Document:

Exhibit 10.31

 

SALE
PARTICIPATION AGREEMENT

 

January  21, 2008

 

To: The Person whose
name is 

set forth on the signature page hereof

 

Dear Sir or Madam:

 

You have entered into a Management
Stockholder’s Agreement, dated as of the date hereof, between Dollar General
Corporation, a Tennessee corporation (the “Company”), Buck Holdings,
L.P. (“Parent”) and you (the “Stockholder’s Agreement”) relating
to (i) the purchase by you of Purchased Stock (as defined in the
Stockholder’s Agreement); and/or (ii) the grant by the Company to you of (x) options
(“Options”) to purchase shares of common stock, par value $0.50 per
share, of the Company (“Common Stock”) and (y) restricted shares of
Common Stock (“Restricted Stock”). 
Parent hereby agrees with you as follows, effective as of the date
hereof:

 

1.     (a)  In the event that at any time on or after the
date hereof Parent or any of its Affiliates (as defined in the Stockholder’s
Agreement) proposes to sell directly for cash or any other consideration any
shares of Common Stock owned by Parent or any such Affiliate, in any
transaction other than a Public Offering (as defined in the Stockholder’s
Agreement) or a sale, directly or indirectly, to an Affiliate of Parent, then,
unless Parent is entitled to and does exercise the drag-along rights pursuant
to Paragraph 7 below and the Drag Transaction is consummated, solely to the
extent you are a Senior Management Stockholder (as defined in the Stockholder’s
Agreement) or the provisions hereof are otherwise applicable to you pursuant to
and in accordance with Section 9 of the Stockholder’s Agreement or as a
result of a decision by the Board (as defined in the Stockholder’s Agreement),
after consultation with the Chief Executive Officer, Chief Operating Officer
and Chief Financial Officer of the Company, to extend the rights under this Section 1
to you, Parent will notify you or your Management Stockholder’s Estate or
Management Stockholder’s Trust (as such terms are defined in the Stockholder’s
Agreement, and collectively with you, the “Management Stockholder Entities”),
as the case may be, in writing (a “Notice”) of such proposed sale (a “Proposed
Sale”) specifying the principal terms and conditions of the Proposed Sale
(the “Material Terms”) including (A) the amount of Common Stock to
be included in the Proposed Sale, (B) the percentage of the outstanding
Common Stock at the time the Notice is given that is represented by the number
of shares to be included in the Proposed Sale, (C) the price per share of
Common Stock subject to the Proposed Sale, including a description of any
pricing formulae and of any non-cash consideration sufficiently detailed to
permit valuation thereof, (D) the Tag Along Sale Percentage (as defined
below) of Parent and (E) the name and address of the Person (as defined in
the Stockholder’s Agreement) to whom the offered Common Stock is proposed to be
issued.

 

(b)   If, within 10 business
days after the delivery of Notice under Section 1(a), Parent receives from
a Management Stockholder Entity a written request (a “Request”) to
include Common Stock held by the Management Stockholder Entity in the Proposed
Sale (which

 

 

Request shall be irrevocable except (a) as
set forth in clauses (c) and (d) of this Section 1 below or (b) if
otherwise mutually agreed to in writing by the Management Stockholder Entity
and Parent), the Common Stock held by you (not in any event to exceed the Tag
Along Sale Percentage multiplied by the total number of shares of Common Stock
held by the Management Stockholder Entities in the aggregate) will be so
included as provided herein.  Promptly
after the execution of the Sale Agreement, Parent will furnish each Management
Stockholder Entity with a copy of the Sale Agreement, if any.  For purposes of this Agreement, the “Tag
Along Sale Percentage” shall mean the fraction, expressed as a percentage,
determined by dividing the number of shares of Common Stock to be purchased
from Parent by the total number of shares of Common Stock owned directly or
indirectly by Parent.

 

(c)   Notwithstanding anything to the
contrary contained in this Agreement, if any of the economic terms of the
Proposed Sale change, including without limitation if the per share price will
be less than the per share price disclosed in the Notice, or any of the other
principal terms or conditions will be materially less favorable to the selling
Management Stockholder Entities than those described in the Notice, Parent will
provide written notice thereof to each such Management Stockholder Entity who
has made a Request and each such Management Stockholder Entity will then be
given an opportunity to withdraw the offer contained in such holder’s Request
(by providing prompt (and in any event within five (5) business days;
provided that, notwithstanding the foregoing, if the proposed closing with
respect to the Proposed Sale is to occur within five (5) business days or
less, no later than three (3) business days prior to such closing) written
notice of such withdrawal to Parent), whereupon such withdrawing Management
Stockholder Entity will be released from all obligations thereunder.

 

(d)   If Parent does not complete the
Proposed Sale by the end of the 120th day following the date of the
effectiveness of the Notice, each selling Management Stockholder Entity may
elect to be released from all obligations under the applicable Request by
notifying the Parent in writing of its desire to so withdraw.  Upon receipt of that withdrawal notice, the
Notice of the relevant Management Stockholder Entity shall be null and void,
and it will then be necessary for a separate Notice to be furnished, and the
terms and provisions of clauses (a) and (b) of this Section 1
separately complied with, in order to consummate such Proposed Sale pursuant to
this Section 1, unless the failure to complete such proposed sale resulted
from any failure by any selling Management Stockholder Entity to comply with
the terms of this Section 1.

 

2.     (a)   The number of shares of Common Stock that you will
be permitted to include in a Proposed Sale pursuant to a Request will be the lesser
of (A) the number of shares of Common Stock that you have offered to sell
in the Proposed Sale as set forth in the Request (it being understood that you
may not offer to sell any unvested shares of Restricted Stock) and (B) the
number of shares of Common Stock determined by multiplying (i) the number
of shares of Common Stock to be included in the Proposed Sale by (ii) a
fraction the numerator of which is the number of shares of Common Stock owned
by you plus all shares of Common Stock which you are then entitled to
acquire under any unexercised portion of Options, to the extent such Option is
then exercisable or would become exercisable as a result of the consummation of
the Proposed Sale, and the denominator of which is the total number of shares of
Common Stock owned by the Management Stockholder Entities and all other Persons
participating in such sale 

 

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as tag-along sellers pursuant to Other Management
Stockholder Agreements (as defined in the Stockholder’s Agreement) or other
agreements (all such participants, the “Tag Along Sellers”) plus
all shares of Common Stock which you and such Persons are then entitled to
acquire under any unexercised portion of Options, to the extent such Options
are then exercisable or would become exercisable as a result of the
consummation of the Proposed Sale, plus all shares of Common Stock owned
by Parent.

 

(b)  If
one or more Tag Along Sellers elect not to include the maximum number of shares
of Common Stock which such holders would have been permitted to include in a
Proposed Sale pursuant to paragraph 2(a) (such non-included shares, the “Eligible
Shares”), then each of Parent or the remaining Tag Along Sellers, or any of
them, will have the right to sell in the Proposed Sale a number of additional
shares of their Common Stock equal to their pro rata portion of the number of
Eligible Shares, based on the relative number of shares of Common Stock then
held by each such holder, plus all shares of Common Stock which you are
then entitled to acquire under any unexercised portion of the Option, to the
extent such Option is then exercisable or would become exercisable as a result
of the consummation of the Proposed Sale, and such additional shares of Common
Stock which any such holder or holders propose to sell shall not be included in
any calculation made pursuant to paragraph 2(a) for the purpose of
determining the number of shares of Common Stock which the Management
Stockholder Entities will be permitted to include in a Proposed Sale.  Parent will have the right to sell in the
Proposed Sale additional shares of Common Stock owned by it equal to the
number, if any, of remaining Eligible Shares which will not be included in the
Proposed Sale pursuant to the foregoing.

 

3.     Except as may otherwise be
provided herein, shares of Common Stock subject to a Request will be included
in a Proposed Sale pursuant hereto and in any agreements with purchasers
relating thereto on the same terms and subject to the same conditions applicable
to the shares of Common Stock which Parent proposes to sell in the Proposed
Sale.  Such terms and conditions shall
include, without limitation: the sale price; the payment of fees, commissions
and expenses; the provision of, and customary representations and warranties as
to, information reasonably requested by Parent covering matters regarding the
Management Stockholder Entities’ ownership of shares; and the provision of
requisite indemnification; provided that any indemnification provided by
the Management Stockholder Entities shall be pro rata in proportion with the
number of shares of Common Stock to be sold; provided, further,
that no Management Stockholder Entity shall be required to indemnify any Person
for an amount, in the aggregate, in excess of the gross proceeds received in
such Proposed Sale.  Notwithstanding
anything to the contrary in the foregoing, if the consideration payable for
shares of Common Stock is securities and the acquisition of such securities by
a Management Stockholder Entity would reasonably be expected to be prohibited
under U.S., foreign or state securities laws, such Management Stockholder
Entity shall be entitled to receive an amount in cash equal to the value of any
such securities such Person would otherwise be entitled to receive.

 

4.     Upon delivering a Request,
the Management Stockholder Entities will, if requested by Parent, execute and
deliver a custody agreement and power of attorney in form and substance
reasonably satisfactory to Parent with respect to the shares of Common Stock
which are to be sold by the Management Stockholder Entities pursuant hereto (a “Custody
Agreement and Power of Attorney”). 
The Custody Agreement and Power of Attorney will contain 

 

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customary provisions and will provide, among other
things, that the Management Stockholder Entities will deliver to and deposit in
custody with the custodian and attorney-in-fact named therein a certificate or
certificates (if such shares are certificated) representing such shares of
Common Stock (duly endorsed in blank by the registered owner or owners thereof)
and irrevocably appoint said custodian and attorney-in-fact as the Management
Stockholder Entities’ agent and attorney-in-fact with full power and authority
to act under the Custody Agreement and Power of Attorney on the Management
Stockholder Entities’ behalf with respect to the matters specified therein.

 

5.     Your right pursuant hereto to
participate in a Proposed Sale shall be contingent on your material compliance
with each of the provisions hereof and your willingness to execute such
documents in connection therewith as may be reasonably requested by Parent.

 

6.     If the consideration to be
paid in exchange for shares of Common Stock in a Proposed Sale pursuant to Section 1
includes any securities, and the receipt thereof by Parent and a Management
Shareholder Entity would require under applicable law (a) the registration
or qualification of such securities or of any Person as a broker or dealer or
agent with respect to such securities or (b) the provision to any selling
Management Shareholder Entity of any information regarding the Company, its
subsidiaries, such securities or the issuer thereof that would not be required
to be delivered in an offering solely to a limited number of “accredited
investors” under Regulation D promulgated under the Securities Act of 1933, as
amended, and the rules and regulations in effect thereunder, Parent and
such Management Shareholder Entity shall not, subject to the following
sentence, have the right to sell shares of Common Stock in such proposed
sale.  In such event, Parent shall have
the right to cause to be paid to such selling Management Shareholder Entity in
lieu thereof, against surrender of the shares of Common Stock which would have
otherwise been sold by such selling Management Shareholder Entity to the
prospective buyer in the proposed sale, an amount in cash equal to the Fair
Market Value (as defined in the Stockholder’s Agreement) of such shares of
Common Stock as of the date such securities would have been issued in exchange
for such shares of Common Stock.

 

7.     (a)  If Parent or any of
its Affiliates that directly owns shares of Common Stock proposes to transfer,
directly or indirectly, a number of shares of Common Stock equal to 50% or more
of the outstanding shares of Common Stock (such Person, the “Drag-Along
Purchaser”), then if requested by Parent, the Management Stockholder
Entities shall be required to sell a number of shares of Common Stock equal to
the aggregate number of shares of Common Stock held by the Management
Stockholder Entities (including shares of Common Stock underlying exercisable
Options and unvested shares of Restricted Stock that would vest upon
consummation of such transaction) multiplied by the Tag Along Sale Percentage
(such transaction, a “Drag Transaction”).

 

(b)   Shares
of Common Stock held by the Management Stockholder Entities included in a Drag
Transaction will be included in any agreements with the Drag-Along Purchaser
relating thereto on the same terms and subject to the same conditions
applicable to the shares of Common Stock which Parent proposes to sell in the
Drag Transaction.  Such terms and
conditions shall include, without limitation: 
the pro rata reduction of the number of shares of Common Stock to be
sold by Parent and the Management Stockholder Entities to be included in the
Drag Transaction if required by the Drag-Along Purchaser; the sale price; the
payment of 

 

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fees, commissions and expenses; the provision of, and representation
and warranty as to, information reasonably requested by Parent covering matters
regarding the Management Stockholder Entities’ ownership of shares; and the
provision of requisite indemnification; provided that any
indemnification provided by the Management Stockholder Entities shall be pro
rata in proportion with the number of shares of Common Stock to be sold; provided,
further, that no Management Stockholder Entity shall be required to
indemnify any Person for an amount, in the aggregate, in excess of the gross
proceeds received in such Proposed Sale.

 

(c)   Your
pro rata share of any amount to be paid pursuant to Paragraph 3 or 7(b) shall
be based upon the number of shares of Common Stock intended to be transferred
by the Management Stockholder Entities plus the number of shares of Common
Stock you would have the right to acquire under any unexercised portion of the
Option which is then vested or would become vested as a result of the
consummation of the Proposed Sale or Drag Transaction, assuming that you
receive a payment in respect of such Option, plus the number of unvested shares
of Restricted Stock that would vest as a result of the consummation of the
Proposed Sale or Drag Transaction.

 

(d)   Notwithstanding
anything to the contrary in the foregoing, if the consideration payable for
shares of Common Stock is securities and the acquisition of such securities by
a Management Stockholder Entity would reasonably be expected to be prohibited
under U.S., foreign or state securities laws, such Management Stockholder
Entity shall be entitled to receive an amount in cash equal to the value of any
such securities such Person would otherwise be entitled to receive.

 

8.     The obligations of Parent
hereunder shall extend only to you and your transferees (“Permitted
Transferees”) who (a) are Other Management Stockholders (as defined in
the Stockholder’s Agreement), (b) are party to a Management Stockholder’s
Agreement with the Company and (c) have acquired Common Stock pursuant to
a Permitted Transfer (as defined in the Stockholder’s Agreement), and none of
the Management Stockholder Entities’ successors or assigns, with the exception
of any Permitted Transferee and only with respect to the Common Stock acquired
by such Permitted Transferee pursuant to a Permitted Transfer, shall have any
rights pursuant hereto.

 

9.     This Agreement shall
terminate and be of no further force and effect on the occurrence of the
earlier of the consummation of a Qualified Public Offering (as defined in the
Stockholder’s Agreement) or a Change in Control (as defined in the Stockholder’s
Agreement).

 

10.   All notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed effectively given: (a) upon personal delivery to the party to be
notified, (b) when sent by confirmed facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, (c) five
(5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid or (d) one (1) business day after
deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. 
All communications shall be sent to such party’s address as set forth
below or at such other address or to such other person as the party shall have
furnished to each other party in writing in accordance with this provision:

 

5

 

	
  If to Parent, at the following address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Buck Holdings, L.P.

  	
   

  
	
   

  	
  c/o KKR 2006 Fund, L.P.

  	
   

  
	
   

  	
  2800 Sand Hill Road

  	
   

  
	
   

  	
  Menlo Park, CA 94025

  	
   

  
	
   

  	
  Attention:  Michael Calbert

  	
   

  
	
   

  	
  Telecopy:  (650) 233-6553

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Simpson
  Thacher & Bartlett LLP

  	
   

  
	
   

  	
  425
  Lexington Avenue

  	
   

  
	
   

  	
  New York,
  New York 10017

  	
   

  
	
   

  	
  Attention:
  Marni J. Lerner, Esq.

  	
   

  
	
   

  	
  Telecopy:
  (212) 455-2502

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the Company, to the Company at the following address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dollar General Corporation

  	
   

  
	
   

  	
  100 Mission Ridge

  	
   

  
	
   

  	
  Goodlettsville, TN 37202

  	
   

  
	
   

  	
  Attention: General Counsel

  	
   

  
	
   

  	
  Telecopy: (615) 85-5180

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  	
  Simpson Thacher & Bartlett LLP

  	
   

  
	
   

  	
  425 Lexington Avenue

  	
   

  
	
   

  	
  New York, New York 10017

  	
   

  
	
   

  	
  Attention:  Marni J. Lerner, Esq.

  	
   

  
	
   

  	
  Telecopy:  (212) 455-2502

  	
   

  

 

If to you, to you at the address first set forth
on the corresponding signature page hereto;

 

If to your Management Stockholder’s Estate or
Management Stockholder’s Trust, to the address provided to the Company by such
entity.

 

11.   The laws of the State of
Delaware shall govern the interpretation, validity and performance of the terms
of this Agreement.  In the event of any
controversy among the parties hereto arising out of, or relating to, this
Agreement which cannot be settled amicably by the parties, such controversy
shall be finally, exclusively and conclusively settled by mandatory arbitration
conducted expeditiously in accordance with the American Arbitration Association
rules, by a single independent arbitrator. 
Such arbitration process shall take place in Nashville, Tennessee.  The decision of the arbitrator shall be final
and binding upon all parties hereto and shall be rendered pursuant to a written
decision, which contains a detailed recital of the arbitrator’s reasoning.  Judgment upon the award rendered may be
entered in any court having 

 

6

 

jurisdiction thereof.  Each party
shall bear its own legal fees and expenses, unless otherwise determined by the
arbitrator; provided that if the Management Stockholder substantially prevails
on any of his or her substantive legal claims, then the Investors shall
reimburse all legal fees and arbitration fees incurred by the Management
Stockholder to arbitrate the dispute. 
Each party hereto hereby irrevocably waives any right that it may have
had to bring an action in any court, domestic or foreign, or before any similar
domestic or foreign authority with respect to this Agreement.

 

12.   This Agreement 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.

 

13.   It is the understanding of the
undersigned that you are aware that no Proposed Sale is contemplated and that
such a sale may never occur.

 

14.   This Agreement may be amended
by Parent at any time upon notice to the Management Stockholder thereof; provided
that any amendment (i) that materially disadvantages the Management
Stockholder shall not be effective unless and until the Management Stockholder
has consented thereto in writing and (ii) that disadvantages a class of
stockholders in more than a de minimis way but less than a material way shall
require the consent of a majority of the equity interests held by such affected
class of stockholders.

 

15.   Capitalized terms used but not
defined herein shall have the meaning ascribed to such terms in the Stockholder’s
Agreement.

 

[Signatures on following pages]

 

7

 

If the
foregoing accurately sets forth our agreement, please acknowledge your
acceptance thereof in the space provided below for that purpose.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  BUCK HOLDINGS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BUCK HOLDINGS, LLC

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  M. Calbert

  
	
   

  	
   

  	
  Name: Michael M. Calbert

  
	
   

  	
   

  	
  Title: 

  

 

[signature page to Sale Participation Agreement]

 

 

	
  Accepted and agreed this 21 day of

  
	
   

  
	
  January 2008.

  
	
   

  
	
   

  
	
  /s/ Richard Dreiling

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Address:

  	
  1749 Via Di Salerno

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

[signature page to Sale Participation
Agreement]Exhibit 10.32

 

RESTRICTED STOCK AWARD AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made effective
as of January 21, 2008 (the “Grant Date”), between Dollar General
Corporation, a Tennessee corporation (hereinafter called the “Company”), and
Richard Dreiling, an employee of the Company, hereinafter referred to as the “Grantee.”  Capitalized terms not otherwise defined
herein shall have the same meanings as in the Plan or the Management
Stockholder’s Agreement (each as defined below).

 

WHEREAS, pursuant to the Employment Agreement
entered into between Grantee and the Company of even date herewith (“Employment
Agreement”), the Company desires to grant the Grantee shares of Common Stock,
pursuant to the terms and conditions of this Agreement (the “Restricted Stock
Award”), the 2007 Stock Incentive Plan for Key Employees of Dollar General
Corporation and its Affiliates (the “Plan”) (the terms of which are hereby
incorporated by reference and made a part of this Agreement), and a Management
Stockholder’s Agreement entered into by and between the Company and the Grantee
as of the date hereof (the “Management Stockholder’s Agreement”).

 

WHEREAS, the Board has determined that it would be
to the advantage and best interest of the Company and its shareholders to grant
the shares of Common Stock provided for herein to the Grantee as an incentive
for increased efforts during his employment with the Company, and has advised
the Company thereof and instructed the undersigned officer to grant said
Restricted Stock Award;

 

NOW, THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, receipt
of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

1.     Grant
of the Restricted Stock.  Subject to the terms and conditions of the
Plan, the Management Stockholder’s Agreement (and the agreements incorporated
by reference therein),  and the
additional terms and conditions set forth in this Agreement, the Company hereby
grants to the Grantee 890,000 shares of Common Stock (hereinafter called the “Restricted
Stock”).  The Restricted Stock shall vest
and become nonforfeitable in accordance with Section 2 hereof.

 

2.     Vesting.

 

(a)   Unless
otherwise provided in the Management Stockholder’s Agreement, so long as the Grantee
continues to be employed by the Company or its Subsidiaries through the
applicable vesting date: all Restricted Stock shall become vested as to 100% of
such shares upon earliest to occur of (1) a Change in Control of the
Company, (2) an initial Public Offering of the Company, (3) Grantee’s
termination without Cause by the Company or any of its Subsidiaries or by
Grantee for Good Reason or due to his death or Disability and (4) the last
day of the Company’s 2011 fiscal year. 
Any stock that becomes vested pursuant to this Section 2(a) shall
hereafter be referred to as “Vested Restricted Stock.”  “Cause,” “Good Reason” and “Disability” shall
have the meanings as defined under the Employment Agreement.

 

(b)   If
the Grantee’s employment with the Company or any of its Subsidiaries is
terminated for any reason other than as set forth in Section 2(a)(3) above,
by the Company or its Subsidiaries or by the Grantee, any Restricted Stock that
has not yet become Vested Restricted Stock at such time shall be forfeited by
the Grantee without consideration therefor.

 

3.     Book
Entry.

 

(a)   A
book entry evidencing the Restricted Stock shall be made in the Company’s stock
ledger in the Grantee’s name promptly after the date hereof.  As a condition to the receipt of this Restricted
Stock Award, the Grantee shall deliver to the Company a stock power, duly
endorsed in blank, 

 

 

relating to the Restricted Stock.

 

(b)   As
soon as practicable following the vesting of any Restricted Shares pursuant to Section 2,
the book entry of such Shares shall be changed to reflect that such Shares are
fully vested and freely transferable.

 

4.     Rights
as a Stockholder.  The Grantee shall be the record owner of the
Restricted Stock unless or until such Restricted Stock is forfeited pursuant to
Section 2 or is otherwise sold or disposed of as permitted under Section 6
of this Agreement, and as record owner shall be entitled to all rights of a
common stockholder of the Company (including, without limitation, the payment
of any dividends on the shares of Restricted Stock).

 

5.     Legend
in Stock Ledger.  The Restricted Shares shall contain a legend
stating that they are subject to transfer restrictions and shall be subject to
such stop transfer orders and other restrictions as the Board may deem reasonably
advisable under the Plan, the Management Stockholder’s Agreement or the rules,
regulations, and other requirements of the Securities and Exchange Commission,
any stock exchange upon which such Restricted Shares are listed, any applicable
federal or state laws and the Company’s Articles of Incorporation and Bylaws,
and the Committee may cause a legend or legends to be put in any book entry to
make appropriate reference to such restrictions.

 

6.     Transferability.  The Restricted Stock
may not at any time be transferred, sold, assigned, pledged, hypothecated or
otherwise disposed of unless such transfer, sale, assignment, pledge,
hypothecation or other disposition complies with the provisions of this
Agreement and the Management Stockholder’s Agreement.

 

7.     Securities
Laws.  The Company may require the Grantee to make
or enter into such written representations, warranties and agreements as the
Committee may reasonably request in order to comply with applicable securities
laws or with this Agreement.  The granting
of the Restricted Stock hereunder shall be subject to all applicable laws, rules and
regulations and to such approvals of any governmental agencies as may be
required.

 

8.     Grantee’s
Continued Employment with the Company.   Nothing contained in this Agreement or in
any other agreement entered into by the Company and the Grantee guarantees that
the Grantee will continue to be employed by the Company or any of its
Subsidiaries for any specified period of time.

 

9.     Change
in Capitalization.  If the Company shall be reorganized,
recapitalized or restructured, consolidated or merged with another corporation,
or otherwise undergo a significant corporate event, (a) the Restricted
Stock may be adjusted and (b) any stock, securities or other property
exchangeable for Common Stock pursuant to such reorganization,
recapitalization, restructuring, consolidation, merger or other corporate
event, shall be deposited with the Company and shall become subject to the
restrictions and conditions of this Agreement to the same extent as if it had
been the original property granted hereby, all pursuant to Sections 8 and 9 of
the Plan.

 

10.   Payment
of Taxes.   The Grantee shall have full responsibility,
and the Company shall have no responsibility, for satisfying any liability for
any federal, state or local income or other taxes required by law to be paid
with respect to such Restricted Stock, including upon the vesting of the
Restricted Stock; provided, however, the Grantee shall be permitted to satisfy
the minimum withholding tax obligation with respect to which such Restricted
Stock by providing notice in writing that the Grantee elects to have the number
of Shares that would otherwise be issued to the Grantee reduced by a number of
Shares having an equivalent Fair Market Value to the payment that would
otherwise be made by Grantee to the Company pursuant to this Section 10.  In connection with the
foregoing, the Grantee may, at his 

 

2

 

option, elect to recognize the fair value of the Restricted Stock upon
the Grant Date pursuant to Section 83 of the Internal Revenue Code of
1986, as amended. The Grantee is hereby advised to seek his own tax counsel
regarding the taxation of the grant of Restricted Stock made hereunder. Notwithstanding the above, if the Company’s accountants
determine that there would be no adverse accounting implications to the
Company, the Grantee may be permitted to elect to use Common Stock otherwise
deliverable to the Grantee hereunder to satisfy any such obligations, subject
to such procedures as the Company’s accountants may require.

 

11.   Limitation
on Obligations.  The Company’s obligation with respect to the
Restricted Stock granted hereunder is limited solely to the delivery to the
Grantee of shares of Common Stock on the date when such shares are due to be
delivered hereunder, and in no way shall the Company become obligated to pay
cash in respect of such obligation.  This
Restricted Stock Award shall not be secured by any specific assets of the
Company or any of its Subsidiaries, nor shall any assets of the Company or any
of its subsidiaries be designated as attributable or allocated to the
satisfaction of the Company’s obligations under this Agreement.

 

12.   Notices.  Any notice to be
given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary, and any notice to be given to the Grantee
shall be addressed to him at the address given beneath his signature
hereto.  By a notice given pursuant to
this Section 12, either party may hereafter designate a different address
for notices to be given to him.  Any
notice that is required to be given to the Grantee shall, if the Grantee is
then deceased, be given to the Grantee’s personal representative if such representative
has previously informed the Company of his status and address by written notice
under this Section 12.  Any notice
shall have been deemed duly given when enclosed in a properly sealed envelope
or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post
office or branch post office regularly maintained by the United States Postal
Service

 

13.   Governing
Law.  The laws of the State of Delaware shall
govern the interpretation, validity and performance of the terms of this
Agreement regardless of the law that might be applied under principles of
conflicts of laws.

 

14.   Arbitration.   If any contest or
dispute arises between the parties with respect to this Agreement, such contest
or dispute shall be submitted to binding arbitration for resolution in
Nashville, Tennessee in accordance with the rules and procedures of the
Employment Dispute Resolution Rules of the American Arbitration
Association then in effect.  The Company
and the Grantee shall each bear 50% of the costs related to such
arbitration   If the arbitrator
determines that the Grantee is the prevailing party in the dispute, then the
Company shall reimburse the Grantee for his reasonable legal or other fees and
expenses incurred in such arbitration subject to and within ten days after his
request for reimbursement accompanied by evidence that the fees and expenses
were incurred.  Any reimbursement
hereunder shall be paid to the Grantee promptly and in no event later than the
end of the year next following the date the expense was incurred.  The decision of the arbitrator shall be final
and binding upon all parties hereto and shall be rendered pursuant to a written
decision, which contains a detailed recital of the arbitrator’s reasoning.

 

15.   Restricted
Stock Subject to Plan and Management Stockholder’s Agreement.   The Restricted
Stock shall be subject to all terms and provisions of the Plan, to the extent
applicable to the Restricted Stock and, to the extent applicable to Vested
Restricted Stock, the Management Stockholder’s Agreement and the Sale
Participation Agreement.   In the event
of any conflict between this Agreement and the Plan, the terms of this
Agreement shall control. In the event of any conflict between this Agreement or
the Plan and the Management Stockholder’s Agreement or the Sale Participation
Agreement, the terms of this Agreement shall control.  For all purposes of the Management
Stockholder’s Agreement and Sale Participation Agreement, only Vested
Restricted Stock shall be considered “Stock” for purposes of the Management
Stockholder’s Agreement, or “Common Stock” that is eligible to be 

 

3

 

included
in any Request (as defined in the Sale Participation Agreement) for purposes of
the Sale Participation Agreement.

 

16.   Modification
of the Plan.  For all purposes under this Agreement:

 

(a)   The terms of the Plan to the contrary notwithstanding, Section 3(c) of
the Plan shall be deemed modified by disregarding the sentence: “All actions
taken and all interpretations and determinations made by the Committee in good
faith shall be final and binding upon all Participants, the Company and all
other interested persons.”

 

(b)   The terms of the Plan to the contrary notwithstanding, no
amendment shall be made to Section 9 of the Plan pursuant to Section 10(a) or
Section 10(b) of the Plan except as is necessary to satisfy Section 409A
of the Code.

 

17.   Signature
in Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

[Continued
on next page.]

 

 

4

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

 

	
   

  	
  DOLLAR
  GENERAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Challis M. Lowe

  	
   

  
	
   

  	
  Name: Challis M. Lowe

  
	
   

  	
  Title: Executive Vice Pres., HR

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
  /s/ Richard Dreiling

  	
   

  
	
   

  	
  Richard Dreiling

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