Dollar General 2006 Annual Report Download - page 139

Download and view the complete annual report

Please find page 139 of the 2006 Dollar General annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 165

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165

termination date or any state in which we have specific plans to open stores within 6
months of that date. For this purpose, “competitive position” means any employment,
consulting, advisory, directorship, agency, promotional or independent contractor
arrangement between Mr. Perdue and any person engaged wholly or in material part
in the business in which we are engaged, including but not limited to Wal-Mart,
Target, K-Mart, Walgreen’s, Rite-Aid, CVS, Family Dollar Stores, Fred’ s, the 99
Cents Stores and Dollar Tree Stores, or any person then planning to enter the deep
discount consumable basics retail business, if Mr. Perdue is required to perform
services for that person which are substantially similar to those he provided or
directed at any time while employed by us.
• Mr. Perdue may not engage in any communications which disparage Dollar General
or interfere with our existing or prospective business relationships.
Payments Upon Termination Due to Retirement
In the event of retirement, in addition to the items identified under “Payments Regardless
of Manner of Termination” above, all unvested equity grants will be forfeited, vested stock
options generally may be exercised for 3 years from the service termination date unless the
options expire earlier, and vested RSUs will settle in due course. To be entitled to the extended
option exercise period, the retirement must occur on or after the NEO reaches the age of 65 or,
with our express consent, prior to age 65 in accordance with any applicable early retirement
policy then in effect or as may be approved by our Compensation Committee. The enhancement
of Mr. Perdue’ s SERP benefit upon retirement is discussed above following the Pension Benefits
Table.
Payments Upon Termination Due to Death or Disability
In the event of death or disability, in addition to the items identified under “Payments
Regardless of Manner of Termination” above:
• With respect to each NEO other than Mr. Perdue, all unvested equity grants will be
forfeited, vested stock options generally may be exercised for 3 years from the service
termination date unless the options expire earlier, and vested RSUs will settle in due
course.
• With respect to Mr. Perdue, the vesting of all equity grants will accelerate, vested
stock options may be exercised for 1 year from the date of death or, in the event of
disability, for 3 years from the service termination date, in each case unless the
options expire earlier, and vested RSUs will settle in due course.
• In the event of termination due to disability:
√ We treat Mr. Perdue as employed, solely for purposes of his non-qualified
defined benefit pension plan, or SERP, during the period of disability until he
137