Exhibit 10(v)


 





 




	
   

  	
  Amended as of

  November 2, 2004

  






 


MEDICAL EXPENSE REIMBURSEMENT PLAN


 


ARTICLE I
- INTRODUCTION


 


I-1           Purpose


 


The Family Dollar
MEDICAL EXPENSE REIMBURSEMENT PLAN (the “plan”) has been established by Family
Dollar Stores, Inc. (the “employer”), a Delaware corporation, to provide for
reimbursement by an insurance provider of certain medical expenses incurred by
its eligible associates and their dependents of the employer’s direct and
indirect subsidiaries (the “affiliates”).


 


I-2                                  Effective
Date


 


The “effective
date” of the plan as set forth herein is January 1, 1978.


 


I-3                                  Administration
of the Plan


 


The
Senior Vice President-Finance of the employer shall be “named fiduciary” (as
described in Section 402 of the Employee Retirement Income Security Act of
1974) and shall control and manage the operation of the plan.  Any documents required to be filed with the
named fiduciary will be considered properly filed if delivered or mailed by
registered mail, postage prepaid, to the named fiduciary in care of the
employer at Post Office Box 1017 Charlotte, North Carolina 28201 — 1017.


 


ARTICLE II –
MEMBERSHIP


 


Each associate of the employer or an
affiliate will become a member in the plan on the effective date or on the
first day of employment thereafter if the associate then is a “participating
associate”.  A participating associate is
an associate who:


 


(a)                                  is
a full-time associate (that is, an associate who ordinarily and on a regular
basis works for the employer or an affiliate more than 20 hours per week); and


 


(b)                                 is
the Chairman of the Board and Chief Executive Officer, President, Vice Chairman
and Chief Financial Officer, Executive Vice President, Senior Vice President,
Vice President, Treasurer, Secretary, Controller, General Counsel, Assistant
General Counsel, Assistant Treasurer, Divisional Vice President, Regional Vice
President or Assistant Secretary of the employer or an affiliate.


 


ARTICLE III – PLAN
BENEFITS


 


III-1                          Amount
of Benefit


 





















 


Subject
to the conditions and limitations of the plan, for the calendar year commencing
January 1, 1978 each participating associate will be entitled to
reimbursement from the insurance provider for the employer or an affiliate of
the medical care costs (as defined in paragraph III-2) paid during each
calendar year with respect to the particular associate’s family unit (as
defined in paragraph III-3) to the extent that such costs do not exceed an
amount equal to the smallest of:


 


(a)                                  the
total medical care costs of the participating associate’s family unit paid during
that calendar year; or


 


(b)                                 $20,000


 


provided, however, that
any participating associate will be entitled to reimbursement set forth as
follows:


 


(a)                                  Chairman
of the Board and Chief Executive Officer, Vice Chairman and Chief Financial
Officer and any participating associate who first became a participating
associate before September 1, 1983 will be entitled to reimbursement from
the insurance provider for the employer or an affiliate of ninety (90%)
percent;


 


(b)                                 All
other participating associates will be entitled to reimbursement from the
insurance provider for the employer or an affiliate of seventy (70%) percent;


 


of the medical care
costs (as defined in paragraph III-2) paid during that calendar year with
respect to the particular associate’s family unit (as defined in paragraph
III-3), but in no event shall such reimbursement exceed an amount equal to the
smallest of:


 


(a)                                  ten
(10%) percent of such participating associate’s regular weekly base salary
(exclusive of bonuses and other payments and benefits) in effect on the date he
becomes a participating associate, as such salary is adjusted and in effect on January 1
of each subsequent year, multiplied by 52 (or such lower number as shall be
equal to the number of full weeks remaining in the calendar year after the date
on which he becomes a participating associate); or


 


(b)                                 $20,000.


 


III-2                          Medical
Care Costs


 


The term “medical care
costs”, as used in the plan, means amounts paid by a member for:


 


(a)                                  diagnosis,
cure, mitigation, treatment or prevention of disease, or for the purpose of
affecting any structure or function of the body, including, by way of example
but not of limitation, amounts paid for:


(i)                                     operations
or treatments affecting any portion of the body, including obstetrical expenses
and expenses of therapy or X-ray treatments;


(ii)                                  the
prevention or alleviation of a physical or mental defect or illness;


(iii)                               hospital services,
nursing services (including nurses’ board where paid by the member), medical
laboratory, surgical, dental and other diagnostic and healing services, X-rays,
medicine and drugs and ambulance hire;


(iv)                              eye
glasses, a seeing-eye dog, artificial teeth and limbs, wheel chair and
crutches;


(v)                                 in-patient
hospital care (including the cost of meals and lodging therein);


 


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(vi)                              care
in an institution other than a hospital where an individual is in an
institution because his condition is such that the availability of medical care
in such institution is a principal reason for his presence there, and meals and
lodging are furnished as a necessary incident to such care, including the
entire cost of institutional care for a person who is mentally ill and unsafe
when left alone; except that where an individual is in an institution and his
condition is such that the availability of medical care in such institution is
not a principal reason for his presence there, only that part of the cost for
care in the institution which is attributable to medical care or nursing
attention furnished to him will be considered an amount paid for medical care,
and, in such case, meals and lodging at the institution are not considered a
cost of medical care;


(vii)                           medicine and drugs
(excluding toiletries and cosmetics) which are legally procured and which are
generally accepted as falling within the categories of medicine and drugs
(whether or not requiring a prescription);


 


(b)                                 transportation
(costs based on the then current Internal Revenue Service allowance) primarily
for and essential to medical care referred to in subparagraph (a) above; and


 


(c)                                  insurance
coverage medical care referred to in subparagraphs (a) and (b) above.


 


In no event shall
medical care costs include any item which is not included within the meaning of
“medical care” as defined in Section 213(e) of the Internal Revenue Code
of 1954, or any comparable provision of any future legislation that amends,
supplements or supersedes that section.


 


III-3                          Family
Unit


 


The term “family unit”
or “member”, as applied to any participating associate of the employer or an
affiliate, means the participating associate, the associate’s spouse and such
of the associate’s children as are dependents within the meaning of Section 152
of the Internal Revenue Code of 1954, or any comparable provision of any future
legislation that amends, supplements or supersedes that section.


 


III-4                          Manner
of Making Payments


 


The insurance provider
for the employer or an affiliate shall reimburse each participating associate
as soon as practicable for the portion of his family unit’s medical care costs
paid during the calendar year that is payable to him under paragraph III-1,
provided that prior to any such payment and to the date of the participating
associate’s termination of employment the named fiduciary receives evidence
acceptable to him that such medical care costs have been paid by the
participating associate or any other member of the family unit.  In no event will any portion of a family unit’s
medical care costs paid during any calendar year be reimbursed by the insurance
provider under the plan more than 90 days after the end of that calendar year.


 


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III-5                          Benefits
of Terminated Participating Associates


 


The participation in the
plan by an associate shall end when the associate’s employment by the employer
or an affiliate ends or the associate is no longer a “participating associate”
as defined in Article II above.  If
a participating associate’s employment by the employer or an affiliate is
terminated for any reason, then any amount payable to him under the plan
immediately prior to his termination shall be paid to him or if a participating
associate’s employment by the employer or an affiliate is terminated by reason
of his death, then any amount that has become payable to him under the plan as
of the date of his death shall, in the discretion of the named fiduciary, be
paid to either his spouse or his estate.


 


III-6                          Facility
of Payment


 


When a participating
associate is under legal disability or, in the named fiduciary’s opinion, is
incapacitated in any way so as to be unable to manage his financial affairs,
the named fiduciary may authorize the insurance provider to make payments
reimbursing his family unit’s medical care costs to the participating associate’s
legal representative, or to his spouse, or the named fiduciary may authorize
the insurance provider to apply the payment for the benefit of the
participating associate in any way the name fiduciary considers advisable.


 


ARTICLE IV
– FINANCING PLAN BENEFITS


 


The employer shall have
the right to (a) pay benefits from its general assets, (b) insure any benefits
under the Plan, and/or (c) establish any fund or trust for the holding of
contributions or payment of benefits under this plan, either as mandated by law
or as the employer deems advisable. 
Notwithstanding the preceding sentence, the employer or an affiliate
expects and intends to make an arrangement with an insurance provider to fully
insure all benefits under the Plan.


 


 


ARTICLE V
–MISCELLANEOUS


 


V-1                              Information
to be Furnished by Participating Associates


 


Members must furnish to
the named fiduciary such documents, evidence, data or information as the named
fiduciary considers necessary or desirable for the purpose of administering the
plan or for the employer’s or an affiliate’s protection.  The provisions of the plan for each member
are on the condition that the member furnish full, true and complete data,
evidence or other information


 


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and that the member will
promptly sign any documents related to the plan requested by the named
fiduciary.


 


V-2                              Associate
Rights


 


The plan does not
constitute a contact of employment and participation in the plan will not give
any participating associate the right to be retained in the employ of the
employer or an affiliate, nor will participation in the plan give any member
any right or claim to any benefit under the plan, unless such right or claim
has specifically accrued under the terms of the plan.


 


V-3                              Fiduciary’s
Decision Final


 


Any interpretation of
the plan and any decision on any matter within his discretion made by the named
fiduciary in good faith is binding on all persons.  A misstatement or other mistake of fact shall
be corrected when it becomes known, and the named fiduciary shall make such
adjustment on account thereof as he considers equitable and practicable.  Any associate, former associate, or
beneficiary of either, who feels aggrieved by any action of the named fiduciary,
shall be entitled, upon request to the named fiduciary to receive a written
notice of such action, together with a full and clear statement of the reasons
for the action.  If the claimant wishes
further consideration of his position, he may obtain a form from the named
fiduciary on which to request a hearing. 
Such form, together with a written statement of the claimant’s position,
shall be filed with the named fiduciary no later than ninety (90) days after
receipt of the written notification provided for above.  The named fiduciary shall schedule an
opportunity for a full and fair hearing of the issue within the next thirty
(30) days.  The decision following such
hearing shall be made within thirty (30) days, and shall be communicated in
writing to the claimant.


 


V-4                              Uniform
Rules


 


In managing, the plan,
the named fiduciary shall apply uniform rules to all members similarly
situated, except as otherwise provided in the plan.


 


V-5                              Gender
and Number


 


Where the context
admits, words in the masculine gender shall include the feminine and neuter
genders, the plural shall include the singular and the singular shall include
the plural.


 


V-6                              Absence
of Guaranty


 


None of the employer or
its affiliates or their stockholders, Board of Directors or officers, in any
way guarantees any payment to any person.


 


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V-7                              Action
by Employer


 


Any action by the
employer or its affiliates shall be by resolution of their Boards of Directors
or by a person authorized by resolution of their Boards of Director.


 


V-8                              Controlling
Law


 


The laws of North
Carolina shall be the controlling state law in all matters relating to the
plan, and shall be applicable to the extent that they are not preempted by the
laws of the United States of America.


 


V-9                              Interests
Not Transferable


 


Except as to any debt
owing to the employer or an affiliate, the interests of the participating
associates and members of their family unit under the plan are not subject to
the claims of their creditors and may not be transferred or encumbered.


 


ARTICLE VI
–AMENDMENT OR TERMINATIONS


 


VI-1                          Amendment


 


While the employer
expects to continue the plan, it must necessarily reserve and reserves the
right to amend the plan from time to time, except that any amount that has
become payable under the plan to any person prior to the date on which such
amendment is adopted shall be paid by the employer or affiliate in accordance
with the terms of the plan in effect prior to that date.


 


VI-2                          Termination


 


The plan will terminate
on the first to occur of the following:


 


(a)                                  the
date it is terminated by the employer;


(b)                                 the
date the employer is judicially declared bankrupt or insolvent; or


(c)                                  the
dissolution, merger, consolidation or reorganization of the employer, or the
sale by the employer of all or substantially all of its assets, except that in
any such event arrangements may be made whereby the plan will be continued by
any successor to the employer or by any purchaser of all or substantially all
of the employer’s assets, in which case the successor or purchaser will be
substituted for the employer under the plan.


 


If the
plan is terminated in accordance with subparagraph (a) or (c) above, any amount
that has become payable under the plan to any person prior to the date of
termination shall be paid by the employer or an affiliate in accordance with
the terms of the plan.


 


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