Document:

Exhibit 10(i)

 

Amended as of

January 17, 2002

 

FAMILY DOLLAR STORES, INC.

 

Incentive Profit Sharing Plan

 

 

ARTICLE I.

 

Purpose of Plan.

 

Section 1.1
Family Dollar Stores, Inc. has prepared this Plan in order to compensate and
reward executive and supervisory personnel for their share in the growth and
success of the Company and in order to retain and attract persons of
competence.  The Plan provides a means
of sharing certain incentive compensation dependent on profits of the Company
and its subsidiaries and supersedes the practice of prior years of making bonus
payments to executive and supervisory personnel following the Christmas season.

 

ARTICLE II.

 

Determination of Incentive Compensation

and Participants.

 

Section 2.1.            In respect of each fiscal year of
the Company, the Compensation Committee of the Board of Directors (the
“Committee”) and the Board of Directors may after the end of each fiscal year
appropriate as additional compensation for the preceding fiscal year to be paid
to participants under the Plan an amount up to but not in excess of the
Incentive Compensation Net Earnings, as hereinafter defined, of the preceding
fiscal year as the Committee and the Board of Directors, in their discretion,
shall determine.

 

Section 2.2.            The term “Incentive Compensation Net
Earnings” shall consist of an amount equal to five percent (5%) of the net
profit of the Company and its subsidiaries computed on a consolidated basis
determined in accordance with generally accepted accounting principles,
provided that, in any event, such net profit shall be determined before any
deduction for federal or state taxes based on income and before any deduction
in respect of or provision for appropriations or distributions made or to be
made under this Plan or in respect of or provision for payments made to
officers or other employees under any agreement or other arrangements based
upon or relating to profits of the Company or any subsidiary.

 

 

Section 2.3.                                   (A)
As soon as feasible after the close of each fiscal year, the fiscal officers of
the Company shall determine the amount of the Incentive Compensation Net
Earnings for the preceding fiscal year in accordance with the provisions of
Section 2.2 hereof, and shall report such determination to the Committee and to
the Board of Directors of the Company and to the independent public accountants
of the Company.

 

(B)                                The
independent public accountants of the Company shall review such determination
and report to the Committee and to the Board of Directors their opinion thereof
and any corrections which they deem proper.

 

(C)                                Such
reports of the fiscal officers of the Company and of the independent public
accountants shall be reviewed by and subject to the approval of the Committee
and the Board of Directors, which shall authorize the appropriation to be made
for the preceding year as provided in Section 2.1, within the maximum limit
therein provided.

 

Section 2.4.            The Committee and the Board of
Directors shall each year, after consultation with the management, determine
the executive and supervisory personnel of the Company or any subsidiary of the
Company who shall be entitled to participate under the Plan for the preceding
year, and the amount to be paid to each such person as incentive compensation
for such year.  The total compensation
to each participant, including salary, incentive compensation payable pursuant
to the Plan, retirement, and all other benefits, shall not, in the opinion of
the Committee and the Board of Directors, be in excess of the fair and
reasonable compensation for the services of such participant.  All determination by the Committee and the
Board of the Incentive Compensation Net Earnings for any year, the
determination of the persons to participate under the Plan, and the amounts to
be paid to each participant under the Plan, shall be final and conclusive and
binding upon all interested parties.  No
director shall vote on his own participation in the Plan.  If all of the Incentive Compensation Net
Earnings for a fiscal year shall not be paid as inventive compensation, the
excess shall be credited to the earnings of such fiscal year.

 

Section 2.5.            There shall be deducted from all
payments under the Plan any taxes required to be withheld by the Federal or any
State or local government and paid over to such government for the account of
such participant.

 

ARTICLE III.

 

General Conditions; Miscellaneous Provisions

 

Section 3.1.            The Board of Directors may from time
to time amend, suspend or terminate in whole or in part or may reinstate any or
all of the provisions of the Plan, except that (a) no amendment, suspension or
terminations may, without the participant’s consent, apply to the payment to
any participant made to the participant prior to the effective date of such
amendment, suspension or termination and (b) no amendment may be made which
will increase the maximum amount which may be

 

 

appropriated annually under the
Plan without prior approval of the holders of a majority of the outstanding
shares of the common stock of the Company.

 

Section 3.2.            The selection of any employee for
participation in the Plan in any year shall not give such participant any right
to participate in the Plan in any future year or to be retained in the employ
of the Company or any subsidiary and the right and power of the Company or any subsidiary
to dismiss or discharge any participant is specifically reserved.

 

Section 3.3.            No participant shall have any right
with respect to any payment, until such payment or written notice thereof shall
have been delivered to him; nor shall any such participant or any person
claiming under or through him have any right or interest in this Plan, or in
any allotment hereunder, unless and until all the terms, conditions and
provisions of the Plan that affect such participant have been complied with as
specified herein.

 

Section 3.4.            Nothing in this Plan shall be
construed as preventing the Company or any of its subsidiaries from
establishing other or different plans providing for incentive compensation for
employees.

 

Section 3.5.            The Committee and the Board of
Directors may rely upon any information supplied to them by any officer of the
Company or by the Company’s independent public accountants in connection with
the administration of the Plan.  The
determination of the Company’s independent public accountants as to the
Incentive Compensation Net Earnings of the Company for any year and any other
matter arising under the Plan and referred to such independent public
accountants by the Committee or the Board for determination shall be final,
conclusive and binding on the Company and on all participants and upon all
persons claiming through or under any participant.

 

No member of
the Committee or the Board of Directors shall be liable for any act or action,
whether of commission or omission, taken by any other member, or by any
officer, agent, or employee; nor, except in circumstances involving the
member’s bad faith, for anything done or omitted to be done by the member.

 

Section 3.6.            The Committee shall administer and
interpret the Plan.

 

Section 3.7.            The Committee shall be comprised of
two or more members of the Board of Directors meeting the qualifications of an
“outside director” under Section 162(m) of the Internal Revenue Code and any
regulations thereunder.  If any member
does not meet these qualifications, then that member shall be replaced by
another director meeting such qualifications such that the Committee shall
always be comprised of at least two “outside directors”.

 

Section 3.8.            The amount of the payments under the
Plan for any fiscal year of the Company to any one individual participant shall
not exceed $1 million.

 

 

ARTICLE IV.

 

General Definitions.

 

Section 4.1.            For the purposes of the Plan, unless
the context otherwise indicates, the following definitions shall be applicable:

 

(a)           The word “Plan”
shall mean the Incentive Profit Sharing Plan as set forth in this instrument
and as from time to time amended.

 

(b)           The word “Company”
shall mean Family Dollar Stores, Inc., a Delaware Corporation, its successors
and assigns.

 

(c)           The term “Board of Directors”
or “Board” shall mean the Board of Directors of the Company.

 

(d)           The term “executive
and supervisory personnel” shall include executive and supervisory personnel of
the Company and of its subsidiaries, and the word “employee” shall mean an employee
of the Company or of a subsidiary of the Company.

 

(e)           The term
“Subsidiary” or “Subsidiaries” shall mean direct and indirect subsidiaries of
Family Dollar Stores, Inc., and/or entities which are owned or controlled by
Family Dollar Stores, Inc. and/or its direct or indirect subsidiaries.Exhibit
10(ii)

 

	
  STATE OF NORTH CAROLINA

  	
   

  	
  AMENDMENT TO

  
	
   

  	
   

  	
  EMPLOYMENT AGREEMENT

  
	
  COUNTY OF MECKLENBURG

  	
   

  	
   

  

 

THIS AMENDMENT, made and entered into effective the 29th day
of August 2004, by and between FAMILY DOLLAR STORES, INC., a Delaware
corporation (hereinafter referred to as the “Company”); and Howard R. Levine
(hereinafter referred to as the “Employee”);

 

W I T N E S S E T H:

 

WHEREAS, the Company and the
Employee entered into an Employment Agreement dated April 29, 1997, as amended
by Amendments to Employment Agreement dated August 28, 1997, August 19, 1998,
August 29, 1999, August 27, 2000, September 2, 2001, September 1, 2002, January
16, 2003, and August 31, 2003 (hereinafter referred to as the “Agreement”); and

 

WHEREAS, the Company and the
Employee desire to amend the Agreement;

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained, the Company and the
Employee agree as follows:

 

1.             Section 1.04 of the
Agreement is amended by adding “Idaho” to the list of states constituting the
“Present Territory.”

 

2.             Section 2 of the Agreement is deleted and the
following is substituted in lieu thereof:

 

“2.     Employment.  The
Employee shall be employed by the Company and any Affiliate in the capacity
provided for in Paragraph 3 for the period commencing August 29, 2004 (the
“Commencement Date”), and ending on August 27, 2005, or upon the termination of
this Agreement as provided in Paragraph 6.”

 

3.             The first paragraph
of Section 5.01 of the Agreement is deleted and the following paragraph is substituted in lieu thereof:

 

“5.01         In consideration of the services to be
rendered by the Employee pursuant to this Agreement, the Company shall pay, or
cause to be paid, to the Employee a weekly base salary from August 29, 2004, to
August 27, 2005, of $13,942.31 ($725,000.00 per annum).”

 

4.             Subparagraphs (a) and
(b) of Section 5.02 of the Agreement are deleted and the following subparagraphs are substituted in
lieu thereof:

 

“5.02.        In addition, the Employee shall be
entitled to:

 

(a)  Participate in the Company’s Target Bonus
Plan, as it may be amended or modified in any respect, including achievement of
established goals, as Chairman and Chief Executive Officer for the fiscal year
commencing August 29, 2004.  The Target
Bonus Plan generally will give the Employee the opportunity to earn a bonus of
up to one hundred (100%) percent of the Employee’s base salary actually
received for services on and after August 29, 2004, through August 27, 2005, for the fiscal year ending
August 27, 2005, subject to the Company’s achievement of certain financial
goals to be established, the Employee’s performance, and all terms and
conditions of the Target Bonus Plan as in effect for such fiscal year; provided
that the amount of bonus paid may not be increased by the annual individual
performance rating of the Employee.  The
Employee acknowledges that he has received a copy of the form of the Target
Bonus Plan and Bonus Conditions and is familiar with the terms and conditions
thereof.  Nothing contained herein shall
limit the Company’s right to alter, amend or terminate the Target Bonus Plan at
any time for any reason.  The Employee
further acknowledges that, as provided in the Target Bonus Plan, in the event
the Employee is not employed by the Company, for whatever reason, at the time
the bonus for the fiscal year is actually paid to participants in the Target
Bonus Plan following the end of the fiscal year, the Employee will not be
entitled to receive the bonus.

 

 

(b)  Take twenty days (exclusive of Saturdays,
Sundays and paid Company holidays) of vacation during the twelve month period
commencing August 29, 2004.  Vacation
time will accrue ratably during the course of said period and cannot be
accumulated from year to year, except that up to five days of vacation not
taken in said twelve month period may be carried over to the next twelve month
period.”

 

5.             The second paragraph of Section 6.02 of the
Agreement is deleted and the following paragraph is substituted in lieu
thereof:

 

“In the event this
Agreement is not terminated by the Company or the Employee for any reason prior
to August 27, 2005, and the Company and the Employee do not agree in writing
before August 27, 2005, to extend the term of this Agreement beyond August 27,
2005, or to enter into a new agreement to extend the employment relationship
beyond August 27, 2005, this Agreement shall terminate automatically on August
27, 2005, which shall be the Termination Date, and the Company shall pay to the
Employee sixty (60) days of the base salary set forth in Section 5.01 (which
shall constitute payment in full of the compensation due to the Employee
hereunder).  Any such payments shall be
made in two (2) equal monthly installments with the first installment due and
payable not later than thirty (30) days after the Termination Date.”

 

6.             Section 6A. of the
Agreement is deleted, and the following Section is added in lieu thereof:

 

“6A.  Target Bonus Plan.  Notwithstanding any other provision of this
Agreement, if the Company terminates this Agreement prior to the end of the term
of this Agreement on August 27, 2005, for reasons other than for Cause, or if
the Company and the Employee do not agree in writing before August 27, 2005, to
extend the term of the Employee’s employment by the Company beyond August 27,
2005, the Employee shall be entitled to receive as a severance payment an
amount equal to the pro rata share of the bonus, or the full bonus, as the case
may be, if any, under and subject to the terms and conditions of the Target
Bonus Plan referred to in Section 5.02(a) based on one hundred (100%) percent
of the Employee’s base salary actually received for the period from August 29,
2004, through the Termination Date, or through August 27, 2005, if the
Employee’s employment continues through that date.  This payment is equal to the amount, if any, the Employee would
have received following the end of the fiscal year ended August 27, 2005, if
the Target Bonus Plan did not have a requirement that the Employee be employed
by the Company at the time the bonus is customarily paid. Such payment shall be
made to the Employee on or about November 15 following the end of said fiscal
year.”

 

7.       All other terms and provisions of the
Agreement shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement in triplicate, all as of the day and year first above
written.

 

	
   

  	
  FAMILY DOLLAR STORES,
  INC.

  
	
   

  	
   

  
	
  Attest:

  	
  By

  	
  /s/ R. James Kelly

  	
   

  
	
   

  	
   

  	
  Vice Chairman

  
	
   

  	
   

  
	
  /s/ George R. Mahoney,
  Jr.

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  
	
   

  	
   

  
	
  (Corporate Seal)

  	
   

  
	
   

  	
   

  	
  /s/ Howard R. Levine 

  	
   (SEAL)

  
	
   

  	
   

  	
  Howard R. Levine

  
	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
  /s/ Florence W. Stanley

  	
   

  	
   

  

 

2

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