Dollar General 2008 Annual Report Download - page 156

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In the event of death, each named executive officer’ s beneficiary will receive payments
under our group life insurance program in an amount, up to a maximum of $3 million, equal to
2.5 times the named executive officer’ s annual base salary. We have excluded from the tables
below amounts that the named executive officer would receive under our disability insurance
program since the same benefit level is provided to all of our salaried employees. The named
executive officer’ s CDP/SERP Plan benefit also becomes fully vested (to the extent not already
vested) upon his or her death and is payable in a lump sum within 60 days after the end of the
calendar quarter in which the named executive officer’ s death occurs.
In the event of disability, each named executive officer’ s CDP/SERP Plan benefit
becomes fully vested (to the extent not already vested) and is payable in a lump sum within
60 days after the end of the calendar quarter in which we receive notification of the
determination of the named executive officer’ s disability by the Social Security Administration.
In addition to the foregoing payments and benefits, in the event of Mr. Dreiling’ s death or
termination of employment due to disability, any then unvested shares of his 890,000 restricted
shares will vest. In the event of Mr. Dreiling’ s termination of employment due to disability, he
will also be entitled to receive any incentive bonus accrued in respect of any of our previously
completed fiscal years but unpaid as of the date of his termination. In the event of his termination
of employment due to his disability, he will also receive a lump sum cash payment, payable at
the time annual bonuses are paid to our other senior executives, equal to a pro-rata portion of his
annual incentive bonus, if any, that he would have been entitled to receive, if such termination
had not occurred, for the fiscal year in which his termination occurred.
In the event Mr. Bere’ s employment is terminated due to death or disability, he will also
be entitled to receive any incentive bonus accrued in respect of any of our previously completed
fiscal years but unpaid as of the date of such termination.
For purposes of the named executive officers’ employment agreements, other than Mr.
Dreiling’ s, “disability” means the employee must be disabled for purposes of our long-term
disability insurance plan. For purposes of Mr. Dreiling’ s employment agreement, “disability”
means he must be disabled for purposes of our long-term disability insurance plan or for
purposes of his portable long-term disability insurance policy. For purposes of the CDP/SERP
Plan, “disability” means total and permanent disability for purposes of entitlement to Social
Security disability benefits.
Payments Upon Voluntary Termination
The payments to be made to a named executive officer upon voluntary termination vary
depending upon whether the named executive officer resigns with or without “good reason” or
after our failure to offer to renew, extend or replace the named executive officer’ s employment
agreement under certain circumstances. For purposes of each named executive officer, “good
reason” generally means (as more fully described in the applicable employment agreement):