Kroger 2013 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 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

65
A฀Right฀granted฀under฀clause฀(a)฀of฀the฀preceding฀sentence฀is฀a฀Related฀Right.฀A฀Related฀Right฀may,฀in฀the฀
Committee’s฀discretion,฀apply฀to฀all฀or฀a฀portion฀of฀the฀Shares฀subject฀to฀the฀Related฀Option.฀
7.3฀ A฀Right฀may฀be฀exercised฀in฀whole฀or฀in฀part฀as฀provided฀in฀the฀Agreement,฀and,฀subject฀to฀the฀
provisions of the Agreement, entitles its Optionee to receive, without any payment to the Company (other
than฀required฀income฀tax฀withholding฀amounts),฀either฀cash฀or฀that฀number฀of฀Shares฀(equal฀to฀the฀highest฀
whole฀number฀of฀Shares),฀or฀a฀combination฀thereof,฀in฀an฀amount฀or฀having฀a฀Fair฀Market฀Value฀determined฀
as฀of฀the฀Date฀of฀Exercise฀not฀to฀exceed฀the฀number฀of฀Shares฀subject฀to฀the฀portion฀of฀the฀Right฀exercised฀
multiplied฀by฀an฀amount฀equal฀to฀the฀excess฀of฀(i)฀the฀Fair฀Market฀Value฀of฀a฀Share฀on฀the฀Date฀of฀Exercise฀
of฀the฀Right฀over฀(ii)฀either฀(A)฀the฀Fair฀Market฀Value฀of฀a฀Share฀on฀the฀Date฀of฀Grant฀of฀the฀Right฀if฀it฀is฀not฀a฀
Related฀Right,฀or฀(B)฀the฀Option฀Price฀as฀provided฀in฀the฀Related฀Option฀if฀the฀Right฀is฀a฀Related฀Right.฀
7.4฀ The฀ Right฀ Period฀ will฀ be฀ determined฀ by฀ the฀ Committee฀ and฀ specifically฀ set฀ forth฀ in฀ the฀
Agreement,฀provided,฀however฀--
฀ (a)฀ a฀Right฀may฀not฀be฀exercised฀before฀the฀expiration฀of฀six฀months฀from฀the฀Date฀of฀Grant฀
(except฀that฀this฀limitation฀need฀not฀apply฀in฀the฀event฀of฀the฀death฀or฀disability฀of฀the฀Optionee฀within฀the฀
six-month฀period);฀
฀ (b)฀ a฀Right฀will฀expire฀no฀later฀than฀the฀earlier฀of฀(i)฀ten฀years฀from฀the฀Date฀of฀Grant,฀or฀(ii)฀
in฀the฀case฀of฀a฀Related฀Right,฀the฀expiration฀of฀the฀Related฀Option;฀and฀
฀ (c)฀ a฀Right฀may฀be฀exercised฀only฀when฀the฀Fair฀Market฀Value฀of฀a฀Share฀exceeds฀either฀(i)฀
the฀Fair฀Market฀Value฀of฀a฀Share฀on฀the฀Date฀of฀Grant฀of฀the฀Right฀if฀it฀is฀not฀a฀Related฀Right,฀or฀(ii)฀the฀Option฀
Price as provided in the Related Option if the Right is a Related Right.
7.5฀ The฀exercise,฀in฀whole฀or฀in฀part,฀of฀a฀Related฀Right฀will฀cause฀a฀reduction฀in฀the฀number฀of฀
Shares฀subject฀to฀the฀Related฀Option฀equal฀to฀the฀number฀of฀Shares฀with฀respect฀to฀which฀the฀Related฀Right฀is฀
exercised.฀Similarly,฀the฀exercise,฀in฀whole฀or฀in฀part,฀of฀a฀Related฀Option฀will฀cause฀a฀reduction฀in฀the฀number฀
of฀Shares฀subject฀to฀the฀Related฀Right฀equal฀to฀the฀number฀of฀Shares฀with฀respect฀to฀which฀the฀Related฀Option฀
is exercised.
7.6฀ Rights฀granted฀under฀the฀Plan,฀to฀the฀extent฀determined฀by฀the฀Committee,฀will฀comply฀with฀
the฀requirements฀of฀Rule฀16b-3฀under฀the฀Exchange฀Act฀during฀the฀term฀of฀this฀Plan.฀Should฀any฀additional฀
provisions฀be฀necessary฀for฀this฀Article฀7฀to฀comply฀with฀the฀requirements฀of฀Rule฀16b-3฀or฀any฀other฀rules฀or฀
regulations,฀the฀Board฀may฀amend฀this฀Plan฀to฀delete,฀add฀to฀or฀modify฀the฀provisions฀of฀the฀Plan฀accordingly,฀
subject฀to฀the฀provisions฀of฀Article฀14,฀if฀applicable.฀The฀Company฀intends฀to฀comply,฀if฀and฀to฀the฀extent฀
applicable,฀with฀the฀requirements฀of฀Rule฀16b-3;฀however,฀the฀Company’s฀failure฀for฀any฀reason฀whatsoever฀
to฀ comply฀ with฀ such฀ requirements฀ will฀ not฀ impose฀ any฀ liability฀ on฀ the฀ Company฀ to฀ any฀ Optionee฀ or฀ any฀
other party.
7.7฀ To฀the฀ extent฀required฀by฀Rule฀16b-3฀under฀the฀ Exchange฀Act฀ or฀otherwise฀ provided฀in฀ the฀
Agreement, the Committee will have sole discretion to consent to or disapprove the election of any Optionee
to receive cash in full or partial settlement of a Right. In cases where an election of settlement in cash must
be฀consented฀to฀by฀the฀Committee,฀the฀Committee฀may฀consent฀to,฀or฀disapprove,฀such฀election฀at฀any฀time฀
after฀such฀election,฀or฀within฀such฀period฀for฀taking฀action฀as฀is฀specified฀in฀the฀election,฀and฀failure฀to฀give฀
consent฀will฀be฀disapproval.฀Consent฀may฀be฀given฀in฀whole฀or฀as฀to฀a฀portion฀of฀the฀Right฀surrendered฀by฀the฀
Optionee.฀If฀the฀election฀to฀receive฀cash฀is฀disapproved฀in฀whole฀or฀in฀part,฀the฀Right฀will฀be฀deemed฀to฀have฀
been฀exercised฀for฀Shares,฀or,฀if฀so฀specified฀in฀the฀notice฀of฀exercise฀and฀election,฀not฀to฀have฀been฀exercised฀
to the extent the election to receive cash is disapproved.
7.8฀ The฀maximum฀number฀of฀Shares฀with฀respect฀to฀which฀Rights฀may฀be฀granted฀to฀any฀Employee฀
or฀Director฀under฀this฀Plan฀during฀its฀term฀is฀3,750,000฀Shares.
7.9฀ Except฀in฀connection฀with฀a฀corporate฀transaction฀involving฀the฀company฀(including,฀without฀
limitation,฀ any฀ stock฀ dividend,฀ stock฀ split,฀ extraordinary฀ cash฀ dividend,฀ recapitalization,฀ reorganization,฀
merger,฀ consolidation,฀ split-up,฀ spin-off,฀ combination,฀ or฀ exchange฀ of฀ shares)฀ or฀ as฀ otherwise฀ permitted฀
pursuant฀to฀Article฀13฀or฀Article฀15,฀the฀exercise฀price฀of฀a฀Right฀as฀set฀forth฀on฀the฀Date฀of฀Grant฀will฀not฀