Etablissements Delhaize Freres et Cie Le Lion S.A. (DEG)

Defined Benefit Plans

Approximately 20% of Delhaize Group employees are covered by defined benefit plans.

Further, Delhaize Group operates in the US unfunded supplemental executive retirement plans (“SERP”) covering a limited number of executives of Food Lion, Hannaford and Kash n’ Karry. Benefits generally are based on average earnings, years of service and age at retirement. At the end of 2008, Delhaize Group significantly reduced the number of participants to the SERP operated by Food Lion in exchange for future contributions by the Company into a nonqualified deferred compensation plan. This reduction in number of participants qualified as a curtailment under IAS 19 and the Group recognized a net gain of USD 8 million (EUR 6 million) being recognized in “Selling, general and administrative expenses,” consisting of USD 12 (EUR 8 million) curtailment gain being offset by additional expenses in connection with the future contributions of USD 4 million (EUR 3 million).

F-44

Table of Contents

Defined Benefit Plans

Approximately 20% of Delhaize Group employees are covered by defined benefit plans.

Table of Contents

Defined Benefit Plans

Approximately 20% of Delhaize Group employees are covered by defined benefit plans.

Delhaize Belgium has a contributory defined benefit pension plan covering approximately 5% of its employees. The plan provides benefits to participants upon death or retirement based on a formula applied to the last annual salary of the associate before his/her retirement. Delhaize Group funds the plan based upon legal requirements and tax regulations. An insurance company guarantees a minimum return on plan assets. Delhaize Group bears the risk above this minimum guarantee.

Delhaize Group maintains a non-contributory defined benefit pension plan (funded plan) covering approximately 50% of Hannaford employees and supplemental executive retirement plans (unfunded plan) covering certain executives of Food Lion, Hannaford and Kash n’ Karry. Benefits generally are based on average earnings, years of service and age at retirement.

Alfa-Beta has an unfunded defined benefit post-employment plan. This plan relates to termination indemnities prescribed by Greek law, consisting of lump-sum compensation granted only in cases of normal retirement or termination of employment.

In addition, Hannaford and Kash n’ Karry provide certain health care and life insurance benefits for retired employees (“post-employment benefits”). Substantially all Hannaford employees and certain Kash n’ Karry employees may become eligible for these benefits. The post-employment health care plan is contributory for most participants with retiree contributions adjusted annually.

e. Defined Benefit Plans

Under IFRS, Delhaize Group accounts for defined benefit plans in accordance with IAS 19 “Employee Benefits”. At the date of transition to IFRS on January 1, 2003, Delhaize Group recognized all existing unrecognized actuarial gains and losses. After January 1, 2003 Delhaize Group elected to recognize actuarial gains and losses in full in the statement of recognized income and expense in the period in which they occur (see Note 3). Actuarial gains and losses are not recognized in profit or loss in subsequent periods. Under U.S. GAAP, a new statement was issued in September 2006: SFAS No. 158 “Employers’ Accounting for Defined Benefit Pension and Other Retirement Plans – an amendment of FASB Statements No. 87, 88, 106 and 132(R)”. SFAS No. 158 requires employers to recognize the funded status of a defined benefit plan as an asset or liability in its balance sheet, measured as the difference between the fair value of plan assets and the benefit obligation. In addition, SFAS No. 158 requires employers to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Amounts recognized in accumulated other comprehensive income are subsequently recognized as components of net periodic benefit cost pursuant to the recognition and amortization provisions of SFAS Nos. 87 and 106.

e. Defined Benefit Plans

Under IFRS, Delhaize Group accounts for defined benefit plans in accordance with IAS 19 “Employee Benefits”. At the date of transition to IFRS on January 1, 2003, Delhaize Group recognized all existing unrecognized actuarial gains and losses. After January 1, 2003 Delhaize Group elected to recognize actuarial gains and losses in full in the statement of recognized income and expense in the period in which they occur (see Note 3). Actuarial gains and losses are not recognized in profit or loss in subsequent periods. Under US GAAP, a new statement was issued in September 2006: SFAS No. 158 “Employers’ Accounting for Defined Benefit Pension and Other Retirment Plans – an amendment of FASB Statements No. 87, 88, 106 and 132(R).” SFAS 158 requires employers to recognized the funded status of a defined benefit plan as an asset or liability in its balance sheet, measured as the difference between the fair value of plan assets and the benefit obligation. In addition, SFAS 158 requires employers to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Amounts recognized in accumulated other comprehensive income are subsequently recognized as components of net periodic benefit cost pursuant to the recognition and amortization provisions of SFAS Nos. 87 and 106.

Defined Benefit Plans

Delhaize Belgium has a contributory defined benefit pension plan covering approximately 5% of its employees. The plan provides benefits to participants upon death or retirement based on a formula applied to the last annual salary of the associate before his/her retirement. Delhaize Group funds the plan based upon legal requirements and tax regulations. An insurance company guarantees a minimum return on plan assets. Delhaize Group bears the risk above this minimum guarantee.

Hannaford maintains a non-contributory defined benefit pension plan covering approximately 50% of its employees. The plan provides for payment of retirement benefits on the basis of employees’ length of service and earnings. Hannaford’s policy is to fund the plan based upon legal requirements and tax regulations.

Alfa-Beta has an unfunded defined benefit post-employment plan. This plan relates to termination indemnities prescribed by Greek law, consisting of lump-sum compensations granted only in cases of normal retirement or termination of employment.

In addition, Hannaford provides certain health care and life insurance benefits for retired employees (“post-retirement benefits”). Substantially all employees may become eligible for these benefits if they reach early or normal retirement age and accrue ten years of service while working for Hannaford. The post-retirement health care plan is contributory for most participants with retiree contributions adjusted annually. Life insurance benefits are not available for employees who retired after January 1, 1996.

F-36

Table of Contents

The change in the provision for defined benefit plans is as follows:

Defined Benefit Plans

Delhaize Belgium has a contributory defined benefit pension plan covering approximately 5% of its employees. The plan provides benefits to participants upon death or retirement based on a formula applied to the last annual salary of the associate before his/her retirement. Delhaize Group funds the plan based upon legal requirements and tax regulations. An insurance company guarantees a minimum return on plan assets. Delhaize Group bears the risk above this minimum guarantee.

Hannaford maintains a non-contributory defined benefit pension plan covering approximately 50% of its employees. The plan provides for payment of retirement benefits on the basis of employees’ length of service and earnings. Hannaford’s policy is to fund the plan based upon legal requirements and tax regulations.

Alfa-Beta has an unfunded defined benefit post-employment plan. This plan relates to termination indemnities prescribed by Greek law, consisting of lump-sum compensations granted only in cases of normal retirement or termination of employment.

In addition, Hannaford provides certain health care and life insurance benefits for retired employees (“post-retirement benefits”). Substantially all employees may become eligible for these benefits if they reach early or normal retirement age and accrue ten years of service while working for Hannaford. The post-retirement health care plan is contributory for most participants with retiree contributions adjusted annually. Life insurance benefits are not available for employees who retired after January 1, 1996.