8-KMaterial AgreementsExhibits & Filings

DOLLAR GENERAL CORP 8-K Report, Material Agreement (Oct 18, 2005)

Filed October 18, 2005For Securities:DG

Summary

This Form 8-K filing by Dollar General Corporation on October 18, 2005, primarily announces a material definitive agreement concerning the retirement of Cal Turner, Jr., an influential figure in the company's history. Mr. Turner, who held significant leadership roles including CEO and Chairman, and beneficially owns over 5% of the company's stock, is retiring as an employee advisor to the Board effective October 31, 2005. This agreement outlines a series of post-retirement arrangements that acknowledge his contributions and ensure a continued, albeit non-executive, connection with the company and its charitable foundation. The key terms of the retirement agreement include a $1 million lump sum payment, reimbursement for legal costs, and continuation of certain benefits such as car ownership and access to a company-provided car. Importantly, Mr. Turner will be named Honorary Chairman Emeritus, will serve as Chairman of the Dollar General Literacy Foundation for at least three years, and is subject to a three-year non-compete agreement. Investors should note the financial implications of these payments and the strategic value of maintaining a relationship with a significant shareholder and former leader through these emeritus and foundation roles, while also being aware of the non-compete clause.

Key Highlights

  • 1Dollar General Corporation entered into a retirement agreement with Cal Turner, Jr., a significant shareholder and former executive, effective October 31, 2005.
  • 2Mr. Turner, who owns over 5% of the company's stock, will receive a $1 million lump sum payment and reimbursement for up to $100,000 in legal/consulting fees.
  • 3He will be appointed Honorary Chairman Emeritus of the Company.
  • 4Mr. Turner will serve as Chairman of the Dollar General Literacy Foundation for at least a 3-year term, with the company providing office support.
  • 5A 3-year non-compete agreement is a key component of the retirement arrangement.
  • 6The agreement includes provisions for the transfer of a company car, continuation of season tickets for Mr. Turner's use, and access to the company's voicemail system for one year.
  • 7Mr. Turner has a legal right to revoke the agreement until October 21, 2005.

Frequently Asked Questions

The main purpose of this 8-K filing is to report a material definitive agreement regarding the retirement of Cal Turner, Jr., a significant figure in Dollar General's history and a major shareholder.

Upon his retirement, Cal Turner, Jr. will receive a lump sum payment of $1 million, reimbursement for up to $100,000 in legal and/or consulting fees, and a tax 'gross up' to cover federal income and payroll taxes related to these payments. He will also retain ownership of his company-provided car.

After retiring as an employee advisor, Mr. Turner will be named Honorary Chairman Emeritus. He will also serve as Chairman of the Dollar General Literacy Foundation for at least a three-year term.

Yes, Mr. Turner has agreed to a 3-year non-compete agreement with Dollar General Corporation as part of the retirement arrangement.