Kroger 2013 Annual Report Download - page 50
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Notwithstanding the foregoing, the Audit Committee has reviewed the following types of transactions
andhasdeterminedthateachtypeoftransactionisdeemedtobepre-approved,eveniftheamountinvolved
exceeds $120,000.
1. Certain Transactions with Other Companies. Any transaction for property or services in the ordinary
course of business involving payments to or from another company at which a Related Person’s
onlyrelationshipisasanemployee(includinganexecutiveofficer),director,orbeneficialownerof
lessthan10%ofthatcompany’sshares,iftheaggregateamountinvolvedinanyfiscalyeardoesnot
exceed the greater of $1,000,000 or 2 percent of that company’s annual consolidated gross revenues.
2. CertainCompanyCharitableContributions.Anycharitablecontribution,grantorendowmentby
Kroger(oroneofitsfoundations)toacharitableorganization,foundation,universityorothernot
for profit organization at which a Related Person’s only relationship is as an employee (including
anexecutiveofficer)orasadirector,iftheaggregateamountinvolveddoesnotexceed$250,000
or5percent,whicheverislesser,ofthecharitableorganization’slatestpubliclyavailableannual
consolidated gross revenues.
3. Transactions where all Shareholders Receive Proportional Benefits. Any transaction where the
RelatedPerson’sinterestarisessolelyfromtheownershipofKrogercommonstockandallholders
ofKrogercommonstockreceivedthesamebenefitonaproratabasis.
4. Executive Officer and Director Compensation.(a)AnyemploymentbyKrogerofanexecutiveofficer
if the executive officer’s compensation is required to be reported in Kroger’s proxy statement,
(b)anyemploymentbyKrogerofanexecutiveofficeriftheexecutiveofficerisnotanimmediate
familymemberofaRelatedPersonandtheCompensationCommitteeapproved(orrecommended
thattheBoardapprove)theexecutiveofficer’scompensation,and(c)anycompensationpaidtoa
directorifthecompensationisrequiredtobereportedinKroger’sproxystatement.
5. Other Transactions. (a) Any transaction involving a Related Person where the rates or charges
involvedaredeterminedbycompetitivebids,(b)anytransactionwithaRelatedPersoninvolving
therenderingofservicesasacommonorcontractcarrier,orpublicutility,atratesorchargesfixed
inconformity withlaworgovernmental authority, or(c) anytransactionwithaRelatedPerson
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-approvedunderparagraphAofthispolicy,thosetransactionswillbepresentedtotheCommitteefor
approvalatthenextregularCommitteemeeting,orwhereitisnotpracticableordesirabletowaituntilthe
next regular Committee meeting, to the Chair of the Committee (who will possess delegated authority to act
betweenCommitteemeetings)subjecttoratificationbytheCommitteeatitsnextregularmeeting.Ifadvance
approvalofaRelatedPersonTransactionisnotfeasible,thentheRelatedPersonTransactionwillbepresented
totheCommitteeforratificationatthenextregularCommitteemeeting,orwhereitisnotpracticableor
desirabletowaituntilthenextregularCommitteemeeting,totheChairoftheCommitteeforratification,
subjecttofurtherratificationbytheCommitteeatitsnextregularmeeting.
In connection with each regular Committee meeting, a summary of each new Related Person Transaction
deemedpre-approvedpursuanttoparagraphs A(1)and A(2)abovewillbeprovidedtotheCommitteefor
its review.
IfaRelatedPersonTransactionwillbeongoing,theCommitteemayestablishguidelinesformanagement
to follow in its ongoing dealings with the Related Person. Thereafter, the Committee, on at least an annual
basis,willreviewandassessongoingrelationshipswiththeRelatedPersontoseethattheyareincompliance
with the Committee’s guidelines and that the Related Person Transaction remains appropriate.