Document:

Exhibit 10.32

 

OPTION TO ACQUIRE
SHARES

OF COMMON STOCK OF
NATIONAL HEALTH PARTNERS, INC.

 

WHEREAS, National Health
Partners, Inc., an Indiana corporation (the “Company”) wishes to grant
this option to Patricia S. Bathurst (the “Holder”).

 

NOW, THEREFORE, in
consideration of the foregoing, the agreement set forth below and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereby
agree as follows:

 

1.             Grant of Option.  The Company
hereby grants to the Holder on this 29th day of December, 2009 (the “Grant Date”) an
option (this “Option”) to purchase 855,643 shares (“Shares”) of the Company’s
common stock, $.001 par value per share (“Common Stock”), on the terms and
subject to the conditions set forth herein.

 

2.             Term of Option. 
This option shall have a maximum term of ten (10) years measured
from the Grant Date (the “Expiration Date”) and shall accordingly expire at
5:00 p.m. eastern standard time on the Expiration Date.

 

3.             Right to Exercise. 
This Option may be exercised in whole or in part commencing on the Grant
Date.

 

4.             Exercise Price.  The exercise price per Share (“Exercise Price”)
at which this Option may be exercised shall be five and one-half cents ($0.07)
per Share.

 

5.             Method of Exercise.

 

(a)           This Option shall be exercised by execution and
delivery of the Notice of Exercise attached hereto as Appendix A (“Notice
of Exercise”) or any other written notice approved for such purpose by the
Company that shall state the election of the Holder to exercise this Option,
the number of Shares in respect of which this Option is being exercised, and
such other representations and agreements as to the holder’s investment intent
with respect to such Shares as may be required by the Company.  The Notice of Exercise shall be accompanied
by payment of the Exercise Price.  This
Option shall be deemed to be exercised upon receipt by the Company of the
Notice of Exercise accompanied by payment of the Exercise Price.

 

(b)           No Shares shall be issued pursuant to the exercise of
this Option unless such issuance and such exercise shall comply with all
relevant provisions of applicable law, including the requirements of any stock
exchange upon which the Shares may then be listed.  Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to the Holder on the date
on which this Option is exercised with respect to such Shares.

 

(c)           This Option may not be exercised for a fractional
Share or scrip representing a fractional Share. 
In lieu of any fractional Share to which the Holder would 

 

 

otherwise be entitled,
the Company shall make a cash payment equal to the Exercise Price multiplied by
such fraction.

 

(d)           In no event may this Option be exercised
after the Expiration Date.

 

6.             Methods of Payment. 
Shares of Common Stock purchased upon the exercise of this Option may be
paid for as follows:

 

(a)           in cash or by check, payable to the
order of the Company;

 

(b)           if the shares of Common Stock underlying
the Option are registered under the Securities Act of 1933, as amended (the “Securities
Act”), by: (i) delivery by the Holder to the Company of an irrevocable and
unconditional undertaking by a creditworthy broker to deliver promptly to the
Company sufficient funds to pay the exercise price and any required tax
withholding, or (ii) delivery by the Holder to the Company of a copy of
irrevocable and unconditional instructions to a creditworthy broker to deliver
promptly to the Company the exercise price and any required tax withholding;

 

(c)           if the shares of Common Stock
underlying the Option are registered under the Securities Act, by delivery of
such shares of Common Stock owned by the Holder valued at their Fair Market
Value (as defined below), provided: (i) such method of payment is then
permitted under applicable law, (ii) such shares of Common Stock have been
owned by the Holder at least six months prior to the date of such delivery, and
(iii) such shares of Common Stock are not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements or restrictions;

 

(d)           by reducing the number of shares of
Common Stock otherwise issuable under this Option to the Holder upon the
exercise of this Option by a number of shares of Common Stock having a Fair
Market Value equal to such aggregated exercise price; provided, however, that
such method of payment is then permitted under applicable law;

 

(e)           to the extent permitted by
applicable law and by the board of directors of the Company (the “Board”), in
its sole discretion, by: (i) delivery of a promissory note of the Holder
to the Company on terms determined by the Board, or (ii) payment of such
other lawful consideration as the Board may determine; or

 

(f)            by any combination of the above permitted
forms of payment.

 

For the purpose of this
Agreement, “Fair Market Value” shall mean:

 

(i)          If the Common Stock is admitted to quotation on the
National Association of Securities Dealers Automated Quotation System (“NASDAQ”),
the Fair Market Value on any given date shall be the average of the highest bid
and lowest ask prices of the Common Stock as reported for such date or, if no
bid and ask prices were reported for such date, for the last day preceding such
date for which such prices were reported;

 

(ii)         If the Common Stock is admitted to trading on a United
States national securities exchange or the NASDAQ National Market System, the
Fair Market Value on 

 

2

 

any given date
shall be the closing price reported for the Common Stock on such exchange
or system for such date or, if no sales were reported for such date, for the
last day preceding such date for which a sale was reported;

 

(iii)        If the Common
Stock is traded in the over-the-counter market and not on NASDAQ, the NASDAQ
National Market System or any United States national securities exchange, the
Fair Market Value on any given date shall be the average of the mean between
the last bid and ask prices per share as reported by the National Quotation
Bureau, Inc. or an equivalent generally accepted reporting service for
such date or, or if not so reported, the average of the closing bid and ask
prices of the Common Stock for such date as furnished to the Company by any
member of the National Association of Securities Dealers, Inc. selected by
the Company for that purpose; or

 

(iv)          If the Fair Market Value of the Common Stock cannot
be determined on the basis previously set forth in this definition on the date
that the Fair Market Value is to be determined, the Board shall in good faith
determine the Fair Market Value of the Common Stock on such date.

 

The delivery of certificates representing the
shares of Common Stock to be purchased pursuant to the exercise of this Option
will be contingent upon receipt from the Holder (or a purchaser acting in his
stead in accordance with the provisions of this Option) by the Company of the
full purchase price for the Shares and the fulfillment of any other
requirements contained in this Option or imposed by applicable law.

 

7.             Rights of Stockholder. 
The Holder shall not have any stockholder rights with respect to any
Shares until such Holder shall have exercised this Option, paid the Exercise
Price and become a holder of record of the purchased Shares.

 

8.             Adjustment of Exercise Price and Number
of Shares.  The number and kind of securities purchasable
upon exercise of this Option and the Exercise Price shall be subject to
adjustment from time to time as follows:

 

(a)           Subdivisions, Combinations and Other Issuances.  If the Company shall at any time prior to the
expiration of this Option subdivide its Common Stock, by split-up or otherwise,
or combine its Common Stock, or issue additional shares of its Common Stock or
any preferred stock as a dividend with respect to any shares of its Common
Stock, then the number of Shares issuable on the exercise of this Option shall
forthwith be proportionately increased in the case of a subdivision or stock
dividend, or proportionately decreased in the case of a combination.  Appropriate adjustments shall also be made to
the Exercise Price, but the aggregate purchase price payable for the total
number of Shares purchasable under this Option (as adjusted) shall remain the
same.  Any adjustment under this Section 8(a) shall
become effective at the close of business on the date the subdivision or
combination becomes effective, or as of the record date of such dividend, or in
the event that no record date is fixed, upon the making of such dividend.

 

(b)           Reclassification, Reorganization and Consolidation.  In the case of any reclassification, capital
reorganization or change in the Common Stock of the Company (other 

 

3

 

than as a result of a subdivision,
combination or stock dividend provided for in Section 8(a) above or
as a result of any “Fundamental Transaction” described in Section 8(c) below),
then, as a condition of such reclassification, reorganization or change, lawful
provision shall be made, and duly executed documents evidencing the same from
the Company or its successor shall be delivered to the Holder, so that the
Holder shall have the right at any time prior to the expiration of this Option
to purchase, at a total price equal to that payable upon the exercise of this
Option, the kind and amount of shares of stock and other securities and
property receivable in connection with such reclassification, reorganization or
change by a holder of the same number of shares of Common Stock as were
purchasable by the Holder immediately prior to such reclassification,
reorganization or change.  In any such
case, appropriate provisions shall be made with respect to the rights and
interest of the Holder so that the provisions hereof shall thereafter be applicable
with respect to any shares of stock or other securities and property
deliverable upon exercise hereof, and appropriate adjustments shall be made to
the Exercise Price payable hereunder, provided the aggregate purchase price
shall remain the same.

 

(c)           Corporate Reorganizations, Consolidations
or Mergers.  In the event of: (i) any reorganization,
consolidation or merger of the Company with or into another entity (other than
a merger in which the Company is the successor entity that does not result in
any capital reclassification, reorganization or consolidation, or other
change, in the Common Stock of the Company, or a consolidation or merger
between the Company and a wholly-owned subsidiary of the Company), (ii) any sale, lease, transfer or
conveyance to another entity of all or substantially all of the stock, property
and assets of the Company (other than a transfer to a wholly-owned subsidiary
of the Company), or (iii) a liquidation or dissolution of the Company (the
events in subsections (i), (ii) and (iii) collectively, a “Fundamental
Transaction”), then, as a condition of such Fundamental
Transaction, lawful provision shall be made by the Company and the successor
entity in connection
with such Fundamental Transaction for the assumption of this Option by the
successor entity or for the substitution of new like-kind options by the
successor entity as a result of such Fundamental Transaction, with appropriate
adjustment as to the number and kind of shares issuable upon exercise of the Option,
and, if appropriate, the per share exercise price, so as to enable the Holder
after such Fundamental Transaction to purchase the kind and amount of shares of
stock and other securities and property (including cash) receivable upon such
consolidation, merger, sale or conveyance by a holder of the number of shares
of Common Stock that would have been received upon the exercise or exchange of
this Option immediately prior to such Fundamental Transaction.

 

(d)           Notice of Adjustment.  When any adjustment is required to be made in
the number or kind of shares purchasable upon exercise of this Option or in the
Exercise Price, the Company shall promptly notify the Holder of such event and
of the number of shares of Common Stock or other securities or property
thereafter purchasable upon exercise of this Option.

 

(e)           No Impairment.  The Company and the Holder will not, by any
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed hereunder by the Company or the
Holder, respectively, but will at all times in good faith assist in the
carrying out of all the provisions of this Section 8 and in the taking of
all such action as may be necessary or appropriate in order to protect the
rights or the Company and the Holder against impairment.

 

4

 

9.             Termination of Option.

 

(a)           Termination by Death.  If Holder’s employment by, or other
relationship with, the Company terminates by reason of death, this Option may
thereafter be exercised, in whole or in part to the extent exercisable on the
date of such termination of employment, by the legal representative or legatee
of the Holder until the earlier of the date that is one year after the date of
such termination of employment or the Expiration Date.

 

(b)           Termination by Reason of Disability
or Retirement.

 

(i)            Disability.              If Holder’s employment by, or other
relationship with, the Company terminates by reason of disability as set forth
in Section 22(e)(3) of the Internal Revenue Code (“Disability”), this
Option may thereafter be exercised, in whole or in part to the extent
exercisable on the date of such termination of employment, until the earlier of
the date that is one year after the date of such termination of employment or
the Expiration Date.

 

(ii)           Retirement.            If Holder retires in good standing
from active employment or service with the Company in accordance with the
retirement policies of the Company then in effect (“Retirement”), this Option
may thereafter be exercised, in whole or in part to the extent exercisable on
the date of such termination of employment, until the earlier of the date that
is 90 days after the date of such termination of employment or the Expiration
Date

 

(iii)          Disability and Retirement
Determination.  The Board shall
have sole authority and discretion to determine whether the Holder’s employment
or services has been terminated by reason of Disability or Retirement.

 

(c)           Termination for Cause.  If Holder’s employment by, or other
relationship with, the Company terminates for “Cause,” this Option shall
immediately terminate and be of no further force and effect; provided, however,
that the Board may, in its sole discretion, provide that this Option may be
exercised until the earlier of the date that is 90 days after the date of such
termination of employment or the Expiration Date.  Termination for “Cause” shall have the
meaning ascribed to such term in the Amended and Restated Employment Agreement dated
December 30, 2008 by and between the Company and Holder (the “Employment
Agreement”).

 

(d)           Termination Without Cause or
Termination for Good Reason. 
If Holder’s employment by, or other relationship with, the Company
terminates for any reason other than death, Disability, Retirement or for
Cause, or if Holder’s employment by, or other relationship with, the Company is
terminated by Holder for “Good Reason,” this Option shall vest in full
immediately.  Termination for “Good
Reason” shall have the meaning ascribed to such term in the Employment
Agreement.

 

(e)           Transfer and Leave of Absence. 
For purposes of this Option, the following events shall not be deemed a
termination of employment: (i) a transfer of employment between any of the
Company, a parent, a subsidiary or any other affiliate of the Company, and (ii) an
approved leave of absence for military service or sickness, or for any other
purpose approved by the Board, if the Holder’s right to re-employment is
guaranteed by a statute, by contract or under the policy pursuant to which the
leave of absence was granted, or if the Board otherwise so provides in writing.

 

5

 

10.           Investment Intent.

 

(a)           The Holder of this Option, by acceptance hereof,
acknowledges that this Option and the Shares to be issued upon exercise hereof
(collectively, the “Securities”) are being acquired for the Holder’s own
account for investment purposes only and not with a view to, or with any
present intention of, distributing or reselling any of such Securities.  The Holder acknowledges and agrees that the
Securities have not been registered under the Securities Act or under any state
securities laws, and that the Securities may not be, directly or indirectly,
sold, transferred, offered for sale, pledged, hypothecated or otherwise
disposed of without registration under the Securities Act and registration or
qualification under applicable state securities laws, except pursuant to an
available exemption from such registration. 
The Holder also acknowledges and agrees that neither the Securities
Exchange Commission (“SEC”) nor any securities commission or other governmental
authority has: (i) approved the transfer of the Securities or passed upon
or endorsed the merits of the transfer of the Securities; or (ii) confirmed
the accuracy of, determined the adequacy of, or reviewed this Option.  The Holder has such knowledge, sophistication
and experience in financial, tax and business matters in general, and
investments in securities in particular, that it is capable of evaluating the
merits and risks of this investment in the Securities, and the Holder has made
such investigations in connection herewith as it deemed necessary or desirable
so as to make an informed investment decision without relying upon the Company
for legal or tax advice related to this investment.

 

(b)           The certificates evidencing any Shares
issued upon the exercise of this Option shall have endorsed thereon (except to
the extent that the restrictions described in any such legend are no longer
applicable) the following legend, appropriate notations thereof will be made in
the Company’s stock transfer books, and stop transfer instructions reflecting
these restrictions on transfer will be placed with the transfer agent of the
Shares.

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR APPLICABLE STATE SECURITIES LAWS. 
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED
OF EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT AND REGISTRATION OR
QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
AVAILABLE EXEMPTION THEREFROM.  NO
TRANSFER OF THE SECURITIES REPRESENTED HEREBY MAY BE MADE IN THE ABSENCE
OF SUCH REGISTRATION OR QUALIFICATION UNLESS THERE SHALL HAVE BEEN DELIVERED TO
THE ISSUER A WRITTEN OPINION OF UNITED STATES COUNSEL OF RECOGNIZED STANDING,
IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, TO THE EFFECT THAT SUCH
TRANSFER MAY BE MADE WITHOUT REGISTRATION OF SUCH SECURITIES UNDER THE
SECURITIES ACT AND REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE
SECURITIES LAWS.

 

6

 

11.           Covenants of the Company. 
The Company covenants and agrees that the Shares have been duly
authorized and, when issued and paid for in accordance with the terms of this
Agreement, will be validly issued, fully paid and non-assessable shares of
Common Stock with no personal liability resulting solely from the ownership of
such shares and will be free and clear of all liens, charges, restrictions,
claims and encumbrances imposed by or through the Company.

 

12.           Replacement of Option.  On receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Option and, in the case of loss, theft or destruction, on
delivery of an indemnity agreement reasonably satisfactory in form and
substance to the Company or, in the case of mutilation, on surrender and
cancellation of this Option, the Company at its expense shall execute and
deliver, in lieu of this Option, a new Option of like tenor and amount.

 

                13.           Notices.  All notices hereunder shall be sufficiently
given for all purposes hereunder if in writing and delivered personally, sent
by documented overnight delivery service or, to the extent receipt is
confirmed, telecopy, telefax or other electronic transmission service to the
appropriate address or number as set forth below:

 

If to the Company:

 

National Health Partners, Inc.

120 Gibraltar Road

Suite 107

Horsham, PA 19044

Attention:  Chief Financial
Officer

 

If to the Holder:

 

To the address specified
for Holder in the Company’s records.

 

14.           Amendment and Waiver. 
This Option may not be amended, modified or supplemented except by an
instrument or instruments in writing signed by the party against whom
enforcement of any such amendment, modification or supplement is sought.  The parties hereto entitled to the benefits
of a term or provision may waive compliance with any obligation, covenant,
agreement or condition contained herein. 
Any agreement on the part of a party to any such waiver shall be valid
only if set forth in an instrument or instruments in writing signed by the
party against whom enforcement of any such waiver is sought.   No failure or delay on the part of any party
hereto in the exercise of any right hereunder shall impair such right or be
construed to be a waiver of, or acquiescence in, any breach of any
representation, warranty, covenant or
agreement contained herein.

 

15.           Headings; Definitions. 
The section headings contained in this Option are inserted for
convenience of reference only and will not affect the meaning or interpretation
of this Option.  All references to
sections contained herein mean sections of this Option unless otherwise
stated.  All capitalized terms defined
herein are equally applicable to both the singular and plural forms of such
terms.

 

7

 

16.           Successors and Assigns. 
This Option shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, provided, however,
that no party hereto may assign its rights or delegate its obligations under
this Option without the express prior written consent of the other party
hereto.  Nothing in this Option is
intended to confer upon any person not a party hereto (and their successors and
assigns) any rights, remedies, obligations or liabilities under or by reason of
this Option.

 

17.           Severability. 
If any provision of this Option or the application thereof to any person
or circumstance is held to be invalid or unenforceable to any extent, the
remainder of this Option shall remain in full force and effect and shall be
reformed to render this Option valid and enforceable while reflecting to the
greatest extent permissible the intent of the parties.

 

18.           Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Pennsylvania, without regard to the laws that might
otherwise govern under applicable principles of conflicts of laws thereof.

 

19.           Counterparts. 
This Agreement may be executed and delivered by facsimile in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same agreement.

 

[Remainder of page intentionally
left blank]

 

8

 

IN WITNESS WHEREOF, the Company and Holder have caused
this Option to be executed as of the date set forth above in Section 1 of
this Option.

 

 

	
   

  	
  NATIONAL HEALTH
  PARTNERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David M.
  Daniels

  
	
   

  	
   

  	
  David M. Daniels

  
	
   

  	
   

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
  AGREED AND
  ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Patricia S. Bathurst

  	
   

  	
   

  	
   

  
					

 

9

 

APPENDIX A

 

NOTICE OF EXERCISE

 

	
  To:

  	
  National Health
  Partners, Inc.

  
	
   

  	
  120 Gibraltar Road

  
	
   

  	
  Suite 107

  
	
   

  	
  Horsham, PA 19044

  
	
   

  	
  Attention: Chief Financial Officer

  

 

(1)           The undersigned hereby elects to purchase
                          
shares of Common Stock of the Company pursuant to the terms of the attached
Option, and tenders herewith payment of the purchase price for such shares in
full in accordance with the terms of the Option in the following manner (please
check one or more of the following choices):

 

o            in cash or by check;

 

o            an irrevocable and unconditional undertaking by a
creditworthy broker to deliver sufficient funds to pay the exercise price and
any required tax withholding;

 

o            a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver the exercise price and any required tax
withholding;

 

o            a promissory note;

 

o            a reduction of the number of shares of Common Stock
otherwise issuable under the Option by a number of shares of Common Stock
having a Fair Market Value equal to such aggregated exercise price; or

 

o            the following consideration:                                                                         .

 

(2)           In exercising the Option, the undersigned
hereby confirms and acknowledges that the shares of Common Stock to be issued
upon conversion thereof are being acquired solely for the account of the
undersigned for investment purposes only (unless such shares are subject to resale
pursuant to an effective registration statement or an exemption from
registration under applicable federal and state securities laws), and that the
undersigned will not offer, sell or otherwise dispose of any such shares of
Common Stock except under circumstances that will not result in a violation of
the Securities Act or any state securities laws.

 

(3)           Terms not otherwise defined in this
Notice of Exercise shall have the meanings ascribed to such terms in the
attached Option.

 

(4)           Please issue a certificate or
certificates representing said shares of Common Stock in the name of the
undersigned.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
  (Signature)Exhibit 4.18

 

FOURTH SUPPLEMENTAL INDENTURE

 

Fourth Supplemental Indenture (this “Supplemental
Indenture”), dated as of March 25, 2010, among DG Strategic IV, LLC;
DG Strategic V, LLC; DG Strategic VI, LLC, DG Strategic VII, LLC and DG
Strategic VIII, LLC (each hereinafter referred to as the “Guaranteeing
Subsidiary”), each a Tennessee limited liability company, as applicable,
and each a subsidiary of Dollar General Corporation, a Tennessee Corporation
(the “Issuer”), and U.S. Bank National Association, as successor trustee
(the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, each of Dollar General Corporation, Buck
Acquisition Corp., and the Guarantors (as defined in the Indenture referred to
below) has heretofore executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of July 6, 2007, providing for the issuance of an unlimited
aggregate principal amount of 10.625% Senior Notes due 2015 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain
circumstances the Guaranteeing Subsidiary shall execute and deliver to the
Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary
shall unconditionally guarantee all of the Issuer’s Obligations under the Notes
and the Indenture on the terms and conditions set forth herein and under the
Indenture (the “Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the
Indenture, the Trustee is authorized to execute and deliver this Supplemental
Indenture.

 

NOW THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties mutually covenant and agree for the equal and ratable
benefit of the Holders of the Notes as follows:

 

(1)           Capitalized
Terms.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

(2)           Agreement
to Guarantee.  The Guaranteeing
Subsidiary hereby agrees as follows:

 

(a)           Along with all Guarantors named in
the Indenture, to jointly and severally unconditionally guarantee to each Holder
of a Note authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of the
Indenture, the Notes or the obligations of the Issuer hereunder or thereunder,
that:

 

(i)            the principal of and interest,
premium and Special Interest, if any, on the Notes will be promptly paid in
full when due, whether at maturity, by acceleration, redemption or otherwise,
and interest on the overdue principal of and interest on the Notes, if any, if
lawful, and all other obligations of the Issuer to the Holders or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and

 

(ii)           in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, that same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise.  Failing payment when due
of any amount so

 

 

guaranteed or any
performance so guaranteed for whatever reason, the Guarantors and the
Guaranteeing Subsidiary shall be jointly and severally obligated to pay the
same immediately.  This is a guarantee of
payment and not a guarantee of collection.

 

(b)           The obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the Notes or the Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Issuer, any action
to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a guarantor.

 

(c)           The following is hereby waived:  diligence, presentment, demand of payment,
filing of claims with a court in the event of insolvency or bankruptcy of the
Issuer, any right to require a proceeding first against the Issuer, protest,
notice and all demands whatsoever.

 

(d)           This Guarantee shall not be
discharged except by complete performance of the obligations contained in the
Notes, the Indenture and this Supplemental Indenture, and the Guaranteeing
Subsidiary accepts all obligations of a Guarantor under the Indenture.

 

(e)           If any Holder or the Trustee is
required by any court or otherwise to return to the Issuer, the Guarantors
(including the Guaranteeing Subsidiary), or any custodian, trustee, liquidator
or other similar official acting in relation to either the Issuer or the
Guarantors, any amount paid either to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.

 

(f)            The Guaranteeing Subsidiary shall
not be entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of all obligations
guaranteed hereby.

 

(g)           As between the Guaranteeing
Subsidiary, on the one hand, and the Holders and the Trustee, on the other
hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article 6 of the Indenture for the purposes of
this Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (y) in the event of any declaration of acceleration of such
obligations as provided in Article 6 of the Indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guaranteeing Subsidiary for the purpose of this Guarantee.

 

(h)           The Guaranteeing Subsidiary shall
have the right to seek contribution from any non-paying Guarantor so long as
the exercise of such right does not impair the rights of the Holders under this
Guarantee.

 

(i)            Pursuant to Section 10.02 of
the Indenture, after giving effect to all other contingent and fixed
liabilities that are relevant under any applicable Bankruptcy or fraudulent
conveyance laws, and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under Article 10
of the Indenture, this new Guarantee shall be limited to the maximum amount
permissible such that the obligations of such Guaranteeing Subsidiary under
this Guarantee will not constitute a fraudulent transfer or conveyance.

 

2

 

(j)            This Guarantee shall remain in full
force and effect and continue to be effective should any petition be filed by
or against the Issuer for liquidation, reorganization, should the Issuer become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of the Issuer’s
assets, and shall, to the fullest extent permitted by law, continue to be
effective or be reinstated, as the case may be, if at any time payment and
performance of the Notes are, pursuant to applicable law, rescinded or reduced
in amount, or must otherwise be restored or returned by any obligee on the
Notes and Guarantee, whether as a “voidable preference”, “fraudulent transfer”
or otherwise, all as though such payment or performance had not been made.  In the event that any payment or any part
thereof, is rescinded, reduced, restored or returned, the Note shall, to the
fullest extent permitted by law, be reinstated and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.

 

(k)           In case any provision of this
Guarantee shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

(l)            This Guarantee shall be a general
senior obligation of such Guaranteeing Subsidiary, ranking equally in
right of payment with all existing and future senior Indebtedness of the
Guaranteeing Subsidiary but, to the extent of the value of the collateral, will
be effectively senior to all of the Guaranteeing Subsidiary’s unsecured senior
Indebtedness.  The Guarantees will be
senior in right of payment to all existing and future Subordinated Indebtedness
of each Guarantor.  The Notes will be structurally
subordinated to Indebtedness and other liabilities of Subsidiaries of the
Issuer that do not Guarantee the Notes, if any.

 

(m)          Each payment to be made by the
Guaranteeing Subsidiary in respect of this Guarantee shall be made without
set-off, counterclaim, reduction or diminution of any kind or nature.

 

(3)           Execution
and Delivery.  The Guaranteeing
Subsidiary agrees that the Guarantee shall remain in full force and effect
notwithstanding the absence of the endorsement of any notation of such
Guarantee on the Notes.

 

(4)           Merger,
Consolidation or Sale of All or Substantially All Assets.

 

(a)           Except
as otherwise provided in Section 5.01(c) of the Indenture, the
Guaranteeing Subsidiary may not consolidate or merge with or into or wind up
into (whether or not the Issuer or Guaranteeing Subsidiary is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its properties or assets, in one or more related
transactions, to any Person unless:

 

(i)            such Guarantor is the surviving
corporation or the Person formed by or surviving any such consolidation or
merger (if other than such Guarantor) or to which such sale, assignment,
transfer, lease, conveyance or other disposition will have been made is a
corporation, partnership, limited partnership, limited liability corporation or
trust organized or existing under the laws of the jurisdiction of organization
of such Guarantor, as the case may be, or the laws of the United States, any
state thereof, the District of Columbia, or any territory thereof (such
Guarantor or such Person, as the case may be, being herein called the “Successor
Person”);

 

3

 

(ii)           the Successor Person, if other than
such Guarantor, expressly assumes all the obligations of such Guarantor under
the Indenture and such Guarantor’s related Guarantee pursuant to supplemental
indentures or other documents or instruments in form reasonably satisfactory to
the Trustee;

 

(iii)          immediately after such transaction, no
Default exists; and

 

(iv)          the Issuer shall have delivered to the
Trustee an Officer’s Certificate, each stating that such consolidation, merger
or transfer and such supplemental indentures, if any, comply with the
Indenture; or

 

(v)           the transaction is made in compliance
with Section 4.09 of the Indenture.

 

(b)           Subject
to certain limitations described in the Indenture, the Successor Person will
succeed to, and be substituted for, such Guarantor under the Indenture and such
Guarantor’s Guarantee.  Notwithstanding
the foregoing, any Guarantor may (i) merge into or transfer all or part of
its properties and assets to another Guarantor or the Issuer, (ii) merge
with an Affiliate of the Issuer solely for the purpose of reincorporating the
Guarantor in the United States, any state thereof, the District of Columbia or
any territory thereof or (iii) convert into a corporation, partnership,
limited partnership, limited liability corporation or trust organized or
existing under the laws of the jurisdiction of organization of such Guarantor.

 

(5)           Releases.

 

The Guarantee of the Guaranteeing Subsidiary shall
be automatically and unconditionally released and discharged, and no further
action by the Guaranteeing Subsidiary, the Issuer or the Trustee is required
for the release of the Guaranteeing Subsidiary’s Guarantee, upon:

 

(1)           (A)  any sale, exchange or transfer (by merger or
otherwise) of the Capital Stock of such Guarantor (including any sale, exchange
or transfer), after which the applicable Guarantor is no longer a Restricted
Subsidiary or all or substantially all the assets of such Guarantor which sale,
exchange or transfer is made in compliance with the applicable provisions of
this Indenture;

 

(B)           the release or discharge of the guarantee by such
Guarantor of the Senior Credit Facilities or such other guarantee that resulted
in the creation of such Guarantee, except a discharge or release by or as a
result of payment under such guarantee;

 

(C)           the designation of any Restricted Subsidiary that is a
Guarantor as an Unrestricted Subsidiary in compliance with Section 4.07 of
the Indenture; or

 

(D)          the exercise by Issuer of its Legal Defeasance option or
Covenant Defeasance option in accordance with Article 8 of the Indenture
or the Issuer’s obligations under the Indenture being discharged in accordance
with the terms of the Indenture; and

 

(2)           such Guarantor delivering to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for in this Indenture relating to such transaction have been
complied with.

 

(6)           No
Recourse Against Others.  No
director, officer, employee, incorporator or stockholder of the Guaranteeing
Subsidiary shall have any liability for any obligations of the Issuer or the
Guarantors (including the Guaranteeing Subsidiary) under the Notes, any
Guarantees, the Indenture or 

 

4

 

this Supplemental Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and
releases all such liability.  The waiver
and release are part of the consideration for issuance of the Notes.

 

(7)           Governing
Law.  THIS SUPPLEMENTAL INDENTURE
WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

 

(8)           Counterparts.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same agreement.

 

(9)           Effect
of Headings.  The Section headings
herein are for convenience only and shall not affect the construction hereof.

 

(10)         The
Trustee.  The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Supplemental Indenture or for or in respect of the recitals
contained herein, all of which recitals are made solely by the Guaranteeing
Subsidiary.

 

(11)         Subrogation.  The Guaranteeing Subsidiary shall be
subrogated to all rights of Holders of Notes against the Issuer in respect of
any amounts paid by the Guaranteeing Subsidiary pursuant to the provisions of Section 2
hereof and Section 10.01 of the Indenture; provided that, if an
Event of Default has occurred and is continuing, the Guaranteeing Subsidiary
shall not be entitled to enforce or receive any payments arising out of, or
based upon, such right of subrogation until all amounts then due and payable by
the Issuer under the Indenture or the Notes shall have been paid in full.

 

(12)         Benefits
Acknowledged.  The Guaranteeing
Subsidiary’s Guarantee is subject to the terms and conditions set forth in the
Indenture.  The Guaranteeing Subsidiary
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by the Indenture and this Supplemental
Indenture and that the guarantee and waivers made by it pursuant to this
Guarantee are knowingly made in contemplation of such benefits.

 

(13)         Successors.  All agreements of the Guaranteeing Subsidiary
in this Supplemental Indenture shall bind its Successors, except as otherwise
provided in Section 2(k) hereof or elsewhere in this Supplemental
Indenture.  All agreements of the Trustee
in this Supplemental Indenture shall bind its successors.

 

[SIGNATURE PAGES FOLLOW]

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused
this Supplemental Indenture to be duly executed, all as of the date first above
written.

 

	
   

  	
  DG
  STRATEGIC IV, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Dollar
  General Corporation, Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Wade Smith

  
	
   

  	
   

  	
  Name:
  Wade Smith

  
	
   

  	
   

  	
  Title:   Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DG
  STRATEGIC V, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Dollar
  General Corporation, Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  /s/
  Wade Smiths

  
	
   

  	
   

  	
  Name:
  Wade Smith

  
	
   

  	
   

  	
  Title:   Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DG
  STRATEGIC VI, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Dollar
  General Corporation, Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Wade Smith

  
	
   

  	
   

  	
  Name:
  Wade Smith

  
	
   

  	
   

  	
  Title:   Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DG
  STRATEGIC VII, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Dollar
  General Corporation, Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Wade Smith

  
	
   

  	
   

  	
  Name:
  Wade Smith

  
	
   

  	
   

  	
  Title:   Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DG
  STRATEGIC VIII, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Dollar
  General Corporation, Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Wade Smith

  
	
   

  	
   

  	
  Name:
  Wade Smith

  
	
   

  	
   

  	
  Title:   Treasurer

  

 

6

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  as Successor Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Wally
  Jones

  
	
   

  	
   

  	
  Name:
  Wally Jones

  
	
   

  	
   

  	
  Title:
    Vice President

  

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]