Document:

First Amendment to Second Amended and Restated Revolving Credit Agreement

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this “Amendment”), is made and entered into as of December 8, 2006, by and among DOLLAR GENERAL CORPORATION, a Tennessee corporation (the “Borrower”), the several banks and other financial institutions from time to time party hereto (collectively, the “Lenders”), SUNTRUST BANK, in its capacities as Issuing Bank (the “Issuing Bank”) and Administrative Agent (the “Administrative Agent”) for the Lenders, KEYBANK NATIONAL ASSOCIATION and BANK OF AMERICA, N.A., as Co-Syndication Agents for the Lenders (the “Syndication Agents”), and U.S. BANK NATIONAL ASSOCIATION and REGIONS BANK, as Co-Documentation Agents for the Lenders (the “Co-Documentation Agents”).

W I T N E S S E T H:

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to that certain Second Amended and Restated Revolving Credit Agreement, dated as of June 28, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Lenders have made certain financial accommodations available to the Borrower; 

WHEREAS, the Borrower has requested that the Lenders amend certain provisions of the Credit Agreement and subject to the terms and conditions hereof, the Lenders are willing to do so; 

NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of all of which are acknowledged, the Borrower, the Lenders and the Administrative Agent agree as follows:

1.

Amendments.  

(a)  The definition of “Consolidated EBITR” as set forth in Section 1.1 of the Credit Agreement is hereby amended by deleting such definition in its entirety and substituting in lieu thereof the following definition:

“Consolidated EBITR” shall mean, for the Borrower and its Subsidiaries for any period, an amount equal to (i) Consolidated EBITDAR for such period, less (ii) to the extent included in such Consolidated EBITDAR, all depreciation and amortization for such period, determined on a consolidated basis in accordance with GAAP.

(b)  Section 5.10(a) of the Credit Agreement is hereby amended by deleting each reference to the date “December 31, 2006” in clauses (i) and (ii) of the “proviso” at the end of said Section, and substituting in each case in lieu thereof the date “March 31, 2007.”

(c)  Section 6.2 of the Credit Agreement is hereby amended by deleting Section 6.2 (“EBITR to Interest and Rents Ratio”) in its entirety and substituting in lieu thereof the following Section 6.2:

Section 6.2.  EBITR to Interest and Rents Ratio.  The Borrower and its Subsidiaries shall maintain on a consolidated basis, as of the end of each Fiscal Quarter of each Fiscal Year identified below, a ratio of (i) Consolidated EBITR to (ii) Consolidated Interest Expense plus without duplication Consolidated Rent Expense (all such amounts to be calculated for the Fiscal Quarter then ending and the immediately preceding three (3) Fiscal Quarters) that is greater than the corresponding minimum ratio set forth below with respect to each such Fiscal Quarter:

		
	Fiscal Quarter/

Fiscal Year

	

Minimum Ratio

	1st, 2nd and 3rd 

Fiscal Quarters of

Fiscal Year ‘06

	2.00:1.00

	4th Fiscal Quarter of

Fiscal Year ’06;

1st, 2nd, 3rd and 4th 

Fiscal Quarters of Fiscal Year ‘07

	1.30:1.00

	1st and 2nd Fiscal

Quarters of Fiscal Year ‘08

	1.50:1.00

	3rd and 4th Fiscal

Quarters of 

Fiscal Year ‘08

	1.75:1.00

	1st Fiscal Quarter

of Fiscal Year ’09 and

each Fiscal Quarter thereafter

	2.00:1.00

2.

Conditions to Effectiveness of this Amendment.  Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of the Lenders hereunder, it is understood and agreed that this Amendment shall not become effective, and the Borrower shall have no rights under this Amendment, until the Administrative Agent shall have received (i) reimbursement or payment of its costs and expenses incurred in connection with this Amendment or the Credit Agreement (including reasonable fees, charges and disbursements of 

King & Spalding LLP, counsel to the Administrative Agent), and (ii) executed counterparts to this Amendment from the Borrower, each of the Guarantors and the Required Lenders.

3.

Representations and Warranties.  To induce the Lenders and the Administrative Agent to enter into this Amendment, each Loan Party hereby represents and warrants to the Lenders and the Agent that: 

(a)

The execution, delivery and performance by such Loan Party of this Amendment (i) are within such Loan Party’s power and authority; (ii) have been duly authorized by all necessary corporate and shareholder action; (iii) are not in contravention of any provision of such Loan Party’s certificate of incorporation or bylaws or other organizational documents; (iv) do not violate any law or regulation, or any order or decree of any Governmental Authority; (v) do not conflict with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which such Loan Party or any of its Subsidiaries is a party or by which such Loan Party or any such Subsidiary or any of their respective property is bound; (vi) do not result in the creation or imposition of any Lien upon any of the property of such Loan Party or any of its Subsidiaries; and (vii) do not require the consent or approval of any Governmental Authority or any other person;

(b)

This Amendment has been duly executed and delivered for the benefit of or on behalf of each Loan Party and constitutes a legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms except as the enforceability hereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights and remedies in general; and

(c)

After giving effect to this Amendment, the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects, and no Default or Event of Default has occurred and is continuing as of the date hereof.

4.

Reaffirmations and Acknowledgments.  Each Guarantor acknowledges and agrees to the terms of this Amendment and jointly and severally ratifies and confirms the terms of the Guaranty Agreement with respect to the indebtedness now or hereafter outstanding under the Credit Agreement as amended hereby and all promissory notes issued thereunder. Each Guarantor acknowledges that, notwithstanding anything to the contrary contained herein or in any other document evidencing any indebtedness of the Borrower to the Lenders or any other obligation of the Borrower, or any actions now or hereafter taken by the Lenders with respect to any obligation of the Borrower, the Guaranty Agreement (i) is and shall continue to be a primary obligation of the Guarantors, (ii) is and shall continue to be an absolute, unconditional, joint and several, continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force and effect in accordance with its terms.  Nothing contained herein to the contrary shall release, discharge, modify, change or affect the original liability of the Guarantors under the Guaranty Agreement.  

5.

Effect of Amendment.  Except as set forth expressly herein, all terms of the Credit Agreement, as amended hereby, and the other Loan Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Borrower to the Lenders and the Administrative Agent.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.  This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement.

6.

Governing Law.   This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of Georgia and all applicable federal laws of the United States of America.

7.

No Novation.  This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the Credit Agreement or an accord and satisfaction in regard thereto.

8.

Costs and Expenses.  The Borrower agrees to pay on demand all costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of outside counsel for the Administrative Agent with respect thereto.

9.

Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile transmission or by electronic mail in pdf form shall be as effective as delivery of a manually executed counterpart hereof.

10.

Binding Nature.  This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles, and assigns.

11.

Entire Understanding.  This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto.

[Signature Pages To Follow]

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

		
	 	BORROWER:

		
	 	DOLLAR GENERAL CORPORATION

	 	(a Tennessee corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

		
	 	GUARANTORS:

		
	 	DOLGENCORP, INC.

	 	(a Kentucky corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	DOLGENCORP OF NEW YORK, INC.

	 	(a Kentucky corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

		
	 	DOLGENCORP OF TEXAS, INC.

	 	(a Kentucky corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

		
	 	DG LOGISTICS, LLC

	 	(a Tennessee limited liability company)

					
	 	 	By:

	DG Transportation, Inc., Sole

	 	 	 	Member

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	DOLLAR GENERAL INVESTMENT,

	 	INC.

	 	(a Delaware corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

		
	 	DGC PROPERTIES LLC

	 	(a Delaware limited liability company)

				
	 	 	By:

	Dolgencorp., Inc., Sole Member

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

		
	 	DOLLAR GENERAL PARTNERS

	 	(a Kentucky general partnership)

					
	 	 	By:

	Dollar General Corporation,

	 	 	 	General Partner

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

					
	 	 	By:

	Dollar General Merchandising, Inc.,

	 	 	 	General Partner

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	DG PROMOTIONS, INC.

	 	(a Tennessee corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	DGC PROPERTIES OF KENTUCKY LLC

	 	(a Delaware limited liability company)

				
	 	By:

	Dollar General Partners, a Kentucky

	 	 	 	Partnership, Sole Member

					
	 	 	By:

	Dollar General Corporation,

	 	 	 	General Partner

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

					
	 	 	By:

	Dollar General Merchandising,

	 	 	 	Inc., General Partner

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

		
	 	DOLLAR GENERAL MERCHANDISING,

	 	INC.

	 	(a Tennessee corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

		
	 	DG TRANSPORTATION, INC.

	 	(a Tennessee corporation)

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	Wade Smith

	 	 	Title:

	Treasurer

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	DG RETAIL, LLC

	 	(a Tennessee limited liability company)

				
	 	By:

	Dollar General Corporation, its

	 	 	 	Managing Member

				
	 	By:

	/s/ Wade Smith

	 	 	Name:

	 
	 	 	Title:

	 

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	LENDERS:

		
	 	SUNTRUST BANK,

	 	as Administrative Agent, as Issuing Bank, as

	 	Swingline Lender, and as a Lender

				
	 	By:

	/s/ Scott Corley

	 	 	Name:

	Scott Corley

	 	 	Title:

	Managing Director

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	BANK OF AMERICA, N.A.,

	 	as Co-Syndication Agent and as a Lender

				
	 	By

	/s/ John Pocalyko

	 	 	Name:

	John Pocalyko

	 	 	Title:

	Senior Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	KEYBANK NATIONAL ASSOCIATION,

	 	as Co-Syndication Agent and as a Lender

				
	 	By:

	/s/ Marianne T. Meil

	 	 	Name:

	Marianne T. Meil

	 	 	Title:

	Senior Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	REGIONS BANK,

	 	as Co-Documentation Agent and as a Lender

	 	(successor by merger to AmSouth Bank)

				
	 	By:

	/s/ Monty Trimble

	 	 	Name:

	Monty Trimble

	 	 	Title:

	Sr. Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	U.S. BANK NATIONAL ASSOCIATION,

	 	as Co-Documentation Agent and as a Lender

				
	 	By:

	/s/ Frances W. Josephic

	 	 	Name:

	Frances W. Josephic

	 	 	Title:

	Vice President

	 	 	 	U.S. Bank, N.A.

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	FIFTH THIRD BANK, as a Lender

				
	 	By:

	/s/ John K. Perez

	 	 	Name:

	John K. Perez

	 	 	Title:

	Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	NATIONAL CITY BANK, as a Lender

					
	 	By:

	/s/ Michael J. Durbin

	 	 	Name:

	Michael J. Durbin

	 	 	Title:

	Senior Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	BRANCH BANKING & TRUST CO., as a

	 	Lender

					
	 	By:

	/s/ R. Andrew Beam

	 	 	Name:

	R. Andrew Beam

	 	 	Title:

	Senior Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	LASALLE BANK NATIONAL

	 	ASSOCIATION, as a Lender

				
	 	By:

	/s/ Mark Mital

	 	 	Name:

	Mark Mital

	 	 	Title:

	Senior Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]

		
	 	HUNTINGTON NATIONAL BANK,

	 	as a Lender

				
	 	By:

	/s/ Steven P. Clemens

	 	 	Name:

	Steven P. Clemens

	 	 	Title:

	Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT]Amendment to 1993 Employee Stock Incentive Plan

AMENDMENT TO

DOLLAR GENERAL CORPORATION

1993 EMPLOYEE STOCK INCENTIVE PLAN

The third paragraph of Section 3 of the Dollar General Corporation 1993 Employee Stock Incentive Plan (the “Plan”) is amended, effective as of November 28, 2006, to read in its entirety as follows:

In the event of any merger, reorganization, consolidation, recapitalization, Stock dividend, Stock split or other change in corporate structure affecting the Stock, such substitution or equitable adjustment shall be made in the aggregate number of shares reserved for issuance under the Plan, in the number and option price of shares subject to outstanding Options granted under the Plan, in the number and purchase price of shares subject to outstanding Stock Purchase Rights under the Plan, and in the number of shares subject to other outstanding awards granted under the Plan as shall be determined solely by the Committee, provided that the number of shares subject to any award shall always be a whole number.  Such adjusted option price shall also be used to determine the amount payable by the Company upon the exercise of any Stock Appreciation Right associated with any Stock Option.

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