Document:

Split Dollar Life Insurance Agreement

 Exhibit 10.2 
  
 LIFE INSURANCE 
  
 ENDORSEMENT METHOD SPLIT DOLLAR PLAN 
  
 AGREEMENT 
  
 THIS AGREEMENT is made and entered into effective the 21st day of June, 2005,
by and between Greater Bay Bank N.A., a national association (the “Employer”), and James S. Westfall (the “Insured”), and replaces and restates any and all prior agreements and understandings on the subject hereof. This Agreement
applies to the following life insurance policies: 
  

			
	 Insurer:
	  	Security Life of Denver Insurance Company
	 	  	New York Life Insurance Company
	 	  	Lincoln Benefit Life Insurance Company
		
	 Policy Number:
	  	911572655
	 	  	56609164
	 	  	01N1207070
		
	 Policy Owner:
	  	Greater Bay Bank N.A.
		
	 Insured:
	  	James S. Westfall
		
	 Relationship of Insured to Policy Owner:
	  	Employee
		
	 Date of Policy:
	  	September 29, 2004
	 	  	September 29 2004
	 	  	September 29, 2004
		
	 Trust:
	  	Rabbi Trust for the Employee Supplemental Compensation Benefits Agreement and the Life Insurance Endorsement Method Split Dollar Plan Agreement

  
 The respective rights and duties of
the Employer and the Insured in the above-referenced policy shall be pursuant to the terms set forth below. This Agreement and the terms set forth below also shall apply to any other life insurance policy that the Employer designates as being
subject to this Agreement in addition to, substitution for or replacement of the above-referenced policy. 

	I.	DEFINITIONS 

  
 Refer to the policy contract for the definition of terms not otherwise defined in this Agreement. 
  

	II.	POLICY TITLE AND OWNERSHIP 

  
 Title and ownership of the policy shall reside in the Employer or in the Trustee for the Rabbi Trust for the Employee Supplemental Compensation Benefits
Agreement and the Life Insurance Endorsement Method Split Dollar Plan Agreement for the use of the Trust, the Insured and the Employer all in accordance with this Agreement. The Employer or the Trustee at the direction of the Employer may, to the
extent of the Employer’s or the Trust’s interest, exercise the right to borrow or withdraw on the policy cash values. Where the Employer and the Insured (or assignee, with the consent of the Insured) mutually agree to increase life
insurance coverage on the Insured under this Agreement either by the exercise of the right to increase the coverage under the subject policies or by the purchase of a new policy, then, in such event, the rights, duties and benefits of the parties to
such increased coverage shall be subject to the terms of this Agreement. The Employer or the Trustee at the direction of the Employer may sell, surrender or transfer ownership of the policy to the Insurer or any third party, provided that, in the
event of any such sale, surrender or transfer prior to the termination of this Agreement, the Employer or the Trustee at the direction of the Employer replaces the policy with a life insurance policy or policies on the life of the Insured providing
death benefits that are at least as much as that of the policy being replaced. The rights, duties and benefits of the Trust, the Employer and the Insured with respect to any such replacement policy shall be subject to the terms of this Agreement. At
the request of the Employer, the Insured shall take any and all actions that the Employer determines may be reasonably necessary for the sale, surrender or transfer of the policy; the issuance of a replacement policy or policies; and the subjecting
of the replacement policy or policies to the terms of this Agreement. 
  

	III.	BENEFICIARY DESIGNATION RIGHTS 

  
 The Insured (or assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive the Insured’s share of the proceeds
payable upon the death of the Insured, and to elect and change a payment option for such beneficiary, subject to any right or interest the Employer may have in such proceeds, as provided in this Agreement. 
  

	IV.	PREMIUM PAYMENT METHOD 

  
 The Employer or the Trustee at the direction of the Employer shall pay an amount equal to the planned premiums and any other premium payments that might
become necessary to keep the policy in force. If the policy contains a premium waiver provision, any such waived amounts shall be considered for all purposes of this Agreement to have been paid by the Employer. 
  

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	V.	TAXABLE BENEFIT 

  
 Annually the Insured will receive a taxable benefit equal to the assumed cost of insurance as required by the Internal Revenue Service. The Employer or
the Trustee at the direction of the Employer will report to the Insured the amount of imputed income each year on Form W-2 or its equivalent. 
  

	VI.	DIVISION OF DEATH PROCEEDS 

  
 Subject to Paragraphs VII and IX herein, the division of the death proceeds of the policy is as follows: 
  

	 	A.	If the Insured is employed by the Employer at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to an
amount equal to the lesser of One Million Five Hundred Thousand Dollars ($1,500,000) or one hundred percent (100%) of the net-at-risk insurance portion of the proceeds from the policy. The net-at-risk insurance portion is the total proceeds of the
policy less the cash value of the policy. 

  

	 	B.	If the Insured’s employment with the Employer has terminated by reason of the Insured’s Disability prior to the Insured’s death, the Insured’s
beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to the portion of the proceeds described in Subparagraph VI.A above. The term “Disability” means a medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period of not less than 12 months and which: 

  

	 	(a)	Renders the Participant unable to engage in any substantial gainful activity; or 

  

	 	(b)	Results in the Participant receiving income replacement benefits for a period of not less than three (3) months under any policy of long-term disability insurance maintained by a
Participating Company for the benefit of its employees. 

  

	 	C.	If the Insured’s employment with the Employer has terminated in connection with a Change in Control prior to the Insured’s death, the Insured’s
beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to the portion of the proceeds described in Subparagraph VI.A above. A termination is “in connection with a Change in Control” if, within two (2) years
following the occurrence of a Change in Control (as defined in Paragraph XV): (a) the Insured’s employment with the Employer is terminated by the Employer other than a termination for Cause; or (b) by reason of the Employer’s actions, any
adverse and material change occurs in the scope of the Employee’s position, responsibilities, duties, salary, benefits or location of employment; or (c) the Employer causes an event to 

  

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 occur which reasonably constitutes or results in a demotion, a significant diminution of responsibilities
or authority, or a constructive termination (by forcing a resignation or otherwise) of the Employee’s employment. 
  

	 	D.	If the Insured’s employment with the Employer has been terminated prior to the Insured’s death, either by the Employer without Cause and not in connection with a Change
in Control or by the Insured after the earlier of the Insured’s attaining age fifty-nine and one-half (59 1/2) or the date on which the Applicable Percentage (as defined below) becomes one hundred percent (100%), the Insured’s beneficiary(ies), designated in
accordance with Paragraph III, shall be entitled to the Applicable Percentage of the portion of the proceeds described in Subparagraph VI.A above. The term “Applicable Percentage” shall mean that percentage listed on Schedule “A”
attached hereto that is adjacent to the last calendar year end through which the Insured has remained in continuous active employment with the Employer immediately prior to the Insured’s termination of employment with the Employer following the
date of this Agreement. 

  

	 	E.	If the Insured’s employment with the Employer has terminated under circumstances that would not entitle the Insured’s beneficiary(ies) to any proceeds from the policy
pursuant to Subparagraph VI.A, B, C or D above and the Employer continues to maintain the policy after such termination (and the Employer shall have no obligation to maintain the policy after such termination), then the Insured’s
beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to an amount equal to the lesser of Fifty Thousand Dollars ($50,000) or one hundred percent (100%) of the net-at-risk insurance portion of the proceeds from the policy.
The net-at-risk insurance portion is the total proceeds of the policy less the cash value of the policy. 

  

	 	F.	The Employer shall be entitled to the remainder of such proceeds. 

  

	 	G.	The Employer and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total
proceeds, excluding any such interest. 

  

	VII.	DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY 

  
 The Employer or the Trust shall at all times be entitled to an amount equal to the policy’s cash value, as that term is defined in the policy
contract, less any policy loans and unpaid interest or cash withdrawals previously incurred by the Employer or the Trust and any applicable surrender charges. 
  

	VIII.	RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS 

  
 In the event the policy involves an endowment or annuity element, the Employer’s right and interest in any endowment proceeds or annuity benefits
shall be determined under the 
  

 4 

 provisions of this Agreement by regarding such endowment proceeds or the commuted value of such annuity
benefits as the policy’s cash value. Such endowment proceeds or annuity benefits shall be considered to be like death proceeds for the purposes of division under this Agreement. 
  

	IX.	TERMINATION OF AGREEMENT 

  
 This Agreement shall terminate upon the occurrence of any one of the following: 
  

	 	A.	The Insured voluntarily terminates his or her employment with the Employer, other than by reason of Disability or a termination in connection with a Change in Control, prior to the
earlier of (i) the date on which the Insured attains age fifty-nine and one-half (59 1/2) years and (ii) the date
on which the Applicable Percentage (as defined in VI.D above) becomes one hundred percent (100%). 

  

	 	B.	The Employer terminates the Insured’s employment with the Employer for Cause. The term “Cause” shall mean any of the following that has a material adverse effect upon
the Employer: (i) the Insured’s deliberate violation of any state or federal banking or securities law; or (ii) the Insured’s deliberate violation of the Bylaws, rules, policies or resolutions of the Employer; or (iii) the Insured’s
deliberate violation of the rules or regulations of the California Department of Financial Institutions, the Federal Deposit Insurance Corporation, the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency or any other
regulatory agency or governmental authority having jurisdiction over the Employer; or (iv) the Insured’s conviction of any felony; or (v) the Insured’s conviction of a crime involving moral turpitude, fraudulent conduct or dishonest
conduct. 

  
 Upon such termination, the Insured (or
assignee) shall have a ninety (90) day option to receive from the Employer or the Trustee at the direction of the Employer an absolute assignment of the policy in consideration of a cash payment to the Employer, whereupon this Agreement shall
terminate. Such cash payment referred to hereinabove shall be the greater of: 
  

	 	A.	The Employer’s and Trustee’s shares of the cash value of the policy on the date of such assignment, as defined in this Agreement; or 

  

	 	B.	The amount of the premiums that have been paid by the Employer or the Trustee at the direction of the Employer prior to the date of such assignment. 

  
 If, within said ninety (90) day period, the Insured fails to exercise said
option, fails to procure the entire aforestated cash payment, or dies, then the option shall terminate and the Insured (or assignee) agrees that all of the Insured’s rights, interest and claims in the policy shall terminate as of the date of
the termination of this Agreement. Notwithstanding the foregoing, if the Employer continues to maintain the policy after the termination of this Agreement (and the Employer shall have no obligation to maintain the 
  

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 policy after the termination of this Agreement), then, upon the Insured’s death, the Insured’s
beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to the portion of the proceeds described in Subparagraph VI.E above, and this Agreement shall continue in effect only for the limited purpose of providing such benefit.
The Insured expressly agrees that this Agreement shall constitute sufficient written notice to the Insured of the Insured’s option to receive an absolute assignment of the policy as set forth herein. 
  
 Except as provided above, this Agreement shall terminate upon distribution
of the death benefit proceeds in accordance with Paragraph VI above. 
  

	X.	INSURED’S OR ASSIGNEE’S ASSIGNMENT RIGHTS 

  
 The Insured may not, without the written consent of the Employer, assign to any individual, trust or other organization, any right, title or interest in
the subject policy nor any rights, options, privileges or duties created under this Agreement. 
  

	XI.	AGREEMENT BINDING UPON THE PARTIES 

  
 This Agreement shall bind the Insured and the Employer, their heirs, successors, personal representatives and assigns. 
  

	XII.	ERISA PROVISIONS  

  
 The following provisions are part of this Agreement and are intended to meet the requirements of the Employee Retirement Income Security Act of 1974
(“ERISA”): 
  

	 	A.	Named Fiduciary and Plan Administrator. 

  
 The “Named Fiduciary and Plan Administrator” of this Endorsement Method Split Dollar Agreement shall be Greater Bay Bancorp until its
resignation or removal by the Employer’s Board of Directors. As Named Fiduciary and Plan Administrator, Greater Bay Bancorp shall be responsible for the management, control, and administration of the Split Dollar Plan established herein. The
Named Fiduciary and Plan Administrator may delegate to others certain aspects of the management and operation responsibilities of the Plan, including the employment of advisors and the delegation of any ministerial duties to qualified individuals.

  

	 	B.	Funding Policy. 

  
 The funding policy for this Split Dollar Plan shall be to maintain the subject policy in force by paying, when due, all premiums required. 
  

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	 	C.	Basis of Payment of Benefits. 

  
 Direct payment by the Insurer is the basis of payment of benefits under this Agreement, with those benefits in turn being based on the payment of premiums
as provided in this Agreement. 
  

	 	D.	Claim Procedures. 

  
 Claim forms or claim information as to the subject policy can be obtained by contacting Benmark, Inc. (800-544-6079). When the Named Fiduciary or a
beneficiary has a claim which may be covered under the provisions described in the insurance policy, he or she should contact the office named above, and they will either complete a claim form and forward it to an authorized representative of the
Insurer or advise the Named Fiduciary or beneficiary what further requirements are necessary. The Insurer will evaluate and make a decision as to payment. If the claim is payable, a benefit check or checks will be issued in accordance with the terms
of this Agreement. 
  
 In the event that a claim is not eligible
under the policy, the Insurer will notify the Named Fiduciary or the beneficiary of the denial pursuant to the requirements under the terms of the policy. If the Named Fiduciary or the beneficiary is dissatisfied with the denial of the claim and
wishes to contest such claim denial, it should contact the office named above and they will assist in making an inquiry to the Insurer. All objections to the Insurer’s actions should be in writing and submitted to the office named above for
transmittal to the Insurer. 
  

	XIII.	GENDER 

  
 Whenever in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter
gender, whenever they should so apply. 
  

	XIV.	INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT 

  
 The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy
of this Agreement. Payment or other performance in accordance with the policy provisions shall fully discharge the Insurer from any and all liability. 
  

	XV.	CHANGE IN CONTROL 

  
 The term “Change in Control” shall mean the first to occur of any of the following events: 
  

	 	A.	Any “person” (as such term is used in sections 13 and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), 

 

 7 

 becomes the beneficial owner (as that term is used in section 13(d) of the Exchange Act), directly or
indirectly, of more than fifty percent (50%) of the capital stock of the Employer or of the Employer’s parent bank holding company Greater Bay Bancorp entitled to vote in the election of directors, other than (a) Greater Bay Bancorp or any
successor to Greater Bay Bancorp by means of a transaction that is not a Change in Control pursuant to clause (C) of this Paragraph XV, or (b) a group of two or more persons not (1) acting in concert for the purpose of acquiring, holding or
disposing of such stock or (2) otherwise required to file any form or report with any governmental agency or regulatory authority having jurisdiction over the Employer which requires the reporting of any change in control. The acquisition of
additional stock by any person who immediately prior to such acquisition already is the beneficial owner of more than fifty percent (50%) of the capital stock of the Employer entitled to vote in the election of directors is not a Change in Control.;

  

	 	B.	During any period of not more than twelve (12) consecutive months during which Greater Bay Bancorp continues in existence, not including any period prior to the effective date of
this Agreement, individuals who, at the beginning of such period, constitute the Board of Directors of Greater Bay Bancorp, and any new director (other than a director designated by a person who has entered into an agreement with Greater Bay Bancorp
to effect a transaction described in clause (A), (C) or (D) of this Paragraph XV) whose appointment to such Board of Directors or nomination for election to such Board of Directors was approved by a vote of a majority of the directors then still in
office, either were directors at the beginning of such period or whose appointment or nomination for election was previously so approved, cease for any reason to constitute at least a majority of such Board of Directors; 

  

	 	C.	The effective date of any consolidation or merger of the Employer or Greater Bay Bancorp (after all requisite shareholder, applicable regulatory and other approvals and consents
have been obtained), other than (a) a consolidation or merger of the Employer or Greater Bay Bancorp in which the holders of the voting capital stock of the Employer or Greater Bay Bancorp (whichever entity is participating in the consolidation or
merger) immediately prior to the consolidation or merger hold more than fifty percent (50%) of the voting capital stock of the surviving entity immediately after the consolidation or merger or (b) a consolidation or merger of the Employer with one
or more other persons that are related to the Employer immediately prior to the consolidation or merger. For purposes of this provision, persons are “related” if one of them owns, directly or indirectly, at least fifty percent (50%) of the
voting capital stock of the other or a third person owns, directly or indirectly, at least fifty percent (50%) of the voting capital stock of each of them. 

  

 8 

	 	D.	The sale or transfer of substantially all of the Employer’s assets to one or more persons that are not related (as defined in clause (C) of this Paragraph XV) to the Employer
immediately prior to the sale or transfer. 

  

	XVI.	AMENDMENT OR REVOCATION 

  
 It is agreed by and between the parties hereto that, during the lifetime of the Insured, this Agreement may be amended or revoked at any time or times, in
whole or in part, by the mutual written consent of the Insured and the Employer. 
  

	XVII.	EFFECTIVE DATE 

  
 The Effective Date of this Agreement shall be June 21, 2005. 
  

	XVIII.	SEVERABILITY AND INTERPRETATION 

  
 If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their
terms. Further, in the event that any provision is held to be overbroad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended.

  

	XIX.	APPLICABLE LAW 

  
 The validity and interpretation of this Agreement shall be governed by the laws of the State of California, other than those laws denominated choice of
law rules and except to the extent that state law is preempted by ERISA or other federal law, and, where applicable, shall be governed by the rules and regulations of the California Department of Financial Institutions, the Federal Deposit Insurance
Corporation, the Federal Reserve Board of Governors and the Office of the Comptroller of the Currency. 
  

 9 

 Executed at Palo Alto, California this 21st day of June, 2005. 
  

					
	 	 	GREATER BAY BANK N.A.
			
	 /s/ John M. Gatto

	 	By:	 	 /s/ Byron A. Scordelis

	 Witness
	 	 	 	Byron A. Scordelis
	 	 	 	 	President and Chief Executive Officer
			
	 /s/ Peggy Hiraoka

	 	 	 	 /s/ James S. Westfall

	 Witness
	 	 	 	James S. Westfall

  

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 SCHEDULE A 
  

			
	 End of Year
 Prior to Termination

	 	 Applicable
 Percentage

	 12/31/04
	 	0%
	 12/31/05
	 	0%
	 12/31/06
	 	0%
	 12/31/07
	 	0%
	 12/31/08
	 	0%
	 12/31/09
	 	20%
	 12/31/10
	 	40%
	 12/31/11
	 	60%
	 12/31/12
	 	80%
	 12/31/13
	 	100%

  
  

 11 

 BENEFICIARY DESIGNATION FORM 
 FOR THE LIFE INSURANCE ENDORSEMENT METHOD SPLIT 
 DOLLAR PLAN AGREEMENT

  

	I.	PRIMARY DESIGNATION 

 (You may refer to
the beneficiary designation information prior to completion.) 
  

	 	A.	Person(s) as a Primary Designation: 

 (Please indicate the percentage for each beneficiary.) 
  

					
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                           
	                                        
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)

	
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                             
	                                        
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)

	
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                             
	                                       
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)
	
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                             
	                                       
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)

  

	 	B.	Estate as a Primary Designation: 

  
 My Primary Beneficiary is The Estate of
                                        
as set forth in the last will and testament dated the      day of                     ,
             and any codicils thereto. 
  

	 	C.	Trust as a Primary Designation: 

  
 Name of
the Trust:                                     
                                        
                                        
                                        
     
  
 Execution Date of the Trust:
             /              /
                     
  
 Name of the
Trustee:                                      
                                        
                                        
                                        

 
 Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary): 
  

	
	 ___________________________________________________________________________________________________
 
	___________________________________________________________________________________________________

  
 Is this an Irrevocable
Life Insurance Trust?              Yes              No 
 (If yes and this designation is for a Split Dollar agreement, an Assignment of Rights form should be completed.) 
  

 12 

	II.	SECONDARY (CONTINGENT) DESIGNATION 

  

	 	A.	Person(s) as a Secondary (Contingent) Designation: 

 (Please indicate the percentage for each beneficiary.) 
  

					
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                           
	                                        
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)

	
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                             
	                                        
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)

	
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                             
	                                       
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)
	
	Name                                      
                                        
                                Relationship     
                                      /  
             %
	
	Address:                                     
                                        
                                        
                                        
                             
	                                       
     (Street)                                  
                                        
  (City)                (State)                   
 (Zip)

  

	 	B.	Estate as a Secondary (Contingent) Designation: 

  
 My Secondary Beneficiary is The Estate of
                                        
as set forth in my last will and testament dated the      day of                     ,
             and any codicils thereto. 
  

	 	C.	Trust as a Secondary (Contingent) Designation: 

  
 Name of
the Trust:                                     
                                        
                                        
                                        
     
  
 Execution Date of the Trust:
             /              /
                     
  
 Name of the
Trustee:                                      
                                        
                                        
                                        

 
 Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary): 
  

	
	 ___________________________________________________________________________________________________
 
	___________________________________________________________________________________________________

  
 All sums payable under
the Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement by reason of my death shall be paid to the Primary Beneficiary(ies), if he or she survives me, and if no Primary Beneficiary(ies) shall survive me, then to the
Secondary (Contingent) Beneficiary(ies). This beneficiary designation is valid until the participant notifies the Employer in writing. 
  

			
	  

	 	

	 James S. Westfall
	 	Date

  

 13The Kroger Co. 2005 Long-Term Incentive Plan

 EXHIBIT 4.2 
  

THE KROGER CO. 
 2005 LONG-TERM
INCENTIVE PLAN 
  
 1. Definitions 
  
 In this Plan the following definitions will apply: 
  
 1.1 “Agreement” means a written agreement implementing a grant of
an Option, Right or Performance Unit or an award of Restricted Stock or Incentive Shares. 
  
 1.2 “Board” means the Board of Directors of the Company. 
  
 1.3 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 1.4 “Committee” means the committee appointed to administer each of the Programs under the Plan. For purposes of
the Insider Program the Committee will be a committee of the Board meeting the standards of Rule 16b-3(d) (1) under the Exchange Act, or any similar successor rule, appointed by the Board to administer the Insider Program, which initially will be
composed of those members of the Compensation Committee of the Board who qualify as “outside directors” under Section 162(m) of the Code. For purposes of the Non-Insider Program, the Committee will be the Stock Option Committee.

  
 1.5 “Common Stock” means the common stock, par value
$1.00 per Share, of the Company. 
  
 1.6 “Company” means
THE KROGER CO. 
  
 1.7 “Date of Exercise” means the date
on which the Company receives notice of the exercise of an Option, Right or Performance Unit in accordance with the terms of Article 9. 
  
 1.8 “Date of Grant” means the date on which an Option, Right or Performance Unit is granted or Restricted Stock or Incentive Shares are awarded
by the Committee. 
  
 1.9 “Director” means a member of
the Board of the Company. 
  
 1.10 “Employee” means any
person determined by the Committee to be an employee of the Company or a Subsidiary. 
  
 1.11 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 1.12 “Fair Market Value” of a Share of Common Stock means the amount equal to the fair market value of a Share of Common Stock determined
pursuant to a reasonable method adopted by the Committee in good faith for such purpose. Unless otherwise provided in an Agreement to the contrary, the Fair Market Value of a Share will be the mean between the highest and lowest selling price on the
date of determination on the New York Stock Exchange—Composite Transactions, or if no sales are made on such date, on the most recent prior date for which sales are reported. 

 1.13 “Grantee” means an Employee or a Director to whom Restricted Stock has been awarded
pursuant to Article 11 or to whom Incentive Shares have been awarded pursuant to Article 12. 
  
 1.14 “Incentive Share” means a Share awarded pursuant to Article 12. 
  
 1.15 “Insider” means an officer of the Company subject to Section 16(a) of the Exchange Act. 
  
 1.16 “Insider Program” means that portion of the Plan under which
grants or awards are made to Insiders and Directors. 
  
 1.17
“Non-Insider Program” means that portion of the Plan under which grants or awards are made to Employees, excluding Insiders. 
  
 1.18 “Option” means a nonstatutory stock option granted under the Plan that does not qualify as an incentive stock option under Section 422 of
the Code. 
  
 1.19 “Option Period” means the period
during which an Option may be exercised. 
  
 1.20 “Option
Price” means the price per Share at which an Option may be exercised. The Option Price will be determined by the Committee, but in no event will the Option Price of an Option be less than the Fair Market Value per Share determined as of the
Date of Grant, and, except as otherwise permitted pursuant to Article 13 or Article 15, the Option Price of an Option as set forth on the Date of Grant will not be reduced during the term of the Option (i.e., Options will not be
“repriced”). 
  
 1.21 “Optionee” means an
Employee or Director to whom an Option, Right or Performance Unit has been granted. 
  
 1.22 “Performance Goals” means performance goals established by the Committee that may be based on earnings or earnings growth, sales, return on assets, equity or investment, regulatory compliance,
satisfactory internal or external audits, improvement of financial ratings, achievement of balance sheet, income statement or other financial statement objectives, or any other objective goals established by the Committee, and may be absolute in
their terms or measured against or in relationship to other companies similarly or otherwise situated. Performance goals may be particular to an employee or the department, branch, Subsidiary or other division in which he or she works, or may be
based on the performance of the Company generally, and may cover such period as may be specified by the Committee. 
  
 1.23 “Performance Unit” means a performance unit granted under the Plan in accordance with Article 8. 
  
 1.24 “Performance Unit Period” means the period during which a
Performance Unit may be exercised. 
  
 1.25 “Plan” means
THE KROGER CO. 2005 Long-Term Incentive Plan. 
  

 -2- 

 1.26 “Related Option” means the Option in connection with which, or by amendment to which, a
specified Right or Performance Unit is granted. 
  
 1.27
“Related Performance Unit” means the Performance Unit granted in connection with, or by amendment to, a specified Option. 
  
 1.28 “Related Right” means the Right granted in connection with, or by amendment to, a specified Option. 
  
 1.29 “Restricted Stock” means Shares awarded pursuant to Article
11. 
  
 1.30 “Right” means a stock appreciation right
granted under the Plan pursuant to Article 7. 
  
 1.31 “Right
Period” means the period during which a Right may be exercised. 
  
 1.32 “Share” means a share of authorized but unissued Common Stock or a reacquired share of issued Common Stock. 
  
 1.33 “Stock Option Committee” means a committee of three or more members appointed by the Chief Executive Officer of the Company to administer
the Non-Insider Program, each of whom is ineligible to receive grants or awards under the Non-Insider Program, and has been so ineligible for at least one year. 
  

1.34 “Subsidiary” means a corporation at least 50% of the total combined voting power of all classes of stock of which is owned by the
Company, either directly or through one or more other Subsidiaries. 
  
 2.
Purpose 
  
 The Plan is intended to assist in attracting and
retaining Employees and Directors of outstanding ability and to promote the identification of their interests with those of the shareholders of the Company. 
  
 3. Administration 
  
 The Plan will be administered by the Committee. In addition to any other powers granted to the Committee, it will have the following powers, subject to
the express provisions of the Plan: 
  
 3.1 to determine in its
discretion the Employees to whom Options, Performance Units or Rights will be granted and to whom Restricted Stock and Incentive Shares will be awarded, the number of Shares to be subject to each Option, Right, Performance Unit, Restricted Stock or
Incentive Share award, and the terms upon which Options, Rights or Performance Units may be acquired and exercised and the terms and conditions of Restricted Stock and Incentive Share awards; 
  
 3.2 to determine all other terms and provisions of each Agreement, which need
not be identical; 
  

 -3- 

 3.3 without limiting the generality of the foregoing, to provide in its discretion in an Agreement:

  
 (a) for an agreement by the Optionee or Grantee to render
services to the Company or a Subsidiary upon such terms and conditions as may be specified in the Agreement, provided that the Committee will not have the power to commit the Company or any Subsidiary to employ or otherwise retain any Optionee or
Grantee; 
  
 (b) for restrictions on the transfer, sale or other
disposition of Shares issued to the Optionee upon the exercise of an Option, Right or Performance Unit, for other restrictions permitted by Article 11 with respect to Restricted Stock or for conditions with respect to the issuance of Incentive
Shares; 
  
 (c) for an agreement by the Optionee or Grantee to
resell to the Company, under specified conditions, Shares issued upon the exercise of an Option, Right or Performance Unit or awarded as Restricted Stock or Incentive Shares; 
  
 (d) for the payment of the Option Price upon the exercise by an Employee or Director of an Option otherwise than in cash,
including without limitation by delivery of shares of Common Stock (other than Restricted Stock) valued at Fair Market Value on the Date of Exercise of the Option, or a combination of cash and shares of Common Stock; and 
  
 (e) for the deferral of receipt of amounts that otherwise would be
distributed upon exercise of a Performance Unit, the terms and conditions of any such deferral and any interest or dividend equivalent or other payment that will accrue with respect to deferred distributions; 
  
 3.4 to construe and interpret the Agreements and the Plan; 
  
 3.5 to require, whether or not provided for in the pertinent Agreement, of
any person exercising an Option, Right or Performance Unit or acquiring Restricted Stock or Incentive Shares, at the time of such exercise or acquisition, the making of any representations or agreements that the Committee may deem necessary or
advisable in order to comply with the securities laws of the United States or of any state; 
  
 3.6 to provide for satisfaction of an Optionee’s or Grantee’s tax liabilities arising in connection with the Plan through, without limitation, retention by the Company of shares of Common Stock otherwise
issuable on the exercise of an Option, Right or Performance Unit or pursuant to an award of Incentive Shares or through delivery of Common Stock to the Company by the Optionee or Grantee under such terms and conditions as the Committee deems
appropriate; and 
  
 3.7 to make all other determinations and take
all other actions necessary or advisable for the administration of the Plan. 
  
 Any determinations or actions made or taken by the Committee pursuant to this Article will be binding and final. 
  

 -4- 

 4. Eligibility 
  
 Options, Rights, Performance Units, Restricted Stock and Incentive Shares may be granted or awarded only to Employees and Directors. In no event may any
participant receive awards and grants totaling more than 3,000,000 Shares in the aggregate under this Plan. 
  
 5. Stock Subject to the Plan 
  
 5.1 The maximum number of Shares that may be issued under the Plan is 20,000,000 Shares. Except as otherwise provided in the following sentence, the maximum number of Shares that may be issued as Restricted Stock or Incentive Shares under
the Plan is 8,000,000 Shares in the aggregate. Notwithstanding the foregoing, the Committee for the Insider Program may increase the number of Shares that may be issued as Restricted Stock or Incentive Shares to an amount in excess of 8,000,000
Shares, provided that for each such Share in excess of 8,000,000 Shares that are issued as Restricted Stock or Incentive Shares, in the aggregate, the number of Shares that may be issued under the Plan will be reduced by four Shares. In addition to
the decisions that it makes in administering the Insider Program, annually the Committee for the Insider Program will approve the number of Shares to be granted under the Non-Insider Program for that fiscal year. 
  
 5.2 If an Option, Right or Performance Unit expires or terminates for any
reason (other than termination by virtue of the exercise of a Related Option, Related Right or a Related Performance Unit, as the case may be) without having been fully exercised, if Shares of Restricted Stock are forfeited or if Incentive Shares
are not issued or are forfeited, the unissued or forfeited Shares that had been subject to the Agreement relating thereto will become available for the grant of other Options, Rights and Performance Units or for the award of additional Restricted
Stock or Incentive Shares, provided that in the case of forfeited Shares, the Grantee has received no dividends prior to forfeiture with respect to such Shares. 
  

5.3 The Shares issued upon the exercise of a Right or Performance Unit (or, if cash is payable in connection with such exercise, that number of Shares
having a Fair Market Value equal to the cash payable upon such exercise), will be charged against the number of Shares issuable under the Plan and will not become available for the grant of other Options, Rights and Performance Units or for the
award of Restricted Stock or Incentive Shares. If the Right referred to in the preceding sentence is a Related Right, or if the Performance Unit referred to in the preceding sentence is a Related Performance Unit, the Shares subject to the Related
Option, to the extent not charged against the number of Shares subject to the Plan in accordance with this Section 5.3, will become available for the grant of other Options, Rights and Performance Units or for the award of additional Restricted
Stock or Incentive Shares. 
  
 6. Options 
  
 6.1 The Committee is authorized to grant Options to Employees and Directors.

  

 -5- 

 6.2 The Option Period for Options granted to Employees and Directors will be determined by the Committee
and specifically set forth in the Agreement. No Option will be exercisable before six months after 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) or
after ten years from the Date of Grant. 
  
 6.3 The maximum number
of Shares of Common Stock with respect to which Options may be granted to any Employee or Director under this Plan during its term is 3,000,000 Shares. In no event will the Option Price of an Option be less than the Fair Market Value of a Share of
Common Stock at the time of the grant. 
  
 6.4 All other terms of
Options granted under the Plan will be determined by the Committee in its sole discretion. 
  
 7. Rights 
  
 7.1 The
Committee is hereby authorized to grant Rights to Employees and Directors. 
  
 7.2 A Right may be granted under the Plan: 
  
 (a) in connection with, and at the same time as, the grant of an Option under the Plan; 
  
 (b) by amendment of an outstanding Option granted under the Plan; or 
  
 (c) independently of any Option granted under the Plan. 
  
 A Right granted under clause (a) or (b) 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 of Common Stock on the Date of Exercise
of the Right over (ii) either (A) the Fair Market Value of a share of Common Stock 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); 
  

 -6- 

 (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 of Common Stock exceeds either (i) the Fair Market Value of a share of Common Stock 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(d) 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(d) 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(d); however, the Company’s failure for any reason whatsoever to comply with such requirements or with any other requirements of Rule 16b-3, and any resultant unavailability of Rule 16b-3(d) to Optionees 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(d) 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 of Common Stock with respect to which Rights
may be granted to any Employee or Director under this Plan during its term is 3,000,000 Shares. 
  

 -7- 

 8. Performance Units 
  
 8.1 The Committee is hereby authorized to grant Performance Units to Employees and Directors. 
  
 8.2 Performance Units may be granted under the Plan: 
  
 (a) in connection with, and at the same time as, the grant of an Option
under the Plan; 
  
 (b) by amendment of an outstanding Option
under the Plan; or 
  
 (c) independently of any Option granted
under the Plan. 
  
 A Performance Unit granted under clause (a) or (b) of the
preceding sentence is a Related Performance Unit. A Related Performance Unit may, in the Committee’s discretion, apply to all or a portion of the shares subject to the Related Option. 
  
 8.3 A Performance Unit 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), cash, Shares or a combination of cash and Shares, based upon
the degree to which Performance Goals established by the Committee and specified in the Agreement have been achieved. 
  
 8.4 The Performance Unit Period will be determined by the Committee and specifically set forth in the Agreement, provided, however — 
  
 (a) a Performance Unit 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); and 
  
 (b) a Performance Unit will expire no later than the earlier of (i) ten years from the Date of Grant, or (ii) in the case of
a Related Performance Unit, the expiration of the Related Option. 
  
 8.5 Each Agreement granting Performance Units will specify the number of Performance Units granted; provided, however, that the maximum number of Related Performance Units may not exceed the maximum number of Shares subject to the Related
Option. 
  
 8.6 The exercise, in whole or in part, of Related
Performance Units will cause a reduction in the number of Shares subject to the Related Option and the number of Performance Units in accordance with the terms of the Agreement. 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 Performance Unit equal to the number of Shares with respect to which the Related Option is exercised. 
  
 8.7 Performance Units granted under the Plan, to the extent determined by the Committee, will comply with the requirements
of Rule 16b-3(d) under the 
  

 -8- 

 Exchange Act during the term of this Plan. Should any additional provisions be necessary for this Article 8 to comply
with the requirements of Rule 16b-3(d) or any other applicable rule or regulation, 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(d); however, the Company’s failure for any reason whatsoever to comply with such requirements or with any other requirements of Rule 16b-3, and any
resultant unavailability of Rule 16b-3(d) to Optionees will not impose any liability on the Company to any Optionee or any other party. 
  
 8.8 To the extent required by Rule 16b-3(d) 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 Performance Unit. 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 Performance
Unit surrendered by the Optionee. If the election to receive cash is disapproved in whole or in part, the Performance Unit 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. 
  
 8.9 The maximum number of Shares that may be issued to any Employee or Director pursuant to the exercise of Performance Units may not exceed 3,000,000 Shares. For purposes of the preceding sentence, any Performance Units paid in the form of
cash will be deemed to have been paid in Shares, with the number of Shares being deemed paid equal to the amount of cash paid to the Employee or Director divided by the Fair Market Value of a Share on the date of payment. 
  
 9. Exercise 
  
 An Option, Right or Performance Unit, subject to the provisions of the Agreement under which it was granted, may be
exercised in whole or in part by the delivery to the Company of written notice of the exercise, in such form as the Committee may prescribe, accompanied, in the case of an Option, by (i) full payment for the Shares with respect to which the Option
is exercised, or (ii) irrevocable instructions to a broker selected by the Committee to consummate “cashless” exercises to deliver promptly to the Company cash equal to full payment for the Shares for which the Option is exercised.

  
 10. Non-transferability 
  
 Unless otherwise provided in the Agreement respecting the grant or award,
Options, Rights, Performance Units and Incentive Shares granted or awarded under the Plan will not be transferable otherwise than by will or the laws of descent and distribution, and an Option, Right or Performance Unit may be exercised during his
or her lifetime only by the Optionee or, in the event of his or her legal disability, by his or her legal representative. A Related Right or Related Performance Unit is transferable only when the Related Option is transferable and only with the
Related Option and under the same conditions. 
  

 -9- 

 11. Restricted Stock Awards 
  
 11.1 The Committee is hereby authorized to award Shares of Restricted Stock to Employees and Directors. 
  
 11.2 Restricted Stock awards under the Plan will consist of Shares that are
restricted against transfer, subject to forfeiture, and subject to such other terms and conditions intended to further the purposes of the Plan as may be determined by the Committee. The terms and conditions may provide, in the discretion of the
Committee, for the vesting of such awards to be contingent upon the achievement of one or more Performance Goals. 
  
 11.3 Restricted Stock awards will be evidenced by Agreements containing provisions setting forth the terms and conditions governing such awards. Each such
agreement will contain the following: 
  
 (a) prohibitions
against the sale, assignment, transfer, exchange, pledge, hypothecation, or other encumbrance of (i) the Shares awarded as Restricted Stock under the Plan, (ii) the right to vote the Shares, or (iii) the right to receive dividends thereon in each
case during the restriction period applicable to the Shares; provided, however, that the Grantee will have all the other rights of a shareholder including, but not limited to, the right to receive dividends and the right to vote the Shares;

  
 (b) at least one term, condition or restriction constituting a
“substantial risk of forfeiture” as defined in Section 83(c) of the Code; 
  
 (c) such other terms, conditions and restrictions as the Committee in its discretion may specify (including, without limitation, provisions creating additional substantial risks of forfeiture); 
  
 (d) a requirement that each certificate representing Shares of Restricted
Stock must be deposited with the Company, or its designee, and will bear the following legend: 
  
 “This certificate and the shares of stock represented hereby are subject to the terms and conditions (including the risks of forfeiture and
restrictions against transfer) contained in THE KROGER CO. 2005 Long-Term Incentive 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 
  

 -10- 

 (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 3,000,000 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 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 3,000,000 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
Common Stock is 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. 
  

 -11- 

	15.	Modification, Extension and Renewal of Options, Rights, Performance Units, Restricted Stock and Incentive Shares 

  
 Subject to the terms and conditions and within the limitations of the Plan,
the Committee may modify, extend or renew outstanding Options, Rights and Performance Units, or accept the surrender of outstanding options, rights and performance units (to the extent not theretofore exercised) granted under the Plan or under any
other plan of the Company, a Subsidiary or a company or similar entity acquired by the Company or a Subsidiary, and authorize the granting of new Options, Rights and Performance Units pursuant to the Plan in substitution therefor (to the extent not
theretofore exercised), and the substituted Options, Rights and Performance Units may specify a longer term than the surrendered options, rights and performance units or may have any other provisions that are authorized by the Plan; provided that
the exercise price may not be less than that of the surrendered option, rights and performance units. Subject to the terms and conditions and within the limitations of the Plan, the Committee may modify the terms of any outstanding Agreement
providing for awards of Restricted Stock or Incentive Shares. Notwithstanding the foregoing, however, no modification of an Option, Right or Performance Unit granted under the Plan, or an award of Restricted Stock or Incentive Shares, will, without
the consent of the Optionee or Grantee, alter or impair any of the Optionee’s or Grantee’s rights or obligations. 
  
 16. Effectiveness of the Plan 
  
 The Plan and any amendments requiring shareholder approval pursuant to Article 14 are subject to approval by vote of the shareholders of the Company
within 12 months after their adoption by the Board. Subject to that approval, the Plan is effective upon approval by the shareholders and any amendments are effective on the date on which they are adopted by the Board. Options, Rights, Performance
Units, Restricted Stock and Incentive Shares may be granted or awarded prior to shareholder approval of the Plan or amendments, but each such Option, Right, Performance Unit, Restricted Stock or Incentive Share grant or award will be subject to the
approval of the Plan or amendments by the shareholders. The date on which any Option, Right, Performance Unit, Restricted Stock or Incentive Shares granted or awarded prior to shareholder approval of the Plan or amendment is granted or awarded will
be the Date of Grant for all purposes as if the Option, Right, Performance Unit, Restricted Stock or Incentive Shares had not been subject to approval. No Option, Right or Performance Unit may be exercised prior to such shareholder approval, and any
Restricted Stock or Incentive Shares awarded will be forfeited if such shareholder approval is not obtained. 
  
 17. Term of the Plan 
  
 Unless sooner terminated by the Board pursuant to Article 14, the Plan will terminate on the date ten years after its adoption by the Board, and no Options, Rights, Performance Units, Restricted Stock or Incentive Shares may be granted or
awarded after termination. The termination will not affect the validity of any Option, Right, Performance Unit, Restricted Stock or Incentive Shares outstanding on the date of termination. 
  
  

 -12- 

 18. Indemnification of Committee 
  
 In addition to such other rights of indemnification as they may have as Directors or as members of the Committee, the
members of the Committee will be indemnified by the Company against the reasonable expenses, including attorneys’ fees, actually and reasonably incurred in connection with the defense of any action, suit or proceeding, or in connection with any
appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option, Right, Performance Unit, Restricted Stock or Incentive Shares granted or awarded
hereunder, and against all amounts reasonably paid by them in settlement thereof or paid by them in satisfaction of a judgment in any such action, suit or proceeding, if such members acted in good faith and in a manner that they believed to be in,
and not opposed to, the best interests of the Company. 
  
 19. General
Provisions 
  
 19.1 The establishment of the Plan will not
confer upon any Employee or Director any legal or equitable right against the Company, any Subsidiary or the Committee, except as expressly provided in the Plan. 
  
 19.2 The Plan does not constitute inducement or consideration for the employment of any Employee or the service of any
Director, nor is it a contract of employment between the Company or any Subsidiary and any Employee or Director. Participation in the Plan, or the receipt of a grant or award hereunder, will not give an Employee or Director any right to be retained
in the service of the Company or any Subsidiary. 
  
 19.3 The
Company and its Subsidiaries may assume options, warrants, or rights to purchase stock issued or granted by other corporations whose stock or assets are acquired by the Company or its Subsidiaries, or that is merged into or consolidated with the
Company. Assumed options will not be counted toward the limit specified in Section 6.3 unless the Committee determines that application of the limit is necessary for the grants of Options to qualify as “performance-based compensation”
under Section 162(m) of the Code. Neither the adoption of this Plan, nor its submission to the shareholders, may be taken to impose any limitations on the powers of the Company or its affiliates to issue, grant, or assume options, warrants, rights,
or restricted stock, otherwise than under this Plan, or to adopt other long-term incentive plans or to impose any requirement of shareholder approval upon the same. 
  
 19.4 The interests of any Employee or Director under the Plan are not subject to the claims of creditors and may not, in any
way, be assigned, alienated or encumbered except as provided in Article 10. 
  
 19.5 The Plan will be governed, construed and administered in accordance with the laws of Ohio. 
  
  

 -13-

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