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DOLLAR GENERAL CORP 8-K Report, Agreement Terminated (Oct 12, 2004)

Filed October 12, 2004For Securities:DG

Summary

Dollar General Corporation (DG) filed an 8-K on October 12, 2004, to report the resignation of its President and Chief Operating Officer, Lawrence V. Jackson, effective October 8, 2004. This event triggers the termination of Mr. Jackson's Employment Agreement and Supplemental Executive Retirement Plan (SERP). The filing details the terms of his departure, including entitlements to pro-rata salary, 401(k) and Compensation Deferral Plan balances, and options for his company car and life insurance conversion. Importantly, the report specifies that Mr. Jackson is not entitled to severance or continuation of health/disability benefits beyond the termination date, other than as legally required. Furthermore, the resignation results in the forfeiture of unvested restricted stock (16,000 shares) and stock options (150,000 shares). Vested stock options (50,000 shares) will also be forfeited if not exercised within 90 days post-termination. The company will not incur early termination penalties. The filing also outlines post-employment restrictive covenants including non-disclosure, non-interference with employees and customers, and non-competition provisions for a period of two years.

Key Highlights

  • 1Lawrence V. Jackson, President and COO, resigned effective October 8, 2004.
  • 2Jackson's Employment Agreement and Supplemental Executive Retirement Plan (SERP) are terminated.
  • 3Jackson will receive pro-rata salary and his 401(k)/Compensation Deferral Plan balances.
  • 4No severance or continuation of health/disability benefits beyond legal requirements are due to Jackson.
  • 5Jackson forfeits 16,000 unvested restricted shares and 150,000 unvested stock options.
  • 6Vested stock options (50,000) must be exercised within 90 days to avoid forfeiture.
  • 7Non-disclosure, non-interference, and non-competition clauses remain in effect for two years post-resignation.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the resignation of Dollar General's President and Chief Operating Officer, Lawrence V. Jackson, and to detail the implications of his departure on his employment agreements and compensation.

Mr. Jackson is entitled to his pro-rata base salary through his last day of employment, any amounts in his Dollar General 401(k) Plan and Compensation Deferral Plan accounts. He also has the option to purchase his company car and convert his executive life insurance policy. He is not entitled to severance or continuation of health/disability benefits beyond what is legally mandated.

Mr. Jackson forfeits the unvested portions of his restricted stock (16,000 shares) and stock options (150,000 shares). The vested portion of his stock options (50,000 shares) will be forfeited if he does not exercise them within 90 days of his resignation date.

Yes, Mr. Jackson is subject to post-employment restrictions for two years following his resignation. These include confidentiality obligations, non-interference with Dollar General's employees and customers, and a non-competition clause preventing him from working in a 'Competitive Position' within the states where Dollar General operates.