Document:

Exhibit 4.3

Schedule 1.1(b)

Mortgaged Properties

1.

100
Mission Ridge, Goodlettsville, TN - Dollar General Corporation’s corporate
headquarters, subject to a lease agreement by and between Industrial Development
Board of the Metropolitan Government of Nashville and Davidson County, as
Landlord and Dollar General Corporation, assignee of Atlantic Financial Group,
as Tenant.

2.

427
Beech Street, Scottsville, KY- distribution center, owned by Dolgencorp,
Inc.

3.

3207
Philpott Rd, South Boston, VA- distribution center, owned by Sun Dollar,
L.P.

4.

2505
East Pointe Drive, Zanesville, OH- distribution center, owned by DGC Properties
LLC

5.

1451
Spartanburg Highway, Jonesville, SC- distribution center, owned by Dolgencorp,
Inc.

6.

5575
E. Dollar General Way, Marion, IN- distribution center, owned by Dolgencorp,
Inc.

7.

17815
Peggy Road, Alachua, FL- distribution center, owned by Dolgencorp, Inc.

Schedule 1.1(c)

Commitments and Addresses of Lenders

			
	
Goldman Sachs
Credit Partners L.P.

c/o Goldman,
Sachs & Co.

30 Hudson
Street, 17th Floor

Jersey City, NJ
07302

Attention: SBD
Operations

Attention:
Pedro Ramirez

Telecopier;
(212) 357-4597

Email:
gsd.link@gs.com
	
 
	
Tranche B-1
Term Loan Commitment – $1,700,000,000

Tranche B-2
Term Loan Commitment – $600,000,000

Schedule 1.1(d)(i)

Excluded Subsidiaries

DGC Holdings, LLC

Ashley River
Insurance Company, Inc.

Dollar General
Literacy Foundation

Schedule 6.3

Local Counsels

Kentucky

Tennessee

Schedule 8.3

No
Violation

1

A
possibility exists that the consummation of the Merger may be interpreted as
giving rise to certain trigger events (which may include events of default)
under the leases listed as Items (a), (b) and (c) below.

(a)

401
General Drive, Ardmore, OK- distribution center subject to a sale-leaseback
between DG Ardmore, L.L.C., as Landlord and Dolgencorp, Inc., assignee of Dollar
General Corporation, as Tenant

(b)

1900
U.S. Highway 54 N., Fulton, MO- distribution center subject to a sale-leaseback
between Townsend Fulton, LLC f/k/a FU/DG Fulton, LLC, as Lessor and Dolgencorp,
Inc., assignee of Dollar General Corporation, as Lessee.

(c)

914
Highway 82 W., Indianola, MS- distribution center subject to a sale-leaseback
between FU/DG Indianola, LLC, as Lessor and Dolgencorp, Inc., assignee of Dollar
General Corporation, as Lessee.

2

The
indemnity agreements listed below as Items (a) and (b) contain certain
provisions that will likely require additional collateral or security upon the
consummation of the merger.

(a)

General
Agreement of Indemnity by Dollar General Corporation in favor of Liberty Mutual
Insurance Company, Liberty Mutual Fire Insurance Company, LM Insurance
Corporation, The First Liberty Insurance Corporation, Liberty Insurance
Corporation, and any other company that is part of or added to the Liberty
Mutual Group for which surety business is underwritten by Liberty Bond Services
or Liberty Mutual Surety. 

(b)

General
Agreement of Indemnity by Dollar General Corporation, Dolgencorp, Inc., and
Dolgencorp of New York, Inc., in favor of the Zurich American Insurance Company,
and its Subsidiaries and Affiliates including, but not limited to, the Fidelity
and Deposit Company of Maryland, Colonial American Casualty and Surety Company,
and American Guarantee and Liability Insurance Company.

Schedule 8.4

Litigation

1

On
October 10, 2005, Dollar General Corporation was served with a lawsuit entitled
Moldoon, et al. v. Dolgencorp, Inc., et al. (Western District of
Louisiana, Lake Charles Division, CV05-0852, filed May 19, 2005) filed as a
putative collective action in which five current or former store managers claim
to have been improperly classified as exempt executive employees under the Fair
Labor Standards Act (“FLSA”).  Plaintiffs seek injunctive relief, back
wages, liquidated damages and attorneys’ fees. To date, Plaintiffs have not
asked the Court to certify any class.

2

On
August 7, 2006, a lawsuit entitled Cynthia Richter, et al. v. Dolgencorp,
Inc., et al. was filed in the United States District Court for the Northern
District of Alabama (Case No. 7:06-cv-01537-LSC) in which the plaintiff alleges
that she and other current and former Dollar General store managers were
improperly classified as exempt executive employees under the FLSA and seeks to
recover overtime pay, liquidated damages, and attorneys’ fees and costs. On
August 15, 2006, the Richter plaintiff filed a motion in which she asked the
court to certify a nationwide class of current and former store managers. The
Company opposed the plaintiff’s motion. On March 23, 2007, the Court
conditionally certified a nationwide class of individuals who worked for Dollar
General as Store Managers since August 7, 2003. Although the number of persons
who will be included in the class has not been determined, the parties have
agreed to, and the Court is expected to approve, the Notice that will be sent to
the class.

On
May 30, 2007, the Court stayed all proceedings in the case, including the
sending of the Notice, for an initial period of 60 days, during which time the
Court will evaluate, among other things, a recently filed appeal in the Eleventh
Circuit involving claims similar to those raised in this action. During the
60-day stay, the statute of limitations will be tolled for potential class
members. At its conclusion, the Court will determine whether to extend the stay
or to permit this action to proceed. Following the close of the discovery period
the Company will have an opportunity to seek decertification of the class, and
the Company expects to file such a motion.

The
Company believes that its store managers are and have been properly classified
as exempt employees under the FLSA and that the actions described above are not
appropriate for collective action treatment. The Company intends to vigorously
defend these actions. However, at this time, it is not possible to predict
whether the courts will permit these actions to proceed collectively, and no
assurances can be given that the Company will be successful in its defense on
the merits or otherwise. If the Company is not successful in its efforts to
defend these actions, the resolution or resolutions could have a material
adverse effect on the Company’s financial statements as a whole.

3

On
May 18, 2006, the Company was served with a lawsuit entitled Tammy Brickey,
Becky Norman, Rose Rochow, Sandra Cogswell and Melinda Sappington v. Dolgencorp,
Inc. and Dollar General Corporation (Western District of New York, Case
6:06-cv-06084-DGL, 

originally
filed on February 9, 2006 and amended on May 12, 2006 (“Brickey”)). The Brickey
plaintiffs seek to proceed collectively under the FLSA and as a class under New
York, Ohio, Maryland and North Carolina wage and hour statutes on behalf of,
among others, individuals employed by the Company as assistant store managers
who claim to be owed wages (including overtime wages) under those statutes. At
this time, it is not possible to predict whether the court will permit this
action to proceed collectively or as a class. However, the Company believes that
this action is not appropriate for either collective or class treatment, and
believes that its wage and hour policies and practices comply with both federal
and state law. The Company plans to vigorously defend this action; however, no
assurances can be given that the Company will be successful in its defense on
the merits or otherwise, and, if it is not, the resolution of this action could
have a material adverse effect on the Company’s financial statements as a whole.

4

On
March 7, 2006, a complaint was filed in the United States District Court for the
Northern District of Alabama (Janet Calvert v. Dolgencorp, Inc., Case No.
2:06-cv-00465-VEH (“Calvert”)), in which the plaintiff, a former store manager,
alleged that she was paid less than male store managers because of her sex, in
violation of the Equal Pay Act and Title VII of the Civil Rights Act of 1964, as
amended (“Title VII”). On March 9, 2006, the Calvert complaint was amended to
include seven additional plaintiffs, who also allege to have been paid less than
males because of their sex, and to add allegations of sex discrimination in
promotional opportunities and undefined terms and conditions of employment. In
addition to allegations of intentional sex discrimination, the amended Calvert
complaint also alleges that the Company’s employment policies and practices have
a disparate impact on females. The amended Calvert complaint seeks to proceed
collectively under the Equal Pay Act and as a class under Title VII, and
requests back wages, injunctive and declaratory relief, liquidated damages and
attorney’s fees and costs.

 

At
this time, it is not possible to predict whether the court will permit Calvert
to proceed collectively or as a class. However, the Company believes that the
case is not appropriate for class or collective treatment and believes that its
policies and practices comply with the Equal Pay Act and Title VII. The Company
intends to vigorously defend the action; however, no assurances can be given
that the Company will be successful in its defense on the merits or otherwise.
If the Company is not successful in defending the Calvert action, its resolution
could have a material adverse effect on the Company’s financial statements as a
whole.

 

5

Subsequent
to the announcement of the Agreement and Plan of Merger among the Company, Buck
Holdings L.P. and Buck Acquisition Corp (each of Buck Holdings L.P. and Buck
Acquisition Corp is an affiliate of KKR, as more fully described in Note 2), the
Company and its directors were named in seven putative class actions alleging
claims for breach of fiduciary duty arising out of the proposed sale of the
Company to KKR.  Each of the complaints alleged, among other things, that
Dollar General’s directors engaged in “self-dealing” by agreeing to recommend
the transaction to the shareholders of Dollar General and that the consideration
available to Dollar General shareholders in the proposed transaction is unfairly
low. On motion of the plaintiffs, each of these cases was transferred to the
Sixth Circuit Court for Davidson County, Twentieth Judicial District, at
Nashville (the “Court”). By order April 26, 2007, the seven lawsuits were
consolidated in the Court under the caption, 

“In
re: Dollar General,” Case No. 07MD-1. On May 23, 2007, the Court entered an
order requiring the plaintiffs in the consolidated actions to file a
consolidated complaint within 30 days. On June 13, 2007, the Court denied the
Plaintiffs’ motion for a temporary injunction to block the shareholder vote that
was then held on June 21, 2007.  On June 22, 2007, the Plaintiffs filed
their amended complaint making claims substantially similar to those outlined
above.  The Company believes that the foregoing lawsuit is without merit
and intends to defend the action vigorously.  

Schedule 8.12

Subsidiaries

						
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Entity
	
Jurisdiction
	
Ownership of Capital Stock/Partners/Members
	
Type
	
Material?

	
1
	
Dolgencorp,
Inc.
	
Kentucky
	
Dollar General
Corporation
	
Corporation
	
Yes

	
2
	
Dolgencorp of
Texas, Inc.
	
Kentucky
	
Dolgencorp,
Inc.
	
Corporation
	
Yes

	
3
	
Dollar General
Partners
	
Kentucky
	
Dollar General
Corporation and Dollar General Merchandising, Inc.- General
Partners
	
General
partnership
	

Yes

	
4
	
Dolgencorp of
New York, Inc.
	
Kentucky
	
Dolgencorp,
Inc.
	
Corporation
	
Yes

	
5
	
DG Logistics,
LLC
	
Tennessee
	
DG
Transportation, Inc.
	
Limited
liability company
	
Yes

	
6
	
DG Promotions,
Inc.
	
Tennessee
	
Dollar General
Corporation
	
Corporation
	
No

	
7
	
DGC Properties
LLC
	
Delaware
	
Dolgencorp,
Inc.
	
Limited
liability company
	
Yes

	
8
	
DGC Properties
of Kentucky LLC
	
Delaware
	
Dollar General
Partners
	
Limited
liability company
	
No

	
9
	
Dollar General
Investment, Inc.
	
Delaware
	
Dollar General
Corporation
	
Corporation
	
Yes

	
10
	
Dollar General
Merchandising, Inc.
	
Tennessee
	
Dollar General
Corporation
	
Corporation
	
Yes

	
11
	
Dollar General
Global Sourcing Limited
	
Hong
Kong
	
Dollar General
Corporation & DGC Holdings, LLC
	
Corporation
	
No

	
12
	
DGC Holdings,
LLC
	
Delaware
	
Dollar General
Corporation
	
Limited
liability company
	
No

	
13
	
Ashley River
Insurance Company, Inc.
	
South
Carolina
	
Dollar General
Corporation
	
Corporation
	

Yes

	
14
	
DG
Transportation, Inc.
	
Tennessee
	
Dolgencorp,
Inc.
	
Corporation
	
Yes

	
15
	
DG Retail,
LLC
	
Tennessee
	
Dollar General
Corporation
	
Limited
liability company
	
Yes

	
16
	
South Boston
Holdings, Inc.
	
Delaware
	
Dolgencorp,
Inc.
	
Corporation
	
Yes

	
17
	
Sun-Dollar,
L.P.
	
California
	
South Boston
Holdings, Inc. – General Partner

Dolgencorp,
Inc.- Limited Partner
	
Limited
partnership
	
Yes

	
18
	
South Boston
FF&E, LLC
	
Delaware
	
Sun-Dollar,
L.P.
	
Limited
liability company
	
No

	
19
	
Dollar General
Literacy Foundation
	
Tennessee
	
Dollar General
Corporation
	
Non profit
corporation
	
No

Schedule 8.15(a)

Properties

None

Schedule 9.9

Closing Date Affiliate Transactions

None

Schedule 9.14(d)

Post-Closing Actions

1.

Within
15 Business Days following the Closing Date (or such later date as reasonably
acceptable to the Administrative Agent), the Borrower will furnish to the
Collateral Agent originals of the following promissory notes accompanied by
undated note powers with respect thereto duly indorsed in blank by an effective
indorsement:

a.

Promissory
Note issued by Dolgencorp of Texas, Inc. to Dollar General Corporation in the
amount of $95,072,548.

b.

Promissory
Note issued by Dolgencorp, Inc. to Dollar General Corporation in the amount of
$1,262,617,104.

c.

Promissory
Note issued by Dolgencorp of New York, Inc. to Dollar General Corporation in the
amount of $15,753,905.

d.

Promissory
Note issued by Dollar General Partners to Dollar General Corporation in the
amount of $66,890,092.

2.

[Surveys
and Title Endorsements]

Schedule 10.1

Closing Date Indebtedness

		
	
 
	
 

	
1
	
Lease dated as
of January 19, 1999 between DG Ardmore, LLC as Landlord and Dollar General
Corporation as Tenant (Ardmore, OK distribution center)

	
 
	
 

	
 
	
 

	
2
	
Lease Agreement
dated as of June 1, 2000 between FU/DG Fulton, LLC as Lessor and Dollar
General Corporation as Lessee (Fulton, MO distribution center)

	
 
	
 

	
 
	
 

	
3
	
Lease Agreement
dated as of June 1, 2000 between FU/DG Indianola, LLC as Lessor and Dollar
General Corporation as Lessee (Indianola, MS  distribution
center)

	
 
	
 

	
 
	
 

	
4
	
Motor Vehicle
Fleet Open-End Finance Lease Agreement dated as of April 3, 2002 between
D.L. Peterson Trust as Lessor and Dolgencorp, Inc. as Lessee

	
 
	
 

	
 
	
 

	
5

	
Loan Agreement,
dated as of July 1, 2005 between City of Marion, IN and Dolgencorp, Inc.
(currently secured by Letter of Credit Reimbursement Agreement dated July
1, 2005 between Dolgencorp, Inc. and Keybank National
Association)

	
 
	
 

	
 
	
 

	
6
	
Dollar General
Market store lease, Scottsville, KY, store 9806 (Capital Lease) between
Jones & Sons Properties LLC, as lessor and Dollar General Partners, as
lessee

	
 
	
 

	
 
	
 

	
7
	
Dollar General
Market store lease, Bowling Green, KY, store 9811 (Capital Lease) between
Jones & Sons Properties LLC, as lessor and Dollar General Partners, as
lessee

	
 
	
 

	
 
	
 

	
8
	
Dollar General
Market store lease, Lewisburg, TN, store 9824 (Capital Lease) between DGM
Lewisburg, LLC, as lessor and Dolgencorp, Inc, as lessee

	
 
	
 

	
 
	
 

	
9
	
Installment
Payment Agreement dated April 21, 2006 between the Company and Solarcom,
LLC

	
 
	
 

	
 
	
 

	
10

	
$20,168,000
demand note owed by Dollar General Investment, Inc. to Ashley River
Insurance Company, Inc.  The funds were utilized by Dollar General
Investment, Inc. to finance other intercompany loans.

	
 
	
 

		
	
 
	
 

	
11

	
$20,900,000
demand note owed by Dollar General Investment, Inc. to Ashley River
Insurance Company, Inc.  The funds were utilized by Dollar General
Investment, Inc. to finance other intercompany loans.

	
 
	
 

	
 
	
 

	
12

	
$25,000,000 of
intercompany debt owed by Dollar General Investment, Inc. to Ashley River
Insurance Company, Inc.  The funds were utilized by Dollar General
Investment, Inc. to finance other intercompany loans.

	
 
	
 

	
 
	
 

	
13

	
$25,000,000 of
intercompany debt owed by Dollar General Investment, Inc. to Ashley River
Insurance Company, Inc.  The funds were utilized by Dollar General
Investment, Inc. to finance other intercompany loans.

	
 
	
 

	
 
	
 

	
14

	
$25,000,000 of
intercompany debt owed by Dollar General Investment, Inc. to Ashley River
Insurance Company, Inc.  The funds were utilized by Dollar General
Investment, Inc. to finance other intercompany loans.

	
 
	
 

	
 
	
 

	
15

	
$25,000,000 of
intercompany debt owed by Dollar General Investment, Inc. to Ashley River
Insurance Company, Inc.  The funds were utilized by Dollar General
Investment, Inc. to finance other intercompany loans.

	
 
	
 

	
16
	
$15,607,7651
of intercompany debt owed by Dollar General Corporation to Dollar General
Global Sourcing Limited for buying agent commissions, net of
expenses.

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
1As
of February 2, 2007.

	
 
	
 

Schedule 10.2

Closing Date Liens

		
	Existing Liens

	
1.
	
UCC Lien
against Dolgencorp, Inc. in favor of Tennant Financial Services in the
State of Kentucky on 6/12/2002, file number 2002-1845247-45, for 1 Tennant
Model 7400 LP Scrubber (A/S 4070078-003 dws 39H7)

	
2.
	
UCC Lien
against Dolgencorp, Inc. in favor of Tennant Financial Services in the
State of Kentucky on 5/29/2007, file number 2007-2247502-71.1, for 1
Tennant Model M20 Scrubber/Sweeper 

	
3.
	
UCC Lien
against Dollar General Corporation in favor of Indianola DG Property, LLC
c/o Castle Cooke Properties, Inc. in the State of Tennessee on 06/07/2000,
file number 300-034269, for Computers to run warehouse management systems,
wireless display and keypad/scanner interface devices, printers and print
services used for corporate computer systems, 1000 printers used for
shipping and receiving, and network equipment

	
4.
	
UCC Lien
against Dollar General Corporation in favor of Towsend Fulton, LLC in the
State of Tennessee on 06/07/2000, file number 300-034270, for 1 Rapistan
Model 2420-RS200 Plus Positive Sorter Equipped Sort View and Rapid View
Control Systems, 32 Model 3020 Powered Extendable Trailer Loads, 4 Stuart
Glapak Powered Extended Receiving Conveyors, 21,750 model 1,276 feet of
Transportation Seven Sorter Conveyors

	
5.
	
UCC Lien
against Dollar General Corporation in favor of Oce Printing Systems USA,
Inc. in the State of Tennessee on 01/23/2003, file number 203-004816, for
1 refurbished Pagestream 154 plus printing system

	
6.
	
UCC Lien
against Dollar General Corporation in favor of Citicorp Del Lease, Inc. in
the State of Tennessee on 07/01/2003, file number 203-031107, for 1 new
Genie Model # G83268 (serial # 42201) – Scissor Lift

	
7.
	
UCC Lien
against Dollar General Corporation in favor of Oce North America, Inc. in
the State of Tennessee on 05/21/2004, file number 104-025532, for 1
VarioStream S100, 1 Mode, 1 PCL Mode, 1 Operator Attention Light, and 1
Ethernet Equipment - the equipment covered under equipment schedule
#336969-6684 to trial agreement #T336969 

	
8.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 06/09/2004, file number 104-0320914, for 2
Toyota forklift trucks, 1 model # 6BWS102F04, serial # 40027, 2 Model #
6HBW20, serial # 20076

		
	
9.
	
UCC Lien
against Dollar General Corporation in favor of Marlin Leasing Corp. in the
State of Tennessee on 06/10/2004, file number 304-038582, for 2 Toshiba
E-Studio 4511 Digital Copiers, S/N SCMC412388, SCM412371, each with
finisher-multi position, large capacity feeder, RADF, Bridge Kit, Work
Tray, Expansion Memory 128MB, Fax Board.E3511/E4511

	
10.
	
UCC Lien
against Dollar General Corporation in favor of Oce Financial Services,
Inc. in the State of Tennessee on 06/16/2004, file number 304-039534, for
1 model VS6100 serial # 0000036078 with all peripherals

	
11.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 06/23/2004, file number 304-040750, for 1 new
Toyota forklift model # 6HBW20 serial # 20073

	
12.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 08/12/2004, file number 204-037891, for 2 new
Toyota Forklift Trucks, 1 model # 6BWS102L04, serial # 40048, 1 model #
6HBW20, serial # 20114

	
13.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 08/25/2004, file number 304-050611, for 2 new
Toyota Forklift Trucks, 1 model # 6BWS102L04, serial # 40042, 1 model #
6HBW20, serial # 20118

	
14.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 09/29/2004, file number 104-054180, for 2 new
Toyota Forklift Trucks, 1 model # 6HBW20, serial # 20117, 1 model #
6HBW10, serial # 40043

	
15.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 09/29/2004, file number 104-054185, for 1 new
Toyota Forklift Truck, 1 model # 6HBW20, serial # 2011g

	
16.
	
UCC Lien
against Dollar General Corporation in favor of Oce Financial Services,
Inc. in the State of Tennessee on 10/07/2004, file number 204-042361, for
1 On Site OC&#233; VarioStream 6100 (VS6100)

	
17.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 10/27/2004, file number 304-061007, for 2 new
Toyota Forklift Trucks, 1 model # 6HBW20, serial # 20123, 1 model #
6HBW10, serial # 40046

	
18.
	
UCC Lien
against Dollar General Corporation in favor of Garrison Service Company in
the State of Tennessee on 11/03/2004, file number 104-059987, for 2 new
Toyota Forklift Trucks, 1 model # 6HBW20, serial # 20071, 1 model #
6HBW10, serial # 40047

		
	
19.
	
UCC Lien
against Dollar General Corporation in favor of Wachovia Bank, National
Association, as Master Servicer of behalf of, Wilmington, DE Trust Pay
Agent, as Trustee for the benefit of the Certificate Holders of,
Commercial Mortgage Pass-Though Certificates Dollar General, in the State
of Tennessee on 12/08/2004, file number 204-049006, in lieu of a
Continuation Statement for the following previously filed financing
statement with file number 4054945 dated 06/07/2000 in Missouri,, each of
which remains effective

	
20.
	
UCC Lien
against Dollar General Corporation in favor of Fulton, LLC c/o First Union
Securities in the State of Missouri on 06/07/2000, file number
4054945

	
21.
	
UCC Lien
against Dollar General Corporation in favor of Wachovia Bank, National
Association, as Master Servicer of behalf of, Wilmington, DE Trust Pay
Agent, as Trustee for the benefit of the Certificate Holders of,
Commercial Mortgage Pass-Though Certificates Dollar Genera in the State of
Tennessee on 01/07/2005, file number 105-001480, in lieu of a Continuation
Statement for the previously filed financing statement with file number
000801 dated 06/08/2000 in Callaway county Missouri, each of which remains
effective

	
22.
	
UCC Lien
against Dollar General Corporation in favor of First Union Commercial
Corporation in the State of Tennessee on 03/21/2005, file number
305-015895, in lieu of a Continuation Statement for the previously filed
financing statement with file number 4054945 06/07/2000 in Missouri, each
of which remains effective

	
23.
	
UCC Lien
against Dollar General Corporation in favor of First Union Commercial
Corporation in the State of Tennessee on 03/22/2005, file number
105-017669, in lieu of a Continuation Statement for the previously filed
financing statement with file number 01440532 dated 06/09/2000 in
Mississippi, each of which remains effective

	
24.
	
UCC Lien
against Dollar General Corporation in favor of First Union Commercial
Corporation in the State of Tennessee on 03/23/2005, file number
105-018028, in lieu of a Continuation Statement for the previously filed
financing statement with file number 01440523 dated 06/09/2000 in
Mississippi, each of which remains effective

	
25.
	
UCC Lien
against Dollar General Corporation in favor of US Bancorp in the State of
Tennessee on 04/22/2005, file number 105-025358, for Lease # 493353 Cannon
3100 DADF, Canon 3100 DADF, Canon 2050, Canon 2050, Canon 3570 DADF, Canon
8500 FIN K1N, Canon 8500 FIN K1N, Canon 1670F 

		
	

26.
	

UCC Lien
against Dollar General Corporation in favor of US Bancorp in the State of
Tennessee on 06/01/2005, file number 205-012400, for Lease # 512867 Cannon
IR 5800 

	
27.
	
UCC Lien
against Dollar General Corporation in favor of Toshiba America Information
Systems, Inc. in the State of Tennessee on 11/23/2005, file number
205-056476, for all equipment leased or financed for the Debtor by the
Secured Party under that certain Total Image Management Agreement No.
3234858-073 dated 11/04/2005

	
28.
	
UCC Lien
against Dollar General Corporation in favor of US Bancorp in the State of
Tennessee on 12/28/2005, file number 205-063732, for Lease # 568290
Universal Send Kit

	
29.
	
UCC Lien
against Dollar General Corporation in favor of Varilease Technology
Finance Group, Inc. in the State of Tennessee on 01/10/2006,

file number
206-001596, for Opex Omation model 2100 leased by lessor under Schedule
No. 001 dated 11/30/2005, which equipment is more fully described Opex
Invoice No. 184723

	
30.
	
UCC Lien
against Dollar General Corporation in favor of US Bancorp in the State of
Tennessee on 03/31/2006, file number 306-118069, for Lease # 605927 Konica
Minolta C450

	
31.
	
UCC Lien
against Dollar General Corporation in favor of US Bancorp in the State of
Tennessee on 04/17/2006, file number 306-121316, for Lease # 614933
1067419, Copiers 311702509C MC450 1067420, Copiers

311702509
MC450

	
32.
	
UCC Lien
against Dollar General Corporation in favor of US Bancorp in the State of
Tennessee on 10/25/2006, file number 206-067073, for 1160211 Copiers

	
33.
	
UCC Lien
against Dollar General Corporation in favor of Marlin Leasing Corp. in the
State of Tennessee on 12/20/2006, file number 106-215884, for 1 KM4035
Kyocera Digital Copier S/N: L3056692, 1 KM4035 Kyocera Digital Copier S/N:
L3056695

	
34.
	
UCC Lien
against Dollar General Corporation in favor of CIT Technology Financing
Services, Inc. in the State of Tennessee on 01/02/2007, file number
3107-000174, for 1 Konica Minolta Bizhub 420 S/N # 42GE06517, 2 Konica
Minolta Bizhub 350 S/N #s 31117688, 31117663

		
	
35.
	
UCC Lien
against Dollar General Corporation in favor of Crown Credit Company in the
State of Tennessee on 04/25/2007, file number 307-126909, for 1 Factory
Cat Sweeper, 34, S/N: 46553

	
36.
	
UCC Lien
against Dolgen Remainder LLC in favor of Dollar General Corporation in the
State of Delaware on 06/04/2003, file number 3141669, for all items of
personal property, equipment, fixtures and interest of whatever kind of
character used in connection with the operation of the real property
situated in the city of South Boston and County of Halifax, Virginia

	
37.
	
Cash collateral
held by Texas Workers' Compensation Commission in the amount of $12
million.

	
38.
	
The Ashley
River Insurance Company, Inc. minimum capital requirement for state
regulators in the amount of $250,000, required to be maintained in a
depository account.

	
39.
	
Leases
described in Items 1-4 and 6-8 on Schedule 10.1.

Schedule 10.4

Scheduled Dispositions

		
	
1.

Disposition
of inventory in connection with the elimination of the historical packaway
strategy and closure of certain stores under project Alpha.
	
 

	
 
	
 

Schedule 10.5

Closing Date Investments

		
	
Intercompany
loans listed as item 10 through 16 of Schedule 10.1.
	
 

	
 
	
 

Schedule 13.2

Notice Addresses

Wade Smith,
Treasurer

Dollar General
Corporation

100 Mission Ridge

Goodlettsville, TN
37072

615.855.5180
facsimile

Citicorp North
America, Inc.

Valerie Burrows

2 Penns Way

Suite 100

New Castle, DE
19720

Tel.:
302-894-6065

Fax: 302-994-0961

Email:
Valerie.r.burrows@citi.com 

EXHIBIT A

RESERVED

A-1

EXHIBIT B

FORM
OF GUARANTEE

See Execution Version filed as Exhibit 4.3 to the Company’s
Form 8-K dated July 6, 2007 filed with the SEC on July 12, 2007

B-1

EXHIBIT C

FORM
OF MORTGAGE (REAL PROPERTY)

MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT
OF RENTS AND LEASES AND
FIXTURE FILING 

by and from

[_______________________]
“Mortgagor” 

to

[_______________________]
as Administrative
Agent,
“Mortgagee”

Dated as of [__________], 2007

				
	
Location:
	 

	
Municipality:
	
 

	
State:
	 

PREPARED
BY, RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:

Latham & Watkins
LLP

885 Third
Avenue
New York, New York  10022
Attention:  Tamara Katz, Esq.

C-1

MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT
OF RENTS AND LEASES
AND FIXTURE FILING 

This MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES
AND FIXTURE FILING, dated as of [_____________], 2007 (this
“Mortgage”), by and from, a [_____________] corporation, with an
address at [_______________________] (“Mortgagor”), to
[_______________________], with an address at
[_______________________], as agent for the Lenders, and for itself as
Administrative Agent and Collateral Agent (in such capacity as agent,
“Mortgagee”).

RECITALS:

WHEREAS, reference is made to that certain CREDIT AGREEMENT dated
as of the date hereof (the “Credit Agreement”), among DOLLAR GENERAL
CORPORATION, a Tennessee corporation (the “Borrower”), the lending
institutions from time to time parties thereto (each a “Lender” and,
collectively, the “Lenders”), MORTGAGEE, as Administrative Agent,
[________________], as Syndication Agent, GOLDMAN SACHS CREDIT PARTNERS
L.P., [CITIGROUP NORTH AMERICA, INC.], LEHMAN BROTHERS INC. and WACHOVIA CAPITAL
MARKETS, LLC, as Joint Lead Arrangers and Bookrunners, and
[__________________], as Documentation Agent.

WHEREAS, in consideration of the extensions of credit and other
accommodations of Lenders as set forth in the Credit Agreement, respectively,
Mortgagor has agreed, subject to the terms and conditions hereof and of each
other Credit Document, to secure Mortgagor’s obligations under the Credit
Documents as set forth herein. 

NOW, THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, Mortgagee and Mortgagor
agree as follows:

SECTION
1.

DEFINITIONS

1.1

Definitions.  Capitalized terms used herein (including
the recitals hereto) not otherwise defined herein shall have the meanings
ascribed thereto in the Credit Agreement.  In addition, as used herein, the
following terms shall have the following meanings:

“Indebtedness” means all obligations and liabilities of
every nature of Borrower (including incremental facilities, if any, that may be
advanced on the date hereof or on a later date) now or hereafter existing under
or arising out of or in connection with the Credit Agreement and the other
Credit Documents, any Hedge Agreement and any Letter of Credit, in each case
together with all extensions or renewals thereof, whether for principal,
interest (including interest that, but for the filing of a petition in
bankruptcy with respect to Borrower, would accrue on such obligations, whether
or not a claim is allowed against Borrower for such interest in the related
bankruptcy proceeding), payments for early termination of Hedge Agreements,
fees, reasonable expenses, indemnities or otherwise, whether voluntary or
involuntary, direct or indirect, absolute or contingent, liquidated or
unliquidated, whether or not jointly owed with others, and whether or not from
time to time decreased or extinguished and later increased, created or incurred,
and all or any portion of such obligations or liabilities that are paid, to the
extent all or any part of such payment is avoided or recovered directly or 

C-2

indirectly from Borrower, any Lender as a preference, fraudulent
transfer or otherwise, and all obligations of every nature of Borrower now or
hereafter existing under this Mortgage.    

“Mortgaged Property” means all of Mortgagor’s interest in
 the real property described in Exhibit A, together with any greater estate
therein as hereafter may be acquired by Mortgagor (the “Land”);  all
improvements now owned or hereafter acquired by Mortgagor, now or at any time
situated, placed or constructed upon the Land (the “Improvements”; the
Land and Improvements are collectively referred to as the “Premises”);
all right, title and interest of Mortgagor in and to all materials, supplies,
equipment, apparatus and other items of personal property now owned or hereafter
acquired by Mortgagor and now or hereafter attached to, installed in or used in
connection with any of the Improvements or the Land, and water, gas, electrical,
telephone, storm and sanitary sewer facilities and all other utilities whether
or not situated in easements (the “Fixtures”); all right, title and
interest of Mortgagor in and to all goods, accounts, general intangibles,
instruments, documents, chattel paper and all other personal property of any
kind or character, including such items of personal property as defined in the
UCC (defined below), now owned or hereafter acquired by Mortgagor and now or
hereafter affixed to, placed upon, used in connection with, arising from or
otherwise related to the Premises (the “Personalty”); all reserves,
escrows or impounds required under the Credit Agreement and all deposit accounts
maintained by Mortgagor with respect to the Mortgaged Property (the “Deposit
Accounts”); all right, title and interest of Mortgagor in and to, as
landlord or licensor, all leases, licenses, concessions, occupancy agreements or
other agreements (written or oral, now or at any time in effect) which grant to
any Person (other than Mortgagor) a possessory interest in, or the right to use,
all or any part of the Mortgaged Property, together with all related security
and other deposits to the extent transferable without consent and without
violating the terms thereof (the “Leases”); all right, title and interest
of Mortgagor in and to all of the rents, revenues, royalties, income, proceeds,
profits, security and other types of deposits, and other benefits paid or
payable by parties to the Leases for using, leasing, licensing possessing,
operating from, residing in, selling or otherwise enjoying the Mortgaged
Property (the “Rents”); all right, title and interest in Mortgagor in and
to all other agreements, such as construction contracts, architects’ agreements,
engineers’ contracts, utility contracts, maintenance agreements, management
agreements, service contracts, listing agreements, guaranties, warranties,
permits, licenses, certificates and entitlements in any way relating to the
construction, use, occupancy, operation, maintenance, enjoyment or ownership of
the Mortgaged Property (the “Property Agreements”);  all rights,
privileges, tenements, hereditaments, rights-of-way, easements, appendages and
appurtenances appertaining to the foregoing;  all property tax refunds (the
“Tax Refunds”) except as herein and in the Credit Agreement provided to
the contrary; all accessions, replacements and substitutions for any of the
foregoing and all proceeds thereof (the “Proceeds”);  all insurance
policies, unearned premiums therefor and proceeds from such policies covering
any of the above property now or hereafter acquired by Mortgagor (the
“Insurance”); and  all of Mortgagor’s right, title and interest in
and to any awards, damages, remunerations, reimbursements, settlements or
compensation heretofore made or hereafter to be made by any governmental
authority pertaining to the Land, Improvements, Fixtures or Personalty (the
“Condemnation Awards”) except as herein and in the Credit Agreement
provided to the contrary.  As used in this Mortgage, the term “Mortgaged
Property” shall mean all or, where the context permits or requires, any portion
of the above or any interest therein.

C-3

“Obligations” means all of the agreements, covenants,
conditions, warranties, representations and other obligations of Borrower
(including, without limitation, the obligation to repay the Indebtedness) under
the Credit Agreement, any other Credit Documents or any Hedge Agreements.

“UCC” means the Uniform Commercial Code of New York or, if
the creation, perfection and enforcement of any security interest herein granted
is governed by the laws of a state other than New York, then, as to the matter
in question, the Uniform Commercial Code in effect in that state.

1.2

Interpretation.  References to “Sections” shall be to
Sections of this Mortgage unless otherwise specifically provided.  Section
headings in this Mortgage are included herein for convenience of reference only
and shall not constitute a part of this Mortgage for any other purpose or be
given any substantive effect.  The rules of construction set forth in
Section 1.2 of the Credit Agreement shall be applicable to this Mortgage mutatis
mutandis.  If any conflict or inconsistency exists between this Mortgage
and the Credit Agreement, the Credit Agreement shall govern.

SECTION
2.

GRANT

To secure the full and timely payment of the Indebtedness and the
full and timely performance of the Obligations, Mortgagor MORTGAGES, GRANTS,
BARGAINS, ASSIGNS, SELLS and CONVEYS, to Mortgagee the Mortgaged Property with
mortgage covenants, subject, however, to the Permitted Liens, TO HAVE AND TO
HOLD the Mortgaged Property to Mortgagee, and Mortgagor does hereby bind itself,
its successors and assigns to WARRANT AND FOREVER DEFEND the title to the
Mortgaged Property unto Mortgagee.  

SECTION
3.

WARRANTIES,
REPRESENTATIONS AND COVENANTS

3.1

Title.  Mortgagor represents and warrants to Mortgagee
that (i) Mortgagor owns the Mortgaged Property free and clear of any liens,
claims or interests, except the Permitted Liens, and (ii) this Mortgage, upon
appropriate recording thereof in the applicable jurisdiction, creates valid,
enforceable first priority liens and security interests against the Mortgaged
Property, subject to Permitted Liens.

3.2

First Lien Status.  Subject to Permitted Liens,
Mortgagor shall preserve and protect the first lien and security interest status
of this Mortgage and the other Credit Documents.  If any lien or security
interest other than a Permitted Lien is asserted against the Mortgaged Property,
Mortgagor shall promptly, and at its expense, (i) give Mortgagee a detailed
written notice of such lien or security interest (including origin, amount and
other terms), and (ii) pay the underlying claim in full or take such other
action so as to cause it to be released.

3.3

Payment and Performance.  Mortgagor shall pay the
Indebtedness when due under the Credit Documents and shall perform the
Obligations in full when they are required to be performed as required under the
Credit Documents.  Upon payment and discharge of all Indebtedness secured
by this Mortgage, this Mortgage shall become null and void and Mortgagee shall
release this Mortgage without charge to Mortgagor.  Mortgagor shall pay all
costs of 

C-4

recordation, if any, and Mortgagee’s costs of preparing and/or
reviewing any documentation required for the release of the Mortgage.

3.4

Replacement of Fixtures and Personalty.  Mortgagor
shall not permit any of the Fixtures or Personalty to be removed at any time
from the Land or Improvements other than in accordance with the Credit
Agreement.

3.5

Covenants Running with the Land.  All Obligations
contained in this Mortgage are intended by Mortgagor and Mortgagee to be, and
shall be construed as, covenants running with the Mortgaged Property.  As
used herein, “Mortgagor” shall refer to the party named in the first paragraph
of this Mortgage and to any subsequent owner of all or any portion of the
Mortgaged Property.  All Persons who may have or acquire an interest in the
Mortgaged Property shall be deemed to have notice of, and be bound by, the terms
of the Credit Agreement and the other Credit Documents; however, no such party
shall be entitled to any rights thereunder without the prior written consent of
Mortgagee.  In addition, all of the covenants of Mortgagor in any Credit
Document party thereto are incorporated herein by reference.

3.6

Condemnation Awards and Insurance Proceeds.  Except to
the extent otherwise allowed or provided by the Credit Agreement, Mortgagor (i)
assigns all awards and compensation to which it is entitled for any condemnation
or other taking, or any purchase in lieu thereof, to Mortgagee and authorizes
Mortgagee at any time after and during the continuance of an Event of Default to
collect and receive such awards and compensation and to give proper receipts and
acquittances therefor, (ii) assigns to Mortgagee all proceeds of any insurance
policies insuring against loss or damage to the Mortgaged Property, (iii)
authorizes Mortgagee at any time after and during the continuance of an Event of
Default to collect and receive such proceeds and authorizes and directs the
issuer of each of such insurance policies to make payment for all such losses
directly to Mortgagee, instead of to Mortgagor and Mortgagee jointly.

3.7

Change in Tax Law.  Upon the enactment of or change in
(including, without limitation, a change in interpretation of) any applicable
law (i) deducting or allowing Mortgagor to deduct from the value of the
Mortgaged Property for the purpose of taxation any lien or security interest
thereon or (ii) subjecting Mortgagee or any of the Lenders to any tax or
changing the basis of taxation of mortgages, deeds of trust, or other liens or
debts secured thereby, or the manner of collection of such taxes, in each such
case, so as to affect this Mortgage, the Indebtedness or Mortgagee, and the
result is to increase the taxes imposed upon or the cost to Mortgagee of
maintaining the Indebtedness, or to reduce the amount of any payments receivable
hereunder, then, and in any such event, Mortgagor shall, on demand, pay to
Mortgagee and the Lenders additional amounts to compensate for such increased
costs or reduced amounts, provided that if any such payment or reimbursement
shall be unlawful, or taxable to Mortgagee, or would constitute usury or render
the Indebtedness wholly or partially usurious under applicable law, then
Mortgagor shall pay or reimburse Mortgagee or the Lenders for payment of the
lawful and non-usurious portion thereof.

3.8

Mortgage Tax.  Mortgagor shall (i) pay when due any
documentary, revenue and other stamp, recording and mortgage recording tax
imposed upon it or upon Mortgagee or any Lender pursuant to the tax law of the
state in which the Mortgaged Property is located in 

C-5

connection with the execution, delivery and recordation of this
Mortgage, and (ii) execute and cause to be filed any form required to be
executed and filed in connection therewith.  

3.9

Reduction Of Secured Amount.  In the event that the
amount secured by this Mortgage is less than the Indebtedness, then the amount
secured shall be reduced only by the last and final sums that Mortgagor repays
with respect to the Indebtedness and shall not be reduced by any intervening
repayments of the Indebtedness unless arising from the Mortgaged Property.
 So long as the balance of the Indebtedness exceeds the amount secured, any
payments of the Indebtedness shall not be deemed to be applied against, or to
reduce, the portion of the Indebtedness secured by this Mortgage.  Such
payments shall instead be deemed to reduce only such portions of the
Indebtedness as are secured by other collateral located outside of the state in
which the Mortgaged Property is located or as are unsecured.

SECTION
4.

DEFAULT
AND FORECLOSURE

4.1

Remedies.  Upon and during the continuance of an Event
of Default, Mortgagee may at Mortgagee’s election, exercise any or all of the
following rights, remedies and recourses (which are in addition to all rights
and remedies available under the Credit Agreement and the Pledge Agreement and
subject to any rights of Mortgagor thereunder):  (i) declare the
Indebtedness to be immediately due and payable, pursuant to, subject to the
terms of, and in accordance with the Credit Agreement without further notice,
presentment, protest, notice of intent to accelerate, notice of acceleration,
demand or action of any nature whatsoever (each of which hereby is expressly
waived by Mortgagor), whereupon the same shall become immediately due and
payable; (ii) with notice to Mortgagor, enter the Mortgaged Property and take
exclusive possession thereof and of all books, records and accounts relating
thereto or located thereon (iii); if Mortgagor remains in possession of the
Mortgaged Property after an Event of Default occurs and is continuing and
without Mortgagee’s prior written consent, Mortgagee may invoke any legal
remedies to dispossess Mortgagor; (iv) hold, lease, develop, manage, operate or
otherwise use the Mortgaged Property upon such terms and conditions as Mortgagee
may deem reasonable under the circumstances (making such repairs, alterations,
additions and improvements and taking other actions, from time to time, as
Mortgagee deems necessary or desirable), and apply all Rents and other amounts
collected by Mortgagee in connection therewith in accordance with the provisions
hereof; and (v) institute proceedings for the complete foreclosure of this
Mortgage, either by judicial action or by power of sale, in which case the
Mortgaged Property may be sold for cash or credit in one or more parcels.
 With respect to any notices required or permitted under the UCC, Mortgagor
and Mortgagee agree that ten (10) days’ prior written notice shall be deemed
commercially reasonable.  At any such sale by virtue of any judicial
proceedings, power of sale, or any other legal right, remedy or recourse, the
title to and right of possession of any such property shall pass to the
purchaser thereof, and to the fullest extent permitted by law, Mortgagor shall
be completely and irrevocably divested of all of its right, title, interest,
claim, equity, equity of redemption, and demand whatsoever, either at law or in
equity, in and to the property sold and such sale shall be a perpetual bar both
at law and in equity against Mortgagor, and against all other Persons claiming
or to claim the property sold or any part thereof, by, through or under
Mortgagor.  Mortgagee may be a purchaser at such sale and if Mortgagee is
the highest bidder, Mortgagee may credit the portion of the purchase price that
would be distributed to Mortgagee against the Indebtedness in lieu of paying
cash.  In the event this Mortgage is foreclosed by judicial action,
appraisement of the Mortgaged Property is 

C-6

waived and Mortgagee may make application to a court of competent
jurisdiction for, and obtain from such court as a matter of strict right and
without notice to Mortgagor or regard to the adequacy of the Mortgaged Property
for the repayment of the Indebtedness, the appointment of a receiver of the
Mortgaged Property, and Mortgagor irrevocably consents to such appointment.
 Any such receiver shall have all the usual powers and duties of receivers
in similar cases, including the full power to rent, maintain and otherwise
operate the Mortgaged Property upon such terms as may be approved by the court,
and shall apply such Rents in accordance with the provisions hereof; and/or
exercise all other rights, remedies and recourses granted under the Credit
Documents or otherwise available at law or in equity.

4.2

Separate Sales.  The Mortgaged Property may be sold in
one or more parcels and in such manner and order as Mortgagee in its sole
discretion may elect; the right of sale arising out of any Event of Default
shall not be exhausted by any one or more sales.

4.3

Remedies Cumulative, Concurrent and Nonexclusive.
 Mortgagee shall have all rights, remedies and recourses granted in the
Credit Documents and available at law or equity (including the UCC), which
rights (i) shall be cumulated and concurrent, (ii) may be pursued separately,
successively or concurrently against Mortgagor or others obligated under the
Credit Documents, or against the Mortgaged Property, or against any one or more
of them, at the sole discretion of Mortgagee, (iii) may be exercised as often as
occasion therefor shall arise, and the exercise or failure to exercise any of
them shall not be construed as a waiver or release thereof or of any other
right, remedy or recourse, and (iv) are intended to be, and shall be,
nonexclusive.  No action by Mortgagee in the enforcement of any rights,
remedies or recourses under the Credit Documents or otherwise at law or equity
shall be deemed to cure any Event of Default.

4.4

Release of and Resort to Collateral.  Mortgagee may
release, regardless of consideration and without the necessity for any notice to
or consent by the holder of any subordinate lien on the Mortgaged Property, any
part of the Mortgaged Property without, as to the remainder, in any way
impairing, affecting, subordinating or releasing the lien or security interest
created in or evidenced by the Credit Documents or their status as a first
priority lien and security interest in and to the Mortgaged Property.  For
payment of the Indebtedness, Mortgagee may resort to any other security in such
order and manner as Mortgagee may elect.

4.5

Waiver of Redemption, Notice and Marshalling of Assets.
 To the fullest extent permitted by law, Mortgagor hereby irrevocably and
unconditionally waives and releases  all benefit that might accrue to
Mortgagor by virtue of any present or future statute of limitations or law or
judicial decision exempting the Mortgaged Property from attachment, levy or sale
on execution or providing for any stay of execution, exemption from civil
process, redemption or extension of time for payment, except as may be expressly
required hereunder or in the other Credit Documents, all notices of any Event of
Default or of Mortgagee’s election to exercise or the actual exercise of any
right, remedy or recourse provided for under the Credit Documents, and any right
to a marshalling of assets or a sale in inverse order of alienation.

4.6

Discontinuance of Proceedings.  If Mortgagee shall
have proceeded to invoke any right, remedy or recourse permitted under the
Credit Documents and shall thereafter elect to discontinue or abandon it for any
reason, Mortgagee shall have the unqualified right to do so and, in such an
event, Mortgagor and Mortgagee shall be restored to their former positions with

C-7

respect to the Indebtedness, the Obligations, the Credit
Documents, the Mortgaged Property and otherwise, and the rights, remedies,
recourses and powers of Mortgagee shall continue as if the right, remedy or
recourse had never been invoked, but no such discontinuance or abandonment shall
waive any Event of Default which may then exist or the right of Mortgagee
thereafter to exercise any right, remedy or recourse under the Credit Documents
for such Event of Default.

4.7

Application of Proceeds.  After and during the
continuance of an Event of Default, the proceeds of any sale of, and the Rents
and other amounts generated by the holding, leasing, management, operation or
other use of the Mortgaged Property, shall be applied by Mortgagee (or the
receiver, if one is appointed) in the following order unless otherwise required
by applicable law:  first, to the payment of the reasonable costs and
expenses of taking possession of the Mortgaged Property and of holding, using,
leasing, repairing, improving and selling the same, including, without
limitation receiver’s fees and expenses, including the repayment of the amounts
evidenced by any receiver’s certificates, court costs, attorneys’ and
accountants’ fees and expenses, costs of advertisement; and second, as provided
in Section 11.13 of the Credit Agreement.

4.8

Occupancy After Foreclosure.  Any sale of the
Mortgaged Property or any part thereof will divest all right, title and interest
of Mortgagor in and to the property sold.  Subject to applicable law, any
purchaser at a foreclosure sale will receive immediate possession of the
property purchased.  If Mortgagor retains possession of such property or
any part thereof subsequent to such sale, Mortgagor will be considered a tenant
at sufferance of the purchaser, and will, if Mortgagor remains in possession
after demand to remove, be subject to eviction and removal, forcible or
otherwise, with or without process of law.

4.9

Additional Advances and Disbursements; Costs of
Enforcement.  Upon and during the continuance of any Event of Default,
Mortgagee shall have the right, but not the obligation, to cure such Event of
Default in the name and on behalf of Mortgagor.  All sums advanced and
reasonable expenses incurred at any time by Mortgagee under this Section, or
otherwise under this Mortgage or any of the other Credit Documents or applicable
law, shall bear interest from the date that such sum is advanced or expense
incurred, to and including the date of reimbursement, computed at the rate or
rates at which interest is then computed on the Indebtedness, and all such sums,
together with interest thereon, shall be secured by this Mortgage.
 Mortgagor shall pay all reasonable out of pocket expenses (including
reasonable attorneys’ fees and expenses) of or incidental to the perfection and
enforcement of this Mortgage and the other Credit Documents, or the enforcement,
compromise or settlement of the Indebtedness or any claim under this Mortgage
and the other Credit Documents, and for the curing thereof, or for defending or
asserting the rights and claims of Mortgagee in respect thereof, by litigation
or otherwise in accordance with Section 12.7 of the Credit Agreement.

4.10

No Mortgagee in Possession.  Neither the enforcement
of any of the remedies under this Section, the assignment of the Rents and
Leases under Section 5, the security interests under Section 6, nor any other
remedies afforded to Mortgagee under the Credit Documents, at law or in equity
shall cause Mortgagee to be deemed or construed to be a mortgagee in possession
of the Mortgaged Property, to obligate Mortgagee to lease the Mortgaged Property
or attempt to do so, or to take any action, incur any expense, or perform or
discharge any  obligation, duty or liability whatsoever under any of the
Leases or otherwise.

C-8

4.11

Waiver of Stay, Moratorium and Similar Rights.
 Mortgagor agrees, to the full extent that it may lawfully do so, that it
will not at any time insist upon or plead or in any way take advantage of any
stay, marshalling of assets, extension, redemption or moratorium law now or
hereafter in force and effect so as to prevent or hinder the enforcement of the
provisions of this Mortgage or the Indebtedness secured hereby, or any agreement
between Mortgagor and Mortgagee or any rights or remedies of Mortgagee.

SECTION
5.

ASSIGNMENT
OF RENTS AND LEASES

5.1

Assignment.  In furtherance of and in addition to the
assignment made by Mortgagor herein, Mortgagor hereby absolutely and
unconditionally assigns, sells, transfers and conveys to Mortgagee all of its
right, title and interest in and to all Leases, whether now existing or
hereafter entered into, and all of its right, title and interest in and to all
Rents.  This assignment is an absolute assignment and not an assignment for
additional security only.  So long as no Event of Default shall have
occurred and be continuing, Mortgagor shall have a revocable license from
Mortgagee to exercise all rights extended to the landlord under the Leases,
including the right to receive and collect all Rents and to hold the Rents in
trust for use in the payment and performance of the Obligations and to otherwise
use the same.  The foregoing license is granted subject to the conditional
limitation that no Event of Default shall have occurred and be continuing.
 Upon the occurrence and during the continuance of an Event of Default,
whether or not legal proceedings have commenced, and without regard to waste,
adequacy of security for the Obligations or solvency of Mortgagor, the license
herein granted shall automatically expire and terminate, without notice by
Mortgagee (any such notice being hereby expressly waived by Mortgagor).

5.2

Perfection Upon Recordation.  Mortgagor acknowledges
that Mortgagee has taken all actions necessary to obtain, and that upon
recordation of this Mortgage in the applicable jurisdiction, Mortgagee shall
have, to the extent permitted under applicable law and subject to Permitted
Liens, a valid and fully perfected, first priority, present assignment of the
Rents arising out of the Leases and all security for such Leases.
 Mortgagor acknowledges and agrees that upon recordation of this Mortgage
Mortgagee’s interest in the Rents shall be deemed to be fully perfected,
“choate” and enforced as to Mortgagor and all third parties, including, without
limitation, any subsequently appointed trustee in any case under Title 11 of the
United States Code (the “Bankruptcy Code”), without the necessity of
commencing a foreclosure action with respect to this Mortgage, making formal
demand for the Rents, obtaining the appointment of a receiver or taking any
other affirmative action.

5.3

Bankruptcy Provisions.  Without limitation of the
absolute nature of the assignment of the Rents hereunder, Mortgagor and
Mortgagee agree that (i) this Mortgage shall constitute a “security agreement”
for purposes of Section 552(b) of the Bankruptcy Code, (ii) the security
interest created by this Mortgage extends to property of Mortgagor acquired
before the commencement of a case in bankruptcy and to all amounts paid as
Rents, and (iii) such security interest shall extend to all Rents acquired by
the estate after the commencement of any case in bankruptcy.  

5.4

No Merger of Estates.  So long as any part of the
Indebtedness or the Obligations secured hereby remain unpaid and undischarged,
the fee and leasehold estates to the Mortgaged 

C-9

Property shall not merge, but shall remain separate and distinct,
notwithstanding the union of such estates either in Mortgagor, Mortgagee, any
tenant or any third party by purchase or otherwise.

SECTION
6.

SECURITY
AGREEMENT

6.1

Security Interest.  This Mortgage constitutes a
“security agreement” on personal property within the meaning of the UCC and
other applicable law and with respect to all of Mortgagor’s right, title and
interest in the Personalty, Fixtures, Leases, Rents, Deposit Accounts, Property
Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards.  To
this end, Mortgagor grants to Mortgagee a first and prior security interest,
subject to Permitted Liens, in the Personalty, Fixtures, Leases, Rents, Deposit
Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance, Condemnation
Awards and all other Mortgaged Property which is personal property to secure the
payment of the Indebtedness and performance of the Obligations, and agrees that
Mortgagee shall have all the rights and remedies of a secured party under the
UCC with respect to such property.  Any notice of sale, disposition or
other intended action by Mortgagee with respect to the Personalty, Fixtures,
Leases, Rents, Deposit Accounts, Property Agreements, Tax Refunds, Proceeds,
Insurance and Condemnation Awards sent to Mortgagor at least ten (10) days prior
to any action under the UCC shall constitute reasonable notice to Mortgagor.

6.2

Financing Statements.  Mortgagor hereby authorizes
Mortgagee to file, in form and substance satisfactory to Mortgagee, such
financing statements and such further assurances as Mortgagee may, from time to
time, reasonably consider necessary to create, perfect and preserve Mortgagee’s
security interest hereunder and Mortgagee may cause such statements and
assurances to be recorded and filed, at such times and places as may be required
or permitted by law to so create, perfect and preserve such security interest.
 

6.3

Fixture Filing.  This Mortgage shall also constitute a
“fixture filing” for the purposes of the UCC against all of the Mortgaged
Property which is or is to become fixtures.  Information concerning the
security interest herein granted may be obtained at the addresses of Debtor
(Mortgagor) and Secured Party (Mortgagee) as set forth in the first paragraph of
this Mortgage.

SECTION
7.

ATTORNEY-IN-FACT
 

Mortgagor hereby irrevocably appoints Mortgagee and its successors
and assigns, as its attorney-in-fact, which agency is coupled with an interest
and with full power of substitution, effective upon and during the continuance
of an Event of Default (i) to execute and/or record any notices of completion,
cessation of labor or any other notices that Mortgagee deems appropriate to
protect Mortgagee’s interest, if Mortgagor shall fail to do so within ten (10)
days after written request by Mortgagee, (ii) upon the issuance of a deed
pursuant to the foreclosure of this Mortgage or the delivery of a deed in lieu
of foreclosure, to execute all instruments of assignment, conveyance or further
assurance with respect to the Leases, Rents, Deposit Accounts, Fixtures,
Personalty, Property Agreements, Tax Refunds, Proceeds, Insurance and
Condemnation Awards in favor of the grantee of any such deed and as may be
necessary or desirable for such purpose, (iii) to prepare, execute and file or
record applications for registration 

C-10

and like papers (other than UCC filings, which no longer require
execution by the debtor) reasonably necessary to create, perfect or preserve
Mortgagee’s security interests and rights in or to any of the Mortgaged Property
and (iv) while any Event of Default exists and is continuing, to perform any
obligation of Mortgagor hereunder; provided, (a) Mortgagee shall not under any
circumstances be obligated to perform any obligation of Mortgagor; (b) any sums
advanced by Mortgagee in such performance shall be added to and included in the
Indebtedness and shall bear interest at the rate or rates at which interest is
then computed on the Indebtedness; (c) Mortgagee as such attorney-in-fact shall
only be accountable for such funds as are actually received by Mortgagee; and
(d) Mortgagee shall not be liable to Mortgagor or any other person or entity for
any failure to take any action which it is empowered to take under this
Section.

SECTION
8.

MORTGAGEE
AS AGENT

Mortgagee has been appointed to act as Mortgagee hereunder by
Lenders.  Mortgagee shall be obligated, and shall have the right hereunder,
to make demands, to give notices, to exercise or refrain from exercising any
rights, and to take or refrain from taking any action (including the release or
substitution of Mortgaged Property), solely in accordance with this Mortgage and
the Credit Agreement; provided, Mortgagee shall exercise, or refrain from
exercising, any remedies provided for herein in accordance with the instructions
of (i) Required Lenders, or (ii) after payment in full of all Obligations under
the Credit Agreement and the other Credit Documents, the holders of a majority
of the aggregate notional amount (or, with respect to any Hedge Agreement that
has been terminated in accordance with its terms, the amount then due and
payable (exclusive of expenses and similar payments but including any early
termination payments then due) under such Hedge Agreement) under all Hedge
Agreements (Required Lenders or, if applicable, such holders being referred to
herein as “Required Obligees”).  In furtherance of the foregoing
provisions of this Section, each Lender, by its acceptance of the benefits
hereof, agrees that it shall have no right individually to realize upon any of
the Mortgaged Property, it being understood and agreed by such Lender that all
rights and remedies hereunder may be exercised solely by Mortgagee for the
benefit of Lenders in accordance with the terms of this Section.  Mortgagee
shall at all times be the same Person that is Administrative Agent under the
Credit Agreement.  Written notice of resignation by Administrative Agent
pursuant to terms of the Credit Agreement shall also constitute notice of
resignation as Mortgagee under this Mortgage; removal of Administrative Agent
pursuant to the terms of the Credit Agreement shall also constitute removal as
Mortgagee under this Mortgage; and appointment of a successor Administrative
Agent pursuant to the terms of the Credit Agreement shall also constitute
appointment of a successor Mortgagee under this Mortgage.  Upon the
acceptance of any appointment as Administrative Agent under the terms of the
Credit Agreement by a successor Administrative Agent, that successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring or removed Mortgagee under
this Mortgage, and the retiring or removed Mortgagee under this Mortgage shall
promptly (i) transfer to such successor Mortgagee all sums, securities and other
items of Mortgaged Property held hereunder, together with all records and other
documents necessary or appropriate in connection with the performance of the
duties of the successor Mortgagee under this Mortgage, and (ii) execute and
deliver to such successor Mortgagee such amendments to financing statements, and
take such other actions, as may be necessary or appropriate in connection with
the assignment to such successor Mortgagee of the security 

C-11

interests created hereunder, whereupon such retiring or removed
Mortgagee shall be discharged from its duties and obligations under this
Mortgage.  After any retiring or removed Administrative Agent’s resignation
or removal hereunder as Mortgagee, the provisions of this Mortgage shall inure
to its benefit as to any actions taken or omitted to be taken by it under this
Mortgage while it was Mortgagee hereunder.  Every deed, mortgage,
discharge, release or satisfaction thereof or other instrument or document
executed or action taken by any entity or representative thereof last appearing
from the public records with which this Mortgage has been filed to be the
Mortgagee hereunder shall be conclusive evidence in favor of every person or
entity relying thereon or claiming thereunder that at the time of the delivery
thereof or of the taking of such action, such instrument or document or other
action taken was valid, binding, effective and legally enforceable.

SECTION
9.

MISCELLANEOUS

9.1

Notices, etc.  Any notice required or permitted to be
given under this Mortgage shall be given in accordance with Section 13.2 of the
Credit Agreement.  No failure or delay on the part of Mortgagee in the
exercise of any power, right or privilege hereunder or under any other Credit
Document shall impair such power, right or privilege or be construed to be a
waiver of any default or acquiescence therein, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other power, right or privilege.  All rights and
remedies existing under this Mortgage and the other Credit Documents are
cumulative to, and not exclusive of, any rights or remedies otherwise available.
 In case any provision in or obligation under this Mortgage shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.  Subject to the provisions of the Credit
Agreement, all covenants hereunder shall be given independent effect so that if
a particular action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or would otherwise be within
the limitations of, another covenant shall not avoid the occurrence of a Default
or an Event of Default if such action is taken or condition exists.  This
Mortgage shall be binding upon and inure to the benefit of Mortgagee and
Mortgagor and their respective successors and assigns.  Mortgagor shall
not, without the prior written consent of Mortgagee, assign any rights, duties
or obligations hereunder.  Upon payment in full of the Indebtedness and
performance in full of the Obligations Mortgagee, at Mortgagor’s expense, shall
release the liens and security interests created by this Mortgage and reconvey
the Mortgaged Property to Mortgagor.  This Mortgage and the other Credit
Documents embody the entire agreement and understanding between Mortgagee and
Mortgagor and supersede all prior agreements and understandings between such
parties relating to the subject matter hereof and thereof.  Accordingly,
the Credit Documents may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties.  There are no
unwritten oral agreements between the parties.

9.2

GOVERNING LAW.  THE PROVISIONS OF THIS MORTGAGE
REGARDING THE CREATION, PERFECTION AND ENFORCEMENT OF THIS MORTGAGE SHALL BE
GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE IN WHICH THE MORTGAGED
PROPERTY IS LOCATED.  ALL OTHER PROVISIONS OF THIS MORTGAGE AND THE RIGHTS
AND OBLIGATIONS OF MORTGAGOR AND MORTGAGEE SHALL BE GOVERNED BY, AND SHALL BE

C-12

CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

9.3

Subrogation.  To the extent proceeds of the Loan have
been used to extinguish, extend or renew any indebtedness against the Mortgaged
Property, then Mortgagee shall be subrogated to all of the rights, liens and
interests existing against the Mortgaged Property and held by the holder of such
indebtedness and such former rights, liens and interests, if any, are not
waived, but are continued in full force and effect in favor of Mortgagee.

9.4

Credit Agreement.  If any conflict or inconsistency
exists between this Mortgage and the Credit Agreement, the Credit Agreement
shall govern.

9.5

Waiver of Stay, Moratorium and Similar Rights.
 Mortgagor agrees, to the full extent that it may lawfully do so, that it
will not at any time insist upon or plead or in any way take advantage of any
appraisement, valuation, stay, marshalling of assets, extension, redemption or
moratorium law now or hereafter in force and effect so as to prevent or hinder
the enforcement of the provisions of this Mortgage or the indebtedness secured
hereby, or any agreement between Mortgagor and Mortgagee or any rights or
remedies of Mortgagee.

SECTION
10.

LOCAL
LAW PROVISIONS

[TO BE INSERTED]

 [NO FURTHER TEXT ON THIS PAGE]

C-13

IN
WITNESS WHEREOF, Mortgagor has on the date set forth in the acknowledgment
hereto, effective as of the date first above written, caused this instrument to
be duly executed and delivered by authority duly given.

			
	
WITNESSES:
	
[
                                      ],
a

                            corporation

	
 
	

By:
	
 

	
______________________
	
 
	
Name:

	
Print
Name:
	

	
Title:

	

	
 

	
______________________
	
 

	
Print
Name:
	
 

C-14

STATE
OF NEW YORK

)

)
ss.:

COUNTY
OF NEW YORK

)

On this ___ day of ________, 2007, before me, the undersigned, a
Notary Public in and for said state, personally appeared ________________,
personally known to me or proved to me on the basis of satisfactory evidence to
be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her capacity, and that by his/her
signature on the instrument, the person, and the entity upon behalf of which the
person acted, executed the instrument, and that the same was his/her free act
and deed as such officer and the free act and deed of said corporation.

IN
WITNESS WHEREOF, I hereunto set my hand and official seal.

___________________________

Notary
Public

NOTARIAL
SEAL

My
Commission Expires:

C-15

EXHIBIT A
TO

MORTGAGE

Legal Description of
Premises:

C-16

EXHIBIT D

FORM
OF PERFECTION CERTIFICATE

In
connection with (i) that certain Credit Agreement dated as of July 6, 2007 (the

“Credit Agreement”), by and among Dollar General Corporation (the
“Borrower” or the “Debtor”), the lenders party thereto from time
to time, Citicorp North America, Inc., as administrative agent (in such
capacity, the “Administrative Agent”) and collateral agent, Goldman Sachs
Credit Partners L.P. (“GSCP”), as syndication agent, and Lehman
Commercial Paper Inc. (“LCPI”) and Wachovia Bank, National Association
(“Wachovia”), as documentation agents, and (ii) that certain ABL Credit
Agreement dated as of July 6, 2007 (the “ABL Credit Agreement”), by and
among the Borrower, the subsidiary borrowers party thereto (together with the
Borrower, the “Grantors”), the lenders party thereto from time to time,
The CIT Group/Business Credit, Inc., as administrative agent and as collateral
agent, GSCP, as
syndication agent, and LCPI and Wachovia, as documentation
agents, each Grantor hereby certifies as follows:

I.

CURRENT
INFORMATION

A.

Legal
Names, Organizations, Jurisdictions of Organization and Organizational
Identification Numbers.  The full and exact legal name (as it
appears in each respective certificate or articles of incorporation, limited
liability membership agreement or similar organizational documents, in each case
as amended to date), the type of organization, the jurisdiction of organization
(or formation, as applicable), the Federal Employer Identification
Number/Taxpayer Identification Number, and the organizational identification
number of the Debtor and each other Grantor are set forth on Schedule I.A.

B.

Chief
Executive Offices and Mailing Addresses.  The chief executive
office address of the Debtor and each other Grantor are set forth on Schedule
I.B.

C.

Special
Debtors.  None of the Grantors is: (i) a transmitting utility (as
defined in UCC Section 9-102(a)(80)), (ii) primarily engaged in farming
operations (as defined in UCC Section 9-102(a)(35)), (iii) a trust, (iv) a
foreign air carrier within the meaning of the federal aviation act of 1958, as
amended or (v) a branch or agency of a bank which bank is not organized under
the law of the United States or any state thereof.

D.

Trade
Names/Assumed Names.  Set forth on Schedule I.D. is each trade name
or assumed name to the knowledge of each Grantor currently used by the Debtor or
any other Grantor or by which the Debtor or any Grantor is known or is
transacting any business.

E.

Changes
in Names, Jurisdiction of Organization or Corporate Structure. Except as
set forth on Schedule I.E., neither the Debtor nor any other Grantor has changed
its name or jurisdiction of organization within the past five (5) years.
 Schedule I.E. also sets forth the name of any business or organization to
which the Debtor or any other Grantor became the successor by merger,
consolidation, acquisition, change in form or otherwise within the past five (5)
years, together with the date of the relevant change.

D-1

F.

Prior
Addresses.

Except
as set forth on Schedule I.F., neither the Debtor nor any other Grantor has
changed its chief executive office within the past five (5) years.

G.

Acquisitions
of Equity Interests or Assets.  

Except
as set forth on Schedule I.G., neither the Debtor nor any Grantor has acquired
the equity interests of another entity or substantially all the assets of
another entity within the past five (5) years.

II.

INFORMATION
REGARDING CERTAIN COLLATERAL

A.

Investment
Related Property

1.

Equity
Interests.  Set forth on Schedule II.A.1 is a list of all equity
interests owned by the Debtor and each Grantor together with the type of
organization which issued such equity interests (e.g. corporation, limited
liability company, partnership or trust).

2.

Debt
Securities & Instruments.  Set forth on Schedule II.A.2 is a
list of all debt securities and instruments evidencing Indebtedness (as defined
in the Credit Agreement) (other than checks to be deposited in the ordinary
course of business) owed to the Debtor or any other Grantor in the principal
amount of greater than $5,000,000.

B.

Intellectual
Property.  Set forth on Schedule II.B is a list of all federal
registrations and applications to register copyrights, patents, and trademarks
in the United States, as well as material unregistered trademarks, material
foreign registrations and applications to register trademarks, and material
exclusive intellectual property licenses, in each case owned by the Debtor and
each other Grantor.

C.

.          
Tangible Personal Property in Possession of Warehousemen and
Bailees. Except as set forth on Schedule II.C, no persons
(including warehousemen and bailees) other than the Debtor or any other Grantor
have possession of any material amount (fair market value of $5,000,000 or more
per location) of tangible personal property of the Debtor or any other
Grantor.

D.

Tangible
Personal Property in Extended Article 9 Transition States and Former Article 9
Jurisdictions.  Set forth on Schedule II.D are all the
locations within the State of Arizona or the Commonwealth of Puerto Rico where
the Debtor or any other Grantor currently maintains or has maintained any
material amount (fair market value of $5,000,000 or more) of its tangible
personal property (including goods, inventory and equipment) of such Debtor or
any other Grantor (whether or not in the possession of such Debtor or any other
Grantor) within the past five (5) years.

D-2

IN
WITNESS WHEREOF, the undersigned hereto has caused this Perfection Certificate
to be executed as of the date above first written by its officer thereunto
authorized.

			
	
 
	
DOLLAR GENERAL CORPORATION

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

			
	
 
	
DG RETAIL, LLC, as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
Dollar
General Corporation
as sole member

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

			
	
 
	
DOLGENCORP, INC., as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

 

			
	
 
	
DOLGENCORP OF
NEW YORK, INC., as
Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

			
	
 
	
DOLGENCORP OF
TEXAS, INC., as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

S-1

[PERFECTION CERTIFICATE SIGNATURE PAGES]

D-3

			
	
 
	
DG TRANSPORTATION, INC., as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

			
	
 
	
DG LOGISTICS, LLC, as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
DG
Transportation, Inc. as Manager

	
 
	
 
	
Wade Smith

	
 
	
 
	
Treasurer

			
	
 
	
DGC PROPERTIES LLC, as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Dolgencorp, Inc. as sole member

	
 
	
 
	
Wade Smith

	
 
	
 
	
Treasurer

 

			
	
 
	
SOUTH BOSTON
HOLDINGS, INC., as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

			
	
 
	
SUN-DOLLAR,
L.P., as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
South Boston Holdings, Inc. general partner

	
 
	
 
	
Wade Smith

	
 
	
 
	
Treasurer

			
	
 
	
By:
	
/s/ Wade
Smith

	
 
	
 
	
Dolgencorp,
Inc. limited partner

	
 
	
 
	
Wade
Smith

	
 
	
 
	
Treasurer

S-2

[PERFECTION CERTIFICATE SIGNATURE PAGES]

D-4

				
	
 
	
SOUTH BOSTON FF&E, LLC, as Grantor

	
 
	
 

	
 
	
By:  Sun-Dollar, L.P. (sole member)

	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
South Boston Holdings, Inc. – its general partner

	
 
	
 
	
Wade Smith

	
 
	
 
	
Treasurer

			
	
 
	
DG PROMOTIONS, INC., as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

			
	
 
	
DOLLAR GENERAL
INVESTMENT, INC., as 
Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

			
	
 
	
DOLLAR GENERAL
MERCHANDISING, INC.,
as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade
Smith

	
 
	
 
	
Name: Wade Smith

	
 
	
 
	
Title: Treasurer

S-3

[PERFECTION CERTIFICATE SIGNATURE PAGES]

D-5

			
	
 
	
DOLLAR GENERAL PARTNERS, as Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Dollar General
Corporations – its authorized
general partner

	
 
	
 
	
Wade Smith

	
 
	
 
	
Treasurer

			
	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Dollar General
Merchandising, Inc. – its
general partner

	
 
	
 
	
Wade Smith

	
 
	
 
	
Treasurer

 

			
	
 
	
DGC PROPERTIES
OF KENTUCKY LLC, as 
Grantor

	
 
	
 
	
 

	
 
	
By:
	
/s/ Wade Smith

	
 
	
 
	
Dollar General Partners as sole member

	
 
	
 
	
Dollar
General Corporation – its authorized
general partner

	
 
	
 
	
Wade Smith

	
 
	
 
	
Treasurer

S-4

[PERFECTION CERTIFICATE SIGNATURE PAGES]

D-6

Schedule I.A

Legal Names, Organizations, Jurisdictions of Organization and
Organizational Identification Numbers

					
	
Name of
Debtor/Grantor
	
Type of
Organization
	
Jurisdiction
of Organization/Formation
	

F.E.I.N. /
T.I.N.
	
Organizational
Identification Number

	
Dollar General
Corporation
	
Corporation
	
Tennessee
	
61-0502302
	
Control Number
0351611

	
DG Retail, LLC
	
Limited Liability
Company
	
Tennessee
	
36-4577242
	
Control Number
0498077

	
Dolgencorp, Inc.
	
Corporation
	
Kentucky
	
61-0852764
	
Control Number
0017665

	
Dolgencorp of New York,
Inc.
	
Corporation
	
Kentucky
	
62-1829863
	
Control Number
0499060

	
Dolgencorp of Texas,
Inc.
	
Corporation
	
Kentucky
	
61-1193136
	
Control Number
0268821

	
DG Transportation,
Inc.
	
Corporation
	
Tennessee
	
37-1517488
	
Control Number
0486177

	
DG Logistics, LLC
	
Limited Liability
Company
	
Tennessee
	
62-1805098
	
Control Number
0381549

	
DGC Properties LLC
	
Limited Liability
Company
	
Delaware
	
36-4498859
	
Control Number
3530337

	
South Boston Holdings,
Inc.
	
Corporation
	
Delaware
	
20-5220571
	
Control Number
4179362

	
Sun-Dollar, L.P.
	
Limited Partnership
	
California
	
95-4629930
	
199711200016

	
South Boston FF&E,
LLC
	
Limited Liability
Company
	
Delaware
	
26-0411224
	
Control Number
4287970

	
DG Promotions, Inc.
	
Corporation
	
Tennessee
	
62-1792083
	
Control Number
0375322

	
Dollar General Investment,
Inc.
	
Corporation
	
Delaware
	
48-1268966
	
Control Number
3535431

	
Dollar General
Merchandising, Inc.
	
Corporation
	
Tennessee
	
82-0577749
	
Control Number:
0437967

	
Dollar General
Partners
	
General Partnership
	
Kentucky
	
61-1193137
	
Control Number
0589039

	
DGC Properties of Kentucky
LLC
	
Limited Liability
Company
	
Delaware
	
37-1432210
	
Control Number
3530336

D-7

Schedule I.B

Chief Executive Offices

		
	
Name of
Debtor/Grantor
	
Address of Chief Executive
Office

	
Dollar General
Corporation
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
DG Retail, LLC
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
Dolgencorp, Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
Dolgencorp of New York,
Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
Dolgencorp of Texas,
Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
DG Transportation,
Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
DG Logistics, LLC
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
DGC Properties LLC
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
South Boston Holdings,
Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
Sun-Dollar, L.P.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
South Boston FF&E,
LLC
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
DG Promotions, Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
Dollar General Investment,
Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
Dollar General
Merchandising, Inc.
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
Dollar General
Partners
	
100 Mission Ridge

Goodlettsville, TN 37072-2171

	
DGC Properties of Kentucky
LLC
	
100 Mission Ridge

Goodlettsville, TN
37072-2171

D-8

Schedule I.D

Trade Names/Assumed Names

		
	
Debtor/Grantor
	
Trade/Assumed
Name

	
Dollar General
Corporation

DG Retail, LLC

Dolgencorp, Inc.

Dolgencorp of New York,
Inc.

Dolgencorp of Texas,
Inc.

DG Transportation, Inc.

DG Logistics, LLC

DGC Properties LLC

South Boston Holdings,
Inc.

Sun-Dollar, L.P.

South Boston FF&E,
LLC

DG Promotions, Inc.

Dollar General Investment,
Inc.

Dollar General
Merchandising, Inc.

Dollar General Partners

DGC Properties of Kentucky
LLC
	
Dollar
General

D-9

		
	
Debtor/Grantor
	
Trade/Assumed
Name

	
Dollar General
Corporation

DG Retail, LLC

Dolgencorp, Inc.

Dolgencorp of New York,
Inc.

Dolgencorp of Texas,
Inc.

DG Transportation, Inc.

DG Logistics, LLC

DGC Properties LLC

South Boston Holdings,
Inc.

Sun-Dollar, L.P.

South Boston FF&E,
LLC

DG Promotions, Inc.

Dollar General Investment,
Inc.

Dollar General
Merchandising, Inc.

Dollar General Partners

DGC Properties of Kentucky
LLC
	
Dollar General
Stores

D-10

Schedule I.E

Changes in Names, Jurisdiction of Organization or Corporate
Structure

			
	
Debtor/Grantor
	
Date of
Change
	
Description of
Change

	
DG Promotions, Inc.
	
7/29/2005
	
Name changed from: Nations
Title Company, Inc.

	
Dollar General
Merchandising, Inc.
	
8/3/2005
	
Name changed from: Lonestar
Administrative Services, Inc.

	
Dollar General
Corporation
	
9/29/2005
	
Merger of Dade Lease
Management, Inc. into Dollar General Corporation

	
Dollar General
Corporation1
	
9/28/2005
	
Merger of The Greater
Cumberland Insurance Company into Dollar General Financial,
Inc.1

	
Dollar General
Corporation
	
9/29/2005
	
Merger of Dollar General
Financial, Inc. into Dollar General Corporation

	
Dollar General
Corporation
	
9/29/2005
	
Received all interests of
Dollar General Intellectual Property, LP in connection with the latter’s
dissolution.

	
Sun-Dollar, L.P.
	
1/17/2007
	
Merger of Dolgen Remainder,
LLC into Sun-Dollar, L.P.

	
 
	
 
	
 

1Dollar General Financial, Inc. merged into
Dollar General Corporation.

D-11

Schedule I.F

Prior Addresses

		
	
Debtor/Grantor
	
Prior
Address/City/State/Zip Code

	
None.
	
 

	
 
	
 

D-12

Schedule I.G

Acquisitions of Equity Interests or Assets

			
	
Debtor/Grantor
	
Date of
Acquisition
	
Description of
Acquisition

	
 
	
 
	
 

	
Dollar General
Corporation
	
9/29/2005
	
Merger of Dade Lease
Management, Inc. into Dollar General Corporation

	
Dollar General
Corporation1
	
9/28/2005
	
Merger of The Greater
Cumberland Insurance Company into Dollar General Financial, Inc.
1

	
Dollar General
Corporation
	
9/29/2005
	
Merger of Dollar General
Financial, Inc. into Dollar General Corporation

	
Dollar General
Corporation
	
9/29/2005
	
Received all interests of
Dollar General Intellectual Property, LLP in connection with the latter’s
dissolution.

	
Sun-Dollar, L.P.
	
1/17/2007
	
Merger of Dolgen Remainder,
LLC into Sun-Dollar, L.P.

	
 
	
 
	
 

	
Dollar General Corporation
and DGC Properties LLC
	
June
2002
	
Dollar General acquired DGC
Properties LLC from Atlantic Financial in connection with the unwinding of
a synthetic lease.

	
Dollar General Corporation
and DGC Properties Kentucky LLC
	
June
2002
	
Dollar General acquired DGC
Properties Kentucky LLC from Atlantic Financial in connection with the
unwinding of a synthetic lease.

	
DG Transportation,
Inc.
	
10/1/2005
	
Contribution of Dolgencorp
Inc.’s sole membership in DG Logistics, LLC to DG Transportation,
Inc.

	
Dollar General
Merchandising, Inc.
	
10/14/2005
	
Contribution of Dollar
General Corporation’s partnership interests in Dollar General Partners to
Dollar General Merchandising, Inc.

D-13

			
	
Debtor/Grantor
	
Date of
Acquisition
	
Description of
Acquisition

	
DG Retail, LLC and
Dolgencorp, Inc.
	
10/22/2005
	
Asset purchase by DG
Retail, LLC of certain stores, assets and employees of Dolgencorp,
Inc.

	
Sun-Dollar, L.P.
	
6/30/2006
	
Realty Holdings of America,
LLC. transferred ownership of Dolgen Remainder, L.L.C. interests to
Sun-Dollar L.P..  Sun-Dollar L.P. had owned a leasehold estate while
Dolgen Remainder L.L.C. had owned a remainder interest, so simple
ownership was created.

	
Sun-Dollar, L.P.
	
6/30/2006
	
Purchase of general
partnership interests of Sun-Dollar L.P. from SunAmerica Life Insurance
Company; purchase of general partnership interests from Sun-Dollar,
Inc.

1Dollar General Financial, Inc. merged into
Dollar General Corporation. 

D-14

Schedule II.A.1

Equity Interests

							
	
  Grantor
	
  Issuer
	
Class of Equity Interest
	
Certificated (Y/N)
	
Certificate No(s)
	
Number of Units
	
Percentage of Issued and Outstanding Units

	
Dolgencorp, Inc. 
	
South Boston Holdings,
Inc.
	
Common Stock
	
Y
	
1
	
1,000
	
100%

	
Dollar General Corporation

	
Dollar General
Merchandising, Inc.
	
Common Stock
	
Y
	
1
	
1,000
	
100%

	
Dollar General Corporation

	
DG Promotions, Inc.
	
Common Stock
	
Y
	
1
	
100
	
100%

	
Dolgencorp, Inc.
	
Dolgencorp of Texas,
Inc.
	
Common Stock
	
Y
	
1
	
1,000
	
100%

	
Dolgencorp, Inc.
	
Dolgencorp of New York,
Inc.
	
Common Stock
	
Y
	
1
	
1,000
	
100%

	
Dolgencorp, Inc.
	
DG Transportation,
Inc.
	
Common Stock 
	
Y
	
1
	
1,000
	
100%

	
Dollar General
Corporation
	
Dolgencorp, Inc.
	
Common Stock
	
Y
	
1
	
642
	
100%

	
Dollar General
Corporation
	
Dollar General Investment,
Inc.
	
Common Stock
	
Y
	
1
	
2,000
	
100%

	
Dolgencorp, Inc.
	
DGC Properties LLC
(DE)
	
1 membership
interest
	
N
	
-
	
 
	
100%

	
South Boston Holdings,
Inc.; Dolgencorp, Inc.
	
Sun-Dollar, L.P. (CA)
	
2 Partnership
Interests
	
N
	
-
	
South
Boston Holdings, Inc. – 1.00% ownership

Dolgencorp,
Inc. – 99.00% ownership
	
100%

	
Dollar General
Corporation
	
DG Retail LLC (TN)
	
1 membership
interest
	
N
	
-
	
 
	
100%

	
DG Transportation
Inc.
	
DG Logistics LLC
(TN)
	
1 membership
interest
	
N
	
-
	
 
	
100%

D-15

							
	
  Grantor
	
  Issuer
	
Class of Equity Interest
	
Certificated (Y/N)
	
Certificate No(s)
	
Number of Units
	
Percentage of Issued and Outstanding Units

	
Sun-Dollar, L.P.
	
South Boston FF&E (DE)

	
1 membership
interest
	
N
	
-
	
 
	
100%

	
Dolgencorp, Inc.; Dollar
General Corporation; Dollar General Merchandising, Inc.
	
Dollar General Partners
(KY)
	
3 Partnership
Interests
	
N
	
-
	
Dollar
General Corporation – 1.00% ownership

Dollar
General
Merchandising – 99.00% ownership
	
100%

	
Dollar General Partners (KY
partnership)
	
DGC Properties of Kentucky,
LLC (DE)
	
1 membership
interest
	
N
	
-
	
 
	
100%

	
Dollar General
Corporation
	
Dollar General Global
Sourcing Limited (Hong Kong)
	
Ordinary
 Shares
	
Y
	
4,5
	
999 of
which 650 pledged
	
99.9% of
which

65%pledged

	
Dollar General
Corporation
	
Ashley River Insurance
Company, Inc. (SC)
	
Common Stock
	
Y
	
1
	
2,000
	
100%

	
Dollar General
Corporation
	
DGC Holdings, LLC
	
1 membership
interest
	
N
	
-
	
 
	
100%

	
Dollar General
Corporation
	
Dollar General Literacy
Foundation
	
1 membership
interest
	
N
	
-
	
 
	
100%

D-16

Schedule II.A.2

Debt Securities & Instruments

			
	
Issuer of
Instrument
	
Grantor
	
Principal
Amount of Instrument

	
Dollar General
Partners
	
Dolgencorp, Inc.
	
$45,592,000 

	
Dolgencorp, Inc.
	
Dollar General Investment,
Inc.
	
$95,700,000 

	
Dolgencorp, Inc.
	
Dollar General Investment,
Inc.
	
$284,994,540 

	
Dolgencorp of Texas,
Inc.
	
Dollar General Investment,
Inc.
	
$21,719,882 

	
Dollar General
Partners
	
Dollar General Investment,
Inc.
	
$10,885,995 

D-17

Schedule II.B

1.

Registered
Copyrights and Copyright Applications 

			
	
Debtor/Grantor
	
Title
	
Application/ Registration No.

	
Dollar General
Intellectual Property LP
	
Dollar
General
	
VA-1-074-378

	
Dollar General
Intellectual Property LP
	
Birdhouse in
the sky
	
VA-1-084-913

	
Dollar General
Intellectual Property LP
	
Play
ball
	
VA-1-084-914

	
Dollar General
Intellectual Property LP
	
Southern
magnolia
	
VA-1-084915

	
Dollar General
Intellectual Property LP
	
Greater
Cumberland logo
	
VA-1-101-214

	
Dollar General
Intellectual Property LP
	
Two large
magnolias design
	
VA-1-104-452

	
Dollar General
Intellectual Property LP
	
Two magnolias
within a circle
	
VAu-332-786

	
Dollar General
Intellectual Property LP
	
Six magnolias
in a ring
	
VAu-387-072

	
Dollar General
Intellectual Property LP
	
Two
magnolias
	
VAu-387-073

	
Dollar General
Intellectual Property LP
	
Four magnolias
in a band
	
VAu-439-205

	
Dollar General
Intellectual Property LP
	
Two magnolias
within a circle
	
VAu-501-223

	
Dollar General
Intellectual Property LP
	
Sun &
shade, you’ve got it made
	
VAu-502-998

	
Dollar General
Intellectual Property LP
	
Iris
collection
	
VAu-515-355

	
Dollar General
Intellectual Property LP
	
Beautiful
day
	
VAu-515-356

	
Dollar General
Intellectual Property LP
	
Snowman
family
	
VAu-515-357

	
Dollar General
Intellectual Property LP
	
Checkered bear
design
	
VAu-515-358

	
Dollar General
Intellectual Property LP
	
Fish
bowl
	
VAu-515-359

	
Dollar General
Intellectual Property LP
	
Snow day
	
VAu-515-360

	
Dollar General
Intellectual Property LP
	
Weather
vane
	
VAu-515-361

	
Dollar General
Intellectual Property LP
	
Americana
Christmas
	
VAu-515-362

	
Dollar General
Intellectual Property LP
	
American
flag
	
VAu-515-363

	
Dollar General
Intellectual Property LP
	
Summertime
watermelon
	
VAu-515-364

2.

Registered
Trademarks and Trademark Applications

A.
U.S. 

			
	
Debtor/Grantor
	
Title
	
Serial/ Registration No.

	
Dollar General
Merchandising, Inc.
	
SAVE TIME. SAVE
MONEY. EVERY DAY.
	
3,217,925

	
Dollar General
Merchandising, Inc.
	
AMERICAN
VALUE
	
3,174,687

	
Dollar General
Merchandising, Inc.
	
DOLLAR
GENERAL
	
3,159,752

	
Dollar General
Merchandising, Inc.
	
DOLLAR
GENERAL
	
3,118,060

	
Dollar General
Merchandising, Inc.
	
DOLLAR GENERAL
AND DESIGN
	
2,947,983

	
Dollar General
Merchandising, Inc.
	
DOLLAR
GENERAL
	
2,947,982

D-18

			
	
Debtor/Grantor
	
Title
	
Serial/ Registration No.

	
Dollar General
Merchandising, Inc.
	
DOLLAR
GENERAL
	
2,947,981

	
Dollar General
Merchandising, Inc.
	
DOLLAR
GENERAL
	
2,947,979

	
Dollar General
Merchandising, Inc.
	
DOLLAR GENERAL
MARKET
	
2,912,893

	
Dollar General
Merchandising, Inc.
	
DOLLAR
GENERAL
	
2,673,316

	
Dollar General
Merchandising, Inc.
	
KISSY KISSY HUG
HUG
	
2,599,690

	
Dollar General
Merchandising, Inc.
	
FINE &
DANDY
	
2,522,829

	
Dollar General
Merchandising, Inc.
	
VICTORIAN
BEAUTY
	
2,576,769

	
Dollar General
Merchandising, Inc.
	
PREMIER
INTERNATIONAL
	
2,556,093

	
Dollar General
Merchandising, Inc.
	
SAVE TIME. SAVE
MONEY. DOLLAR GENERAL.
	
2,602,816

	
Dollar General
Merchandising, Inc.
	
HOLIDAY
STYLE
	
2,614,861

	
Dollar General
Merchandising, Inc.
	
CLOVER
VALLEY
	
2,679,921

	
Dollar General
Merchandising, Inc.
	
DG
GUARANTEE
	
2,433,937

	
Dollar General
Merchandising, Inc.
	
MY PAL
	
2,412,180

	
Dollar General
Merchandising, Inc.
	
MY PAL
	
2,355,987

	
Dollar General
Merchandising, Inc.
	
DG
	
2,385,253

	
Dollar General
Merchandising, Inc.
	
MY PAL BUILDING
BLOCKS FOR LITTLE WARDROBES AND DESIGN
	
2,546,014

	
Dollar General
Merchandising, Inc.
	
KITCHEN
ELEMENTS
	
2,589,304

	
Dollar General
Merchandising, Inc.
	
A BETTER LIFE
FOR EVERYONE!
	
2,564,327

	
Dollar General
Merchandising, Inc.
	
AMERICAN
VALUE
	
2,840,528

	
Dollar General
Merchandising, Inc.
	
GOT A MINUTE?
GET A LOT!
	
2,534,603

	
Dollar General
Merchandising, Inc.
	
POWERIZE
	
2,402,825

	
Dollar General
Merchandising, Inc.
	
DOLLAR GENERAL
EVERY DAY AND DESIGN
	
2,478,427

	
Dollar General
Merchandising, Inc.
	
DOLLAR $1 EVERY
DAY AND DESIGN
	
2,443,284

D-19

			
	
Debtor/Grantor
	
Title
	
Serial/ Registration No.

	
Dollar General
Merchandising, Inc.
	
STOW
AWAYS
	
2,418,285

	
Dollar General
Merchandising Inc.
	
COUNTRY
ELEMENTS
	
2,517,967

	
 
	
 
	
 

	
Dollar General
Merchandising, Inc.
	
EZSTORE
	
78/642,660

	
Dollar General
Merchandising, Inc.
	
SUNRISE
HILL
	
78/467,058

	
Dollar General
Merchandising, Inc.
	
DG
	
2,499,318

	
Dollar General
Merchandising, Inc.
	
PRO LINE
	
1,433,962

	
Dollar General
Merchandising, Inc.
	
DOLLAR GENERAL
EVERY DAY
	
2,478,358

	
Dollar General
Merchandising, Inc.
	
FAMILY
TRADITIONS
	
2,553,059

	
Dollar General
Merchandising, Inc.
	
FAMILY
TRADITIONS
	
2.488,144

	
Dollar General
Merchandising, Inc.
	
DG
GUARANTEE
	
2,702,790

	
Dollar General
Merchandising, Inc.
	
AMERICAN
VALUE
	
2,654,637

	
Dollar General
Merchandising, Inc.
	
PREMIER
INTERNATIONAL
	
2,400,609

	
Dollar General
Merchandising, Inc.
	
CROSSBOW
	
2,327,189

	
Dollar General
Merchandising, Inc.
	
CROSSBOW
	
2,388,304

	
 
	
 
	
 

	
Dollar General
Merchandising, Inc.
	
PREMIER
INTERNATIONAL
	
2,317,225

	
Dollar General
Merchandising, Inc.
	
OPEN TRAILS AND
DESIGN
	
2,258,138

	
Dollar General
Merchandising, Inc.
	
DG
	
2,130,040

	
Dollar General
Merchandising, Inc.
	
DOLLAR GENERAL
AND DESIGN
	
1,972,697

	
Dollar General
Merchandising, Inc.
	
PREMIER
INTERNATIONAL
	
1,705,134

	
Dollar General
Merchandising, Inc.
	
PENNY
LANE
	
1,726,693

	
Dollar General
Merchandising, Inc.
	
LAURA
KATHERINE
	
1,735,722

	
Dollar General
Merchandising, Inc.
	
THE TOWN’S MOST
UNUSUAL STORE
	
1,642,403

D-20

			
	
Debtor/Grantor
	
Title
	
Serial/ Registration No.

	
Dollar General
Merchandising, Inc.
	
EVERY DAY IS
DOLLAR DAY!...AT YOUR DOLLAR GENERAL STORE
	
1,651,816

	
Dollar General
Merchandising, Inc.
	
GENERAL
STORY
	
1,494,217

	
Dollar General
Merchandising, Inc.
	
S STORY 
	
1,493,097

	
Dollar General
Merchandising, Inc.
	
DOLLAR
GENERAL
	
0,881,060

	
Dollar General
Merchandising, Inc.
	
UNI-LAB 
	
1,952,315

	
Dollar General
Merchandising, Inc.
	
OPEN
TRAILS
	
1,752,567

	
Dollar General
Merchandising, Inc.
	
MY PAL
	
1,791,692

	
Dollar General
Merchandising, Inc.
	
OPEN
TRAILS
	
1,424,943

	
Dollar General
Merchandising, Inc.
	
DOLLAR GENERAL
OUR NAME SAYS IT ALL AND DESIGN
	
2,210,926

	
Dollar General
Merchandising, Inc.
	
CLOVER
VALLEY
	
2,498,548

	
Dollar General
Merchandising, Inc.
	
CLOVER
VALLEY
	
833,446

B.
Foreign

				
	
Debtor/Grantor
	
Title
	
Serial/ Registration No.
	
Country

	
 
	
DOLLAR GENERAL
	
1,241,198
	
Canada

	
 
	
DOLLAR GENERAL
	
3,846,573
	
European Union (CTM)

	
 
	
DOLLAR GENERAL
	
2004B01969
	
Hong Kong

	
 
	
DOLLAR GENERAL in Chinese Characters
	
300042443
	
Hong Kong

	
 
	
DOLLAR GENERAL
	
477,587
	
Mexico

	
 
	
DOLLAR GENERAL
	
892,930
	
Mexico

3.

Material
Unregistered Trademarks.

None.

4.

Registered
Patents and Patent Applications

None.

4.

Material
Exclusive Intellectual Property Licenses.

None.

D-21

Schedule II.C

Tangible Personal Property in Possession of Warehousemen and
Bailees

None.

D-22

Schedule II.D

Tangible Personal Property in Extended Article 9 Transition
States and Former Article 9 Jurisdictions

None.

D-23

EXHIBIT E

FORM
OF PLEDGE AGREEMENT 

See Execution Version filed as Exhibit 4.5 to the Company’s
Form 8-K dated July 6, 2007 filed with the SEC on July 12, 2007

E-1

EXHIBIT F

FORM
OF SECURITY AGREEMENT 

See Execution Version filed as Exhibit 4.4 to the Company’s
Form 8-K dated July 6, 2007 filed with the SEC on July 12, 2007

F-1

 EXHIBIT G 

RESERVED

G-1

EXHIBIT
H1 

FORM OF LEGAL OPINION OF SIMPSON THACHER & BARTLETT LLP

July 6, 2007

Citicorp
North America, Inc., as Administrative
Agent under the Credit Agreement, as
hereinafter
defined (the “Administrative Agent”)

and

 The
Lenders listed on Schedule I hereto

Re:

Credit
Agreement dated as of July 6, 2007 (the “Credit Agreement”), among Dollar
General Corporation, a Tennessee corporation (the “Company”), as
Borrower, Goldman Sachs Credit Partners L.P., as Syndication Agent, Lehman
Commercial Paper Inc. and Wachovia Bank, National Association, as Documentation
Agents, certain other lending institutions from time to time parties thereto and
the Administrative Agent.

Ladies
and Gentlemen:

We
have acted as counsel to the Company and the subsidiaries of the Company named
on Schedule II attached hereto (the “Schedule II Subsidiary Guarantors”)
and Schedule III attached hereto (the “Schedule III Subsidiary
Guarantors”; the Company, the Schedule II Subsidiary Guarantors and the
Schedule III Subsidiary Guarantors being referred to herein collectively as the
“Credit Parties”) in connection with the preparation, execution and
delivery of the following documents: 

(i)

the
Credit Agreement; 

(ii)

the
Guarantee; 

(iii)

the
Security Agreement; 

(iv)

the
Pledge Agreement;

(v)

the
mortgages listed on Schedule IV hereto (the “Mortgages”); 

(vi)

the
Trademark Security Agreement;

H1-1

2

(vii)

the
Copyright Security Agreement; and

(viii)

the
Intercreditor Agreement.

The
documents described in the foregoing clauses (i) through (viii) are collectively
referred to herein as the “Credit Documents.”  The documents
described in the foregoing clauses (iii) through (viii) are collectively
referred to herein as the “Security Documents.” Unless otherwise
indicated, capitalized terms used but not defined herein shall have the
respective meanings set forth in the Credit Agreement.  This opinion is
furnished to you pursuant to Section 6.3(a) of the Credit Agreement.

We
have examined the following:

(i)

the
Credit Agreement, signed by the Company and by the Administrative Agent and
certain of the Lenders;

(ii)

each
other Credit Document, signed by each Credit Party that is a party
thereto;

(iii)

unfiled
copies of the financing statements listed on Schedule V hereto (the
“Delaware Financing Statements”), naming the Credit Parties indicated on such
Schedule V as debtors and the Collateral Agent as secured party, which we
understand will be filed in the Office of the Secretary of State of the State of
Delaware (the “Delaware Filing Office”); and

(iv)

an unfiled copy of the financing statement listed on
Schedule VI hereto (the “California Financing Statement”), naming the
Credit Party indicated on such Schedule VI as debtor and the Collateral Agent as
secured party, which we understand will be filed in the Office of the Secretary
of State of the State of California (the “California Filing Office”).

In
addition, we have examined, and have relied as to matters of fact upon, the
documents delivered to you at the closing, and upon originals, or duplicates or
certified or conformed copies, of such corporate records, agreements, documents
and other instruments and such certificates or comparable documents of public
officials and of officers and representatives of the Credit Parties, and have
made such other investigations, as we have deemed relevant and necessary in
connection with the opinions hereinafter set forth.  In such examination,
we have assumed the genuineness of all signatures, the legal capacity of natural
persons, the authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us as duplicates
or certified or conformed copies and the authenticity of the originals of such
latter documents.  As to questions of fact material to this opinion, we
have relied upon certificates of public officials and of officers and
representatives of the Credit 

H1-2

3

Parties.
 In addition, we have relied as to certain matters of fact upon the
representations made in the Credit Documents.

In
addition, we have assumed that (1) the Credit Parties have rights in the
Collateral existing on the date hereof and will have rights in property which
becomes Collateral after the date hereof, (2) “value” (as defined in
Section 1-201(44) of the Uniform Commercial Code as in effect on the date hereof
in the State of New York (the “New York UCC”)) has been given by the
Secured Parties (as such term is defined in the Security Agreement) to the
Credit Parties for the security interests and other rights in the
Collateral and (3) to the extent our opinion in paragraph 13
relates to securities purportedly represented by a certificate and issued by an
issuer not organized under the law of one of the States of the United States,
such securities are “certificated securities” within the meaning of the New York
UCC § 8-102(4).

Based
upon and subject to the foregoing, and subject to the qualifications and
limitations set forth herein, we are of the opinion that:

1.

Each
of the Credit Parties (other than the Company and the Schedule III Subsidiary
Guarantors as to which we express no opinion) (a) is validly existing and in
good standing as a corporation, limited liability company or limited
partnership, as the case may be, under the law of the State of Delaware or the
State of California, as the case may be, (b) has the corporate power and
authority, limited liability company power and authority or partnership power
and authority, as the case may be, to execute and deliver each of the Credit
Documents to which it is a party, to perform its obligations thereunder and to
grant the security interests to be granted by it pursuant to the Security
Documents and (c) has duly authorized, executed and delivered each Credit
Document to which it is a party.

2.

Assuming
that each of the Company and the Schedule III Subsidiary Guarantors (a) is
validly existing and in good standing under the law of the jurisdiction in which
it is organized, (b) has the power and authority to execute and deliver each of
the Credit Documents to which it is a party, to perform its obligations
thereunder and to grant the security interests to be granted by it pursuant to
the Security Documents and (c) has duly authorized, executed and delivered each
Credit Document to which it is a party, each of the Company and the Schedule III
Subsidiary Guarantors has duly executed and delivered each Credit Document to
which it is a party insofar as the law of the State of New York is concerned.

3.

The
execution and delivery by any Credit Party (other than the Company and the
Schedule III Subsidiary Guarantors) of the Credit Documents to which it is a
party, performance of its payment obligations under such Credit Documents and
granting of the security interests to be granted by it pursuant to 

H1-3

4

the
Security Documents to which it is a party (a) will not result in any violation
of (1) the Certificate of Incorporation, Operating Agreement, By-Laws,
Limited Liability Company Agreement or Partnership Agreement, as applicable, of
such Credit Party or (2) assuming that proceeds of borrowings will be used in
accordance with the terms of the Credit Agreement, any Federal, New York or
California statute, the Delaware General Corporation Law or the Delaware Limited
Liability Company Act or any rule or regulation issued pursuant to any New York,
California or Federal statute, the Delaware General Corporation Law or the
Delaware Limited Liability Company Act or any order known to us issued by
any court or governmental agency or body and (b) will not breach or result in a
default under or result in the creation of any lien upon or security interest in
any Credit Party’s properties pursuant to the terms of any agreement or
instrument identified on Schedule VII hereto.

4.

The
execution and delivery by the Company and any of the Schedule III Subsidiary
Guarantors of the Credit Documents to which it is a party, performance of its
payment obligations thereunder and granting of the security interests to be
granted by it pursuant to the Security Documents, and the Company’s borrowings
in accordance with the terms of the Credit Documents, (a) will not result in,
assuming that proceeds of borrowings will be used in accordance with the terms
of the Credit Agreement, any violation of any Federal, New York or California
statute or any rule or regulation issued pursuant to any New York, California or
Federal statute or any order known to us issued by any New York, California or
Federal court or governmental agency or body and (b) will not breach or result
in a default under or result in the creation of any lien upon or security
interest in any Credit Party’s properties pursuant to the terms of any agreement
or instrument identified on Schedule VII attached hereto.

5.

No
consent, approval, authorization, order, filing, registration or qualification
of or with any Federal, New York or California governmental agency or body or
any Delaware governmental agency or body acting pursuant to the Delaware General
Corporation Law or the Delaware Limited Liability Company Act is required for
the execution and delivery by any Credit Party of the Credit Documents to which
it is a party, the borrowings by the Company in accordance with the terms of the
Credit Agreement, the performance by the Credit Parties of their respective
payment obligations under the Credit Documents or the granting of any
security interests under the Security Documents, except filings required for the
perfection of security interests granted pursuant to the Security
Documents.

6.

Assuming
that each of the Credit Documents is a valid and legally binding obligation of
each of the parties thereto other than the Credit Parties and assuming that (a)
each of the Company and the Schedule III Subsidiary Guarantors is validly
existing and in good standing under the law of the jurisdiction in which it is
organized and has duly authorized, executed and delivered the Credit Documents
to which it is a party in accordance with its organizational documents,
(b) execution, delivery and performance by each Credit Party of the Credit
Documents to which it is a party do not violate the law of the jurisdiction in
which it is organized or any other applicable laws (excepting the 

H1-4

5

law
of the State of New York, the law of the State of California, the Delaware
General Corporation Law, the Delaware Limited Liability Company Act and the
Federal laws of the United States) and (c) execution, delivery and
performance by each Credit Party of the Credit Documents to which it is a party
do not constitute a breach or violation of any agreement or instrument which is
binding upon any Credit Party (except that we do not make the assumption in this
clause (c) with respect to the agreements that are the subject of opinion
paragraphs 3(b) and 4(b) of this letter), each Credit Document (other than the
Mortgages) constitutes the valid and legally binding obligation of each Credit
Party which is a party thereto, enforceable against such Credit Party in
accordance with its terms. 

7.

To
our knowledge having made no independent investigation and other than as
identified in the Credit Agreement there is no action, suit or proceeding now
pending before or by any court, arbitrator or governmental agency, body or
official to which any Credit Party is a party or to which the business, assets
or property of any Credit Party is subject, and no such action, suit or
proceeding is threatened to which any Credit Party would be a party or to which
the business, assets or property of any Credit Party would be subject, that in
either case questions the validity of the Credit Documents.

8.

No
Credit Party is an “investment company” within the meaning of, and subject to
regulation under, the Investment Company Act of 1940, as amended. 

9.

Assuming
that the Company will comply with the provisions of the Credit Agreement
relating to the use of proceeds, the execution and delivery of the Credit
Agreement by the Company and the making of the Loans under the Credit Agreement
will not violate Regulation T, U or X of the Board of Governors of the
Federal Reserve System.

10.

The
Security Agreement creates in favor of the Collateral Agent for the benefit of
the Secured Parties (as such term is defined in the Security Agreement) a
security interest in the Collateral described therein in which a security
interest may be created under Article 9 of the New York UCC (collectively,
the “Security Agreement Article 9 Collateral”).

11.

The
Pledge Agreement creates in favor of the Collateral Agent for the benefit of the
Secured Parties a security interest under the New York UCC in the Collateral
described therein in which a security interest may be created under Article 9 of
the New York UCC (collectively, the “Pledge Agreement Article 9
Collateral” and together with the Security Agreement Article 9
Collateral, the “Article 9 Collateral”).

12.

Upon
the filing in the California Filing Office of the California Financing
Statement, the Collateral Agent will have a perfected security interest for the
benefit of the Secured Parties in that portion of the Article 9 Collateral in
which a security interest is perfected by filing a financing statement in the
California Filing Office.

H1-5

6

13.

The
Collateral Agent will have a perfected security interest in the investment
property (as defined in Section 9-102 of the New York UCC) identified on
Schedule 1 to the Pledge Agreement (the “Pledged Securities”) for the
benefit of the Secured Parties under the New York UCC upon delivery to the
Collateral Agent for the benefit of the Secured Parties in the State of New York
of the certificates representing the applicable Pledged Securities in registered
form, indorsed in blank by an effective indorsement or accompanied by undated
stock powers with respect thereto duly indorsed in blank by an effective
indorsement.  Assuming neither the Collateral Agent nor any of the Secured
Parties has notice of any adverse claim to the Pledged Securities, the
Collateral Agent will acquire the security interest in the Pledged Securities
for the benefit of the Secured Parties free of any adverse claim.

Although
we express no opinion as to the law of the State of Delaware (other than the
Delaware General Corporation Law and the Delaware Limited Liability Company
Act), we have reviewed Article 9 of the Uniform Commercial Code in effect in the
State of Delaware as set forth in the Commerce Clearing House, Inc. Secured
Transactions Guide as supplemented through June 27, 2007 (the “Delaware
UCC”) and, based solely on such review, we advise you that (a) the Delaware
Financing Statements are in appropriate form for filing in the Delaware Filing
Office and (b) upon the filing of the Delaware Financing Statements in the
Delaware Filing Office, the Collateral Agent will have a perfected security
interest for the benefit of the Secured Parties in that portion of the
Article 9 Collateral in which a security interest is perfected by filing a
financing statement in the Delaware Filing Office.

Our
opinions in paragraphs 6, 10 and 11 above are subject to (i) the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally,
(ii) general equitable principles (whether considered in a proceeding in
equity or at law), (iii) an implied covenant of good faith and fair dealing
and (iv) the effects of the possible judicial application of foreign laws
or foreign governmental or judicial action affecting creditors’ rights.
 Our opinion in paragraph 6 above also is subject to the qualification that
certain provisions of the Security Documents may not be enforceable in whole or
in part, although the inclusion of such provisions does not render the Security
Documents invalid, and the Security Documents and the law of the State of New
York contain adequate remedial provisions for the practical realization of the
rights and benefits afforded thereby.

Our
opinions in paragraphs 10 through 12, and our advice in the second preceding
paragraph above, are limited to Article 9 of the New York UCC, the Delaware UCC
or the Uniform Commercial Code in effect in the State of California (the
“California UCC”), as the 

H1-6

7

case
may be, and our opinion in paragraph 13 is limited to Articles 8 and 9 of
the New York UCC, and, therefore, those opinion and advice paragraphs do not
address (i) collateral of a type not subject to Article 9 or 8, as the case
may be, of the New York UCC, the Delaware UCC or the California UCC and (ii)
what law governs perfection of the security interests granted in the collateral
covered by this opinion letter.

Our
opinions in paragraphs 3 and 4 are limited with regard to any California
statute, law, rule or regulation to such statute, law, rule or regulation that
we know that in our experience is typically applicable to transactions of the
nature contemplated by the Credit Documents or generally applicable to companies
engaged in the same line of business as the relevant Credit Party.

We
note that (A) a New York statute provides that with respect to a foreign
currency obligation a court of the State of New York shall render a judgment or
decree in such foreign currency and such judgment or decree shall be converted
into currency of the United States at the rate of exchange prevailing on the
date of entry of such judgment or decree and (B) with respect to a foreign
currency obligation a United States Federal court in New York may award judgment
in United States dollars, provided that we express no opinion as to the rate of
exchange such court would apply.

We
express no opinion and render no advice with respect to:

(i)

perfection
of any security interest in (1) any collateral of a type represented by a
certificate of title and (2) any collateral consisting of money or cash
equivalents;

(ii)

the
effect of § 9-315(a)(2) of the applicable Uniform Commercial Code with
respect to any proceeds of Collateral that are not identifiable;

(iii)

perfection
of any security interest whose priority is subject to Section 9-334 of the
applicable Uniform Commercial Code;

(iv)

the
priority of any security interest;

(v)

the
effect of Section 552 of the Bankruptcy Code (11 U.S.C. 552) (relating
to property acquired by a pledgor after the commencement of a case under the
United States Bankruptcy Code with respect to such pledgor) and Section 506(c)
of the Bankruptcy Code (11 U.S.C. 506(c)) (relating to certain costs
and expenses of a trustee in preserving or disposing of collateral);

(vi)

the
effect of any provision of the Credit Documents which is intended to establish
any standard other than a standard set forth in the New York UCC as the measure
of the 

H1-7

8

performance
by any party thereto of such party’s obligations of good faith, diligence,
reasonableness or care or of the fulfillment of the duties imposed on any
secured party with respect to the maintenance, disposition or redemption of
collateral, accounting for surplus proceeds of collateral or accepting
collateral in discharge of liabilities;

(vii)

the
effect of any provision of the Credit Documents which is intended to permit
modification thereof only by means of an agreement in writing signed by the
parties thereto;

(viii)

the
effect of any provision of the Credit Documents insofar as it provides that any
Person purchasing a participation from a Lender or other Person may exercise
set-off or similar rights with respect to such participation or that any Lender
or other Person may exercise set-off or similar rights other than in accordance
with applicable law;

(ix)

the
effect of any provision of the Credit Documents imposing penalties or
forfeitures;

(x)

the
enforceability of any provision of any of the Credit Documents to the extent
that such provision constitutes a waiver of illegality as a defense to
performance of contract obligations; and

(xi)

the
effect of any provision of the Credit Documents relating to indemnification or
exculpation in connection with violations of any securities laws or relating to
indemnification, contribution or exculpation in connection with willful,
reckless or criminal acts or gross negligence of the indemnified or exculpated
Person or the Person receiving contribution.

With
respect to matters of Tennessee law, we understand that you are relying on the
opinion of Neal and Harwell, PLC dated the date hereof, and with respect to
matters of Kentucky law, we understand that you are relying on the opinion of
Frost Brown & Todd LLC dated the date hereof.

In
connection with the provisions of the Credit Documents whereby the parties
submit to the jurisdiction of the courts of the United States of America located
in the State of New York, we note the limitations of 28 U.S.C. §§ 1331
and 1332 on subject matter jurisdiction of the Federal courts.  In
connection with the provisions of the Credit Documents which relate to forum
selection (including, without limitation, any waiver of any objection to venue
or any objection that a court is an inconvenient forum), we note that under
NYCPLR § 510 a New York State court may have discretion to transfer
the place of trial, and under 28 U.S.C. § 1404(a) a United States
District Court has discretion to transfer an action from one Federal court to
another.

H1-8

9

We
do not express any opinion herein concerning any law other than the law of the
State of New York, the law of the State of California, the Federal law of the
United States, the Delaware General Corporation Law and the Delaware Limited
Liability Company Act.

This
opinion letter is rendered to you in connection with the above described
transactions.  This opinion letter may not be relied upon by you for any
other purpose, or relied upon by, or furnished to, any other person, firm or
corporation without our prior written consent; provided that this opinion
may be furnished to, but not relied upon by, (i) any person that purchases an
interest or a participation in the Loans and (ii) any auditor or regulatory
authority having jurisdiction over a Lender or otherwise pursuant to court order
or judicial process.  

Very
truly yours,

/s/
Simpson Thacher & Bartlett LLP

SIMPSON
THACHER & BARTLETT LLP

H1-9

Schedule I

The
Lenders

KKR Financial

Babson

Highland

Duquesne

GLG

Stone Tower

Farallon

ING Pilgrim

Oak Hill

Blue Mountain

Van Kampen

Lehman GPS

Citi GSSG

Angelo Gordon

Societe General
Strategic Credit

General Electric

Bank of America

Suntrust Bank

Northwestern
Mutual

Dune Capital

Franklin

Istar

Marathon

BofA Securities

Oaktree

Fore

Hatford

DA Capital

DB Prop

Western Asset
Management Co.

Post Advisory

Sandelman

PSAM

Staneifl CLO

Carlyle 

EOS

Fortress

SinoPac

Canyon

Airlie

Nomura

Kingsland

Mountain

Morgan Stanley
Investment Management

National City

Global Securities

Pangea

SVP

H1-10

Credit Suisse
Alternative Investments

KBC AIM

Advent

One East

American Money

Westgate Horizons

Par IV

Fraser Sullivan

Wellington

ABN Strategic
Credit

Nicholas
Applegate

AIG

Deutsche Bank Asset
Management

Ellington

Brigade

Bank of America

Cedarview

Greenwich Capital

Latigo

Credit Suisse
International

Deutsche Bank
Integrated Credit

Gordon Brothers

Lehman Prop

Orix

Amida

Madison Square
Capital

JP Morgan High
Yield

Rabo Funds

LBC Credit

Navigare

40/86

Collineo

Princeton
Advisory

Tall Tree

UBS O'Conor

WestLB/Brightwater

Teak Hill

Drake

UBS GCS

Camulos

Wells Fargo Prop

Forest

Linden

Brencourt

Morgan Stanley
SSG

Polygon

SAC 

The CIT
Group/Business Credit

Wachovia Capital
Markets, LLC

Citigroup Global
Markets

Goldman Sachs Credit
Partners L.P.

Lehman Commercial
Paper, Inc. 

H1-11

Schedule II

Schedule II Subsidiary Guarantors

		
	
Entity Name
	
Jurisdiction of Incorporation or
Organization

	
DGC
Properties LLC
	
Delaware

	
South
Boston Holdings, Inc.
	
Delaware

	
Sun-Dollar,
L.P.
	
California

	
South
Boston FF&E, LLC
	
Delaware

	
Dollar
General Investment, Inc.
	
Delaware

	
DGC
Properties of Kentucky LLC
	
Delaware

H1-12

Schedule III

Schedule III Subsidiary Guarantors

		
	
Entity Name
	
Jurisdiction of Incorporation or
Organization

	
DG
Retail, LLC
	
Tennessee

	
Dolgencorp,
Inc.
	
Kentucky

	
Dolgencorp
of New York, Inc.
	
Kentucky

	
Dolgencorp
of Texas, Inc.
	
Kentucky

	
DG
Transportation, Inc.
	
Tennessee

	
DG
Logistics, LLC
	
Tennessee

	
DG
Promotions, Inc.
	
Tennessee

	
Dollar
General Merchandising, Inc.
	
Tennessee

	
Dollar
General Partners
	
Kentucky

H1-13

Schedule IV

MORTGAGES

Mortgage, Security
Agreement, Assignment of Rents and Leases and Fixture Filing, by and from,
Dolgencorp, Inc. Mortgagor, to Citigroup North America, Inc., as Administrative
Agent and as Collateral Agent, Mortgagee, dated as of July 6, 2007, concerning
the property located at 17815 Peggy Road, Alachua, Florida

Mortgage, Security
Agreement, Assignment of Rents and Leases and Fixture Filing, by and from
Dolgencorp, Inc. Mortgagor to Citigroup North America, Inc., as Administrative
Agent and as Collateral Agent, Mortgagee, dated as of July 6, 2007, concerning
the property located at 427 Beech Street, Scottsville, Kentucky

Deed of Trust,
Security Agreement, Assignment of Rents and Leases and Fixture Filing by and
from Sun-Dollar, L.P., Grantor to Citigroup North America, Inc., as
Administrative Agent and as Collateral Agent, as Administrative Agent,
Beneficiary, dated as of July 6, 2007, concerning the property located at 3207
Philpot Road, South Boston, Virginia

Deed of Trust,
Security Agreement, Assignment of Rents and Leases and Fixture Filing by and
from Dollar General Corporation, Grantor and borrower to Citigroup North
America, Inc., as Administrative Agent and as Collateral Agent, as
Administrative Agent, Beneficiary, dated as of July 6, 2007, concerning the
property located at 100 Mission Ridge, Goodlettsville, Tennessee

Mortgage, Security
Agreement, Assignment of Rents and Leases and Fixture Filing, by and from
Dolgencorp, Inc. Mortgagor to Citigroup North America, Inc., as Administrative
Agent and as Collateral Agent, Mortgagee, dated as of  July 6, 2007,
concerning the property located at 5575 East Dollar General Way, Marion,
Indiana

Open End Mortgage,
Security Agreement, Assignment of Rents and Leases and Fixture Filing, by and
from DGC Properties LLC, Mortgagor to Citigroup North America, Inc., as
Administrative Agent and as Collateral Agent, Mortgagee, dated as of July 6,
2007, concerning the property located at 2505 East Pointe Drive, Zanesville,
Ohio

Mortgage, Security
Agreement, Assignment of Rents and Leases and Fixture Filing, by and from
Dolgencorp, Inc., Mortgagor to Citigroup North America, Inc., as Administrative
Agent and as Collateral Agent, Mortgagee, dated as of July 6, 2007, concerning
the property located at 1451 Spartanburg Highway, Jonesville, South Carolina

H1-14

Schedule V

DELAWARE FINANCING STATEMENTS

The
following financing statements on form UCC-1, naming the Person listed below as
debtor and the Collateral Agent as secured party for the benefit of the Secured
Parties, to be filed in the offices listed opposite the name of such party:

		
	
DEBTOR
	
FILING
OFFICE

	
DGC Properties LLC
	
Delaware SOS

	
South
Boston Holdings, Inc.
	
Delaware SOS

	
South
Boston FF&E, LLC
	
Delaware SOS

	
Dollar
General Investment, Inc.
	
Delaware SOS

	
DGC
Properties of Kentucky LLC
	
Delaware SOS

H1-15

Schedule VI

California Financing Statement

The
following financing statement on form UCC-1, naming the Person listed below as
debtor and the Collateral Agent as secured party for the benefit of the Secured
Parties, to be filed in the offices listed opposite the name of such party:

		
	
DEBTOR
	
FILING
OFFICE

	
Sun-Dollar,
L.P.
	
California SOS

H1-16

Schedule VII

Senior Indenture,
dated July 6, 2006, among Buck Acquisition Corp., Dollar General Corporation,
the guarantors named therein and Well Fargo Bank, N.A., as Trustee.

Senior Subordinated
Indenture, dated July 6, 2006, among Buck Acquisition Corp., Dollar General
Corporation, the guarantors named therein and Well Fargo Bank, N.A., as
Trustee.

Registration Rights
Agreement, dated July 6, 2006, among Buck Acquisition Corp., Dollar General
Corporation, the guarantors named therein and the initial purchasers named
therein.

Purchase Agreement,
dated June 28, 2006, among Buck Acquisition Corp. and the initial purchasers
named therein.

Joinder Agreement,
dated July 6, 2006, among Dollar General Corporation, Buck Acquisition Corp.,
the guarantors named therein and the initial purchasers named therein.

Indenture, as amended
or supplemented, dated as of June 21, 2000, among Dollar General Corporation,
the guarantors named therein and U.S. Bank National Association (successor to
Wachovia Bank, National Association, formerly known as First Union National
Bank).

Agreement and Plan of
Merger, dated as of March 11, 2007, by and among Buck Holdings, L.P., Buck
Acquisition Corp and Dollar General Corporation.

Registration Rights
Agreement, dated as of July 6, 2007, by and among Buck Holdings, L.P., Buck
Holdings, LLC and each of the parties thereto.

Management
Stockholders' Agreement, dated as of July 6, 2007, among Dollar General
Corporation, Buck Holdings, L.P. and the stockholders a party thereto.

Stock Option
Agreements, dated as of July 6, 2007, between Dollar General Corporation and
each of David Beré, David Tehle, Beryl Buley, Kathleen Guion, Susan Lanigan,
Challis Lowe, Wayne Gibson, Anita Elliot, Gayle Aertker, Bruce Ash, Lloyd Davis,
Tom Mitchell, Jeff Sims, Jim Thorpe, Rita Branham, Jeff Rice, Spencer Ferebee,
Lee Bandlow, Anthony Roden, Rick McNeely, Wade Smith, Bryan Wheeler, Keith
Reynolds, Dennis Zimmerman, John Cosma, Tom Drugan, Dan Richardson, Jeff Owen,
Lee Downing, Karen Sensabaugh, Michael Buxton, Bill Bass, Rod West, Tim
Money.

H1-17

EXHIBIT
H2

FORM OF LEGAL OPINION OF GENERAL COUNSEL

July
6, 2007

Citicorp
North America, Inc., as Administrative
Agent under the Credit Agreement, as
hereinafter
defined (the “Administrative Agent”)

and

 The
Lenders listed on Schedule I hereto

Re:

Credit
Agreement dated as of July 6, 2007 (the “Credit Agreement”), among Dollar
General Corporation, a Tennessee corporation (the “Company”), as
Borrower, Goldman Sachs Credit Partners L.P., as Syndication Agent, Lehman
Commercial Paper Inc. and Wachovia Bank, National Association, as Documentation
Agents, certain other lending institutions from time to time parties thereto and
the Administrative Agent.

Ladies
and Gentlemen:

I
am general counsel of the Company and the subsidiaries of the Company named on
Schedule II attached hereto (the “Subsidiary Guarantor”; the Company and
the Subsidiary Guarantors being referred to herein collectively as the
“Credit Parties”) in connection with the preparation, execution and
delivery of the following documents: 

(i)

the
Credit Agreement; 

(ii)

the
Guarantee; 

(iii)

the
Security Agreement; 

(iv)

the
Pledge Agreement;

(v)

the
mortgages listed on Schedule III hereto (the “Mortgates”);

(vi)

the
Trademark Security Agreement;

(vii)

the
Copyright Security Agreement; and

(viii)

the
Intercreditor Agreement.

H2-1

2

The
documents described in the foregoing clauses (i) through (viii) are collectively
referred to herein as the “Credit Documents.”  Unless otherwise
indicated, capitalized terms used but not defined herein shall have the
respective meanings set forth in the Credit Agreement.  This opinion is
furnished to you pursuant to Section 6.3(b) of the Credit Agreement.

In
connection with this opinion, I have examined the following:

(i)

the
Credit Agreement, signed by the Company and by the Administrative Agent and
certain of the Lenders; and

(ii)

each
other Credit Document, signed by each Credit Party that is a party thereto.

In
addition, I have examined the originals, or duplicates or certified or conformed
copies, of such corporate records, agreements, documents and other instruments
and such certificates or comparable documents of public officials and of
officers and representatives of the Credit Parties, and have made such other
investigations, as I have deemed relevant and necessary in connection with the
opinions hereinafter set forth.  As to questions of fact material to this
opinion, I have relied upon certificates of public officials and of officers and
representatives of the Credit Parties.  In addition, I have
examined, and have relied as to certain matters of fact upon the representations
made in the Credit Documents.

To
the extent it may be relevant to the opinions expressed herein, I have assumed
that the Credit Documents have been duly authorized, executed and delivered by,
and constitute legal, valid and binding obligations of, the parties thereto
other than the Credit Parties.

In
basing certain of the opinions expressed below on “my knowledge” the words “my
knowledge” or “have knowledge” signify that, in the course of my representation
of the Credit Parties as aforesaid, no information has come to my attention that
has given me actual knowledge that any such opinions are not accurate or that
any of the documents, certificates and information on which I have relied in
expressing any such opinions are not true and complete in all material respects.
The phrase “my knowledge” and “have knowledge” are each limited to my actual
knowledge.

Based
upon and subject to the foregoing, and subject to the qualifications and
limitations set forth herein, I am of the opinion that:

1.

The
execution and delivery by any Credit Party of the Credit Documents to which it
is a party, performance of its payment obligations under 

H2-2

3

such
Credit Documents and granting of the security interests to be granted by it
pursuant to the Security Documents, and the Company’s borrowings in accordance
with the terms of the Credit Documents will not breach or result in a default
under or result in the creation of any lien upon or security interest in any of
the property or assets of such Credit Party (other than Liens created under the
Credit Documents or Liens subject to the Intercreditor Agreement) pursuant to
the terms of any material indenture, loan agreement, lease agreement, mortgage,
deed of trust, agreement or other material instrument to which it or any of its
property or assets is bound, other than (x) any such breach, default, lien or
security interest that could not reasonably be expected to result in a Material
Adverse Effect or (y) as disclosed in Schedule 8.3 to the Credit Agreement.
 My opinion in this paragraph 1 is limited to those material indentures,
loan agreements, lease agreements, mortgages, deeds of trust, agreements and
other material instruments of which I have knowledge.

2.

To
my knowledge, other than as identified in Schedule 8.4 to the Credit Agreement
and the Credit Agreement, there is no action, suit or proceeding now pending
before or by any court, arbitrator or governmental agency, body or official to
which any Credit Party is a party or to which the business, assets or property
of any Credit Party is subject, and, to my knowledge, no action, suit or
proceeding is currently threatened to which any Credit Party would be a party or
to which the business, assets or property of any Credit Party would be subject,
that, in either case, could reasonably be expected to result in a Material
Adverse Effect.

I
express no opinion with respect to:

(i)

the
validity, binding effect or enforceability of any of the Credit Documents or any
provision thereof; and

(ii)

any
matter not specifically stated to be and numbered as an opinion herein.

I
am admitted in the State of Tennessee, and the foregoing opinions are limited to
the law of the State of Tennessee and the Federal law of the United States.
 I express no opinion as to any other laws or regulations.

This
opinion letter is rendered to you solely in connection with the above described
transactions and are as of the date hereof. This opinion letter may not be
relied upon by you for any other purpose, or relied upon by, or furnished to,
any other person, firm or corporation without my prior written consent. This
opinion may be furnished to, but not relied upon by, (i) any person that
purchases an interest or a participation in the Loans and (ii) any auditor or
regulatory authority having jurisdiction over a Lender or otherwise pursuant to
court order or judicial process.  I assume no obligation to update or
supplement the opinions expressed herein 

H2-3

4

to
reflect any facts or circumstances that may hereafter come to my attention or
any change in laws that may hereafter occur.

Very truly yours,

/s/ S. Lanigan

Susan
S. Lanigan

H2-4

Schedule I

The
Lenders

KKR Financial

Babson

Highland

Duquesne

GLG

Stone Tower

Farallon

ING Pilgrim

Oak Hill

Blue Mountain

Van Kampen

Lehman GPS

Citi GSSG

Angelo Gordon

Societe General Strategic Credit

General Electric

Bank of America

Suntmst Bank

Northwestern Mutual

Dune Capital

Franklin

Istar

Marathon

BofA Securities

Oaktree

Fore

Hatford

DA Capital

DB Prop

Western Asset Management Co.

Post Advisory

Sandelman

PSAM

Staneifl CLO

Carlyle

EOS

Fortress

SinoPac

Canyon

Airlie

Nomura

Kingsland

Mountain

Morgan Stanley Investment Management

National City

Global Securities

Pangea

SVP

H2-5

Credit Suisse Alternative Investments

KBC AIM

Advent

One East

American Money

Westgate Horizons

Par IV

Fraser Sullivan

Wellington

ABN Strategic Credit

Nicholas Applegate

AIG

Deutsche Bank Asset Management

Ellington

Brigade

Bank of America

Cedarview

Greenwich Capital

Latigo

Credit Suisse International

Deutsche Bank Integrated Credit

Gordon Brothers

Lehman Prop

Orix

Amida

Madison Square Capital

JP Morgan High Yield

Rabo Funds

LBC Credit

Navigate

40/86

Collineo

Princeton Advisory

Tall Tree

UBS O’Conor

WestLB/Brightwater

Teak Hill

Drake

UBS GCS

Camulos

Wells Fargo Prop

Forest

Linden

Brencourt

Morgan Stanley SSG

Polygon

SAC

The CIT Group/Business Credit

Wachovia Capital Markets, LLC

Citigroup Global Markets

Goldman Sachs Credit Partners L.P.

Lehman Commercial Paper,
Inc.

H2-6

Schedule II

Subsidiary Guarantors

DGC
Properties LLC

South
Boston Holdings, Inc.

Sun-Dollar,
L.P.

South
Boston FF&E, LLC

Dollar
General Investment, Inc.

DGC
Properties of Kentucky LLC

DG
Retail, LLC

Dolgencorp,
Inc.

Dolgencorp
of New York, Inc.

Dolgencorp
of Texas, Inc.

DG
Transportation, Inc.

DG
Logistics, LLC

DG
Promotions, Inc.

Dollar
General Merchandising, Inc.

Dollar
General Partners

H2-7

Schedule III

Mortgages

[TO
COME]

H2-8

  

EXHIBIT I

FORM OF CREDIT PARTY CLOSING CERTIFICATE

July 6,
2007

Reference is made to the Credit Agreement, dated as of July 6,
2007 (as amended, restated, supplemented or otherwise modified, refinanced or
replaced from time to time, the “Credit Agreement”), among Dollar General
Corporation, a Tennessee corporation (the “Borrower”), the lending
institutions from time to time party thereto (each, a “Lender” and,
collectively the “Lenders”), Citicorp North America, Inc., as
Administrative Agent and Collateral Agent, Goldman Sachs Credit Partners L.P.,
as Syndication Agent, Lehman Commercial Paper Inc. and Wachovia Bank, National
Association, as Documentation Agents, and Goldman Sachs Credit Partners L.P.,
Citigroup Global Markets Inc., Lehman Brothers Inc. and Wachovia Capital
Markets, LLC, as Joint Lead Arrangers and Bookrunners. Terms used but not
defined herein shall have the meanings given to such terms in the Credit
Agreement.

1.

The undersigned [

], Executive Vice-President and Chief Financial Officer of each of
the entities listed on Annex I hereto and President of each of the entities
listed on Annex II hereto (each entity, a “Certifying Credit Party”),
solely in his capacity as Executive Vice-President and Chief Financial Officer
or President, as the case may be, of the Certifying Credit Party and not
individually, hereby certifies as follows:

(a)

The representations and warranties made by each Certifying Credit
Party in each of the Credit Documents, in each case as they relate to such
Certifying Credit Party on the date hereof, are true and correct in all material
respects on and as of the date hereof; and

(b)

[

] is the duly elected and qualified Assistant Secretary of each
Certifying Credit Party and the signature set forth on the signature line for
such officer below is such officer’s true and genuine signature, and such
officer is duly authorized to execute and deliver on behalf of each Certifying
Credit Party each Credit Document to which it is a party and any certificate or
other document to be delivered by such Certifying Credit Party pursuant to the
Credit Documents; and

2.

The undersigned Assistant Secretary of each Certifying Credit
Party, solely in his capacity as Assistant Secretary of the Certifying Credit
Party and not individually, hereby certifies as follows:

(a)

There are no liquidation or dissolution proceedings pending or to
my knowledge threatened against any Certifying Credit Party, nor to my knowledge
has any other event occurred affecting or threatening the corporate existence of
any Certifying Credit Party;

(b)

Each Certifying Credit Party is a corporation, limited liability
company or general or limited partnership, as applicable, duly organized or
incorporated, as the case may be, validly existing and in good standing under
the laws of the state of its incorporation, formation or the equivalent, as
applicable;

(c)

Attached hereto as Exhibit A is a complete and correct copy
of the resolutions duly adopted by the Board of Directors, Sole Member, Managing
Member, Manager, 

I-1

general partner or equivalent body, as applicable, (or a duly
authorized committee thereof) of each Certifying Credit Party on July 6, 2007
authorizing the execution, delivery and performance of the Credit Documents (and
any agreements relating thereto) to which it is a party; such resolutions have
not in any way been amended, modified, revoked or rescinded and have been in
full force and effect since their adoption to and including the date hereof and
are now in full force and effect; and such resolutions are the only corporate
proceedings of any Certifying Credit Party now in force relating to or affecting
the matters referred to therein;

(d)

Attached hereto as Exhibit B is a true and complete copy of
the charter, articles of incorporation, certificate of incorporation,
certificate of formation or equivalent document, as applicable, of each
Certifying Credit Party certified by the Secretary of the state of its
incorporation, formation or the equivalent, as applicable, as of a recent date,
as in effect at all times since the date shown on the attached
certificate;

(e)

Attached hereto as Exhibit C is a true and complete copy of
the by-laws, operating agreement, limited liability company agreement,
partnership agreement or equivalent document, as applicable, of each Certifying
Credit Party as in effect at all times since the adoption thereof to and
including the date hereof; and

(f)

The following persons are now duly elected and qualified officers
of each Certifying Credit Party holding the offices indicated next to their
respective names below, and the signatures appearing opposite their respective
names below are the true and genuine signatures of such officers, and each of
such officers is duly authorized to execute and deliver on behalf of each
Certifying Credit Party each Credit Document to which it is a party and any
certificate or other document to be delivered by such Certifying Credit Party
pursuant to such Credit Documents:

I-2

  

			
	
Name
	
Office
	
Signature

	
 
	
 
	
 

	

[

]
	

Executive
Vice-President and Chief Financial Officer of the entities listed on Annex
I hereto;

President of
the entities listed on Annex II hereto
	
 

	

[

]
	

Senior Vice
President and Controller of the entities listed on Annex I hereto;

Vice President
and Controller of the entities listed on Annex II hereto
	
 

	

[

]
	

Treasurer
	
 

	

[

]
	

Assistant
Secretary
	
 

DOLLAR
GENERAL SUBSIDIARIES

Term Incumbency Certificate

I-3

  

IN WITNESS WHEREOF, the undersigned have hereto set our names as
of the date set forth above.

						
	 
	
 
	 

	
Name: 
	
[
                                   ]
	
 
	
Name:
	
[
                                        ]

	
Title:
	
Executive
Vice-President and 
	
 
	
Title:
	
Assistant
Secretary

	
 
	
Chief Financial
Officer of the 
	
 
	
 

	
 
	
entities listed
on Annex I hereto; 
	
 
	
 

	
 
	
President of
the entities listed on Annex II hereto

DOLLAR
GENERAL SUBSIDIARIES

ABL Closing Certificate

I-4

  

ANNEX
I

TO
CLOSING CERTIFICATE 

CERTIFYING CREDIT PARTIES

[                ]  

DOLLAR
GENERAL SUBSIDIARIES

Term Closing Certificate

I-5

ANNEX
II

TO
CLOSING CERTIFICATE 

CERTIFYING CREDIT PARTIES

[
             
 ]

DOLLAR
GENERAL SUBSIDIARIES

Term Closing Certificate

I-6

EXHIBIT J

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

This Assignment and Acceptance Agreement (the “Assignment”)
is dated as of the Effective Date set forth below and is entered into by and
between [Insert name of Assignor] (the “Assignor”) and [Insert
name of Assignee] (the “Assignee”).  Capitalized terms used but
not defined herein shall have the meanings given to them in the Credit Agreement
identified below (as it may be amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee.  The Standard Terms and Conditions set
forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells
and assigns to the Assignee, and the Assignee hereby irrevocably purchases and
accepts from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below, the interest in and to all of
the Assignor’s rights and obligations under the Credit Agreement and any other
documents or instruments delivered pursuant thereto that represents the amount
and percentage interest identified below of all of the Assignor’s outstanding
rights and obligations under the respective facilities identified below
(including, to the extent included in any such facilities, letters or credit)
(the “Assigned Interest”).  Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and the Credit Agreement, without representation or warranty by the
Assignor.

				
	
1.
	
Assignor:
	
 
	
_____________________

	
2.
	
Assignee:
	
 
	
_____________________
[and is an Affiliate/Approved Fund1]

	
3.
	
Borrower:
	
 
	
Dollar
General Corporation

	
4.
	
Administrative
Agent:
	
 
	
Citicorp
North America, Inc., as Administrative Agent under the Credit Agreement
(as defined below).

	
5.
	
Credit
Agreement:
	
 
	
The $2,300,000,000 Credit Agreement dated as of July 6, 2007
(as amended, replaced, amended and restated, supplemented or otherwise
modified from time to time, the “Credit
Agreement”), among
DOLLAR GENERAL CORPORATION,
a Tennessee corporation (the
“Borrower”), the Lenders party thereto from time to time (such term
and each other capitalized term used but not defined herein having the
meaning given to it
in Section 1 of the Credit Agreement),
GOLDMAN SACHS CREDIT PARTNERS L.P., as Syndication Agent, CITICORP NORTH
AMERICA, INC., as Administrative Agent and Collateral Agent, GOLDMAN SACHS
CREDIT PARTNERS L.P., CITIGROUP GLOBAL MARKETS INC., LEHMAN 

1
Select 

 

1Select as applicable

J-1

 

				

				
	
 
	
 
	
 
	
BROTHERS INC. and WACHOVIA CAPITAL MARKETS, LLC, as Joint
Lead Arrangers and Bookrunners, and LEHMAN COMMERCIAL PAPER INC. and
WACHOVIA BANK, NATIONAL ASSOCIATION, as Documentation
Agents.

6.

Assigned Interest:

				
	

Facility Assigned
	

Aggregate Amount of

Commitment/Loans

for all Lenders
	

Amount of Commitment/Loans

Assigned
	
 

Percentage Assigned of
Commitment/Loans2

 

	

Tranche B-1 Term Loans
	

$______________
	

$______________
	

____________%

	

Tranche B-2 Term Loans
	

$______________
	

$______________
	

____________%

Effective Date: ______________, 20__ [TO BE INSERTED BY
ADMINISTRATIVE  AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION
OF TRANSFER IN THE REGISTER THEREFOR.]

7.

  Notice and Wire Instructions:

								
	
 
	
[NAME OF ASSIGNOR]
	
 
	
[NAME OF ASSIGNEE]

	
 
	
Notices:
	
 
	
 
	
Notices:
	
 

	
 
	
 
	 
	
 
	
 
	 

	
 
	
 
	 
	
 
	
 
	 

	
 
	
 
	 
	
 
	
 
	 

	
 
	
 
	
Attention:
	
 
	
 
	
Attention:

	
 
	
 
	
Telecopier:
	
 
	
 
	
Telecopier:

	
 
	
with a copy to:
	
 
	
 
	
with a copy to:
	
 

	
 
	
 
	 
	
 
	
 
	 

	
 
	
 
	 
	
 
	
 
	 

	
 
	
 
	 
	
 
	
 
	 

	
 
	
 
	
Attention:
	
 
	
 
	
Attention:

	
 
	
 
	
Telecopier:
	
 
	
 
	
Telecopier:

	
 
	
Wire Instructions:
	
 
	
 
	
Wire Instructions:
	
 

The
terms set forth in this Assignment are hereby agreed to:

2 Set forth, to
at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders
thereunder. 

J-2

		
	
 
	

ASSIGNOR

[NAME
OF ASSIGNOR]

By:_______________________

Title:

ASSIGNEE

[NAME
OF ASSIGNEE]

By:_______________________

Title:

Consented to and Accepted:

CITICORP NORTH AMERICA, INC.

 as Administrative Agent

By:_______________________

Title:

[Consented to:]3

DOLLAR
GENERAL CORPORATION

By:_______________________

Title:

3 To
be executed by Borrower to the extent consent is required under Section
13.6(b) of the Credit Agreement.

J-3

ANNEX
1

STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT
AND ACCEPTANCE
AGREEMENT

1.

Representations and Warranties.

1.1

Assignor.
 The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free
and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and to consummate the transactions contemplated hereby; and (b)
assumes no responsibility with respect to (i) any statements, warranties or
representations made in or in connection with any Credit Document, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Credit Agreement or any other  instrument or document delivered
pursuant thereto, other than this Assignment (herein collectively the “Credit
Documents”), or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Credit Document or (iv) the performance or
observance by the Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Credit Document.

1.2

Assignee.
 The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and to consummate the transactions contemplated hereby and to become
a Lender under the Credit Agreement, (ii) from and after the Effective Date, it
shall be bound by the provisions of the Credit Agreement and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iii)
it has received a copy of the Credit Agreement and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision, and (iv) if it is a
Non-U.S. Lender, attached to the Assignment is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed
and executed by the Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at that
time, continue to make its own credit decisions in taking or not taking action
under the Credit Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Documents are
required to be performed by it as a Lender.

2.

Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned Interest
(including payments of principal, interest, fees and other amounts) to the
Assignor for amounts which have accrued to but excluding the Effective Date and
to the Assignee for amounts which have accrued from and after the Effective
Date.

J-4

3.

General Provisions.  This Assignment shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns.  This Assignment may be executed in any number of
counterparts, which together shall constitute one instrument.  Delivery of
an executed counterpart of a signature page of this Assignment by telecopy shall
be effective as delivery of a manually executed counterpart of this Assignment.
 This Assignment shall be governed by, and construed in accordance with,
the internal laws of the State of New York without regard to conflict of laws
principles thereof. 

J-5

EXHIBIT K

FORM
OF PROMISSORY NOTE 

New
York

$                    
  [__________], 20[__]

FOR
VALUE RECEIVED, the undersigned, DOLLAR GENERAL CORPORATION, a Tennessee
corporation (the “Borrower”), hereby unconditionally promises to pay to
the order of [Lender] or its registered assigns (the “Lender”), at the
Administrative Agent’s Office or such other place as CITICORP NORTH AMERICA,
INC. (the “Administrative Agent”) shall have specified, in Dollars
and in immediately available funds, in accordance with Section 5.3 of the
Credit Agreement (as defined below; capitalized terms used and not otherwise
defined herein shall have the meanings assigned to such terms in the Credit
Agreement) on the [Tranche B Term Loan Maturity Date for the Tranche B Term
Loans] [New Term Loan Maturity Date for the Series [__] New Term Loans], the
principal amount of [______] US Dollars ($[___]) or, if less, the aggregate
unpaid principal amount of all [Tranche B-1] [Tranche B-2] Term Loans [Series
[__] New Term Loans], if any, made by the Lender to the Borrower pursuant to the
Credit Agreement.  The Borrower further unconditionally promises to pay
interest in like money at such office on the unpaid principal amount hereof from
time to time outstanding at the rates per annum and on the dates specified in
Section 2.8 of the Credit Agreement and in the applicable Joinder
Agreement.

This
Promissory Note is one of the promissory notes referred to in Section
13.6 of the Credit Agreement, dated as of July 6, 2007 (as amended,
replaced, amended and restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among DOLLAR GENERAL CORPORATION, a
Tennessee corporation (the “Borrower”), the Lenders party thereto from
time to time (such term and each other capitalized term used but not defined
herein having the meaning given to it in Section 1 of the Credit
Agreement), GOLDMAN SACHS CREDIT PARTNERS L.P., as Syndication Agent, CITICORP
NORTH AMERICA, INC., as Administrative Agent and Collateral Agent, GOLDMAN SACHS
CREDIT PARTNERS L.P., CITIGROUP GLOBAL MARKETS INC., LEHMAN BROTHERS INC. and
WACHOVIA CAPITAL MARKETS, LLC, as Joint Lead Arrangers and Bookrunners, and
LEHMAN COMMERCIAL PAPER INC. and WACHOVIA BANK, NATIONAL ASSOCIATION, as
Documentation Agents.  This Promissory Note is subject to, and the Lender
is entitled to the benefits of, the provisions of the Credit Agreement, and the
[Tranche B-1] [Tranche B-2] Term Loans [Series [__] New Term Loans] evidenced
hereby are guaranteed and secured as provided therein and in the other Credit
Documents.  The [Tranche B-1] [Tranche B-2] Term Loans [Series [__] New
Term Loans] evidenced hereby are subject to prepayment prior to the [Tranche B
Term Loan Maturity Date for Tranche B Term Loans] [New Term Loan Maturity Date
for Series [__] New Term Loans], in whole or in part, as provided in the Credit
Agreement.

All
parties now and hereafter liable with respect to this Promissory Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
diligence, presentment, demand, protest and notice of any kind whatsoever in
connection with this Promissory Note.  No failure to exercise and no delay
in exercising, on the part of the Administrative Agent or the Lender, any right,
remedy, power or privilege hereunder or under the Credit Documents shall operate
as a waiver thereof, nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder or thereunder preclude any other or 

K-1

further
exercise thereof or the exercise of any other right, remedy, power or privilege.
 A waiver by the Administrative Agent or the Lender of any right, remedy,
power or privilege hereunder or under any Credit Document on any one occasion
shall not be construed as a bar to any right or remedy that the Administrative
Agent or the Lender would otherwise have on any future occasion.  The
rights, remedies, powers and privileges herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any rights, remedies,
powers and privileges provided by law.

All
payments in respect of the principal of and interest on this Promissory Note
shall be made to the Person recorded in the Register as the holder of this
Promissory Note, as described more fully in Section 2.5 of the
Credit Agreement, and such Person shall be treated as the Lender hereunder for
all purposes of the Credit Agreement.

THIS
PROMISSORY NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

				
	
 
	
DOLLAR GENERAL
CORPORATION

	
 
	
 
	
 

	
 
	
By:
	 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

K-2

EXHIBIT L

JOINDER AGREEMENT

THIS JOINDER AGREEMENT, dated as of 

      ,
      (this “Agreement”), by and
among [NEW LENDERS] (each a “Lender” and collectively the
“Lenders”), DOLLAR GENERAL CORPORATION, a Tennessee corporation (the
“Borrower”), the Lenders party thereto from time to time, GOLDMAN SACHS
CREDIT PARTNERS L.P., as Syndication Agent, CITICORP NORTH AMERICA, INC., as
Administrative Agent and Collateral Agent, CITIGROUP GLOBAL MARKETS INC., LEHMAN
BROTHERS INC. and WACHOVIA CAPITAL MARKETS, LLC, as Joint Lead Arrangers and
Bookrunners, and LEHMAN COMMERCIAL PAPER INC. and WACHOVIA BANK, NATIONAL
ASSOCIATION, as Documentation Agents.

RECITALS:

WHEREAS, reference is hereby made to the Credit Agreement,
dated as of July 6, 2007, (as it may be amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement’’; the
terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among DOLLAR GENERAL CORPORATION, a Tennessee
corporation (the “Borrower”), the Lenders party thereto from time to
time, GOLDMAN SACHS CREDIT PARTNERS L.P., as Syndication Agent, CITICORP NORTH
AMERICA, INC., as Administrative Agent and Collateral Agent, GOLDMAN SACHS
CREDIT PARTNERS L.P., CITIGROUP GLOBAL MARKETS INC. and LEHMAN BROTHERS INC., as
Joint Lead Arrangers and Bookrunners, and LEHMAN COMMERCIAL PAPER INC. and
WACHOVIA BANK, NATIONAL ASSOCIATION, as Documentation Agents.

WHEREAS, subject to the terms and conditions of the Credit
Agreement, the Borrower may provide New Term Loan Commitments by entering into
one or more Joinder Agreements with the New Term Loan Lenders, as
applicable.

NOW, THEREFORE, in consideration of the premises and
agreements, provisions and covenants herein contained, the parties hereto agree
as follows:

Each Lender party hereto hereby agrees to commit to provide its
respective Commitment as set forth on Schedule A annexed hereto, on the terms
and subject to the conditions set forth below:

Each Lender (i) confirms that it has received a copy of the Credit
Agreement and the other Credit Documents, together with copies of the financial
statements referred to therein and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter
into this Joinder Agreement (this “Agreement”); (ii) agrees that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or Agent and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Agreement; (iii) appoints and authorizes the
Administrative Agent and the Syndication Agent to take such action as agent on
its behalf and to exercise such powers under the Credit Agreement and the other
Credit Documents as are delegated to the Administrative Agent and the
Syndication Agent, as the case may be, by the terms thereof, together with such
powers as are reasonably 

L-1

incidental thereto; and (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Lender.

Each Lender hereby agrees to make its Commitment on the following
terms and conditions:

1.

Applicable Margin.  The Applicable Margin for each
Series [__] New Term Loan shall mean, as of any date of determination, [___]%
per annum 

2.

Principal Payments.  Borrower shall make principal
payments on the Series [__] New Term Loans in installments on the dates and in
the amounts set forth below:

		
	

(A)

Payment

Date
	

(B)

Scheduled

Repayment of

Series [__] New Term Loans

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

	

$__________

	

TOTAL
	

$__________

L-2

3.

Voluntary and Mandatory Prepayments.  Scheduled
installments of principal of the [Series [__]] New Term Loans set forth above
shall be reduced in connection with any voluntary or mandatory prepayments of
the [Series [__]] New Term Loans in accordance with Sections 5.1 and 5.2 of the
Credit Agreement respectively.  

4.

Prepayment Fees.  Borrower agrees to pay to each [New
Term Loan Lender] the following prepayment fees, if any: [__________].

5.

Other Fees.  Borrower agrees to pay each New Term Loan
Lender its Pro Rata Share of an aggregate fee equal to [________ __, ____] on
[_________ __, ____]. 

6.

Proposed Borrowing.  This Agreement represents
Borrower’s request to borrow [Series [__] New Term Loans] from New Term Loan
Lender as follows (the “Proposed Borrowing”):

a.

Business Day of Proposed Borrowing:  ___________,
____

b.

Amount of Proposed Borrowing:
 $___________________

c.

Interest rate option:

 ̈

a.  ABR rate Loan(s)

 ̈

b.  Eurodollar Rate Loans

     with an initial Interest

     Period of ____ month(s)

7.

[New Lenders.  Each New Term Loan Lender acknowledges
and agrees that upon its execution of this Agreement and the making of New Term
Loans Series ___ New Term Loans that such New Term Loan Lender shall become a
“Lender” under, and for all purposes of, the Credit Agreement and the other
Credit Documents, and shall be subject to and bound by the terms thereof, and
shall perform all the obligations of and shall have all rights of a Lender
thereunder.]1

8.

Credit Agreement Governs.  Except as set forth in this
Agreement, Series [__] New Term Loans shall otherwise be subject to the
provisions of the Credit Agreement and the other Credit Documents.

9.

Borrower’s Certifications.  By its execution of this
Agreement, the undersigned officer, to the best of his or her knowledge, and
Borrower hereby certify that:

i.

The representations and warranties contained in the Credit
Agreement and the other Credit Documents are true and correct in all material
respects on and as of the date hereof to the same extent as though made on and
as of the date hereof, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties were true and correct in all material respects on and as of such
earlier date;

1
Insert bracketed language if the lending institution is not already a
Lender.

L-3

ii.

No event has occurred and is continuing or would result from the
consummation of the Proposed Borrowing contemplated hereby that would constitute
a Default or an Event of Default; and

iii.

Borrower has performed in all material respects all agreements and
satisfied all conditions which the Credit Agreement provides shall be performed
or satisfied by it on or before the date hereof.

10.

Borrower Covenants.  By its execution of this
Agreement, Borrower hereby covenants that it shall deliver or cause to be
delivered the following legal opinions and documents: the legal opinion of
      , together with all other legal
opinions and other documents reasonably requested by Administrative Agent in
connection with this Agreement.

11.

Notice.  For purposes of the Credit Agreement, the
initial notice address of each New Term Loan Lender shall be as set forth below
its signature below.

12.

Tax Forms.  For each New Term Loan Lender, delivered
herewith to Administrative Agent are such forms, certificates or other evidence
with respect to United States federal income tax withholding matters as such New
Term Loan Lender may be required to deliver to Administrative Agent pursuant to
Section 5.4 of the Credit Agreement.

13.

Recordation of the New Loans.  Upon execution and
delivery hereof, Administrative Agent will record the Series [__] New Term Loans
made by New Term Loan Lenders in the Register.

14.

Amendment, Modification and Waiver.  This Agreement
may not be amended, modified or waived except by an instrument or instruments in
writing signed and delivered on behalf of each of the parties hereto.

15.

Entire Agreement.  This Agreement, the Credit
Agreement and  the other Credit Documents constitute the entire agreement
among the parties with respect to the subject matter hereof and thereof and
supersede all other prior agreements and understandings, both written and
verbal, among the parties or any of them with respect to the subject matter
hereof.

16.

GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

17.

Severability.  Any term or provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction.
 If any provision of this Agreement is so broad as to be unenforceable, the
provision shall be interpreted to be only so broad as would be enforceable.

18.

Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement.

L-4

SCHEDULE A

TO
JOINDER AGREEMENT

			
	

Name of Lender
	

Type of Commitment
	

Amount

	

[___________________]
	

New Term Loan
Commitment
	

$________________

	

	

	

	

	

	

Total:
$_________________

SCHEDULE A-1

 

L-5exhibit10_1.htm

    
      

    

     

     

    
      EXECUTIVE
EMPLOYMENT AGREEMENT

      

      Employment
Agreement, dated as of April 20, 2009 (this
“Agreement”), by and between KEITH G. LARSEN (the “Executive”), and U.S. ENERGY
CORP., a Wyoming corporation (the “Company” or “USE”).

      

      R
E C I T A L S:

      

      The
Company deems it desirable and prudent to enter into an employment agreement
with the Executive in order to assure itself of the ongoing services of the
Executive in the future, which services are deemed to be integral to the success
of the Company.  The Executive desires to be employed by the Company,
upon the terms and provisions, and subject to the conditions, set forth in this
Agreement;

      

      The
Company and the Executive previously entered into an “Executive Severance and
Non-Compete Agreement”, a copy of which is attached hereto as Schedule B,
providing for the payment of certain amounts to the Executive (i) upon a
termination of his employment within a 3 year period following a change in
control of the Company, except in the case of a termination by the Company for
cause, or by the Executive without good reason (each as defined therein), and
(ii) as consideration for the promise of the Executive not to compete with the
Company.

      

      The
Company has previously adopted an Executive Officer Retirement Plan, a copy of
which is attached hereto as Schedule C, which provides for the payment of
certain retirement benefits to the Executive upon his continued employment with
the Company until he reaches the  age 60 and serves for a minimum of
15 years  as CEO, Chairman or President.

      

      It is
intended by the parties that this Executive Employment Agreement shall
supplement, and shall not supersede, such Executive Severance and Non-Compete
Agreement and Executive Officer Retirement Plan, and the terms of this Executive
Employment Agreement shall be interpreted
accordingly.  Notwithstanding anything contained herein, in the event
that any provision of this Employment Agreement directly conflicts with the
terms of the Executive Severance and Non-Compete Agreement, the terms of the
Executive Severance and Non-Compete Agreement shall apply.

      

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements of the
parties contained herein, and other good and valuable consideration, the receipt
and legal sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

      

      1.           Employment;
Term

      

      The
Company shall employ the Executive, and the Executive shall accept employment by
the Company, upon the terms and provisions, and subject to the conditions, of
this Agreement. The term of the Executive’s employment hereunder shall commence
on and as of the date hereof (the “Employment Date”) and terminate on the third
(3rd) anniversary of the Employment Date.  However, this Agreement
shall automatically renew on the same terms and conditions for succeeding three
(3) year

       

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
 

      periods
if the Executive is still employed as CEO, Chairman, unless (i) either the
Executive or the Company provides written notice to the other at least ninety
(90) days prior to the expiration of this Agreement of the intention not to
renew this Agreement, or (ii) the Agreement has been amended by mutual agreement
of the parties (the “Employment Term”).

      

      2.           Position and
Duties

      

      The
Company shall employ the Executive as its Chief Executive Officer. The
Executive shall be subject to the ultimate authority of the Board of Directors
of the Company. The Executive shall have the duties set forth in the Position
Description, attached hereto and incorporated herein by reference as Schedule D,
and such additional responsibilities or duties with respect to the Company and
its subsidiaries, and their respective operations, as may be determined and
assigned to the Executive by the Board of Directors of the Company.

      

      The
Executive owes absolute loyalty to the Company on all business opportunities he
may become aware of.  During the Employment Term, the Executive shall
not, without the advance written consent of the Board, provide services to or be
employed by any other person, firm, or business, regardless of its form of
organization, it being the intent of the parties that the Executive shall devote
all of his working time, attention and energy to the business and affairs of the
Company.

      

      The Executive agrees to vote all shares
of the Company’s stock he owns in the affirmative of all proposals put forth by
the Board of Directors to the shareholders of the Company during the Term of
this Agreement.

      

      3.           Base
Salary

      

      During
the Employment Term, the Compensation Committee shall review
the  Executive’s base salary on an annual basis and make any
recommended changes to the full board of directors. The initial Base Salary
and any subsequent changes shall be reflected on a Schedule attached to and
incorporated herein by reference.  The Base Salary shall be payable in
accordance with the normal payroll practices of the Company; provided, however, that such
payments shall be subject to withholding for applicable taxes and any other
amounts generally withheld from compensation paid to salaried senior executives
of the Company.

      

      In
addition to the Base Salary, the Executive will continue to be eligible to
participate in the following established Programs and Plans in accordance with
their terms as they have been or may be amended from time to time,:

      

      
        	
                1.  

              	
                The
      June 1, 1989 U.S. Energy Corp. Employee Stock Ownership Plan
      (“ESOP”)

              

      

      

      
        	
                2.  

              	
                The
      November 15, 2001 U.S. Energy Corp. Incentive Stock Option Plan
      (“ISOP”).

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                3.  

              	
                The
      December 7, 2001 U.S. Energy Corp. Stock Compensation Plan, (“Stock
      Compensation Plan”).

              

      

      

      
        	
                4.  

              	
                Annual
      Christmas Bonuses as granted by the Executive Committee of the
      Company.  Any Christmas Bonus paid to the Executive will be
      calculated on the same basis as all Company
  employees.

              

      

      

      
        	
                5.  

              	
                Any
      additional compensation plans adopted by the Board of Directors and or the
      Company’s shareholders for the benefit of all the Company’s
      employees.

              

      

      

      4.  Performance
Compensation Plan

      

      Following
the end of each fiscal year of the Company during the Employment Term, the
Executive may be eligible to receive a fiscal year end bonus in an amount not
exceeding 100% of the Executive’s Base Salary (the “Performance
Bonus”).  Criteria for determining the bonus amount will be linked to
the achievement of the annual operating plan and budget, as outlined in the
Performance Compensation Plan and as approved by the Board of Directors. See
Exhibit A.  Upon each anniversary of this contract, the Compensation
Committee will make recommendations to the full board and the Executive as to a
new matrix for bonus compensation no later than April 15th of each
year.

      

      The
Performance Bonus, if earned, shall be paid by the Company to the Executive
within thirty (30) days following the filing of the audited financial statements
of the Company for the prior fiscal year in its annual Form 10K.

      

      4.           Business
Expenses

      

      The
Company shall reimburse the Executive for all necessary and reasonable expenses
incurred or paid by the Executive during the Employment Term in connection with
the performance of the Executive’s duties and obligations to the Company,
subject to providing the proper documentation of such expenses.  The
Company will reimburse the Executive for the use of his personal vehicle at the
established Company rates but will not provide Executive with a Company owned
vehicle.

      

      5.           Benefits -
Indemnification

      

      During
the Employment Term, the Executive will be eligible to (subject to applicable
eligibility requirements) participate in such insurance and life, health,
medical and disability benefits as are made available to the senior executives
of the Company pursuant to such plans as are from time to time maintained by the
Company.

      

      The
Company shall provide health insurance coverage to the Executive and his spouse,
or shall reimburse the Executive for such health insurance coverage from and
after the Executive’s attainment of age 60, until the Executive becomes eligible
for

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
 

      Medicare
benefits. This obligation will continue despite any termination of the
Executive’s employment with the Company, unless such termination is for cause as
defined in paragraph 12(b), and shall in all cases be limited to the amount paid
by the Company for its executives as determined from time to time.  In
the event that the Executive becomes eligible for health insurance from another
source, the obligation of the Company hereunder shall cease.

      

      The
Company shall indemnify and hold Executive harmless to the maximum extent
permitted by law and by the bylaws of the Company, and shall purchase indemnity
insurance, including directors’ and officers’ liability insurance, if available,
to protect the Executive from and against any and all claims, damages,
judgments, settlements, reasonable attorneys fees, and other expenses reasonably
incurred by the Executive in connection with any proceeding arising out of or in
connection with the Executive’s employment by the Company.

      

      6.           Vacation

      

      During
each full year of the Employment Term, the Executive shall be entitled to the
number of days of vacation as outlined in the U.S. Energy Employee
Handbook.  The Executive shall take vacation at such time or times as the
Executive desires based upon the then current business needs and activities of
the Company.  The Executive is however required to take five
consecutive days of vacation during each twelve month period of the Employment
Contract to satisfy the controls established pursuant to Sarbanes
Oxley.

      

      7.           Covenant Not to
Solicit

      

      The
Executive shall not, during the Employment Term and the three (3) year period
following the end of the Employment Term (the “Restriction Period”), directly or
indirectly solicit, entice, persuade, induce or cause any employee, officer,
manager, director, consultant, agent or independent contractor of the Company to
terminate his, her or its employment, consultancy or other engagement by the
Company to become employed by or engaged by any individual, entity, corporation,
partnership, association, or other organization (collectively, “Person”) other
than the Company, or approach any such employee, officer, manager, director,
consultant, agent or independent contractor for any of the foregoing purposes,
or authorize or assist in the taking of any of such actions by any
Person.

      

      The
Executive shall not, during the Restriction Period, directly or indirectly,
solicit, entice, persuade, induce or cause (i) any Person who is a customer of
the Company at any time during the Restriction Period; or (ii) any lessee,
vendor or supplier to, or any other Person who had or has a business
relationship with, the Company at any time during the Restriction
Period (the Persons referred to in items (i) and (ii) above, collectively,
the “Prohibited Persons”) to enter into a business relationship with any other
Person for the same or similar services, activities or goods that any such
Prohibited Person purchased from, was engaged in or provided to, the Company or
to reduce or terminate such Prohibited Person’s business relationship with the
Company; and the

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
 

      Executive
shall not, directly or indirectly, approach any such Prohibited Person for any
such purpose, or authorize or assist in the taking of any of such actions by any
Person.

      

      For
purposes of this Section 7, the terms “employee”, “consultant”, “agent”, and
“independent contractor” shall include any Persons with such status at any time
during the one (1) month preceding any solicitation in question.

      

      8.           Non-Compete

      

      Except as
otherwise provided in this Agreement, during the Employment Term and during the
Restriction Period, the Executive shall not directly or indirectly, alone
or in association with any other Person, manage, operate, join, control, be
employed by, or participate in the partnership, management, operation or control
of, or be connected in any manner with, including but not limited to as a
director, officer, partner, member, lender, vendor, consultant, employee,
advisor, agent, independent contractor or a controlling  shareholder
of an entity that engages in the exploration or development activities for oil
and gas, molybdenum or renewable resource development (the “Business”). 
For purposes of this Section 8, the Executive covenants not to compete with the
Company in its established or anticipated businesses.  To remedy the
competition provision of this contract the Executive must bring in writing any
prospective opportunities he learns of and desires to participate in to the
Board of Directors and make such opportunity available to the
Company.  In the event that the Company advises the Executive in
writing that it has no interest in the prospect, or business opportunity the
Executive is free to move forward however he chooses.  Such written
notice will not be unreasonably withheld.

      

      9.           Protection of Confidential
Information

      

      The
Executive acknowledges that prior to the date hereof the Executive has had
access to, and during the course of the Executive’s employment hereunder will
have access to, significant Confidential Information (as hereinafter defined).
During the Restriction Period, (i) the Executive shall maintain all Confidential
Information in strict confidence and shall not disclose any Confidential
Information to any other Person, except as necessary in connection with the
performance of the Executive’s duties and obligations under this Agreement, and
(ii) the Executive shall not use any Confidential Information for any purpose
whatsoever except in connection with the performance of the Executive’s duties
and obligations under this Agreement.

      

      “Confidential
Information” shall mean any and all information pertaining to the Company and
the Business, whether such information is in written form or communicated
orally, visually or otherwise, that is proprietary, non-public or relates to any
trade secret, including, but not limited to, customer data, sales and marketing
information, business and marketing strategies, loan data, loan and deposit
account information, files, business secrets, computer programs or files, and
business techniques. Notwithstanding the foregoing, “Confidential Information”
shall not include information that (i) is or becomes generally available to, or
known by, the public through no fault of

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
 

      the
Executive, or (ii) is independently acquired or developed by the Executive
outside the scope of his employment.

      

      10.           Certain Additional
Agreements

      

      The
Executive agrees that it is a legitimate interest of the Company and reasonable
and necessary for the protection of the goodwill and business of the Company,
which are valuable to the Company, that the Executive make the covenants
contained in Sections 7, 8 and 9 of this Agreement.

      

      The
parties acknowledge that (i) the type and periods of restriction imposed in the
provisions of Sections 7, 8 and 9 of this Agreement are fair and reasonable and
are reasonably required to protect and maintain the proprietary and other
legitimate business interests of the Company, as well as the goodwill associated
with the Business conducted by the Company, (ii) the Business conducted by the
Company extends throughout the Restricted Territory, and (iii) the time, scope,
geographic area and other provisions of Sections 7, 8 and 9 of this Agreement
have been specifically negotiated by sophisticated commercial parties
represented by experienced legal counsel.

      

      In the
event that any covenant contained in this Agreement, including, without
limitation, any covenant contained in Sections 7, 8 and 9 of this Agreement
shall be determined by any court of competent jurisdiction to be illegal,
invalid or unenforceable by reason of its extending for too great a period of
time or over too great a geographical area or by reason of its being too
extensive in any other respect, (i) such covenant shall be interpreted to extend
over the maximum period of time for which it may be legal, valid and
enforceable, as applicable, and/or over the maximum geographical area as to
which it may be legal, valid and enforceable, as applicable, and/or to the
maximum extent in all other respects as to which it may be legal, valid and
enforceable, as applicable, all as determined by such court making such
determination, and (ii) in its reduced form, such covenant shall then be legal,
valid and enforceable, as applicable, but such reduced form of covenant shall
only apply with respect to the operation of such covenant in the particular
jurisdiction in or for which such adjudication is made. It is the intention of
the parties that such covenants shall be enforceable to the maximum extent
permitted by applicable law.

      

      It is
acknowledged and agreed that the covenants contained in Sections 7, 8 and 9 of
this Agreement are in additional to, and do not supersede, the covenants
contained in the “Executive Severance and Non-Compete Agreement” previously
entered into by and between the parties.

      

      11.           Specific
Performance

      

      The
Executive acknowledges that any breach or threatened breach of the covenants
contained in Sections 7, 8, 9 and 10 of this Agreement will cause the
Company material and irreparable damage, the exact amount of which will be
difficult to ascertain and that the remedies at law for any such breach or
threatened breach will be inadequate. Accordingly, the Executive agrees that the
Company shall, in addition to all other available rights and remedies
(including, but not limited to, seeking such damages as it

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
 

      can show
it has sustained by reason of such breach), be entitled to specific performance
and injunctive relief in respect of any breach or threatened breach of any of
Sections 7, 8, 9 and 10 of this Agreement, without being required to post
bond or other security and without having to prove the inadequacy of the
available remedies at law or irreparable harm.

      

      12.           Termination

      

      (a)           Except
as set forth in Section 12(b), in the event of the termination of the
Executive’s employment during the Employment Term the Executive shall be
entitled to receive, and the Company shall pay the Executive (i) the Base Salary
owing to the Executive hereunder through the date of termination, (ii) accrued
vacation, and (iii) any business expenses which were properly reimbursable to
the Executive pursuant to Section 4 hereof through the date of
termination. Such amounts shall be paid to the Executive in a lump-sum not
later than seventy-five (75) days after the date of termination.  The
Executive shall be entitled to no further payment upon such termination with the
exception of the health insurance benefit described in paragraph 5.

      

      (b)           In
the event of the termination of the Executive’s employment during the Employment
Term (i) by the Company without Cause (as defined below) or (ii) by the
Executive for Good Reason (as defined below), and contingent upon Executive
first executing the Separation Agreement that is attached hereto as Exhibit E
and that Separation Agreement becoming fully effective pursuant to its terms,
then the Executive shall be entitled to receive, and the Company shall pay the
Executive, in addition to the amounts described in 12(a) above, (i) severance
equal to the Executive’s annual Base Salary at the date of termination
multiplied by three (3), and (ii) cash equal to the excess of the Market Value
of securities underlying the vested options held by the Executive immediately
prior to termination, less the exercise price of such options, multiplied by the
number of shares underlying the corresponding options.  Such amounts
shall be paid to the Executive in a lump-sum not later than seventy-five (75)
days after the date of termination, and shall be reduced by any amounts payable
to the Executive under paragraphs 2(a), (b) and (d) of the Executive Severance
and Non-Compete Agreement.

      

      For
purposes of this Agreement, “Cause” shall mean:

      

      (i)
failure to accomplish the goals established in the Company’s operating plans as
determined by the Board  of Directors;(ii)  that the
Executive shall have committed an intentional act of fraud, embezzlement or
theft in connection with his duties with, or in the course of his employment
with, the Company, or been convicted of a felony or other crime involving moral
turpitude;

      

      (iii) intentional
wrongful damage to or misappropriation of property of the Company;

      

      (iv) an
intentional or grossly negligent refusal or failure to perform Executive’s
duties, or to carry out the reasonable

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
 

      directions
of the Company’s Board of Directors (other than on account of illness or other
physical or mental disability), which refusal or failure is not remedied within
the 10 calendar days after receipt by the Executive of written notice from the
Company thereof, or insubordination;

      

      (v) a
material breach of any of the provisions of this Agreement applicable to
Executive, which breach is not remedied within the 10 calendar days after
receipt by the Executive of written notice from the Company of such breach; and
in any case any such act or failure to act shall be determined by the Board of
Directors of the Company to have been materially harmful to the Company. For
purposes of this Agreement, no act, or failure to act, on the part of the
Executive shall be deemed “intentional” unless done, or omitted to be done, by
the Executive not in good faith and without a reasonable belief that his action
or omission was in the best interests of the Company, as determined by the Board
of Directors of the Company in its sole but reasonable discretion;
or

      

      For
purposes of this Agreement, “Good Reason” shall mean a termination occurring
within one hundred and twenty (120) days after the occurrence of any of the
following events:

      (i) a
significant and material adverse change in the nature or scope of Employee’s
duties and responsibilities or other working conditions with Company including
job classification change from that of an Executive,

      

      (ii) a
failure by the Company to make timely payment to the Employee of any amounts to
which he is entitled hereunder or to otherwise provide Employee with any of the
benefits to which he is entitled hereunder on the terms provided herein or any
other breach of the covenants contained herein, any of which is not remedied
within 10 calendar days after receipt by the Company of written notice from the
Employee of Employee’s objection to such change, failure, reduction or breach,
as the case may be; or

      

       (iii) the
liquidation, dissolution, merger, consolidation or reorganization of the Company
or transfer of a significant amount of the business and/or assets of the Company
to another party, unless the successor or successors (by liquidation,
dissolution, merger, consolidation, reorganization or otherwise) or other
transferee or transferees to which all or substantially all of such business
and/or assets have been transferred (directly or by operation of law) shall have
assumed all duties and obligations of the Company to Employee hereunder by an
instrument in writing reasonably satisfactory in form and in substance to the
Employee.

      

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      
 

      (c)           Notwithstanding
the foregoing, if the Executive is a “specified employee” (within the meaning of
Section 409A(a)(2)(B) of the Internal Revenue Code of 1986, as amended) and if
Section 409A is applicable to any amounts payable hereunder, all such amounts
that would have been paid to the Executive under this Section 12 during the 6
month period following the termination of his employment shall instead be paid
in a lump sum on the first day of the 7th month
after the month of such termination of employment.

      

      (d)           The
amounts payable to the Executive under this paragraph 12 shall be in addition to
and not in lieu of any benefit payable to the Executive pursuant to the
Company’s Executive Officer Retirement Plan.

      

      (e)           In
the event that the Executive dies while employed as CEO or Chairman and this
Agreement has not been terminated, the benefits under Section 12(b) will inure
to the benefit of the Executive’s designated beneficiary or his
estate.

      

      13.           Annual Medical
Examination   Executive agrees to make himself available
for an annual physical examination at a location to be selected by the Board of
Directors and at the expense of the Company and that such medical examination
will be completed no later than April 30th of each
year.

      

      14.           Miscellaneous

      

      All
notices, demands, consents, requests, instructions and other communications to
be given or delivered or permitted under or by reason of the provisions of this
Agreement or in connection with the transactions contemplated hereby shall be in
writing and shall be deemed to be delivered and received by the intended
recipient as follows:  (i) if personally delivered, on the business day of
such delivery (as evidenced by the receipt of the personal delivery service),
(ii) if mailed certified or registered mail return receipt requested, four (4)
business days after being mailed, (iii) if delivered by overnight courier (with
all charges having been prepaid), on the business day of such delivery (as
evidenced by the receipt of the overnight courier service of recognized
standing), or (iv) if delivered by facsimile transmission or email, on the
business day of such delivery if sent by 5:00 p.m. in the time zone of the
recipient, or if sent after that time, on the next succeeding business day (as
evidenced by the printed confirmation of delivery generated by the sending
party’s facsimile machine). If any notice, demand, consent, request, instruction
or other communication cannot be delivered because of a changed address of which
no notice was given (in accordance with this Section 14), or the refusal to
accept same, the notice, demand, consent, request, instruction or other
communication shall be deemed received on the second business day the notice is
sent (as evidenced by a sworn affidavit of the sender). All such notices,
demands, consents, requests, instructions and other communications will be sent
to the following addresses or facsimile numbers as applicable:

      

      
 

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
 

      If to the
Company, to:

      

      U.S.
Energy Corp.

      Attn:
Robert Scott Lorimer, CFO

      877 North
8th
West

      Riverton,
WY 82501

      (307)
856-9271

      scott@usnrg.com

      

      with a
copy to:

      

      Stephen P. Rickles, Esq.

      Berenbaum, Weinshienk & Eason,
P.C.

      370 17th Street,
Suite 4800

      Denver,
CO 80202

      (303)
592-8308

      srickles@bw-legal.com

      

      If to the
Executive, to:

      

      Keith Larsen

      877 North 8th
West

      Riverton,
WY  82501

      

      

      15.           Amendment

      

      This
Agreement may not be modified, amended, altered or supplemented, except by a
written agreement executed by each of the parties hereto.

      

      16.           Entire
Agreement

      

      This
Agreement contains the entire understanding and agreement of the parties
relating to the subject matter hereof and, except as otherwise stated herein,
supersedes all prior and/or contemporaneous understandings and agreements of any
kind and nature (whether written or oral) among the parties with respect to such
subject matter, all of which are merged herein.

      

      17.           Waiver

      

      Any
waiver by a party hereto of any breach of or failure to comply with any
provision or condition of this Agreement by any other party hereto shall not be
construed as, or constitute, a continuing waiver of such provision or condition,
or a waiver of any

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
 

      other
breach of, or failure to comply with, any other provision or condition of this
Agreement, any such waiver to be limited to the specific matter and instance for
which it is given. No waiver of any such breach or failure or of any provision
or condition of this Agreement shall be effective unless in a written instrument
signed by the party granting the waiver and delivered to the other party hereto
in the manner provided for hereunder in Section 14. No failure or delay by
any party to enforce or exercise its rights hereunder shall be deemed a waiver
hereof, nor shall any single or partial exercise of any such right or any
abandonment or discontinuance of steps to enforce such rights, preclude any
other or further exercise thereof or the exercise of any other
right.

      

      18.           Governing Law;
Jurisdiction

      

      This
Agreement shall be governed by and construed in accordance with the laws of the
State of Wyoming applicable to agreements made and to be performed in that
state, without regard to any of its principles of conflicts of laws or other
laws that would result in the application of the laws of another
jurisdiction.

      

      Each of
the parties unconditionally and irrevocably consents to the exclusive
jurisdiction of the courts of the State of Wyoming and the federal district
court for the District of Wyoming with respect to any suit, action or proceeding
arising out of or relating to this Agreement, and each of the parties hereby
unconditionally and irrevocably waives any objection to venue in any such court
or to assert that any such court is an inconvenient forum, and agrees that
service of any summons, complaint, notice or other process relating to such
suit, action or other proceeding may be effected in the manner provided in
Section 14 hereof. Each of the parties hereby unconditionally and
irrevocably waives the right to a trial by jury in any such action, suit or
other proceeding

      

      19.           Binding Effect, No
Assignment, etc

      

      This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective legal representatives, heirs, estate, successors and
permitted assigns. Neither this Agreement nor any right, interest or obligation
hereunder may be assigned by any party hereto without the prior written consent
of the other party, and any attempt to do so shall be void and of no force and
effect, except (i) assignments and transfers by operation of law and (ii) that
the Company may assign any or all of its respective rights, interests and
obligations hereunder to any purchaser of a majority of the issued and
outstanding capital stock of the Company or a substantial part of the assets of
the Company.

      

      20.           Third
Parties

      

      Nothing
herein is intended or shall be construed to confer upon or give to any Person,
other than the parties hereto (or persons set forth in Section 14), any
rights, privileges or remedies under or by reason of this
Agreement.

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
 

      21.           Headings

      

      The
section headings contained in this Agreement  are inserted for reference
purposes only and shall not affect in any way the meaning, construction or
interpretation of this Agreement. Any reference to the masculine, feminine, or
neuter gender shall be a reference to such other gender as is appropriate.
References to the singular shall include the plural and vice versa.

      

      22.           Counterparts.

      

      This
Agreement may be executed in two (2) or more counterparts (including by
facsimile or electronic signature, which shall constitute a legal and valid
signature), and by the different parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original, and all of which, when
taken together, shall constitute one and the same document. This Agreement shall
become effective when one or more counterparts, taken together, shall have been
executed and delivered by all of the parties.

      

      

      IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
first above written.

      
        	 
      	 
      	 
      
	 
      	
                U.S.
      ENERGY CORP.

              
	 
      	 
      	 
      
	 
      	
                By:  

              	
                /s/
      Michael T. Anderson

              
	 
      	
                Michael
      T. Anderson

                U.S.
      Energy Board Member

              
	 
      	 
      
	 
      	 
      	 
      
	 
      	
                EXECUTIVE

              
	 
      	 
      	 
      
	 
      	 
      	
                 /s/
      Keith G. Larsen

              
	 
      	 
      	
                Keith
      G. Larsen

              
	 
      	 
      	
                Chairman,
      CEO

              

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
 

      SEPARATION
AGREEMENT

      [form
to be completed at and tendered to Executive
within 5 days after separation]

      

      THIS
SEPARATION AGREEMENT is entered into by and between U.S. ENERGY CORP. ("Company")
and Keith G. Larsen
("Executive") for good and valuable consideration, the sufficiency of which is
hereby acknowledged.

      

      1.           Executive
and Company agree that Executive’s retirement from employment with Company is
effective as of  [insert
date]    (the
“Separation Date”).  Company agrees to consult with Executive
regarding the wording of appropriate press releases and/or inter-company
announcements to be issued by Company.

      

      2.           Regardless
of whether he signs this Separation Agreement, Executive will be paid all
compensation as provided in paragraph 12 (a) of the Employment Agreement, a copy
of which is attached hereto and incorporated herein by reference (the
“Employment Agreement”).

      

      3.           In
exchange for Executive's agreement to this Separation Agreement, Company agrees
to provide Executive with the additional severance benefits described in
paragraph 12(b) of the Employment Agreement.  Executive acknowledges
that he would not be entitled to receive the severance benefits described in
paragraph 12(b) of the Employment Agreement if he did not agree to all of the
terms of this Separation Agreement.

       

      4.           Upon
full payment by the Company to the Executive of all compensation and benefits
specified in Section 12(b) of the Employment Agreement and as provided by this
Agreement, the Executive, for himself and his affiliates, successors, heirs,
subrogees, assigns, principals, agents, partners, employees, associates,
attorneys and representatives, voluntarily, knowingly and intentionally releases
and discharges the Company and its predecessors, successors, parents,
subsidiaries, affiliates and assigns and each of their respective officers,
directors, principals, shareholders, agents, attorneys, board members, and
employees from any and all claims, actions, liabilities, demands, rights,
damages, costs, expenses, and attorney fees (including but not limited to any
claim of entitlement for attorney fees under any contract, statute, or rule of
law allowing a prevailing party or plaintiff to recover attorney fees), of every
kind and description, whether accrued or unaccrued, known or unknown at this
time (the “Released Claims”).

       

      (i)           Subject
to the last sentence of this subsection (i), the Released Claims
include, but are not limited to, those which arise out of, relate to, or are
based upon: (i) the Executive’s employment with, or separation from, the Company
or its subsidiaries and any related officer or director positions; (ii)
statements, acts or omissions by the Parties whether in their individual or
representative capacities, (iii) express or implied agreements between the
Parties (except as provided herein) and claims under any severance plan, (iv)
all federal, state, and municipal statutes, ordinances, and regulations,
including, but not limited to, claims of discrimination based on race, national
origin, age, 

       

       

       

      
        
          
            Schedule
E

            Page
1 of 3

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      sex,
disability, whistleblower status, public policy, or any other characteristic of
the Executive under the Age Discrimination in Employment Act, the Older Workers
Benefit Protection Act, the Americans with Disabilities Act, the Equal Pay Act,
Title VII of the Civil Rights Act of 1964 (as amended), the Employee Retirement
Income Security Act of 1974, the Rehabilitation Act of 1973, the Worker
Adjustment and Retraining Notification Act, or any other federal, state, or
municipal law prohibiting discrimination or termination for any reason, (v)
state and federal common law, and (vi) any claim which was or could have been
raised by the Executive; provided, however, that the Released Claims shall not
include stock in the Company currently held by the Executive or the Executive’s
outstanding options to purchase stock from the Company, and any such options
shall vest pursuant to the terms of the relevant stock option grants and stock
option plan.  Provided, that Released Claims shall not include any
claims against the Company which the Executive may have before or after the date
of this Separation Agreement, which claims are covered by the indemnification
provisions of the Company’s articles of incorporation, bylaws, or Wyoming
corporate law and which may not be legally released.

      

      (ii)           The
Company voluntarily, knowingly and intentionally releases and discharges the
Executive from any and all claims, actions, liabilities, demands, rights,
damages, costs, expenses, and attorney fees (including but not limited to any
claim of entitlement for attorney fees under any contract, statute, or rule of
law allowing a prevailing party or plaintiff to recover attorney fees), of every
kind and description.  Provided, that the foregoing Company release
shall not include claims which the Company may have against the Executive before
or after the date of this Separation Agreement, which claims are covered by the
indemnification provisions of the Company’s articles of incorporation, bylaws,
or Wyoming corporate law and which may not be legally released.

      

      5.           Executive
agrees that he will not file, cause to be filed, or prosecute any civil suit in
any court for any claims which are released in Paragraph 4.  In the
event that Executive breaches this paragraph, all Released Persons shall be
entitled to recover from Executive all reasonable attorney fees and costs
incurred as a result of such breach, provided, however, that Executive's
obligation to pay attorney fees and costs shall apply to claims asserted under
the Age Discrimination in Employment Act or the Older Workers Benefit Protection
Act only as specifically authorized by federal law.

      

      6.           This
Separation Agreement constitutes the entire agreement between Executive and
Employer concerning his separation from employment with Employer and supersedes
all prior agreements relating thereto, and there are no other promises,
understandings, or agreements relating thereto except as may be provided
herein.   Both parties agree and acknowledge that they have not
relied upon any representation, whether written or oral, of the other party in
connection with entering into this Separation Agreement.  Nothing in
this Agreement shall be construed as an admission of liability or wrongdoing by
either party.  The purpose of this Agreement is solely to amicably
resolve all issues relating to Executive's employment and separation from
employment with Employer and to provide transitional assistance to
Executive.  No rules of construction 

       

       

      
        
          
            Schedule
E

            Page 2
of 3

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      based
upon which party drafted any portion of this Agreement shall be applicable in
the event of any dispute over its meaning or interpretation.  This
Agreement shall be construed and enforced in accordance with the law of the
State of Wyoming.  If any provision of this Agreement is found to be
invalid or unenforceable by a court of competent jurisdiction, the remaining
terms of this Agreement will remain in full force and effect, and any Court
having jurisdiction shall modify any such invalid or unenforceable provision to
the extent necessary for it to be valid and enforceable.

      

      7.           Executive
understands that this is an important legal document.  Executive is
advised to consult with an attorney before signing this Separation
Agreement.  Executive has 21 days after receiving this Separation
Agreement to consider it, and if Executive chooses to agree to the terms of this
Separation Agreement, Executive understands that he must sign and return this
Separation Agreement to Employer within that 21-day period.  If
Executive signs this Separation Agreement, he will then have the right to revoke
this Separation Agreement by delivering written notice of revocation, but such
notice must be received by Employer within seven (7) days after the date that
Executive signed this Separation Agreement.  If this Separation
Agreement is not signed and delivered within 21 days, or if it is revoked within
the seven day period, neither Executive nor Employer will have any rights or
obligations under this Separation Agreement.  The Effective Date of
this Separation Agreement is the eighth day after Executive signs it, unless
Executive revokes it as described above.

      

      8.           It
is expressly understood that Executive has read and reviewed this Separation
Agreement and every word of it, that Executive has had an opportunity to discuss
this Separation Agreement with an attorney if he chose to do so, and that
Executive understands this Separation Agreement.  By signing below,
Executive represents that this Separation Agreement has been entered into
voluntarily and knowingly and is binding upon him, his heirs, and personal
representatives, and shall inure to the benefit of Employer, its successors and
assigns.

      

       

       

                                                                                      U.S. Energy
Corp.

      

       

                                                                                      By:
______________________________

      

      

       

                                                                                      __________________________________

                                                                                      Keith G.
Larsen

       

       

      
        
          
            Schedule
E

            Page 3
of 3

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

      Schedule
for Base Salary

      

      

      The base
salary for Keith G. Larsen for 2009 is $240,510, thereafter changed annually
upon recommendation of the Compensation Committee and approval of the full
Board.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      Exhibit
A

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      

      U.S.
ENERGY 2009 Performance Compensation Plan

      

      The
Company’s employees are eligible to receive an annual incentive bonus tied to
achievement by the Company of a variety of financial, strategic and personal
objectives.  Separate plans with different weighting of objectives for
employees have been created to take into account the different levels and types
of responsibilities that the executives and employees have within the
Company.

      

      The Board
of Directors will establish performance objectives, thresholds and goals for
each calendar year and will approve personal objectives established for
employees by management.  The Performance Compensation Plan links cash
awards to achievement of the short-term business objectives and shareholder’s
interest.

      

      The
activation trigger for consideration of Performance Compensation payments is the
attainment of positive cash flow from operations.  Distribution of the
total bonus percentage between the executive and non-executive tier of employees
will be determined by the Compensation Committee as soon as possible following
the filing of the audited annual financial results with the Securities and
Exchange Commission.

      

      An
Outstanding Performance Compensation Award has also been established within the
plan to recognize an employee who makes a significant contribution to the
current or future welfare of the Company.  Such a compensation award
will be determined by the Board of Directors without regard to any trigger,
financial requirement or timing.

      

      The 2009
Performance Compensation Plan is weighted to compensate Senior Management for
improvement of shareholder value.  Middle Management as well as Staff
personnel of the Company may also become eligible for inclusion under the
Performance Compensation Plan in the event that goals and objectives are met as
detailed in the Compensation Matrix, but to a lesser degree and after Senior
Management is compensated as determined by the Compensation Committee and
approved by the full Board of Directors.

      

      Criteria
for each compensation matrix will be evaluated and modified annually under the
direction of the Board of Directors upon the recommendations of the Compensation
Committee.  In the event that there is no positive cash flow from
operations, there will be no additional performance compensation under this plan
over base salaries and approved compensation plans with the exception of
extraordinary compensation for achievement as indicated above and approved by
the Board of Directors.

       

       

      
        
          
            Schedule
A

            Page 1
of 2

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      The 2009
Compensation Matrix is as follows:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Description

                                          	
                                            Tier

                                          	 
      	
                                            Tier

                                          	 
      	
                                            Tier

                                          	 
      	
                                            Tier

                                          	 
      	
                                            Executive

                                          
	 
      	
                                            1

                                          	 
      	
                                            2

                                          	 
      	
                                            3

                                          	 
      	
                                            4

                                          	 
      	
                                            5

                                          
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                            Salary
      Range

                                          	
                                            $0-$50,000

                                          	 
      	
                                            $50,000-$99,999

                                          	 
      	
                                            $100,000-149,999

                                          	 
      	
                                            150,000
      +

                                          	 
      	
                                            Senior

                                          
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                            Non-executive

                                          	 
      	
                                            Management

                                          
	
                                            Bonus
      Percentage of Base Salary

                                          	
                                            33%

                                          	 
      	
                                            33%

                                          	 
      	
                                            50%

                                          	 
      	
                                            100%

                                          	 
      	
                                            100%

                                          
	
                                              (Maximum)

                                          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                            Criteria

                                          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                            Financial
      Factors

                                          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                            Stock
      Price

                                          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                  (based
      upon 200 day moving average)

                                          	
                                            5.0%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            10.0%

                                          	 
      	
                                            15.0%

                                          	 
      	
                                            20.0%

                                          
	
                                            ROE
      Factor

                                          	
                                            2.5%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            10.0%

                                          
	
                                            EPS
      Factor

                                          	
                                            2.5%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            10.0%

                                          
	
                                            Cash-Flow
      Factor

                                          	
                                            5.0%

                                          	 
      	
                                            5.0%

                                          	 
      	
                                            10.0%

                                          	 
      	
                                            15.0%

                                          	 
      	
                                            20.0%

                                          
	 
      	
                                            15%

                                          	 
      	
                                            20%

                                          	 
      	
                                            30%

                                          	 
      	
                                            40%

                                          	 
      	
                                            60%

                                          
	
                                            Performance
      rating

                                          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                            Budget

                                          	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                 Department

                                          	
                                            20%

                                          	 
      	
                                            15%

                                          	 
      	
                                            10%

                                          	 
      	
                                            10%

                                          	 
      	 
      
	
                                                 Company

                                          	 
      	 
      	 
      	 
      	
                                            5%

                                          	 
      	
                                            10%

                                          	 
      	
                                            10%

                                          
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                            Department
      Goals

                                          	
                                            25%

                                          	 
      	
                                            25%

                                          	 
      	
                                            20%

                                          	 
      	
                                            5%

                                          	 
      	 
      
	
                                            Company
      Goals

                                          	
                                            15%

                                          	 
      	
                                            15%

                                          	 
      	
                                            15%

                                          	 
      	
                                            20%

                                          	 
      	
                                            20%

                                          
	
                                            Individual
      employee Goals

                                          	
                                            25%

                                          	 
      	
                                            25%

                                          	 
      	
                                            20%

                                          	 
      	
                                            15%

                                          	 
      	
                                            10%

                                          
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                            100%

                                          	 
      	
                                            100%

                                          	 
      	
                                            100%

                                          	 
      	
                                            100%

                                          	 
      	
                                            100%

                                          
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      Definitions:

      

      Cash Flow from Operations –
Cash flow from operations from the annual audited financial statements filed
with the Securities and Exchange Commission.  The cost of operations
of the water treatment plant at Mount Emmons, interest income and income taxes
paid will be added back to compute Cash Flow from Operations for purposes of
this Performance Compensation Plan.

      

      Return on Equity Factor
(“ROE”) – Positive addition to Retained Earnings and or a reduction of the prior
year loss which results in a reduction of Retained Earnings.

      

      Earnings Per Share Factor (“EPS”)
– Improvement in earnings per share from prior year.

      

      Budget – Meet expense goals
outlined in annual operating budget with Board approved modifications throughout
the year.

      

      

      
        
          
             

            Schedule
A Page 2 of 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]