Document:

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                                                                    Exhibit 10.3

                     SECOND SUPPLEMENTAL WARRANT AGREEMENT

     SECOND SUPPLEMENTAL WARRANT AGREEMENT (the "Agreement") dated as of
May 27, 1999, between THE KROGER CO., an Ohio corporation (the "Company"), and
THE YUCAIPA COMPANIES, a California general partnership, or its registered
permitted assigns (the "Consultant").

     WHEREAS, Fred Meyer, Inc., a Delaware corporation ("Fred Meyer"), has
become a wholly-owned subsidiary of the Company as a result of the transactions
(collectively, the "Merger") contemplated in the Agreement and Plan of Merger
dated as of October 18, 1998 (the "Merger Agreement") by and between the
Company, Jobsite Holdings, Inc., a Delaware corporation, and Fred Meyer.

     WHEREAS, Smith's Food and Drug Centers, Inc., a Delaware corporation
("Smith's"), became a wholly-owned subsidiary of Fred Meyer as a result of the
transaction (the "Smith's Merger") contemplated in the Agreement and Plan of
Reorganization and Merger dated as of May 11, 1997, between Smith's and FM
Stores, Inc., a Delaware corporation and predecessor to Fred Meyer.

     WHEREAS, prior to the effective date of the Smith's Merger, Smith's was a
party to a Warrant Agreement dated May 23, 1996 (the "Warrant Agreement")
between Smith's and the Consultant pursuant to which Smith's issued 1,842,555
warrants to purchase an aggregate of 1,842,555 shares of Class C Common Stock,
$.01 par value per share, of Smith's.

     WHEREAS, upon consummation of the Smith's Merger, the Warrant Agreement
was supplemented pursuant to its terms and Fred Meyer became a party to a
Supplemental Warrant Agreement dated September 9, 1997 (the "First Supplement")
between Fred Meyer and the Consultant pursuant to which Fred Meyer issued
3,869,366 warrants to purchase an aggregate of 3,869,366 shares of common
stock, $.01 par value per share, of Fred Meyer (as adjusted to account for a
2-for-1 stock split subsequent to the effective date of the First Supplement).
Defined terms used herein and not otherwise defined herein have the meanings
set forth in the Warrant Agreement as supplemented by the First Supplement.

     WHEREAS, pursuant to the terms of the Merger Agreement, the Warrant
Agreement and the First Supplement, the Company is required to enter into a
supplemental warrant agreement to provide for the issuance of common stock
("Common Stock") of the Company upon exercise of the warrants subject to the
Warrant Agreement and the First Supplement.
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     NOW, THEREFORE, in consideration of the premises and the mutual agreements
set forth in this Agreement, the Warrant Agreement, the First Supplement and
the Merger Agreement, the parties hereto agree as follows:

     SECTION 1. The Warrant Agreement, as supplemented by the First Supplement,
is hereby amended such that, unless the context requires otherwise, the
following defined terms contained therein shall have the meanings set forth
below:

          (a) "Common Stock" shall mean and refer to the Common Stock of the
     Company.

          (b) "Company" shall mean and refer to The Kroger Co., an Ohio
     corporation.

          (c) "Holder(s)" shall mean and refer to the registered holder(s) of
     the Warrant Certificates or the New Warrant Certificates, as defined below.

          (d) "Merger Agreement" shall mean and refer to the Agreement and Plan
     of Merger dated as of October 18, 1998, by and between the Company, Jobsite
     Holdings, Inc. and Fred Meyer.

          (e) "Warrant Shares" shall mean and refer to the Common Stock of the
     Company issuable upon exercise of the Warrants.

          (f) "Warrants" shall mean and refer to the 3,869,366 warrants, as
     described herein, in the First Supplement and in the Warrant Agreement, to
     purchase an aggregate of 3,869,366 shares (subject to adjustment) of Common
     Stock of the Company, pursuant hereto and pursuant to the Merger Agreement.

     SECTION 2. Subject to the terms and conditions of the Warrant Agreement
and the First Supplement, the Company shall issue shares of its Common Stock as
set forth in Section 3 hereof to Holders of Warrants upon exercise of such
Warrants.

     SECTION 3. The Warrants shall be exercisable initially for an aggregate of
3,869,366 Warrant Shares at an Exercise Price of $23.80952 per share, subject
in each case to the adjustment provisions contained in the Warrant Agreement.

     SECTION 4. Upon tender and delivery to the Company by any Holder of Series
A Warrant Certificates or Series B Warrant Certificates (as defined in the
Warrant Agreement) or both and upon cancellation thereof, the Company shall
issue and deliver new warrant certificates ("New Warrant Certificates")
evidencing the Warrants of such tendering Holders. The New Warrant Certificates
shall reflect the amendments to the Warrant Agreement and the First
Supplement contained herein.

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Series A Warrant Certificates and Series B Warrant Certificates shall continue
to be valid evidence of the Warrants, and shall continue to be exercisable for
the Common Stock of the Company pursuant to the terms hereof and in the Warrant
Agreement, as supplemented by the First Supplement. The New Warrant
Certificates shall comply with and be subject to all of the terms and
conditions of the Warrant Agreement, as supplemented, applicable to the Warrant
Certificates.

     SECTION 5. Section 12 of the Warrant Agreement is hereby amended so that
notices shall be made as set forth therein to the Company at 1014 Vine Street,
Cincinnati, Ohio 45202, Attn: Chief Financial Officer, with a copy to the
General Counsel.

     SECTION 6. The Company hereby assumes all obligations of Fred Meyer under
the Warrant Agreement and the First Supplement thereto and agrees to be bound
by all of the provisions thereof, as amended by this Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, as of the day and year first above written.

                                   THE KROGER CO.

                                   By: /s/ Paul W. Heldman
                                      ------------------------------
                                   Name: Paul W. Heldman
                                   Title: Senior Vice President

                                   THE YUCAIPA COMPANIES

                                   By: /s/ Ronald W. Burkle
                                      ------------------------------
                                   Name: Ronald W. Burkle
                                   Title: Managing General Partner<PAGE>   1
                                                                   EXHIBIT 10.12

                  CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

As an executive associate of Limited Too, Inc. (the "Company"), I have access to
trade secrets and other confidential or proprietary information ("Confidential
Information") of the Company. I may also originate or develop Confidential
Information in connection with the performance of my duties with the Company. I
understand that all of such Confidential Information as well as any inventions,
designs or innovations that I conceive or devise from my use of the Company's
time, equipment, facilities and support services belong exclusively to the
Company, and that it may not be used for my personal benefit, the benefit of a
competitor, or for the benefit of any person or entity other than the Company.

THEREFORE, in consideration of special compensation, in the form of the 1999
Too, Inc. stock option award to receive options to acquire 24,000 shares of the
common stock of Too, Inc. pursuant to the terms of the agreement to be delivered
on or about the date that Limited Too becomes an independent company, and in
recognition of the highly competitive nature of the business conduct by the
Company, I agree as follows:

         1. I will at all times during my employment with the Company and
thereafter faithfully hold the Company's Confidential Information in the
strictest confidence, and I will use my best efforts and highest diligence to
guard against its disclosure to anyone other than as expressly required in the
performance of my duties to the Company. I understand that Confidential
Information includes, among other things, any information and materials
pertaining to products, designs, formulas, packaging or processes, and
developments or improvements relating to them; licensing, sourcing,
manufacturing, merchandising, packaging plans and techniques; advertising,
marketing and promotional plans and policies; distribution or sales plans and
methods; technical and business procedures or strategies; sales, profit or other
financial information; relationships between the Company and any of its
customers, suppliers or employees; stores and real estate; and the salaries,
compensation, performance history or any other personnel information relating to
employees of the Company. "Confidential Information" does not include
information that, now or in the future, is generally available to the public
(other than through improper disclosure by me) or information acquired from a
third party who had authority to disclose it.

         2. Upon my separation from the Company, regardless of the reason for my
separation, I will return to the Company all documents and other materials of
any kind that contain Confidential Information.

         3. If I leave the Company for any reason whatsoever, then for a period
of twelve (12) months after my separation from the Company, I will not directly
or indirectly solicit, induce or attempt to influence any associate to leave the
employment of the Company, nor will I in any way assist anyone else in doing so.
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         4. I understand that my employment with the Company is and at all times
shall be "at will," which means that either the Company or I may terminate my
employment at any time, for any reason or for no reason. However, if my
employment with the Company is terminated by the Company for reasons other than
for cause as defined below, I understand that the Company will continue to pay
me my weekly base salary for a period of fifty-two (52) weeks, minus the
deductions required by law and subject to a deduction for any salary or
compensation that I earn from other employment or self-employment during the
time period in question, regardless of when such amount is payable. Cause for
termination of my employment shall exist in the event I: (1) willfully fail to
perform my duties with the Company (other than a failure resulting from my
incapacity due to physical or mental illness); or (2) plead "guilty" or "no
contest" to or am convicted of an act which is defined as a felony under federal
or state law; or (3) engage in willful misconduct in bad faith which could
reasonably be expected to materially harm the Company's business or its
reputation.

         5. If I decide to resign my employment with the Company, I understand
the company requests that I provide a thirty (30) day prior written notice.

         6. If I leave the Company for any reason, I will not, for a period of
twelve (12) months after my separation from the Company, directly or indirectly,
work for or contribute to the efforts of any business organization that
competes, or plans to compete, with the Company or its products.

         7. This Agreement will be governed by and interpreted in accordance
with Ohio law.

Date:
     ------------------------------    -------------------------------
                                                   Sally Boyer

                                       LIMITED TOO, INC.

Date:                                  By:
     ------------------------------       ----------------------------
                                       Vice President, Human Resources

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