Document:

Exhibit 10.2

 

FAMILY DOLLAR STORES, INC.

2006 INCENTIVE PLAN

 

Performance Share Rights Award
Certificate

 

 

Associate Name:                                                                  

 

Family Dollar Stores, Inc., a Delaware corporation
(the “Company”), sponsors the Family Dollar Stores, Inc. 2006 Incentive Plan
(the “Plan”).  Pursuant to the Plan and
the Guidelines for Long-Term Incentive Performance Share Rights Awards adopted
under the Plan (the “Guidelines”), the Company may make awards of Performance
Share Rights from time to time to eligible individuals which may become earned
and payable subject to Company  performance over the applicable performance
period.

 

This Performance Share Rights Award Certificate
documents an award of Performance Share Rights made to you under the Plan and
the Guidelines, which are incorporated herein by reference.  A copy of the Guidelines have been delivered
to you and, as discussed below, a copy of the Plan will be delivered to you
upon its approval by the shareholders of the Company.  If there is any conflict between the terms
and provisions of the Plan or the Guidelines and this Certificate, the terms
and provisions of the Plan will control. When used herein, the terms which are
defined in the Plan and the Guidelines shall have the meanings given to them in
the Plan and the Guidelines.

 

Long-Term Performance Share Rights Award:

 

1.             Target
Number of Performance Share Rights Awarded:_________________

 

2.                                       Performance
Period: Fiscal Years Beginning August 28, 2005, and Ending August 30, 2008.

 

Transition Period Performance Share Rights Award:

 

1.             Target
Number of Performance Share Rights Awarded:_________________

 

2.             Performance
Period: Fiscal Year Ending August 26, 2006.

 

You will receive a separate communication
regarding the companies constituting the peer group for purposes of measuring
Company performance for this Award.  All
other terms and provisions of this Award, including without limitation the
impact of any termination of employment prior to the end of the performance
period, shall be as set forth in the Plan and the Guidelines.

 

The award of Performance Share Rights set forth above is the
recommendation of management for such award. The actual award of
Performance Share Rights is contingent upon the subsequent approval of the
shareholders and the Board of Directors of the Company.  You will be notified in January 2006 of the
action of the Board of Directors and the shareholders and/or of any change in
the Performance Share Rights award and will be provided with a copy of the

 

 

Plan and a prospectus describing the Plan at such time. No rights arise under the Performance Share Rights program, the Plan or
the attached Guidelines until such approvals are obtained.

 

	
   

  	
  ACKNOWLEDGED BY:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSOCIATE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Employee ID # 

  	
   

  	
   

  
	
   

  	
  Date 

  	
   

  	
   

  
					

 

2Exhibit 10.1

 

THIRD
MODIFICATION AGREEMENT

 

BY THIS THIRD MODIFICATION
AGREEMENT, made and entered into as of the 1st day of July, 2005, STAR
BUFFET, INC., a Delaware corporation, whose address is 420 Lawndale
Drive, Salt Lake City, Utah 84115 (hereinafter called “Borrower”), and
M&I MARSHALL & ILSLEY BANK, a banking corporation organized and
existing under the laws of the State of Wisconsin, whose address is One East
Camelback Road, P.O. Box 11856, Phoenix, Arizona 85061-1856 (hereinafter
called “Lender”),
confirm and agree as follows:

 

SECTION 1.    RECITALS

 

1.1   Borrower
and Lender entered into a Loan Agreement dated October 28, 2003 (as
modified by the Prior Modifications, defined below, the “Loan Agreement”),
which provided for a revolving line of credit by Lender to Borrower in the
amount of $3,000,000.00 (the “Loan”), all upon the terms and
conditions contained therein.

 

1.2   The
Loan is evidenced by a Promissory Note (Revolving Note) dated October 28,
2003 executed by Borrower, payable to the order of Lender, in the principal
amount of $3,000,000.00 (as modified by the Prior Modifications, the “Note”).

 

1.3   Borrower
and Lender have entered into a Modification Agreement, dated October 31,
2004, and a Second Modification Agreement, dated February 1, 2005 (the “Prior
Modifications”).

 

1.4   The
Loan Agreement, the Note, the Prior Modifications, this Agreement and all other
documents and instruments evidencing or executed and delivered in connection
with the Loan, together with all modifications and amendments thereto and any
documents required herein, are hereinafter collectively called the “Loan
Documents.”

 

1.5   Borrower
and Lender desire to modify the Loan and the Loan Documents as set forth
herein.

 

SECTION 2.    LOAN AGREEMENT

 

2.1   The definition
of Termination Date in Section 2.1 of the Loan Agreement is hereby amended
to read as follows:

 

Termination Date shall mean May 31, 2006; provided,
however, upon the request of  Borrower,
such date may be extended in writing by Lender in its sole and absolute
discretion.

 

SECTION 3.    OTHER MODIFICATIONS,
RATIFICATIONS AND AGREEMENTS

 

3.1   All
references to the Loan Agreement in the other Loan Documents are hereby amended
to refer to the Loan Agreement as hereby amended.

 

3.2   All
references to any Loan Document in the other Loan Documents are hereby amended
to refer to that Loan Document as hereby amended.

 

3.3   Borrower
acknowledges that the indebtedness evidenced by the Loan Documents is just and
owing, that the balance thereof is correctly shown in the records of Lender as
of the date hereof, and Borrower agrees to pay the indebtedness evidenced and
secured by the Loan Documents, according to the terms thereof, as herein
modified.

 

 

3.4   Borrower
hereby reaffirms to Lender each of the representations, warranties, covenants
and agreements of Borrower set forth in the Loan Documents, with the same force
and effect as if each were separately stated herein and made as of the date
hereof.

 

3.5   All
terms, conditions and provisions of the Loan Documents are continued in full
force and effect and shall remain unaffected and unchanged except as
specifically amended hereby. Borrower hereby ratifies, reaffirms, acknowledges,
and agrees that the Loan Documents, as amended hereby, represent valid,
enforceable and collectible obligations of Borrower, and that there are no
existing claims, defenses, personal or otherwise, or rights of setoff
whatsoever with respect to any of these documents or instruments. Borrower
further acknowledges and represents that no event has occurred and no condition
exists that, after notice or lapse of time, or both, would constitute a default
under this Agreement or any Loan Document.

 

3.6   The
Loan Documents, as amended hereby, are hereby ratified and reaffirmed by
Borrower, and Borrower specifically acknowledges the validity and
enforceability thereof.

 

SECTION 4.    GENERAL

 

4.1   The
modifications contained herein shall not be binding upon Lender until Lender
shall have received all of the following:

 

(a)   An original of this Agreement fully executed by
the Borrower;

 

(b)   If Borrower is a corporation, partnership or
trust, such resolutions or authorizations and such other documents as Lender
may require relating to the existence and good standing of that corporation,
partnership or trust, and the authority of any person executing this Agreement
or other documents on behalf of that corporation, partnership or trust.

 

(c)   Receipt by Lender of a modification/loan fee in
the amount of $5833.00 in connection with this Agreement.

 

4.2   Borrower
shall execute and deliver such additional documents and do such other acts as
Lender may reasonably require to fully implement the intent of this Agreement.

 

4.3   Borrower
shall pay all costs and expenses, including, but not limited to, reasonable
attorneys’ fees incurred by Lender in connection herewith, whether or not all
of the conditions described in Paragraph 4.1 above are satisfied. Lender,
at its option, but without any obligation to do so, may advance funds to pay
any such costs and expenses that are the obligation of the Borrower, and all
such funds advanced shall bear interest at the highest rate provided in the
Note, shall be due and payable upon demand and shall be secured by all of the
Loan Documents.

 

4.4   Notwithstanding
anything to the contrary contained herein or in any other instrument executed
by Borrower or Lender, or in any other action or conduct undertaken by Borrower
or Lender on or before the date hereof, the agreements, covenants and
provisions contained herein shall constitute the only evidence of Lender’s
consent to modify the terms and provisions of the Loan Documents. Accordingly,
no express or implied consent to any further modifications involving any of the
matters set forth in this Agreement or otherwise shall be inferred or implied
by Lender’s execution of this Agreement. Further, Lender’s execution of this
Agreement shall not constitute a waiver (either express or implied) of the
requirement that any further modification of the Loan or of the Loan Document
shall require the express written approval of Lender; no such approval (either
express or implied) has been given as of the date hereof.

 

4.5   Notwithstanding
this or any prior forbearance, actual or implied, of any nature by Lender, time
is hereby declared to be of the essence hereof, of the Loan, of all Loan
Documents, and Lender requires, and Borrower agrees to, strict performance of
each and every covenant, condition, provision and agreement hereof and of all
Loan Documents.

 

 

4.6   This
Agreement shall be binding upon, and shall inure to the benefit of, the parties
hereto and their heirs, personal representatives, successors and assigns.

 

4.7   This
Agreement is made for the sole protection and benefit of the parties hereto,
and no other person or entity shall have any right of action hereon.

 

4.8   This
Agreement shall be governed by and construed according to the laws of the State
of Arizona.

 

IN WITNESS WHEREOF, these
presents are executed as of the date indicated above. 

 

	
   

  	
  STAR BUFFET, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  ROBERT E. WHEATON 

  
	
   

  	
  Name:

  	
  Robert E. Wheaton

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  BORROWER

  
	
   

  	
   

  	
   

  
	
   

  	
  M&I MARSHALL & ILSLEY BANK, a banking corporation
  organized and existing under the laws of the State of Wisconsin

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  GREGORY C. RECKER 

  
	
   

  	
  Name:

  	
  Gregory C.Recker

  
	
   

  	
  Title:

  	
  SVP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  FRANK X. MENDOZA 

  
	
   

  	
  Name:

  	
  Frank X. Mendoza

  
	
   

  	
  Title:

  	
  SVP

  
	
   

  	
  LENDER

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