Document:

2010 Teamshare

  DG teamshare
 

 The Teamshare Plan is designed to encourage high performance and reward employee contributions to the Company’s success. 
 

 YOUR 2010 TEAMSHARE PLAN
 Provided the Company’s fiscal 2010 adjusted EBITDA and ROIC results are above threshold, you will be eligible to receive a Teamshare bonus.  The adjusted EBITDA and ROIC portions of Teamshare are weighted 90% and 10%, respectively.
 

 Unless required by contract, no officer is eligible to receive a bonus if that officer receives an “unsatisfactory” overall performance rating, and payment of any bonus is in the Compensation Committee’s discretion if the officer receives a “needs improvement” overall performance rating. 
 

 Please refer to the 2nd page for program guidelines and individual eligibility requirements. 
 

 	 	 	 	 
	 Payout 
 Levels*
	 Company Financial Measures
	 Your Bonus Opportunity

	 Adjusted EBITDA
(in millions)
	 Adjusted ROIC

	 Threshold 
	 $__________
	 $__________
	 ___%

	 Target 
	 $__________
	 $__________
	 ___%

	 200% of Target
	 $__________
	 $__________
	 ___%

	 Above 200% of Target
	 $__________
	 $__________
	 ___%

 *Payout for financial performance between “payout levels” and up to 200% will be prorated accordingly.  Above 200%, individual payouts will increase on a pro rata basis by up to 11.38% of target for every 1% increase in adjusted EBITDA and adjusted ROIC, allocated 90% to adjusted EBITDA and 10% to adjusted ROIC.  No individual bonus may exceed $5 million. 
 

 EBITDA and ROIC
 EBITDA is Earnings Before Interest, Taxes, Depreciation, and Amortization and is a financial indicator used to evaluate a Company’s performance.  It is a reflection of a Company’s underlying cash earnings without the effects of previous expenditures (depreciation), financing decisions (interest) and non-cash accounting adjustments (amortization) and taxes. 
 Our Compensation Committee may adjust the EBITDA calculation for certain factors.   
 

 ROIC is Return On Invested Capital and is a financial indicator used to determine how well the Company generates earnings from its investments.  The Compensation Committee may also adjust the ROIC calculation for certain factors. 
 

 Plan information is proprietary and confidential.  Employees are reminded that they may not disclose Plan information relating to the Company’s financial goals or performance.
 

 
 TEAMSHARE GUIDELINES
 

 ELIGIBILITY
 To receive an incentive payment, an employee must meet each of the following criteria:
 

 1.
 Be an active regular, full-time or part-time Store Support Center or DC employee during fiscal 2010.
 2.
 Be employed with Dollar General through the end of the bonus period and on the date of bonus payout.*
 *Unless otherwise required by state law.
 Estates will be eligible for bonus payment if the employee's death occurs on or after the end of the fiscal year.
 3.
 Must have received a year-end performance rating of “Good” or better.  Employees rated “Needs Improvement” are eligible at the discretion of the Compensation Committee.  Employees rated “Unsatisfactory” are ineligible.  
 

 BONUS PRORATION
 Bonuses are prorated based on the number of months an employee is actively employed in an eligible position during the fiscal year.  An employee must be hired/rehired and be actively employed on or before the 15th of the month to receive credit for the month.
 

 	 
	  
 Example:
 Jane Doe was hired on June 20
 The 15th of the month has passed; Jane will not receive credit for June
 Jane will receive credit for July– January & will receive a prorated bonus for 7 months
  

 

 Employees on leave are eligible for a pro-rated payment based on the number of months (to be calculated in a manner determined by the company) worked in an eligible position during the fiscal year provided employment has not been terminated before the end of the bonus period and the date of bonus payment, unless otherwise required by law. 
 

 POSTION AND SALARY CHANGES
 Employees who work in positions with different bonus levels during the fiscal year and/or experience a change in salary after April 1, are eligible for a prorated bonus based on the bonus opportunity for the time in each position, salary and plan. Note: Eligibility requirements must be met in the applicable plan to receive a bonus from that plan. 
 

 	 
	  
 Example:
 Analyst from February 2—June 12 = 4/12 based on analyst bonus opportunity and analyst salary 
 Sr. Analyst from June 13—January 30 = 8/12 based on sr. analyst bonus opportunity and sr. analyst salary
  

 

 REHIRED EMPLOYEES
 Employees who leave the Company and are rehired during the same fiscal year will be bonus eligible from the date of rehire unless rehired within 30 days from the date of termination.  Service will be bridged for persons who are away from the Company less than 30 days.  Persons who are rehired after 30 days forfeit any bonus amount earned during the fiscal year prior to termination.
 

 BONUS PAYOUT
 To allow time for accounting and administrative handling, bonuses will be paid as soon as administratively possible, but no later than April 15.
 

 	 
	 

 The IRS considers incentive payments as supplemental wages. In accordance with IRS guidelines, Dollar General will withhold federal income taxes at the supplemental rate (currently established at 25%). In addition, this payment will be subject to applicable social security, Medicare, state and local taxes.  Voluntary deductions (e.g. health insurance, 401k, etc. will not be deducted from this amount. Where required by law, specific garnishments (e.g., child support) may be deducted, as appropriate, from this amount. Certain state laws require incentive payments be held for up to 30 days after the check date pending review of applicable child support garnishments. After the Company receives notification for the state child support agencies regarding whether part of all of the impacted employee’s incentive payment should be paid toward child support, the Company will pay any remaining incentive funds with the next regular payroll. 
  

 

 

 

 

 Dollar General reserves the right to adjust, amend or suspend the Teamshare program at any time, 
 including, but not limited to, unforeseen events.Exhibit 10.4

SECOND AMENDMENT TO MANAGEMENT STOCKHOLDER’S AGREEMENTS (THIS “AMENDMENT”) 

Effective June 3, 2010

WHEREAS, Dollar General Corporation a Tennessee Corporation (the “Company”), and Buck Holdings, L.P., a Delaware limited partnership (“Parent”), have previously entered into a number of Management Stockholder’s Agreements (all such agreements, as amended through the date hereof, collectively, the “Management Stockholders Agreements”) with certain individuals who are key employees of the Company or one of its subsidiaries (the “Management Stockholders”); and

WHEREAS, in connection with the secondary offering (the “Secondary Offering”) of shares of Common Stock made pursuant to the Company’s Registration Statement on Form S-3 (Registration No. 333-165800), including a prospectus supplement dated April 14, 2010 to the prospectus contained therein dated March 31, 2010, each Management Stockholder was either contractually entitled to exercise or was voluntarily extended the right to exercise Piggyback Registration Rights pursuant to Section 9 of the Agreement (the “April 2010 Piggyback Rights”); and

WHEREAS, the Company and Parent deem it desirable and in the bests interests of the Company and its shareholders to allow the Management Stockholders to continue to have the right to exercise Piggyback Registration Rights with respect to the number of shares of Common Stock subject to the April 2010 Piggyback Rights that were not sold by such Management Stockholder in connection with the Secondary Offering upon the occurrence of future sales of Common Stock by any of the Investors in accordance with the terms of the Registration Rights Agreement; and

WHEREAS, the Company and Parent deem it desirable and in the best interests of the Company and its shareholders to further allow Senior Management Stockholders and, if Piggyback Registration Rights are voluntarily extended to such person, any Management Stockholder who is not a Senior Management Stockholder, in connection with any future Piggyback Registration Rights to the extent not exercised in connection with the offering in which such Piggyback Registration Rights arise, to continue to have Piggyback Registration Rights in each further future sale of Common Stock by any of the Investors in accordance with the terms of the Registration Rights Agreement with respect to the shares of Common Stock not sold in connection with any prior offering; and

WHEREAS, Section 16 of the Management Stockholders Agreements provides that the Management Stockholders Agreements may be amended by the Company, subject to the conditions specified therein, at any time upon notice to the Management Stockholders thereof; and

WHEREAS, the Company and Parent desire to amend the Management Stockholders Agreements for the benefit of the Management Stockholders as provided herein.

NOW, THEREFORE, in consideration of the mutual agreements specified in this Amendment, the parties hereto hereby agree as follows:  

1.  Amendment to Management Stockholders Agreements.  (a)  The first sentence of Section 9(a) of the Management Stockholders Agreements is hereby amended by inserting the words “, to any Management Stockholder who holds Banked Shares” immediately after the phrase “The Parties agree to be bound, with respect to Senior Management Stockholders” in the first sentence thereof.

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(b)  The last sentence of Section 9(a) of the Management Stockholders Agreements is hereby amended and restated in its entirety to read as follows: 

All Stock purchased or held by the applicable Management Stockholder Entities pursuant to this Agreement shall be deemed to be “Registrable Securities” as defined in the Registration Rights Agreement except for Stock that is subject to the Waiver dated December 9, 2009 and except for Stock that is subject to any other existing or future complete waiver of the transfer restrictions set forth in Section 2(a) and Section 3 hereof (the “Waiver Stock”).

(b)

The first sentence of Section 9(b) of the Management Stockholders Agreements is hereby amended by inserting the words “or who owns Banked Shares” immediately following the words “has decided to extend the Piggyback Registration Rights”.

(c)

Section 9(c) of the Management Stockholders Agreements is hereby amended and restated in its entirety to read as follows:

The maximum number of shares of Stock which will be registered pursuant to a Request will be the lowest of the amounts determined in accordance with (i), (ii) or (iii) below:

(i) the sum of the Banked Shares plus the amount determined by multiplying the number derived in accordance with (1) below by the number derived in accordance with (2) below: 

(1) the difference between (A) the number of shares of Stock then held by the Management Stockholder Entities, including all shares of Stock which the Management Stockholder Entities are then entitled to acquire under unexercised Options to the extent then exercisable minus (B) the Banked Shares minus (C) the Waiver Stock, and

(2) a fraction, the numerator of which is the aggregate number of shares of Stock being sold by holders of Registrable Securities and the denominator of which is the difference between the aggregate number of shares of Stock owned by the holders of Registrable Securities minus the Waiver Stock; or 

(ii)  the maximum number of shares of Stock which the Company can register in connection with such Request in the Proposed Registration without adverse effect on the offering in the view of the managing underwriters (reduced pro rata as more fully described in subsection (d) of this Section 9); or 

(iii) the maximum number of shares which the Senior Management Stockholder (pro rata based upon the aggregate number of shares of Stock the Senior Management Stockholder and all Other 

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Management Stockholders who are Senior Management Stockholders have requested to be registered) is permitted to register under the Piggyback Registration Rights.

For purposes of this Agreement, the “Banked Shares” shall mean, with respect to the Management Stockholder Entities, a number of shares equal to the difference between (x) the aggregate number of shares of Stock which the Management Stockholder Entities could have sold in connection with the exercise of their Piggyback Registration Rights in all registrations giving rise to Piggyback Registration Rights of the Management Stockholder Entities, whether contractual or voluntarily extended to the Management Stockholder Entities pursuant to this Section 9,  to the extent provided herein occurring on or after January 1, 2010 (collectively, the “Prior Registrations”) if such Management Stockholder Entities had exercised their Piggyback Registration Rights in full in connection with the Prior Registration minus (y) the aggregate number of shares of Stock sold by the Management Stockholder Entities in all such Prior Registrations.  For the avoidance of doubt, in connection with any Proposed Registration with respect to which Piggyback Registration Rights are not extended pursuant to the terms hereof to a Management Stockholder who is not a Senior Management Stockholder, such Management Stockholder may only make a Request in connection with such Proposed Registration with respect to the Banked Shares (if any) and if such Management Stockholder makes a Request, the Banked Shares shall, for purposes of that Proposed Registration, replace the amount of Stock described in clause (i) above.

2.  Governing Law.  The laws of the State of Tennessee applicable to contracts executed and to be performed entirely in such state shall govern the interpretation, validity and performance of the terms of this Amendment. 

3.  Counterparts.  This Amendment may be executed in counterparts, and by different parties on separate counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute one and the same instrument.  

4.  No Other Amendments.  Except to the extent expressly amended by this Amendment, all terms of the Management Stockholders Agreements shall remain in full force and effect without amendment, change or modification.

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IN WITNESS WHEREOF, each of the following have executed this Amendment as of the date first set forth above.

		
	DOLLAR GENERAL CORPORATION

	 
	 

	 
	 

	By:

	/s/ Susan S. Lanigan

	Name:

	Susan S. Lanigan

	Title:

	EVP & General Counsel

		
	BUCK HOLDINGS, L.P.

	 
	 

	 
	 

	By:

	/s/ Raj Agrawal

	Name:

	Raj Agrawal

	Title:

	Manager and Vice President

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