Kroger 2014 Annual Report Download - page 55
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2. CertainCompanyCharitableContributions.Anycharitablecontribution,grantorendowmentby
Kroger(oroneofitsfoundations)toacharitableorganization,foundation,universityorothernot
forprofitorganizationatwhichaRelatedPerson’sonlyrelationshipisasanemployee(including
anexecutiveofficer)orasadirector,iftheaggregateamountinvolveddoesnotexceed$250,000
or5percent,whicheverislesser,ofthecharitableorganization’slatestpubliclyavailableannual
consolidated gross revenues.
3. Transactions where all Shareholders Receive Proportional Benefits. Any transaction where the
RelatedPerson’sinterestarisessolelyfromtheownershipofKrogercommonstockandallholders
ofKrogercommonstockreceivedthesamebenefitonaproratabasis.
4. ExecutiveOfficerandDirectorCompensation.(a)AnyemploymentbyKrogerofanexecutiveofficer
if the executive officer’s compensation is required to be reported in Kroger’s proxy statement,
(b)anyemploymentbyKrogerofanexecutiveofficeriftheexecutiveofficerisnotanimmediate
familymemberofaRelatedPersonandtheCompensationCommitteeapproved(orrecommended
thattheBoardapprove)theexecutiveofficer’scompensation,and(c)anycompensationpaidtoa
directorifthecompensationisrequiredtobereportedinKroger’sproxystatement.
5. Other Transactions. (a) Any transaction involving a Related Person where the rates or charges
involvedaredeterminedbycompetitivebids,(b)anytransactionwithaRelatedPersoninvolving
therenderingofservicesasacommonorcontractcarrier,orpublicutility,atratesorchargesfixed
inconformitywith law or governmental authority,or(c) anytransactionwithaRelatedPerson
involving services as a bank depositary of funds, transfer agent, registrar, trustee under a trust
indenture or similar services.
B . A U D I T C O M M I T T E E A P P R O V A L
In the event management becomes aware of any Related Person Transactions that are not deemed
pre-approvedunderparagraphAofthispolicy,thosetransactionswillbepresentedtotheCommitteefor
approvalatthenextregularCommitteemeeting,orwhereitisnotpracticableordesirabletowaituntilthe
nextregularCommitteemeeting,totheChairoftheCommittee(whowillpossessdelegatedauthoritytoact
betweenCommitteemeetings)subjecttoratificationbytheCommitteeatitsnextregularmeeting.Ifadvance
approvalofaRelatedPersonTransactionisnotfeasible,thentheRelatedPersonTransactionwillbepresented
totheCommitteeforratificationatthenextregularCommitteemeeting,orwhereitisnotpracticableor
desirabletowaituntilthenextregularCommitteemeeting,totheChairoftheCommitteeforratification,
subjecttofurtherratificationbytheCommitteeatitsnextregularmeeting.
InconnectionwitheachregularCommitteemeeting,asummaryofeachnewRelatedPersonTransaction
deemedpre-approvedpursuanttoparagraphsA(1)andA(2)abovewillbeprovidedtotheCommittee for
its review.
IfaRelatedPersonTransactionwillbeongoing,theCommitteemayestablishguidelinesformanagement
tofollowinitsongoingdealingswiththeRelatedPerson.Thereafter,theCommittee,onatleastanannual
basis,willreviewandassessongoingrelationshipswiththeRelatedPersontoseethattheyareincompliance
withtheCommittee’sguidelinesandthattheRelatedPersonTransactionremainsappropriate.
TheCommittee(ortheChair)willapproveonlythoseRelatedPersonTransactionsthatarein,orare
not inconsistent with, the best interests of Kroger and its shareholders, as the Committee (or the Chair)
determinesingoodfaithinaccordancewithitsbusinessjudgment.
NodirectorwillparticipateinanydiscussionorapprovalofaRelatedPersonTransactionforwhichhe
orshe,oranimmediatefamilymember(asdefinedabove),isaRelatedPersonexceptthatthedirectorwill
provideallmaterialinformationabouttheRelatedPersonTransactiontotheCommittee.
C . D I S C L O S U R E
Kroger willdisclose all Related Person Transactions in Kroger’s applicable filings asrequired by the
SecuritiesActof1933,theSecuritiesExchangeActof1934andrelatedrules.