Safeway (SWY)

Quarterly Financial Statements

7.    Meetings with Management, the Independent Auditor and the Internal Auditor.  The Committee shall review and discuss the quarterly financial statements with management and the independent auditor, including the Company’s disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In addition, the Chief Executive Officer, Chief Financial Officer or their designee(s) shall provide a report as to the Company’s financial condition, including, but not limited to any of the following: (i) reasons for material increases in expenses and liabilities, material decreases in revenues and earnings and material adjustments in reserve accounts or contingencies, and (ii) plans regarding negative trends and the success or failure of plans presented in the past. To the extent that any adjustment of a contingency reserve equals or exceeds $10 million, such adjustment will be specifically disclosed to the Committee. In addition, the Chief Financial Officer or Chief Accounting Officer shall review all significant changes in accounting policies or the adoption of new accounting pronouncements with the Committee.

Quarterly Financial Statements

7.    Meetings with Management, the Independent Auditor and the Internal Auditor. The Committee shall review and discuss the quarterly financial statements with management and the independent auditor, including the Company’s disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”