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62
1.18฀ “Non-Insider฀Program”฀means฀that฀portion฀of฀the฀Plan฀under฀which฀grants฀or฀awards฀are฀made฀
to Employees, excluding Insiders.
1.19฀ “Option”฀means฀a฀nonstatutory฀stock฀option฀granted฀under฀the฀Plan฀that฀does฀not฀qualify฀as฀an฀
incentive฀stock฀option฀under฀Section฀422฀of฀the฀Code.
1.20฀ “Option฀Period”฀means฀the฀period฀during฀which฀an฀Option฀may฀be฀exercised.
1.21฀ “Option฀Price”฀means฀the฀price฀per฀Share฀at฀which฀an฀Option฀may฀be฀exercised.฀The฀Option฀
Price฀will฀be฀determined฀by฀the฀Committee,฀but฀in฀no฀event฀will฀the฀Option฀Price฀of฀an฀Option฀be฀less฀than฀
the฀Fair฀Market฀Value฀per฀Share฀determined฀as฀of฀the฀Date฀of฀Grant.
1.22฀ “Optionee”฀means฀an฀Employee฀or฀Director฀to฀whom฀an฀Option,฀Right฀or฀Performance฀Unit฀has฀
been฀granted.
1.23฀ “Performance฀ Goals”฀ means฀ performance฀ goals฀ established฀ by฀ the฀ Committee฀ that฀ may฀ be฀
based฀ on:฀ (i)฀ earnings฀ or฀ earnings฀ per฀ share฀ of฀ Kroger,฀ a฀ unit฀ of฀ Kroger,฀ or฀ designated฀ projects;฀ (ii)฀ total฀
sales,฀identical฀sales,฀or฀comparable฀sales฀of฀Kroger,฀a฀unit฀of฀Kroger,฀or฀designated฀projects;฀(iii)฀cash฀flow;฀
(iv)฀cash฀flow฀from฀operations;฀(v)฀operating฀profit฀or฀income;฀(vi)฀net฀income;฀(vii)฀operating฀margin;฀(viii)฀net฀
income฀margin;฀(ix)฀return฀on฀net฀assets;฀(x)฀economic฀value฀added;฀(xi)฀return฀on฀total฀assets;฀(xii)฀return฀
on฀ common฀ equity;฀ (xiii)฀ return฀ on฀ total฀ or฀ invested฀ capital;฀ (xiv)฀ total฀ shareholder฀ return;฀ (xv)฀ revenue;฀
(xvi)฀ revenue฀ growth;฀ (xvii)฀ earnings฀ before฀ interest,฀ taxes,฀ depreciation฀ and฀ amortization฀ (“EBITDA”);฀
(xviii)฀ EBITDA฀ growth;฀ (xix)฀ funds฀ from฀ operations฀ per฀ share฀ and฀ per฀ share฀ growth;฀ (xx)฀ cash฀ available฀
for฀ distribution;฀ (xxi)฀ cash฀ available฀ for฀ distribution฀ per฀ share฀ and฀ per฀ share฀ growth;฀ (xxii)฀ share฀ price฀
performance฀on฀an฀absolute฀basis฀and฀relative฀to฀an฀index฀of฀earnings฀per฀share฀or฀improvements฀in฀Kroger’s฀
attainment฀of฀expense฀levels;฀(xxiii)฀reduction฀in฀operating฀costs฀as฀a฀percentage฀of฀sales;฀(xxiv)฀performance฀
in฀key฀categories;฀(xxv)฀implementing฀or฀completion฀of฀strategic฀initiatives฀or฀critical฀projects,฀and฀(xxvi)฀key฀
category฀performance฀as฀measured฀by฀the฀results฀of฀surveys฀of฀customers฀or฀associates;฀or฀any฀other฀objective฀
goals฀established฀by฀the฀Committee,฀and฀may฀be฀absolute฀in฀their฀terms฀or฀measured฀against฀or฀in฀relationship฀
to฀ other฀ companies฀ similarly฀ or฀ otherwise฀ situated.฀ Performance฀ goals฀ may฀ be฀ particular฀ to฀ an฀ employee฀
or฀the฀department,฀branch,฀Subsidiary฀or฀other฀division฀in฀which฀he฀or฀she฀works,฀or฀may฀be฀based฀on฀the฀
performance฀of฀the฀Company฀generally,฀and฀may฀cover฀such฀period฀as฀may฀be฀specified฀by฀the฀Committee.
1.24฀ “Performance฀ Unit”฀ means฀ a฀ performance฀ unit฀ granted฀ under฀ the฀ Plan฀ in฀ accordance฀ with฀
Article 8.
1.25฀ “Performance฀Unit฀Period”฀means฀the฀period฀during฀which฀a฀Performance฀Unit฀is฀outstanding.
1.26฀ “Plan”฀means฀THE฀KROGER฀CO.฀2014฀Long-Term฀Incentive฀and฀Cash฀Bonus฀Plan.
1.27฀ “Related฀Option”฀means฀the฀Option฀in฀connection฀with฀which฀a฀specified฀Right฀or฀Performance฀
Unit฀is฀granted.
1.28฀ “Related฀Performance฀Unit”฀means฀the฀Performance฀Unit฀granted฀in฀connection฀with฀a฀specified฀
Option.
1.29฀ “Related฀Right”฀means฀the฀Right฀granted฀in฀connection฀with฀a฀specified฀Option.
1.30฀ “Restricted฀Stock”฀means฀Shares฀awarded฀pursuant฀to฀Article฀11.
1.31฀ “Right”฀means฀a฀stock฀appreciation฀right฀granted฀under฀the฀Plan฀pursuant฀to฀Article฀7.
1.32฀ “Right฀Period”฀means฀the฀period฀during฀which฀a฀Right฀may฀be฀exercised.
1.33฀ “Share”฀means฀ an฀ authorized฀ but฀ unissued฀ common฀ share,฀ par฀ value฀ $1.00฀ per฀ share,฀ of฀ the฀
Company,฀or฀a฀reacquired฀previously฀issued฀common฀share.฀
1.34฀ “Stock฀ Option฀Committee”฀means฀ a฀ committee฀of฀three฀or฀more฀members฀ appointed฀ by฀ the฀
Chief฀Executive฀Officer฀of฀the฀Company฀to฀administer฀the฀Non-Insider฀Program,฀each฀of฀whom฀is฀ineligible฀to฀
receive฀grants฀or฀awards฀under฀the฀Non-Insider฀Program,฀and฀has฀been฀so฀ineligible฀for฀at฀least฀one฀year.
1.35฀ “Subsidiary”฀means฀a฀corporation฀at฀least฀50%฀of฀the฀total฀combined฀voting฀power฀of฀all฀classes฀
of฀stock฀of฀which฀is฀owned฀by฀the฀Company,฀either฀directly฀or฀through฀one฀or฀more฀other฀Subsidiaries.