Exhibit 10(ii)
STATE OF NORTH CAROLINA AMENDMENT TO
EMPLOYMENT AGREEMENT
COUNTY OF MECKLENBURG
THIS AMENDMENT, made and entered into effective the 19th day
of August 1998, by and between FAMILY DOLLAR STORES, INC., a Delaware
corporation (hereinafter referred to as the "Company"); and
Xxxxxx X. Xxxxxx (hereinafter referred to as the "Employee");
W I T N E S S E T H:
WHEREAS, the Company and the Employee entered into an
Employment Agreement dated April 29, 1997, as amended by Amendment to
Employment Agreement dated August 28, 1997 (hereinafter referred to
as the "Agreement)"; and
WHEREAS, the Company and the Employee desire to amend the
Agreement;
NOW, THEREFORE, in consideration of the mutual covenants
herein contained, the Company and the Employee agree as follows:
1. Section 2 of the Agreement is deleted and the following
is substituted in lieu thereof:
"2. Employment. The Employee shall be employed by the
Company and any Affiliate in the capacity provided for in Paragraph 3
for the period commencing April 29, 1997, (the "Commencement Date"),
and ending on August 28, 1999, or upon the termination of this
Agreement as provided in Paragraph 6."
2. The first sentence of Section 3 of the Agreement is
deleted and the following sentence is substituted in lieu
thereof:
"The Employee shall be employed as President and Chief
Executive Officer of the Company and shall perform such reasonable
duties and responsibilities as the Chairman of the Board or Board of
Directors of the Company or the Executive Committee of the Board of
Directors of the Company may, from time to time, assign to the
Employee."
3. The first paragraph of Section 5.01 of the Agreement is
deleted and the following paragraph is substituted in
lieu thereof:
"5.01. In consideration of the services to be rendered by
the Employee pursuant to this Agreement, the Company shall pay, or
cause to be paid, to the Employee a weekly base salary (i) from the
Commencement Date to August 31, 1997, of $5,769.24 ($300,000.00
per annum), (ii) from September 1, 1997, to August 19, 1998, of
$6,250.00 ($325,000.00 per annum), and (iii) from August 20, 1998,
to August 28, 1999, of $7,211.54 ($375,000.00 per annum)."
4. Subparagraphs (a) and (b) of Section 5.02 of the
Agreement are deleted and the following subparagraphs are
substituted in lieu thereof:
"5.02. In addition, the Employee shall be entitled to:
(a) Participate in the Company's Target Bonus Plan,
as it may be amended or modified in any respect, including
achievement of established goals, as President, for the fiscal years
commencing September 1, 1996, and September 1, 1997, and as President
and Chief Executive Officer for the fiscal year commencing August 30,
1998. The Target Bonus Plan generally will give the Employee the
opportunity to earn a bonus of up to fifty (50%) percent of the
Employee's base salary actually received for services on and after
April 29, 1997, through August 31, 1997, for the fiscal year ending
August 31, 1997, and up to fifty (50%) percent of the Employee's base
salary actually received for services on and after September 1, 1997,
through August 19, 1998, and up to seventy-five (75%) percent of the
Employee's base salary actually received for services on and after
August 20, 1998, through August 31, 1998, for the fiscal year ending
August 29, 1998, and up to seventy-five (75%) percent of the
Employee's base salary actually received for services on and after
August 30, 1998, through August 28, 1999, for the fiscal year ending
August 28, 1999, subject to the Company's achievement of certain
financial goals to be established, the Employee's performance, and
all terms and conditions of the Target Bonus Plan as in effect for
each such fiscal year; provided that the amount of bonus paid may
not be increased by the annual individual performance rating of the
Employee by the Chairman of the Board. The Employee acknowledges
that he has received a copy of the form of the Target Bonus Plan
and Bonus Conditions and is familiar with the terms and conditions
thereof. Nothing contained herein shall limit the Company's right
to alter, amend or terminate the Target Bonus Plan at any time for
any reason. The Employee further acknowledges that, as provided in
the Target Bonus Plan, in the event the Employee is not employed by
the Company, for whatever reason, at the time the bonus for the
fiscal year is customarily paid in October or November following
the end of the fiscal year, the Employee will not be entitled to
receive the bonus.
(b) Take fifteen days (exclusive of Saturdays,
Sundays and paid Company holidays) of vacation during the twelve
month periods commencing May 1, 1997, and May 1, 1998. For the
period from May 1, 1999, through the end of the term of this
Agreement on August 28, 1999, five days of vacation may be taken.
Vacation time will accrue ratably during the course of said periods
and cannot be accumulated from year to year."
5. All other terms and provisions of the Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
in triplicate, all as of the day and year first above written.
FAMILY DOLLAR STORES, INC.
Attest:
By XXXX XXXXXX
XXXX XXXXXX
Chairman of the Board
XXXXXX X. XXXXXXX, XX.
XXXXXX X. XXXXXXX, XX.
Secretary
(Corporate Seal)
XXXXXX X. XXXXXX (SEAL)
XXXXXX X. XXXXXX
Witness:
XXXXX X. BARRIER
XXXXX X. BARRIER
