Document:

Exhibit 10 (a)

 

FIFTH AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”), dated as of May 19, 2006, is entered into
by and between FAMILY DOLLAR STORES, INC., a Delaware corporation (“FDSI”),
FAMILY DOLLAR, INC., a North Carolina corporation (“FDI”) (FDSI and FDI
are collectively referred to herein as the “Borrower”) and BANK OF
AMERICA, N.A. (the “Bank”).

 

RECITALS

 

The Borrower and the Bank are parties to an Amended
and Restated Credit Agreement dated as of May 31, 2001 (including all previous
amendments prior to the date hereof, the “Credit Agreement”) pursuant to
which the Bank has extended certain credit facilities to the Borrower.

 

The Borrower has requested the Bank to agree to
extensions of the Tranche A Termination Date and the Tranche B Termination
Date.

 

The Bank is willing to amend the Credit Agreement to
extend the Tranche A Termination Date and the Tranche B Termination Date,
subject to the terms and conditions of this Amendment.

 

NOW, THEREFORE, for valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

1.             Defined Terms. Unless
otherwise defined herein, capitalized terms used herein shall have the
meanings, if any, assigned to them in the Credit Agreement.

 

2.             Amendments to Credit Agreement.

 

(a)           Section 1.01 of the Credit Agreement
is amended by amending the following definitions to read in their entirety as
follows:

 

(1)           “Tranche A Termination Date”
means May 31, 2011, or such earlier date as the Tranche A Commitment is
terminated pursuant to this Agreement.

 

(2)           “Tranche B Termination Date”
means May 24, 2007, or such earlier date as the Tranche B Commitment is
terminated pursuant to this Agreement.

 

(b)    The
Address for Notices on page 34 of the Credit Agreement is amended in its
entirety to read as follows:

 

Alexis MacElhiney

Director

Bank of America Retail
Finance Group

40 Broad Street

Mailcode: MA5-505-10-01

 

 

Boston, MA 02109

617-434-3817 (phone)

617-434-2615 (fax)

alexis.macelhiney@bankofamerica.com

 

3.             Representations and Warranties.
The Borrower hereby represents and warrants to the Bank as follows:

 

(a)           No Default or Event of Default has
occurred and is continuing.

 

(b)           The execution, delivery and
performance by the Borrower of this Amendment have been duly authorized by all
necessary corporate and other action and do not and will not require any
registration with, consent or approval of, notice to or action by, any Person
(including any Governmental Authority) in order to be effective and enforceable.
The Credit Agreement as amended by this Amendment constitutes the legal, valid
and binding obligations of the Borrower, enforceable against it in accordance
with its terms, except as limited by applicable Debtor Relief Laws and general
principles of equity, without defense, counterclaim or offset.

 

(c)           All representations and warranties of
the Borrower contained in the Credit Agreement are true and correct on and as
of the date hereof.

 

4.             Effective Date. This
Amendment will become effective as of May 25, 2006 (the “Effective Date”),
provided that the Bank has received from the Borrower a duly executed
original (or, if elected by the Bank, an executed facsimile copy) of this
Amendment, together with a duly executed Guarantor Acknowledgment and Consent
in the form attached hereto (the “Consent”).

 

5.             Reservation of Rights. The
Borrower acknowledges and agrees that the execution and delivery by the Bank of
this Amendment shall not be deemed to create a course of dealing or otherwise
obligate the Bank to enter into amendments under the same, similar or any other
circumstances in the future.

 

6.             Miscellaneous.

 

(a)           Except as herein expressly amended,
all terms, covenants and provisions of the Credit Agreement are and shall
remain in full force and effect and all references therein and in the other
Loan Documents to such Credit Agreement shall henceforth refer to the Credit
Agreement as amended by this Amendment. This Amendment shall be deemed incorporated
into, and a part of, the Credit Agreement. This Amendment is a Loan Document.

 

(b)           This Amendment shall be binding upon
and inure to the benefit of the parties hereto and to the Credit Agreement and
their respective successors and assigns. No third party beneficiaries are
intended in connection with this Amendment.

 

2

 

(c)           This Amendment shall be governed by
and construed in accordance with the law of the State of North Carolina.

 

(d)           This Amendment may be executed in any
number of counterparts, each of which shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument. Each of
the parties hereto understands and agrees that this document (and any other
document required herein) may be delivered by any party thereto either in the
form of an executed original or an executed original sent by facsimile
transmission to be followed promptly by mailing of a hard copy original, and
that receipt by the Bank or the Borrower of a facsimile transmitted document
purportedly bearing the signature of the Bank or the Borrower, as applicable,
shall bind the Bank or the Borrower with the same force and effect as the
delivery of a hard copy original. Any failure by the Bank or the Borrower to
receive the hard copy executed original of such document shall not diminish the
binding effect of receipt of the facsimile transmitted executed original of
such document which hard copy original was not received by the Bank or the
Borrower, as applicable.

 

(e)           This Amendment, together with the
Credit Agreement, contains the entire and exclusive agreement of the parties
hereto with reference to the matters discussed herein and therein. This
Amendment supersedes all prior drafts and communications with respect thereto. This
Amendment may not be amended except in accordance with the provisions of
Section 8.04 of the Credit Agreement.

 

(f)            If any term or provision of this
Amendment shall be deemed prohibited by or invalid under any applicable law,
such provision shall be invalidated without affecting the remaining provisions
of this Amendment or the Credit Agreement, respectively.

 

(g)           Notice of Final Agreement. THIS
WRITTEN AMENDMENT, THE CREDIT AGREEMENT, THE OTHER LOAN DOCUMENTS, AND THE
DOCUMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

 

3

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment under seal as of the date first above written.

 

	
  FAMILY DOLLAR STORES,
  INC.

  	
  FAMILY DOLLAR, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   /s/ C. Martin
  Sowers

  	
  (SEAL)

  	
   

  	
  By: 

  	
   /s/ C. Martin
  Sowers 

  	
  (SEAL)

  	
   

  
	
  Name: 

  	
   C. Martin Sowers

  	
   

  	
  Name: 

  	
   C. Martin Sowers

  	
   

  
	
  Title: 

  	
   Sr. Vice
  President – Finance

  	
   

  	
  Title: 

  	
   Sr. Vice
  President – Finance

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   /s/ Alexis MacElhiney

  	
  (SEAL)

  	
   

  	
   

  
	
  Name: 

  	
   Alexis MacElhiney

  	
   

  	
   

  
	
  Title: 

  	
   Director

  	
   

  	
   

  
											

 

4

 

GUARANTOR ACKNOWLEDGMENT
AND CONSENT

 

Each of the undersigned Guarantors, each a guarantor
with respect to the Borrower’s obligations under the Credit Agreement, hereby
(i) acknowledges and consents to the terms of and the execution, delivery and
performance of the foregoing Third Amendment to Amended and Restated Credit
Agreement (the “Amendment”) (without implying the need for any such
acknowledgement or consent), and (ii) represents and warrants to the Bank that,
both before and after giving effect to the Amendment, the Guaranty to which
each of the undersigned is a party remains in full force and effect as an
enforceable obligation of such Guarantor, in accordance with its terms, except
as enforceability may be limited by applicable Debtor Relief Laws and general
principles of equity, without defense, counterclaim or offset, provided
that nothing herein shall prevent the assertion of any such claim by separate
suit or compulsory counterclaim, and that it is in compliance with all of its
covenants contained therein. Each Guarantor further represents that the
execution, delivery and performance by such Person of this Acknowledgement and
Consent have been duly authorized by all necessary corporate, partnership and
other action and do not and will not require any registration with, consent or
approval of, notice to or action by, any Person (including any Governmental
Authority) in order to be effective and enforceable. Each Guarantor remakes as
of the Effective Date (as defined in the Amendment) all of the representations
and warranties made by it pursuant to the Guaranty to which the undersigned is
a party. Capitalized terms used herein and not otherwise defined have the
respective meanings defined in the Credit Agreement (as defined in the
Amendment).

 

IN WITNESS WHEREOF, each of the undersigned has
executed this Acknowledgement and Consent under seal by its duly authorized
officers as of this 19th day of May, 2006.

 

	
   

  	
  FAMILY DOLLAR SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ C. Martin
  Sowers

  	
  (SEAL)

  	
   

  
	
   

  	
  Name:

  	
   C. Martin Sowers

  	
   

  
	
   

  	
  Title: 

  	
   Sr. Vice
  President – Finance

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FAMILY DOLLAR OPERATIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ C. Martin
  Sowers

  	
  (SEAL)

  	
   

  
	
   

  	
  Name:

  	
   C. Martin Sowers

  	
   

  
	
   

  	
  Title: 

  	
   Sr. Vice
  President – Finance

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FAMILY DOLLAR TRUCKING, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ C. Martin
  Sowers

  	
  (SEAL)

  	
   

  
	
   

  	
  Name:

  	
   C. Martin Sowers

  	
   

  
	
   

  	
  Title: 

  	
   Sr. Vice
  President – FinanceExhibit
10 (b)

 

 FIFTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FIFTH AMENDMENT TO
CREDIT AGREEMENT (the “Amendment”) is made as of the 19th day of May, 2006 by
and among FAMILY DOLLAR STORES, INC., FAMILY DOLLAR, INC. (collectively, the “Borrowers”),
and WACHOVIA BANK, NATIONAL ASSOCIATION (formerly known as First Union National
Bank) (the “Bank”).

 

RECITALS:

 

The Borrowers and the Bank entered into a certain
Credit Agreement dated as of August 7, 2001 (as amended, modified or
supplemented prior to the date hereof, including by (a) letter amendment dated
May 1, 2002, (b) the First Amendment to Credit Agreement dated as of May 29,
2003, (c) the Second Amendment to Credit Agreement dated as of May 27, 2004,
(d) the Third Amendment to Credit Agreement dated as of May 16, 2005 and (e)
the Fourth Amendment to Credit Agreement dated as of March 21, 2006) (the “Credit
Agreement”). Capitalized terms used in this Amendment, which are not otherwise
defined in this Amendment shall have the respective meanings assigned to them
in the Credit Agreement.

 

The Borrowers and the Bank wish to amend the Credit
Agreement in certain respects, as hereinafter provided.

 

NOW, THEREFORE, in consideration of the Recitals and
the mutual promises contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Borrowers and the Bank, intending to be legally bound hereby, agree as
follows:

 

SECTION
1.  Recitals. The Recitals are
incorporated herein by reference and shall be deemed to be a part of this
Amendment.

 

SECTION
2.  Amendments to the Credit Agreement.
The Credit Agreement is hereby amended as set forth in this Section 2.

 

“‘Tranche A Termination Date’ means May 31,
2011, or such earlier date as the Tranche A Commitment is terminated pursuant
to this Agreement.”

 

“‘Tranche B Termination Date’ means May 24,
2007, or such earlier date as the Tranche B Commitment is terminated pursuant
to this Agreement.”

 

The Address for Notices on page 32 of the Credit Agreement is amended in
its entirety to read as follows:

 

Jorge Gonzalez

Managing Director

Portfolio Management

Wachovia Bank N.A.

301 South College Street NC
5562

Charlotte, NC 28288

Phone (704) 383-8461

e-mail
jorge.gonzalez@wachovia.com

 

SECTION
3.  Conditions to Effectiveness. The
effectiveness of this Amendment and the obligations of the Bank hereunder are
subject to the satisfaction of the following condition:

 

1

 

(a)                 the Bank shall have received from each of
the Borrowers and each of the Guarantors a counterpart hereof signed by such
party.

 

SECTION
4.  No Other Amendment. Except for
the amendments set forth above, the text of the Credit Agreement and each of
the other Loan Documents, including, without limitation, the Guaranty, shall
remain unchanged and in full force and effect. This Amendment is not intended
to effect, nor shall it be construed as, a novation. The Credit Agreement and
this Amendment shall be construed together as a single agreement. Nothing
herein contained shall waive, annul, vary or affect any provision, condition,
covenant or agreement contained in the Credit Agreement, except as herein
amended, nor affect or impair any rights, powers or remedies under the Credit
Agreement as hereby amended. The Borrowers promise and agree to perform all of
the requirements, conditions, agreement and obligations under the terms of the
Credit Agreement, as hereby amended, the Credit Agreement, as amended, being
hereby ratified and affirmed. The Borrowers hereby expressly agree that the
Credit Agreement, as amended, and each of the other Loan Documents, is in full
force and effect.

 

SECTION
5.  Representations and Warranties.
Each of the Borrowers hereby represents and warrants to the Bank as follows:

 

(a)          No Default or Event of Default under the
Credit Agreement or any other Loan Document has occurred and is continuing
unwaived by the Bank on the date hereof;

 

(b)         The representations and warranties of the
Borrowers set forth in Article V of the Credit Agreement shall be true on and
as of the date hereof.

 

(c)          Each of the Borrowers has the power and
authority to enter into this Amendment and to do all acts and things as are
required or contemplated hereunder, or thereunder, to be done, observed and
performed by it.

 

(d)         This Amendment has been duly authorized,
validly executed and delivered by one or more authorized officers of each
Borrower and constitutes a legal, valid and binding obligation of each of the
Borrowers, enforceable against each of the Borrowers in accordance with its
terms, provided that such enforceability is subject to applicable Debtor Relief
Laws and general principles of equity.

 

(e)          The execution and delivery of this
Amendment and the performance hereunder by each of the Borrowers does not and
will not require the consent or approval of any regulatory authority or
governmental authority or agency having jurisdiction over any Borrower, nor be
in contravention of or in conflict with the certificate of incorporation or
bylaws of any Borrower, or the provision of any statute, or any judgement,
order, indenture, instrument, agreement or undertaking, to which any Borrower
is party or by which the assets or properties of any Borrower are or may become
bound.

 

SECTION
6.                                Counterparts. This Amendment may be executed in
multiple counterparts each of which shall be deemed to be an original and all
of which, taken together, shall constitute one and the same agreement.

 

SECTION
7.                                Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of North Carolina, without
reference to the conflicts or choice of law principles thereof.

 

2

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed, under seal, by their respective authorized officers as of the day and
year first above written.

 

	
   

  	
  Borrowers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [CORPORATE SEAL]

  	
  FAMILY DOLLAR
  STORES, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  C. Martin Sowers

  	
   

  
	
   

  	
   

  	
  Name: C. Martin
  Sowers

  
	
   

  	
   

  	
  Title: Sr. Vice
  President - Finance

  	
   

  
	
   

  	
   

  
	
  [CORPORATE SEAL]

  	
  FAMILY DOLLAR,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  C. Martin Sowers

  	
   

  
	
   

  	
   

  	
  Name: C. Martin
  Sowers

  
	
   

  	
   

  	
  Title: Sr. Vice
  President - Finance

  
	
   

  	
   

  	
   

  
	
   

  	
  Bank:

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK,
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Jorge A. Gonzalez

  	
   

  
	
   

  	
   

  	
  Name: Jorge A.
  Gonzalez

  	
   

  
	
   

  	
   

  	
  Title: Managing
  Director

  	
   

  
										

 

ACKNOWLEDGED AND AGREED
BY GUARANTORS:

 

 

	
  FAMILY
  DOLLAR SERVICES, INC.

  	
  [CORPORATE
  SEAL]

  
	
   

  	
   

  
	
  By:

  	
    /s/
  C. Martin Sowers

  	
   

  	
   

  
	
   

  	
  Name: C. Martin
  Sowers

  	
   

  
	
   

  	
  Title: Sr. Vice
  President - Finance

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FAMILY
  DOLLAR OPERATIONS, INC.

  	
  [CORPORATE
  SEAL]

  
	
   

  	
   

  
	
  By:

  	
    /s/
  C. Martin Sowers

  	
   

  	
   

  
	
   

  	
  Name: C. Martin
  Sowers

  	
   

  
	
   

  	
  Title: Sr. Vice
  President - Finance

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FAMILY
  DOLLAR TRUCKING, INC.

  	
  [CORPORATE
  SEAL]

  
	
   

  	
   

  
	
  By:

  	
    /s/
  C. Martin Sowers

  	
   

  	
   

  
	
   

  	
  Name: C. Martin
  Sowers

  	
   

  
	
   

  	
  Title: Sr. Vice President - Finance

  	
   

  
							

 

3

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