Document:

GUIDELINES FOR LONG-TERM INCENTIVE PERFORMANCE SHARE RIGHTS AWARDS

 Exhibit 10.3 

FAMILY DOLLAR STORES, INC. 
 2006 INCENTIVE PLAN 
 Guidelines for Long-Term Incentive
Performance Share Rights Awards 
 Section 1: Purpose 
 Family Dollar Stores, Inc. (the “Company”) maintains for the benefit of eligible individuals the Family Dollar Stores, Inc. 2006 Incentive Plan (the “Plan”), which is intended to
provide flexibility to the Company in its ability to motivate, attract, and retain the services of such individuals upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. These
Guidelines for Long-Term Incentive Performance Share Rights Awards (the “Guidelines”) are intended to implement the Plan by providing eligible Team Members of the Company with an opportunity to participate in the Company’s success by
earning long-term incentive compensation awards in the form of shares of Company Stock (“Common Stock”) within the framework of the Plan (the “Performance Share Rights Awards” or the “Awards”), and as further described
in these Guidelines. 
 These Guidelines are adopted pursuant to relevant provisions of the Plan and are to be interpreted and applied in
accordance with the terms and provisions thereof. Specifically, these Guidelines provide for the grant of Performance Share Rights Awards under Article 9 of the Plan and, with respect to Team Members in the position of Vice President or above, the
grant of Qualified Performance-Based Awards under Article 14 of the Plan. Unless otherwise provided herein, capitalized terms used in these Guidelines will have the meaning given such terms in the Plan. If there is any conflict between these
Guidelines and the Plan, the terms and provisions of the Plan shall control. 
 Section 2: Scope 

The Guidelines cover Team Members who are eligible for participation in the Plan under these Guidelines and are selected by the
Committee for Performance Share Rights Awards identified in Section 1 above. Awards under these Guidelines cover three (3) year performance periods relating to such Awards which generally track the Company’s fiscal (not calendar) year
that is the 12-month period that generally runs from approximately September 1st to August 31st. (the “performance period”). The actual dates for the fiscal year are determined and announced by the Company at the beginning of each fiscal year. See Section 7 below regarding transition
periods. 
 Section 3: Eligibility for Awards and Payouts 
 The Compensation Committee of the Board (the “Committee”) and/or management of the Company will determine annually which Team Members are eligible to receive Performance Share Rights Awards
under these Guidelines. Participants are selected no later than 90 days following the beginning of each performance period or upon 

 
employment with the Company. Annual Performance Share Rights Awards under these Guidelines will result in overlapping performance periods. Additional eligibility requirements are as follows:

 New Hire and Promotion Awards (New Equity Plan Participants) 

 

	 	•	 	 A Team Member who becomes eligible for a Performance Share Rights Award under these Guidelines after the beginning of a performance period as a new
hire will be granted a prorated Award for all pending performance periods as of the Team Member’s date of hire, other than any performance period that will lapse within six months of such date of hire or promotion. A Team Member who becomes
eligible for a Performance Share Rights Award under these Guidelines after the beginning of a performance period due to promotion will be granted a prorated Award for all pending performance periods as of the Team Member’s effective date of
promotion. The dollar value of an Award and the Performance Share Rights to be issued shall be computed based upon an equitable proration recognizing the number of months of a Team Member’s service in any applicable performance period (rounded
up to the nearest full month). 

 Promotion Awards for Active Equity Plan Participants (Equity to Equity) 

 

	•	 	 A Team Member covered by these Guidelines who has a job change that results in a higher Performance Share Rights Award will have their Award for all
pending performance periods as of the date of the job change adjusted upward on a pro rata basis. The additional equity award will be calculated as the difference between the full year Award for the new position and the actual Award for the old
position for each relevant performance period, prorated for the time in the new position. Payments of all such Awards will be subject to Company performance as outlined in section 4 below. 

Payout Eligibility 
  

	•	 	 Except as otherwise provided herein, a Team Member must be classified as a regular full-time employee during the entire performance period for which an
Award is being made and at the time of the actual issuance of the Common Stock pursuant to the Performance Shares Rights Award in order to be issued Common Stock pursuant to an Award. Except as otherwise provided herein, a Team Member who is not
classified as a regular, full-time employee during the entire performance period and at the time of the actual issuance of the Common Stock will forfeit any right to the Performance Share Rights Award. Notwithstanding the preceding, if a Team
Member, whose position was previously not identified as eligible for participation in the Plan under these Guidelines (including a Team Member classified as a part-time employee), is promoted or transferred to a position eligible to participate in
the Plan under these Guidelines during the relevant performance period, such Team Member will participate in this plan, subject to its conditions, on a prorated basis, other than with respect to any

  
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performance period that will lapse within six months of such date of promotion or transfer. The prorated calculation will be based upon the number of weeks and respective salary in each position.

  

	•	 	 A Team Member on leave of absence, regardless of type, will be issued Common Stock pursuant to a Performance Share Rights Award only upon return within
one year of the commencement of such leave to regular, full time work/active status during the sixty (60) day period following the end of the first performance period to end concurrent with or immediately following, as applicable, the date of
the Team Member’s return to regular, full-time active status; provided, however, that the Team Member must be classified as a regular, full-time employee on the payment date in order to receive payment. A Team Member who is not classified as a
regular, full-time employee on the applicable payment date following return from leave (other than approved military leave) will forfeit any right to the Award. A Team Member who is on an approved military leave will be issued Common Stock pursuant
to such Award at the time such shares are issued even if the Team Member has not returned to regular, full time work/active status at that time. 

  

	•	 	 The Company will not issue common stock pursuant to the Performance Share Rights Award for any performance period if the Team Member’s most recent
annual performance rating is Unsatisfactory/Does Not Meet Expectations. 

  

	•	 	 These Guidelines do not in any manner restrict the right of the Company or the Team Member to terminate employment at any time, for any reason, with or
without cause. See Section 5 below for further information on the consequences of termination of employment during a pending performance period. 

 Section 4: Payout Calculation of PSR Awards 
 At the time a Team Member is
selected for an Award under these Guidelines for a particular performance period, the Team Member will be assigned a “target” number of shares of Common Stock to be earned if the Company’s performance level is at the 50% level in
comparison to the peer group (as set forth below) for the performance period. “Target” is defined as the actual number of shares approved and awarded. Any payout is based on cumulative yearly performance over the relevant performance
period. The Award will be expressed as a number of Performance Share Rights and will be evidenced by an Award Certificate consistent with the provisions of the Plan. The actual payout for the performance period, if any, will be determined as a
percentage of the target Award payout depending on Company performance. 

  
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	•	 	 Company performance for each performance period will be based equally upon (i) the Company’s average annual return on equity
(“ROE”) for each fiscal year during the performance period and (ii) the Company’s pre-tax net income growth rate over the performance period, compounded annually. For purposes of these Guidelines, ROE will be calculated by
dividing the Company’s pre-tax net income for the relevant fiscal year by the total shareholders’ equity. 

  

	•	 	 Actual Company performance for each criteria above at the end of the relevant performance period is then measured against the performance of a peer
group of companies selected prior to, or within 90 days after the beginning of, the performance period. The Award levels for the relevant performance period will be adjusted at the end of the performance period to reflect the Company’s
performance relative to the peer group. Any such adjustment will generally range from 0% (i.e., no payout for the performance period) to 200% of the target Award per the following chart (with linear interpolation between the thresholds set forth
below): 

  

					
	 Performance Against Performance Peer Group
	  	Percent of
Award
Adjustment
(to Target Award)	 
	
90th Percentile
	  	 	200	% 
	
75th Percentile
	  	 	150	% 
	
50th Percentile
	  	 	100	% 
	
40th Percentile
	  	 	75	% 
	
30th Percentile
	  	 	25	% 
	 <30th Percentile
	  	 	0	% 

  

	•	 	 In addition, under relevant provisions of the Plan, the determination of ROE and net-income-growth and the peer group of companies for the relevant
performance period may be further adjusted, collectively or individually, to reflect extraordinary events or circumstances affecting the Company or its business, or any of the companies included in the peer group, which render any such goals or peer
group selection unsuitable. 

  

	•	 	 These Guidelines do not in any manner restrict the right of the Company to modify performance measures, targets, cycles, or any other term or condition
of these Guidelines, as the Company deems it necessary or appropriate, subject to the terms of the Plan. 

  
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 Section 5: Termination of Employment or Plan Participation 

Notwithstanding anything in these Guidelines to the contrary, the following provisions will apply to any Team Member whose employment with the Company
terminates. 
  

	•	 	 In the event of a termination of a Team Member’s employment, either (i) as a result of the Team Member’s death, Disability or Retirement
(ii) by the Company without Cause, payments with respect to any outstanding Performance Share Rights Awards will be based on actual Company performance, as set forth in Section 4 above, for (A) the fiscal year in which the date of
termination occurs plus (B) each completed fiscal year during the applicable performance period immediately preceding the date of termination. Common stock awarded pursuant to the Performance Share Rights will be issued on a pro-rata basis
based on the actual number of months worked in the applicable performance period. The pro ration will be determined by multiplying the number of Performance Shares Rights to which the Team Member would have been entitled based on Company performance
by a fraction the numerator of which is the number of calendar months in the performance period of the Team Member’s actual employment with the Company (including the full calendar month in which the Team Member’s employment terminated)
and the denominator of which is the total number of calendar months in the performance period. Payments under this paragraph will be made no later than two and one-half (2 1/2) months following the end of the fiscal year in which the date
of termination occurs. 

  

	•	 	 In the case of death or Disability, individual performance of the Team Member will be ignored. In either event, payments under this paragraph shall be
made no later than two and one-half
(2 1/2) months following the end of the fiscal
year in which the date of termination of employment occurs. 

  

	•	 	 In the event of termination of a Team Member’s employment with the Company before the end of any relevant performance period or the actual
issuance by the Company of Common Stock pursuant to the Performance Share Rights Award, either (i) by the Company for Cause, or (ii) by the Team Member for any reason (other than death, Disability or Retirement), any outstanding Awards for
all relevant performance periods will be immediately forfeited. 

  

	•	 	 In the event that an active Team Member leaves the Plan for any reason but remains employed by the company, the Team Member’s Performance Share
rights will be paid on a pro-rata basis based on the actual number of months worked in each relevant performance period, including the full calendar month in which the Team Member’s plan participation ended. Payments will be made during the
same cycle as active plan participants and will be subject to the Company performance criteria outlined in section 4 of this document. 

  

	•	 	 To the extent a Team Member is or becomes Retirement-eligible during a performance period, (i) the Team Member will not be considered to have

  
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terminated from employment under these Guidelines unless the Team Member has had a “separation from service” with the Company within the meaning of Code Section 409A and the
Company’s 409A Administrative Policies and (ii) to the extent required by Code Section 409A and the Company’s 409A Administrative Policies, payment will not be made before the date that is six months after the Team Member’s
termination from employment. 

 Section 6: Additional Rules 

 

	•	 	 All payments under these Guidelines are considered supplemental pay and will be taxed as such. Appropriate withholding and deductions will be taken
from such payments. In accordance with the Plan, the Company may require tax withholding to be satisfied through withholding of shares of Common Stock otherwise payable under the Award. 

 

	•	 	 These Guidelines cannot be changed or modified by a verbal communication or course of dealing but only by a written communication signed by the
Chairman, Vice Chairman, and/or the Chief Executive Officer (“CEO”) of the Company or any officer designated by one of them; provided, however, that any change or modification shall comply with the provisions of Internal Revenue Code
(“Code”) Section 409A. 

  

	•	 	 Payouts earned under these Guidelines will be paid no later than two and one-half (2 1/2) months following the end of the relevant performance period
in the form of one (1) share of the Company’s Common Stock for each whole Performance Share Right that is payable under the Plan and these Guidelines, rounded up to the next whole share. Notwithstanding the foregoing, the Company may
permit recipients of Awards to elect to defer receipt of payment of such Awards under such terms and conditions as the Company may prescribe in accordance with the requirements of Code Section 409A. 

 

	•	 	 In the event of major economic changes, catastrophic events, or any other circumstances not contemplated by the Company (but subject to the Plan
provisions relating to Qualified Performance-Based Awards), the Committee, the Chairman, Vice Chairman and/or the CEO of the Company reserves the right to alter, amend, or terminate these Guidelines and any Awards hereunder; provided, however, that
any change or modification shall comply with the provisions of Internal Revenue Code Section 409A. 

  

	•	 	 The Chairman of the Company will make all final decisions, rulings and interpretations under these Guidelines (subject to the Plan provisions relating
to Qualified Performance-Based Awards, which may require action by the Committee). By participating in the Plan under these Guidelines, each Team Member agrees that such decisions, rulings and interpretations will be final and that each Team Member
will be bound by them. Each Team Member further agrees that if and when any circumstances arise relating to these Guidelines, which are not covered by this description of the Plan, the Team Member will be bound by the final decision, ruling or
interpretation of the Chairman. 

  
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	•	 	 The benefits provided hereunder shall be paid in such a manner as to satisfy Code Section 409A or an exception to the application of Code
Section 409A, such as the short-term deferral exception and/or the separation pay exception. To the extent that those benefits become subject to Code Section 409A, the Plan shall be interpreted and construed to the fullest extent allowed
under Code Section 409A and the applicable guidance thereunder to satisfy the requirements of an exception from the application of Code Section 409A or, alternatively, to comply with such Code Section and the applicable guidance thereunder
and to avoid any additional tax thereunder. To the extent compliance with the requirements of Treas. Reg. Section 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Code
Section 409A to payments due following a separation from service, then notwithstanding any other provision of this Plan, any such payments that are otherwise due within six (6) months following the separation from service will be deferred
and paid to the Team Member in a lump sum immediately following that six (6) month period. 

 Section 7:
Qualified Performance Based Awards 
 Notwithstanding anything in these Guidelines to the contrary, the following provisions will apply
to any Team Member who is a vice president or above at the time the Awards are granted under these Guidelines. Awards under this Section 7 are intended to satisfy the Section 162(m) Exemption applicable to Qualified Performance-Based
Awards under Article 14 of the Plan. Please refer to the Plan document for further information. 
  

	•	 	 All determinations under these Guidelines will be made by the Committee which, pursuant to Section 4.1 of the Plan, will consist of all the
members of the Compensation Committee who are “outside directors” within the meaning of Section 162(m) of the Code. 

  

	•	 	 The Committee will establish within 90 days after the beginning of each performance period the target Award payout for each Team Member covered by this
Section 7, the peer group of companies and potential payout adjustments relating thereto for the relevant performance period. 

  

	•	 	 Notwithstanding the foregoing, the Committee will adjust ROE and net-income-growth, the peer group of companies and potential payout adjustments
relating thereto for the relevant performance period, collectively or individually, with respect to each Team Member covered by this Section 7 to adequately reflect the occurrence, during the performance period, of any of the events described
in Sections 14.2 and 14.4 of the Plan. 

  

	•	 	 Payment of any Award under these Guidelines to any Team Member covered by this Section 7 is conditioned upon the written certification of the
Committee that the performance goals and any other material conditions applicable to such Award were satisfied. 

  
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	•	 	 The Committee will retain the discretion to decrease, but not increase, the Award otherwise payable to any Team Member covered by this Section 7
in accordance with the applicable performance formula described above. In no event will the Award otherwise payable to any Team Member covered by this Section 7 in accordance with the applicable performance formula described above exceed
1,000,000 shares of Company Stock. 

  

	•	 	 Consistent with Section 1 above, payment of any Award under these Guidelines to any Team Member covered by this Section 7 is conditioned upon
the Plan having been previously approved by the shareholders of the Company. 

 Adopted: September 28, 2005 

Amended: January 19, 2006; March 27, 2007; August 28, 2007; October 13, 2009; May 9, 2012 

  
 8EX-10.3

 EXHIBIT 10.3 
 MONSANTO COMPANY 2005 LONG-TERM INCENTIVE PLAN (AS AMENDED AND RESTATED AS 

OF JANUARY 24, 2012) 
 Terms and Conditions of Restricted Share Grant to Non-Employee Director [Elective Retainer Amount] 
 To                  
 You have elected to receive an Award of Restricted Shares (the “Restricted Shares”) under the Monsanto Company 2005 Long-Term Incentive Plan (as Amended and Restated as of January 24, 2012)
(the “Plan” and, together with the Monsanto Company Non-Employee Director Equity Incentive Compensation Plan, the “Plans”). The Grant Date and the number of Restricted Shares covered by this Award are set forth in the document
you have received entitled “Restricted Shares Statement.” The Restricted Shares Statement and these Terms and Conditions collectively constitute the Award Certificate for the Restricted Shares, and together with the Plans, describe the
provisions applicable to the Restricted Shares. 
 1. Definitions. Each capitalized term not otherwise defined herein has
the meaning set forth in the Plan or, if not defined in the Plan, in the attached Restricted Shares Statement. The “Company” means Monsanto Company, a Delaware corporation incorporated February 9, 2000. 

2. Delivery of Restricted Shares. (a) As of the Grant Date, the Restricted Shares have been registered in your name in a
book-entry account maintained by Computershare Shareowner Services LLC, the Company’s transfer agent. This registration constitutes delivery of the Restricted Shares to you for all purposes. This book-entry account indicates that the Restricted
Shares are subject to these Terms and Conditions. 
 (b) Until such time (if any) as the Restricted Shares vest, you may not
sell, assign, transfer, pledge, hypothecate, give away, or otherwise dispose of them. Any attempt on your part to dispose of the Restricted Shares will result in their being forfeited. However, you shall have all other rights of a shareowner of the
Company with respect to the Restricted Shares, including the right to vote such stock at any meeting of the shareowners of the Company and the right to receive all dividends and other distributions declared and paid with respect to the Restricted
Shares (“Dividends”). If any of the Restricted Shares are forfeited before vesting, then (i) you shall not receive any Dividends for which the record date is after the day after such forfeiture occurs, and (ii) from and after the
day after such forfeiture occurs, you shall no longer have any other rights as a shareowner with respect to the Restricted Shares. 
 3. Vesting. The Restricted Shares shall vest on the last day of each of the [12] months immediately following the Grant Date, as follows: (i) [10] installments of [XXX] Restricted Shares each,
with each installment vesting on the last day of each of the [10] months immediately following the Grant Date, with the first installment vesting on [September 30, 201X] and the last installment vesting on [June 30, 201X], and (ii) [two]
installments of [XXX] Restricted Shares each, with each installment vesting on the last day of each month, with the first installment vesting on 

 
[July 31, 201X] and the last installment vesting on August 31, [201X], provided that in each case of (i) and (ii) you remain a Director on the applicable vesting day, and subject
to Section 4 below. If your Termination Date occurs on or before August 30, [201X], the Restricted Shares that are scheduled to vest on or after the Termination Date shall be forfeited. Notwithstanding anything to the contrary in the Plan
or Section 7 below, Section 11.17 of the Plan shall have no application with respect to the Restricted Shares. 
 4.
Taxes. You must make arrangements for the payment of any taxes that are required to be paid in connection with the vesting of the Restricted Shares. If you make an election under Section 83(b) of the Code to be taxed on the Restricted
Shares upon receiving them, you must notify the Company within ten days after making such election. You must make arrangements for the payment of any taxes that are required to be paid as a result of your election. 

5. Effect of Award Certificate; Severability. The Award Certificate shall be binding upon and shall inure to the benefit of any
successor of the Company and the person or entity to whom the Restricted Shares may have been transferred by will, the laws of descent and distribution or designation. The invalidity or enforceability of any provision of the Award Certificate shall
not affect the validity or enforceability of any other provision of the Award Certificate. 
 6. Amendment. The terms and
conditions of the Award Certificate may not be amended in a manner adverse to you without your consent. 
 7. Plan
Interpretation. The Award Certificate is subject to the provisions of the Plans, and all of the provisions of the Plans are hereby incorporated into the Award Certificate as provisions of the Restricted Shares. If there is a conflict between the
provisions of the Award Certificate and the Plan, the provisions of the Plan govern (and, in the case where there is a conflict between the provisions of the Plans, the terms of the Plans regarding the resolution of such conflict shall govern). If
there is any ambiguity in the Award Certificate, any term that is not defined in the Award Certificate, or any matters as to which the Award Certificate is silent, the Plans shall govern, including, without limitation, the provisions of the Plans
addressing construction, governing law, and the powers of the People and Compensation Committee of the Board of Directors of the Company, among others, to (i) interpret the Plans, (ii) prescribe, amend and rescind rules and regulations
relating to the Plans, (iii) make appropriate adjustments to the Restricted Shares to reflect non-United States laws or customs or in the event of a corporate transaction, and (iv) make all other determinations necessary or advisable for
the administration of the Plans.

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