-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 QmKHO7xV9pldsySWqQV0YqHjHBvB7v8P9QjP21kQ7J2EFVg6T+SU9l8PRZ+QDXX3
 JB9PB1oHIJVoQkDJ+cSl7w==

<SEC-DOCUMENT>0000950152-08-009415.txt : 20081118
<SEC-HEADER>0000950152-08-009415.hdr.sgml : 20081118
<ACCEPTANCE-DATETIME>20081118121711
ACCESSION NUMBER:		0000950152-08-009415
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20081118
DATE AS OF CHANGE:		20081118

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALA CO
		CENTRAL INDEX KEY:			0000880803
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				954200005
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-47
		FILM NUMBER:		081197543

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA H\SRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HENPIL INC
		CENTRAL INDEX KEY:			0001092443
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-30
		FILM NUMBER:		081197508

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER DEDICATED LOGISTICS CO
		CENTRAL INDEX KEY:			0001092444
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-22
		FILM NUMBER:		081197507

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VINE COURT ASSURANCE INC
		CENTRAL INDEX KEY:			0001092445
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-01
		FILM NUMBER:		081197506

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER CO
		CENTRAL INDEX KEY:			0000056873
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				310345740
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			0203

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216
		FILM NUMBER:		081197499

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45201
		BUSINESS PHONE:		5137624000

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER GROUP COOPERATIVE INC
		CENTRAL INDEX KEY:			0001161913
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-21
		FILM NUMBER:		081197501

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624437

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CRAWFORD STORES INC
		CENTRAL INDEX KEY:			0000025500
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-45
		FILM NUMBER:		081197550

	BUSINESS ADDRESS:	
		STREET 1:		1100 WEST ARTESIA BLVD
		CITY:			COMPTON
		STATE:			CA
		ZIP:			90220
		BUSINESS PHONE:		3108849000

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HUGHES MARKETS INC
		CENTRAL INDEX KEY:			0001040033
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				911947206
		STATE OF INCORPORATION:			CA

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-29
		FILM NUMBER:		081197536

	BUSINESS ADDRESS:	
		STREET 1:		14005 LIVE OAK AVENUE
		CITY:			IRWINDALE
		STATE:			CA
		ZIP:			91706
		BUSINESS PHONE:		8188566580

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FOOD 4 LESS OF CALIFORNIA INC
		CENTRAL INDEX KEY:			0000880823
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				330293011
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-35
		FILM NUMBER:		081197541

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7146268776

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LAHABRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FOOD 4 LESS GM INC
		CENTRAL INDEX KEY:			0000886141
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				954390407
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-38
		FILM NUMBER:		081197539

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7146268776

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			F4L LP
		CENTRAL INDEX KEY:			0001161912
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-41
		FILM NUMBER:		081197502

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624437

	MAIL ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FMJ INC
		CENTRAL INDEX KEY:			0001175476
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-39
		FILM NUMBER:		081197500

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624437

	MAIL ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALPHA BETA COMPANY
		CENTRAL INDEX KEY:			0000880800
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				951456805
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-50
		FILM NUMBER:		081197545

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HARSRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7146268776

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA HARSRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BELL MARKETS INC
		CENTRAL INDEX KEY:			0000880801
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				941569281
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-48
		FILM NUMBER:		081197544

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HARSRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7146268776

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA HARSRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FOOD 4 LESS MERCHANDISING INC
		CENTRAL INDEX KEY:			0000880824
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				330483193
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-36
		FILM NUMBER:		081197542

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7146268776

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FOOD 4 LESS OF SOUTHERN CALIFORNIA INC
		CENTRAL INDEX KEY:			0000880825
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				330483203
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-34
		FILM NUMBER:		081197540

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7146268776

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BAY AREA WAREHOUSE STORES INC
		CENTRAL INDEX KEY:			0000932721
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				931087199
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-49
		FILM NUMBER:		081197538

	BUSINESS ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		CITY:			LA HARSERA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7147382000

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA HARSRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRED MEYER INC
		CENTRAL INDEX KEY:			0001043273
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DEPARTMENT STORES [5311]
		IRS NUMBER:				911826443
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0201

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-31
		FILM NUMBER:		081197535

	BUSINESS ADDRESS:	
		STREET 1:		3800 SE 22ND AVE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202
		BUSINESS PHONE:		5032328844

	MAIL ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEYER SMITH HOLDCO INC
		DATE OF NAME CHANGE:	19970730

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SECOND STORY INC
		CENTRAL INDEX KEY:			0001054052
		IRS NUMBER:				911753356
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-09
		FILM NUMBER:		081197534

	BUSINESS ADDRESS:	
		STREET 1:		10112 N.E. 10TH ST
		CITY:			BELLEVUE
		STATE:			WA
		ZIP:			98004
		BUSINESS PHONE:		4254622179

	MAIL ADDRESS:	
		STREET 1:		10112 N.E. 10TH ST
		CITY:			BELLEVUE
		STATE:			WA
		ZIP:			98004

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HUGHES REALTY INC
		CENTRAL INDEX KEY:			0001054054
		IRS NUMBER:				952253719
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-28
		FILM NUMBER:		081197533

	BUSINESS ADDRESS:	
		STREET 1:		14005 LIVE OAK AVE
		CITY:			IROINDALE
		STATE:			CA
		ZIP:			91706
		BUSINESS PHONE:		4254622179

	MAIL ADDRESS:	
		STREET 1:		14005 LIVE OAK AVE
		CITY:			IROINDALE
		STATE:			CA
		ZIP:			91706

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SMITHS BEVERAGE OF WYOMING INC
		CENTRAL INDEX KEY:			0001054186
		IRS NUMBER:				800126833
		STATE OF INCORPORATION:			WY
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-08
		FILM NUMBER:		081197532

	BUSINESS ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202
		BUSINESS PHONE:		5032328844

	MAIL ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CB&S ADVERTISING AGENCY INC
		CENTRAL INDEX KEY:			0001054202
		IRS NUMBER:				930587794
		STATE OF INCORPORATION:			OR
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-51
		FILM NUMBER:		081197531

	BUSINESS ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202
		BUSINESS PHONE:		5032328844

	MAIL ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DISTRIBUTION TRUCKING CO
		CENTRAL INDEX KEY:			0001054203
		IRS NUMBER:				930786441
		STATE OF INCORPORATION:			OR
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-42
		FILM NUMBER:		081197530

	BUSINESS ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202
		BUSINESS PHONE:		5032328844

	MAIL ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FM INC
		CENTRAL INDEX KEY:			0001054204
		IRS NUMBER:				931197669
		STATE OF INCORPORATION:			UT
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-40
		FILM NUMBER:		081197529

	BUSINESS ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202
		BUSINESS PHONE:		5032328844

	MAIL ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MEYER FRED JEWELERS INC
		CENTRAL INDEX KEY:			0001054212
		IRS NUMBER:				680202947
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-33
		FILM NUMBER:		081197528

	BUSINESS ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202
		BUSINESS PHONE:		5037973977

	MAIL ADDRESS:	
		STREET 1:		3800 SE 22ND AVENUE
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MERKSAMER JEWELERS INC
		DATE OF NAME CHANGE:	19980130

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JUNIOR FOOD STORES OF WEST FLORIDA INC
		CENTRAL INDEX KEY:			0001092213
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-25
		FILM NUMBER:		081197524

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			J V DISTRIBUTING INC
		CENTRAL INDEX KEY:			0001092215
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-26
		FILM NUMBER:		081197523

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KRGP INC
		CENTRAL INDEX KEY:			0001092216
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-24
		FILM NUMBER:		081197522

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KRLP INC
		CENTRAL INDEX KEY:			0001092217
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-23
		FILM NUMBER:		081197521

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER CO OF MICHIGAN
		CENTRAL INDEX KEY:			0001092218
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-06
		FILM NUMBER:		081197520

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER TEXAS LP
		CENTRAL INDEX KEY:			0001104832
		IRS NUMBER:				311678530
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-18
		FILM NUMBER:		081197505

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624000

	MAIL ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RJD ASSURANCE INC
		CENTRAL INDEX KEY:			0001104833
		IRS NUMBER:				311678530
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-11
		FILM NUMBER:		081197504

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624000

	MAIL ADDRESS:	
		STREET 1:		148 COLLEGE STREET
		CITY:			BURLINGTON
		STATE:			VT
		ZIP:			05401

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			QUEEN CITY ASSURANCE INC
		CENTRAL INDEX KEY:			0001160005
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			VT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-14
		FILM NUMBER:		081197503

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624437

	MAIL ADDRESS:	
		STREET 1:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DILLON CO INC
		CENTRAL INDEX KEY:			0001092207
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-44
		FILM NUMBER:		081197527

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DILLON REAL ESTATE CO INC
		CENTRAL INDEX KEY:			0001092208
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-43
		FILM NUMBER:		081197526

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTER AMERICAN FOODS INC
		CENTRAL INDEX KEY:			0001092211
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-27
		FILM NUMBER:		081197525

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER LIMITED PARTNERSHIP 1
		CENTRAL INDEX KEY:			0001092219
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-20
		FILM NUMBER:		081197519

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER LIMITED PARTNERSHIP II
		CENTRAL INDEX KEY:			0001092220
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-19
		FILM NUMBER:		081197518

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KWIK SHOP INC
		CENTRAL INDEX KEY:			0001092221
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-17
		FILM NUMBER:		081197517

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MINI MART INC
		CENTRAL INDEX KEY:			0001092223
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-16
		FILM NUMBER:		081197516

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEYTONS SOUTHEASTERN INC
		CENTRAL INDEX KEY:			0001092224
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-15
		FILM NUMBER:		081197515

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			QUIK STOP MARKETS INC
		CENTRAL INDEX KEY:			0001092225
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-13
		FILM NUMBER:		081197514

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ROCKET NEWCO INC
		CENTRAL INDEX KEY:			0001092226
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-10
		FILM NUMBER:		081197513

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			THGP CO INC
		CENTRAL INDEX KEY:			0001092228
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-05
		FILM NUMBER:		081197512

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			THLP CO INC
		CENTRAL INDEX KEY:			0001092229
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-04
		FILM NUMBER:		081197511

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TOPVALCO INC
		CENTRAL INDEX KEY:			0001092230
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-03
		FILM NUMBER:		081197510

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TURKEY HILL LP
		CENTRAL INDEX KEY:			0001092231
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-02
		FILM NUMBER:		081197509

	BUSINESS ADDRESS:	
		STREET 1:		C/O BRUCE GACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		2029425658

	MAIL ADDRESS:	
		STREET 1:		C/O BRUCE CACK
		STREET 2:		1014 VINE STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MEYER FRED STORES INC
		CENTRAL INDEX KEY:			0000701169
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DEPARTMENT STORES [5311]
		IRS NUMBER:				930798201
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1230

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-32
		FILM NUMBER:		081197549

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE ST
		STREET 2:		C/O KROGER CO
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624437

	MAIL ADDRESS:	
		STREET 1:		C/O THE KROGER CO
		STREET 2:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEYER FRED INC
		DATE OF NAME CHANGE:	19920703

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RALPHS GROCERY CO /DE/
		CENTRAL INDEX KEY:			0000835676
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				954356030
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1230

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-12
		FILM NUMBER:		081197548

	BUSINESS ADDRESS:	
		STREET 1:		C/O THE KROGER CO
		STREET 2:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624437

	MAIL ADDRESS:	
		STREET 1:		C/O THE KROGER CO
		STREET 2:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FOOD 4 LESS SUPERMARKETS INC
		DATE OF NAME CHANGE:	19931027

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALA FOODS INC
		CENTRAL INDEX KEY:			0000838196
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				941342664
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-46
		FILM NUMBER:		081197547

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7146268776

	MAIL ADDRESS:	
		STREET 1:		777 SOUTH HARBOR BLVD
		STREET 2:		777 SOUTH HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SMITHS FOOD & DRUG CENTERS INC
		CENTRAL INDEX KEY:			0000850309
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				870258768
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1230

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-07
		FILM NUMBER:		081197546

	BUSINESS ADDRESS:	
		STREET 1:		C/O THE KROGER CO
		STREET 2:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5137624437

	MAIL ADDRESS:	
		STREET 1:		C/O THE KROGER CO
		STREET 2:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FOOD 4 LESS HOLDINGS INC /DE/
		CENTRAL INDEX KEY:			0000936523
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				330642810
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0202

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-148216-37
		FILM NUMBER:		081197537

	BUSINESS ADDRESS:	
		STREET 1:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631
		BUSINESS PHONE:		7147382000

	MAIL ADDRESS:	
		STREET 1:		FOOD 4 LESS HOLDINGS INC /DE/
		STREET 2:		777 S HARBOR BLVD
		CITY:			LA HABRA
		STATE:			CA
		ZIP:			90631
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>l34598ae424b5.htm
<DESCRIPTION>FORM 424B5
<TEXT>
<HTML>
<HEAD>
<TITLE>FORM 424B5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 8pt; font-family: Arial, Helvetica; color: #E8112D">This
prospectus supplement relates to an effective registration
statement under the Securities Act of 1933, but is not complete
and may be changed. This prospectus supplement and the
accompanying prospectus is not an offer to sell these securities
and it is not soliciting an offer to buy these securities in any
jurisdiction where the offer or sale is not permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Filed Pursuant To Rule&#160;424(b)(5)
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Registration
    <FONT style="white-space: nowrap">No.&#160;333-148216</FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #E8112D">Subject
    to Completion, dated November 18, 2008
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-size: 10pt; font-family: 'Times New Roman', Times">Prospectus
    Supplement to Prospectus dated December&#160;20, 2007.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">The Kroger Co.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 14pt">%&#160;Senior Notes due
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 22%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=407 length=90 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kroger will pay interest on the notes
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    of each year. The first interest payment will be made
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2009. The notes will be issued only in denominations of $2,000
    and integral multiples of $1,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kroger has the right to redeem all or any portion of the notes
    at any time at the redemption price described in this prospectus
    supplement, plus accrued interest. If a change of control
    triggering event as described herein occurs, unless Kroger has
    exercised its option to redeem the notes, Kroger will be
    required to offer to repurchase the notes at the price described
    in this prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are guaranteed by our subsidiaries listed on
    page&#160;S-28 of this prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>See &#147;Risk Factors&#148; beginning on page&#160;S-2 of
    the prospectus supplement to read about certain factors you
    should consider before buying notes.</I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 22%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=407 length=90 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any other
    regulatory body has approved or disapproved of these securities
    or passed upon the accuracy or adequacy of this prospectus
    supplement or the accompanying prospectus. Any representation to
    the contrary is a criminal offense.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Note</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Initial public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    %
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    %
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds, before expenses, to Kroger
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    %
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The initial public offering price set forth above does not
    include accrued interest, if any. Interest on the notes will
    accrue
    from&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008 and must be paid by the purchaser if the notes are
    delivered
    after&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters expect to deliver the notes in book-entry form
    only through the facilities of The Depository Trust Company for
    the accounts of its participants, including Clearstream Banking,
    <I>soci&#233;t&#233; anonyme,</I> and Euroclear Bank S.A./N.V.,
    as operator of the Euroclear System, against payment in New
    York, New York
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 22%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=407 length=90 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 10pt">Joint Book-Running
    Managers</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 15pt; font-family: 'Times New Roman', Times">Goldman,
    Sachs &#038; Co.</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 15pt; font-family: 'Times New Roman', Times">
    J.P. Morgan</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 22%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=407 length=90 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 10pt">Prospectus Supplement dated
    November&#160;&#160;, 2008.</FONT></B>
</DIV>

<P align="left" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Table of
    Contents</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Prospectus Supplement</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#150'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#151'>The Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#152'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#153'>Description of the Notes</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#154'>United States Federal Tax Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-17</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#155'>Underwriting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#156'>Validity of the Notes</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#157'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#158'>Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#159'>List of Subsidiary Guarantors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 19pt">
<TD colspan="5">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Prospectus</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>About This Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Forward Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Our Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Consolidated Ratio of Earnings to Fixed
    Charges</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Description of Debt Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Description of Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Description of Depositary Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Description of Warrants</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-1
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='150'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should carefully consider the following matters in
    deciding whether to purchase the notes.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    indebtedness could adversely affect us by reducing our
    flexibility to respond to changing business and economic
    conditions and increasing our borrowing costs.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of August&#160;16, 2008, our total outstanding indebtedness,
    including capital leases and the current portion thereof, and
    excluding the market value adjustment required by GAAP for
    interest rate hedges, was approximately $7.6&#160;billion. As of
    August&#160;16, 2008, we maintained a $2.5&#160;billion,
    five-year revolving credit facility that terminates in 2011.
    Outstanding borrowings under the credit facility and commercial
    paper borrowings, and some outstanding letters of credit, reduce
    funds available under the credit facility. In addition to the
    credit facility as of August&#160;16, 2008, we maintained four
    money market lines, totaling $125&#160;million in the aggregate
    (subsequently reduced to $75&#160;million). The money market
    lines allow us to borrow from banks at mutually agreed upon
    rates, usually at rates below the rates offered under the credit
    facility. As of August&#160;16, 2008, we had outstanding
    commercial paper and borrowings under our credit facility
    totaling $120&#160;million and $50&#160;million, respectively,
    that reduced amounts available under our credit facility. In
    addition, as of August&#160;16, 2008, we had borrowings under
    our money market lines totaling $112&#160;million. Subsequent to
    August&#160;16, 2008, one of our money market lines totaling
    $50&#160;million was cancelled. The outstanding letters of
    credit that reduced the funds available under our credit
    facility totaled $365&#160;million as of August&#160;16, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This indebtedness could reduce our ability to obtain additional
    financing for working capital, acquisitions or other purposes
    and could make us more vulnerable to economic downturns and
    competitive pressures. Our needs for cash in the future will
    depend on many factors that are difficult to predict. These
    factors include results of operations, the timing and cost of
    acquisitions and efforts to expand existing operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we will have sufficient funds from all sources
    to meet our needs over the next several years. We cannot assure
    you, however, that our business will generate cash flow at or
    above current levels. If we are unable to generate sufficient
    cash flow from operations in the future to pay our debt and make
    necessary investments, we will be required to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    refinance all or a portion of our existing debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    seek new borrowings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    forego strategic opportunities;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delay, scale back or eliminate some aspects of our operations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If necessary, any of these actions could have a material
    negative impact on our business, financial condition or results
    of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of our subsidiaries will guarantee the notes. As a result,
    the notes will effectively rank equal in right of payment with
    approximately $7.6&#160;billion of other indebtedness of these
    subsidiaries as of August&#160;16, 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    sources of liquidity are dependent upon our lenders honoring
    their commitments.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our $2.5&#160;billion committed five-year revolving credit
    facility, maturing November 2011, continues to remain available
    and we have drawn under this facility, as necessary, since the
    facility&#146;s inception. Letters of credit totaling
    $365&#160;million as of August&#160;16, 2008
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-2
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    reduce amounts available under the credit facility. On peak
    borrowing days, we expect that more than $1.2&#160;billion of
    this facility would remain available. In addition, we maintain
    uncommitted money market lines totaling $75&#160;million. Our
    liquidity could be affected if our committed lenders are unable
    or unwilling to honor their contractual obligations to us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    guarantees of the notes by our subsidiaries may be
    inadequate.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although most of our subsidiaries have guaranteed our obligation
    to pay the notes, the available assets of those subsidiaries may
    be insufficient for these purposes. Some of those subsidiaries
    are guarantors of our bank credit facility.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    and state statutes permit courts, under specific circumstances,
    to void guarantees and require the return of payments received
    from guarantors.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the U.S.&#160;Bankruptcy Code and comparable provisions of
    state fraudulent transfer laws, a court has the power to void a
    guarantee, or to subordinate claims in respect of a guarantee to
    all other debts of the guarantor, if, among other things, at the
    time the guarantor incurred the indebtedness evidenced by its
    guarantee, it received less than reasonably equivalent value or
    fair consideration for the incurrence of the guarantee, and
    either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    was insolvent or rendered insolvent by reason of that incurrence;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    was engaged in a business or transaction for which its remaining
    assets constituted unreasonably small capital;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    intended to incur, or believed that it would incur, debts beyond
    its ability to pay as those debts mature.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the court may void any payment by that guarantor
    pursuant to its guarantee and require the return of that payment
    to the guarantor or to a fund for the benefit of the creditors
    of the guarantor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The measures of insolvency for these purposes will vary
    depending upon the law applied in any proceeding to determine
    whether a fraudulent transfer has occurred. Generally, however,
    a guarantor would be considered insolvent if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sum of its debts, including contingent liabilities, were
    greater than the fair saleable value of all of its assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the present fair saleable value of its assets were less than the
    amount that would be required to pay its probable liability on
    its existing debts, including contingent liabilities, as they
    become absolute and mature;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    it could not pay its debts as they become due.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the basis of our historical financial results, recent
    operating history and other factors, we believe that each
    subsidiary that has guaranteed the notes, after giving effect to
    that guarantee, will not be insolvent, will not have
    unreasonably small capital for the business in which it is
    engaged and will not have incurred debts beyond its ability to
    pay as those debts mature. However, we cannot assure you of the
    particular standard that might be applied by a court in making
    its determinations or that a court would agree with our
    conclusions in this regard.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-3
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    operations may be negatively impacted by a variety of
    factors.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We obtain sales growth from new square footage, as well as from
    increased productivity from existing stores. Our ability to
    generate sales and earnings could be adversely affected by the
    increasingly competitive environment in which we operate. In
    addition, any labor dispute, delays in opening new stores,
    changes in the economic climate, or other unanticipated events,
    could adversely affect our operations.
</DIV>
<A name='151'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    COMPANY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kroger was founded in 1883 and was incorporated in 1902. We
    maintain our corporate offices in Cincinnati, Ohio, and as of
    August&#160;16, 2008, we were one of the largest grocery
    retailers in the United States based on annual sales.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of August&#160;16, 2008, directly or through subsidiaries we
    operated approximately 2,476 supermarkets and multidepartment
    stores, 779 convenience stores, 737 supermarket fuel centers,
    and 393 fine jewelry stores. Some of the convenience stores were
    franchised to third parties. We also operate directly or through
    subsidiaries 41 manufacturing facilities that permit us to offer
    quality, low-cost private label products.
</DIV>
<A name='152'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We estimate that the net proceeds from this offering will be
    approximately $&#160;&#160;million. We intend to use those
    proceeds to repay short-term borrowings and borrowings under our
    revolving credit facility and thereafter to use those borrowings
    to repurchase, repay or redeem our outstanding indebtedness. We
    also expect to use borrowing proceeds for other general
    corporate purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The interest rate for borrowings under the credit facility, as
    amended, is detailed in the Consolidated Financial Statements
    attached to our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended February&#160;2, 2008, and the Credit
    Agreement incorporated by reference to Exhibit&#160;99.1 of our
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on November&#160;20, 2006.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-4
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='153'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF THE NOTES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of the particular terms of the notes
    (referred to in the accompanying prospectus as the &#147;debt
    securities&#148;) supplements, and to the extent it is
    inconsistent with the description in the prospectus, it replaces
    the description of the general terms and provisions of the debt
    securities in the prospectus. We will issue the notes under an
    indenture dated June&#160;25, 1999, as it may be amended and
    supplemented from time to time, among Kroger and Firstar Bank,
    National Association, now known as U.S.&#160;Bank, N.A., as
    trustee, and the guarantors named in the supplemental indenture.
    We have summarized select portions of the indenture below. The
    summary is not complete and is qualified by reference to the
    indenture.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes initially will be limited to
    $&#160;&#160;&#160;&#160;&#160; aggregate principal amount,
    subject to our ability to issue additional notes that may be of
    the same series as these notes as described under &#147;Further
    Issues.&#148; The notes will mature
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,&#160;&#160;&#160;&#160;&#160;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes will bear interest
    from&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008 at the rate shown on the front cover of this prospectus
    supplement. Interest on the notes is payable semiannually
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    of each year commencing
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008, to the person in whose name such note is registered at the
    close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    as the case may be, immediately preceding such interest payment
    dates. Interest on the notes will be computed on the basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes rank equally in right of payment with all of our
    existing and future unsecured senior debt. The notes rank senior
    to any future subordinated indebtedness.
</DIV>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of our subsidiaries will guarantee the notes. As a result,
    the notes will effectively rank equal in right of payment with
    approximately $7.6&#160;billion of other indebtedness of these
    subsidiaries as of August&#160;16, 2008. If one of these
    subsidiaries becomes insolvent, however, the guarantee of that
    subsidiary could be held by a court to be unenforceable under
    applicable fraudulent transfer or similar laws.
</DIV>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are unsecured and not entitled to any sinking fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes will initially be issued only in registered,
    book-entry form, in denominations of $2,000 and integral
    multiples of $1,000 as described under &#147;Book-Entry
    Procedures.&#148; We will issue global securities in
    denominations equal to the total principal amount of outstanding
    notes of the series represented by the global securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any interest payment date or the maturity date of the notes
    does not fall on a business day, payment of interest or
    principal otherwise payable on that day will be made on the next
    succeeding business day with the same effect as if made on the
    actual interest payment date or the maturity date of the notes,
    as the case may be, and no interest will accrue for the period
    from and after such interest payment date or maturity date.
    &#147;Business day&#148; 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.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Guarantees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of our subsidiaries except those prohibited from so doing
    and those without any significant assets or operations will
    guarantee our obligations under the notes, subject to the
    limitations described below. In addition, if, in the future, any
    of our existing or future subsidiaries guarantees any of our
    indebtedness, that subsidiary will also be required to
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-5
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    guarantee our obligations under the notes, unless it is
    prohibited from doing so. If we default in payment of the
    principal, interest or any premium due under the notes, the
    guarantors will be obligated to pay these amounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The obligations of each guarantor under its guarantee are
    limited to the maximum amount enforceable under applicable
    fraudulent conveyance or fraudulent transfer laws. This maximum
    amount will be calculated after giving effect to all other
    liabilities of the guarantor and after giving effect to all
    contribution and other obligations among the guarantors under
    the indenture. Each guarantor that makes a payment or
    distribution under its guarantee will be entitled to a
    contribution from each other guarantor in a pro rata amount
    based on the net assets of each guarantor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A guarantee issued by a guarantor will automatically and
    unconditionally be released and discharged in the following
    situations if doing so will not result in any downgrade of the
    notes by Moody&#146;s Investors Service and Standard&#160;&#038;
    Poor&#146;s Ratings Services:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    upon any sale, exchange or transfer to any person of all of the
    capital stock, or all or substantially all of the assets, of the
    guarantor in a transaction that complies with the indenture,
    except that such a transaction will not release or discharge a
    guarantee if the guarantor continues to be a guarantor of our
    bank credit facility;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at our request at any time if we no longer have in force
    guarantees under our bank credit facility.
</TD>
</TR>

</TABLE>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise described above, as long as the notes are
    guaranteed we will add comparable release provisions to any
    existing debt that we modify after the date of this prospectus
    supplement to add guarantees, and to any future debt securities
    (excluding asset backed securities) issued by us and guaranteed
    by our subsidiaries. We have added guarantees to most of our
    existing debt.
</DIV>



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each guarantee will rank equal in right of payment with all
    other unsecured and unsubordinated indebtedness of the guarantor
    and will rank senior in right of payment to all subordinated
    indebtedness of the guarantor. As of August&#160;16, 2008, after
    giving pro forma effect to this offering, the application of the
    net proceeds of the offering and the guarantees to be given by
    some of our subsidiaries, Kroger and the guarantors would have
    had approximately $7.6&#160;billion of indebtedness outstanding,
    including capital leases and the current portion thereof, and
    excluding the market value adjustment required by GAAP for
    interest rate hedges, of which approximately $7.4&#160;billion
    would have been unsecured and unsubordinated indebtedness and
    $159&#160;million would have been secured and unsubordinated.
</DIV>


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Optional
    Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes will be redeemable, in whole or in part, at our option
    at any time. The redemption price for the notes will equal the
    greater of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    100% of the principal amount of the notes;&#160;and
</TD>
</TR>

</TABLE>


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sum of the present values of the remaining scheduled
    payments of principal and interest on the notes being redeemed,
    excluding accrued interest on the date of redemption, from the
    redemption date to the maturity date. The discount to the
    redemption date will be made on a semiannual basis based on a
    <FONT style="white-space: nowrap">360-day</FONT>
    year, with each month consisting of 30&#160;days. The discount
    rate will equal the equivalent yield to maturity of
    U.S.&#160;Treasury securities having a comparable maturity to
    the notes,
    plus&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    basis points. The determination of the rate will be made by an
    agent we appoint. Initially, that agent will be J.P.&#160;Morgan
    Securities Inc.
</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-6
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The redemption price for the notes will include, in each case,
    accrued interest on the notes being redeemed to the date of
    redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notice of any redemption will be mailed at least 30&#160;days
    but not more than 60&#160;days before the redemption date to
    each holder of the notes to be redeemed. Unless we default in
    payment of the redemption price, interest will cease to accrue
    on and after the redemption date on the notes or portions of the
    notes called for redemption.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Covenants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture provides that the following covenants will apply
    to us:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limitations on Liens.</I>&#160;&#160;We covenant that, so
    long as any notes remain outstanding, neither we nor any of our
    restricted subsidiaries will issue, assume or guarantee any
    secured debt or other agreement comparable to secured debt
    unless these notes and other debt ranking equally to these notes
    also is so secured on an equal basis. This restriction will not
    apply to the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    liens on any property or assets of any corporation existing at
    the same time such corporation becomes a restricted subsidiary
    provided that the lien does not extend to any of our other
    property or that of any other restricted subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    liens existing on assets acquired by us, to secure the purchase
    price of assets, or to obtain a release of liens from any of our
    other property, incurred no later than 18&#160;months after the
    acquisition, assumption, guarantee, or, in the case of real
    estate, completion of construction and commencement of
    operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    liens securing indebtedness owing by any restricted subsidiary
    to us or another restricted subsidiary;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    liens on any assets existing upon acquisition of a corporation
    through merger or by acquisition of all or substantially all of
    the assets by us or a restricted subsidiary;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (5)&#160;
</TD>
    <TD align="left">
    liens in favor of the U.S., a foreign country, or any political
    subdivision to secure payments of debt incurred to finance the
    purchase of assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (6)&#160;
</TD>
    <TD align="left">
    liens existing on our or any of our restricted
    subsidiaries&#146; properties or assets existing on the date of
    the supplemental indenture; provided that the liens secure only
    those obligations which they secure on the date of the
    supplemental indenture or any extension, renewal or replacement
    thereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (7)&#160;
</TD>
    <TD align="left">
    any extension, renewal or replacement (or successive extensions,
    renewals or replacements) in whole or in part, of any lien
    referred to in clauses&#160;(1) through (6);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (8)&#160;
</TD>
    <TD align="left">
    some statutory liens or other similar liens arising in the
    ordinary course of our or any of our restricted
    subsidiaries&#146; business, or some liens arising out of
    governmental contracts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (9)&#160;
</TD>
    <TD align="left">
    some pledges, deposits or liens made or arising under
    worker&#146;s compensation or similar legislation or in some
    other circumstances;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="6%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (10)&#160;
</TD>
    <TD align="left">
    some liens in connection with legal proceedings, including some
    liens arising out of judgments or awards;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (11)&#160;
</TD>
    <TD align="left">
    liens for some taxes or assessments, landlord&#146;s liens,
    mechanic&#146;s liens and liens and charges incidental to the
    conduct of the business, or the ownership of our or any of our
    restricted subsidiaries&#146; property or assets that were not
    incurred in
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-7
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="6%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    connection with the borrowing of money and that do not, in our
    opinion, materially impair the use of the property or assets in
    the operation of our business or that of a restricted subsidiary
    or the value of the property or assets for its purposes; or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="6%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (12)&#160;
</TD>
    <TD align="left">
    any other liens not included above, which together with amounts
    included in clause&#160;(1) of the next section do not exceed
    10% of our consolidated net tangible assets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limitation on Sale and Lease-Back
    Transactions.</I>&#160;&#160;We and our restricted subsidiaries
    will not sell and leaseback for a term greater than three years
    under a capital lease any material real property or operating
    assets unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    we could incur secured debt on that property equal to the
    present value of rentals under the lease without having to
    equally secure the note; or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    the sale proceeds equal or exceed the fair market value of the
    property and the net proceeds are used within 180&#160;days to
    acquire material real property or operating assets or to
    purchase or redeem notes offered hereby or long term debt,
    including capital leases, that are senior to or rank on parity
    with these notes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This restriction does not apply to sale and lease-back
    transactions of material property or operating assets acquired
    or constructed after 18&#160;months prior to the date of the
    indenture as long as a commitment for the sale and lease-back is
    made within 18&#160;months of acquisition, in the case of
    operating assets, and of completion of construction and
    commencement of operations, in the case of material real
    property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of these covenants, a &#147;subsidiary&#148; is an
    entity that we directly or indirectly control, including
    partnerships in which we or our subsidiaries own a greater than
    50% interest. Restricted subsidiaries are all of our
    subsidiaries other than those our board of directors has
    determined are not material.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The covenants applicable to the notes would not necessarily
    afford holders protection in the event of a highly leveraged or
    other transaction involving us or in the event of a material
    adverse change in our financial condition or results of
    operation, and the notes do not contain any other provisions
    that are designed to afford protection in the event of a highly
    leveraged transaction involving us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Merger
    and Consolidation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture provides that we will not merge or consolidate
    with any corporation, partnership or other entity and will not
    sell, lease or convey all or substantially all of our assets to
    any entity, unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we are the surviving entity, or the surviving or successor
    entity is a corporation or partnership organized under the laws
    of the United States or a State thereof or the District of
    Columbia and expressly assumes all our obligations under the
    indenture and the notes;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    immediately after the merger, consolidation, sale, lease or
    conveyance, we or the successor entity are not in default in the
    performance of the covenants and conditions of the indenture.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Change of
    Control</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Change of Control Triggering Event occurs, unless we have
    exercised our right to redeem the notes as described above,
    holders of notes will have the right to require us to
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-8
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    repurchase all or any part (equal to $2,000 or an integral
    multiple of $1,000 in excess thereof) of their notes pursuant to
    the offer described below (the &#147;Change of Control
    Offer&#148;) on the terms set forth in the notes. In the Change
    of Control Offer, we will be required to offer payment in cash
    equal to 101% of the aggregate principal amount of notes
    repurchased plus accrued and unpaid interest, if any, on the
    notes repurchased, to the date of purchase (the &#147;Change of
    Control Payment&#148;). Within 30&#160;days following any Change
    of Control Triggering Event, or, at our option, prior to any
    Change of Control, but after the public announcement of the
    Change of Control, we will be required to mail a notice to
    holders of notes describing the transaction or transactions that
    constitute or may constitute the Change of Control Triggering
    Event and offering to repurchase the notes on the date specified
    in the notice, which date will be no earlier than 30&#160;days
    and no later than 60&#160;days from the date such notice is
    mailed (the &#147;Change of Control Payment Date&#148;),
    pursuant to the procedures required by the notes and described
    in such notice. The notice shall, if mailed prior to the date of
    consummation of the Change of Control, state that the offer to
    purchase is conditioned on the Change of Control Triggering
    Event occurring on or prior to the payment date specified in the
    notice. We must comply with the requirements of
    <FONT style="white-space: nowrap">Rule&#160;14e-1</FONT>
    under the Securities Exchange Act of 1934, as amended (the
    &#147;Exchange Act&#148;) and any other securities laws and
    regulations thereunder to the extent those laws and regulations
    are applicable in connection with the repurchase of the notes as
    a result of a Change of Control Triggering Event. To the extent
    that the provisions of any securities laws or regulations
    conflict with the Change of Control provisions of the notes, we
    will be required to comply with the applicable securities laws
    and regulations and will not be deemed to have breached our
    obligations under the Change of Control provisions of the notes
    by virtue of such conflicts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the Change of Control Payment Date, we will be required, to
    the extent lawful, to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    accept for payment all notes or portions of notes properly
    tendered pursuant to the Change of Control Offer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    deposit with the paying agent an amount equal to the Change of
    Control Payment in respect of all notes or portions of notes
    properly tendered;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    deliver or cause to be delivered to the Trustee the notes
    properly accepted together with an officers&#146; certificate
    stating the aggregate principal amount of notes or portions of
    notes being purchased.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The definition of Change of Control includes a phrase relating
    to the direct or indirect sale, lease, transfer, conveyance or
    other disposition of &#147;all or substantially all&#148; of the
    properties or assets of Kroger and its subsidiaries taken as a
    whole. Although there is a limited body of case law interpreting
    the phrase &#147;substantially all,&#148; there is no precise
    established definition of the phrase under applicable law.
    Accordingly, the ability of a holder of notes to require Kroger
    to repurchase its notes as a result of a sale, lease, transfer,
    conveyance or other disposition of less than all of the assets
    of Kroger and its subsidiaries taken as a whole to another
    Person or group may be uncertain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the foregoing discussion of a repurchase at the
    option of holders, the following definitions are applicable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Below Investment Grade Rating Event&#148; means the notes
    are rated below an Investment Grade Rating by any two of the
    three Rating Agencies (as defined below) on any date from the
    date of the public notice of an arrangement that could result in
    a Change of Control until the end of the
    <FONT style="white-space: nowrap">60-day</FONT>
    period following public notice of the occurrence of the Change
    of Control (which
    <FONT style="white-space: nowrap">60-day</FONT>
    period shall be extended so long as the rating of the notes
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-9
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    is under publicly announced consideration for possible downgrade
    below investment grade by any of the Rating Agencies); provided
    that a Below Investment Grade Rating Event otherwise arising by
    virtue of a particular reduction in rating shall not be deemed
    to have occurred in respect of a particular Change of Control
    (and thus shall not be deemed a Below Investment Grade Rating
    Event for purposes of the definition of Change of Control
    Triggering Event) if the Rating Agencies making the reduction in
    rating to which this definition would otherwise apply do not
    announce or publicly confirm or inform the trustee in writing at
    our request that the reduction was the result, in whole or in
    part, of any event or circumstance comprised of or arising as a
    result of, or in respect of, the applicable Change of Control
    (whether or not the applicable Change of Control shall have
    occurred at the time of the Below Investment Grade Rating Event).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Change of Control&#148; means the occurrence of any of the
    following: (1)&#160;the direct or indirect sale, transfer,
    conveyance or other disposition (other than by way of merger or
    consolidation), in one or a series of related transactions, of
    all or substantially all of the properties or assets of Kroger
    and its subsidiaries taken as a whole to any &#147;person&#148;
    (as that term is used in Section&#160;13(d)(3) of the Exchange
    Act) other than Kroger or one of its subsidiaries; (2)&#160;the
    consummation of any transaction (including, without limitation,
    any merger or consolidation) the result of which is that any
    &#147;person&#148; (as that term is used in
    Section&#160;13(d)(3) of the Exchange Act) becomes the
    beneficial owner, directly or indirectly, of more than 50% of
    the then outstanding number of shares of Kroger&#146;s voting
    stock; or (3)&#160;the first day on which a majority of the
    members of Kroger&#146;s Board of Directors are not Continuing
    Directors. Notwithstanding the foregoing, a transaction will not
    be deemed to involve a Change of Control if (1)&#160;we become a
    wholly owned subsidiary of a holding company that has agreed to
    be bound by the terms of the notes and (2)&#160;the holders of
    the voting stock of such holding company immediately following
    that transaction are substantially the same as the holders of
    our voting stock immediately prior to that transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Change of Control Triggering Event&#148; means the
    occurrence of both a Change of Control and a Below Investment
    Grade Rating Event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Continuing Directors&#148; means, as of any date of
    determination, members of the Board of Directors of Kroger who
    (1)&#160;were members of such Board of Directors on the date of
    the issuance of the notes; or (2)&#160;were nominated for
    election or elected to such Board of Directors with the approval
    of a majority of the continuing directors under clause&#160;(1)
    or (2)&#160;of this definition who were members of such Board of
    Directors at the time of such nomination or
    election&#160;(either by a specific vote or by approval of
    Kroger&#146;s proxy statement in which such member was named as
    a nominee for election as a director, without objection to such
    nomination).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Fitch&#148; means Fitch, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Investment Grade Rating&#148; means a rating equal to or
    higher than Baa3 (or the equivalent) by Moody&#146;s and
    BBB&#150; (or the equivalent) by S&#038;P and Fitch, and the
    equivalent investment grade credit rating from any replacement
    rating agency or rating agencies selected by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Moody&#146;s&#148; means Moody&#146;s Investors Service,
    Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Person&#148; means any individual, partnership,
    corporation, limited liability company, joint stock company,
    business trust, trust, unincorporated association, joint venture
    or other entity, or a government or political subdivision or
    agency thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Rating Agencies&#148; means (1)&#160;each of Fitch,
    Moody&#146;s and S&#038;P; and (2)&#160;if Fitch, Moody&#146;s
    or S&#038;P ceases to rate the notes or fails to make a rating
    of the notes publicly
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-10
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    available for reasons outside of our control, a &#147;nationally
    recognized statistical rating organization&#148; within the
    meaning of
    <FONT style="white-space: nowrap">Rule&#160;15c3-1(c)(2)(vi)(F)</FONT>
    under the Exchange Act, selected by us (as certified by a
    resolution of our Board of Directors) as a replacement agency
    for Fitch, Moody&#146;s or S&#038;P, or any of them, as the case
    may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;S&#038;P&#148; means Standard&#160;&#038; Poor&#146;s
    Ratings Services, a division of The McGraw-Hill Companies, Inc.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Book-Entry
    Procedures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>DTC.</I>&#160;&#160;The Depository Trust Company, New York,
    New York (&#147;DTC&#148;), will act as securities depository
    for the notes. The notes will be issued as fully-registered
    securities registered in the name of Cede&#160;&#038; Co., which
    is DTC&#146;s nominee. Fully-registered global notes will be
    issued with respect to each of the notes. See &#147;Description
    of Debt Securities&#160;&#151; Global Securities&#148; in the
    accompanying prospectus for a description of DTC&#146;s
    procedures with respect to global notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ownership of beneficial interests in a global note will be
    limited to DTC participants and to persons that may hold
    interests through institutions that have accounts with DTC,
    including Euroclear and Clearstream (&#147;participants&#148;).
    Beneficial interests in a global note will be shown on, and
    transfers of those ownership interests will be effected only
    through, records maintained by DTC and its participants for the
    global note. The conveyance of notices and other communications
    by DTC to its participants and by its participants to owners of
    beneficial interests in the notes will be governed by
    arrangements among them, subject to any statutory or regulatory
    requirements in effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Principal and interest payments on the global notes represented
    by a global security will be made to DTC or its nominee, as the
    case may be, as the sole registered owner and the sole holder of
    the global notes represented by the global security for all
    purposes under the indenture. Accordingly, we, the trustee and
    the paying agent under the indenture will have no responsibility
    or liability for:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any aspect of DTC&#146;s records relating to, or payments made
    on account of, beneficial ownership interests in a global note
    represented by a global security;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any other aspect of the relationship between DTC and its
    participants or the relationship between the participants and
    the owners of beneficial interests in a global note held through
    the participants;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the maintenance, supervision or review of any of DTC&#146;s
    records relating to the beneficial ownership interests.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC has advised us that upon receipt of any payment of principal
    of or interest on a global note, DTC will immediately credit, on
    its book-entry registration and transfer system, the accounts of
    participants with payments in amounts proportionate to their
    respective beneficial interests in the principal amount of the
    global note as shown on DTC&#146;s records. The applicable
    underwriter or underwriters will initially designate the
    accounts to be credited. Payments by participants to owners of
    beneficial interests in a global note will be governed by
    standing instructions and customary practices, as is the case
    with securities held for customer accounts in bearer form or
    registered in &#147;street name,&#148; and will be the sole
    responsibility of those participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A global note can only be transferred:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as a whole by DTC to one of its nominees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as a whole by a nominee of DTC to DTC or another nominee of
    DTC;&#160;or
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as a whole by DTC or a nominee of DTC to a successor of DTC or a
    nominee of the successor.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Global notes represented by a global security can be exchanged
    for certificated notes in registered form only if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    DTC notifies us that it is unwilling or unable to continue as
    depositary for the global note and we do not appoint a successor
    depositary within 90&#160;days after receiving the notice;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at any time DTC ceases to be a clearing agency registered under
    the Securities Exchange Act of 1934 and we do not appoint a
    successor depositary within 90&#160;days after becoming aware
    that DTC has ceased to be so registered as a clearing agency;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we in our sole discretion determine that a global note will be
    exchangeable for certificated notes in registered form and
    notify the trustee of our decision;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an event of default with respect to the notes represented by a
    global note has occurred and is continuing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A global note that can be exchanged under the previous paragraph
    will be exchanged for certificated notes that are issued in
    authorized denominations in registered form for the same
    aggregate amount. Those certificated notes will be registered in
    the names of the owners of the beneficial interests in the
    global note as directed by DTC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as provided above, owners of beneficial interests in a
    note will not be entitled to receive physical delivery of notes
    in certificated form and will not be considered the holders of
    the notes for any purpose under the indenture and no global
    notes represented by a global security will be exchangeable.
    Each person owning a beneficial interest in a global note must
    rely on the procedures of DTC (and if the person is not a
    participant, on the procedures of the participant through which
    the person owns its interest) to exercise any rights of a holder
    under the indenture or the global note. The laws of some
    jurisdictions require that purchasers of securities take
    physical delivery of the securities in certificated form. Those
    laws may impair the ability to transfer beneficial interests in
    a global note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC advises that it is a limited-purpose trust company organized
    under the New York Banking Law, a &#147;banking
    organization&#148; within the meaning of the New York Banking
    Law, a member of the Federal Reserve System, a &#147;clearing
    corporation&#148; within the meaning of the New York Uniform
    Commercial Code and a &#147;clearing agency&#148; registered
    pursuant to the provisions of Section&#160;17A of the Securities
    Exchange Act of 1934. DTC holds securities that its participants
    deposit with DTC. DTC also facilitates the settlement among
    participants of securities transactions, including transfers and
    pledges, in deposited securities through electronic computerized
    book-entry changes in participants&#146; accounts, thereby
    eliminating the need for physical movement of securities
    certificates. Direct participants include securities brokers and
    dealers, including the underwriters, banks, trust companies,
    clearing corporations and certain other organizations. DTC is
    owned by a number of its direct participants and by the NYSE
    Euronext, the American Stock Exchange, Inc., and the Financial
    Industry Regulatory Authority. Access to DTC&#146;s system is
    also available to others, including securities brokers and
    dealers, banks and trust companies that clear transactions
    through or maintain a direct or indirect custodial relationship
    with a direct participant either directly, or indirectly. The
    rules applicable to DTC and its participants are on file with
    the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Redemption notices will be sent to DTC. If less than all of the
    notes within a series are being redeemed, DTC&#146;s practice is
    to determine by lot the amount of the interest of each direct
    participant in the series to be redeemed.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-12
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither DTC nor Cede&#160;&#038; Co. will consent or vote with
    respect to the notes. Under its usual procedures, DTC mails an
    omnibus proxy to us as soon as possible after the record date.
    The omnibus proxy assigns Cede&#160;&#038; Co.&#146;s consenting
    or voting rights to those direct participants to whose accounts
    the notes are credited on the record date, which are identified
    in a listing attached to the omnibus proxy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may, at any time, decide to discontinue use of the system of
    book-entry transfers through DTC (or a successor securities
    depository). In that event, certificates representing the notes
    will be printed and delivered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beneficial interests in the global note will be represented
    through book-entry accounts of financial institutions acting on
    behalf of beneficial owners as direct and indirect participants
    in DTC. Investors may elect to hold interests in the global note
    through DTC either directly if they are participants in DTC or
    indirectly through organizations that are participants in DTC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Clearstream.</I>&#160;&#160;Clearstream is incorporated under
    the laws of Luxembourg as a professional depositary. Clearstream
    holds securities for its participating organizations
    (&#147;Clearstream Participants&#148;) and facilitates the
    clearance and settlement of securities transactions between
    Clearstream Participants through electronic book-entry changes
    in accounts of Clearstream Participants, thereby eliminating the
    need for physical movement of certificates. Clearstream provides
    Clearstream Participants with, among other things, services for
    safekeeping, administration, clearance and establishment of
    internationally traded securities and securities lending and
    borrowing. Clearstream interfaces with domestic markets in
    several countries. As a professional depositary, Clearstream is
    subject to regulation by the Luxembourg Monetary Institute.
    Clearstream Participants are recognized financial institutions
    around the world, including underwriters, securities brokers and
    dealers, banks, trust companies, clearing corporations and
    certain other organizations, and may include the Underwriters.
    Indirect access to Clearstream is also available to others, such
    as banks, brokers, dealers and trust companies that clear
    through or maintain a custodial relationship with a Clearstream
    Participant either directly or indirectly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions with respect to notes held beneficially through
    Clearstream will be credited to cash accounts of Clearstream
    Participants in accordance with its rules and procedures to the
    extent received by DTC for Clearstream.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Euroclear.</I>&#160;&#160;Euroclear was created in 1968 to
    hold securities for participants of Euroclear (&#147;Euroclear
    Participants&#148;) and to clear and settle transactions between
    Euroclear Participants through simultaneous electronic
    book-entry delivery against payment, thereby eliminating the
    need for physical movement of certificates and any risk from
    lack of simultaneous transfers of securities and cash. Euroclear
    includes various other services, including securities lending
    and borrowing and interfaces with domestic markets in several
    markets in several countries. Euroclear is operated by Euroclear
    Bank S.A./N.V. (the &#147;Euroclear Operator&#148;), under
    contract with Euro-clear Clearance System S.C., a Belgian
    cooperative corporation (the &#147;Cooperative&#148;). All
    operations are conducted by the Euroclear Operator, and all
    Euroclear securities clearance accounts and Euroclear cash
    accounts are accounts with the Euroclear Operator, not the
    Cooperative. The Cooperative establishes a policy for Euroclear
    on behalf of Euroclear Participants. Euroclear Participants
    include banks (including central banks), securities brokers and
    dealers and other professional financial intermediaries and may
    include the Underwriters. Indirect access to Euroclear is also
    available to other firms that clear through or maintain a
    custodial relationship with a Euroclear Participant, either
    directly or indirectly.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-13
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Euroclear Operation is regulated and examined by the Belgian
    Banking Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Links have been established among DTC, Clearstream and Euroclear
    to facilitate the initial issuance of the notes sold outside of
    the United States and cross-market transfers of the notes
    associated with secondary market trading.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although DTC, Clearstream and Euroclear have agreed to the
    procedures provided below in order to facilitate transfers, they
    are under no obligation to perform these procedures, and these
    procedures may be modified or discontinued at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Clearstream and Euroclear will record the ownership interests of
    their participants in much the same way as DTC, and DTC will
    record the total ownership of each of the U.S.&#160;agents of
    Clearstream and Euroclear, as participants in DTC. When notes
    are to be transferred from the account of a DTC participant to
    the account of a Clearstream participant or a Euroclear
    participant, the purchaser must send instructions to Clearstream
    or Euroclear through a participant at least one day prior to
    settlement. Clearstream or Euroclear, as the case may be, will
    instruct its U.S.&#160;agent to receive notes against payment.
    After settlement, Clearstream or Euroclear will credit its
    participant&#146;s account. Credit for the notes will appear on
    the next day (European time).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because settlement is taking place during New York business
    hours, DTC participants will be able to employ their usual
    procedures for sending notes to the relevant U.S.&#160;agent
    acting for the benefit of Clearstream or Euroclear participants.
    The sale proceeds will be available to the DTC seller on the
    settlement date. As a result, to the DTC participant, a
    cross-market transaction will settle no differently than a trade
    between two DTC participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When a Clearstream or Euroclear participant wishes to transfer
    notes to a DTC participant, the seller will be required to send
    instructions to Clearstream or Euroclear through a participant
    at least one business day prior to settlement. In these cases,
    Clearstream or Euroclear will instruct its U.S.&#160;agent to
    transfer these notes against payment for them. The payment will
    then be reflected in the account of the Clearstream or Euroclear
    participant the following day, with the proceeds back valued to
    the value date, which would be the preceding day, when
    settlement occurs in New York, if settlement is not completed on
    the intended value date, that is, if the trade fails, proceeds
    credited to the Clearstream or Euroclear participant&#146;s
    account will instead be valued as of the actual settlement date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should be aware that you will only be able to make and
    receive deliveries, payments and other communications involving
    the notes through Clearstream and Euroclear on the days when
    clearing systems are open for business. Those systems may not be
    open for business on days when banks, brokers and other
    institutions are open for business in the United States. In
    addition, because of time zone differences there may be problems
    with completing transactions involving Clearstream and Euroclear
    on the same business day as the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information in this section concerning DTC, its book-entry
    system, Clearstream and Euroclear and their respective systems
    has been obtained from sources that we believe to be reliable,
    but we have not attempted to verify the accuracy of this
    information.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discharge,
    Defeasance and Covenant Defeasance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under terms satisfactory to the trustee, we may discharge some
    obligations to holders of the notes which have not already been
    delivered to the trustee for cancellation and which
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-14
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    have either become due and payable or are by their terms due and
    payable within one year (or are scheduled for redemption within
    one year) by irrevocably depositing with the trustee cash or
    U.S.&#160;Government Obligations (as defined in the indenture)
    as trust funds in an amount certified to be sufficient to pay at
    maturity (or upon redemption) the principal of and interest on
    the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may also discharge any and all of our obligations to holders
    of the notes at any time (&#147;defeasance&#148;) or omit to
    comply with certain of the covenants contained in the indenture
    (&#147;covenant defeasance&#148;), but we may not avoid our duty
    to register the transfer or exchange of the notes, to replace
    any temporary, mutilated, destroyed, lost, or stolen notes or to
    maintain an office or agency for the notes. Defeasance or
    covenant defeasance may be effected only if, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    we irrevocably deposit with the trustee cash or
    U.S.&#160;Government Obligations as trust funds in an amount
    certified to be sufficient to pay at maturity the principal of
    and interest on all outstanding notes; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    we deliver to the trustee an opinion of counsel to the effect
    that the holders of the notes will not recognize income, gain or
    loss for U.S.&#160;federal income tax purposes as a result of
    the defeasance or covenant defeasance and that defeasance or
    covenant defeasance will not otherwise alter the holders&#146;
    U.S.&#160;federal income tax treatment of principal and interest
    payments on the notes. In the case of defeasance, the opinion
    must be based on a ruling of the IRS or a change in
    U.S.&#160;federal income tax law occurring after the date of the
    indenture, since that result would not occur under current tax
    law.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Same-Day
    Settlement and Payment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Settlement for the notes will be made by the underwriters in
    immediately available funds. We will pay all principal and
    interest in immediately available funds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Secondary trading in long-term notes and debentures of corporate
    issuers is generally settled in clearing-house or next-day
    funds. In contrast, the notes will trade in the DTC&#146;s
    same-day funds settlement system until maturity. As a result,
    DTC will require that secondary market trading activity in the
    notes be settled in immediately available funds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot advise holders on the effect on trading activity in
    the notes of settlement in immediately available funds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Further
    Issues</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may from time to time, without notice to or the consent of
    the registered holders of the notes, create and issue further
    notes. These further notes will rank equal with the notes in all
    respects (or in all respects other than the payment of interest
    accruing prior to the issue date of the further notes, or except
    for the first payment of interest following the issue date of
    the further notes). The further notes may be consolidated and
    form a single series with the notes and may have the same terms
    as to status, redemption, or otherwise, as the notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Trustee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;Bank, N.A., formerly known as Firstar Bank, National
    Association, is the trustee under the indenture. In the
    performance of its duties, the trustee is entitled to
    indemnification for any act which would involve it in expense or
    liability and will not be liable as a result of any action taken
    in connection with the performance of its duties except for its
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-15
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    own gross negligence or default. The trustee is protected in
    acting upon any direction or document reasonably believed by it
    to be genuine and to be signed by the proper party or parties or
    upon the opinion or advice of counsel. The trustee may resign
    upon written notice to us as provided in the indenture. The
    trustee may acquire our obligations for its own account. The
    trustee performs banking and other services for us, and is a
    lender under our credit facility.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-16
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='154'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNITED
    STATES FEDERAL TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary describes the material United States
    federal income tax consequences and, in the case of a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    (as defined below), the material United States federal estate
    tax consequences, of purchasing, owning and disposing of the
    notes. This summary applies to you only if you are a beneficial
    owner of a note and you acquire the note in this offering for a
    price equal to the issue price of the notes. The issue price of
    the notes is the first price at which a substantial amount of
    the notes is sold other than to bond houses, brokers, or similar
    persons or organizations acting in the capacity of underwriters,
    placement agents or wholesalers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary deals only with notes held as capital assets
    (generally, investment property) and does not deal with special
    tax situations such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dealers in securities or currencies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    traders in securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    United States holders (as defined below) whose functional
    currency is not the United States dollar;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons holding notes as part of a conversion, constructive
    sale, wash sale or other integrated transaction or a hedge,
    straddle or synthetic security;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons subject to the alternative minimum tax;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain United States expatriates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    financial institutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    insurance companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    controlled foreign corporations, passive foreign investment
    companies and regulated investment companies and shareholders of
    such corporations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    entities that are tax-exempt for United States federal income
    tax purposes and retirement plans, individual retirement
    accounts and tax-deferred accounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pass-through entities, including partnerships and entities and
    arrangements classified as partnerships for United States
    federal tax purposes, and beneficial owners of pass-through
    entities;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons that acquire the notes for a price other than their
    issue price.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are a partnership (or an entity or arrangement classified
    as a partnership for United States federal tax purposes) holding
    notes or a partner in such a partnership, the United States
    federal income tax treatment of a partner in the partnership
    generally will depend on the status of the partner and the
    activities of the partnership, and you should consult your own
    tax advisor regarding the United States federal income and
    estate tax consequences of purchasing, owning and disposing of
    the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary does not discuss all of the aspects of United
    States federal income and estate taxation that may be relevant
    to you in light of your particular investment or other
    circumstances. In addition, this summary does not discuss any
    United States state or local income or foreign income or other
    tax consequences. This summary is based on United States federal
    income and estate tax law, including the provisions of the
    Internal Revenue Code of 1986, as amended (the &#147;Internal
    Revenue Code&#148;), Treasury regulations, administrative
    rulings and judicial authority, all as in effect or in existence
    as of the date of this prospectus supplement. Subsequent
    developments in United States federal income and
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-17
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    estate tax law, including changes in law or differing
    interpretations, which may be applied retroactively, could have
    a material effect on the United States federal income and estate
    tax consequences of purchasing, owning and disposing of notes as
    set forth in this summary. Before you purchase notes, you should
    consult your own tax advisor regarding the particular United
    States federal, state and local and foreign income and other tax
    consequences of acquiring, owning and disposing of the notes
    that may be applicable to you.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">United
    States Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary applies to you only if you are a United
    States holder (as defined below).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Definition
    of a United States Holder</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A &#147;United States holder&#148; is a beneficial owner of a
    note or notes that is for United States federal income tax
    purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an individual citizen or resident of the United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a corporation (or other entity classified as a corporation for
    these purposes) created or organized in or under the laws of the
    United States, any State thereof or the District of Columbia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an estate, the income of which is subject to United States
    federal income taxation regardless of the source of that
    income;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trust, if (1)&#160;a United States court is able to exercise
    primary supervision over the trust&#146;s administration and one
    or more &#147;United States persons&#148; (within the meaning of
    the Internal Revenue Code) has the authority to control all of
    the trust&#146;s substantial decisions, or (2)&#160;the trust
    has a valid election in effect under applicable Treasury
    regulations to be treated as a &#147;United States person.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Interest</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest on your notes will be taxed as ordinary interest
    income. In addition:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if you use the cash method of accounting for United States
    federal income tax purposes, you will have to include the
    interest on your notes in your gross income at the time you
    receive the interest; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if you use the accrual method of accounting for United States
    federal income tax purposes, you will have to include the
    interest on your notes in your gross income at the time the
    interest accrues.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Sale or
    Other Disposition of Notes</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your tax basis in your notes generally will be their cost. Upon
    the sale, redemption, exchange or other taxable disposition of
    the notes, you generally will recognize taxable gain or loss
    equal to the difference, if any, between:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount realized on the disposition (less any amount
    attributable to accrued interest, which will be taxable as
    ordinary interest income to the extent not previously included
    in gross income, in the manner described under &#147;United
    States Tax Considerations&#160;&#151; United States
    Holders&#160;&#151; Interest&#148;);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    your tax basis in the notes.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-18
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your gain or loss generally will be capital gain or loss. This
    capital gain or loss will be long-term capital gain or loss if
    at the time of the disposition you have held the notes for more
    than one year. Subject to limited exceptions, your capital
    losses cannot be used to offset your ordinary income. If you are
    a non-corporate United States holder, your long-term capital
    gain generally will be subject to a reduced rate of taxation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, &#147;backup withholding&#148; currently at a rate
    of 28% may apply:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to any payments made to you of principal of and interest on your
    note,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to payment of the proceeds of a sale or other disposition of
    your note,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    if you are a non-corporate United States holder and you fail to
    provide a correct taxpayer identification number or otherwise
    comply with applicable requirements of the backup withholding
    rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The backup withholding tax is not an additional tax and may be
    credited against your United States federal income tax
    liability, provided that correct information is timely provided
    to the Internal Revenue Service.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.&#160;Holders</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary applies to you if you are a beneficial
    owner of a note and you are neither a United States holder (as
    defined above) nor a partnership (or an entity or arrangement
    classified as a partnership for United States federal tax
    purposes) (a
    <FONT style="white-space: nowrap">&#147;non-U.S.&#160;holder&#148;).</FONT>
    An individual may, subject to exceptions, be deemed to be a
    resident alien, as opposed to a non-resident alien, by among
    other ways, being present in the United States:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    on at least 31&#160;days in the calendar year,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for an aggregate of at least 183&#160;days during a three-year
    period ending in the current calendar year, counting for such
    purposes all of the days present in the current year, one-third
    of the days present in the immediately preceding year, and
    one-sixth of the days present in the second preceding year.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Resident aliens are subject to United States federal income tax
    as if they were United States citizens.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">United
    States Federal Withholding Tax</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under current United States federal income tax laws, and subject
    to the discussion below, United States federal withholding tax
    will not apply to payments by us or our paying agent (in its
    capacity as such) of principal of and interest on your notes
    under the &#147;portfolio interest&#148; exception of the
    Internal Revenue Code, provided that in the case of interest:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    you do not, directly or indirectly, actually or constructively,
    own ten percent or more of the total combined voting power of
    all classes of our stock entitled to vote within the meaning of
    section&#160;871(h)(3) of the Internal Revenue Code and the
    Treasury regulations thereunder;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    you are not a controlled foreign corporation for United States
    federal income tax purposes that is related, directly or
    indirectly, to us through sufficient stock ownership (as
    provided in the Internal Revenue Code);
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    you are not a bank receiving interest described in
    section&#160;881(c)(3)(A) of the Internal Revenue Code;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    such interest is not effectively connected with your conduct of
    a United States trade or business;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    you provide a signed written statement, on an Internal Revenue
    Service
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or other applicable form) which can reliably be related to you,
    certifying under penalties of perjury that you are not a United
    States person within the meaning of the Internal Revenue Code
    and providing your name and address to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="4%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (A)
</TD>
    <TD align="left">
    &#160;us or our paying agent;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (B)&#160;
</TD>
    <TD align="left">
    a securities clearing organization, bank or other financial
    institution that holds customers&#146; securities in the
    ordinary course of its trade or business and holds your notes on
    your behalf and that certifies to us or our paying agent under
    penalties of perjury that it, or the bank or financial
    institution between it and you, has received from you your
    signed, written statement and provides us or our paying agent
    with a copy of this statement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The applicable Treasury regulations provide alternative methods
    for satisfying the certification requirement described in this
    section. In addition, under these Treasury regulations, special
    rules apply to pass-through entities and this certification
    requirement may also apply to beneficial owners of pass-through
    entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you cannot satisfy the requirements of the &#147;portfolio
    interest&#148; exception described above, payments of interest
    made to you will be subject to 30% United States federal
    withholding tax unless you provide us or our paying agent with a
    properly executed (1)&#160;Internal Revenue Service
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    (or other applicable form) stating that interest paid on your
    notes is not subject to withholding tax because it is
    effectively connected with your conduct of a trade or business
    in the United States, or (2)&#160;Internal Revenue Service
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or other applicable form) claiming an exemption from or
    reduction in this withholding tax under an applicable income tax
    treaty.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">United
    States Federal Income Tax</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except for the possible application of United States federal
    withholding tax (see &#147;United States Federal Tax
    Considerations&#160;&#151;
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders&#160;&#151;</FONT>
    United States Federal Withholding Tax&#148; above) and backup
    withholding tax (see &#147;United States Federal Tax
    Considerations&#160;&#151;
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders-Backup</FONT>
    Withholding and Information Reporting&#148; below), you
    generally will not have to pay United States federal income tax
    on payments of principal of and interest on your notes, or on
    any gain realized from (or accrued interest treated as received
    in connection with) the sale, redemption, retirement at maturity
    or other disposition of your notes unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of interest payments or disposition proceeds
    representing accrued interest, you cannot satisfy the
    requirements of the &#147;portfolio interest&#148; exception
    described above (and your United States federal income tax
    liability has not otherwise been fully satisfied through the
    United States federal withholding tax described above);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of gain, you are an individual who is present in the
    United States for 183&#160;days or more during the taxable year
    of the sale or other disposition of your notes and specific
    other conditions are met (in which case, except as otherwise
    provided by an applicable income tax treaty, the gain, which may
    be offset by United States source capital losses, generally will
    be subject to a flat 30% United States
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    federal income tax, even though you are not considered a
    resident alien under the Internal Revenue Code);&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the interest or gain is effectively connected with your conduct
    of a United States trade or business and, if required by an
    applicable income tax treaty, is attributable to a United States
    &#147;permanent establishment&#148; maintained by you.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are engaged in a trade or business in the United States
    and interest or gain in respect of your notes is effectively
    connected with the conduct of your trade or business (and, if
    required by an applicable income tax treaty, is attributable to
    a United States &#147;permanent establishment&#148; maintained
    by you), the interest or gain generally will be subject to
    United States federal income tax on a net basis at the regular
    graduated rates and in the manner applicable to a United States
    holder (although the interest will be exempt from the
    withholding tax discussed in the preceding paragraphs if you
    provide a properly executed Internal Revenue Service
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    (or other applicable form) on or before any payment date to
    claim the exemption). In addition, if you are a foreign
    corporation, you may be subject to a branch profits tax equal to
    30% of your effectively connected earnings and profits for the
    taxable year, as adjusted for certain items, unless a lower rate
    applies to you under an applicable United States income tax
    treaty.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">United
    States Federal Estate Tax</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are an individual and are not a United States citizen or
    a resident of the United States (as specially defined for United
    States federal estate tax purposes) at the time of your death,
    your notes generally will not be subject to the United States
    federal estate tax, unless, at the time of your death:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    you directly or indirectly, actually or constructively, own ten
    percent or more of the total combined voting power of all
    classes of our stock entitled to vote within the meaning of
    section&#160;871(h)(3) of the Internal Revenue Code and the
    Treasury regulations thereunder;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    your interest on the notes is effectively connected with your
    conduct of a United States trade or business.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding and Information Reporting</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under current Treasury regulations, backup withholding and
    information reporting will not apply to payments made by us or
    our paying agent (in its capacity as such) to you if you have
    provided the required certification that you are a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    as described in &#147;United States Tax
    Considerations&#160;&#151;
    <FONT style="white-space: nowrap">Non-U.S.&#160;Holders&#160;&#151;</FONT>
    United States Federal Withholding Tax&#148; above, and provided
    that neither we nor our paying agent has actual knowledge or
    reason to know that you are a United States holder (as described
    in &#147;United States Tax Considerations&#160;&#151; United
    States Holders&#148; above). However, we or our paying agent may
    be required to report to the IRS and you payments of interest on
    the notes and the amount of tax, if any, withheld with respect
    to those payments. Copies of the information returns reporting
    such interest payments and any withholding may also be made
    available to the tax authorities in the country in which you
    reside under the provisions of a treaty or agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The gross proceeds from the disposition of your notes may be
    subject to information reporting and backup withholding tax
    currently at a rate of 28%. If you sell your notes outside the
    United States through a
    <FONT style="white-space: nowrap">non-U.S.&#160;office</FONT>
    of a
    <FONT style="white-space: nowrap">non-U.S.&#160;broker</FONT>
    and the sales proceeds are paid to you outside the United
    States, then the U.S.&#160;backup withholding and information
    reporting requirements generally will not apply to that payment.
    However,
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-21
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;information reporting, but not backup withholding,
    will apply to a payment of sales proceeds, even if that payment
    is made outside the United States, if you sell your notes
    through a
    <FONT style="white-space: nowrap">non-U.S.&#160;office</FONT>
    of a broker that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    is a United States person (as defined in the Internal Revenue
    Code);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    derives 50% or more of its gross income in specific periods from
    the conduct of a trade or business in the United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    is a &#147;controlled foreign corporation&#148; for
    U.S.&#160;federal income tax purposes;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    is a foreign partnership, if at any time during its tax year:
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    one or more of its partners are U.S.&#160;persons who in the
    aggregate hold more than 50% of the income or capital interests
    in the partnership;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the foreign partnership is engaged in a U.S.&#160;trade or
    business,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    unless the broker has documentary evidence in its files that you
    are a
    <FONT style="white-space: nowrap">non-U.S.&#160;person</FONT>
    and certain other conditions are met or you otherwise establish
    an exemption. If you receive payments of the proceeds of a sale
    of your notes to or through a U.S.&#160;office of a broker, the
    payment is subject to both U.S.&#160;backup withholding and
    information reporting unless you provide a
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    certifying that you are a
    <FONT style="white-space: nowrap">non-U.S.&#160;person</FONT>
    or you otherwise establish an exemption, provided that the
    broker does not have actual knowledge or reason to know that you
    are not a U.S.&#160;person or the conditions of any other
    exemption are not, in fact, satisfied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should consult your own tax advisor regarding application of
    backup withholding in your particular circumstance and the
    availability of and procedure for obtaining an exemption from
    backup withholding under current Treasury regulations. Any
    amounts withheld under the backup withholding rules from a
    payment to you will be allowed as a refund or credit against
    your United States federal income tax liability, provided the
    required information is timely furnished to the Internal Revenue
    Service.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-22
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='155'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kroger and the underwriters for the offering named below have
    entered into an underwriting agreement and a pricing agreement
    for offering the notes. Subject to conditions in these
    agreements, each underwriter has severally agreed to purchase
    the principal amount of notes indicated in the following table.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    Principal Amount<BR>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    Underwriters
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    of Notes
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goldman, Sachs&#160;&#038; Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J.P. Morgan Securities Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters are committed to take and pay for all of the
    notes being offered, if any are taken.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notes sold by the underwriters to the public will initially be
    offered at the initial public offering price set forth on the
    cover of this prospectus supplement. Any notes sold by the
    underwriters to securities dealers may be sold at a discount
    from the initial public offering price of up to&#160;&#160;% of
    the principal amount of the notes. Any such securities dealers
    may resell any notes purchased from the underwriters to certain
    other brokers or dealers at a discount from the initial public
    offering price of up to&#160;&#160;% of the principal amount of
    the notes. If all the notes are not sold at the initial offering
    price, the underwriters may change the offering price and the
    other selling terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are a new issue of securities with no established
    trading market. The underwriters have advised Kroger that the
    underwriters intend to make a market in the notes but are not
    obligated to do so and may discontinue market making at any time
    without notice. No assurance can be given as to the liquidity of
    the trading market for the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the offering, the underwriters may purchase
    and sell notes in the open market. These transactions may
    include short sales, stabilizing transactions and purchases to
    cover positions created by short sales. Short sales involve the
    sale by the underwriters of a greater number of notes than they
    are required to purchase in the offering. Stabilizing
    transactions consist of certain bids or purchases made for the
    purpose of preventing or retarding a decline in the market price
    of the notes while the offering is in progress.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters also may impose a penalty bid. This occurs when
    a particular underwriter repays to the underwriters a portion of
    the underwriting discount received by it because the
    underwriters have repurchased notes sold by or for the account
    of such underwriter in stabilizing or short covering
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These activities by the underwriters may stabilize, maintain or
    otherwise affect the market price of the notes. As a result, the
    price of the notes may be higher than the price that otherwise
    might exist in the open market. If these activities are
    commenced, they may be discontinued by the underwriters at any
    time. These transactions may be effected in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In relation to each Member State of the European Economic Area
    which has implemented the Prospectus Directive (each, a
    &#147;Relevant Member State&#148;), each underwriter has
    represented and agreed that with effect from and including the
    date on which the Prospectus Directive is implemented in that
    Relevant Member State (the &#147;Relevant Implementation
    Date&#148;) it has not made and will not make an offer of the
    notes which are
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-23
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the subject of this prospectus supplement to the public in that
    Relevant Member State other than:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    to legal entities which are authorized or regulated to operate
    in the financial markets or, if not so authorized or regulated,
    whose corporate purpose is solely to invest in securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    to any legal entity which has two or more of (1)&#160;an average
    of at least 250 employees during the last financial year;
    (2)&#160;a total balance sheet of more than &#128;43,000,000 and
    (3)&#160;an annual net turnover of more than &#128;50,000,000,
    as shown in its last annual or consolidated accounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    to fewer than 100 natural or legal persons (other than qualified
    investors as defined in the Prospectus Directive) subject to
    obtaining the prior consent of the Underwriters;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (d)&#160;
</TD>
    <TD align="left">
    in any other circumstances falling within Article&#160;3(2) of
    the Prospectus Directive;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    provided that no such offer of the notes shall require us or any
    Underwriter to publish a prospectus pursuant to Article&#160;3
    of the Prospectus Directive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of this provision, the expression an
    &#147;offer of notes to the public&#148; in relation to any
    notes in any Relevant Member State means the communication in
    any form and by any means of sufficient information on the terms
    of the offer and the notes to be offered so as to enable an
    investor to decide to purchase or subscribe the notes, as the
    same may be varied in that Member State by any measure
    implementing the Prospectus Directive in that Member State and
    the expression Prospectus Directive means Directive 2003/71/EC
    and includes any relevant implementing measure in each Relevant
    Member State.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each underwriter has further represented and agreed that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    it has only communicated or caused to be communicated and will
    only communicate or cause to be communicated an invitation or
    inducement to engage in investment activity (within the meaning
    of Section&#160;21 of the Financial Services and Markets Act
    2000 (&#147;FSMA&#148;)) received by it in connection with the
    issue or sale of the notes in circumstances in which
    Section&#160;21(1) of FSMA would not, if Kroger was not an
    authorized person, apply to Kroger;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    it has complied and will comply with all applicable provisions
    of the FSMA with respect to anything done by it in relation to
    the notes in, from or otherwise involving the United Kingdom.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes may not be offered or sold by means of any document
    other than (i)&#160;in circumstances which do not constitute an
    offer to the public within the meaning of the Companies
    Ordinance (Cap.32, Laws of Hong Kong), or (ii)&#160;to
    &#147;professional investors&#148; within the meaning of the
    Securities and Futures Ordinance (Cap.571, Laws of Hong Kong)
    and any rules made thereunder, or (iii)&#160;in other
    circumstances which do not result in the document being a
    &#147;prospectus&#148; within the meaning of the Companies
    Ordinance (Cap.32, Laws of Hong Kong), and no advertisement,
    invitation or document relating to the notes may be issued or
    may be in the possession of any person for the purpose of issue
    (in each case whether in Hong Kong or elsewhere), which is
    directed at, or the contents of which are likely to be accessed
    or read by, the public in Hong Kong (except if permitted to do
    so under the laws of Hong Kong) other than with respect to notes
    which are or are intended to be disposed of only to persons
    outside Hong Kong or only to &#147;professional investors&#148;
    within the meaning of the Securities and Futures Ordinance (Cap.
    571, Laws of Hong Kong) and any rules made thereunder.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-24
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The securities have not been and will not be registered under
    the Financial Instruments and Exchange Law of Japan (the
    Financial Instruments and Exchange Law) and each underwriter has
    agreed that it will not offer or sell any securities, directly
    or indirectly, in Japan or to, or for the benefit of, any
    resident of Japan (which term as used herein means any person
    resident in Japan, including any corporation or other entity
    organized under the laws of Japan), or to others for re-offering
    or resale, directly or indirectly, in Japan or to a resident of
    Japan, except pursuant to an exemption from the registration
    requirements of, and otherwise in compliance with, the Financial
    Instruments and Exchange Law and any other applicable laws,
    regulations and ministerial guidelines of Japan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus has not been registered as a prospectus with the
    Monetary Authority of Singapore. Accordingly, this prospectus
    and any other document or material in connection with the offer
    or sale, or invitation for subscription or purchase, of the
    notes may not be circulated or distributed, nor may the notes be
    offered or sold, or be made the subject of an invitation for
    subscription or purchase, whether directly or indirectly, to
    persons in Singapore other than (i)&#160;to an institutional
    investor under Section&#160;274 of the Securities and Futures
    Act, Chapter&#160;289 of Singapore (the &#147;SFA&#148;),
    (ii)&#160;to a relevant person, or any person pursuant to
    Section&#160;275(1A), and in accordance with the conditions,
    specified in Section&#160;275 of the SFA or (iii)&#160;otherwise
    pursuant to, and in accordance with the conditions of, any other
    applicable provision of the SFA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where the notes are subscribed or purchased under
    Section&#160;275 by a relevant person which is: (a)&#160;a
    corporation (which is not an accredited investor) the sole
    business of which is to hold investments and the entire share
    capital of which is owned by one or more individuals, each of
    whom is an accredited investor; or (b)&#160;a trust (where the
    trustee is not an accredited investor) whose sole purpose is to
    hold investments and each beneficiary is an accredited investor,
    shares, debentures and units of shares and debentures of that
    corporation or the beneficiaries&#146; rights and interest in
    that trust shall not be transferable for 6&#160;months after
    that corporation or that trust has acquired the notes under
    Section&#160;275 except: (1)&#160;to an institutional investor
    under Section&#160;274 of the SFA or to a relevant person, or
    any person pursuant to Section&#160;275(1A), and in accordance
    with the conditions, specified in Section&#160;275 of the SFA;
    (2)&#160;where no consideration is given for the transfer; or
    (3)&#160;by operation of law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One or more of the underwriters or their affiliates have
    provided and may in the future provide various commercial or
    investment banking services and other services to Kroger and its
    affiliates. In addition, affiliates of some of the underwriters
    are lenders, and in some cases agents or managers for the
    lenders under Kroger&#146;s credit facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Affiliates of the underwriters may in aggregate receive more
    than 10% of the proceeds of this offering as a result of the
    repayment of our commercial paper and credit facility
    borrowings. Therefore, this offering is being conducted in
    accordance with NASD Conduct Rule&#160;2710(h) administered by
    the Financial Industry Regulatory Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kroger estimates that its share of the total expenses of the
    offering, excluding underwriting discounts and commissions, will
    be approximately $&#160;&#160;&#160;&#160;&#160;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kroger has agreed to indemnify the several underwriters against
    certain liabilities, including liabilities under the Securities
    Act of 1933.
</DIV>
<A name='156'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">VALIDITY
    OF THE NOTES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the notes will be passed upon for Kroger by Paul
    W. Heldman,&#160;Esq., Executive Vice President, Secretary and
    General Counsel of Kroger, and for the
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-25
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    underwriters by Fried, Frank, Harris, Shriver&#160;&#038;
    Jacobson LLP, New York, New York. Mr.&#160;Heldman may rely as
    to matters of New York law upon the opinion of Fried, Frank,
    Harris, Shriver&#160;&#038; Jacobson LLP, and Fried, Frank,
    Harris, Shriver&#160;&#038; Jacobson LLP may rely as to matters
    of Ohio law upon the opinion of Mr.&#160;Heldman. As of
    October&#160;31, 2008, Mr.&#160;Heldman owned approximately
    275,757&#160;shares of Kroger&#146;s Common Stock and had
    options to acquire an additional 470,000&#160;shares. Fried,
    Frank, Harris, Shriver&#160;&#038; Jacobson LLP from time to
    time performs legal services for Kroger.
</DIV>
<A name='157'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements incorporated in this prospectus
    supplement by reference to the Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended February&#160;2, 2008 have been so
    incorporated in reliance on the report of PricewaterhouseCoopers
    LLP, independent registered public accounting firm, given on the
    authority of said firm as experts in auditing and accounting.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-26
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<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='158'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prospectus and this prospectus supplement contain, or
    incorporate by reference, certain statements that may be deemed
    &#147;forward-looking statements&#148; within the meaning of
    Section&#160;27A of the Securities Act and Section&#160;21E of
    the Exchange Act. All statements, other than statements of
    historical facts, that address activities, events or
    developments that we intend, expect, project, believe or
    anticipate will or may occur in the future are forward-looking
    statements. Such statements are based on certain assumptions and
    assessments made by our management in light of its experience
    and its perception of historical trends, current conditions,
    expected future developments and other factors it believes to be
    appropriate. The forward-looking statements included in the
    prospectus and this prospectus supplement are also subject to a
    number of material risks and uncertainties, including but not
    limited to economic, competitive, governmental and technological
    factors affecting our operations, markets, products, services
    and prices, and other factors discussed in our filings under the
    Securities Act and the Exchange Act. Prospective investors are
    cautioned that such forward-looking statements are not
    guarantees of future performance and that actual results,
    developments and business decisions may differ from those
    envisaged by such forward-looking statements.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='159'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LIST OF
    SUBSIDIARY GUARANTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Jurisdiction of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Guarantor</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Organization</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alpha Beta Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bay Area Warehouse Stores, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bell Markets, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cala Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Delaware
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cala Foods, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CB&#038;S Advertising Agency, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Oregon
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Crawford Stores, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dillon Companies, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Kansas
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dillon Real Estate Co., Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Kansas
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Distribution Trucking Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Oregon
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    F4L L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FM, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Utah
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FMJ, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Delaware
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Food 4 Less GM, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Food 4 Less Holdings, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Delaware
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Food 4 Less Merchandising, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Food 4 Less of California, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Food 4 Less of Southern California, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Delaware
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fred Meyer, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Delaware
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fred Meyer Jewelers, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fred Meyer Stores, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Henpil, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Texas
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Hughes Markets, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Hughes Realty, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Inter-American Foods, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Junior Food Stores of West Florida, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Florida
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J.V. Distributing, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Michigan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    KRGP Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    KRLP Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    The Kroger Co. of Michigan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Michigan
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kroger Dedicated Logistics Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kroger Group Cooperative, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kroger Limited Partnership&#160;I
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kroger Limited Partnership&#160;II
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kroger Texas L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kwik Shop, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Kansas
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mini Mart, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Wyoming
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Peyton&#146;s-Southeastern, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Tennessee
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Queen City Assurance, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Vermont
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Quik Stop Markets, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    California
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ralphs Grocery Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    RJD Assurance, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Vermont
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Rocket Newco, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Texas
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Story, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Washington
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Smith&#146;s Beverage of Wyoming, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Wyoming
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Smith&#146;s Food&#160;&#038; Drug Centers, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    THGP Co., Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Pennsylvania
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    THLP Co., Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Pennsylvania
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Topvalco, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Ohio
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Turkey Hill, L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Pennsylvania
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vine Court Assurance Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Vermont
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 18pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Kroger Co.</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Debt
    Securities<BR>
    Preferred Stock<BR>
    Depositary Shares<BR>
    Common Stock<BR>
    Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will provide specific terms of these securities in
    supplements to this prospectus. You should read this prospectus
    and any supplement carefully before you invest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may offer any of the following securities from time to time:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    debt securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    depositary shares relating to preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    common stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    warrants to purchase debt securities, common stock or preferred
    stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 20%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=407 length=84 -->

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 10pt">The date of this prospectus is
    December&#160;20, 2007
    </FONT>
</DIV>

<P align="left" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Table of
    Contents</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>About This Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Forward Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Our Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Consolidated Ratio of Earnings to Fixed
    Charges</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Description of Debt Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Description of Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Description of Depositary Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Description of Warrants</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">About This
    Prospectus</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a Registration Statement that we
    filed with the SEC utilizing a &#147;shelf&#148; registration
    process. Under this shelf process, we may sell any combination
    of the securities described in this prospectus in one or more
    offerings. This prospectus provides you with a general
    description of the securities we may offer. Each time we sell
    securities, we will provide a prospectus supplement that will
    contain specific information about the terms of that offering.
    The prospectus supplement may also add, update or change
    information contained in this prospectus. You should read both
    this prospectus and any prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further information about our business and the securities,
    you should refer to the registration statement and its exhibits.
    The exhibits to the registration statement and the documents we
    incorporate by reference contain the full text of certain
    contracts and other important documents summarized in this
    prospectus. Since these summaries may not contain all the
    information that you may find important in deciding whether to
    purchase securities we may offer, you should review the full
    text of those documents. The registration statement and
    additional information can be obtained from the SEC as indicated
    under the heading &#147;Where You Can Find More
    Information.&#148;
</DIV>
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Risk
    Factors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should carefully consider the specific risks described in
    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended February&#160;3, 2007, the risk
    factors described under the caption &#147;Risk Factors&#148; in
    any applicable prospectus supplement, and any risk factors set
    forth in our other filings with the SEC pursuant to
    Sections&#160;13(a), 13(c), 14, or 15(d) of the Exchange Act
    before making an investment decision. See &#147;Where You Can
    Find More Information.&#148;
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Forward Looking
    Statements</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain information included or incorporated by reference in
    this document may be deemed to be &#147;forward looking
    statements&#148; within the meaning of the Private Securities
    Litigation Reform Act of 1995. In addition, we may make other
    written and oral communications from time to time that contain
    such statements. Forward-looking statements include statements
    as to industry trends and our future expectations and other
    matters that do not relate strictly to historical facts and are
    based on certain assumptions by our management. These statements
    are often identified by the use of words such as
    &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148;
    &#147;believe,&#148; &#147;anticipate,&#148; &#147;intend,&#148;
    &#147;could,&#148; &#147;should,&#148; &#147;estimate&#148; or
    &#147;continue,&#148; and similar expressions or variations.
    These statements are based on the beliefs and assumptions of our
    management based on information currently available to our
    management. Such forward-looking statements are subject to
    risks, uncertainties and other factors that could cause actual
    results to differ materially from future results expressed or
    implied by such forward-looking statements. Important factors
    that could cause actual results to differ materially from the
    forward-looking statements include, among others, the risks
    described in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended February&#160;3, 2007, the risks
    described under the caption &#147;Risk Factors&#148; in any
    applicable prospectus supplement and any risk set forth in our
    other filings with the SEC that are incorporated by reference
    into this prospectus or any applicable prospectus supplement.
    You should carefully consider these factors before investing in
    our securities. Such forward-looking statements speak only as of
    the date they are made, and except for our ongoing obligations
    under the U.S.&#160;federal securities laws, we undertake no
    obligation to publicly update any forward-looking statements,
    whether as a result of new information, future events or
    otherwise.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='104'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Where You Can
    Find More Information</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Kroger files annual, quarterly and special reports, proxy
    statements and other information with the SEC. You may read and
    copy any document we file at the SEC&#146;s public reference
    room at 450&#160;Fifth Street, N.W., Washington,&#160;D.C.
    20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the public reference room. Our SEC
    filings are also available to the public from the SEC&#146;s web
    site at
    <U><FONT style="white-space: nowrap">http://www.sec.gov</FONT></U>.
    You can find additional information on Kroger at
    <U><FONT style="white-space: nowrap">http://www.kroger.com</FONT></U>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to &#147;incorporate by reference&#148; the
    information we file with them. This means that we can disclose
    important information to you by referring you to these
    documents. The information incorporated by reference is an
    important part of this prospectus, and information that we file
    later with the SEC will automatically update and supersede this
    information. We incorporate by reference the documents listed
    below, which we have already filed with the SEC, and any future
    filings we make with the SEC under Sections&#160;13(a), 13(c),
    14 or 15(d) of the Securities Exchange Act of 1934 until we sell
    all of the securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 9pt">KROGER SEC FILINGS (FILE NO.
    1-303)</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">PERIOD</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Year ended February 3, 2007
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Quarter ended May 26, 2007, Quarter ended August 18, 2007, and
    Quarter ended November 10, 2007
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    March 13, 2007; March 15, 2007;  April 2, 2007; April 6, 2007;
    June 26, 2007; August 15, 2007; September 18, 2007; October 1,
    2007; December 3, 2007; and December 11, 2007
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may request a copy of these filings, other than any
    exhibits, unless we have specifically incorporated by reference
    an exhibit in this prospectus, at no cost, by writing or
    telephoning us at the following address:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 38%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Kroger Co.
</DIV>

<DIV align="left" style="margin-left: 38%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1014 Vine Street
</DIV>

<DIV align="left" style="margin-left: 38%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cincinnati, Ohio
    <FONT style="white-space: nowrap">45202-1100</FONT>
</DIV>

<DIV align="left" style="margin-left: 38%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">(513)&#160;762-4000</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 38%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attention: Paul Heldman
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a Registration Statement we filed
    with the SEC. We have incorporated into this Registration
    Statement exhibits that include a form of proposed underwriting
    agreement and indenture. You should read the exhibits carefully
    for provisions that may be important to you.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely on the information incorporated by reference or
    provided in this prospectus or any prospectus supplement. We
    have not authorized anyone to provide you with different
    information. We are not making an offer of these securities in
    any state where the offer is not permitted. You should not
    assume that the information in this prospectus or the documents
    incorporated by reference is accurate as of any date other than
    the date on the front of this prospectus or those documents.
</DIV>
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Our
    Company</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Kroger Co. was founded in 1883 and incorporated in Ohio in
    1902. As of February&#160;3, 2007, we were one of the largest
    grocery retailers in the United States based on annual sales. We
    also manufacture and process food that our supermarkets sell.
    Our principal executive offices are located at 1014 Vine Street,
    Cincinnati, Ohio
    <FONT style="white-space: nowrap">45202-1100,</FONT>
    and our telephone number is
    <FONT style="white-space: nowrap">(513)&#160;762-4000.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of February&#160;3, 2007, directly or through subsidiaries we
    operated approximately 2,468 supermarkets and multidepartment
    stores, 779 convenience stores, 631 supermarket fuel centers,
    and 412 fine jewelry stores. Ninety-two of the convenience
    stores are franchised to third parties. We also operate directly
    or through subsidiaries 42 manufacturing facilities that permit
    us to offer quality, low-cost private label products.
</DIV>
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Consolidated
    Ratio of Earnings to Fixed Charges</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below presents our consolidated ratio of earnings to
    fixed charges for the periods shown:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fiscal Years Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>February&#160;3,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;28,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;29,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;3,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>February&#160;1,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2006<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2005<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2004<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2003<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(53 weeks)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(52 weeks)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(52 weeks)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(52 weeks)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(52 weeks)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Earnings&#148; includes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    earnings before tax expense;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    extraordinary loss, plus fixed charges,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and excludes capitalized interest.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Fixed charges&#148; includes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    interest, including capitalized interest, on all indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    amortization of deferred financing costs;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    that portion of rental expense that we believe is representative
    of interest.
</TD>
</TR>

</TABLE>
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Use of
    Proceeds</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will use the net proceeds from the sale of the securities to
    repay amounts under our credit facility or short-term borrowings
    and thereafter to use short-term borrowings or borrowings under
    our credit facility to repurchase, repay or redeem our
    outstanding indebtedness. We also expect to use borrowing
    proceeds for other general corporate purposes.
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Plan of
    Distribution</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may sell the securities in any one or more of the following
    ways:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    directly to investors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to investors through agents or dealers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through underwriting syndicates led by one or more managing
    underwriters;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through one or more underwriters acting alone.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we use underwriters in the sale, the obligations of the
    underwriters to purchase the securities will be subject to
    conditions. The underwriters will be obligated to purchase all
    the securities offered, if any are purchased. The underwriters
    will acquire the securities for their own account. The
    underwriters may resell the securities in one or more
    transactions, including negotiated transactions, at a fixed
    public offering price or at varying prices determined at the
    time of sale. The underwriters may change from time to time any
    initial public offering price and any discounts or concessions
    allowed or re-allowed or paid to dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may use agents in the sale of securities. Unless indicated in
    the prospectus supplement, the agent will be acting on a best
    efforts basis for the period of its appointment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we use a dealer in the sale of the securities, we will sell
    the securities to the dealer as principal. The dealer may then
    resell the securities to the public at varying prices it
    determines at the time of resale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also may sell the securities in connection with a remarketing
    upon their purchase, in accordance with a redemption or
    repayment, by a remarketing firm acting as principal for its own
    account or as our agent. Remarketing firms may be deemed to be
    underwriters in connection with the securities they remarket.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may authorize underwriters, dealers or agents to solicit
    offers to purchase the securities under a delayed delivery
    contract providing for payment and delivery at a future date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will identify any underwriters or agents and describe their
    compensation, including any discounts or commissions, in a
    prospectus supplement. Underwriters, dealers and agents that
    participate in the distribution of the offered securities may be
    underwriters as defined in the Securities Act of 1933. Any
    discounts or commissions received by them from us and
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    any profit on the resale of the securities by them may be
    treated as underwriting discounts and commissions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may have agreements with the underwriters, dealers and agents
    to indemnify them against some civil liabilities, including
    liabilities under the Securities Act of 1933, or to contribute
    to payments that the underwriters, dealers or agents may be
    required to make. Underwriters, dealers or agents may engage in
    transactions with, or perform services for, us in the ordinary
    course of their business.
</DIV>
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Description of
    Debt Securities</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus describes the terms and provisions of the debt
    securities. When we offer to sell a particular series of debt
    securities, we will describe the specific terms of the
    securities in a supplement to this prospectus. The prospectus
    supplement also will indicate whether the general terms and
    provisions described in this prospectus apply to the particular
    series of debt securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The debt securities will be issued under an indenture between
    Kroger and a trustee to be selected by us. The indenture allows
    us to have different trustees for each debt security offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have summarized the material terms of the indenture below.
    The indenture is included as an exhibit to the Registration
    Statement for these securities that we have filed with the SEC.
    You should read the indenture for the provisions that are
    important to you.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Principal Terms
    of the Debt Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The debt securities will rank equally in right of payment with
    all of our existing and future unsecured senior debt. The debt
    securities will rank senior to any future subordinated
    indebtedness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A prospectus supplement relating to any series of debt
    securities being offered will include specific terms relating to
    that series of debt securities. These terms will include some or
    all of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their type and title;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their total principal amount and currency or currency unit;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the denominations in which they are authorized to be issued;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the percentage of their principal amount at which they will be
    issued;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the date on which they will mature;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if they bear interest, the interest rate or the method by which
    the interest rate will be determined;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the times at which any interest will be payable or the manner of
    determining the interest payment dates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any optional or mandatory redemption periods and the redemption
    or purchase price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any guarantees by our direct and indirect subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any sinking fund requirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any special United States federal income tax considerations;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether they are to be issued in the form of one or more
    temporary or permanent global securities and, if so, the
    identity of the depositary for the global securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any information with respect to book-entry procedures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the manner in which the amount of any payments of principal and
    interest determined by reference to an index are
    determined;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any other specific terms not inconsistent with the indenture.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Denominations,
    Registration, Transfer and Payment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will issue the debt securities in registered form without
    coupons or in the form of one or more global securities, as
    described below under &#147;Global securities.&#148; We will
    issue registered securities denominated in U.S.&#160;dollars
    only in denominations of $2,000 and integral multiples of
    $1,000. We will issue global securities in a denomination equal
    to the total principal amount of outstanding debt securities of
    the series represented by the global security. We will describe
    the denomination of debt securities denominated in a foreign or
    composite currency in a prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may present registered securities for registration of
    transfer at the office of the registrar or at the office of any
    transfer agent designated by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay principal and any premium and interest on registered
    securities at the office of the paying agent. We may choose to
    make any interest payment (1)&#160;by check mailed to the
    holder&#146;s address appearing in the register or (2)&#160;by
    wire transfer to an account maintained by the holder as
    specified in the register. We will make interest payments to the
    person in whose name the debt security is registered at the
    close of business on the day or days specified by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trustee&#146;s principal office in the City of New York,
    Chicago, Cincinnati, or other location, will be designated as
    the sole paying agent for payments on registered securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Global
    Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will deposit global securities with the depositary identified
    in the prospectus supplement. A global security is a security,
    typically held by a depositary, that represents the beneficial
    interests of a number of purchasers of the security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After we issue a global security, the depositary will credit on
    its book-entry registration and transfer system the respective
    principal amounts of the debt securities represented by the
    global security to the accounts of persons that have accounts
    with the depositary. These account holders are known as
    &#147;participants.&#148; The underwriters or agents
    participating in the distribution of the debt securities will
    designate the accounts to be credited. Only a participant or a
    person that holds an interest through a participant may be the
    beneficial owner of a global security. Ownership of beneficial
    interests in the global security will be shown on, and the
    transfer of that ownership will be effected only through,
    records maintained by the depositary and its participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and the trustee will treat the depositary or its nominee as
    the sole owner or holder of the debt securities represented by a
    global security. Except as set forth below, owners of beneficial
    interests in a global security will not be entitled to have the
    debt securities represented by the global security registered in
    their names. They also will not receive or be entitled to
    receive physical delivery of the debt securities in definitive
    form and will not be considered the owners or holders of the
    debt securities.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Principal, any premium and any interest payments on debt
    securities represented by a global security registered in the
    name of a depositary or its nominee will be made to the
    depositary or its nominee as the registered owner of the global
    security. None of Kroger, the trustee or any paying agent will
    have any responsibility or liability for any aspect of the
    records relating to or payments made on account of beneficial
    ownership interests in the global security or for maintaining,
    supervising or reviewing any records relating to the beneficial
    ownership interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that the depositary, upon receipt of any payments,
    will immediately credit participants&#146; accounts with
    payments in amounts proportionate to their respective beneficial
    interests in the principal amount of the global security as
    shown on the depositary&#146;s records. We also expect that
    payments by participants to owners of beneficial interests in
    the global security will be governed by standing instructions
    and customary practices, as is the case with the securities held
    for the accounts of customers registered in &#147;street
    names&#148; and will be the responsibility of the participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the depositary is at any time unwilling or unable to continue
    as depositary and a successor depositary is not appointed by us
    within ninety days, we will issue registered securities in
    exchange for the global security. In addition, we may at any
    time in our sole discretion determine not to have any of the
    debt securities of a series represented by global securities. In
    that event, we will issue debt securities of that series in
    definitive form in exchange for the global securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Events of
    Default</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When we use the term &#147;Event of Default&#148; in the
    indenture, here are examples of what we mean:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we fail to pay the principal or any premium on any debt security
    when due;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we fail to deposit any sinking fund payment when due;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we fail to pay interest when due on any security for
    30&#160;days;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we fail to comply with any other covenant in the debt securities
    and this failure continues for 60&#160;days after we receive
    written notice of it;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we default in any of our other indebtedness in excess of
    $50,000,000, and that results in an acceleration of
    maturity;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we take specified actions relating to our bankruptcy, insolvency
    or reorganization.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The supplemental indenture or the form of security for a
    particular series of debt securities may include additional
    Events of Default or changes to the Events of Default described
    above. You should refer to the prospectus supplement for the
    Events of Default relating to a particular series of debt
    securities. A default under one series of debt securities will
    not necessarily be a default under another series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an Event of Default for debt securities of any series occurs
    and is continuing, the trustee or the holders of at least 25% in
    principal amount of all of the debt securities of that series
    outstanding may require us to immediately repay all of the
    principal and interest due on the debt securities of that
    series. The holders of a majority in principal amount of all of
    the debt securities of that series may rescind this accelerated
    payment requirement, if the rescission would not conflict with
    any judgment or decree by a court and if all existing Events of
    Default have been cured or waived.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an Event of Default occurs and is continuing, the trustee may
    pursue any remedy available to it to collect payment or to
    enforce the performance of any provision of the debt securities
    or the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of a majority in principal amount of the debt
    securities may generally waive an existing default and its
    consequences.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Modification of
    the Indenture</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture may be amended without the consent of any holder
    of debt securities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cure any ambiguity, defect or inconsistency;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to permit a successor to assume our obligations under the
    indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to add additional covenants for the benefit of holders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to add additional Events of Default;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to add or change provisions necessary to facilitate the issuance
    of securities;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to entitle the securities to the benefit of security.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture may be amended with the written consent of the
    holders of at least 50% in principal amount of the debt
    securities of the series affected by the amendment. Holders of
    at least 50% in principal amount of the debt securities may
    waive our compliance with any provision of the indenture or the
    debt securities by giving notice to the trustee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    However, no amendment or waiver that
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes the maturity of principal or any installment of
    principal or interest;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reduces the amount of principal or interest or premium payable
    on redemption;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reduces the amount of debt securities whose holders must consent
    to an amendment or waiver;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    modifies provisions related to rights of holders to redeem
    securities at their option;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes other rights of holders as specifically identified in
    the indenture
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    will be effective against any holder without the holder&#146;s
    consent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Other Debt
    Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the debt securities described above, we may issue
    subordinated debt securities that rank junior to our senior debt
    securities. These debt securities will be described in a
    prospectus supplement and will be issued pursuant to an
    indenture entered into between Kroger and a trustee that we
    select. The indenture will be filed with the SEC and qualified
    under the Trust&#160;Indenture Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Other
    Limitations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prospectus supplement may contain provisions that limit our
    ability to consolidate or merge with other companies. It also
    may contain provisions that limit our right to incur liens and
    to engage in sale and leaseback transactions.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Description of
    Capital Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Amended Articles of Incorporation authorize us to issue
    1,000,000,000&#160;shares of common stock, $1&#160;par value per
    share, and 5,000,000&#160;shares of cumulative preferred stock,
    $100&#160;par value per share. As of November&#160;10, 2007,
    there were outstanding 676,103,688&#160;shares of common stock,
    and no shares of cumulative preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All outstanding common stock is, and any stock issued under this
    prospectus will be, fully paid and nonassessable. Subject to
    rights of preferred stockholders if any preferred stock is
    issued and outstanding, holders of common stock
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are entitled to any dividends validly declared;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    will share ratably in our net assets in the event of a
    liquidation;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are entitled to one vote per share.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The common stock has no conversion rights. Holders of common
    stock have no preemption, subscription, redemption, or call
    rights related to those shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank of New York is the transfer agent and registrar for our
    common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus describes the terms and provisions of our
    preferred stock. When we offer to sell a particular series of
    preferred stock, we will describe the specific terms of the
    securities in a supplement to this prospectus. The prospectus
    supplement will also indicate whether the terms and provisions
    described in this prospectus apply to the particular series of
    preferred stock. The preferred stock will be issued under a
    certificate of designations relating to each series of preferred
    stock. It is also subject to our Amended Articles of
    Incorporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have summarized the material portions of the certificate of
    designations below. The certificate of designations will be
    filed with the SEC in connection with an offering of preferred
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Amended Articles of Incorporation authorize us to issue
    5,000,000&#160;shares of preferred stock, par value $100 per
    share. Our Board is authorized to designate any series of
    preferred stock and the powers, preferences and rights of the
    preferred stock without further shareholder action. As of
    November&#160;10, 2007, we had no shares of preferred stock
    outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board is authorized to determine or fix the following terms
    for each series of preferred stock, which will be described in a
    prospectus supplement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation and number of shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the dividend rate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the payment date for dividends and the date from which dividends
    are cumulative;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our redemption rights and the redemption prices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    amounts payable to holders on our liquidation, dissolution or
    winding up;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount of the sinking fund, if any;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether the shares will be convertible or exchangeable, and if
    so the prices and terms;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether future shares of the series or any future series or
    other class of stock is subject to any restrictions, and if so
    the nature of the restrictions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When we issue shares of preferred stock, they will be fully paid
    and nonassessable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Dividends</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of preferred stock will be entitled to receive cash
    dividends if declared by our Board of Directors out of funds we
    can legally use for payment. The prospectus supplement will
    indicate the dividend rates and the dates on which we will pay
    dividends. The rates may be fixed or variable or both. If the
    dividend rate is variable, the formula used to determine the
    dividend rate will be described in the prospectus supplement. We
    will pay dividends to the holders of record as they appear on
    the record dates fixed by our Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board will not declare and pay a dividend on any series of
    preferred stock unless full dividends for all series of
    preferred stock ranking equal as to dividends have been declared
    or paid and sufficient funds are set aside for payment. If
    dividends are not paid in full, we will declare any dividends
    pro rata among the preferred stock of each series and any series
    of preferred stock ranking equal to any other series as to
    dividends. A &#147;pro rata&#148; declaration means that the
    dividends we declare per share on each series of preferred stock
    will bear the same relationship to each other that the full
    accrued dividends per share on each series of the preferred
    stock bear to each other.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless all dividends on the preferred stock have been paid in
    full, we will not declare or pay any dividends or set aside sums
    for payment of dividends or distributions on any common stock or
    on any class of security ranking junior to the series of
    preferred stock, except for dividends or distributions paid for
    with securities ranking junior to the preferred stock. We also
    will not redeem, purchase, or otherwise acquire any securities
    ranking junior to the series of preferred stock as to dividends
    or liquidation preferences, except by conversion into or
    exchange for stock junior to the series of preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Convertibility</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not convert or exchange any series of preferred stock
    for other securities or property, unless otherwise indicated in
    the prospectus supplement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Redemption and
    sinking fund</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not redeem or pay into a sinking fund any series of
    preferred stock, unless otherwise indicated in the prospectus
    supplement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Liquidation
    rights</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we voluntarily or involuntarily liquidate, dissolve or wind
    up our business, holders of any series of preferred stock will
    be entitled to receive the liquidation preference per share
    specified in the prospectus supplement and all accrued and
    unpaid dividends. We will pay these amounts to the holders of
    each series of the preferred stock, and all amounts owing on any
    preferred stock ranking equally with that series of preferred
    stock as to distributions upon liquidation. These payments will
    be made out of our assets available for distribution to
    shareholders before any distribution is made to holders of
    common stock or any class of stock ranking junior to the series
    of preferred stock as to dividends and liquidation preferences.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event there are insufficient assets to pay the
    liquidation preferences for all equally-ranked classes of
    preferred stock in full, we will allocate the remaining assets
    equally among all series of equally-ranked preferred stock based
    upon the aggregate liquidation preference for all outstanding
    shares for each series. This distribution means that the
    distribution we pay to the holders of all shares ranking equal
    as to distributions if we dissolve, liquidate or wind up our
    business will bear the same relationship to each other that the
    full distributable amounts for which the holders are
    respectively entitled if we dissolve, liquidate or wind up our
    business bear to each other. After we pay the full amount of the
    liquidation preference to which they are entitled, the holders
    of shares of a series of preferred stock will not be entitled to
    participate in any further distribution of our assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Voting
    rights</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of preferred stock will be entitled to one vote per
    share, unless otherwise indicated in the prospectus supplement
    or otherwise required by law.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Transfer agent
    and registrar</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prospectus supplement for each series of preferred stock
    will name the transfer agent and registrar.
</DIV>
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Description of
    Depositary Shares</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus describes the terms and provisions of our
    depositary shares. When we offer to sell depositary shares, we
    will describe the specific terms for the securities in a
    supplement to this prospectus. The prospectus supplement also
    will indicate whether the terms and provisions described in this
    prospectus apply to the depositary shares being offered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have summarized the material portions of the deposit
    agreement below. The deposit agreement will be filed with the
    SEC in connection with an offering of depositary shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may offer fractional interests in preferred stock, rather
    than full shares of preferred stock. If we do, we will provide
    for a depositary to issue to the public receipts for depositary
    shares, each of which will represent ownership of and
    entitlement to all rights and preferences of a fractional
    interest in a share of preferred stock of a specified series.
    These rights include dividend, voting, redemption and
    liquidation rights. The applicable fraction will be specified in
    a prospectus supplement. The shares of preferred stock
    represented by the depositary shares will be deposited with a
    depositary named in a prospectus supplement, under a deposit
    agreement among us, the depositary and the holders of the
    depositary receipts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary shares will be evidenced by depositary receipts
    issued under the deposit agreement. The depositary will be the
    transfer agent, registrar and dividend disbursing agent for the
    depositary shares. Holders of depositary receipts agree to be
    bound by the deposit agreement, which requires holders to file
    proof of residence and pay charges.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Dividends</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary will distribute all cash dividends or other cash
    distributions received to the record holders of depositary
    receipts in proportion to the number of depositary shares owned
    by them on the relevant record date. The record date will be the
    same date as the record date we fix for the applicable series of
    preferred stock.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we make a non-cash distribution, the depositary will
    distribute property to the holders of depositary receipts,
    unless the depositary determines, after consultation with us,
    that it is not feasible to make this distribution. If this
    occurs, the depositary may, with our approval, adopt any other
    method for the distribution as it deems appropriate, including
    the sale of the property and distribution of the net proceeds
    from the sale.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Liquidation
    Preference</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we voluntarily or involuntarily liquidate, dissolve or wind
    up our business, the holders of each depositary share will
    receive the fraction of the liquidation preference accorded each
    share of the applicable series of preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we redeem the series of preferred stock underlying the
    depositary shares, we will redeem the depositary shares from the
    redemption proceeds of the preferred stock held by the
    depositary. Whenever we redeem any preferred stock held by the
    depositary, the depositary will redeem on the same redemption
    date the number of depositary shares representing the preferred
    stock being redeemed. The depositary will mail the notice of
    redemption between 30 to 60&#160;days prior to the date fixed
    for redemption to the record holders of the depositary receipts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Voting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary will promptly mail information contained in any
    notice of meeting it receives from us to the record holders of
    the depositary receipts. Each record holder of depositary
    receipts will be entitled to instruct the depositary as to its
    exercise of its voting rights pertaining to the number of shares
    of preferred stock represented by its depositary shares. The
    depositary will try, if practical, to vote the preferred stock
    underlying the depositary shares according to the instructions
    received. We will agree to try to take all action that the
    depositary finds necessary in order to enable the depositary to
    vote the preferred stock in that manner. The depositary will not
    vote any of the preferred stock for which it does not receive
    specific instructions from the holders of depositary receipts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Withdrawal of
    Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If holders surrender depositary receipts at the principal office
    of the depositary and pay any unpaid amount due to the
    depositary, the owner of the depositary shares is entitled to
    receive the number of whole shares of preferred stock and all
    money and other property represented by the depositary shares.
    Partial shares of preferred stock will not be issued. If the
    holder delivers depositary receipts evidencing a number of
    depositary shares that represent more than a whole number of
    shares of preferred stock, the depositary will issue a new
    depositary receipt evidencing the excess number of depositary
    shares to that holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of preferred stock received in exchange for depositary
    shares will no longer be entitled to deposit these shares under
    the deposit agreement or to receive depositary receipts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Amendment and
    Termination of Deposit Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The form of depositary receipt evidencing the depositary shares
    and any provision of the deposit agreement may be amended by
    agreement between us and the depositary. However, any amendment
    that materially and adversely alters the rights of the holders,
    other than any change in fees, of depositary shares will not be
    effective unless approved by
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the holders of at least a majority of the depositary shares then
    outstanding. An amendment may not impair the right of any owner
    of any depositary shares to surrender its depositary receipt
    with instructions to the depositary in exchange for preferred
    stock, money and property, except in order to comply with
    mandatory provisions of applicable law. The deposit agreement
    may be terminated by us or the depositary only if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all outstanding depositary shares have been redeemed;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there has been a final distribution to the holders of the
    preferred stock in connection with the liquidation, dissolution
    or winding up of our business, and the distribution has been
    made to all the holders of depositary shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Charges of
    Depositary</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay all transfer and other taxes and governmental
    charges attributable solely to the depositary arrangements. We
    will pay the depositary&#146;s charges for the initial deposit
    of the preferred stock and the initial issuance of the
    depositary shares, any redemption of the preferred stock and all
    exchanges for preferred stock. Holders of depositary receipts
    will pay transfer, income and other taxes and governmental
    charges and other charges stated in the deposit agreement to be
    for their accounts. In some circumstances, the depositary may
    refuse to transfer depositary shares, may withhold dividends and
    distributions and may sell the depositary shares if those
    charges are not paid.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Obligations of
    Depositary</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary will forward to the holders of depositary
    receipts all reports and communications from us that are
    delivered to it and that we are required to furnish to the
    holders of the preferred stock. In addition, the depositary will
    make available for inspection by holders of depositary receipts
    at its principal office, and at other places it deems advisable,
    any reports and communications received from us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not assume, and the depositary will not assume, any
    obligation or any liability under the deposit agreement to
    holders of depositary receipts other than for gross negligence
    or willful misconduct. We will not be liable, and the depositary
    will not be liable, if we are prevented or delayed by law or any
    circumstance beyond our control in performing our obligations
    under the deposit agreement. Our obligations and the
    depositary&#146;s obligations under the deposit agreement will
    be limited to performance in good faith of our and their duties.
    We and the depositary will not be obligated to prosecute or
    defend any legal proceeding related to any depositary shares or
    preferred stock unless we receive satisfactory indemnity. We and
    the depositary may rely on written advice of our counsel or
    accountants, on information provided by holders of depositary
    receipts or other persons believed in good faith to be competent
    to give this information. We also may rely on documents believed
    to be genuine and to have been signed or presented by the proper
    party or parties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Resignation and
    Removal of Depositary</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The depositary may resign at any time by delivering to us notice
    of its election to do so. At any time we may remove the
    depositary. The resignation or removal will take effect after a
    successor depositary is appointed and has accepted the
    appointment. We must appoint a successor within 60&#160;days
    after delivery of the notice for resignation or removal and the
    successor depositary must be a bank or trust company having its
    principal office in the United States and having a combined
    capital and surplus of at least $150,000,000.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Federal Income
    Tax Consequences</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Owners of the depositary shares will be treated for federal
    income tax purposes as if they were owners of the preferred
    stock underlying the depositary shares. Accordingly, the owners
    will be entitled to take into account for federal income tax
    purposes income and deductions to which they would be entitled
    if they were holders of the preferred stock. In addition:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    no gain or loss will be recognized for federal income tax
    purposes upon the withdrawal of preferred stock in exchange for
    depositary shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the tax basis of each share of preferred stock to an exchanging
    owner of depositary shares will, when exchanged, be the same as
    the aggregate tax basis of the depositary shares being
    exchanged;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the holding period for preferred stock in the hands of an
    exchanging owner of depositary shares will include the period
    during which that person owned the depositary shares.
</TD>
</TR>

</TABLE>
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Description of
    Warrants</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus describes the terms and provisions of the
    warrants. When we offer to sell warrants, we will describe the
    specific terms of the warrants and warrant agreement in a
    supplement to this prospectus. The prospectus supplement also
    will indicate whether the terms and provisions described in this
    prospectus apply to the warrants being offered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have summarized the material portions of the warrant
    agreement below. The warrant agreement will be filed with the
    SEC in connection with an offering of warrants. You should read
    the warrant agreement for the provisions that are important to
    you.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may issue warrants for the purchase of our debt securities,
    preferred stock or common stock. Warrants may be issued alone or
    together with debt securities, preferred stock or common stock
    offered by any prospectus supplement and may be attached to or
    separate from those securities. Each series of warrants will be
    issued under a separate warrant agreement to be entered into
    between us and a bank or trust company, as warrant agent. The
    warrant agent will act solely as our agent in connection with
    the warrants and will not assume any obligation or relationship
    of agency or trust for or with any holders or beneficial owners
    of warrants.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Debt
    Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prospectus supplement relating to a particular issue of
    warrants to issue debt securities will describe the terms of the
    debt warrants, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their title;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their offering price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their aggregate number;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation and terms of the debt securities that can be
    purchased when they are exercised;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation and terms of the debt securities that are issued
    with the warrants and the number of warrants issued with each
    debt security;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the date when they and any debt securities issued will be
    separately transferable;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the principal amount of debt securities that can be purchased
    when they are exercised and the purchase price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the date on which the right to exercise warrants begins and the
    date on which the right expires;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the minimum or maximum amount of warrants that may be exercised
    at any one time;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether they and the debt securities that may be issued when
    they are exercised will be issued in registered or bearer form;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    information about book-entry procedures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the currency or currency units in which the offering price and
    the exercise price are payable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a discussion of material United States federal income tax
    considerations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the antidilution provisions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the redemption or call provisions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Stock
    Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The prospectus supplement relating to any particular issue of
    warrants to issue common stock or preferred stock will describe
    the terms of the stock warrants, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="2%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their title;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their offering price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    their aggregate number;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation and terms of the common stock or preferred stock
    that can be purchased when they are exercised;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the designation and terms of the common stock or preferred stock
    that is issued and the number of warrants issued with shares of
    each common stock or preferred stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the date when they and any common stock or preferred stock
    issued will be separately transferable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of shares of common stock or preferred stock that can
    be purchased when they are exercised and the purchase price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the date on which the right to exercise them begins and the date
    on which the right expires;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the minimum or maximum amount that may be exercised at any one
    time;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the currency or currency units in which the offering price and
    the exercise price are payable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a discussion of material United States federal income tax
    considerations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the antidilution provisions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the redemption or call provisions.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Experts</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements and management&#146;s assessment of the
    effectiveness of internal control over financial reporting
    (which is included in Management&#146;s Report on Internal
    Control over Financial Reporting) incorporated in this
    Prospectus by reference to the Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended February&#160;3, 2007 have been so
    incorporated in reliance on the report of PricewaterhouseCoopers
    LLP, an independent registered public accounting firm, given on
    the authority of said firm as experts in auditing and accounting.
</DIV>
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Legal
    Matters</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the securities we are offering in this
    prospectus will be passed upon for us by Paul
    Heldman,&#160;Esq., Executive Vice President, Secretary and
    General Counsel of Kroger, and for any underwriters or agents by
    counsel named in the applicable prospectus supplement. As of
    November&#160;30, 2007, Mr.&#160;Heldman owned approximately
    233,329&#160;shares of Kroger common stock, and had options to
    acquire an additional 485,000&#160;shares.
</DIV>

<P align="center" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 83%; margin-left: 8%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="l34598akroger.gif" alt="[KROGER LOGO]">
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 11pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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