RESTRICTED STOCK AGREEMENT
DOLLAR GENERAL CORPORATION
This Agreement is made and entered into as of the 2nd day of April, 2003, by and between DOLLAR GENERAL CORPORATION, a Tennessee corporation (the “Company”), and XXXXX X. XXXXXX, Chief Executive Officer of the Company (the “Employee”).
WHEREAS, the Company has agreed to grant to the Employee Seventy-Eight Thousand Eight Hundred Sixty-Five (78,865) shares of restricted Company common stock (the “Restricted Stock”) pursuant to the terms of an Employment Agreement, dated as of April 2, 2003, by and between the Company and the Employee (the “Employment Agreement”); and
WHEREAS, the agreement to grant the Restricted Stock was a material inducement to the Employee’s entering into the Employment Agreement; and
WHEREAS, the Employment Agreement contemplates the execution of an agreement evidencing the Restricted Stock grant; and
WHEREAS, although the Restricted Stock is not being granted under or pursuant to the Company’s 1998 Stock Incentive Plan (the “Plan”), the terms of such Plan shall apply to the Restricted Stock to the extent such Plan terms do not conflict with the terms of the Employment Agreement.
NOW, THEREFORE, for and in consideration of the premises and other good and valuable consideration, including the services to be rendered to the Company by the Employee, the Company does hereby grant the Restricted Stock to the Employee, and the Employee accepts such Restricted Stock, on the following terms and conditions:
(1)
Grant of Restricted Stock. The Company hereby grants to the Employee on the date hereof, out of the Company’s authorized and unissued shares, Seventy-Eight Thousand Eight Hundred Sixty-Five (78,865) shares of Restricted Stock, subject to all the restrictions, limitations and other terms and provisions of the Employment Agreement, the Plan (solely to the extent such terms do not conflict with the terms of the Employment Agreement) and this Agreement. The Company shall cause such Restricted Stock to be issued by the Company’s stock transfer agent who will release such Restricted Stock to the Employee solely upon the written instructions of the Company. The Company shall maintain physical custody of the certificate(s) representing the Restricted Stock.
(2)
Restrictions. Until the Restricted Stock vests, the Restricted Stock shall be subject to the prohibitions and restrictions on transfer set forth herein and in the Plan (the “Restrictions”). The Employee shall have all of the rights of a shareholder of the Company, including the right to vote the shares and to receive any cash dividends. Stock dividends or stock splits issued with respect to the Restricted Stock shall be treated as additional shares of Restricted Stock that are subject to the same restrictions, and all other terms and conditions that apply to the shares on which such dividends are paid or additional shares are issued.
(3)
Vesting. Except as may be provided in the Employment Agreement in cases of death, Disability (as defined in the Employment Agreement) or termination of employment, the Restricted Stock, subject to all the restrictions, limitations and other terms and provisions of the Employment Agreement, the Plan and this Agreement, shall vest and the Restrictions shall lapse in accordance with the following schedule:
Number of Shares
Vesting Date
15,773
April 2, 2004
15,773
April 2, 2005
15,773
April 2, 2006
15,773
April 2, 2007
15,773
April 2, 2008
(4)
Non-transferability. Unvested Restricted Stock is not transferable by the Employee other than to a member of Employee’s Immediate Family (as defined in the Plan) or a trust for the benefit of Employee or a member of his Immediate Family (as defined in the Plan), or by will or the laws of descent and distribution, or as otherwise provided from time to time in the Plan.
(5)
Agreement Subject to Employment Agreement and Plan. This Agreement does not undertake to express all conditions, terms and provisions of the Employment Agreement and the Plan. The grant of the Restricted Stock is subject in all respects to all of the restrictions, limitations and other terms and provisions of the Employment Agreement and the Plan, each of which, by this reference, are incorporated herein to the same extent as if copied verbatim. Where the terms of the Plan conflict with the terms of the Employment Agreement, the terms of the Employment Agreement shall govern and take precedence in all cases. The Company and the Employee hereby acknowledge, confirm and agree that the Restricted Stock is not granted under or pursuant to the terms of the Plan and the terms of the Plan shall govern the Restricted Stock as provided herein solely as a contractual convenience.
(6)
Tax Withholding and Section 83(b) Elections. At the time the Employee shall become subject to federal income taxation with respect to the Restricted Stock (normally upon vesting, unless the Employee files an election under Section 83(b) of the Code), the Employee shall pay to the Company the amount of any Federal, state, local and other taxes required to be withheld by the Company with respect to the Restricted Stock. If the Employee files an election under Section 83(b) of the Code with the Internal Revenue Service to include the fair market value of any shares of Restricted Stock in gross income while they are still subject to the Restrictions, the Employee shall promptly furnish to the Company a copy of such election. The Company may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all Federal, state, local and other taxes required by law to be withheld upon the vesting of the Restricted Stock.
(7)
Acceptance of Restricted Stock. The Employee hereby accepts the Restricted Stock subject to all the restrictions, limitations and other terms and provisions of the Employment Agreement, the Plan and this Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the day and year first above written.
DOLLAR GENERAL CORPORATION
By: /s/ Xxxxxxx X. Buffington______________
Name: Xxxxxxx X. Buffington______________
Title: Sr VP, HR and Strategic Planning_____
XXXXX X. XXXXXX
/s/ Xxxxx X. Perdue_______________________
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