Document:

Form of Supplemental Agreement between the Company and each Investor.

 Exhibit 10.3 
 FORM OF SUPPLEMENTAL AGREEMENT 
 SUPPLEMENTAL AGREEMENT (the
“Agreement”), dated as of September 28, 2011, by and among Marshall Edwards, Inc. (the “Company”) and [            ] (the
“Investor”). The effectiveness of this Agreement is conditioned upon the Company and the other investor to the Amended SPA (as defined below) (the “Other Holder”) executing the Other Agreement (as defined below).

 WHEREAS, pursuant to that certain Amended and Restated Securities Purchase Agreement (the “Amended SPA”),
dated as of May 16, 2011, between the Company, the Investor and the Other Holder, the Company sold to the Investor (i) [417,609][417,608] shares (the “SPA Shares”) of the Company’s common stock, par value $0.00000002
per share (“Common Stock”), (ii) a series of warrants to purchase up to an aggregate of 1,125,282 shares of Common Stock (the “Series A Warrants”), and (iii) a series of warrants to purchase up to an
aggregate of 1,082,767 shares of Common Stock (the “Series B Warrants”, and collectively with the Series A Warrants, the “SPA Warrants”); 
 WHEREAS, the Company and the Investor now desire to amend and restate the terms of the Investor’s SPA Warrants and, as between the Company and the Investor, to amend the Amended SPA on the terms and
subject to the conditions set forth herein; 
 WHEREAS, capitalized terms used herein and not otherwise defined herein shall
have the respective meanings ascribed to them in the Amended SPA as amended hereby. 
 NOW, THEREFORE, in consideration of the
mutual covenants and agreements herein contained and for other good and valuable consideration, the hereto, intending to be legally bound, the parties hereby covenant and agree as follows: 

1. Amendment and Exchange of SPA Warrants: The terms of each of the Series A Warrants and Series B Warrants are hereby amended and
restated in the forms set forth as Exhibit A and Exhibit B, respectively, hereto. Effective as of the Closing (as defined below), the Series A Warrants and the Series B Warrants shall be deemed cancelled. The Investor shall deliver to
the Company as soon as practicable following the Closing, but in no event later than the fifth (5th) Business Day following the Closing, certificates representing the Series A Warrants and the Series B Warrants, each for cancellation by the
Company. Subject to the satisfaction or waiver by the applicable party of each of the conditions set forth in Section 7, the Amended and Restated Warrants shall be issued to the Investor in exchange for the Investor’s SPA Warrants
as set forth herein, without the payment of any additional consideration by the Investor. As used herein, (i) “Amended and Restated Series A Warrants” and “Amended and Restated Series B Warrants” refer to the
Series A Warrants and Series B Warrants, respectively, as amended and restated as provided in this Section 1, (ii) “Amended and Restated Series A Warrant Shares” and “Amended and Restated Series B Warrant
Shares” refer to the shares of Common Stock issuable upon exercise of the Amended and Restated Series A Warrants and the Amended and Restated Series B Warrants, respectively, (iii) “Amended and Restated Warrants” refer
to the Amended and Restated Series A Warrants and the Amended and Restated Series B Warrants, collectively and (iv) “Amended and Restated Warrant Shares” refer to the Amended and Restated Series A Warrant Shares and the Amended
and Restated Series B Warrant Shares, collectively. 
 2. Exercise of Series B Warrants. Under the terms and subject to
conditions hereof and in reliance upon the representations, warranties and agreements contained herein, at the Closing (as defined below) the Investor will exercise, on a cashless basis, the Amended and Restated Series B Warrants for all of the
remaining shares of Common Stock for which such Amended and Restated Series B Warrants are exercisable. 

 3. Amendment(s) to Amended SPA. (i) As it applies to the Investor, the first
sentence of Section 4(n)(iii) of the Amended SPA is hereby amended and restated as follows: 
 “From the date hereof
until September 28, 2013, the Company will not, directly or indirectly, effect any Subsequent Placement unless the Company shall have first complied with this Section 4(n)(iii).” 

(ii) The second sentence of Section 4(j) of the Amended SPA is hereby amended and restated as follows: 

“For so long as any Warrants remain outstanding, the Company shall not, in any manner, enter into agreement or affect any Dilutive
Issuance (as defined in the Warrants prior to their amendment and restatement pursuant to the Supplemental Agreement) if the effect of such Dilutive Issuance is to cause the Company to be required to issue upon exercise of any Warrant any Common
Stock in excess of that number of shares of Common Stock which the Company may issue upon exercise of the Warrants without breaching the Company’s obligations under the rules or regulations of the Principal Market or any applicable Eligible
Market, and for purposes of the foregoing, without giving effect to (w) any limitations on exercise contained in the Warrants and (y) any applicable Exercise Floor Price (as defined in the Warrants prior to their amendment and restatement
pursuant to the Supplemental Agreement) (the “Securities Limitations”).” 
 (iii) Section 1(b)(i) of
the Amended SPA is hereby amended by replacing the reference to “the aggregate exercise price paid upon exercise” in each of (x) clause (II)(x) of the first sentence of Section 1(b)(i), (y) clause (ii)(A) of the second
sentence of Section 1(b)(i) and (z) clause (iii)(A) of the third sentence of Section 1(b)(i), with “the aggregate exercise price paid upon exercise (or deemed paid upon the cashless exercise)”. For the avoidance of doubt the
exercise price of the Series B Warrants referred to in each of the above referenced clauses will be deemed to be $1.00. 
 4.
Modification Amount. In connection with the modifications described above, at the Closing, the Company shall pay to the Investor, in cash, one hundred eighty two thousand five hundred dollars ($182,500.00) (the “Modification
Amount”). The Modification Amount shall be payable by wire transfer in immediately available funds to such account as the Investor shall specify in writing at least one (1) business day prior to the Closing Date. 

5. Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement shall take place at
10:00 a.m., New York City time, on the date of this Agreement (or such other date and time as is mutually agreed to by the Company and each Investor), at the offices of Schulte Roth & Zable LLP, 919 Third Avenue, New York, New York 10022.
The date on which the Closing occurs is hereinafter referred to as the “Closing Date.” 
 6. Amendments to
Transaction Documents. (a) Except as otherwise expressly provided herein, the Amended SPA and each other Transaction Document is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects,
except that on and after the Closing Date (i) all references in the Amended SPA to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Amended SPA shall mean the
Amended SPA, as amended by this Agreement and (ii) all references in the other Transaction Documents to the “Securities Purchase Agreement”, “Amended Securities Purchase Agreement”, “Amended and Restated Securities
Purchase Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Amended SPA shall mean the Amended SPA, as amended by this Agreement. 

 (b) Each of the Transaction Documents are hereby amended as follows: 

(i) All references to “Securities Purchase Agreement”, “Amended Securities Purchase Agreement” and “Amended and
Restated Securities Purchase Agreement” shall mean, and are hereby replaced by “Amended and Restated Securities Purchase Agreement, as amended by those certain Supplemental Agreements dated as of September 28, 2011 by and between the
Company and each of the investors listed on the signature pages thereto (collectively, the “Supplemental Agreement”)”. 
 (ii) The defined term “Series A Warrants” is hereby amended to include additionally the “Amended and Restated Series A Warrants (as defined in the Supplemental Agreement)”. 

(iii) The defined term “Series B Warrants” is hereby amended to include additionally the “Amended and Restated Series B
Warrants (as defined in the Supplemental Agreement)”. 
 (iv) The defined term “Series A Warrant Shares” is
hereby amended to include additionally the “Amended and Restated Series A Warrant Shares (as defined in the Supplemental Agreement)”. 
 (v) The defined term “Series B Warrant Shares” is hereby amended to include additionally the “Amended and Restated Series B Warrant Shares (as defined in the Supplemental Agreement)”.

 (vi) The defined term “Warrants” is hereby amended to include additionally the “Amended and Restated Warrants
(as defined in the Supplemental Agreement)”. 
 (vii) The defined term “Warrant Shares” is hereby amended to
include additionally the “Amended and Restated Warrant Shares (as defined in the Supplemental Agreement)”. 
 (viii)
The defined term “Transaction Documents” is hereby amended to include additionally this Agreement, the Amended and Restated Series A Warrants and the Amended and Restated Series B Warrants. 

(ix) The defined term “Securities” is hereby amended to include additionally, the Amended and Restated Series A Warrants, the
Amended and Restated Series A Warrant Shares, the Amended and Restated Series B Warrants and the Amended and Restated Series B Warrant Shares. 
 7. Closing Deliveries. 
 a. Deliveries by Investor. At the Closing:

 i. the Investor shall deliver to the Company this Agreement, duly executed by the Investor; 

ii. the Investor shall deliver to the Company, immediately following the issuance by the Company of the Amended and Restated Series B
Warrants as set forth in Section 7(b)(ii) below, but contemporaneously with the Closing, an exercise notice (“Exercise Notice”) in substantially the form set forth in Exhibit A to the Amended and Restated Series B Warrants
relating to the cashless exercise of the Amended and Restated Series B Warrants for all of the shares of Common Stock for which such Amended and Restated Series B Warrants are exercisable; and 

iii. the Investor shall deliver to the Company such other agreements, certificates, instruments and documents as any other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 

 b. Deliveries by the Company and Conditions to Investor’s Obligations
Hereunder. At the Closing: 
 i. the Company shall deliver to the Investor this Agreement, duly executed by the Company;

 ii. the Company shall deliver to the Investor certificates representing the Amended and Restated Series A Warrants, in
substantially the form attached hereto as Exhibit A, duly executed by the Company; 
 iii. the Company shall deliver to
the Investor certificates representing the Amended and Restated Series B Warrants, in substantially the form attached hereto as Exhibit B, duly executed by the Company; 

iv. the Company shall deliver to the Investor, immediately following the delivery by the Investor of the Exercise Notice as set forth in
Section 7(a)(iii) above, but contemporaneously with the Closing, certificates representing the Amended and Restated Series B Warrant Shares; and 
 v. the Company shall deliver to the Investor such other agreements, certificates, instruments and documents as any other party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated hereby. 
 vi. the Company shall deliver to
the Investor (i) an agreement substantially identical to this Agreement (provided that only the agreement with [            ] will include a legal fee reimbursement provision) executed
and delivered by the Company and the Other Holder (the “Other Agreement”), (ii) all conditions to the closing contemplated by the Other Agreement shall have been satisfied or waived and (iii) the Other Holder shall be
deemed to have surrendered its Series A Warrants for the Amended and Restated Series A Warrants and its Series B Warrants for the Amended and Restated Series B Warrants. 
 vii. the Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with
by the Company at or prior to the Closing Date. 
 viii. the Common Stock (i) shall be designated for quotation or listed
on the Principal Market and (ii) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC have been threatened, as of the Closing Date, in
writing by the Commission. The Amended and Restated Series B Warrant Shares shall have been approved for listing on the Principal Market. 
 ix. no statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction
which prohibits the consummation of any of the transactions contemplated by this Agreement. 
 x. no action, suit or proceeding
before any arbitrator or any governmental authority shall have been commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any Subsidiary or the Investor, or any of the officers, directors or
affiliates of the Company or any Subsidiary or the Investor seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions. 

 xi. no change having a Material Adverse Effect shall have occurred since the date of this
Agreement. 
 8. Representations and Warranties of the Investor. The Investor represents and warrants that: 

a. Authority Relative to this Agreement. Such Investor has the requisite power and authority to execute and deliver this
Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly authorized, executed and delivered on behalf of such Investor and shall constitute the legal, valid and binding obligations of such Investor
enforceable against such Investor in accordance with its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
 b. Approvals.
No material consent, approval, authorization or order of, or registration, qualification or filing with, any court, regulatory authority, governmental body or any other third party is required to be obtained or made by such Investor for the
execution, delivery or performance by such Investor of this Agreement or the consummation by such Investor of the transactions contemplated hereby. 
 c. Receipt of Information. Such Investor has received all the information such Investor considers necessary or appropriate for deciding whether to enter into this Agreement and to consummate the
transactions contemplated hereby. Such Investor has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of this Agreement and the business and financial condition of the Company and to obtain
additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to it or to which it had access. Such Investor has
not received, nor is it relying on, any representations or warranties from the Company, other than as provided herein. 
 9.
Representations and Warranties of the Company. The Company represents and warrants that: 
 a. Authority Relative to
this Agreement. The Company has the requisite corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly authorized, executed and delivered
on behalf of the Company and shall constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by general principles of equity or to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

b. Approvals. No material consent, approval, authorization or order of, or registration, qualification or filing with, any court,
regulatory authority, governmental body or any other third party is required to be obtained or made by the Company for the execution, delivery or performance by the Company of this Agreement or the consummation by the Company of the transactions
contemplated hereby. 
 c. Funds. The Company will have as of the Closing sufficient cash available to pay the
Modification Amount to the Investor on the terms and conditions contained herein, and there will be no restriction on the use of such cash for such purpose. 

 d. Holding Period. For the purposes of Rule 144 under the Securities Exchange Act of
1934, as amended, the Company acknowledges that (i) the holding period of the Amended and Restated Series A Warrants (including the corresponding Amended and Restated Series A Warrant Shares, assuming the Amended and Restated Series A Warrants
are exercised pursuant to a “cashless exercise”) may be tacked onto the holding period of the Series A Warrants, (ii) the holding period of the Amended and Restated Series B Warrants (including the corresponding Amended and Restated
Series B Warrant Shares) may be tacked onto the holding period of the Series B Warrants and the Company agrees not to take a position contrary to this Section 9(d). If at any time the Company and/or the Transfer Agent requires any legal
opinions with respect to the removal of any restrictive legends from any Amended and Restated Warrant Shares, the Company agrees to cause its legal counsel to issue any such legal opinions. 

e. Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or its
agents or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic information, other than the existence of the transactions contemplated by this Agreement. The Company understands and confirms
that the Holder will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure provided to the Holder regarding the Company, or any of its Subsidiaries, their business and the transactions
contemplated hereby, furnished by or on behalf of the Company is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of
the circumstances under which they were made, not misleading. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement did not at the time of release contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. No event or
circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires, or
but for the passage of time, will require, public disclosure or announcement by the Company but which has not been so publicly announced or disclosed. 
 f. SEC Documents; Financial Statements. As of their respective filing dates when taken together with any subsequent amendments or supplements, the SEC Documents complied in all material respects
with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective filing dates,
the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or
(ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and
the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). As used herein, “SEC Documents” means all reports, schedules, forms,
statements and other documents required to be filed by the Company with the SEC pursuant to the reporting requirements of the 1934 Act (and all exhibits included therein and financial statements, notes and schedules thereto and documents
incorporated by reference therein) during the two (2) years prior to the date hereof. 

 For the avoidance of doubt, none of the representations and warranties included in
Section 2 or Section 3 of the Amended SPA shall be deemed given or made as of any date other than the date of execution of the Amended SPA and the “Closing Date”, as such term is defined in the Amended SPA. 

10. [Fees. Contemporaneously with the Closing, the Company shall reimburse
[                    ] or its designee(s) for all documented reasonable out-of-pocket costs and expenses incurred to third parties in connection with
(i) the transactions contemplated by this Agreement, (ii) all other prior negotiations between the parties relating to other possible transactions relating to the Amended SPA, the SPA Shares and the SPA Warrants and (iii) the
registration of the SPA Shares and/or the SPA Warrants (including all reasonable legal fees and disbursements in connection therewith, documentation and implementation of the transactions contemplated by this Agreement and such prior negotiations
and due diligence in connection therewith), up to a maximum of $35,000]. The Company shall pay, and hold the Investor harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket
expenses) arising in connection with any claim relating to any such payment.]1 
 11.
Disclosure of Transactions and Other Material Information. On or before 8:30 a.m., New York City time, on September 29, 2011, the Company shall file a Current Report on Form 8-K describing the terms of the transactions contemplated by
the Transaction Documents in the form required by the 1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement (and all schedules and exhibits to this Agreement), the form of the Amended and Restated
Series A Warrants and the form of the Amended and Restated Series B Warrants as exhibits to such filing (including all attachments, the “8-K Filing”). From and after the filing of the 8-K Filing with the SEC, the Investor shall not
be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents, that is not disclosed in the 8-K Filing. 

12. Miscellaneous. 
 a. Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State
of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
  

	1 	 To be included in [        ] version of the Agreement only. 

 b. Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due
execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
 c. Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. 

d. Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability
of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter
hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that
would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of
the prohibited, invalid or unenforceable provision(s). 
 e. Entire Agreement; Amendments. This Agreement supersedes all
other prior oral or written agreements between the Investor, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire
understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with
respect to such matters. No provision of this Agreement may be amended or waived in a manner that is adverse to the Investor other than by an instrument in writing signed by the Company and the Investor. No consideration shall be offered or paid to
any Person to amend or consent to a waiver or modification of any provision of this Agreement, the Other Agreement or any other Transaction Document unless the same consideration also is offered to all of the parties to the Transaction Documents.
The Company has not, directly or indirectly, made any agreements with the Investor relating to the terms or conditions of the transactions contemplated by this Agreement except as set forth in this Agreement. 

f. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the SPA Shares and the SPA Warrants. 
 g. No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

h. Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby. 

 i. Remedies. Any Person having any rights under any provision of this Agreement
shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, each Party
recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under this Agreement, any remedy at law may prove to be inadequate relief to the other parties. The Company therefore agrees that the Investor
shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security. 

[Remainder of this page intentionally left blank.] 

 IN WITNESS WHEREOF, each of the undersigned has caused this Supplemental Agreement to
be executed as of the date first written above. 
  

			
	MARSHALL EDWARDS, INC.
		
	By:	 	  

	Name:	 	Daniel P. Gold
	Title:	 	President and Chief Executive Officer
	
	[INVESTOR]
		
	By:	 	  

	Name:
	Title:

 EXHIBIT A 
 Form of Amended and Restated Series A Warrant 
 [See attached.]

 EXHIBIT B 
 Form of Amended and Restated Series B Warrant 
 [See attached.]Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
 This AGREEMENT, dated as of
September 28, 2011 (this “Agreement”), is by and among Family Dollar Stores, Inc., a Delaware corporation (the “Company”), and the other entities and persons signatory hereto (collectively, the
“Investors”). 
 WHEREAS, the Board of Directors of the Company (the “Board”) intends to
(i) increase the size of the Board from ten (10) to eleven (11) members and (ii) appoint Edward P. Garden (“EPG”) as a director to fill the newly created vacancy, with a term expiring at the Company’s annual
stockholders’ meeting occurring during fiscal year 2012 (the “2012 Annual Meeting”); 
 WHEREAS, at the
2012 Annual Meeting and the Company’s annual stockholders’ meeting occurring during fiscal year 2013 (the “2013 Annual Meeting” and, together with the 2012 Annual Meeting, the “2012 and 2013 Annual
Meetings”), the Board intends to (i) nominate EPG for election as a member of the Board with respective terms expiring at the first annual stockholders’ meeting following each such meeting and (ii) recommend that the
shareholders of the Company vote to elect EPG as a director of the Company at the 2012 and 2013 Annual Meetings; 
 WHEREAS, on
the date hereof the Investors Economically Own (as defined below) the interests in shares, each with a $0.10 par value, of the Company’s common stock (the “Common Stock”) specified on Schedule A of this Agreement;

 WHEREAS, the Investors support the appointment of EPG to the Board and his nomination and election at the 2012 and 2013
Annual Meetings; and 
 WHEREAS, concurrently with the execution and delivery of this Agreement, the Investors are withdrawing
their previously announced proposal to acquire the Company as disclosed previously by the Investors in a filing on Schedule 13D; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows: 
 ARTICLE I 
 REPRESENTATIONS 
 SECTION 1.1 Authority; Binding Agreement.
(a) The Company hereby represents that this Agreement and the performance by the Company of its obligations hereunder (i) has been duly authorized, executed and delivered by the Company, and is a valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, (ii) does not require the approval of the shareholders of the Company and (iii) does not and will not violate any law, any order of any court or other agency of
government, the certificate of incorporation of the Company or the bylaws of the Company, or any stock exchange rule or regulation, or any provision of any indenture, agreement or other instrument to which the Company or any of its properties or
assets is bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or result in the creation or imposition of, or give rise to, any
lien, charge, restriction, claim, 

  
 1 

 
encumbrance or adverse penalty of any nature whatsoever pursuant to any such indenture, agreement or other instrument. 
 (b) Each of the Investors represents and warrants that this Agreement and the performance by such Investor of its obligations hereunder (i) has been duly authorized, executed and delivered by such
Investor, and is a valid and binding obligation of such Investor, enforceable against such Investor in accordance with its terms, (ii) does not require approval by any owners or holders of any equity interest in such Investor (except as has
already been obtained) and (iii) does not and will not violate any law, any order of any court or other agency of government, the charter or other organizational documents of such Investor, as amended, or any provision of any agreement or other
instrument to which such Investor or any of its properties or assets is bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such agreement or other instrument, or result in the
creation or imposition of, or give rise to, any lien, charge, restriction, claim, encumbrance or adverse penalty of any nature whatsoever pursuant to any such agreement or instrument. 

SECTION 1.2 Interests in Common Stock. The Investors hereby represent and warrant that, as of the date hereof, they and their
Affiliates (as such term is hereinafter defined) are, collectively, the Economic Owners of such number of shares of Common Stock as is accurately and completely set forth (including, without limitation, as to the form of ownership) on Schedule
A hereto, and none of the Investors or any of their Affiliates Economically Own any other securities of the Company. During the Standstill Period, Trian Fund Management, L.P. (“TFM”), on behalf of the Investors, shall promptly
(and in any event within three business days) notify the Company in writing (a) upon the Investors, together with their Affiliates, ceasing to own, in the aggregate, the Minimum Percentage of shares of Common Stock and (b) upon the
Investors, together with their Affiliates, becoming the Economic Owners, in the aggregate, of more than 9.9% of the then outstanding shares of Common Stock (based, in the case of this clause (b), on the number of outstanding shares of Common Stock
most recently indicated by the Company as outstanding in (x) any of the Company’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q or definitive proxy statement on Schedule 14A, in each case as filed by the Company with the
Securities and Exchange Commission (the “SEC”) or (y) a written notice by the Company to TFM). At any time during the Standstill Period in which (i) the Investors, together with their Affiliates, own, in the aggregate, at
least the Minimum Percentage of shares of Common Stock and (ii) the Investors no longer report on Schedule 13D with the SEC the Investors’ Beneficial Ownership of Common Stock, TFM, on behalf of the Investors shall, upon request of the
Company (which request shall not be made more than once during any quarterly period), promptly (and no later than five business days after the request is made) provide the Company with a written report specifying the number of shares of Common Stock
Economically Owned, in the aggregate, by the Investors together with their Affiliates, as of the close of business on the date immediately preceding such request. 
 SECTION 1.3 Defined Terms. For purposes of this Agreement 
 (a) The term
“Affiliate” has the meaning set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); provided, that the term “Affiliate” shall not include any portfolio
or operating company of the Investors for which all of the following conditions are satisfied: (i) whose equity securities are registered 

  
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under the Exchange Act (or are publicly traded in a foreign jurisdiction), (ii) as to which the Investors and their Affiliates own less than a majority of the total voting power of all
outstanding voting securities and do not have representatives or designees who occupy a majority of the seats on the board of directors or other similar governing body of such portfolio or operating company and do not otherwise control (as the term
“control” is defined in Rule 12b-2 promulgated by the SEC under the Exchange Act) such portfolio or operating company, and (iii) to which no non-public information about the Company has been made available by the Director Designee or
any of the Investors or their Affiliates. For purposes of this definition, it is hereby acknowledged and agreed that funds or accounts as to which TFM or any Affiliate thereof has voting or investment power over shares of the Company’s Common
Stock shall be deemed an “Affiliate” of TFM. For purposes of this Agreement, the Investors, on the one hand, and the Company, on the other, shall not be deemed to be Affiliates of each other. 

(b) The terms “Beneficial Owner,” “Beneficially Own” and “Beneficial Ownership” shall
have the same meanings as set forth in Rule 13d-3 (“Rule 13d-3”) promulgated by the SEC under the Exchange Act. The terms “Economic Owner,” “Economically Own” and “Economic
Ownership” shall have the same meanings as “Beneficial Owner,” “Beneficially Own” and “Beneficial Ownership” except that a person will also be deemed to “Economically Own,” to be the “Economic
Owner” and to have “Economic Ownership” of (i) all shares of Common Stock which such person has the right to acquire pursuant to the exercise of any rights in connection with any securities or any agreement, regardless of when
such rights may be exercised and whether they are conditional, and (ii) all shares of Common Stock in which such person has any economic interest, including, without limitation, pursuant to a cash settled call option or other derivative
security, contract or instrument in any way related to the price of shares of Common Stock. 
 (c) The term
“Director Designee” shall mean EPG, or any replacement agreed upon by the Company and TFM in accordance with and subject to Section 2.1(e).  
 (d) “Extraordinary Matter” means (i) any merger, consolidation, share exchange, recapitalization, or other business combination, in each case as a result of which the holders of the
Common Stock of the Company immediately prior to the consummation of such transaction would cease to own at least a majority of the outstanding shares of common stock of the resulting company (or, if such resulting company is a subsidiary, then the
ultimate parent company) or (ii) any liquidation, dissolution or sale of all or substantially all of the assets of the Company, in each case referred to in (i) or (ii) that is subject to approval by the stockholders of the Company.
For the avoidance of doubt, “Extraordinary Matter” does not include a proxy contest or consent solicitation with respect to the election of directors. 
 (e) References to “fiscal year” mean the Company’s fiscal year. The 12-month period ended August 27, 2011 is fiscal year 2011. 

(f) “Minimum Percentage” means, as of any time, the ownership at such time and at all times during the prior 30
consecutive days, of the sum of: (x) Beneficial Ownership of Physical Shares of Common Stock equal to at least 3.0% of the outstanding shares of Common Stock and (y) Economic Ownership of shares of Common Stock equal to at least 2.0% of
the outstanding shares of Common Stock (based, in the case of this definition, on the outstanding 

  
 3 

 
shares of Common Stock being deemed to be the lower of (i) 120,241,598 and (ii) the number of shares of Common Stock most recently identified by the Company as outstanding in
(x) any of the Company’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q or definitive proxy statement on Schedule 14A, in each case as filed by the Company with the SEC or (y) a written notice by the Company to TFM).

 (g) “Non-Election Date” means the 45th calendar day following the 2012 Annual Meeting or 2013 Annual
Meeting, as the case may be, if, by such date, (i) the Director Designee is not elected at such meeting and (ii) the Director Designee has not been appointed to the Board with a term expiring at the Company’s next annual
stockholders’ meeting. A “Non-Election Date” will not result if (A) nomination or appointment of the Director Designee in connection with the 2012 Annual Meeting or 2013 Annual Meeting, as the case may be, is not required by this
Agreement or (B) the failure to elect or appoint the Director Designee results solely from such Director Designee’s resignation or refusal to serve. 
 (h) “Physical Shares” means, with respect to a person or entity, shares Beneficially Owned by such person or entity as to which such person or entity directly or indirectly has voting and
investment power and which are held either of record by such person or entity or through a broker, dealer, agent, custodian or other nominee that is the holder of record of such shares. For the avoidance of doubt, it is understood that
(i) “Physical Shares” shall not include shares Beneficially Owned by such person or entity solely as a result of the operation of (x) clauses (i) and (ii) of Section 1.3(b) or (y) Rule 13d-3(d)(1)(i)(A)-(B),
and (ii) the fact that shares are held in a margin account or are pledged as collateral pursuant to customary loan documentation shall not result in such shares not being considered Physical Shares unless and until such shares are liquidated
pursuant to a margin call or otherwise foreclosed upon by the applicable broker, lender or other third party. 
 (i) The
“Standstill Period” means the period from the date of this Agreement through the earliest of: 

(1) the date that is 60 calendar days prior to the first day of the notice period specified in the advance notice
provision applicable to the Company’s annual stockholders’ meeting occurring during fiscal year 2014 (whether pursuant to applicable law or regulation or the Company’s certificate of incorporation or bylaws, each as may hereafter be
amended); 
 (2) if the Company has materially breached this Agreement (including by failing
to nominate the Director Designee for election at the 2012 Annual Meeting or 2013 Annual Meeting in violation of this Agreement, or failing to appoint a replacement to the Director Designee in accordance with and subject to Section 2.1(e), and
within the timeframe set forth in Section 1.3(i)(5)), the date that TFM delivers to the Company written notice of termination of the Standstill Period specifying this Section 1.3(i)(2), provided that such notice will be effective and such
termination of the Standstill Period shall occur only if (A) such notice of termination is delivered to the Company on or after the 15th calendar day following TFM’s delivery to the Company of written notice describing the Company’s breach of
this Agreement in reasonable detail and (B) the 

  
 4 

 
Company, at the time of delivery of such notice of termination, has failed to cure such breach; 
 (3) if a Non-Election Date occurs, the date (on or after the Non-Election Date) on which TFM delivers to the Company written notice of termination of the Standstill Period specifying this
Section 1.3(i)(3); 
 (4) if the Director Designee is removed from the Board (but not including removal of
the Director Designee (A) following such Director Designee’s failure to resign in accordance with Section 2.1(a), (B) in connection with such Director Designee’s required resignation pursuant to Section 2.1(a) or
(C) under the circumstances described in Section 1.3(i)(5)(A)), the date (on or after the date of such removal) on which TFM delivers to the Company written notice of termination of the Standstill Period specifying this
Section 1.3(i)(4); or 
 (5) if both (A) the then-current Director Designee voluntarily resigns as a
director of the Company or is unable to serve as a director of the Company as a result of his or her death or incapacity and (B) either (i) TFM complies with Section 2.1(e), but the Company and TFM fail to agree on a replacement in
accordance with Section 2.1(e) within 90 calendar days following the date that the last Director Designee ceased to be a director of the Company or (ii) the Board fails to appoint the agreed replacement to the Board within 90 calendar days
following the date that the last Director Designee ceased to be a director of the Company, the date (on or after the expiration of such 90 calendar days) on which TFM delivers to the Company written notice of termination of the Standstill Period
specifying this Section 1.3(i)(5). 
 ARTICLE II 

COVENANTS 

SECTION 2.1 Director. (a) As promptly as practicable following the date of this Agreement, the Board shall (i) increase the
size of the Board from ten (10) to eleven (11) directors and (ii) appoint EPG as a director of the Company with a term expiring at the 2012 Annual Meeting. By entering into this Agreement, the Director Designee hereby irrevocably
agrees to resign as a member of the Board, upon the earlier of (x) the date that both (I) either (A) the Standstill Period has terminated or (B) the Investors, together with their Affiliates, do not own, in the aggregate, the
Minimum Percentage (each of the foregoing (A) and (B), a “Triggering Event”) and (II) five calendar days have elapsed since the Triggering Event and the Board has requested in writing the Director Designee’s resignation,
in which case the resignation shall take effect at the time the Board has delivered such request to the Director Designee and TFM, and (y) the date that the Board delivers a written request to the Director Designee and TFM for the Director
Designee’s resignation under the circumstances described in, and in accordance with, Section 3.1(b). For the avoidance of doubt, the Company may at any time and from time to time increase or decrease the size of the Board or change its
composition, provided that such increase or decrease may not affect the tenure of the Director Designee. 

  
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 (b) The Company agrees that, provided that the Standstill Period has not terminated, the
Board will: 
 (1) at the 2012 and 2013 Annual Meetings, nominate the Director Designee for election as a
director of the Company (other than in the case of such Director Designee’s refusal or inability to serve), together with the other persons so nominated on the Company’s slate in the Company’s proxy statement or proxy card for such
annual meetings, with terms expiring at the Company’s next annual stockholders’ meeting following the 2012 and 2013 Annual Meetings, respectively; and 
 (2) recommend that the shareholders of the Company vote to elect the Director Designee as a director of the Company at the 2012 and 2013 Annual Meetings. 

(c) The Company shall use reasonable best efforts (which shall include the solicitation of proxies) to ensure that the Director Designee
is elected at the 2012 and 2013 Annual Meetings, provided that the Standstill Period has not terminated prior to the date of such meeting. 
 (d) If (i) the Company fails to nominate the Director Designee and such failure constitutes a violation of the Company’s obligations under this Agreement and (ii) the period under the
Company’s bylaws for nomination of directors by stockholders has expired, or has less than 20 calendar days remaining, on the date (the “Disclosure Date”) that is the earlier of (x) the date that the Company gives written
notice to the Director Designee that the Company is nominating a slate that excludes the Director Designee in a manner that constitutes a violation of the Company’s obligations under this Agreement and (y) the date that the Company
publicly announces a slate of director nominees that excludes the Director Designee in a manner that constitutes a violation of the Company’s obligations under this Agreement, then the Company will (I) extend the deadline under the bylaws
during which the Investors may nominate directors on and subject to the terms of the bylaws (other than the time period for submitting nominations) so that the period from the Disclosure Date through the extended deadline is at least 20 calendar
days and (II) not hold the annual meeting at which such slate is up for election until at least 45 calendar days after such extended deadline. 
 (e) The Company and the Investors agree that EPG, Nelson Peltz (“NP”) and Peter W. May (“PWM”) are agreed upon and acceptable replacements for the Director Designee
(subject to the Board’s good faith completion of its customary due diligence process, including review of a Directors’ and Officers’ questionnaire, background check and interviews) in the event the then-current Director Designee
voluntarily resigns as a director of the Company or is unable to serve as a director of the Company due to death or incapacity. The Company shall not unreasonably withhold, delay or condition its consent to a replacement for the Director Designee
requested by TFM, provided that if any of EPG, NP or PWM is not unable to serve due to death or incapacity, then TFM shall be obligated to agree on at least one of EPG, NP or PWM as a replacement for the Director Designee if so requested by the
Company. No person, other than EPG, NP or PWM (each of whom has executed this Agreement), may be a Director Designee, unless he or she has executed a joinder to this Agreement solely with respect to the obligations set forth in the second sentence
of Section 2.1(a). 

  
 6 

 SECTION 2.2 Voting Provisions. During the Standstill Period, the Investors shall
cause, and shall cause their respective Affiliates to cause, all shares of Common Stock for which they have the right to vote to be present for quorum purposes and to be voted at any meeting of shareholders or at any adjournments or postponements
thereof, and to consent in connection with any action by consent in lieu of a meeting, (i) in favor of each director nominated and recommended by the Board for election at any such meeting, and (ii) against any shareholder nominations for
director which are not approved and recommended by the Board for election at any such meeting and against any proposals or resolutions to remove any member of the Board. 
 SECTION 2.3 Actions by the Investors. Each of the Investors agrees that, during the Standstill Period, it shall not, and shall cause its Affiliates not to, unless specifically requested or
authorized in writing by a resolution of the Board, directly or indirectly: 
 (a) purchase or cause to be purchased or
otherwise acquire or agree to acquire Economic Ownership of (i) any Common Stock, if in any such case, immediately after the taking of such action the Investors, together with their respective Affiliates, would, in the aggregate, Economically
Own more than 9.9% of the then outstanding shares of Common Stock (such Economic Ownership in excess of 9.9% of the then outstanding shares of Common Stock, the “Excess Amount”) (the parties agree that (A) it shall not be a
breach of this Section 2.3(a) if (1) the Investors, together with their Affiliates, inadvertently Economically Own the Excess Amount, if as soon as practicable the Investors, together with their Affiliates, divest themselves of Economic
Ownership of sufficient shares so that they cease to Economically Own any Excess Amount or (2) the Investors, together with their Affiliates, Economically Own the Excess Amount solely as a result of share purchases, reverse share splits or
other actions taken by the Company that, by reducing the number of shares outstanding (or, in the event the Company does not have a shareholder rights plan in effect or has a shareholder rights plan in effect that provides for an Economic Ownership
threshold for purposes of qualifying as an “Acquiring Person” that is greater than 10%, issuing shares of Common Stock to the Director Designee pursuant to the Company’s director compensation plan), cause the Investors, together with
their Affiliates, to Economically Own the Excess Amount, provided that the Economic Ownership of the Investors, together with their Affiliates, does not further increase thereafter, other than (x) solely as a result of further corporate actions
taken by the Company or (y) an increase in Economic Ownership not covered by the immediately preceding clause (x) that does not exceed an additional 1% of Common Stock then outstanding, and (B) for purposes of any calculation under
this Section 2.3(a), the number of shares of Common Stock then outstanding shall be the number most recently identified by the Company as outstanding in (1) any of the Company’s Annual Report on Form 10-K, Quarterly Report on Form
10-Q or definitive proxy statement on Schedule 14A, in each case as filed by the Company with the SEC or (2) a written notice by the Company to TFM), or (ii) any other securities issued by the Company; 

(b) form, join, or in any other way participate in, a “partnership, limited partnership, syndicate or other group” within the
meaning of Section 13(d)(3) of the Exchange Act with respect to the Common Stock, or deposit any shares of Common Stock in a voting trust or similar arrangement, or subject any shares of Common Stock to any voting agreement or pooling
arrangement, or grant any proxy, designation or consent with respect to any shares of Common Stock (other than to a designated representative of the Company pursuant to a proxy or consent solicitation on behalf of the Board), other than solely with
other Investors or one or more 

  
 7 

 
Affiliates (other than portfolio or operating companies) of an Investor with respect to the shares of Common Stock acquired in compliance with paragraph (a) above or to the extent such a
group may be deemed to result with the Company or any of its Affiliates as a result of this Agreement (it being understood that the holding by persons or entities of shares of Common Stock in accounts or through funds not managed or controlled by an
Investor or any Affiliate of any Investor shall not give rise to a violation of this Section 2.3(b) solely by virtue of the fact that such persons or entities, in addition to holding such shares in such manner, are investors in funds and
accounts managed by an Investor or any of its Affiliates and, in their capacity as such, are or may be deemed to be members of a “group” with the Investors within the meaning of Section 13(d)(3) of the Exchange Act with respect to the
Common Stock; provided there does not exist as between such persons or entities, on the one hand, and the Investors or any of its Affiliates, on the other hand, any agreement, arrangement or understanding with respect to any action that would
otherwise be prohibited by this Section 2.3); 
 (c) solicit proxies, designations or written consents of shareholders, or
conduct any binding or nonbinding referendum with respect to Common Stock, or make or in any way participate in any “solicitation” of any “proxy” within the meaning of Rule 14a-1 promulgated by the SEC under the Exchange Act (but
without regard to the exclusion set forth in Rule 14a-1(l)(2)(iv) from the definition of “solicitation”) to vote any shares of Common Stock with respect to any matter, or become a participant in any contested solicitation for the election
of directors with respect to the Company (as such terms are defined or used in the Exchange Act and the Rules promulgated thereunder), other than solicitations or acting as a participant in support of the voting obligations of the Investors and
their Affiliates pursuant to Section 2.2; 
 (d) seek to call, request the call of, or call a special meeting of the
shareholders of the Company, or make or seek to make a shareholder proposal (whether pursuant to Rule 14a-8 under the Exchange Act or otherwise) at any meeting of the shareholders of the Company or in connection with any action by consent in lieu of
a meeting, or make a request for a list of the Company’s shareholders, or seek election to the Board or seek to place a representative on the Board (other than as expressly set forth in Section 2.1 and Section 2.2), or seek the
removal of any director from the Board, or otherwise acting alone or in concert with others, seek to control or influence the governance or policies of the Company; 
 (e) propose, offer or participate in (i) any effort to acquire the Company or any of its subsidiaries or any material assets or operations of the Company or any of its subsidiaries, (ii) any
effort to engage in a transaction or enter into any agreement that would result in Economic Ownership by any person or entity (whether or not an Investor) or group (as defined in Section 13(d)(3) of the Exchange Act) of more than 9.9% of the
outstanding shares of Common Stock at any time or outstanding voting power of the Company at any time, (iii) any tender offer, exchange offer, merger, acquisition, share exchange or other business combination or “change in control”
(as such term is used in Item 6 of Schedule 14A) transaction involving the Company or any of its subsidiaries, or (iv) any recapitalization, restructuring, liquidation, disposition, dissolution or other extraordinary transaction involving
the Company, any of its subsidiaries or any material portion of their businesses; 
 (f) publicly disclose, or cause or
facilitate the public disclosure (including without limitation the filing of any document or report with the SEC or any other governmental agency 

  
 8 

 
or any disclosure to any journalist, member of the media or securities analyst) of, any intent, purpose, plan or proposal to obtain any waiver, consent under, or amendment of, any of the
provisions of Section 2.2 or Section 2.3, or otherwise (i) seek in any manner to obtain any waiver, consent under, or amendment of, any provision of this Agreement or (ii) bring any action or otherwise act to contest the validity
or enforceability of Section 2.2 or Section 2.3 or seek a release from the restrictions or obligations contained in Section 2.2 or Section 2.3 (it being understood, however, that the Board may adopt a resolution that modifies or
waives Section 2.2 or Section 2.3); 
 (g) make or issue or cause to be made or issued any public disclosure,
announcement or statement (including without limitation the filing of any document or report with the SEC or any other governmental agency or any disclosure to any journalist, member of the media or securities analyst) (i) in support of any
solicitation described in paragraph (c) above (other than solicitations on behalf of the Board), (ii) in support of any matter described in paragraph (d) above, (iii) concerning any potential matter described in paragraph
(e) above or (iv) negatively or disparagingly commenting about the Company or any of the Company’s directors, officers, key employees, businesses, operations or strategic plans or strategic directions; or 

(h) enter into any discussions, negotiations, agreements or understandings with any person or entity with respect to the foregoing, or
advise, assist, encourage, support or seek to persuade others to take any action with respect to any of the foregoing, or act in concert with others or as part of a group (within the meaning of Section 13(d)(3) of the Exchange Act) with respect
to any of the foregoing. 
 In the event the Company has announced or entered into a binding agreement providing for, or has
recommended that its shareholders support, an Extraordinary Matter, the provisions of this Section 2.3 shall not operate to prevent the Investors from proposing or taking any actions in furtherance of, or consummating, a competing Extraordinary
Matter, provided that all of the other provisions of this Agreement shall continue in full force and effect. 
 Notwithstanding
anything herein to the contrary, nothing in this Section 2.3 shall be deemed to in any way restrict or limit: (i) the Director Designee, in his capacity as a member of the Board, from confidentially expressing or advocating for his or her
views to the Company, the Board, officers of the Company, other directors, or at Board meetings and by voting in his or her capacity as a director; (ii) the Investors or their Affiliates from (A) discussing any matter confidentially with
the Company, the Board, officers of the Company or any directors of the Company solely to the extent that, without the prior written consent of the Company, such discussions (1) are not publicly disclosed, and would not reasonably be expected
to require public disclosure, (including, without limitation, in any document or report filed with the SEC) by an Investor or any Affiliate of any Investor at or around the time such discussions take place, and (2) are not reasonably expected
to require public disclosure (including, without limitation, in any document or report filed with the SEC) by the Company at or around the time such discussions take place, (B) voting their shares of Common Stock on any matter brought before
the shareholders of the Company in any manner that they choose, other than as expressly provided in Section 2.2, (C) selling any shares of Common Stock, including in response to a Company or third-party tender offer or exchange offer, or
(D) buying any shares of Common Stock other than as expressly provided in Section 2.3(a) (and Section 2.3(h) to the extent relating 

  
 9 

 
to Section 2.3(a)); or (iii) the Director Designee or the Investors from communicating, on a confidential basis, with attorneys, accountants or financial advisors (excluding any advisor
who has taken, takes or is expected by the Investors to take, any action that if taken by the Investors would violate Section 2.3), or as otherwise required by law. 
 SECTION 2.4 Additional Preparations by the Investors. (a) As of the date of this Agreement, the Investors are not engaged in any discussions or negotiations and do not have any agreements or
understandings, whether or not legally enforceable, concerning the acquisition of Economic Ownership of any Common Stock, other than with investors or potential investors in funds and accounts managed or to be managed by TFM or an Affiliate thereof.

 (b) The Investors hereby withdraw their previously announced proposal to acquire the Company as disclosed previously by the
Investors in a filing on Schedule 13D, and shall promptly file an amended Schedule 13D substantially in the form previously reviewed by the Company. In addition, the Company shall promptly file a current report on Form 8-K that describes this
agreement substantially in the form previously reviewed by TFM. 
 SECTION 2.5 Accommodations for Director Designee. The Company
acknowledges that: 
 (a) the acquisition by the Investors of Economic Ownership of shares of Common Stock through privately
negotiated back-to-back call and put transactions pursuant to which, simultaneously with the purchase of each call option, the Investors also sell a put option for the same number of shares of Common Stock and which may, at the option of the
Investors, be settled in shares of Common Stock, or any similar transaction that results in the Investors Economically Owning the equivalent of shares of Common Stock, cash settled call options or other derivative securities, contracts or
instruments related to the price of shares of Common Stock, holding shares of Common Stock in margin accounts or otherwise pledging shares of Common Stock as collateral security will not violate, or result in the breach of, any of the Company’s
policies applicable to directors of the Company, including, without limitation, the Company’s Board of Directors Code of Business Conduct, The Insider Trading Compliance Policy, The Code of Business Conduct and The Corporate Governance
Guidelines (for the avoidance of doubt, the foregoing does not apply with respect to and is not a waiver of the Company’s policies relating to trading windows, reporting, insider trading, short sales or pre-clearance); 

(b) the service by a principal of the Investors on the board of H.J. Heinz Company shall not, by itself, violate any of the
Company’s policies applicable to directors of the Company, including, without limitation, the Company’s Board of Directors Code of Business Conduct, The Insider Trading Compliance Policy, The Code of Business Conduct and The Corporate
Governance Guidelines (for the avoidance of doubt, the foregoing does not waive any duties or obligations arising under applicable law); 
 (c) as of the date of this Agreement, that EPG qualifies as an “independent director” for purposes of Section 303A of the Listed Company Manual of the New York Stock Exchange; 

  
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 (d) the Director Designee may serve on the boards of up to six other public companies and
the Board has taken all such action and has adopted all such resolutions necessary for the Board and the Company to permit, without any future authorization or consent of the Board (or any committee thereof), the Director Designee to serve
concurrently at any time and from time to time as a director of up to six public companies (not including the Company) and such actions and resolutions shall remain in full force and effect during the Standstill Period; and 

(e) for purposes of determining whether the Director Designee is in compliance with any stock ownership guidelines of the Company
relating to the amount of shares of Common Stock required to be owned by the Company’s directors, the Physical Shares of Common Stock Beneficially Owned by the Investors together with their Affiliates shall be included in any such
determination. 
 SECTION 2.6 Publicity. Promptly after the execution of this Agreement, the Company and the Investors
will issue a joint press release substantially in the form attached hereto as Schedule B (the “Joint Press Release”). 
 SECTION 2.7 Anti-Takeover Provisions. The Company agrees that, if during the Standstill Period it shall adopt any anti-takeover measure, including a shareholder rights plan, a board resolution or a
bylaw amendment that would have an anti-takeover effect (other than a shareholder rights plan that provides for an Economic Ownership threshold for purposes of qualifying as an “Acquiring Person” that is less than 10%), it shall provide
that such action will not prevent the Investors or their Affiliates from taking any actions during the Standstill Period that would not otherwise be prohibited during the Standstill Period by this Agreement. 

SECTION 2.8 Affiliates. TFM shall cause each of its Affiliates and each Affiliate of each of the Investors that Economically Owns
any shares of Common Stock to comply with this Agreement as if they were each an Investor. 
 ARTICLE III 

OTHER PROVISIONS 
 SECTION 3.1 Specific Performance; Remedies. (a) Each party hereto hereby acknowledges and agrees, on behalf of itself and its Affiliates, that irreparable harm would occur in the event any of
the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties will be entitled to specific relief hereunder, including, without limitation, an
injunction or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in the Chancery Court of the State of Delaware or if such court does not accept jurisdiction
then any state or federal court in the State of Delaware, or, if such courts do not accept jurisdiction then any state or federal court in the State of New York, in addition to any other remedy to which they may be entitled at law or in equity. Any
requirements for the securing or posting of any bond with such remedy are hereby waived. 
 (b) Notwithstanding any other
section in this Agreement and without limiting any other remedies the Company may have in law or equity, in the event that the Investors shall have 

  
 11 

 
materially breached this Agreement and shall not have cured such breach within 15 calendar days following written notice describing such breach in reasonable detail from the Company, the Director
Designee shall, upon the written request of the Board, resign as a member of the Board, such resignation to be effective as of the time the Board has delivered such request to the Director Designee and TFM. 

(c) Each party hereto agrees, on behalf of itself and its Affiliates, that any actions, suits or proceedings arising out of or relating
to this Agreement or the transactions contemplated hereby will be brought solely and exclusively in the Chancery Court of the State of Delaware, or if such court does not accept jurisdiction then any federal court in the State of Delaware, or, if
such courts do not accept jurisdiction then any state or federal court in the State of New York (and the parties agree not to commence any action, suit or proceeding relating thereto except in such courts), and further agrees that service of any
process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 3.3 will be effective service of process for any such action, suit or proceeding brought against any party in any such court. Each
party, on behalf of itself and its Affiliates, irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby, in the Chancery Court
of the State of Delaware or if such court does not accept jurisdiction then the federal courts in the State of Delaware, or, if such courts do not accept jurisdiction then any state or federal court in the State of New York, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an improper or inconvenient forum. 

SECTION 3.2 Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter
hereof and may be amended only by an agreement in writing executed by the parties hereto. No rights under this Agreement shall be deemed waived absent a written waiver by the party granting the waiver. 

SECTION 3.3 Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein and all
legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, if (a) given by telecopy, when such telecopy is transmitted to the telecopy number set forth below and the appropriate confirmation is
received or (b) if given by any other means, when actually received during normal business hours at the address specified in this subsection: 
 if to the Company: 
  

			
	 Family Dollar Stores, Inc.
 Post Office Box 1017
 Charlotte, North Carolina, 28201-1401

	 Facsimile:

Attention:
	  	 (704) 708-7121
 James C.
Snyder, Jr., Senior Vice President,
 General Counsel and Secretary

 with a copy to: 

  
 12 

			
	 Cleary, Gottlieb, Steen & Hamilton LLP
 One Liberty Plaza
 New York, NY 10006

	 Facsimile:

Attention:
	  	 (212) 225-3999
 Ethan A.
Klingsberg

 if to the Investors: 
  

			
	 c/o Trian Fund Management, L.P.
 280 Park Avenue, 41st Floor
 New York, New York 10017

	 Facsimile:

Attention:
	  	 (212) 451-3216
 Brian L.
Schorr, Chief Legal Officer

 SECTION 3.4 Governing Law. This Agreement and any claim, controversy or dispute arising under or
related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be governed by and construed and enforced in accordance with the laws of the State of Delaware,
without regard to any conflict of laws provisions thereof. 
 SECTION 3.5 Further Assurances. Each party agrees to take
or cause to be taken such further actions, and to execute, deliver and file or cause to be executed, delivered and filed such further documents and instruments, and to obtain such consents, as may be reasonably required or requested by the other
parties in order to effectuate fully the purposes, terms and conditions of this Agreement. 
 SECTION 3.6 Third-Party
Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns, and nothing in this Agreement is intended to confer on any person other than the parties
hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. The rights and obligations under this Agreement may not be transferred without the consent of the other parties
and any transfer in violation of this sentence shall be null and void. 
 SECTION 3.7 Counterparts; Miscellaneous. This
Agreement may be executed and delivered (including by facsimile transmission or .pdf format) in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The headings
used herein are for convenience only and the parties agree that such headings are not to be construed to be part of this Agreement or to be used in determining the meaning or interpretation of this Agreement. Unless the context otherwise requires,
whenever used in this Agreement the singular shall include the plural, the plural shall include the singular, and the masculine gender shall include the neuter or feminine gender and vice versa. Except as otherwise expressly provided herein, no
failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of such right,
power or remedy by such party preclude any other or further exercise thereof or the exercise of any other 

  
 13 

 
right, power or remedy. If any provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the
remainder of this Agreement will continue in full force and effect so long as the remaining provisions do not fundamentally alter the relations among the parties. 
 SECTION 3.9 Interpretation. Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this
Agreement, and that it has executed the same with the advice of said counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein, and any and all drafts
relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would
require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto. 

[Remainder of Page Intentionally Left Blank] 

  
 14 

 IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or caused the
same to be executed by its duly authorized representative as of the date first above written. 
  

			
	FAMILY DOLLAR STORES, INC.
		
	By:	 	 /s/ Howard R.
Levine

			
	Name:	 	Howard R. Levine
	Title:	 	Chief Executive Officer
	
	 /s/ Nelson Peltz

	Nelson Peltz
	
	 /s/ Peter W. May

	Peter W. May
	
	 /s/ Edward P. Garden

	Edward P. Garden

			
	
	TRIAN FUND MANAGEMENT, L.P.
	By:	 	Trian Fund Management GP, LLC, its general partner

			
		
	By:	 	 /s/ Edward P.
Garden

			
	Name:	 	Edward P. Garden
	Title:	 	Member
	
	TRIAN FUND MANAGEMENT GP, LLC

			
		
	By:	 	 /s/ Edward P.
Garden

			
	Name:	 	Edward P. Garden
	Title:	 	Member
	
	TRIAN PARTNERS, L.P.

			
	By:	 	Trian Partners GP, L.P,
	its general partner
	By:	 	Trian Partners General Partner, LLC

			
	its general partner
		
	By:	 	 /s/ Edward P.
Garden

			
	Name:	 	Edward P. Garden
	Title:	 	Member

  
 [Signature
Page to Agreement – Page 1 of 2] 

			
	TRIAN PARTNERS MASTER FUND, L.P.
	By:  Trian Partners GP, L.P,
	its general partner
	By:  Trian Partners General Partner, LLC
	its general partner
		
	By:	 	 /s/ Edward P.
Garden

			
	Name:	 	Edward P. Garden
	Title:	 	Member
	
	TRIAN PARTNERS PARALLEL FUND I, L.P.

			
	By:  Trian Partners Parallel Fund I General Partner, LLC, its general
partner

			
		
	By:	 	 /s/ Edward P.
Garden

			
	Name:	 	Edward P. Garden
	Title:	 	Member
	
	TRIAN PARTNERS STRATEGIC INVESTMENT FUND, L.P.

			
	By:  Trian Partners Strategic Investment Fund GP, LLC, its general partner
	By:  Trian Partners Strategic Investment Fund General Partner, LLC, its general partner
		
	By:	 	 /s/ Edward P.
Garden

			
	Name:	 	Edward P. Garden
	Title:	 	Member

			
	
	TRIAN PARTNERS MASTER FUND (ERISA), L.P.
	By:  Trian Partners (ERISA) GP, L.P., its general partner
	By:  Trian Partners (ERISA) General Partner, LLC, its general partner
		
	By:	 	 /s/ Edward P.
Garden

			
	Name:	 	Edward P. Garden
	Title:	 	Member

  
 [Signature
Page to Agreement – Page 2 of 2] 

 SCHEDULE A 
 As of September 28, 2011, the Investors Economically Own, in the aggregate, 9,965,765 shares of Common Stock. The Investors that own such shares and the number of shares that they Economically Own
are set forth below. 
  

			
	 Investor*
	  	 Shares of Common Stock Owned Physically and
Derivatively

		
	 Trian Partners Master Fund, L.P.
	  	2,778,779 (Physical) and 2,043,391 (put/call options)
		
	 Trian Partners, L.P.
	  	1,381,534 (Physical) and 726,640 (put/call options)
		
	 Trian Partners Master Fund (ERISA), L.P.
	  	157,343 (Physical)
		
	 Trian Partners Parallel Fund I, L.P.
	  	208,275 (Physical) and 83,701 (put/call options)
		
	 Trian Partners Strategic Investment Fund, L.P.
	  	1,664,228 (Physical) and 921,874 (put/call options)

  

	*	Each of Nelson Peltz, Peter W. May, Edward P. Garden, Trian Fund Management, L.P. and Trian Fund Management GP, LLC may be deemed to Economically Own each of the shares
of Common Stock owned by Trian Partners Master Fund, L.P., Trian Partners, L.P., Trian Partners Master Fund (ERISA), L.P., Trian Partners Parallel Fund I, L.P. and Trian Partners Strategic Investment Fund, L.P. 

  
 A-1

 SCHEDULE B 
 FAMILY DOLLAR CONTACT(S): 
 Kiley F. Rawlins, CFA 

(704) 849-7496 
 krawlins@familydollar.com

 Josh Braverman 
 (704) 814-3447

 jbraverman@familydollar.com 
 TRIAN
FUND MANAGEMENT, L.P. CONTACT: 
 Anne Tarbell 
 (212) 451-3030 
 atarbell@trianpartners.com 

NOT For Immediate Release 

FAMILY DOLLAR APPOINTS EDWARD GARDEN OF TRIAN PARTNERS TO BOARD OF DIRECTORS 

MATTHEWS, NC, September 29, 2011 – Family Dollar Stores, Inc. (NYSE: FDO) and Trian Fund Management, L.P. (“Trian Partners”) today
announced that Family Dollar Stores, Inc. has appointed Edward P. Garden, Chief Investment Officer and a founding partner of Trian Partners, as a director, effective immediately. With the addition of Mr. Garden, Family Dollar’s Board will
be expanded to eleven directors. 
 “We are firmly committed to enhancing value for all Family Dollar stockholders and have always welcomed
open dialogue with our shareholders,” said Howard Levine, Chairman and CEO of Family Dollar. “We are pleased to appoint Ed Garden to the Family Dollar Board and look forward to working closely with him. Ed brings to Family Dollar the
perspective of a major stockholder and years of experience investing in and working with consumer related companies. His expertise will be valuable to the Company as we continue to drive growth and further strengthen our business.” 

“Family Dollar’s continued strong performance, as evidenced by our recently reported fourth quarter and full-year 2011 results, is a testament
to the strength of our strategic plan,” continued Mr. Levine. “We are committed to continuing to provide customers with value and convenience while making impactful investments to improve the shopping experience in our stores and our
profitability.” 

  
 B-1

 Ed Garden commented, “Family Dollar is a great company with great potential. Over the past year, Trian
Partners has been engaged in constructive dialogue with Howard Levine and other members of the Family Dollar management team. We share their view that the strategic initiatives Family Dollar has implemented have significantly improved the
Company’s operating performance and future financial prospects. I look forward to contributing as a Board member and working closely and constructively with the management team and my fellow directors to help advance our shared goal of
enhancing value for all Family Dollar stockholders.” 
 Edward Garden, 50, is the Chief Investment Officer and a founding partner of Trian
Partners. In addition, Mr. Garden is a member of the board of directors of The Wendy’s Company (formerly known as Wendy’s/Arby’s Group, Inc. and prior to that Triarc Companies, Inc. (“Triarc”)). He served as Vice
Chairman and a director of Triarc from December 2004 through June 2007 and Executive Vice President from August 2003 until December 2004. Prior thereto, Mr. Garden was a Managing Director of Credit Suisse First Boston. 

In connection with the appointment of Mr. Garden to the Family Dollar Board, the Company entered into an agreement with Trian Partners and certain
of its affiliates. The complete agreement will be included as an exhibit to the Company’s Current Report on Form 8-K to be filed today with the Securities and Exchange Commission. 
 Cautionary Statements 
 Certain statements contained in this press release are
“forward-looking statements” that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address certain plans, activities or events which the Company expects
will or may occur in the future and relate to, among other things, the state of the economy, the Company’s investment and financing plans, net sales, comparable store sales, cost of sales, SG&A expenses, earnings per diluted share,
dividends and share repurchases. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statement. Consequently, all of the forward-looking statements made by the
Company in this and in other documents or statements are qualified by factors, risks and uncertainties, including, but not limited to, those set forth under the headings titled “Cautionary Statement Regarding Forward-Looking Statements”
and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission up to the date of this release. 

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company
does not undertake to update or revise these forward-looking statements even if experience or future changes make it clear that projected results expressed or implied in such statements will not be realized, except as may be required by law.

  
 B-2

 About Family Dollar Stores, Inc. 
 For more than 50 years, Family Dollar has been providing value and convenience to customers in easy-to-shop neighborhood locations. Family Dollar’s mix of name brands and quality, private brand
merchandise, appeals to shoppers in more than 7,000 stores in rural and urban settings across 44 states. Helping families save on the items they need with everyday low prices creates a strong bond with customers who refer to their neighborhood store
as “my Family Dollar.” Headquartered in Matthews, North Carolina, just outside of Charlotte, Family Dollar is a Fortune 300, publicly held company with common stock traded on the New York Stock Exchange under the symbol FDO. For more
information, please visit www.familydollar.com. 
 About Trian Partners 
 Founded in November 2005, Trian Fund Management, L.P. (“Trian Partners”) is an investment firm whose Principals are Nelson Peltz, Peter May and Ed Garden. Trian Partners employs an
operations-centric “constructivist” investment strategy that is based on its Principals’ 35+ year track record of successfully working with management teams and boards of directors to build businesses in a broad range of industries.

 # # # 

  
 B-3

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