Kroger 2013 Annual Report Download - page 70

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2014฀Long-Term฀Incentive฀and฀Cash฀Bonus฀Plan฀and฀an฀Agreement฀entered฀into฀
between฀the฀registered฀owner฀and฀The฀Kroger฀Co.฀Release฀from฀such฀terms฀and฀
conditions฀will฀be฀made฀only฀in฀accordance฀with฀the฀provisions฀of฀the฀Plan฀and฀
the฀Agreement,฀a฀copy฀of฀each฀of฀which฀is฀on฀file฀in฀the฀office฀of฀the฀Secretary฀of฀
The Kroger Co.
฀ (e)฀ the฀applicable฀period฀or฀periods฀of฀any฀terms,฀conditions฀or฀restrictions฀applicable฀to฀
the฀Restricted฀Stock,฀provided,฀however,฀that฀the฀Committee฀in฀its฀discretion฀may฀accelerate฀the฀expiration฀of฀
the฀applicable฀restriction฀period฀with฀respect฀to฀any฀part฀or฀all฀of฀the฀Shares฀awarded฀to฀a฀Grantee;฀and
฀ (f)฀ the฀terms฀and฀conditions฀upon฀which฀any฀restrictions฀upon฀Shares฀of฀Restricted฀Stock฀
awarded฀under฀ the฀Plan฀will฀lapse฀and฀new฀ certificates฀free฀of฀ the฀foregoing฀legend฀ will฀be฀issued฀to฀the฀
Grantee฀or฀his฀or฀her฀legal฀representative.฀
11.4฀ The฀Committee฀may฀include฀in฀an฀Agreement฀a฀requirement฀that฀in฀the฀event฀of฀a฀Grantee’s฀
termination฀of฀ employment฀for฀any฀reason฀prior฀to฀the฀ lapse฀of฀restrictions,฀all฀Shares฀of฀Restricted฀ Stock฀
will฀ be฀ forfeited฀ by฀ the฀ Grantee฀ to฀ the฀ Company฀ without฀ payment฀ of฀ any฀ consideration฀ by฀ the฀ Company,฀
and฀ neither฀the฀Grantee฀nor฀any฀ successors,฀heirs,฀assigns฀ or฀ personal฀representatives฀ of฀the฀ Grantee฀ will฀
thereafter฀have฀any฀further฀rights฀or฀interest฀in฀the฀Shares฀or฀certificates.฀
11.5฀ The฀maximum฀number฀of฀Shares฀of฀Restricted฀Stock฀that฀may฀be฀awarded฀to฀any฀Employee฀or฀
Director฀under฀this฀Plan฀during฀its฀term฀is฀3,750,000฀Shares.฀
12. Incentive Share Awards
12.1฀ The฀Committee฀is฀hereby฀authorized฀to฀award฀Incentive฀Shares฀to฀Employees฀and฀Directors.฀
12.2฀ Incentive฀Shares฀will฀be฀Shares฀that฀are฀issued฀at฀such฀times,฀subject฀to฀achievement฀of฀such฀
Performance฀ Goals฀ or฀ other฀ goals,฀ or฀ without฀ condition,฀ and฀ on฀ such฀ other฀ terms฀ and฀ conditions฀ as฀ the฀
Committee deems appropriate and specify in the Agreement relating thereto.
12.3฀ The฀maximum฀number฀of฀Shares฀of฀Incentive฀Shares฀that฀may฀be฀awarded฀to฀any฀Employee฀or฀
Director฀under฀this฀Plan฀during฀its฀term฀is฀3,750,000฀Shares.฀
13. Capital Adjustments
The฀ number฀ and฀ class฀ of฀ Shares฀ subject฀ to฀ each฀ outstanding฀ Option,฀ Right฀ or฀ Performance฀ Unit฀ or฀
Restricted฀Stock฀or฀Incentive฀Share฀award,฀the฀Option฀Price฀and฀the฀aggregate฀number฀and฀class฀of฀Shares฀for฀
which฀grants฀or฀awards฀thereafter฀may฀be฀made฀will฀be฀subject฀to฀such฀adjustment,฀if฀any,฀as฀the฀Committee฀in฀
its฀sole฀discretion฀deems฀appropriate฀to฀reflect฀such฀events฀as฀stock฀dividends,฀stock฀splits,฀adoption฀of฀stock฀
rights฀plans,฀recapitalizations,฀mergers,฀consolidations฀or฀reorganizations฀of฀or฀by฀the฀Company.฀
14. Termination or Amendment
฀ The฀Board฀may฀amend฀or฀terminate฀this฀Plan฀in฀any฀respect฀at฀any฀time.฀Board฀approval฀must฀
be฀ accompanied฀ by฀ (i)฀ shareholder฀ approval฀ in฀ those฀ cases฀ in฀ which฀ amendment฀ requires฀ shareholder฀
approval฀under฀applicable฀law฀or฀regulations฀or฀the฀requirements฀of฀the฀principal฀exchange฀or฀interdealer฀
quotation฀system฀on฀which฀the฀Shares฀are฀listed฀or฀quoted,฀and฀(ii)฀affected฀Optionee฀or฀Grantee฀approval฀
if the amendment or termination would adversely affect the holder’s rights under any outstanding grants or
awards.฀The฀Cash฀Bonus฀Program฀may฀be฀wholly฀or฀partially฀amended฀or฀otherwise฀modified,฀suspended฀or฀
terminated฀at฀any฀time฀or฀from฀time฀to฀time฀by฀the฀Committee฀or฀the฀Board.฀To฀the฀extent฀required฀by฀Section฀
162(m)฀of฀the฀Internal฀Revenue฀Code฀with฀respect฀to฀bonus฀awards฀that฀the฀Committee฀determines฀should฀
qualify฀as฀performance-based฀compensation฀as฀described฀in฀Section฀162(m)(4)(C),฀no฀action฀may฀modify฀the฀
performance฀criteria฀or฀bonus฀potentials฀after฀the฀commencement฀of฀the฀measurement฀period฀with฀respect฀
to฀which฀such฀bonus฀awards฀relate.