been declared effective by the Securities and Exchange Commission. As a selling stockholder under the Registration Statement, you have an obligation to deliver a copy of the Prospectus to each
purchaser of your Shares, either directly or through the broker-dealer who executes the sale of your Shares. 
  
 The Company is obligated to notify you in the event that it suspends trading under the Registration Statement in accordance with the terms of the Stock
Purchase Agreement between the Company and you. During the period that the Registration Statement remains effective and trading thereunder has not been suspended, you will be permitted to sell your Shares, which are included in the Prospectus under
the Registration Statement. Upon a sale of any Shares under the Registration Statement, you or your broker will be required to deliver to the Transfer Agent, (1) your restricted stock certificate(s) representing the Shares, (2) instructions for
transfer of the Shares sold, and (3) a representation letter from your broker, or from you if you are selling in a privately negotiated transaction, or from such other appropriate party, in the form of Exhibit A attached hereto (the
“Representation Letter”). The Representation Letter confirms that the Shares have been sold pursuant to the Registration Statement and in a manner described under the caption “Plan of Distribution” in the Prospectus and that such
sale was made in accordance with all applicable securities laws, including the prospectus delivery requirements. 
  
 Please note that you are under no obligation to sell your Shares during the registration period. However, if you do decide to sell, you must comply with
the requirements described in this letter or otherwise applicable to such sale. Your failure to do so may result in liability under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Please remember that all
sales of your Shares must be carried out in the manner set forth under the caption “Plan of Distribution” in the Prospectus if you sell under the Registration Statement. The Company may require an opinion of counsel reasonably satisfactory
to the Company if you choose another method of sale. You should consult with your own legal advisor(s) on an ongoing basis to ensure your compliance with the relevant securities laws and regulations. 
  
 In order to maintain the accuracy of the Prospectus, you must notify the
undersigned upon the sale, gift, or other transfer of any Shares by you, including the number of Shares being transferred, and in the event of any other change in the information regarding you which is contained in the Prospectus. For example, you
must notify the undersigned if you enter into any arrangement with a broker-dealer for the sale of shares through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker-dealer. Depending on the
circumstances, such transactions may require the filing of a supplement to the prospectus in order to update the information set forth under the caption “Plan of Distribution” in the Prospectus. 
  
 Should you need any additional copies of the Prospectus, or if you have any
questions concerning the foregoing, please write to me at Netopia, Inc., MarketPlace Tower, 6001 Shellmound Street, 4th Floor, Emeryville, CA 94608, Attn: William D. Baker, CFO. Thank you. 
  
 Sincerely, 
  
 William D. Baker, 
 Chief Financial Officer 
  

 12 

 Exhibit A 
  

CERTIFICATE OF SUBSEQUENT SALE 
  
 Attn: 
  

	 	RE:	 	Sale of Shares of Common Stock of Netopia (the “Company”) pursuant to the Company’s Prospectus dated
            ,          (the “Prospectus”) 

  
 Dear Sir/Madam: 
  

The undersigned hereby certifies, in connection with the sale of shares of Common Stock of the Company included in the table of Selling Stockholders in
the Prospectus, that the undersigned has sold the shares pursuant to the Prospectus and in a manner described under the caption “Plan of Distribution” in the Prospectus and that such sale complies with all securities laws applicable to the
undersigned, including, without limitation, the Prospectus delivery requirements of the Securities Act of 1933, as amended. 
  
 Selling Stockholder (the beneficial owner):_______________________________________________________________ 
  
 Record Holder (e.g., if held in name of nominee):___________________________________________________________ 
  
 Restricted Stock Certificate No.(s): _____________________________________________________________________ 
  
 Number of Shares Sold: _____________________________________________________________________________

  
 Date of Sale: _____________________________________________________________________________________ 
  
 In the event that you receive a stock certificate(s) representing more shares of Common Stock than have been sold by the undersigned, then you should
return to the undersigned a newly issued certificate for such excess shares in the name of the Record Holder and BEARING A RESTRICTIVE LEGEND. Further, you should place a stop transfer on your records with regard to such certificate.

  

	 	 	 	 	 Very truly yours,

			
	 Dated:                                     
                                        
                    
	 	 	 	 By:                                      
                                        
                        

			
	 	 	 	 	 Print
Name:                                       
                                        
       

			
	 	 	 	 	 Title:                                     
                                        
                      

  

	cc:	 	William D. Baker, CFO, Netopia, Inc. 

  

 13

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