Kroger 2013 Annual Report Download - page 65

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63
2. Purpose
The฀Plan฀is฀intended฀to฀assist฀in฀attracting฀and฀retaining฀Employees฀and฀Directors฀of฀outstanding฀ability฀
and to promote the identification of their interests with those of the shareholders of the Company.
3. Administration
The฀ Plan฀ will฀ be฀ administered฀ by฀ the฀ Committee.฀ In฀ addition฀ to฀ any฀ other฀ powers฀ granted฀ to฀ the฀
Committee,฀it฀will฀have฀the฀following฀powers,฀subject฀to฀the฀express฀provisions฀of฀the฀Plan:฀
3.1฀ to฀determine฀in฀its฀discretion฀the฀Employees฀to฀whom฀Options,฀Performance฀Units฀or฀Rights฀will฀
be฀granted,฀to฀whom฀Restricted฀Stock฀and฀Incentive฀Shares฀will฀be฀awarded,฀and฀those฀Employees฀eligible฀to฀
receive฀Cash฀Bonuses;฀the฀number฀of฀Shares฀to฀be฀subject฀to฀each฀Option,฀Right,฀Performance฀Unit,฀Restricted฀
Stock฀or฀Incentive฀ Share฀award,฀and฀ the฀ terms฀upon฀ which฀Options,฀ Rights฀or฀ Performance฀Units฀ may฀be฀
acquired฀and฀exercised฀and฀the฀terms฀and฀conditions฀of฀Restricted฀Stock฀and฀Incentive฀Share฀awards฀and฀Cash฀
Bonuses;฀
3.2฀ to฀determine฀all฀other฀terms฀and฀provisions฀of฀each฀Agreement,฀which฀need฀not฀be฀identical;฀
3.3 without limiting the generality of the foregoing, to provide in its discretion in an Agreement:
฀ (a)฀ for฀ an฀ agreement฀ by฀ the฀ Optionee฀ or฀ Grantee฀ to฀ render฀ services฀ to฀ the฀ Company฀
or฀a฀ Subsidiary฀ upon฀ such฀ terms฀and฀ conditions฀as฀ may฀be฀ specified฀in฀the฀ Agreement,฀ provided฀that฀ the฀
Committee฀will฀not฀have฀the฀power฀to฀commit฀the฀Company฀or฀any฀Subsidiary฀to฀employ฀or฀otherwise฀retain฀
any฀Optionee฀or฀Grantee;฀
฀ (b)฀ for฀restrictions฀on฀the฀transfer,฀sale฀or฀other฀disposition฀of฀Shares฀issued฀to฀the฀Optionee฀
upon฀the฀exercise฀of฀an฀Option,฀Right฀or฀Performance฀Unit,฀for฀other฀restrictions฀permitted฀by฀Article฀11฀with฀
respect฀to฀Restricted฀Stock฀or฀for฀conditions฀with฀respect฀to฀the฀issuance฀of฀Incentive฀Shares;฀
฀ (c)฀ for฀an฀agreement฀by฀the฀Optionee฀or฀Grantee฀to฀resell฀to฀the฀Company,฀under฀specified฀
conditions,฀Shares฀issued฀upon฀the฀exercise฀of฀an฀Option,฀Right฀or฀Performance฀Unit฀or฀awarded฀as฀Restricted฀
Stock฀or฀Incentive฀Shares;฀
฀ (d)฀ for฀the฀payment฀of฀the฀Option฀Price฀upon฀the฀exercise฀by฀an฀Employee฀or฀Director฀of฀
an฀Option฀otherwise฀than฀in฀cash,฀including฀without฀limitation฀by฀delivery฀of฀Common฀Shares฀(other฀than฀
Restricted฀Stock)฀valued฀at฀Fair฀Market฀Value฀on฀the฀Date฀of฀Exercise฀of฀the฀Option,฀or฀a฀combination฀of฀cash฀
and฀Shares;฀and฀
฀ (e)฀ for฀the฀deferral฀of฀receipt฀of฀amounts฀that฀otherwise฀would฀be฀distributed฀upon฀exercise฀
of฀a฀Performance฀Unit,฀the฀terms฀and฀conditions฀of฀any฀such฀deferral฀and฀any฀interest฀or฀dividend฀equivalent฀
or฀other฀payment฀that฀will฀accrue฀with฀respect฀to฀deferred฀distributions;฀
3.4฀ to฀construe฀and฀interpret฀the฀Agreements฀and฀the฀Plan;฀
3.5฀ to฀require,฀whether฀or฀not฀provided฀for฀in฀the฀pertinent฀Agreement,฀of฀any฀person฀exercising฀
an฀Option,฀Right฀or฀Performance฀Unit฀or฀acquiring฀Restricted฀Stock฀or฀Incentive฀Shares,฀at฀the฀time฀of฀such฀
exercise฀ or฀ acquisition,฀ the฀ making฀ of฀ any฀ representations฀ or฀ agreements฀ that฀ the฀ Committee฀ may฀ deem฀
necessary฀or฀advisable฀in฀order฀to฀comply฀with฀the฀securities฀laws฀of฀the฀United฀States฀or฀of฀any฀state;฀
3.6฀ to฀provide฀for฀satisfaction฀of฀an฀Optionee’s฀or฀Grantee’s฀tax฀liabilities฀arising฀in฀connection฀with฀
the฀Plan฀through,฀without฀limitation,฀retention฀by฀the฀Company฀of฀Common฀Shares฀otherwise฀issuable฀on฀
the฀exercise฀of฀an฀Option,฀Right฀or฀Performance฀Unit฀or฀pursuant฀to฀an฀award฀of฀Incentive฀Shares฀or฀through฀
delivery฀of฀Common฀Shares฀to฀the฀Company฀by฀the฀Optionee฀or฀Grantee฀under฀such฀terms฀and฀conditions฀as฀
the฀Committee฀deems฀appropriate;฀and฀
3.7฀ to฀ make฀ all฀ other฀ determinations฀ and฀ take฀ all฀ other฀ actions฀ necessary฀ or฀ advisable฀ for฀ the฀
administration of the Plan.
Any฀determinations฀or฀actions฀made฀or฀taken฀by฀the฀Committee฀pursuant฀to฀this฀Article฀will฀be฀binding฀
and final.