Petco Barking About Benefits Magazine Q3 2012

SPECIAL ISSUE: FUTURE & RETIREMENT SAVINGS

August 2012

Barking About Benefits

Petco 401(k) Plan for retirement bliss. Tax savings, FREE MONEY and other tail-wagging features. Page 2 bury it now… enjoy it later! Howmany bones will you need to retire? Page 6 Asset allocation, diversification and risk–oh my! Understanding the basics of investing. Page 10 investment types. Choose your breed. Page 11

A Quarterly Benefits Magazine for PETCO Associates

Simple Steps to a More Secure Financial Future

Dear Petco Associate:

Whether your retirement is just around the corner or a long way out, wouldn’t it be nice to know a nest egg is waiting for you? Financial security at retirement doesn’t happen by itself; it takes careful planning. By committing to a savings strategy and burying a few dollars each paycheck, you can help ensure that funds will be there when you need them. Petco’s 401(k) Plan is a great place to start. The sooner you enroll and the more you save, the faster your money will grow. This issue of Barking About Benefits is designed to help you plan for the future and the retirement you want. This issue is filled with useful information and simple steps to bring your retirement picture into focus. You’ll see how a disciplined savings approach can help you secure and enrich your retirement through tax advantages, free money in the form of company matching contributions, and a variety of investment options. You’ll also be introduced to online tools from Fidelity that can educate you on how much money you’ll need, and on investments that align with your future and retirement savings goals. If you’re eligible but not yet participating in our 401(k) Plan, now is the time to enroll. If you’re already participating in the 401(k) Plan, now may be a good time to review your strategy and make sure you are taking full advantage of this valuable company benefit.

Jeff Urry Vice President, Total Rewards

About This Magazine Barking About Benefits is a quarterly magazine for Petco associates designed to keep you informed about all of your Petco benefits that contribute to your Petco Total Rewards. Read this magazine to help plan for retirement with participation in the Petco’s 401(k). From plan highlights, to decision-making tools and enrollment procedures, you’ll find great information to help you plan for your long-term retirement savings goals.

Inside. Scoop

2 PETCO 401(K) PLAN FOR RETIREMENT BLISS. Tax savings, FREE MONEY and other tail-wagging features. 6 BURY IT NOW…ENJOY IT LATER. How many bones will you need to retire? 8 Sources of Retirement Income. To help feather your nest. 10 ASSET ALLOCATION, DIVERSIFICATION AND RISK —OH MY! Understand the basics of investing. 12 GOT QUESTIONS? A bowl full of answers to help you make the most of the 401(k) Plan.

Enrollment Quick Steps for the Petco 401(k) Plan If you are eligible*, enroll in the 401(k) Plan today and be steps closer to the purrfect retirement. 1. Go to Fidelity’s website at www.401k.com . 2. Set up your personal identification number (PIN). 3. Click on the link to enroll and make your contribution and investment elections. 4. Choose beneficiary(ies) to receive your account balance in the event of your death. If you have questions or need help before getting started, visit www.401k.com or call Fidelity at 1-800-835-5097.

* You are eligible to enroll in the Petco 401(k) Plan if you are at least age 21 and have worked one year of service with 1,000 or more hours.

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Petco 401(k) Plan for Retirement Bliss One of the best paths to retirement bliss, according to many financial planning experts, is participation in a company-sponsored 401(k) Plan. With the Petco 401(k) Plan, the idea is to bury your bones now so you can enjoy them later. When you save for retirement with a 401(k) Plan, you brighten your future and at the same time benefit from tax savings and company matching contributions.

401(k) Plan Tail—Wagging Features • Saving is easy with automatic payroll deductions. • You decide how much to contribute to the plan, up to IRS limits. • Your savings are deducted from your pretax pay, which lowers your current taxable income. • Your account grows tax-free until you start taking withdrawals. • Matching contributions from Petco help your account grow faster. • You decide how your savings are invested. • You can stop or change your plan contribution at any time by contacting Fidelity. Who is Eligible? All associates age 21 or older are eligible to join the Petco 401(k) Plan after one year of service in which you work 1,000 or more hours. You can join the plan at any time after meeting the eligibility requirements. You can enroll online through Fidelity Investments. See page one of this magazine for enrollment quick steps.

Save with Pretax Contributions Through automatic payroll deduction, you may contribute between 1% and 60% of your eligible pay on a pretax basis, up to the annual IRS dollar limit. (For 2012, the dollar limit is $17,000.) Pretax means the money you save is deposited into your 401(k) account lowering your taxable income. Since there’s no tax bite, the cash you would typically pay toward taxes goes into your retirement savings account instead. How much should you save? As much as you can! The more you save, the faster your account balance will grow. And if you save at least 6% of your pay (3% for Directors and above), you will maximize Petco’s matching contributions added to your account. Also, if you make the maximum contribution to your plan account, and you’re 50 years of age or older during the calendar year, you can make an additional “catch- up” contribution of $5,500 in 2012. If you’re nearing retirement and can stretch your budget, the catch-up contribution is a wise investment for your future.

Pay Less Taxes with Pretax Savings Saving money with pretax dollars lowers the amount of tax you will pay. Here’s an example that shows the benefit of pretax saving. The example assumes an associate annual salary of $25,000, a 6% pretax contribution to the 401(k) Plan and a 25% tax rate.

6% Contribution

No Contribution

Annual Pay

$25,000

$25,000

401(k) Plan Pretax Contributions

$1,500

$0

Taxable Income

$23,500

$25,000

Taxes (assuming 25% tax bracket)

$5,875

$6,250

Saved for retirement

$1,500

$0

Tax Savings

$6,250 – $5,875 = $375

$0

2

$

Free Money

$

Free Money

Petco Matching Contributions Paws down, matching contributions are the best thing since catnip. A matching contribution is “free money” that Petco adds to your account each pay period as long as you make a contribution to your 401(k) account yourself. Petco will match $0.50 of every dollar you contribute up to 6% of pay (3% for Directors and above). This means if you have a salary of $25,000 and contribute 6% to your 401(k) account, you’ll receive a $750 matching contribution from Petco. Be sure to contribute at least 6% of your pay (3% for Directors and above) to the plan to get the full matching contribution from Petco.

Vesting—You Own It! Simply put, vesting means ownership. You always own 100% of your contributions, any rollover amounts, and any investment earnings. This means if you leave Petco or retire, the full value of your savings, rollovers and investment earnings will be paid to you. You earn ownership of company matching contributions at a rate of 20% per year, so after 5 years you are fully vested in Petco matching contributions.

Years of Vesting Service

Percentage Vested in Petco’s Matching Contributions

Less than 1 year

0%

1 year

20%

Here’s Help

2 years

40%

Try Fidelity’s take-home pay calculator to help plan your budget and determine how much you can invest in the 401(k) Plan. Go to www.401k.com in the Guidance & Retirement section under Tools & Calculators .

3 years

60%

4 years

80%

5+ years

100%

The Importance of Starting Early The sooner you start saving, the faster your account balance will grow. By saving just 6% of your pay each pay period, you can accumulate more money for the future and retirement than you might think possible – especially when you add Petco’s matching contribution.

Here’s an example of how the savings can add up showing the difference in saving for an associate who saves for 30 years and an associate who saves for 20 years. Our example assumes both associates have a starting salary of $30,000 and receive an annual increase of 3% each year. Both associates contribute 6% to the 401(k) Plan and Petco contributes a 3% matching contribution. The investment return is 8% compounded daily. Associate A begins saving in year 1. Associate B begins saving in year 10.

It Pays to Start Saving Sooner

after 30 years $452,670

+$286,940

n Associate A saves for 30 years n Associate B saves for 20 years

$450K

400K

350K

300K

after 20 years $165,730

250K

200K

150K

100K

50K

$0

1 year 10 years

20 years

30 years

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Investment Options Investing your 401(k) savings is important to help it grow, but how do you know which funds to choose? If you don’t feel comfortable building your own portfolio, you can take a hands-off approach and let the experts at Fidelity manage your investments for you. If you have the time and energy, you can take a hands-on approach and design your own investment strategy. Hands-off: Lifecycle Funds If you are a “hands-off” investor, Fidelity’s Lifecycle Funds may be a good fit for you. Lifecycle Funds offer a blend of stocks, bonds, and short-term investments within a single fund. They are designed for investors who don’t want to go through the process of picking several funds from the different investment types but who still want to diversify among stocks, bonds and short-term investments. Lifecycle Funds provide an automatic investment mix that becomes continually more conservative as time goes on. There’s no guesswork—just pick the fund with the year that’s closest to the year you plan to retire. Fidelity will manage things from there.

Target Date 2012 – 2014

Target Date 2015 – 2030

Target Date 2035 - 2055

• Fidelity Freedom 2010 Fund ®

• Fidelity Freedom 2015 Fund ® • Fidelity Freedom 2020 Fund ® • Fidelity Freedom 2025 Fund ® • Fidelity Freedom 2030 Fund ®

• Fidelity Freedom 2035 Fund ® • Fidelity Freedom 2040 Fund ® • Fidelity Freedom 2045 Fund ® • Fidelity Freedom 2050 Fund ® • Fidelity Freedom 2055 Fund ®

Target date investments are represented on a separate spectrum because they are generally designed for investors expecting to retire around the year indicated in each investment’s name. The investments are managed to gradually become more conservative over time. The investment risks of each target date investment change over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Hands-on: Standalone Funds If you are a “hands-on” do-it-yourself investor, you can access Fidelity’s research resources and use the fund selection tools to build your own portfolio. Think about your investment goals and then find the right balance between risk and the potential for reward. To learn more, log in to your account at www.401k.com and click on the Analysis tab near the top of your browser window.

The table below shows the investments offered through Petco’s 401(k).

Standalone Funds

Stocks • Dodge & Cox Stock Fund (large value) • Columbia Multi-Advisor Small Cap Value Fund Class A (small value)

• Fidelity Growth Company Fund (large growth)

• Spartan® 500 Index Fund—Investor Class (large blend) • CRM Mid Cap Value Fund Class Investor (mid blend) • Fidelity ® Low-Priced Stock Fund (mid blend)

• American Beacon International Equity Fund Investor Class (international/global equity)

Bonds • PIMCO Total Return Fund Administrative Class

Risk

• Neuberger Berman Genesis Fund Trust Class (small blend)

Short-term Investments • Managed Income Portfolio

Reward

4

Here’s Help

How does your investment mix align with your retirement savings goals? Should you be more aggressive? More balanced? More conservative? For answers, check out Fidelity’s portfolio review at www.401k.com to find your target asset mix or complete the Investor Profile Questionnaire. After you log in, click on Guidance & Retirement at the top of your browser window. Next click on Investment Guidance then click on Portfolio Review .

Tax Credit You may be eligible to receive a federal tax credit equal to 10%, 20% or 50% of your annual Petco 401(k) contribution, up to $1,000 if you file a: • Single tax return and have annual income of $28,250 or less; or a • Joint tax return and have annual income of $56,500 or less. For example, if you and your spouse had a combined income of $32,000, filed a joint tax return, and together contributed $4,000 ($2,000 each) to a 401(k) plan, you would be eligible for a 50% tax credit. This means you would pay $2,000 ($4,000 x 50%) less in income taxes for the year. Plan Withdrawals Because 401(k) Plans are designed for retirement savings, IRS regulations specify when you can receive funds from the Plan. Before age 59 1 / 2 , you

Loans Although the 401(k) Plan is intended to help feather your nest for the future, you may borrow from your account if funds are needed and the situation does not qualify as a severe financial hardship. Taking a loan may be a better option than taking a flat-out early withdrawal, which will generally result in a 10% penalty plus income tax on the amount you withdraw. Keep in mind, however, that taking a loan may be costly and may reduce the funds you ultimately have available at retirement. The most you can borrow from your account is 50% of your vested account balance, not to exceed $50,000. The minimum loan amount is $1,000. You pay the money back into your account, plus interest, through after-tax payroll deductions. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow in the future. You may have one loan outstanding at a time. The cost to initiate a loan is $75 and there is a quarterly maintenance fee of $6.25.

may withdraw funds only if you: • Terminate your employment • Become permanently disabled • Have a severe financial hardship

Any funds you receive before age 59 1 / 2 may be subject to current income taxes and possibly a financial penalty. If you leave Petco, you may avoid the financial penalty and defer paying taxes on your distribution by rolling it over into another employer’s qualified plan.

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Bury It Now…Enjoy It Later! Today’s economy is shaking the tails of canines and felines from Main Street to Wall Street. With higher prices for everything from gasoline to groceries, chances are saving for the future and retirement may not be pawticularly high on your priority list—but it should be. Even in a tough economy, a disciplined savings habit is the best way to reach your retirement savings goals. How Much Do You Need to Retire? Many financial experts say you’ll need 70% to 80% of your annual pre-retirement income (for each year in retirement) in order to enjoy a lifestyle similar to the one you have now. But will that be enough? The basic 70% to 80% formula assumes that you will save on work-related costs like commuting and clothing, as well as the expenses of raising children and paying your mortgage. But what if you have healthcare expenses, college tuition bills, credit card debt, or you’re still paying a mortgage? Every individual has unique circumstances that will affect their spending. The best way to predict your future and retirement income needs is to evaluate your personal situation and develop a plan that aligns with your lifestyle, budget and long-term goals. Here are things to consider: • When do you expect to retire? • How much money will you spend each year? • How long do you expect to live? • What income will you have from other sources, like Social Security?

• What is your expected return from your investments? • How can you protect your investments from inflation?

Some people will spend more than their current income during retirement and some will spend less. We’re now living longer than ever before, which means your retirement savings may need to last 25 to 30 years, or longer. In addition, Social Security and pension income (if you have any) may not be as dependable as it used to be. These are additional factors to consider when estimating your retirement income needs.

By taking the time to estimate how much you need to save based on your target retirement date, income, investments, inflation and personal circumstances, you’ll stand a better chance of retiring with your tail wagging.

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Inflation Impacts Purchasing Power

$28,414

10 Years

$38,724

20 Years

$52,042

30 Years

$69,940

40 Years

$0

$10K

$20K $30K $40K $50K $60K $70K Price in thousands

The price of a new car will dramatically increase over time due to inflation. Look at what a new car priced at $21,440 today will cost over the next 40 years, assuming 3% annual inflation.

Inflation Takes a Bite! Inflation is the increase in the cost of goods and services over time. It means that every year, the same amount of money buys less. Inflation can take a hefty bite out of your savings and purchasing power. That’s why experts say it’s critical to factor the effects of inflation into your long-term financial plan. Though the rate can vary greatly, the historical average inflation rate is around 3% per year. This means a can of cat food that costs $1.50 this year will likely cost around $1.55 next year, and around $1.59 the year after that. Inflation doubles the cost of goods and services approximately every 24 years, so in 2036, the can of cat food that costs $1.50 today could cost $3.00, or maybe more.

Here’s Help

Imagine what the bite of inflation could do to your hard-earned retirement savings. When you are living off retirement savings, inflation nibbles at your income. Your best defense is to be prepared, be smart and save like a dog. Estimate how many times your cost of living will double by the time you need your retirement money, and plan accordingly. Get an early start with Petco’s 401(k) Plan to get the power of compound interest and matching contributions. Also consider your investment strategy. If you are years from retirement, consider the pros and cons of investing in stocks and bonds.

For help calculating the amount of money you’ll need during your retirement years, try some of Fidelity’s online planning tools at www.401k.com . After you login, click on the Guidance and Retirement tab then click on Retirement Planning in the middle of your browser window.

Despite their volatility and risk, stocks and bonds may potentially deliver higher returns over the long-term, which could prevent inflation from biting your tail.

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Sources of Retirement Income to Help Feather Your Nest

Wondering where your retirement money will come from? If you’re counting on a big nest egg from Social Security, you may be barking up the wrong tree. The reality is, you have to feather your own nest for a secure, comfortable retirement. Although other income sources, like Social Security, pension benefits (if any), or part-time work may help fund your retirement piggy bank, the most significant part of your retirement income will come from your own personal savings and investments. That’s why it’s so important to develop a strategy for growing your retirement savings now, during your working years. By starting today and making regular contributions to Petco’s 401(k) Plan, your account balance can grow and grow, with compound interest tax-deferred. Plus, if you contribute at least 6% to the plan, you’ll receive an additional 3% of “free money” from Petco matching contributions.

How Much Security in Social Security? As a working tax payer, you pay 12.4% in taxes to Social Security. If you look at your pay stub, you will see the amount listed as FICA, which stands for “Federal Insurance Contributions Act.” Petco also pays payroll taxes to Social Security on your behalf. Once you retire and meet eligibility requirements, or if you become disabled, you, your spouse and your children may be entitled to monthly Social Security benefits. While Social Security may provide a modest foundation of income, it is not intended to fully fund your retirement years. You need personal savings with a balanced portfolio of investments to round out your retirement picture. To get an idea of what your Social Security benefit might be based on your earnings record, visit www.ssa.gov and click on “Estimate Your Retirement Benefits.” Find out what percent of your total retirement income Social Security may represent, and then modify your retirement savings strategy to make up the shortfall.

Check on Your Social Security Benefit

To find out what your estimated Social Security benefit will be, visit the Social Security Administration website at www.ssa.gov and get your Social Security Statement online. Or, you can call the Social Security Administration at 800-772-1213 and request a Social Security Statement.

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Sources of Retirement Income

1974 1

1999 2

2030 1 (estimated)

5%

19%

14%

18%

19%

42%

36%

22%

18%

44%

40%

2%

22%

1 Source: Research on Potential New Products for Retirement Income, FCNBD, May 2006; National Association for Variable Annuities (NAVA), “2005 Retirement Fears.” March 28, 2005. Survey of 1,001 nationally representative Americans age 18+, conducted by Kelton Research, January 2005. 2 Source: Social Security Administration. Income of the Aged Chartbook, 2008 . SSA Publication No 13-11727. Released: April 2010. Shares of aggregate income using the highest quintile, $55,889 per year and higher. Actual data was rounded to whole numbers. Total may not equal 100%. n Federal Income (e.g., Social Security) n Private Pension Plans (e.g. Defined Benefit Plans) n Income from Personal Assets (e.g. IRAs, 401(k) Plans) n Wages in Retirement n Other

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Asset Allocation, Diversification, and Risk—Oh My! To maximize the benefits of Petco’s 401(k) Plan, it’s important to understand the basics of investing. For starters, you want the right investment mix.

Regardless of your investment mix, there is always the risk that some of your investments will decrease in value. Consider your comfort level when it comes to taking risks with your money. Are you comfortable investing in stocks, which have a higher risk with the potential for higher rewards, or is your investment style more moderate or conservative? As you assess your risk tolerance, consider your time horizon. If your retirement is many years from now, some investment risk may be appropriate. Experts say the younger you are, the more aggressive your asset allocation should be, meaning more ownership of stocks. There are no guarantees, but a longer investment period may give you a chance to ride out the ups and downs of the market. Historically, stocks have outperformed bonds, short-term investments and inflation over the long term. As you near retirement, your asset allocation should be more conservative. To preserve the money you’ve saved, experts suggest investing in less-risky short- term investments such as money market funds, certificates of deposit (CDs), and Treasury bills.

This means investing your savings, or assets, in funds that offer the right balance between risk and reward to achieve your savings goals in your desired time frame. Your investment strategy should reflect your personal situation. It should align with your target retirement date, financial situation, and risk tolerance. Important! When building your portfolio, follow the advice of experts by applying the general principles of asset allocation and diversification. In other words, “Don’t put all your eggs in one basket!” Mix It Up! Asset allocation means spreading your investments across different types of investment categories, such as stocks, bonds, and short-term investments. This allows you to invest some assets for safety, some for income, and some for growth. Diversification means spreading your investments within each of the stock, bond, and short-term investment categories. Diversification helps protect you from large losses because even if some investments drop in value, other investments may perform well.

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Investment Types—Choose Your Breed Sure, you want to reach your retirement savings goal. But attaining this goal requires more than regular, old-fashioned saving. Deciding how to invest your retirement savings can be just as significant as how much you decide to save. That’s why it’s essential to gain an understanding of the basics in order to select the investment options in the 401(k) Plan that are best suited for your goals and risk tolerance. Each of the three main asset types – stocks, bonds and short-term investments – has distinct characteristics and may perform differently in response to changes in the market. When you develop your retirement savings portfolio, it’s important to keep these characteristics in mind:

Investment Type

Description

Benefits

Considerations

Stocks

While stocks generally do provide the most growth potential, they also tend to have the most risk. If you choose to invest in stocks, be sure you understand and are willing

Stocks or “equities” are ownership shares in a company. For example, if you buy 10,000 shares in a company with one million shares outstanding, you own one percent of the company. A bond is a type of security that pays a fixed amount of interest at regular intervals over a certain period of time. Bonds are essentially loans given to companies and government entities that promise to pay back the loan at a specified interest rate. Bonds may also be known as fixed-income investments. Short-term investments are relatively steady investment securities that can be easily converted to cash, such as Certificates of Deposit (CDs), Treasury bills, some money market accounts and some Stable Value Funds.

Historically, stocks have outperformed every other investment type over the long-term. Stocks can be a great way to add momentum to your savings. Bonds are usually less risky than stocks and can provide income that is more consistent. The full faith and credit of the U.S. Government or its agencies back federal government bonds. Other types of bonds are municipal and corporate bonds. Short-term investments are great for “temporary parking.” They offer access to your cash and typically modest growth.

to accept this risk, including a possibility of loss of money.

Bonds

Generally, bonds don’t provide the same level of growth that stocks can. While they’re considered a more moderate risk investment, there are risks to consider, such as the creditworthiness of bond issuers and interest rate fluctuations. If you choose to invest in bonds, be sure you understand and are willing to accept this risk, including a possibility of loss of money. Short-term investments alone are better than stuffing money in your mattress, but they typically don’t give you the kind of growth you may need to keep up with increases in the cost of living over the long term.

Short-term Investments

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Got Questions? When can I enroll in the 401(k) Plan?

Once you meet the eligibility requirements, you may enroll in the Plan at anytime and your contribution will be effective with the next applicable pay period. See the inside front cover of this magazine for instructions or simply follow the steps on the Fidelity website at www.401k.com . Once enrolled, can I stop participation or change my contribution amount? Yes, you may stop participation or change your contribution amount at any time by contacting Fidelity. Can I receive the Petco matching contributions if I do not contribute to the Plan? No. You must contribute to the Plan in order to receive matching contributions from Petco. To maximize Petco’s matching contributions, contribute at least 6% of your pay to the Plan (3% for Directors and above).

How are my savings and matching contributions invested?

You decide how to invest your savings and matching contributions. Fidelity provides information describing the investment choices that are available.

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How will I know how my account is doing? You can check your account balance online 24/7 through the Fidelity website at www.401k.com or by calling Fidelity at 1-800-835-5097 and speaking to a representative. Fidelity also sends quarterly statements to your home. Or, you can go green and sign up for quarterly electronic statements at www.401k.com . When can I withdraw funds from the Plan? You may withdraw funds after age 59 1 / 2 without penalty. Before age 59 1 / 2 , you may withdraw funds only if you leave Petco, become disabled or experience a financial hardship. Current taxes are due when funds are received. Any funds you receive before age 59 1 / 2 may be subject to a financial penalty. What is a financial hardship? The Plan considers a financial hardship to be a serious financial need, such as: certain medical expenses for you or a family member, the purchase of your primary residence, certain educational expenses, or expenses to prevent eviction from your home or the foreclosure of your home. Fidelity reviews requests for financial hardship withdrawals to ensure that they meet legal requirements. Can I use the money in my 401(k) for a loan? Yes. You can borrow up to 50% of your vested account balance, not to exceed $50,000. The minimum loan amount is $1,000. You pay the money back into your account, plus interest, through after-tax payroll deductions. A loan may be a better option than a hardship withdrawal because a hardship withdrawal will generally result in a 10% penalty plus income tax on the amount you withdraw. Where can I get more information? For more information about the 401(k) Plan, refer to your summary plan description or visit the Fidelity website at www.401k.com . You may also contact Fidelity at 1-800-835-5097.

This benefits magazine provides an overview of some of the benefit plans offered by Petco. It is not intended to be all-inclusive nor is it to be used as a Summary Plan Description. In the event of any conflict between this magazine and the official plan documents, the official documents will govern. Petco reserves the right to change or modify its benefit plans as appropriate without advance notice. This magazine does not represent a contract of employment. Summary Plan Descriptions (SPDs) for your Petco benefits are available in the Forms & Resources Library on mypetcobenefits.com . To request a printed SPD, call the Human Resources Service Center (HRSC) at 888-583-6044 (internal ext 5555) . English Bulldog photographs used in this Enrollment Guide provided by www.zeldawisdom.com .

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PRESORTED STD US POSTAGE PAID PERMIT #906 SAN DIEGO, CA

Petco Fulfillment Center c/o Action mail 230 North Market Place Escondido, CA 92029

Open Enrollment for Your 2013 Benefits Coming in October Last spring we told you that Petco will be changing its benefit plan year to align with the company’s fiscal year (February 1 – January 31) beginning

February 1, 2013. In order to make the transition, we implemented a short plan year from July 1, 2012 – January 31, 2013. We will be holding a second Open Enrollment period this year from October 22 through November 2 for your new benefit elections which begin on February 1, 2013. You will continue to have the same plans and coverage options as you have today with only a few benefit changes and changes to associate contribution amounts for some plans. So you only need to take action during the upcoming Open Enrollment period if you wish to enroll or make changes to your benefits, add or drop dependents or participate in flexible spending accounts. Watch for more information about Open Enrollment on PetNet and mailed to your home (based on the home address in our records) in October.