Kroger 2013 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2013 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

61
APPENDIX 1
THE KROGER CO.
2014 LONG-TERM INCENTIVE AND CASH BONUS PLAN
1. Definitions
In this Plan the following definitions will apply:
1.1฀ “Agreement”฀ means฀ a฀ written฀ instrument฀ implementing฀ a฀ grant฀ of฀ an฀ Option,฀ Right฀ or฀
Performance฀Unit,฀an฀award฀of฀Restricted฀Stock฀or฀Incentive฀Shares,฀or฀setting฀forth฀the฀terms฀of฀a฀Cash฀Bonus.
1.2฀ “Board”฀means฀the฀Board฀of฀Directors฀of฀the฀Company.
1.3฀ “Cash฀Bonus”฀means฀an฀ annual฀or฀long-term฀ bonus฀ awarded฀to฀a฀participant฀under฀ the฀Cash฀
Bonus฀ Program฀ and฀ determined฀ by฀ the฀ Committee฀ based฀ on฀ performance฀ measured฀ against฀ Performance฀
Goals฀established฀by฀the฀Committee.
1.4฀ “Cash฀Bonus฀Program”฀means฀that฀portion฀of฀the฀Plan฀under฀which฀a฀participant฀is฀awarded฀a฀
Cash฀Bonus.
1.5฀ “Code”฀means฀the฀Internal฀Revenue฀Code฀of฀1986,฀as฀amended.
1.6฀ “Committee”฀means฀ the฀committee฀appointed฀to฀administer฀each฀of฀the฀Programs฀ under฀the฀
Plan.฀For฀purposes฀of฀the฀Insider฀Program฀and฀the฀Cash฀Bonus฀Program฀the฀Committee฀will฀be฀a฀committee฀
of฀the฀Board฀meeting฀the฀standards฀of฀Rule฀16b-3(d)(1)฀under฀the฀Exchange฀Act,฀or฀any฀similar฀successor฀rule,฀
appointed฀by฀the฀Board฀to฀administer฀the฀Insider฀Program฀and฀the฀Cash฀Bonus฀Program,฀which฀initially฀will฀be฀
composed฀of฀those฀members฀of฀the฀Compensation฀Committee฀of฀the฀Board฀who฀qualify฀as฀“outside฀directors”฀
under฀Section฀162(m)฀of฀the฀Code.฀For฀purposes฀of฀the฀Non-Insider฀Program,฀the฀Committee฀will฀be฀the฀Stock฀
Option Committee.
1.7฀ “Company”฀means฀THE฀KROGER฀CO.
1.8฀ “Date฀of฀Exercise”฀means฀the฀date฀on฀which฀the฀Company฀receives฀notice฀of฀the฀exercise฀of฀an฀
Option,฀Right฀or฀Performance฀Unit฀in฀accordance฀with฀the฀terms฀of฀Article฀9.
1.9฀ “Date฀of฀Grant”฀means฀the฀date฀on฀which฀an฀Option,฀Right฀or฀Performance฀Unit฀is฀granted฀or฀
Restricted฀Stock฀or฀Incentive฀Shares฀are฀awarded฀by฀the฀Committee.
1.10฀ “Director”฀means฀a฀non-Employee฀member฀of฀the฀Board฀of฀the฀Company.
1.11฀ “Employee”฀means฀any฀person,฀excluding฀Directors,฀to฀whom฀awards฀or฀grants฀can฀be฀made฀
pursuant฀ to฀ the฀ securities฀ laws฀ of฀ the฀ United฀ State฀ and฀ to฀ whom฀ such฀ awards฀ or฀ grants฀ are฀ made฀ by฀ the฀
Committee.
1.12฀ “Exchange฀Act”฀means฀the฀Securities฀Exchange฀Act฀of฀1934,฀as฀amended.
1.13฀ “Fair฀ Market฀ Value”฀ of฀ a฀ Share฀ means฀ the฀ amount฀ equal฀ to฀ the฀ fair฀ market฀ value฀ of฀ a฀ Share฀
determined฀ pursuant฀ to฀ a฀ reasonable฀ method฀ adopted฀ by฀ the฀ Committee฀ in฀ good฀ faith฀ for฀ such฀ purpose.฀
Unless฀ otherwise฀ provided฀ in฀ an฀ Agreement฀ to฀ the฀ contrary,฀ the฀ Fair฀ Market฀ Value฀ of฀ a฀ Share฀ will฀ be฀ the฀
closing฀price฀on฀the฀date฀of฀determination฀on฀the฀New฀York฀Stock฀Exchange--Composite฀Transactions,฀or฀if฀no฀
sales are made on such date, on the most recent prior date for which sales are reported.
1.14฀ “Grantee”฀ means฀ an฀ Employee฀ or฀ a฀ Director฀ to฀ whom฀ Restricted฀ Stock฀ has฀ been฀ awarded฀
pursuant฀to฀Article฀11฀or฀to฀whom฀Incentive฀Shares฀have฀been฀awarded฀pursuant฀to฀Article฀12.
1.15฀ “Incentive฀Share”฀means฀a฀Share฀awarded฀pursuant฀to฀Article฀12.
1.16฀ “Insider”฀means฀an฀officer฀of฀the฀Company฀subject฀to฀Section฀16(a)฀of฀the฀Exchange฀Act.
1.17฀ “Insider฀Program”฀means฀that฀portion฀of฀the฀Plan฀under฀which฀grants฀or฀awards฀are฀made฀to฀
Insiders and Directors.