Document:

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                                                                    EXHIBIT 10.3

                           CREDIT FACILITY AGREEMENT

        This CREDIT FACILITY AGREEMENT (the "Agreement") is entered into as of
December 21, 1999 by and among OMNIS TECHNOLOGY CORPORATION, A DELAWARE
CORPORATION (the "Company"), and ASTORIA CAPITAL PARTNERS, L.P., A CALIFORNIA
LIMITED PARTNERSHIP ("Lender").

        In consideration of the premises and the mutual covenants and agreements
herein set forth, the parties hereto agree as follows:

        1. CREDIT FACILITY AMOUNT AND TERMS.

                1.1. AMOUNT. During the Availability Period described below,
Lender will provide a line of credit to the Company ("line of credit"). The
amount of the line of credit is Three Million Dollars ($3,000,000) (the
"Commitment"). This is a non-revolving line of credit. Any amount borrowed, even
if repaid before the Maturity Date of the line of credit, permanently reduces
the remaining available line of credit.

                1.2. ADVANCES; DISBURSEMENTS. During the first ten (10) days of
each month of the Availability Period (except for December 1999, during which
advances may be requested until December 31), the Company may request one or
more advances in an aggregate monthly amount of up to Five Hundred Thousand
Dollars ($500,000). The Company agrees not to permit the outstanding principal
balance of the line of credit to exceed the Commitment. Each advance must be for
at least One Hundred Thousand Dollars ($100,000), or for the amount of the
remaining available line of credit if less. Each disbursement request shall be
made in writing and shall be delivered to the Lender in the manner described in
Section 7.6 hereof. The Lender shall make all disbursements by wire transfer to
an account or accounts designated by the Company within three (3) business days
after delivery of a disbursement request. The first advance shall be made to the
Company within one (1) business day after the Effective Date (as defined in
Section 1.4 below) in the amount of Five Hundred Thousand Dollars ($500,000)
(and this Agreement shall be deemed to be the Company's disbursement request for
such amount).

                1.3. AVAILABILITY PERIOD. The "Availability Period" of the line
of credit commences on the Effective Date and expires on May 31, 2000 (the
"Maturity Date") unless there is a Change of Control (as defined below). If
there is a Change of Control, then in addition to the Lender's other remedies,
the Lender may terminate the Availability Period and may require the Company to
immediately repay any amounts of principal and interest accrued and unpaid under
the Note (as defined below). The term "Change of Control" shall mean the
consummation of:

                        (a) The sale or other transfer of more than Fifty
Percent (50%) of the voting capital stock of the Company in one or more related
transactions for material consideration to any person or entity or group of
persons or entities not previously shareholders of the Company and not owned or
controlled by any previous shareholders of the Company, with such shareholder
status determined immediately prior to the transaction; or

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                (b) The sale or other transfer of all or substantially all of
the assets of the Company in one or more related transactions not in the
ordinary course of the business of the Company to unrelated third parties,
whether by sale, exchange, merger, consolidation, reorganization, dissolution or
liquidation;

other than (1) any transaction in which the Company (with the same identity of
ownership after such transaction as before such transaction) is a surviving
parent of the transferee corporation or entity or is a surviving subsidiary of a
transferee parent corporation or entity owned or controlled by persons who,
immediately prior to such transaction, owned a majority of the outstanding
voting stock of the Company; (2) any sale or transfer of the capital stock owned
or controlled by the majority shareholder or shareholders of the Company to
trusts or comparable entities for the primary benefit of such shareholders or
their family members or to the estate, heirs or devisees of any such shareholder
in the event of his or her death; or (3) any transaction in which the Company
reincorporates in another jurisdiction or engages in other internal
reorganization or changes in corporate structure without the receipt of
consideration and with the same identity of ownership as immediately before such
transaction; none of which shall be a Change of Control hereunder.

        1.4. LOAN DOCUMENTS; DELIVERY; EFFECTIVE DATE. The "Loan Documents" are
the documents indicated below, each dated as of the date of this Agreement
unless indicated otherwise. A capitalized term used in this Agreement but not
defined herein has the meaning given in the other Loan Documents.

                (a) The Agreement

                (b) The Note

                (c) The Warrant (as defined below)

Each party shall execute and deliver to the other party counterpart copies of
the Loan Documents by telefacsimile or hand delivery on or before the Effective
Date (as defined in this Section 1.4). In addition, on or before the Effective
Date (as defined in this Section 1.4), (a) the Company shall deliver to the
Lender at its address set forth on the signature page hereof (or to Lender's
counsel at its San Francisco office, att'n: Jeff L. Schaffer) an original
executed counterpart of the Credit Facility Agreement bearing an authorized
signature on behalf of the Company, and (b) the Lender shall deliver to the
Company at its address set forth on the signature page hereof (or to the
Company's counsel at its San Francisco office, att'n: Scott Kline) an original
executed counterpart of the Credit Facility Agreement. Finally, on or before the
Effective Date (as defined in this Section 1.4), the Company shall obtain the
Lender's signature in the "ACCEPTANCE BY HOLDER" signature line on the last page
of the Warrant, and the Company shall deliver by Federal Express or other
overnight courier directly to ING Barings, LLC, 350 Park Ave., 3rd Floor, New
York, New York, 10022, Att'n: Dave Johnson, both of the following documents: (i)
the executed original Note bearing an authorized signature on behalf of the
Company, and (ii) the executed original Warrant bearing authorized signatures on
behalf of the Company and the Lender. For purposes of this Agreement, the
"Effective Date" shall be the date that the last of all

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of the executions and deliveries specified in this Section 1.4 (including,
without limitation, Furham Selz's actual receipt of the executed original Note
and Warrant) has occurred.

        2. PROMISSORY NOTE.

                2.1. ISSUANCE OF NOTE; INTEREST RATE. Subject to the terms and
conditions of this Agreement, at the time of the execution and delivery of this
Agreement by the parties, the Company will issue a promissory note of the
Company payable to the Lender in the maximum principal amount of the Commitment
and bearing interest at the rate of eight percent (8%) per annum (except that
upon the occurrence of a Default and for so long as any Default remains
outstanding, the outstanding principal amount of such Note shall bear interest
at the Default rate of ten percent (10%) per annum), in substantially the form
of Exhibit A hereto (the "Note"), and such Note shall be delivered for the
benefit of the Lender as provided in Section 1.4. Notwithstanding any provision
herein, the Company and Lender intend that the total liability for payments in
the nature of interest shall not exceed the applicable limits imposed by any
applicable state or federal interest rate laws. If any payments in the nature of
interest, additional interest, and other charges made hereunder are held to be
in excess of the applicable limits imposed by any applicable state or federal
laws, it is agreed that any such amount held to be in excess shall be considered
payment of principal and the indebtedness evidenced thereby shall be reduced by
such amount in the inverse order of maturity so that the total liability for
payments in the nature of interest, additional interest and other charges shall
not exceed the applicable limits imposed by any applicable state or federal
interest rate laws.

                2.2. TERM AND PREPAYMENT OF NOTES. All unpaid principal and all
accrued and unpaid interest on the Note shall be due and payable on the Maturity
Date. The Company may prepay all or part of the Note at any time without penalty
and, upon payment of the Debt (as defined herein) in full, may terminate the
line of credit. Under all events and circumstances, the line of credit shall
terminate no later than the Maturity Date.

                2.3. FEES AND EXPENSES. In addition to principal and interest
with respect to the Note, the Company agrees on the Closing Date, to reimburse
the Lender for (or pay to the Lender's counsel directly) up to Twenty-Five
Thousand Dollars ($25,000) of the reasonable fees and expenses of Lender's
counsel in connection with the drafting and negotiation of this Agreement and
the other Loan Documents (including a reasonable estimate of post-closing fees
and expenses of such counsel). To the extent that they are not paid on the
Closing Date, the fees and expenses described in this Section 2.3 (collectively,
"Fees and Expenses") shall be payable within thirty (30) days after invoice by
the Lender.

                2.4. SECURITY FOR THE NOTES.

                        (a) GRANT OF SECURITY INTEREST. The Company hereby
grants to the Lender a security interest in the property described in Section
2.4(c) below (collectively, the "Collateral") to secure payment of all amounts
due under this Agreement or the Note, including without limitation the principal
amount of all advances and all accrued interest thereon (collectively, the
"Debt") and performance by the Company of all of the Company's covenants,
liabilities, undertakings and obligations to the Lender hereunder, whether
absolute or contingent.

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                        (b) UCC-1 FINANCING STATEMENTS. Concurrently with the
execution of this Agreement, the Company shall (1) execute and deliver to Lender
UCC-1 Financing Statements ("UCC-1 Financing Statements") in favor of the Lender
covering the Collateral in form and substance reasonably satisfactory to Lender.
In addition, at Lender's request from time to time after delivery of the
Financing Statement, the Company will execute and deliver to Lender such other
documents as Lender may reasonably request to perfect Lender's security interest
in the Collateral.

                        (c) COLLATERAL. The Collateral shall consist of all
tangible and intangible property of the Company (and all of the Company's right,
title and interest therein and thereto), whether now owned by the Company or
acquired by the Company after the date hereof at any time, including, but not
limited to, goods, inventories, machinery, equipment, fixtures, documents,
patents, patent applications, customer lists, contract rights, instruments,
books, records, files, licenses of patents and technology, computer programs in
source or object code, general intangibles, goodwill, chattel paper, accounts
receivable and accounts, including all cash and non-cash proceeds of all such
property, the products and increase of all such property, and all additions to
and replacements of all such property. For purposes hereof, the term "proceeds"
includes whatever is receivable or received by the Company when Collateral is
sold, leased, collected, exchanged or otherwise disposed of, whether such
disposition is voluntary or involuntary, and includes, without limitation, all
rights to payment, including return premiums, with respect to any insurance
relating thereto. The Company hereby represents and warrants to the Lender that
the Company is the owner of the Collateral (or, in the case of after-acquired
Collateral, at the time the Company acquires rights in such Collateral, will be
the owner thereof) and such Collateral is free and clear of all liens and
encumbrances, except for any liens and encumbrances that arise by operation of
law (such as mechanic's or materialmen's liens) and that do not secure any
past-due amount owing by the Company or as set forth on Schedule 2.4(c) attached
hereto.

                        (d) WAIVER BY THE COMPANY. To the maximum extent
permitted by law, the Company hereby waives (i) any right to require the Lender
to pursue any particular remedy against the Company or any other person; (ii)
any right to the benefit of, or to direct the application of, any Collateral
until the Debt shall have been paid and performed in full; and (iii) any right
of subrogation to the Lender until the Debt shall have been paid and performed
in full.

                        (e) DEFAULT. The Company shall be deemed in default
("Default") under this Agreement if (1) the Company shall fail to make payment
of the principal amount of all advances hereunder and all accrued interest
thereon as and when due, (2) The Company shall fail to make payment of any Fees
and Expenses hereunder within ten (10) days of when due, (3) the Company shall
file a petition in bankruptcy or for reorganization, arrangement, composition,
readjustment, liquidation, dissolution or other relief of the same nature under
any Federal or state law, or the Company is adjudicated a bankrupt or insolvent
or makes an assignment for the benefit of creditors, or any petition or other
proceeding is filed by the Company for appointment of a trustee, receiver,
conservator or liquidator of all, or substantially all, of the Company's
property, or if any involuntary petition in bankruptcy or other proceeding of a
similar nature shall be filed against the Company and shall not be dismissed
within forty-five (45) days after such

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filing, (4) the Company shall fail to observe or perform any other term or
condition of this Agreement in any material respect, and such failure or breach
shall continue for a period of twenty-one (21) days, or (5) any representation
or warranty of the Company contained in any Loan Document was false or
misleading in any material respect when made or deemed made.

                        (f) REMEDIES. Upon the occurrence of any such Default,
the Lender may, in addition to all rights and remedies available to the Lender
hereunder or under the California Commercial Code, do any one or more of the
following:

                        (1) foreclose or otherwise enforce the Lender's
                        respective security interest in any manner permitted by
                        law or provided for in this Agreement;

                        (2) recover from the Company all costs and expenses,
                        including without limitation reasonable attorneys' fees
                        and costs, incurred or paid by the Lender in exercising
                        any right, power or remedy provided by this Agreement or
                        by law;

                        (3) require the Company to assemble the Collateral and
                        make it available to the Lender at the Company's
                        facilities;

                        (4) enter onto property where any Collateral is located
                        and take and maintain possession thereof and remove the
                        Collateral therefrom with or without judicial process;

                        (5) prior to the disposition of the Collateral, store,
                        process, repair or recondition it or otherwise prepare
                        it for disposition in any commercially reasonable manner
                        and to the extent the Lender deem appropriate; and

                        (6) declare all or any of the Debt to be immediately due
                        and payable (and upon which declaration the Debt shall
                        be so due and payable); provided, however, that in the
                        event of any Default under clause (1), (2) or (3) of
                        Section 2.4(e), all Debt shall automatically and
                        immediately become due and payable without declaration,
                        notice or any other action whatsoever.

If a sufficient sum is not realized from the disposition of Collateral to pay
the Debt then outstanding, the Company shall be liable for and agrees to pay any
deficiency.

                        (g) CUMULATIVE RIGHTS. The rights, powers and remedies
of the Lender hereunder shall be in addition to all rights, powers and remedies
given to the Lender by virtue of any statute or rule of law, all of which
rights, powers and remedies shall be cumulative and may be exercised
successively or concurrently without impairing the Lender's security interest in
the Collateral.

<PAGE>   6

                2.5. ADMINISTRATION.

                        (a) LOAN ACCOUNT. The Lender shall maintain in its
records a loan account for the line of credit hereunder (the "Loan Account") in
which shall be recorded (i) the principal amount of the advances made under the
line of credit, (ii) the amount of interest accrued on the line of credit; (iii)
all other appropriate debits and credits as and when due in accordance with this
Agreement; (iv) all Fees and Expenses; and (v) all payments made by the Company
on the line of credit. All entries in the Loan Account shall be made in
accordance with the customary accounting practices of the Lender as in effect
from time to time. All payments hereunder shall be applied first, to Fees and
Expenses, second, to accrued and unpaid interest, and third, to principal
payments then due and owing.

                        (b) STATEMENTS. The Lender shall deliver to the Company
a written statement each calendar month setting forth the balance of the
principal amount of the line of credit outstanding, all accrued and unpaid
interest thereon, all Fees and Expenses and the remaining available amount of
line of credit. Each such statement shall be subject to subsequent review by the
Company and shall be binding upon the Lender.

        3. THE WARRANT. Concurrently with the issuance of the Note, and subject
to the terms and conditions of this Agreement, at the Closing the Company will
issue to the Lender a non-transferable warrant to purchase shares of capital
stock of the Company (the "Warrant Shares") in substantially the form of Exhibit
B hereto (the "Warrant"). The Warrant Shares shall be subject to the
registration rights set forth in the Warrant. The Warrant shall be delivered by
the Company for the benefit of the Lender in accordance with Section 4.1

        4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to the Lender as follows:

                4.1. ORGANIZATION AND STANDING; ARTICLES AND BYLAWS. The Company
is a corporation duly organized and existing under, and by virtue of, the laws
of the state of Delaware and is in good standing under such laws. The Company
has the requisite corporate power to own and operate its properties and assets,
and to carry on its business as presently conducted and as proposed to be
conducted. The Company is qualified or licensed as a foreign corporation in
California.

                4.2. CORPORATE POWER. The Company has all requisite legal and
corporate power to enter into this Agreement, to issue the Note and Warrant, and
to carry out and perform its obligations under the terms hereof and thereof,
subject to applicable federal and state securities laws.

                4.3. AUTHORIZATION. All corporate action on the part of the
Company, its officers, directors, and stockholders necessary for the sale and
issuance of the Note and Warrant pursuant hereto and the performance of the
Company's obligations hereunder and thereunder has been taken. This Agreement is
a legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, except as limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application
affecting enforcement of

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creditors' rights, and except as limited by application of legal principles
affecting the availability of equitable remedies.

                4.4. NO CONFLICT. To the actual knowledge of the Company, (i)
the execution and delivery of the Loan Documents and the consummation of the
transactions contemplated thereby will not materially conflict with any legally
enforceable contract or agreement between the Company and any third person or
entity; and (ii) the Company is not a party to any outstanding agreement which
any material obligation or agreement is inconsistent with the Loan Documents.

                4.5. USE OF PROCEEDS. The Company shall use the advances
hereunder for general corporate purposes and working capital as deemed necessary
or appropriate by the Board of Directors and Management of the Company.

                4.6. DISCLOSURE. To the actual knowledge of the Company, (i) the
Loan Documents, including the exhibits thereto, and the information delivered to
the Lender pursuant to the Loan Documents do not contain any untrue statement of
a material fact and do not omit to state a material fact necessary in order to
make the statements contained therein or herein not misleading and (ii) there is
no fact which materially adversely affects the business, prospects, condition,
affairs or operations of the Company or any of its properties or assets which
has not been set forth in the Loan Documents, or exhibits thereto.

Each of the foregoing representations and warranties automatically shall be
deemed brought down and remade anew by the Company each time, and as of the
date, it requests an advance from the Lender pursuant to Section 1 above.

        5. REPRESENTATIONS AND WARRANTIES OF THE LENDER.

                5.1. DUE EXECUTION. The Loan Documents have been duly executed
and delivered by the Lender, and, upon execution and delivery by the Company,
will be valid and legally enforceable in accordance with their terms, except as
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of
general application affecting enforcement of creditors' rights, and except as
limited by application of legal principles affecting the availability of
equitable remedies.

                5.2. AUTHORITY. The Lender has all right, power and authority to
enter into the Loan Documents and to consummate the transactions contemplated
thereby, and the Loan Documents, once executed by the Company and the Lender,
will constitute the legally binding valid obligations of the Lender enforceable
in accordance with their terms, such enforceability being subject only to laws
of general application relating to bankruptcy, insolvency and the relief of the
Company and rules of law governing specific performance, injunctive relief or
other equitable remedies.

                5.3. BROKERS OR FINDERS. The Company has not incurred and will
not incur, directly or indirectly, as a result of any action taken by the
Lender, any liability for brokerage or

<PAGE>   8

finders' fees or agents' commissions or any similar charges in connection with
this Agreement or the transactions contemplated hereby.

                5.4. COMPLIANCE WITH SECURITIES LAWS. The Lender hereby
represents, warrants and covenants that (1) the Note, Warrant and Warrant Shares
shall be acquired for investment only and not with a view to, or for sale in
connection with, any distribution (within the meaning of the Securities Act of
1933, as amended (the "Securities Act"), and rules, regulations and
interpretations thereunder and thereof) thereof; (2) the Lender has had such
opportunity as the Lender has deemed adequate to obtain from representatives of
the Company such information as is necessary to permit the Lender to evaluate
the merits and risks of its loan to the Company and any investment in the
Company; (3) the Lender is able to bear the economic risk of holding the Note,
Warrant and Warrant Shares for an indefinite period; and (4) the Lender
understands that (i) the Note and Warrant will not be registered under the
Securities Act, (ii) the Warrant Shares will not be registered under the
Securities Act unless and until the Lender's rights under the Warrant are
exercised in accordance with the terms thereof, and until such registration is
effected, (iii) the Note, Warrant and Warrant Shares will be "restricted
securities" within the meaning of Rule 144 under the 1933 Act and (iv) the
exemption from registration under Rule 144 will not be available for at least
one year from the date of purchase of the Note and Warrant or exercise of the
Warrant, as the case may be, and even then will not be available unless a public
market then exists for the stock, adequate information concerning the Company is
then available to the public, and other terms and conditions of Rule 144 are
complied with. The Company acknowledges that a transfer of the Note or a
fractional portion of the Note to one or more of the partners who comprise the
Lender as a distribution without consideration (whether upon liquidation of
Lender or a withdrawal of capital by such a partner in accordance with Lender's
agreement of limited partnership) will not require any registration of the Note
or any consent of the Company.

                5.5. LEGENDS. The Lender understands that the Warrant Shares
will bear restrictive legends as deemed necessary by the Company or its counsel
with regard to the matters set forth in this Agreement or otherwise as necessary
or appropriate.

        6. NO ADDITIONAL DEBT. So long as there is any Debt outstanding or the
line of credit remains in effect, except for any Debt owing to the Lender or
debt issued contemporaneously with payment of the Debt in full and termination
of the line of credit, the Company shall not incur or issue or permit to exist
any indebtedness for borrowed money (whether or not evidenced by any note,
indenture, mortgage or other instrument), including without limitation any
deferred portion of the purchase price for property or services (other than
trade payables incurred in the ordinary course of business that are not past
due) without the written consent of Lender (which consent shall not be
unreasonably withheld, conditioned or delayed); provided, however, that the
Company may, without the consent or approval of the Lender, incur junior debt in
the aggregate principal amount of up to Five Hundred Thousand Dollars ($500,000)
in connection with the purchase or lease of property (whether or not in the
ordinary course of business).

<PAGE>   9

        7. MISCELLANEOUS.

                7.1. WAIVERS AND AMENDMENTS.

                        (a) DELAYS. No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by law.

                        (b) AMENDMENTS. This Agreement may not be amended,
modified or supplemented other than by a written instrument signed by all
parties, which are, at the time of such amendment or modification, subject to
this Agreement.

                        (c) WAIVERS. Any provision of this Agreement may be
waived if, but only if, such waiver is in writing and is signed by the party
against whom the enforcement of such waiver is sought.

                7.2. GOVERNING LAW; ATTORNEYS' FEES. This Agreement shall be
governed in all respects by the laws of the State of California as such laws are
applied to agreements between California residents entered into and to be
performed entirely within California. he Company shall reimburse Lender for all
costs and expenses, including attorneys' fees, reasonably incurred by Lender in
connection with the administration or enforcement of any Loan Document (but
subject to the $25,000 limitation specified in Section 2.3 above respecting the
drafting and negotiation of the Loan Documents) if Lender is the prevailing
party, whether or not suit if filed. In addition, in the event any action or
proceeding is commenced concerning the interpretation or enforcement of any Loan
Document, the prevailing party in such action or proceeding shall be entitled to
recover reasonable attorneys' fees and costs of suit from the non-prevailing
party.

                7.3. SURVIVAL. The representations, warranties, covenants, and
agreements made herein shall survive the closing of the transactions
contemplated hereby.

                7.4. SUCCESSORS AND ASSIGNS. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the respective directors, officers, parents, subsidiaries,
affiliates, representatives, agents, successors, and assigns of each of the
parties.

                7.5. ENTIRE AGREEMENT. This Agreement and the other documents
delivered. pursuant hereto constitute the full and entire understanding and
agreement between the parties hereto with regard to the subjects hereof and
thereof.

                7.6. NOTICES. All notices and other communications required or
permitted hereunder shall be in writing and shall be transmitted by personal
delivery, telefacsimile, or overnight courier addressed to the applicable party
at its address or fax number set forth below its signature on the signature page
hereof, or at such other address or fax number furnished to the

<PAGE>   10

other party in writing in accordance with this Section 7.6. Any such notice
shall be effective on receipt during business hours on a business day.

                7.7. SEPARABILITY. In case any provision of this Agreement shall
be invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any manner be affected
or impaired thereby.

                7.8. OTHER DOCUMENTS. The parties to this Agreement shall in
good faith execute such other and further instruments, assignments or documents
as may be necessary or appropriate to carry out the transactions contemplated by
this Agreement.

                7.9. INDEMNITY. The Company agrees to indemnify and save
harmless Lender, the Lender's officers, directors, partners, employees and
agents, and each person who controls such other party within the meaning of the
Securities Act or the Exchange Act, from and against any and all costs,
expenses, damages, claims, actions or other liabilities, including costs of
investigation and defense (collectively, "Damages") suffered or incurred by any
such indemnified party as a result of any breach by the Company of any of its
agreements, representations, warranties or covenants contained in this
Agreement, other than Damages resulting, directly or indirectly from the gross
negligence or willful misconduct of the indemnified party; provided, however,
that if and to the extent that such indemnification is unenforceable for any
reason, the Company shall make the maximum contribution to the payment and
satisfaction of such indemnified liability which shall be permissible under
applicable laws.

                7.10. TITLES; INTERPRETATION. The titles of the Sections and
subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement. References herein to exhibits to
this Agreement shall be deemed to incorporate all exhibits by reference. Where
the context requires, the singular shall include the plural and the plural the
singular.

<PAGE>   11

                7.11. COUNTERPARTS. This Agreement may be executed in any number
of counterparts which may be delivered by facsimile and each of which shall be
an original, but all of which together shall constitute one instrument, and
which shall become effective when there exist copies signed by the Company and
the Lender.

        IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed by their duly authorized representatives effective as of the date set
forth on the first page hereof

COMPANY:                                    OMNIS TECHNOLOGY CORPORATION,
                                            A DELAWARE CORPORATION

                                            BY:  /s/ JAMES DORST
                                               ---------------------------------

                                            NAME:  JAMES DORST
                                                 -------------------------------

                                            TITLE: CFO/COO
                                                  ------------------------------

                                            981 INDUSTRIAL WAY
                                            SAN CARLOS, CALIFORNIA 94070-4117
                                            FAX NUMBER: 650-632-7130

LENDER:                                     ASTORIA CAPITAL PARTNERS, L.P.,
                                            A CALIFORNIA LIMITED PARTNERSHIP

                                            BY: ASTORIA CAPITAL MANAGEMENT, INC.
                                                ITS GENERAL PARTNER

                                               BY: /s/ RICK KOE
                                                  ------------------------------
                                                  RICK KOE, PRESIDENT

                                                  6600 92ND AVENUE S.W.
                                                  SUITE 370
                                                  PORTLAND OREGON 97223
                                                  FAX NUMBER:  (503) 244-3801<PAGE>   1

                                                                   Exhibit 4.3.1

                  SEVENTH SUPPLEMENTAL INDENTURE, dated as of February 11, 2000,
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 Firstar Bank,
National Association, 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"), between the
Company, the Guarantors and Firstar Bank, National Association, as Trustee, as
supplemented by the First Supplemental Indenture dated June 25, 1999, the Second
Supplemental Indenture dated June 25, 1999, the Third Supplemental Indenture
dated June 25, 1999, the Fourth Supplemental Indenture dated September 22, 1999,
the Fifth Supplemental Indenture dated September 22, 1999 and the Sixth
Supplemental Indenture dated September 22, 1999, 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

<PAGE>   2

authorized the execution and delivery of this Seventh Supplemental Indenture.

                  The Company and the Guarantors, pursuant to the foregoing
authority, propose in and by this Seventh 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.

                  All things necessary to make this Seventh 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 SEVENTH 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 Seventh 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 Seventh Supplemental Indenture
                  and, where so specified, to the Articles and Sections of the
                  Indenture as supplemented by this Seventh Supplemental
                  Indenture; and

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

                  (b) For all purposes of the Indenture and this Seventh
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

                                      -2-
<PAGE>   3

                  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 Seventh Supplemental Indenture) of the
                  obligations of the Company or any 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

                                      -3-
<PAGE>   4

                  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 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 Seventh 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

                                      -4-
<PAGE>   5

                  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, 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) Goldman, Sachs
                  & Co. 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.

                                      -5-
<PAGE>   6

                           "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.

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 Depository. 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.

                                      -6-
<PAGE>   7

                                 THE KROGER CO.

                           8.05% Senior Notes due 2010

No. .........                                                        $ ........

                  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 .....................................
Dollars on February 1, 2010 and to pay interest thereon from February 11, 2000,
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, 2000 at the rate of interest of 8.05% per annum until the
principal hereof is paid or made available for payment. 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 July 15 or
January 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 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 form 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.

                                      -7-
<PAGE>   8

                  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:
                                             THE KROGER CO.

                                             By.................................

Attest:

 ................................

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

                                             FIRSTAR BANK, National Association,
                                             as Trustee

                                             By_________________________________
                                                      Authorized Officer

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 dated as of September 22, 1999,
the Sixth Supplemental Indenture dated as of September 22, 1999, and the Seventh
Supplemental Indenture dated as of February 11, 2000 (as so supplemented, herein
called the "Indenture"), each between the Company and the Guarantors named
therein, and Firstar Bank, National Association, 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

                                      -8-
<PAGE>   9

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, limited in aggregate principal
amount to $500,000,000.

                  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 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 10 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

                                      -9-
<PAGE>   10

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 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.

                                      -10-
<PAGE>   11

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 this Security the payment of principal of,
premium, if any, and interest on this Security upon which this Guarantee is
endorsed 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 this Security, if lawful, and the payment or performance of
all other obligations of the Company under the Indenture or the Securities, to
the holder of this Security and the Trustee, all in accordance with and subject
to the terms and limitations of this Security and Article Five of the Seventh
Supplemental Indenture to the Indenture. This Guarantee will not become
effective until the Trustee duly executes the certificate of authentication on
this Security. 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:

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

                                        By:
-----------------------------               Name:
Assistant Secretary/Secretary               Title:

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

                                        By:
                                            ------------------------------------
                                            Name:   Bruce M. Gack
-----------------------------               Title:  Vice President
Assistant Treasurer

                                      -11-
<PAGE>   12

                                        RICHIE'S INC., as Guarantor of the
                                        Securities

                                        By:
                                            ------------------------------------
                                            Name:   Keith C. Larson
                                            Title:  Vice President and Secretary

                                        ROCKET NEWCO, INC.
                                        as Guarantor of the Securities
                                        HENPIL, INC.,
                                        as Guarantor of the Securities
                                        WYDIV, INC.,
                                        as Guarantor of the Securities

                                        By:
                                            ------------------------------------
                                            Name:   Steven McMillan
                                            Title:  Vice President and Secretary

                                      -12-
<PAGE>   13

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

                                        FIRSTAR BANK, NATIONAL ASSOCIATION
                                        as Trustee

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

                                      -13-
<PAGE>   14

                                   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
City Market, Inc.                                    Colorado
Compare, Inc.                                        Delaware
Crawford Stores, Inc.                                California
Dillon Companies, Inc.                               Kansas
Dillon Real Estate Co., Inc.                         Kansas
Distribution Trucking Company                        Oregon
Drugs Distributors, Inc.                             Indiana
FM Holding Corporation                               Delaware
FM Retail Services, Inc.                             Washington
FM, Inc.                                             Utah
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.                            Delaware
Fred Meyer of Alaska, Inc.                           Alaska
Fred Meyer of California, Inc.                       California
Fred Meyer Stores, Inc.                              Delaware
Grand Central, Inc.                                  Utah
Hughes Markets, Inc.                                 California
Hughes Realty, Inc.                                  California
Inter-American Foods, Inc.                           Ohio
Jackson Ice Cream Co., Inc.                          Kansas
JH Properties, Inc.                                  Washington
Junior Food Stores of West Florida, Inc.             Florida
J.V. Distributing, Inc.                              Michigan
KRGP Inc.                                            Ohio
KRLP Inc.                                            Ohio
Kroger Dedicated Logistics Co.                       Ohio
Kroger Limited Partnership I                         Ohio (limited partnership)
Kroger Limited Partnership II                        Ohio (limited partnership)
Kroger Texas L.P.                                    Ohio (limited partnership)
KU Acquisition Corporation                           Washington

                                      -14-
<PAGE>   15

Name of Guarantor                                    State of Organization
-----------------                                    ---------------------
Kwik Shop, Inc.                                      Kansas
Merksamer Jewelers, Inc.                             California
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
Ralphs Grocery Company                               Delaware
Roundup Co.                                          Washington
Saint Lawrence Holding Company                       Delaware
Second Story, Inc.                                   Washington
Smith's Beverage of Wyoming, Inc.                    Wyoming
Smith's Food & Drug Centers, Inc.                    Delaware
Smitty's Equipment Leasing, Inc.                     Delaware
Smitty's Super Valu, Inc.                            Delaware
Smitty's Supermarkets, Inc.                          Delaware
The Kroger Co. of Michigan                           Michigan
THGP Co., Inc.                                       Pennsylvania
THLP Co., Inc.                                       Pennsylvania
Topvalco, Inc.                                       Ohio
Treasure Valley Land Company, L.C.                   Idaho
Turkey Hill, L.P.                                    Pennsylvania (limited
                                                     partnership)
Wells Aircraft, Inc.                                 Kansas
Western Property Investment Group, Inc.              California

                                      -15-
<PAGE>   16

                                  ARTICLE THREE

                            THE SERIES OF SECURITIES

Section 301. Title and Terms.

                  There shall be a series of Securities designated as the "8.05%
Senior Notes due 2010" of the Company. Their Stated Maturity shall be February
1, 2010, and they shall bear interest at the rate of 8.05% per annum.

                  Interest on the Securities of this series will be payable
semi-annually on August 1 and February 1 of each year, commencing August 1,
2000, until the principal thereof is made available for payment. 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 July 15 or January 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 Seventh Supplemental
Indenture is 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.

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

                  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

                                      -16-
<PAGE>   17

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 Seventh 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 Seventh Supplemental Indenture.

                                  ARTICLE FOUR

                  MODIFICATIONS AND ADDITIONS TO THE INDENTURE

Section 401. Modifications to the Consolidation, Merger, Conveyance, Transfer or
             Lease 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 Seventh Supplemental Indenture, including the due and
punctual payment of the principal of and interest on all the Securities of the
series created by the Seventh 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 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

                                      -17-
<PAGE>   18

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>   19

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

                  "Section 1009. Limitations on Liens.

                           After the date hereof and so long as any Securities
of the series created by the Seventh 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 Seventh 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 or at

                                      -19-
<PAGE>   20

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;

                                      -20-
<PAGE>   21

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

                                      -21-
<PAGE>   22

ratably securing the Securities of the series created by the Seventh
Supplemental Indenture pursuant to Section 1009; or

                           (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 Seventh 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 Seventh 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

                                      -22-
<PAGE>   23

         Seventh 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 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)

                                      -23-
<PAGE>   24

                  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, 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).

                                      -24-
<PAGE>   25

                           (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 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 Seventh 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.

                                      -25-
<PAGE>   26

                  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.

                  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 10
                  basis points plus, in each case, accrued interest thereon to
                  the date of redemption."

                                      -26-
<PAGE>   27

                                  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 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

                                      -27-
<PAGE>   28

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 Seventh 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 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.

                                      -28-
<PAGE>   29

Section 506. Continued Effectiveness.

                  Subject to Section 510 of this Seventh 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 Seventh 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 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

                                      -29-
<PAGE>   30

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 Seventh 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 Seventh 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 Seventh 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 Seventh Supplemental Indenture and its
Guarantee.

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

                                      -30-
<PAGE>   31

supplemental indenture pursuant to which it will become a Guarantor under this
Seventh 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
Seventh 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 Seventh 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 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;

                                      -31-
<PAGE>   32

                  (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
Seventh 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.

                   (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 Seventh Supplemental Indenture on behalf of each Guarantor.

                                      -32-
<PAGE>   33

                                   ARTICLE SIX

                                  MISCELLANEOUS

Section 601. Miscellaneous.

                  (a) The Trustee accepts the trusts created by the Indenture,
as supplemented by this Seventh Supplemental Indenture, and agrees to perform
the same upon the terms and conditions of the Indenture, as supplemented by this
Seventh 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
Seventh 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 Seventh Supplemental Indenture all of its
respective representations, covenants and agreements set forth in the Indenture.

                  (e) All covenants and agreements in this Seventh 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 Seventh 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 Seventh 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 Seventh
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 Seventh
Supplemental Indenture as so modified or excluded, as the case may be.

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

                                      -33-
<PAGE>   34

                  (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 Seventh Supplemental Indenture
shall be deemed to be incorporated in, and made a part of, the Indenture; and
the Indenture, as supplemented by this Seventh 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.

                                      -34-
<PAGE>   35

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all 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

                                         By:
-----------------------------               ------------------------------------
Assistant Secretary/Secretary               Name:   Lawrence M. Turner
                                            Title:  Vice President and Treasurer

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

                                         By:
                                            ------------------------------------
                                            Name:   Bruce M. Gack
-----------------------------               Title:  Vice President
Assistant Treasurer
                                         RICHIE'S INC., as Guarantor of the
                                         Securities

                                         By:
                                            ------------------------------------
                                            Name:   Keith C. Larson
                                            Title:  Vice President and Secretary

                                         ROCKET NEWCO, INC.
                                         as Guarantor of the Securities
                                         HENPIL, INC.,
                                         as Guarantor of the Securities
                                         WYDIV, INC.,
                                         as Guarantor of the Securities

                                         By:
                                            ------------------------------------
                                            Name:   Steven McMillan
                                            Title:  Vice President and Secretary

                                      -35-
<PAGE>   36

Attest:                                  FIRSTAR BANK, NATIONAL ASSOCIATION,
                                         as Trustee

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

                                      -36-
<PAGE>   37

                                   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
City Market, Inc.                                     Colorado
Compare, Inc.                                         Delaware
Crawford Stores, Inc.                                 California
Dillon Companies, Inc.                                Kansas
Dillon Real Estate Co., Inc.                          Kansas
Distribution Trucking Company                         Oregon
Drugs Distributors, Inc.                              Indiana
FM Holding Corporation                                Delaware
FM Retail Services, Inc.                              Washington
FM, Inc.                                              Utah
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.                             Delaware
Fred Meyer of Alaska, Inc.                            Alaska
Fred Meyer of California, Inc.                        California
Fred Meyer Stores, Inc.                               Delaware
Grand Central, Inc.                                   Utah
Hughes Markets, Inc.                                  California
Hughes Realty, Inc.                                   California
Inter-American Foods, Inc.                            Ohio
Jackson Ice Cream Co., Inc.                           Kansas
JH Properties, Inc.                                   Washington
Junior Food Stores of West Florida, Inc.              Florida
J.V. Distributing, Inc.                               Michigan
KRGP Inc.                                             Ohio
KRLP Inc.                                             Ohio
Kroger Dedicated Logistics Co.                        Ohio
Kroger Limited Partnership I                          Ohio (limited partnership)
Kroger Limited Partnership II                         Ohio (limited partnership)
Kroger Texas L.P.                                     Ohio
KU Acquisition Corporation                            Washington

                                      -37-
<PAGE>   38

Name of Guarantor                                     State of Organization
-----------------                                     ---------------------
Kwik Shop, Inc.                                       Kansas
Merksamer Jewelers, Inc.                              California
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
Ralphs Grocery Company                                Delaware
Roundup Co.                                           Washington
Saint Lawrence Holding Company                        Delaware
Second Story, Inc.                                    Washington
Smith's Beverage of Wyoming, Inc.                     Wyoming
Smith's Food & Drug Centers, Inc.                     Delaware
Smitty's Equipment Leasing, Inc.                      Delaware
Smitty's Super Valu, Inc.                             Delaware
Smitty's Supermarkets, Inc.                           Delaware
The Kroger Co. of Michigan                            Michigan
THGP Co., Inc.                                        Pennsylvania
THLP Co., Inc.                                        Pennsylvania
Topvalco, Inc.                                        Ohio
Treasure Valley Land Company, L.C.                    Idaho
Turkey Hill, L.P.                                     Pennsylvania (limited
                                                      partnership)
Wells Aircraft, Inc.                                  Kansas
Western Property Investment Group, Inc.               California

                                      -38-
<PAGE>   39

STATE OF _________  )
                    )  ss.:
COUNTY OF ________  )

                  On the     day of February, 2000, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is __________________ of The Kroger Co., and ____________________ 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.

                       _________________________________

STATE OF _________  )
                    )  ss.:
COUNTY OF ________  )

                  On the     day of February, 2000, before me personally came
______________, to me known, who, being by me duly sworn, did depose and say
that he is ________________ of Rocket Newco, Inc., Henpil, Inc. and Wydiv, 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.

                       _________________________________

                                      -39-
<PAGE>   40

STATE OF _________  )
                    )  ss.:
COUNTY OF ________  )

                  On the     day of February, 2000, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is _________________ of 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.

                       _________________________________

STATE OF _________  )
                    )  ss.:
COUNTY OF ________  )

                  On the     day of February, 2000, before me personally came
______________, to me known, who, being by me duly sworn, did depose and say
that he is ____________ 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.

                       _________________________________

                                      -40-
<PAGE>   41

STATE OF _________  )
                    )  ss.:
COUNTY OF ________  )

                  On the     day of February, 2000, before me personally came
_________________, to me known, who, being by me duly sworn, did depose and say
that he is a _____________ of Firstar Bank, National Association, 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.

                       _________________________________

                                      -41-

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