Kroger 2012 Annual Report Download - page 46

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44
5. Other Transactions.฀ (a)฀ Any฀ transaction฀ involving฀ a฀ Related฀ Person฀ where฀ the฀ rates฀ or฀ charges฀
involved฀are฀determined฀by฀competitive฀bids,฀(b)฀any฀transaction฀with฀a฀Related฀Person฀involving฀
the rendering of services as a common or contract carrier, or public utility, at rates or charges fixed
in฀conformity฀with฀law฀or฀ governmental฀authority,฀ or฀(c)฀any฀transaction฀with฀a฀Related฀Person฀
involving฀ services฀ as฀ a฀ bank฀ depositary฀ of฀ funds,฀ transfer฀ agent,฀ registrar,฀ trustee฀ under฀ a฀ trust฀
indenture or similar services.
B . A U D I T C O M M I T T E E A P P R O V A L
In the event management becomes aware of any Related Person Transactions that are not deemed
pre-approved under paragraph A of this policy, those transactions will be presented to the Committee for
approval at the next regular Committee meeting, or where it is not practicable or desirable to wait until the
next฀regular฀Committee฀meeting,฀to฀the฀Chair฀of฀the฀Committee฀(who฀will฀possess฀delegated฀authority฀to฀act฀
between฀Committee฀meetings)฀subject฀to฀ratification฀by฀the฀Committee฀at฀its฀next฀regular฀meeting.฀If฀advance฀
approval of a Related Person Transaction is not feasible, then the Related Person Transaction will be presented
to the Committee for ratification at the next regular Committee meeting, or where it is not practicable or
desirable to wait until the next regular Committee meeting, to the Chair of the Committee for ratification,
subject to further ratification by the Committee at its next regular meeting.
In connection with each regular Committee meeting, a summary of each new Related Person Transaction
deemed฀pre-approved฀pursuant฀to฀paragraphs฀A(1)฀and฀A(2)฀above฀will฀be฀provided฀to฀the฀Committee฀for฀its฀
review.
If a Related Person Transaction will be ongoing, the Committee may establish guidelines for management
to follow in its ongoing dealings with the Related Person. Thereafter, the Committee, on at least an annual
basis, will review and assess ongoing relationships with the Related Person to see that they are in compliance
with the Committee’s guidelines and that the Related Person Transaction remains appropriate.
The฀Committee฀(or฀the฀Chair)฀will฀approve฀only฀those฀Related฀Person฀Transactions฀that฀are฀in,฀or฀are฀
not฀ inconsistent฀ with,฀ the฀ best฀ interests฀ of฀ Kroger฀ and฀ its฀ shareholders,฀ as฀ the฀ Committee฀ (or฀ the฀ Chair)฀
determines in good faith in accordance with its business judgment.
No director will participate in any discussion or approval of a Related Person Transaction for which he
or฀she,฀or฀an฀immediate฀family฀member฀(as฀defined฀above),฀is฀a฀Related฀Person฀except฀that฀the฀director฀will฀
provide all material information about the Related Person Transaction to the Committee.
C . D I S C L O S U R E
Kroger will disclose all Related Person Transactions in Kroger’s applicable filings as required by the
Securities Act of 1933, the Securities Exchange Act of 1934 and related rules.