Kroger 2014 Annual Report Download - page 55

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53
2. Certain฀Company฀Charitable฀Contributions.฀Any฀charitable฀contribution,฀grant฀or฀endowment฀by฀
Kroger฀(or฀one฀of฀its฀foundations)฀to฀a฀charitable฀organization,฀foundation,฀university฀or฀other฀not฀
for฀profit฀organization฀at฀which฀a฀Related฀Person’s฀only฀relationship฀is฀as฀an฀employee฀(including฀
an฀executive฀officer)฀or฀as฀a฀director,฀if฀the฀aggregate฀amount฀involved฀does฀not฀exceed฀$250,000฀
or฀5฀percent,฀whichever฀is฀lesser,฀of฀the฀charitable฀organization’s฀latest฀publicly฀available฀annual฀
consolidated gross revenues.
3.฀ Transactions฀ where฀ all฀ Shareholders฀ Receive฀ Proportional฀ Benefits. Any transaction where the
Related฀Person’s฀interest฀arises฀solely฀from฀the฀ownership฀of฀Kroger฀common฀stock฀and฀all฀holders฀
of฀Kroger฀common฀stock฀received฀the฀same฀benefit฀on฀a฀pro฀rata฀basis.
4.฀ Executive฀Officer฀and฀Director฀Compensation.฀(a)฀Any฀employment฀by฀Kroger฀of฀an฀executive฀officer฀
if฀ the฀ executive฀ officer’s฀ compensation฀ is฀ required฀ to฀ be฀ reported฀ in฀ Kroger’s฀ proxy฀ statement,฀
(b)฀any฀employment฀by฀Kroger฀of฀an฀executive฀officer฀if฀the฀executive฀officer฀is฀not฀an฀immediate฀
family฀member฀of฀a฀Related฀Person฀and฀the฀Compensation฀Committee฀approved฀(or฀recommended฀
that฀the฀Board฀approve)฀the฀executive฀officer’s฀compensation,฀and฀(c)฀any฀compensation฀paid฀to฀a฀
director฀if฀the฀compensation฀is฀required฀to฀be฀reported฀in฀Kroger’s฀proxy฀statement.
5.฀ Other฀ Transactions.฀ (a)฀ Any฀ transaction฀ involving฀ a฀ Related฀ Person฀ where฀ the฀ rates฀ or฀ charges฀
involved฀are฀determined฀by฀competitive฀bids,฀(b)฀any฀transaction฀with฀a฀Related฀Person฀involving฀
the฀rendering฀of฀services฀as฀a฀common฀or฀contract฀carrier,฀or฀public฀utility,฀at฀rates฀or฀charges฀fixed฀
in฀conformity฀with฀ law฀ or฀ governmental฀ authority,฀or฀(c)฀ any฀transaction฀with฀a฀Related฀Person฀
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-approved฀under฀paragraph฀A฀of฀this฀policy,฀those฀transactions฀will฀be฀presented฀to฀the฀Committee฀for฀
approval฀at฀the฀next฀regular฀Committee฀meeting,฀or฀where฀it฀is฀not฀practicable฀or฀desirable฀to฀wait฀until฀the฀
next฀regular฀Committee฀meeting,฀to฀the฀Chair฀of฀the฀Committee฀(who฀will฀possess฀delegated฀authority฀to฀act฀
between฀Committee฀meetings)฀subject฀to฀ratification฀by฀the฀Committee฀at฀its฀next฀regular฀meeting.฀If฀advance฀
approval฀of฀a฀Related฀Person฀Transaction฀is฀not฀feasible,฀then฀the฀Related฀Person฀Transaction฀will฀be฀presented฀
to฀the฀Committee฀for฀ratification฀at฀the฀next฀regular฀Committee฀meeting,฀or฀where฀it฀is฀not฀practicable฀or฀
desirable฀to฀wait฀until฀the฀next฀regular฀Committee฀meeting,฀to฀the฀Chair฀of฀the฀Committee฀for฀ratification,฀
subject฀to฀further฀ratification฀by฀the฀Committee฀at฀its฀next฀regular฀meeting.
In฀connection฀with฀each฀regular฀Committee฀meeting,฀a฀summary฀of฀each฀new฀Related฀Person฀Transaction฀
deemed฀pre-approved฀pursuant฀to฀paragraphs฀A(1)฀and฀A(2)฀above฀will฀be฀provided฀to฀the฀Committee฀ for฀
its review.
If฀a฀Related฀Person฀Transaction฀will฀be฀ongoing,฀the฀Committee฀may฀establish฀guidelines฀for฀management฀
to฀follow฀in฀its฀ongoing฀dealings฀with฀the฀Related฀Person.฀Thereafter,฀the฀Committee,฀on฀at฀least฀an฀annual฀
basis,฀will฀review฀and฀assess฀ongoing฀relationships฀with฀the฀Related฀Person฀to฀see฀that฀they฀are฀in฀compliance฀
with฀the฀Committee’s฀guidelines฀and฀that฀the฀Related฀Person฀Transaction฀remains฀appropriate.
The฀Committee฀(or฀the฀Chair)฀will฀approve฀only฀those฀Related฀Person฀Transactions฀that฀are฀in,฀or฀are฀
not฀ inconsistent฀ with,฀ the฀ best฀ interests฀ of฀ Kroger฀ and฀ its฀ shareholders,฀ as฀ the฀ Committee฀ (or฀ the฀ Chair)฀
determines฀in฀good฀faith฀in฀accordance฀with฀its฀business฀judgment.
No฀director฀will฀participate฀in฀any฀discussion฀or฀approval฀of฀a฀Related฀Person฀Transaction฀for฀which฀he฀
or฀she,฀or฀an฀immediate฀family฀member฀(as฀defined฀above),฀is฀a฀Related฀Person฀except฀that฀the฀director฀will฀
provide฀all฀material฀information฀about฀the฀Related฀Person฀Transaction฀to฀the฀Committee.
C . D I S C L O S U R E
Kroger฀ will฀disclose฀ all฀ Related฀ Person฀ Transactions฀ in฀ Kroger’s฀ applicable฀ filings฀ as฀required฀ by฀ the฀
Securities฀Act฀of฀1933,฀the฀Securities฀Exchange฀Act฀of฀1934฀and฀related฀rules.