Document:

Exhibit 10
(a)

 

THIRD AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of May 16,
2005, 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, 2010, or such earlier date as the
Tranche A Commitment is terminated pursuant to this Agreement.

 

(2)                                  “Tranche
B Termination Date” means May 25, 2006, or such earlier date as the
Tranche B Commitment is terminated pursuant to this Agreement.

 

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 16, 2005 (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.

 

(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

 

2

 

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

  
	
   

  	
  Sr. Vice
  President-Finance

  	
   

  	
  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 16th day of May, 2005.

 

	
   

  	
  FAMILY DOLLAR SERVICES,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  C. Martin Sowers

  	
   

  	
  (SEAL)

  
	
   

  	
  Name:

  	
  C. Martin Sowers

  
	
   

  	
   

  	
  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-Finance

  
								

 

5Exhibit 10 (b)

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS
THIRD AMENDMENT TO CREDIT AGREEMENT (the “Amendment”) is made as of the 16th
day of May, 2005 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, the “Credit Agreement”), (c) the Second Amendment
to Credit Agreement dated as of May 27, 2004.  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,
2010, or such earlier date as the Tranche A Commitment is terminated pursuant
to this Agreement.”

 

“‘Tranche B Termination Date’ means May 25,
2006, or such earlier date as the Tranche B Commitment is terminated pursuant
to this Agreement.”

 

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:

 

(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

 

1

 

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.

 

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

  
	
   

  	
   

  	
  Sr. Vice President-Finance

  
					

 

2

 

	
  [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/  Doug Boothe

  	
   

  
	
   

  	
  Name:

  	
  Doug Boothe

  
	
   

  	
  Title:

  	
  Director

  
					

 

	
  ACKNOWLEDGED AND
  AGREED BY GUARANTORS:

  	
   

  
	
   

  	
   

  
	
  FAMILY DOLLAR
  SERVICES, INC.

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
  By:

  	
  /s/  C. Martin Sowers

  	
   

  	
   

  
	
  Name:

  	
  C. Martin Sowers

  	
   

  
	
   

  	
  Sr. Vice
  President-Finance

  	
   

  
	
   

  	
   

  
	
  FAMILY DOLLAR
  OPERATIONS, INC.

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
  By:

  	
  /s/  C. Martin Sowers

  	
   

  	
   

  
	
  Name:

  	
  C. Martin Sowers

  	
   

  
	
   

  	
  Sr. Vice
  President-Finance

  	
   

  
	
   

  	
   

  	
   

  
	
  FAMILY DOLLAR
  TRUCKING, INC.

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  
	
  By:

  	
  /s/  C. Martin Sowers

  	
   

  	
   

  
	
  Name:

  	
  C. Martin Sowers

  	
   

  
	
   

  	
  Sr. Vice
  President-Finance

  	
   

  
					

 

3

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