Exhibit
10(iv)


 


	
  STATE OF NORTH CAROLINA

  	
   

  	
  AMENDMENT TO

  
	
   

  	
   

  	
  EMPLOYMENT AGREEMENT

  
	
  COUNTY OF MECKLENBURG

  	
   

  	
   

  



 


THIS AMENDMENT, made and
entered into effective the 29th day of August 2004, by and between FAMILY
DOLLAR STORES, INC., a Delaware corporation (hereinafter referred to as the
“Company”); and R. David Alexander, Jr. (hereinafter referred to as the
“Employee”);


 


W I T N E S S E T H:


 


WHEREAS, the Company and the
Employee entered into an Employment Agreement dated August 25, 2000, as amended
by Amendments to Employment Agreement effective September 2, 2001, September 1,
2002, January 16, 2003, and August 31, 2003 (hereinafter referred to as the
“Agreement”); and


 


WHEREAS, the Company and the
Employee desire to amend the Agreement;


 


NOW, THEREFORE, in consideration
of the mutual covenants herein contained, the Company and the Employee agree as
follows:


 


1.                    Section
1.04 of the Agreement is amended by adding “Idaho” to the list of states
constituting the “Present Territory.”


 


2.                    Section 2 of the Agreement is deleted and
the following is substituted in lieu thereof:


 


“2.     Employment.  The
Employee shall be employed by the Company and any Affiliate in the capacity
provided for in Paragraph 3 for the period commencing August 29, 2004 (the
“Commencement Date”), and ending on August 27, 2005, or upon the termination of
this Agreement as provided in Paragraph 6.”


 


3.                    The
first paragraph of Section 5.01 of the Agreement is deleted and the following paragraph is substituted in lieu thereof:


 


“5.01         In consideration of the services to be
rendered by the Employee pursuant to this Agreement, the Company shall pay, or
cause to be paid, to the Employee a weekly base salary from August 29, 2004, to
August 27, 2005, of $7,692.31 ($400,000.00 per annum).”


 


4.                    Subparagraphs
(a) and (b) of Section 5.02 of the Agreement are deleted and the following subparagraphs are substituted in
lieu thereof:


 


“5.02.        In addition, the Employee shall be
entitled to:


 


(a)  Participate in the Company’s Target Bonus
Plan, as it may be amended or modified in any respect, including achievement of
established goals, as President and Chief Operating Officer for the fiscal year
commencing August 29, 2004.  The Target
Bonus Plan generally will give the Employee the opportunity to earn a bonus of
up to sixty-five (65%) percent of the Employee’s base salary actually received
for services on and after August 29, 2004, through August 27, 2005, for the fiscal year ending
August 27, 2005, subject to the Company’s achievement of certain financial
goals to be established, the Employee’s performance, and all terms and
conditions of the Target Bonus Plan as in effect for such fiscal year; provided
that the amount of bonus paid may not be increased by the annual individual
performance rating of the Employee by the Chairman of the Board.  The Employee


 

















 


acknowledges that he has received a copy of the form of the Target
Bonus Plan and Bonus Conditions and is familiar with the terms and conditions
thereof.  Nothing contained herein shall
limit the Company’s right to alter, amend or terminate the Target Bonus Plan at
any time for any reason.  The Employee further acknowledges that, as
provided in the Target Bonus Plan, in the event the Employee is not employed by
the Company, for whatever reason, at the time the bonus for the fiscal year is
actually paid to participants in the Target Bonus Plan following the end of the
fiscal year, the Employee will not be entitled to receive the bonus.


 


(b)  Take twenty days (exclusive of Saturdays,
Sundays and paid Company holidays) of vacation during the twelve month period
commencing August 29, 2004.  Vacation
time will accrue ratably during the course of said period and cannot be
accumulated from year to year, except that up to five days of vacation not
taken in said twelve month period may be carried over to the next twelve month
period.”


 


5.                    The
second paragraph of Section 6.02 of the Agreement is deleted and the following paragraph is substituted in lieu thereof:


 


“In the event this
Agreement is not terminated by the Company or the Employee for any reason prior
to August 27, 2005, and the Company and the Employee do not agree in writing
before August 27, 2005, to extend the term of this Agreement beyond August 27,
2005, or to enter into a new agreement to extend the employment relationship beyond
August 27, 2005, this Agreement shall terminate automatically on August 27,
2005, which shall be the Termination Date, and the Company shall pay to the
Employee sixty (60) days of the base salary set forth in Section 5.01 (which
shall constitute payment in full of the compensation due to the Employee
hereunder).  Any such payments shall be
made in two (2) equal monthly installments with the first installment due and
payable not later than thirty (30) days after the Termination Date.”


 


6.                    Section 6A. of the Agreement is deleted and the
following Section is substituted in lieu thereof:


 


“6A.  Target Bonus Plan.  Notwithstanding any other provision of this
Agreement, if the Company terminates this Agreement prior to the end of the
term of this Agreement on August 27, 2005, for reasons other than for Cause, or
if the Company and the Employee do not agree in writing before August 27, 2005,
to extend the term of the Employee’s employment by the Company beyond August
27, 2005, the Employee shall be entitled to receive as a severance payment an
amount equal to the pro rata share of the bonus, or the full bonus, as the case
may be, if any, under and subject to the terms and conditions of the Target
Bonus Plan referred to in Section 5.02(a) based on sixty-five (65%) percent of
the Employee’s base salary actually received for the period from August 29,
2004, through the Termination Date, or through August 27, 2005, if the
Employee’s employment continues through that date.  This payment is equal to the amount, if any, the Employee would
have received following the end of the fiscal year ended August 27, 2005, if
the Target Bonus Plan did not have a requirement that the Employee be employed
by the Company at the time the bonus is customarily paid.  Such payment shall be made to the Employee
on or about November 15 following the end of said fiscal year.”


 


7.                    All other terms and provisions of the
Agreement shall remain in full force and effect.


 


2

















 


IN
WITNESS WHEREOF, the parties hereto have executed this Agreement in triplicate,
all as of the day and year first above written.


 


	
   

  	
  FAMILY DOLLAR STORES,
  INC.

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
  By

  	
  /s/ Howard R. Levine

  	
   

  
	
   

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  
	
  /s/ George R. Mahoney,
  Jr.

  	
   

  	
   

  
	
  Secretary

  	
   

  
	
   

  	
   

  
	
  (Corporate Seal)

  	
   

  
	
   

  	
   

  	
  /s/ R. David Alexander,
  Jr.

  	
   (SEAL)

  
	
   

  	
   

  	
  R. David Alexander, Jr.

  
	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
  /s/ Florence W. Stanley

  	
   

  	
   

  



 


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