<html>
  <head>
    <title>
    </title>
<!-- Licensed to: bdbcb98-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>&#160;</div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
      <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
    </div>
    <div><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u><strong>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </strong></u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
      TO SECTION 13 OR 15(d) OF THE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      EXCHANGE ACT OF 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Date
      of
      report (Date of earliest event reported): </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 225pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">July
      6,
      2007</font></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>DOLLAR
      GENERAL CORPORATION </strong></font>
      <div>
        <hr style="COLOR: black" align="left" noshade size="1" width="100%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="33%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Tennessee</div>
            </td>
            <td width="33%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">001-11421</div>
            </td>
            <td width="33%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">61-0502302<font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="33%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(State
                or Other Jurisdiction</div>
            </td>
            <td width="33%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(Commission&#160;</div>
            </td>
            <td width="33%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(IRS
                Employer</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="33%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">of
                Incorporation)</div>
            </td>
            <td width="33%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">File
                Number)</div>
            </td>
            <td width="33%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Identification
                No.)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font>
        <div align="center">
          <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

              <tr bgcolor="white">
                <td width="50%" style="border-bottom: black thin solid;"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;100
                  Mission
                  Ridge, Goodlettsville, Tennessee</td>
                <td width="50%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">37072</div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td width="50%"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font>(Address
                  of Principal
                  Executive Offices)</td>
                <td width="50%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(Zip
                    Code)</div>
                </td>
              </tr>

          </table>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code:<u><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></u></font><u><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(615)
      855-4000&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></u><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">Not
      Applicable</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: black" align="left" noshade size="1" width="100%">
      </div><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em>see</em></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      General
      Instruction A.2.):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Wingdings">&#168;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Wingdings">&#168;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Wingdings">&#168;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Wingdings">&#168;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
      <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
        </div>
      </div>
    </div><br><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Introductory
      Note</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      July
      6, 2007, Dollar General Corporation, a Tennessee corporation (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Company</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      completed its merger (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Merger</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;)
      with
      Buck Acquisition Corp. (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Merger
      Sub</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      a
      wholly owned subsidiary of Buck Holdings, L.P. (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Parent</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      pursuant to the terms of the Agreement and Plan of Merger, dated as of March
      11,
      2007 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Merger
      Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      by
      and among Parent, Merger Sub and the Company. Parent and Merger Sub are
      controlled by investment funds affiliated with Kohlberg Kravis Roberts &amp; Co.
      L.P., </font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">GS
      Capital Partners, an affiliate of Goldman Sachs,</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      Citi
      Private Equity, and other equity co-investors (collectively, the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Investors</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;).
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Entry into a Material
      Definitive Agreement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>1.
      Senior Secured Term Loan Facility</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Overview</strong></em></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      July
      6, 2007, in connection with the Merger, the Company entered into a credit
      agreement and related security and other agreements, with Goldman Sachs Credit
      Partners L.P., Citigroup Global Markets&#160;Inc., Lehman Brothers Inc. and
      Wachovia Capital Markets, LLC, each as joint lead arranger and joint bookrunner,
      Citicorp North America, Inc., as administrative agent and collateral agent,
      Goldman Sachs Credit Partners L.P., as syndication agent, and Lehman Commercial
      Paper Inc. and Wachovia Bank, National Association, as documentation agents,
      consisting of a $2,300.0&#160;million senior secured term loan facility (the
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Term
      Loan Credit Facility</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;).
      The
      following is a summary of the material terms of the Term Loan Credit Facility
      and is qualified in its entirety by reference to the copy of the Term Loan
      Credit Facility that is filed as Exhibit 4.2 to this Current Report on Form
      8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      </font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Term
      Loan
      Credit Facility</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">
      consists
      of two tranches, one of which is a &#8220;first-loss&#8221; tranche, which, in certain
      circumstances, is subordinated in right of payment to the other tranche of
      the
</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Term
      Loan
      Credit Facility</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Company is the borrower under the Term Loan Credit Facility.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Term
      Loan Credit Facility provides that the Company has the right at any time to
      request up to $325.0&#160;million of incremental commitments under one or more
      incremental term loan facilities and/or asset-based revolving credit facilities.
      The lenders under the Term Loan Credit Facility are not under any obligation
      to
      provide any such incremental commitments and any such addition of or increase
      in
      commitments under the Term Loan Credit Facility will be subject to the Company&#8217;s
      not exceeding certain senior secured leverage ratios and certain other customary
      conditions precedent. The Company&#8217;s ability to obtain extensions of credit under
      these incremental commitments under the Term Loan Credit Facility is also
      subject to the same conditions as extensions of credit under the under the
      Term
      Loan Credit Facility.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Interest
      Rate and Fees</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Borrowings
      under the Term Loan Credit Facility bear interest at a rate equal to an
      applicable margin plus, at the Company&#8217;s option, either (a)&#160;a LIBOR rate
      adjusted for certain additional costs or (b)&#160;a base rate, in each case plus
      a spread. The applicable margin for borrowings is 2.75% with respect to LIBOR
      borrowings and 1.75% with respect to base-rate borrowings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Prepayments</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      credit agreement requires the Company to prepay outstanding term loans, subject
      to certain exceptions, with:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">50%
                of the Company&#8217;s annual excess cash flow (as defined in the Term Loan
                Credit Facility) commencing with the fiscal year ending on or about
                January 31, 2008 (which percentage will be reduced to 25% and 0%
                if the
                Company achieves and maintains a total net leverage ratio of 6.0
                to 1.0
                and 5.0 to 1.0, respectively);</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">100%
                of the net cash proceeds of all non-ordinary course asset sales or
                other
                dispositions of property in excess of $25.0 million and subject to
                the
                Company&#8217;s right to reinvest the proceeds;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">100%
                of the net cash proceeds of any incurrence of debt, other than proceeds
                from debt permitted under the credit
                agreement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      foregoing mandatory prepayments will be applied to the Term Loan Credit Facility
      as directed by the credit agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Company may voluntarily repay outstanding loans under the Term Loan Credit
      Facility at any time without premium or penalty, other than customary &#8220;breakage&#8221;
costs with respect to LIBOR loans.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Amortization</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Beginning
      September 30, 2009, the Company is required to repay installments on the loans
      under the Term Loan Credit Facility in equal quarterly principal amounts in
      an
      aggregate amount per annum equal to 1% of the total funded principal amount,
      with the balance payable on July 6, 2014.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Guarantee
      and Security</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Pursuant
      to a Guarantee, dated as of July 6, 2007, among the U.S. Guarantors (as defined
      below) and Citicorp North America, Inc. (filed as Exhibit 4.3 to this Current
      Report on Form 8-K), all obligations under the Term Loan Credit Facility are
      unconditionally guaranteed by substantially all of the Company&#8217;s existing and
      future domestic subsidiaries (excluding certain immaterial subsidiaries and
      certain subsidiaries designated by the Company under the credit agreement as
      &#8220;unrestricted subsidiaries&#8221;), referred to, collectively, as U.S.
      Guarantors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Pursuant
      to a Security Agreement and a Pledge Agreement, each dated as of July 6, 2007,
      each among the Company, the U.S. Guarantors and Citicorp North America, Inc.
      (filed as Exhibits 4.4 and 4.5, respectively, to this Current Report on Form
      8-K), all obligations under the Term Loan Credit Facility and the guarantees
      of
      those obligations will be secured by:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">a
                second-priority security interest in all existing and after-acquired
                inventory, accounts receivable, and other assets arising from such
                inventory and accounts receivable, of the Company and each U.S. Guarantor
                (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Revolving
                Facility Collateral&#8221;</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">),
                subject to certain exceptions;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">a
                first priority security interest in, and mortgages on, substantially
                all
                of the tangible and intangible assets of the Company and each U.S.
                Guarantor (other than the Revolving Facility Collateral);
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">a
                first-priority pledge of 100% of the capital stock held by the Company,
                or
                any of the Company&#8217;s domestic subsidiaries that are directly owned by us
                or one of the U.S. Guarantors and 65% of the voting capital stock
                of each
                of the Company&#8217;s existing and future foreign subsidiaries that are
                directly owned by the Company or one of the U.S.
                Guarantors.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Certain
      Covenants and Events of Default</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      credit agreement contains a number of covenants that, among other things,
      restrict, subject to certain exceptions, the Company&#8217;s ability to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">incur
                additional indebtedness;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">sell
                assets;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">pay
                dividends and distributions or repurchase the Company&#8217;s capital
                stock;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">make
                investments or acquisitions;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">repay
                or repurchase subordinated indebtedness (including the senior subordinated
                notes discussed below) and the senior notes discussed
                below;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">amend
                material agreements governing the Company&#8217;s subordinated indebtedness
                (including the senior subordinated notes discussed below) or the
                Company&#8217;s
                senior notes discussed below; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">change
                the Company&#8217;s lines of business.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      credit agreement for the Term Loan Credit Facility also contains certain
      customary affirmative covenants and events of default.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Certain
      Relationships </strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      lenders or their affiliates have in the past engaged, and may in the future
      engage, in transactions with and perform services, including commercial banking,
      financial advisory and investment banking services, for the Company and its
      affiliates in the ordinary course of business for which they have received
      or
      will receive customary fees and expenses. Funds controlled by GS Capital
      Partners, an affiliate of Goldman, Sachs &amp; Co. indirectly own approximately
      20.5% of the shares of the Company after the Merger on a fully diluted basis.
      Funds managed by Citigroup Private Equity LP, an affiliate of Citigroup Global
      Markets Inc. and Citigroup North America, Inc. indirectly own approximately
      6.8%
      of the shares of the Company after the Merger on a fully diluted basis. In
      connection with the Merger, Citigroup Global Markets Inc., Wachovia Capital
      Markets, LLC, Goldman, Sachs &amp; Co. and Lehman Brothers Inc. have provided
      financial advisory services to, and will receive financial advisory fees from,
      the Company, the Investors and their affiliates. Affiliates of the lenders
      acted
      as initial purchasers of </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">the
        notes
        issued under the Indentures described below and participated in other financing
        aspects relating to the Merger. Goldman, Sachs &amp; Co. acted as dealer manager
        for the tender offer for certain indebtedness refinanced in connection with
        the
        Merger. Messrs. Adrian Jones and Sumit Rajpal, who have become directors
        of the
        Company following the Merger, serve as directors of HealthMarkets, Inc. Mr.
        Jones also serves as a director of Burger King Holdings, Inc., Education
        Management Corporation and Signature Hospital, LLC. Mr. Rajpal also serves
        as a
        director of USI Holdings Corporation. All such entities are partly or wholly
        owned by an affiliate of Goldman, Sachs &amp; Co. </font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>2.
      Senior Secured Asset-Based Revolving Credit Facility</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Overview</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      July
      6, 2007, in connection with the Merger, the Company entered into an ABL credit
      agreement and related security and other agreements, with Goldman Sachs Credit
      Partners L.P., Citigroup Global Markets&#160;Inc., Lehman Brothers Inc. and
      Wachovia Capital Markets, LLC, each as joint lead arranger and joint bookrunner,
      CIT Capital Securities LLC, as lead arranger of the tranche A-1 loan facility,
      The CIT Group/Business Credit, Inc., as administrative agent, collateral agent,
      swingline lender and letter of credit issuer, Goldman Sachs Credit Partners
      L.P., as syndication agent, and Lehman Commercial Paper Inc. and Wachovia Bank,
      National Association, as documentation agents, consisting of a senior secured
      asset-based revolving credit facility of up to $1,125.0&#160;million (of which
      up to $350.0 million will be available for letters of credit), subject to
      borrowing base availability (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Asset-Based
      Credit Facility</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;).
      The
      following is a summary of the material terms of the Asset-Based Credit Facility
      and is qualified in its entirety by reference to the copy of the Asset-Based
      Credit Facility that is filed as Exhibit 4.6 to this Current Report on Form
      8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Company is the primary borrower under the Asset Based Credit Facility and,
      in
      addition, certain subsidiaries of the Company are designated as borrowers.
      The
      Asset Based Credit Facility includes borrowing capacity available for letters
      of
      credit and for short-term borrowings referred to as swingline
      loans.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Asset
      Based Credit Facility provides that the Company has the right at any time to
      request up to $325.0&#160;million of incremental commitments under one or more
      incremental term loan facilities and/or the Asset Based Credit Facility. The
      lenders under the Asset Based Credit Facility are not under any obligation
      to
      provide any such incremental commitments and any such addition of or increase
      in
      commitments under the Asset Based Credit Facility will be subject to the
      Company&#8217;s not exceeding certain senior secured leverage ratios and certain other
      customary conditions precedent. The Company&#8217;s ability to obtain extensions of
      credit under these incremental commitments under the Asset Based Credit Facility
      is also subject to the same conditions as extensions of credit under the Asset
      Based Credit Facility.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      amount from time to time available under the Asset Based Credit Facility
      (including in respect of letters of credit) shall not exceed the borrowing
      base.
      The borrowing base equals the sum of (i)&#160;85% of the net orderly liquidation
      value of all eligible inventory of the Company and each guarantor thereunder
      and
      (ii)&#160;90% of all accounts receivable and credit/debit card receivables of
      the Company and each co-borrower and each guarantor thereunder, in each case,
      subject to a reserve equal to the principal amount of the Company 8 5/8% notes
      due 2010 that remain outstanding at any time on or after the closing date and
      other customary reserves and eligibility criteria to be agreed. An additional
      10% to 12% of the net orderly liquidation value of all eligible inventory of
      the
      Company and each guarantor thereunder is made available to the Company in the
      form of a &#8220;last out&#8221; tranche in respect of which the Company may borrow up to a
      maximum </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">amount
      of
      $125.0 million. Borrowings under the Asset Based Credit Facility will be
      incurred first under the &#8220;last out&#8221; tranche, and no borrowings will be permitted
      under any other tranche until the &#8220;last out&#8221; tranche is fully utilized.
      Repayments of the Asset Based Credit Facility will be applied to the &#8220;last out&#8221;
tranche only after all other tranches have been fully paid down. The borrowings
      incurred under the &#8220;last out&#8221; tranche will be at a higher interest rate, as
      described under &#8220;Interest Rate and Fees&#8221; below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Interest
      Rate and Fees</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Borrowings
      under the Asset Based Credit Facility bear interest at a rate equal to an
      applicable margin plus, at the Company&#8217;s option, either (a)&#160;a LIBOR rate
      adjusted for certain additional costs or (b)&#160;a base rate, in each case plus
      a spread. The initial applicable margin for borrowings (except in the case
      of
      the &#8220;last out&#8221; tranche described above) is 1.50% with respect to LIBOR
      borrowings and 0.50% with respect to base-rate borrowings and for any &#8220;last out&#8221;
borrowings is 2.25% with respect to LIBOR borrowings and 1.25% with respect
      to
      base-rate borrowings. The applicable margins for borrowings under the Asset
      Based Credit Facility (except in the case of &#8220;last out&#8221; borrowings) are subject
      to adjustment each quarter based on average daily excess availability under
      the
      Asset Based Credit Facility.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      addition to paying interest on outstanding principal under the Asset Based
      Credit Facility, the Company is required to pay a commitment fee to the lenders
      under the Asset Based Credit Facility in respect of the unutilized commitments
      thereunder. The initial commitment fee rate is 0.375% per annum. The commitment
      fee rate will be reduced (except with regard to the &#8220;last out&#8221; tranche) to 0.25%
      per annum at any time that excess availability under the Asset Based Credit
      Facility is equal to or less than 50% of the aggregate commitments under the
      Asset Based Credit Facility. The Company must also pay customary letter of
      credit fees.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Prepayments</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      credit agreement for the Asset Based Credit Facility requires the Company to
      prepay the Asset Based Credit Facility, subject to certain exceptions,
      with:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">100%
                of the net cash proceeds of all non-ordinary course asset sales or
                other
                dispositions of Revolving Facility Collateral (as defined below)
                in excess
                of $1.0 million and subject to the Company&#8217;s right to reinvest the
                proceeds; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">to
                the extent such extensions of credit exceed the then current borrowing
                base (as defined in the credit agreement for the Asset Based Credit
                Facility).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Company may voluntarily repay outstanding loans under the Asset Based Credit
      Facility at any time without premium or penalty, other than customary &#8220;breakage&#8221;
costs with respect to LIBOR loans.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Letters
      of Credit</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">$350.0
      million of the Company&#8217;s Asset Based Credit Facility is available for letters of
      credit.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Amortization</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">There
      is
      no amortization under the Asset Based Credit Facility. The entire principal
      amounts (if any) outstanding under the Asset Based Credit Facility are due
      and
      payable in full at maturity, on July 6, 2013, on which day the commitments
      thereunder will terminate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Security</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Pursuant
      to a Security Agreement, dated as of July 6, 2007, among the Company, the
      subsidiary borrowers and The CIT Group/Business Credit, Inc. (filed as Exhibit
      4.7 to this Current Report on Form 8-K), all obligations under the Asset Based
      Credit Facility are secured by all existing and after-acquired inventory,
      accounts receivable, and other assets arising from such inventory and accounts
      receivable, of the Company and each subsidiary borrower (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Revolving
      Facility Collateral</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      subject to certain exceptions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Certain
      Covenants and Events of Default</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      credit agreement contains a number of covenants that, among other things,
      restrict, subject to certain exceptions, the Company&#8217;s ability to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">incur
                additional indebtedness;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">sell
                assets;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">pay
                dividends and distributions or repurchase the Company&#8217;s capital
                stock;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">make
                investments or acquisitions;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">repay
                or repurchase subordinated indebtedness (including the senior subordinated
                notes discussed below) and the senior notes discussed
                below;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">amend
                material agreements governing the Company&#8217;s subordinated indebtedness
                (including the senior subordinated notes discussed below) or the
                Company&#8217;s
                senior notes discussed below; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">change
                the Company&#8217;s lines of business.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Although
      the Asset Based Credit Facility does not require the Company to comply with
      any
      financial ratio maintenance covenants, if it has less than $75.0 million of
      excess availability under the Asset Based Credit Facility at any time, the
      Company is not permitted to borrow any additional amounts thereunder unless
      the
      Company meets a financial ratio set forth in the Asset Based Credit
      Facility.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      credit agreement for the </font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Asset
      Based Credit Facility </font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">also
      contains certain customary affirmative covenants and events of
      default.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">See
      also
&#8220;Certain Relationships&#8221; under &#8220;1. Senior Secured Term Loan Facility&#8221; above.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>3.&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Indentures
                and Senior Notes due 2015 and Senior Subordinated Toggle Notes due
                2017</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Overview</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      July
      6, 2007, Merger Sub issued $1,175,000,000 aggregate principal amount of 10.625%
      senior notes due 2015 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>senior
      notes</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      which
      mature on July 15, 2015 pursuant to an indenture, dated as of July 6, 2007
      (the
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Senior
      Indenture</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      among
      the Company, Merger Sub, the guarantors party thereto and Wells Fargo Bank,
      National Association, as trustee, and $725,000,000 aggregate principal amount
      of
      11.875%/12.625% senior subordinated toggle notes due 2017 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>senior
      subordinated notes</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      which
      mature on July 15, 2017, pursuant to an indenture, dated as of July 6, 2007
      (the
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Senior
      Subordinated Indenture</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      among
      the Company, Merger Sub, the guarantors party thereto and Wells Fargo Bank,
      National Association, as trustee. The senior notes and the senior subordinated
      notes are collectively referred to herein as the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>notes</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">.&#8221;
The
      Senior Indenture and the Senior Subordinated Indenture are collectively referred
      to herein as the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>indentures</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">.&#8221;
The
      following is a summary of the material terms of the indentures and is qualified
      in its entirety by reference to the copies of the Senior Indenture and the
      Senior Subordinated Indenture that are filed as Exhibits 4.8 and 4.9,
      respectively, to this Current Report on Form 8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Interest
      on the senior subordinated notes will be payable in cash. Interest on the notes
      is payable on January 15 and July 15 of each year, commencing on January 15,
      2008. Cash interest on the senior subordinated notes will accrue at a rate
      of
      11.875% per annum, and PIK interest (as such term is defined below) will accrue
      at a rate of 12.625% per annum. The initial interest payment on the toggle
      notes
      will be payable in cash. For any interest period thereafter through July 15,
      2011, the Company may elect to pay interest on the toggle notes (i) in cash,
      (ii) by increasing the principal amount of the toggle notes or issuing new
      toggle notes (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>PIK
      interest</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;)
      or
      (iii) by paying interest on half of the principal amount of the toggle notes
      in
      cash interest and half in PIK interest. After July 15, 2011, all interest on
      the
      toggle notes will be payable in cash. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      following is a brief description of the terms of the notes and the Senior
      Indenture and Senior Subordinated Indenture. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Ranking</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      senior notes are the Company&#8217;s senior unsecured obligations and rank senior in
      right of payment to any future subordinated indebtedness; rank equally in right
      of payment with all of the Company&#8217;s existing and future senior indebtedness;
      are effectively subordinated to all of the Company&#8217;s existing and future secured
      debt (including obligations under the new credit facilities described above)
      to
      the extent of the value of the collateral security such debt; and are
      structurally subordinated to all existing and future indebtedness and other
      liabilities of the Company&#8217;s non-guarantor subsidiaries (other than indebtedness
      and liabilities owed to the Company or one of its subsidiary guarantors (as
      such
      term is defined below)). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      senior subordinated notes are the Company&#8217;s unsecured senior subordinated
      obligations and are subordinated in right of payment to any existing and future
      senior debt, including the new credit facilities described above and the senior
      notes; rank equally in right of payment with all of the Company&#8217;s existing and
      future senior subordinated debt and other obligations that are not expressly
      made senior by the terms of the senior subordinated notes; are effectively
      subordinated to all of the Company&#8217;s existing and future secured debt (including
      obligations under the new credit facilities described above) to the extent
      of
      the value of the collateral security such debt; and are structurally
      subordinated to all existing and future indebtedness and other liabilities
      of
      the Company&#8217;s non-guarantor subsidiaries (other than indebtedness and
      liabilities owed to the Company or one of its subsidiary guarantors (as such
      term is defined below)). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Guarantees
      </strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      notes
      are fully and unconditionally guaranteed by each of the Company&#8217;s existing and
      future direct or indirect wholly owned domestic subsidiaries that guarantees
      the
      Company&#8217;s obligations under its senior secured credit facilities. Such
      subsidiary guarantors are collectively referred to herein as the &#8220;subsidiary
      guarantors,&#8221; and such subsidiary guarantees are collectively referred to herein
      as the &#8220;subsidiary guarantees.&#8221; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Each
      subsidiary guarantee of the senior notes ranks senior in right of payment to
      all
      existing and future subordinated indebtedness of the subsidiary guarantor;
      ranks
      equally in right of payment with all existing and future senior indebtedness
      of
      the subsidiary guarantor; is effectively subordinated in right of payment to
      all
      of the applicable subsidiary guarantor&#8217;s existing and future secured debt
      (including the applicable subsidiary guarantor&#8217;s guarantee under the new credit
      facilities described above) to the extent of the value of the collateral
      securing such indebtedness and is effectively subordinated in right of payment
      to all existing and future indebtedness and other liabilities of any subsidiary
      of a subsidiary guarantor that is not also a guarantor of the notes.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Each
      subsidiary guarantee of the senior subordinated notes will be subordinated
      in
      right of payment to all existing and future senior indebtedness of the
      subsidiary guarantor; ranks equally in right of payment with all existing and
      future senior subordinated indebtedness of the subsidiary guarantor; is
      effectively subordinated in right of payment to all of the applicable subsidiary
      guarantor&#8217;s existing and future secured debt (including the applicable
      subsidiary guarantor&#8217;s guarantee under the new credit facilities described
      above) to the extent of the value of the collateral securing such indebtedness
      and is effectively subordinated in right of payment to all existing and future
      indebtedness and other liabilities of any subsidiary of a subsidiary guarantor
      that is not also a guarantor of the notes. Any subsidiary guarantee of the
      notes
      will be released in the event such subsidiary guarantee is released under the
      senior secured credit facilities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Optional
      Redemption</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em>Senior
      Notes</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">At
      any
      time prior to July 15, 2011, the Company may redeem all or a part of the senior
      notes, at a redemption price equal to 100% of the principal amount of the senior
      notes redeemed plus the greater of (1) 1.0% of the principal amount of the
      senior notes; and (2) the excess, if any, of (a) the present value at such
      redemption date of (i) the redemption price of the senior notes at July 15,
      2011
      (as set forth in the table appearing below), plus (ii) all required interest
      payments due on the senior notes through July 15, 2011 (excluding accrued but
      unpaid interest to such redemption date), computed using a discount rate equal
      to the applicable treasury rate as of such redemption date plus 50 basis points;
      over (b) the then outstanding principal amount of the senior notes (as of,
      and
      plus accrued and unpaid interest and additional interest, if any, to, the date
      of redemption), subject to the rights of holders of senior notes on the relevant
      record date to receive interest due on the relevant interest payment date.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      and
      after July 15, 2011, the Company may redeem the senior notes, in whole or in
      part, at the redemption prices (expressed as percentages of the principal amount
      of the senior notes to be redeemed) set forth below, plus accrued and unpaid
      interest thereon and additional interest, if any, to the applicable redemption
      date, subject to the right of holders of senior notes of record on the relevant
      record date to receive interest due on the relevant interest payment date,
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">if
      redeemed during the twelve month period beginning on July 15 of each of the
      years indicated below: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><u><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Year</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font></u></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Percentage</u></font></div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td align="left" valign="bottom" width="71%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2011</font></div>
            </td>
            <td align="right" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">105.313%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2012</font></div>
            </td>
            <td align="right" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">102.656%</font></div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td align="left" valign="bottom" width="71%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2013
                and thereafter</font></div>
            </td>
            <td align="right" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">100.000%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      addition, until July 15, 2010, the Company may, at its option, on one or more
      occasions redeem up to 35% of the aggregate principal amount of senior notes
      at
      a redemption price equal to 110.625% of the aggregate principal amount thereof,
      plus accrued and unpaid interest thereon and special interest, if any, to the
      applicable redemption date, subject to the right of holders of senior notes
      of
      record on the relevant record date to receive interest due on the relevant
      interest payment date, with the net cash proceeds of one or more equity
      offerings; provided that at least 50% of the sum of the original aggregate
      principal amount of senior notes issued under the Senior Indenture and the
      original principal amount of any additional notes that are senior notes issued
      under the Senior Indenture after the issue date remains outstanding immediately
      after the occurrence of each such redemption; provided further that each such
      redemption occurs within 90 days of the date of closing of each such equity
      offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em>Senior
      Subordinated Notes</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">At
      any
      time prior to July 15, 2012, the Company may redeem all or a part of the senior
      subordinated notes, at a redemption price equal to 100% of the principal amount
      of the senior subordinated notes redeemed plus the greater of (1) 1.0% of the
      principal amount of the senior subordinated notes; and (2) the excess, if any,
      of (a) the present value at such redemption date of (i) the redemption price
      of
      the senior subordinated notes at July 15, 2012 (as set forth in the table
      appearing below), plus (ii) all required interest payments due on the senior
      subordinated notes through July 15, 2012 (excluding accrued but unpaid interest
      to such redemption date), computed using a discount rate equal to the applicable
      treasury rate as of such redemption date plus 50 basis points; over (b) the
      then
      outstanding principal amount of the senior subordinated notes (as of, and plus
      accrued and unpaid interest and additional interest, if any, to, the date of
      redemption), subject to the rights of holders of senior subordinated notes
      on
      the relevant record date to receive interest due on the relevant interest
      payment date. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      and
      after July 15, 2012, the Company may redeem the senior subordinated notes,
      in
      whole or in part, at the redemption prices (expressed as percentages of the
      principal amount of the senior subordinated notes to be redeemed) set forth
      below, plus accrued and unpaid interest thereon and additional interest, if
      any,
      to the applicable redemption date, subject to the right of holders of senior
      subordinated notes of record on the relevant record date to receive interest
      due
      on the relevant interest payment date, if redeemed during the twelve month
      period beginning on July 15 of each of the years indicated below: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><u><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Year</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font></u></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Percentage</u></font></div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td align="left" valign="bottom" width="71%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2012</font></div>
            </td>
            <td align="right" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">105.938%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2013</font></div>
            </td>
            <td align="right" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">102.958%</font></div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td align="left" valign="bottom" width="71%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2014</font></div>
            </td>
            <td align="right" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">101.979%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2015
                and thereafter</font></div>
            </td>
            <td align="right" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">100.000%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      addition, until July 15, 2010, the Company may, at its option, on one or more
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">occasions
        redeem up to 35% of the aggregate principal amount of senior subordinated
        notes
        at a redemption price equal to 111.875% of the aggregate principal amount
        thereof, plus accrued and unpaid interest thereon and special interest, if
        any,
        to the applicable redemption date, subject to the right of holders of senior
        subordinated notes of record on the relevant record date to receive interest
        due
        on the relevant interest payment date, with the net cash proceeds of one
        or more
        equity offerings; provided that at least 50% of the sum of the original
        aggregate principal amount of senior subordinated notes issued under the
        Senior
        Subordinated Indenture and the original principal amount of any additional
        notes
        that are senior subordinated notes issued under the Senior Subordinated
        Indenture after the issue date remains outstanding immediately after the
        occurrence of each such redemption; provided further that each such redemption
        occurs within 90 days of the date of closing of each such equity
        offering.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Change
      of Control</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Upon
      the
      occurrence of a change of control, which is defined in the Indentures each
      holder of the notes has the right to require the Company to repurchase some
      or
      all of such holder&#8217;s notes at a purchase price in cash equal to 101% of the
      principal amount thereof, plus accrued and unpaid interest, if any, to the
      repurchase date. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Covenants
      </strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Indentures contain covenants limiting, among other things, the Company&#8217;s ability
      and the ability of its restricted subsidiaries to (subject to certain
      exceptions): </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">incur
                additional debt, issue disqualified stock or issue certain preferred
                stock; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">pay
                dividends on or make certain distributions and other restricted payments;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">create
                certain liens or encumbrances; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">sell
                assets; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">enter
                into transactions with affiliates; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">limit
                ability of restricted subsidiaries to make payments to the Company;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">consolidate,
                merge, sell or otherwise dispose of all or substantially all of the
                Company&#8217;s assets; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">designate
                the Company&#8217;s subsidiaries as unrestricted subsidiaries.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em><strong>Events
      of Default</strong></em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Indentures also provide for events of default which, if any of them occurs,
      would permit or require the principal of and accrued interest on the notes
      to
      become or to be declared due and payable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">See
      also
&#8220;Certain Relationships&#8221; under &#8220;1. Senior Secured Term Loan Facility&#8221; above.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>4.&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Registration
                Rights Agreement</strong></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      July
      6, 2007, Merger Sub, the Company and the subsidiary guarantors entered into
      a
      registration rights agreement with respect to the notes with Goldman, Sachs
      &amp; Co., Citigroup Global Markets Inc., Wachovia Capital Markets, LLC, and
      Lehman Brothers Inc., as initial purchasers of the notes (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Initial
      Purchasers</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;).
      The
      following is a summary of the material terms of the registration rights
      agreement and is qualified in its entirety by reference to the copy of the
      registration rights agreement that is filed as Exhibit 4.10 to this Current
      Report on Form 8-K. In the registration rights agreement, the Company has agreed
      that it will use its commercially reasonable efforts to register with the
      Securities and Exchange Commission notes having substantially identical terms
      as
      the senior notes and notes having substantially identical terms as the senior
      subordinated notes as part of offers to exchange freely tradable exchange notes
      for each such series of notes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Company is required to use its commercially reasonable efforts to cause the
      exchange offer to be completed or, if required, to have one or more shelf
      registration statements declared effective, within 270 days after the issue
      date
      of each of the notes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">If
      the
      Company fails to meet this target (a &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>registration
      default</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      the
      annual interest rate on the applicable series of notes will increase by 0.25%.
      The annual interest rate on the applicable series of notes will increase by
      an
      additional 0.25% for each subsequent 90-day period during which the registration
      default continues, up to a maximum additional interest rate of 1.0% per year
      over the applicable interest rate described above. If the registration default
      is corrected, the applicable interest rate on such notes will revert to the
      original level. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">See
      also
&#8220;Certain Relationships&#8221; under &#8220;1. Senior Secured Term Loan Facility&#8221;
above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>5.&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>David
                Ber&#233; Employment Agreement </strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      July
      6, 2007, the Company entered into an employment agreement with David L. Ber&#233; to
      serve as interim Chief Executive Officer until the earlier of (i) the Company&#8217;s
      appointment of a new Chief Executive Officer or (ii) December 31, 2007. The
      employment agreement may be extended by mutual agreement of the parties for
      a
      period of three months following the date such new chief executive officer&#8217;s
      employment with the Company commences and may also be extended to provide for
      Mr. Ber&#233; &#8217;s services as President and Chief Operating Officer. Mr. Ber&#233; has also
      elected to participate in the Company&#8217;s newly established 2007 Stock Incentive
      Plan for Key Employees of Dollar General Corporation and its Affiliates; the
      information set forth in Section&#160;6 of Item 1.01 is incorporated by
      reference into this Section 5.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Mr.
      Ber&#233;&#8217;s annual base salary will be subject to discretionary annual increases upon
      review by the Board of Directors, and Mr. Ber&#233; will be eligible to earn an
      annual bonus as a percentage of his base salary with respect to each fiscal
      year, based upon the achievement of annual performance targets established
      by
      the Board of Directors. With respect to the 2007 fiscal year, so long as Mr.
      Ber&#233; remains employed through the date required under the Bonus Plan to receive
      payment of a bonus thereunder, Mr. Ber&#233; is eligible to earn (i)&#160;a threshold
      bonus; (ii)&#160;a target bonus; or (iii)&#160;a maximum bonus, all defined as a
      percentage of base salary, payable in each case in accordance with the terms
      of
      the Bonus Plan and based on the achievement of certain annual performance
      targets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">If
      the
      term of employment extends beyond the initial term, but not beyond the end
      of
      fiscal year 2008, whether or not Mr. Ber&#233; remains employed through the relevant
      date required under the Bonus Plan to receive payments thereunder, the Company
      will provide Mr. Ber&#233; with annual bonus opportunities in 2008 that are
      consistent with those applicable to the 2007 fiscal </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR" style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">year,
        pro
        rated for the number of months that the term of Mr. Ber&#233;&#8217;s employment extends
        into fiscal year 2008 relative to 12 months. If the term extends beyond fiscal
        year 2008, Mr. Ber&#233; shall be eligible for incentive compensation as determined
        under the Bonus Plan for officers of the Company, based on criteria established
        by the Board of Directors.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">If
      Mr.
      Ber&#233;'s employment is terminated by the Company without &#8220;cause&#8221; (as defined in
      the agreement) or by Mr. Ber&#233; for &#8220;good reason&#8221; (as defined in the agreement),
      Mr. Ber&#233; would, subject to compliance with certain confidentiality,
      non-competition and non-solicitation covenants contained in the agreement and
      execution of a general release of claims on behalf of the Company, be
      (i)&#160;entitled to the accrued rights under the Bonus Plan; (ii)&#160;an
      amount equal to the product of (x)&#160;two times Mr. Ber&#233;'s base salary in
      effect immediately prior to July 6, 2007, plus (y) two times the amount of
      Mr.
      Ber&#233;&#8217;s annual target bonus amount Mr. Ber&#233; was eligible to earn under the Bonus
      Plan as in effect immediately prior to July 6, 2007; and (iii) a lump sum
      payment in an amount equal to two times the annual contribution made by the
      Company for Mr. Ber&#233;&#8217;s participation in Company&#8217;s benefit programs, as defined
      in the agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>6.&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>2007
                Stock Incentive Plan for Key Employees of Dollar General Corporation
                and
                its Affiliates </strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, the Company established the Dollar General
      Corporation 2007 Stock Incentive Plan (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Plan</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;).
      The
      Plan is designed to promote the long term financial interests and growth of
      the
      Company and its subsidiaries by attracting and retaining management and other
      personnel and key service providers with the training, experience and ability
      to
      enable them to make a substantial contribution to the success of the Company&#8217;s
      business, motivate management personnel by means of growth-related incentives
      to
      achieve long range goals and further the alignment of interests of participants
      with those of the stockholders of the Company through opportunities for
      increased stock, or stock-based ownership in the Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Plan
      permits the granting of awards covering 4% of the fully diluted equity of the
      Company immediately after consummation of the Merger. A portion of the options
      under the Plan will vest solely based upon continued employment over a specific
      period of time (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Time
      Vesting Options</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;),
      and a
      portion of the options will vest based both upon continued employment over
      a
      specific period of time and upon the achievement of predetermined performance
      targets over time (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Performance
      Vesting Options</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;).
      Options under the Plan will be awarded pursuant to a Stock Option Agreement
      with
      the Company (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><u>Option
      Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#8221;).
      A
      substantial majority of the options will have an exercise price which is the
      equivalent of $5.00 per share. The Named Executive Officers, David Ber&#233;, David
      Tehle, Beryl Buley, Kathleen Guion, and Challis Lowe have been awarded options
      of 2,250,000; 1,100,000; 875,000; 875,000; and 675,000,
      respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>7.&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Management
                and Indemnity Agreements</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">On
      July
      6, 2007, upon consummation of the Merger, certain affiliates of the Investors
      entered into a management agreement and an indemnity agreement with the Company.
      Pursuant to the management agreement, such entities are entitled to receive
      an
      aggregate annual management fee of $5 million, which amount will increase 5%
      annually, and reimbursement of out-of-pocket expenses incurred in connection
      with the provision of services pursuant to the agreement. The management
      agreement will continue in effect from year to year, unless terminated upon
      a
      change of control of the Company or in connection with an initial public
      offering of the Company or if the parties mutually agree to terminate the
      agreement. In addition,&#160; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">pursuant
        to the management agreement, such entities also received aggregate transaction
        fees of $75 million in connection with certain services provided in connection
        with the Merger and related transactions. In addition,the management agreement
        provides that these entities will be entitled to receive a fee equal to 1%
        of
        the gross transaction value in connection with certain subsequent financing,
        acquisition, disposition, and change of control transactions, as well as
        a
        termination fee based on the net present value of future payment obligations
        under the management agreement in the event of an initial public offering
        or
        under certain other circumstances. Pursuant to the terms of the indemnity
        agreement, the Company has agreed to customary exculpation and indemnification
        provisions in favor of these entities and their affiliates.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>8.&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Rollover
                Agreements</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, certain members of management entered into
      agreements with the Company and/or Parent, pursuant to which they elected to
      invest in the Company, as the surviving corporation in the Merger, through
      a
      cash investment, a rollover of employee stock options, a rollover of shares
      of
      common stock of the Company, or a combination thereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>9.&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Stockholder
                Agreements</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, certain members of management entered into
      stockholder agreements with the Company. The stockholder agreements, among
      other
      things, contain agreements among the parties with respect to restrictions on
      the
      transfer of the shares, including tag along rights, drag along rights,
      registration rights (including customary indemnification provisions) and call
      options and put options.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">10.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Supplemental
      Indenture</font></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font>As
      previously disclosed, Merger
      Sub received the requisite consents to the proposed amendments to the indenture
      pursuant to which the Company&#8217;s 8 5/8% Notes due June 15, 2010 were issued. On
      July 7, 2006, a supplemental indenture to effect such amendments was executed
      and delivered. The amendments contained in the supplemental indenture have
      now
      become operative upon the Company&#8217;s purchase of the tendered notes, which
      occurred on July 7, 2006. The amendments contained in the supplemental indenture
      eliminate substantially all of the restrictive covenants contained in that
      indenture. The foregoing summary of the supplemental indenture is qualified
      in
      its entirety by reference to the copy of the supplemental indenture that is
      filed as Exhibit 4.11 to this Current Report on Form 8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.02.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Termination of a
      Material Definitive Agreement</strong>.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">1.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Existing
      Senior Secured Credit Facilities</font></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, on July 6, 2007, the Company repaid in full all
      outstanding term loans and revolving loans, together with interest and all
      other
      amounts due in connection with such repayment, under the Seconded Amended and
      Restated Credit Agreement, dated as of June 28, 2006, by and among, the Company,
      the lenders from time to time parties thereto, SunTrust Bank, Bank of America,
      N.A., Keybank National Association, Regions Bank and U.S. Bank National
      Association, (filed as an exhibit to the Company&#8217;s Current Report on Form 8-K
      dated June 28, 2006 and filed July 3, 2006), as amended by the First Amendment
      to Second Amended and Restated Revolving Credit Agreement, dated as of December
      8, 2006, by and among Dollar General Corporation, the lenders from time to
      time
      parties thereto, SunTrust Bank, Bank of America, N.A., Keybank National
      Association, Regions Bank and U.S. Bank National Association (filed as an
      exhibit to the Company&#8217;s Annual Report on Form 10-K for the year ended February
      2, 2007) . In addition, in connection with the Merger, commercial letters of
      credit totaling $143,743,672.70 issued by Bank of America, N.A., LaSalle Bank
      National Association and US Bank National Association, and standby letters
      of
      credit totaling $40,692,000 issued by Bank of America, N.A., SunTrust Bank
      (as
      Issuing Bank and Administrative Agent under the Amended and Restated Revolving
      Credit Agreement dated June </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">30,
        2004)
        and Regions Bank, will be terminated and replaced by new letters of credit
        under
        the Asset Based Credit Facility on July 6, 2007.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">2.
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">David
      Perdue Employment Agreement</font></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">As
      previously disclosed, the Company's Chairman and Chief Executive Officer, David
      Perdue, resigned effective upon consummation of the Merger on July 6, 2007.
      Mr.
      Perdue's employment under the terms of his employment agreement with the Company
      was terminated pursuant to such resignation. Mr. Perdue had been employed with
      the Company pursuant to an Amended and Restated Employment Agreement, effective
      as of September 18, 2006, by and between the Company and Mr. Perdue (filed
      as an
      exhibit to the Company&#8217;s Current Report on Form 8-K dated September 18, 2006 and
      filed September 19, 2006 and incorporated herein by this reference). The Company
      and Mr. Perdue have agreed to treat Mr. Perdue's resignation as being for &#8220;Good
      Reason&#8221; (as defined in Mr. Perdue's employment agreement). Upon his execution of
      a release, Mr. Perdue will be entitled to certain severance payments and
      benefits which are triggered by a resignation for Good Reason under his
      employment agreement, subject to Mr. Perdue's continued compliance with certain
      terms of the employment agreement (including certain restrictive covenants
      set
      forth therein). He will also be entitled to payments under a supplemental
      executive retirement plan (filed as an exhibit to the Company&#8217;s Current Report
      on Form 8-K dated and filed January 25, 2006 and incorporated herein by this
      reference).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.03.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Creation of a Direct
      Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
      of
      a Registrant.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      information set forth in Sections 1, 2 and 3 of Item 1.01 of this Current Report
      on Form 8-K is incorporated by reference into this Item 2.03. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.03.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Material Modification
      to Rights of Security Holders.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      information set forth in Sections 1, 2, 3, and 4 of Item 1.01. and Item 5.03.
      is
      incorporated by reference into this Item 3.03. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Departure of
      Directors or Principal Officers; Election of Directors; Appointment of Principal
      Officers; Compensatory Arrangements of Certain Officers.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      connection with the consummation of the Merger and pursuant to the terms of
      the
      Merger Agreement, each of our directors (other than David Ber&#233;) who was a member
      of our Board of Directors immediately prior to the Merger has either resigned
      or
      been removed, and has been replaced with the members of the Board of Directors
      of Merger Sub. Accordingly, our new Board of Directors is comprised of the
      following individuals: Michael Calbert, a member of Kohlberg Kravis Roberts
      &amp; Co. L.P., Raj Agrawal, a principal of Kohlberg Kravis Roberts &amp; Co.,
      L.P., Adrian Jones, a managing director of Goldman, Sachs &amp; Co., and Sumit
      Rajpal, a vice president of Goldman, Sachs &amp; Co. In addition, David Ber&#233;
will continue to serve as a director of the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">As
      a
      result of their respective positions with affiliates of the Investors, one
      or
      more of the directors may be deemed to have an indirect material interest in
      the
      Management Agreement and Indemnity Agreement, each of which was entered into
      by
      the Company on July 6, 2007, and the information set forth in Section 7 of
      Item
      1.01 is accordingly incorporated by reference into this Item 5.02.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      connection with the consummation of the Merger, the Company&#8217;s Chairman and Chief
      Executive Officer, David A. Perdue has resigned and David Ber&#233;, the Company&#8217;s
      President </font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">and
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Chief
        Operating Officer, has been appointed the interim Chief Executive Officer,
        effective as of July 6, 2007, while a search for a new Chief Executive Officer
        is undertaken.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">The
      Company has, in connection with Mr. Ber&#233;&#8217;s appointment as interim Chief
      Executive Officer, entered into an amended and restated employment agreement
      with Mr. Ber&#233;. In addition, Mr. Ber&#233; has, in connection with the consummation of
      the Merger, rolled options or equity stock to acquire common stock of the
      surviving corporation and has entered into a stockholder agreement with the
      Company. He will also, along with the Company&#8217;s other executive officers and
      certain other employees, participate in the Plan. The information set forth
      in
      Sections 5, 6, 8 and 9 of Item 1.01 of this Current Report on Form 8-K is
      incorporated by reference into this Item 5.02. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.03.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Amendments to
      Articles of Incorporation or By-laws; Change in Fiscal
      Year</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">In
      connection with the consummation of the Merger, the Company&#8217;s charter and
      by-laws were amended and restated, effective July 6, 2007, so that they read
      in
      the form attached as an exhibit to the Merger Agreement, in the case of the
      charter, and, with respect to the by-laws, in their entirety as the by-laws
      of
      Merger Sub read immediately prior to the effective time of the Merger in
      accordance with the Merger Agreement. Copies of the Company&#8217;s Amended and
      Restated Charter and Amended and Restated By-laws of the Company are attached
      as
      Exhibits 3.1 and 3.2, respectively, to this Current Report on Form 8-K and
      are
      incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Item
      9.01<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Financial
      Statements and Exhibits.</font></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;(d)
      </font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><em>Exhibits</em></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">See
      the
      Index of Exhibits that immediately follows the signature page to this Current
      Report on Form 8-K, which is incorporated herein by reference.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><strong>DOLLAR
      GENERAL
      CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 198pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;
      By:<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; /s/
      Susan S. Lanigan<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 198pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;
</font>Name:
      Susan S. Lanigan</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 198pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Title:&#160;&#160;&#160; Executive Vice President and General
      Counsel</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Date:
      July 12, 2007</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      OF EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong><u>Number</u></strong></font></div>
            </td>
            <td align="left" valign="top" width="68%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit</u></strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">&#160;</td>
            <td align="left" valign="top" width="68%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">3.1</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Amended
                and Restated Certificate of Incorporation of the
                Company</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">3.2</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Amended
                and Restated By-laws of the Company </font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.1</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Tenth
                Supplemental Indenture, dated July 6, 2007, among the Company, the
                subsidiary guarantors named therein and U.S. Bank National Association
                (successor to Wachovia Bank, National Association, formerly known
                as First
                Union National Bank).</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.2</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Credit
                Agreement, dated as of July 6, 2007, among Dollar General Corporation,
                as
                Borrower, Citigroup North America, Inc., as Administrative Agent,
                and the
                other lending institutions form time to time party
                thereto.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.3</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Guarantee,
                dated as of July 6, 2007, by certain domestic subsidiaries of Dollar
                General Corporation, as Guarantors.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.4</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Security
                Agreement, dated as of July 6, 2007, among Dollar General Corporation
                and
                certain domestic subsidiaries of Dollar General Corporation, as Grantors,
                and Citigroup North America, Inc., as Collateral Agent</font><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.5</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Pledge
                Agreement, dated as of July 6, 2007, among Dollar General Corporation
                and
                certain domestic subsidiaries of Dollar General Corporation, as Pledgors,
                and Citigroup North America, Inc., as Collateral Agent.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.6</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">ABL
                Credit Agreement, dated as of July 6, 2007, among Dollar General
                Corporation, as Parent Borrower, certain domestic subsidiaries of
                Dollar
                General Corporation, as Subsidiary Borrowers, The CIT Group/Business
                Credit, Inc., as ABL Administrative Agent, and the other lending
                institutions form time to time party thereto.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.7</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">ABL
                Security Agreement, dated as of July 6, 2007, among Dollar General
                Corporation and certain domestic subsidiaries of Dollar General
                Corporation, as Grantors, and The CIT Group/Business Credit, Inc.,
                as ABL
                Collateral Agent.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.8</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Senior
                Indenture, dated July 6, 2006, among Buck Acquisition Corp., Dollar
                General Corporation, the guarantors named therein and Well Fargo
                Bank,
                N.A., as Trustee.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.9</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Senior
                Subordinated Indenture, dated July 6, 2006, among Buck Acquisition
                Corp.,
                Dollar General Corporation, the guarantors named therein and Well
                Fargo
                Bank, N.A., as Trustee.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.10</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Registration
                Rights Agreement, dated July 6, 2006, among Buck Acquisition Corp.,
                Dollar
                General Corporation, the guarantors named therein and the initial
                purchasers named therein.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.11</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Form
                of 10.625% Senior Notes due 2015 (included in Exhibit
                4.8)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">4.12</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Form
                of 11.875% / 12.625% Senior Subordinated Toggle Notes (included in
                Exhibit
                4.9)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td align="left" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Amended
                and Restated Employment Agreement, dated July 6, 2007, by and between
                Dollar General Corporation and David
                Ber&#233;.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
  </body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "dollargeneralclosing8-k.htm", "description": "DOLLAR GENERAL CORPORATION FORM 8-K FILED JULY 12, 2007", "secsgml_size_bytes": 179038}]
{"company-data": {"conformed-name": "DOLLAR GENERAL CORP", "cik": "0000029534", "assigned-sic": "5331", "irs-number": "610502302", "state-of-incorporation": "TN", "fiscal-year-end": "0201"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-11421", "film-number": "07977225"}, "business-address": {"street1": "100 MISSION RIDGE", "city": "GOODLETTSVILLE", "state": "TN", "zip": "37072", "phone": "6158554000"}, "mail-address": {"street1": "100 MISSION RIDGE", "city": "GOODLETTSVILLE", "state": "TN", "zip": "37072"}, "former-company": [{"former-conformed-name": "TURNER CAL", "date-changed": "19710401"}, {"former-conformed-name": "TURNER J L & SON INC", "date-changed": "19710401"}]}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
PURSUANT
      TO SECTION 13 OR 15(d) OF THE
SECURITIES
      EXCHANGE ACT OF 1934
Date
      of
      report (Date of earliest event reported):
July
      6,
      2007
DOLLAR
      GENERAL CORPORATION
(Exact
      Name of Registrant as Specified in Charter)
Tennessee
001-11421
61-0502302
(State
                or Other Jurisdiction
(Commission
(IRS
                Employer
of
                Incorporation)
File
                Number)
Identification
                No.)
100
                  Mission
                  Ridge, Goodlettsville, Tennessee
37072
(Address
                  of Principal
                  Executive Offices)
(Zip
                    Code)
Registrant's
      telephone number, including area code:
(615)
      855-4000
Not
      Applicable
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2.):
¨
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))
Introductory
      Note
On
      July
      6, 2007, Dollar General Corporation, a Tennessee corporation (the "
Company
"),
      completed its merger (the "
Merger
")
      with
      Buck Acquisition Corp. ("
Merger
      Sub
"),
      a
      wholly owned subsidiary of Buck Holdings, L.P. ("
Parent
"),
      pursuant to the terms of the Agreement and Plan of Merger, dated as of March
      11,
      2007 (the "
Merger
      Agreement
"),
      by
      and among Parent, Merger Sub and the Company. Parent and Merger Sub are
      controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co.
      L.P.,
GS
      Capital Partners, an affiliate of Goldman Sachs,
Citi
      Private Equity, and other equity co-investors (collectively, the "
Investors
").
Item
      1.01.
Entry into a Material
      Definitive Agreement
1.
      Senior Secured Term Loan Facility
Overview
On
      July
      6, 2007, in connection with the Merger, the Company entered into a credit
      agreement and related security and other agreements, with Goldman Sachs Credit
      Partners L.P., Citigroup Global Markets Inc., Lehman Brothers Inc. and
      Wachovia Capital Markets, LLC, each as joint lead arranger and joint bookrunner,
      Citicorp North America, Inc., as administrative agent and collateral agent,
      Goldman Sachs Credit Partners L.P., as syndication agent, and Lehman Commercial
      Paper Inc. and Wachovia Bank, National Association, as documentation agents,
      consisting of a $2,300.0 million senior secured term loan facility (the
"
Term
      Loan Credit Facility
").
      The
      following is a summary of the material terms of the Term Loan Credit Facility
      and is qualified in its entirety by reference to the copy of the Term Loan
      Credit Facility that is filed as Exhibit 4.2 to this Current Report on Form
      8-K.
The
Term
      Loan
      Credit Facility
consists
      of two tranches, one of which is a "first-loss" tranche, which, in certain
      circumstances, is subordinated in right of payment to the other tranche of
      the
Term
      Loan
      Credit Facility
.
The
      Company is the borrower under the Term Loan Credit Facility.
The
      Term
      Loan Credit Facility provides that the Company has the right at any time to
      request up to $325.0 million of incremental commitments under one or more
      incremental term loan facilities and/or asset-based revolving credit facilities.
      The lenders under the Term Loan Credit Facility are not under any obligation
      to
      provide any such incremental commitments and any such addition of or increase
      in
      commitments under the Term Loan Credit Facility will be subject to the Company's
      not exceeding certain senior secured leverage ratios and certain other customary
      conditions precedent. The Company's ability to obtain extensions of credit under
      these incremental commitments under the Term Loan Credit Facility is also
      subject to the same conditions as extensions of credit under the under the
      Term
      Loan Credit Facility.
Interest
      Rate and Fees
Borrowings
      under the Term Loan Credit Facility bear interest at a rate equal to an
      applicable margin plus, at the Company's option, either (a) a LIBOR rate
      adjusted for certain additional costs or (b) a base rate, in each case plus
      a spread. The applicable margin for borrowings is 2.75% with respect to LIBOR
      borrowings and 1.75% with respect to base-rate borrowings.
Prepayments
The
      credit agreement requires the Company to prepay outstanding term loans, subject
      to certain exceptions, with:
·
50%
                of the Company's annual excess cash flow (as defined in the Term Loan
                Credit Facility) commencing with the fiscal year ending on or about
                January 31, 2008 (which percentage will be reduced to 25% and 0%
                if the
                Company achieves and maintains a total net leverage ratio of 6.0
                to 1.0
                and 5.0 to 1.0, respectively);
·
100%
                of the net cash proceeds of all non-ordinary course asset sales or
                other
                dispositions of property in excess of $25.0 million and subject to
                the
                Company's right to reinvest the proceeds;
                and
·
100%
                of the net cash proceeds of any incurrence of debt, other than proceeds
                from debt permitted under the credit
                agreement.
The
      foregoing mandatory prepayments will be applied to the Term Loan Credit Facility
      as directed by the credit agreement.
The
      Company may voluntarily repay outstanding loans under the Term Loan Credit
      Facility at any time without premium or penalty, other than customary "breakage"
costs with respect to LIBOR loans.
Amortization
Beginning
      September 30, 2009, the Company is required to repay installments on the loans
      under the Term Loan Credit Facility in equal quarterly principal amounts in
      an
      aggregate amount per annum equal to 1% of the total funded principal amount,
      with the balance payable on July 6, 2014.
Guarantee
      and Security
Pursuant
      to a Guarantee, dated as of July 6, 2007, among the U.S. Guarantors (as defined
      below) and Citicorp North America, Inc. (filed as Exhibit 4.3 to this Current
      Report on Form 8-K), all obligations under the Term Loan Credit Facility are
      unconditionally guaranteed by substantially all of the Company's existing and
      future domestic subsidiaries (excluding certain immaterial subsidiaries and
      certain subsidiaries designated by the Company under the credit agreement as
      "unrestricted subsidiaries"), referred to, collectively, as U.S.
      Guarantors.
Pursuant
      to a Security Agreement and a Pledge Agreement, each dated as of July 6, 2007,
      each among the Company, the U.S. Guarantors and Citicorp North America, Inc.
      (filed as Exhibits 4.4 and 4.5, respectively, to this Current Report on Form
      8-K), all obligations under the Term Loan Credit Facility and the guarantees
      of
      those obligations will be secured by:
·
a
                second-priority security interest in all existing and after-acquired
                inventory, accounts receivable, and other assets arising from such
                inventory and accounts receivable, of the Company and each U.S. Guarantor
                (the "
Revolving
                Facility Collateral"
),
                subject to certain exceptions;
·
a
                first priority security interest in, and mortgages on, substantially
                all
                of the tangible and intangible assets of the Company and each U.S.
                Guarantor (other than the Revolving Facility Collateral);
                and
·
a
                first-priority pledge of 100% of the capital stock held by the Company,
                or
                any of the Company's domestic subsidiaries that are directly owned by us
                or one of the U.S. Guarantors and 65% of the voting capital stock
                of each
                of the Company's existing and future foreign subsidiaries that are
                directly owned by the Company or one of the U.S.
                Guarantors.
Certain
      Covenants and Events of Default
The
      credit agreement contains a number of covenants that, among other things,
      restrict, subject to certain exceptions, the Company's ability to:
·
incur
                additional indebtedness;
·
sell
                assets;
·
pay
                dividends and distributions or repurchase the Company's capital
                stock;
·
make
                investments or acquisitions;
·
repay
                or repurchase subordinated indebtedness (including the senior subordinated
                notes discussed below) and the senior notes discussed
                below;
·
amend
                material agreements governing the Company's subordinated indebtedness
                (including the senior subordinated notes discussed below) or the
                Company's
                senior notes discussed below; and
·
change
                the Company's lines of business.
The
      credit agreement for the Term Loan Credit Facility also contains certain
      customary affirmative covenants and events of default.
Certain
      Relationships
The
      lenders or their affiliates have in the past engaged, and may in the future
      engage, in transactions with and perform services, including commercial banking,
      financial advisory and investment banking services, for the Company and its
      affiliates in the ordinary course of business for which they have received
      or
      will receive customary fees and expenses. Funds controlled by GS Capital
      Partners, an affiliate of Goldman, Sachs & Co. indirectly own approximately
      20.5% of the shares of the Company after the Merger on a fully diluted basis.
      Funds managed by Citigroup Private Equity LP, an affiliate of Citigroup Global
      Markets Inc. and Citigroup North America, Inc. indirectly own approximately
      6.8%
      of the shares of the Company after the Merger on a fully diluted basis. In
      connection with the Merger, Citigroup Global Markets Inc., Wachovia Capital
      Markets, LLC, Goldman, Sachs & Co. and Lehman Brothers Inc. have provided
      financial advisory services to, and will receive financial advisory fees from,
      the Company, the Investors and their affiliates. Affiliates of the lenders
      acted
      as initial purchasers of
the
        notes
        issued under the Indentures described below and participated in other financing
        aspects relating to the Merger. Goldman, Sachs & Co. acted as dealer manager
        for the tender offer for certain indebtedness refinanced in connection with
        the
        Merger. Messrs. Adrian Jones and Sumit Rajpal, who have become directors
        of the
        Company following the Merger, serve as directors of HealthMarkets, Inc. Mr.
        Jones also serves as a director of Burger King Holdings, Inc., Education
        Management Corporation and Signature Hospital, LLC. Mr. Rajpal also serves
        as a
        director of USI Holdings Corporation. All such entities are partly or wholly
        owned by an affiliate of Goldman, Sachs & Co.
2.
      Senior Secured Asset-Based Revolving Credit Facility
Overview
On
      July
      6, 2007, in connection with the Merger, the Company entered into an ABL credit
      agreement and related security and other agreements, with Goldman Sachs Credit
      Partners L.P., Citigroup Global Markets Inc., Lehman Brothers Inc. and
      Wachovia Capital Markets, LLC, each as joint lead arranger and joint bookrunner,
      CIT Capital Securities LLC, as lead arranger of the tranche A-1 loan facility,
      The CIT Group/Business Credit, Inc., as administrative agent, collateral agent,
      swingline lender and letter of credit issuer, Goldman Sachs Credit Partners
      L.P., as syndication agent, and Lehman Commercial Paper Inc. and Wachovia Bank,
      National Association, as documentation agents, consisting of a senior secured
      asset-based revolving credit facility of up to $1,125.0 million (of which
      up to $350.0 million will be available for letters of credit), subject to
      borrowing base availability (the "
Asset-Based
      Credit Facility
").
      The
      following is a summary of the material terms of the Asset-Based Credit Facility
      and is qualified in its entirety by reference to the copy of the Asset-Based
      Credit Facility that is filed as Exhibit 4.6 to this Current Report on Form
      8-K.
The
      Company is the primary borrower under the Asset Based Credit Facility and,
      in
      addition, certain subsidiaries of the Company are designated as borrowers.
      The
      Asset Based Credit Facility includes borrowing capacity available for letters
      of
      credit and for short-term borrowings referred to as swingline
      loans.
The
      Asset
      Based Credit Facility provides that the Company has the right at any time to
      request up to $325.0 million of incremental commitments under one or more
      incremental term loan facilities and/or the Asset Based Credit Facility. The
      lenders under the Asset Based Credit Facility are not under any obligation
      to
      provide any such incremental commitments and any such addition of or increase
      in
      commitments under the Asset Based Credit Facility will be subject to the
      Company's not exceeding certain senior secured leverage ratios and certain other
      customary conditions precedent. The Company's ability to obtain extensions of
      credit under these incremental commitments under the Asset Based Credit Facility
      is also subject to the same conditions as extensions of credit under the Asset
      Based Credit Facility.
The
      amount from time to time available under the Asset Based Credit Facility
      (including in respect of letters of credit) shall not exceed the borrowing
      base.
      The borrowing base equals the sum of (i) 85% of the net orderly liquidation
      value of all eligible inventory of the Company and each guarantor thereunder
      and
      (ii) 90% of all accounts receivable and credit/debit card receivables of
      the Company and each co-borrower and each guarantor thereunder, in each case,
      subject to a reserve equal to the principal amount of the Company 8 5/8% notes
      due 2010 that remain outstanding at any time on or after the closing date and
      other customary reserves and eligibility criteria to be agreed. An additional
      10% to 12% of the net orderly liquidation value of all eligible inventory of
      the
      Company and each guarantor thereunder is made available to the Company in the
      form of a "last out" tranche in respect of which the Company may borrow up to a
      maximum
amount
      of
      $125.0 million. Borrowings under the Asset Based Credit Facility will be
      incurred first under the "last out" tranche, and no borrowings will be permitted
      under any other tranche until the "last out" tranche is fully utilized.
      Repayments of the Asset Based Credit Facility will be applied to the "last out"
tranche only after all other tranches have been fully paid down. The borrowings
      incurred under the "last out" tranche will be at a higher interest rate, as
      described under "Interest Rate and Fees" below.
Interest
      Rate and Fees
Borrowings
      under the Asset Based Credit Facility bear interest at a rate equal to an
      applicable margin plus, at the Company's option, either (a) a LIBOR rate
      adjusted for certain additional costs or (b) a base rate, in each case plus
      a spread. The initial applicable margin for borrowings (except in the case
      of
      the "last out" tranche described above) is 1.50% with respect to LIBOR
      borrowings and 0.50% with respect to base-rate borrowings and for any "last out"
borrowings is 2.25% with respect to LIBOR borrowings and 1.25% with respect
      to
      base-rate borrowings. The applicable margins for borrowings under the Asset
      Based Credit Facility (except in the case of "last out" borrowings) are subject
      to adjustment each quarter based on average daily excess availability under
      the
      Asset Based Credit Facility.
In
      addition to paying interest on outstanding principal under the Asset Based
      Credit Facility, the Company is required to pay a commitment fee to the lenders
      under the Asset Based Credit Facility in respect of the unutilized commitments
      thereunder. The initial commitment fee rate is 0.375% per annum. The commitment
      fee rate will be reduced (except with regard to the "last out" tranche) to 0.25%
      per annum at any time that excess availability under the Asset Based Credit
      Facility is equal to or less than 50% of the aggregate commitments under the
      Asset Based Credit Facility. The Company must also pay customary letter of
      credit fees.
Prepayments
The
      credit agreement for the Asset Based Credit Facility requires the Company to
      prepay the Asset Based Credit Facility, subject to certain exceptions,
      with:
·
100%
                of the net cash proceeds of all non-ordinary course asset sales or
                other
                dispositions of Revolving Facility Collateral (as defined below)
                in excess
                of $1.0 million and subject to the Company's right to reinvest the
                proceeds; and
·
to
                the extent such extensions of credit exceed the then current borrowing
                base (as defined in the credit agreement for the Asset Based Credit
                Facility).
The
      Company may voluntarily repay outstanding loans under the Asset Based Credit
      Facility at any time without premium or penalty, other than customary "breakage"
costs with respect to LIBOR loans.
Letters
      of Credit
$350.0
      million of the Company's Asset Based Credit Facility is available for letters of
      credit.
Amortization
There
      is
      no amortization under the Asset Based Credit Facility. The entire principal
      amounts (if any) outstanding under the Asset Based Credit Facility are due
      and
      payable in full at maturity, on July 6, 2013, on which day the commitments
      thereunder will terminate.
Security
Pursuant
      to a Security Agreement, dated as of July 6, 2007, among the Company, the
      subsidiary borrowers and The CIT Group/Business Credit, Inc. (filed as Exhibit
      4.7 to this Current Report on Form 8-K), all obligations under the Asset Based
      Credit Facility are secured by all existing and after-acquired inventory,
      accounts receivable, and other assets arising from such inventory and accounts
      receivable, of the Company and each subsidiary borrower (the "
Revolving
      Facility Collateral
"),
      subject to certain exceptions.
Certain
      Covenants and Events of Default
The
      credit agreement contains a number of covenants that, among other things,
      restrict, subject to certain exceptions, the Company's ability to:
·
incur
                additional indebtedness;
·
sell
                assets;
·
pay
                dividends and distributions or repurchase the Company's capital
                stock;
·
make
                investments or acquisitions;
·
repay
                or repurchase subordinated indebtedness (including the senior subordinated
                notes discussed below) and the senior notes discussed
                below;
·
amend
                material agreements governing the Company's subordinated indebtedness
                (including the senior subordinated notes discussed below) or the
                Company's
                senior notes discussed below; and
·
change
                the Company's lines of business.
Although
      the Asset Based Credit Facility does not require the Company to comply with
      any
      financial ratio maintenance covenants, if it has less than $75.0 million of
      excess availability under the Asset Based Credit Facility at any time, the
      Company is not permitted to borrow any additional amounts thereunder unless
      the
      Company meets a financial ratio set forth in the Asset Based Credit
      Facility.
The
      credit agreement for the
Asset
      Based Credit Facility
also
      contains certain customary affirmative covenants and events of
      default.
See
      also
"Certain Relationships" under "1. Senior Secured Term Loan Facility" above.
3.
Indentures
                and Senior Notes due 2015 and Senior Subordinated Toggle Notes due
                2017
Overview
On
      July
      6, 2007, Merger Sub issued $1,175,000,000 aggregate principal amount of 10.625%
      senior notes due 2015 (the "
senior
      notes
"),
      which
      mature on July 15, 2015 pursuant to an indenture, dated as of July 6, 2007
      (the
"
Senior
      Indenture
"),
      among
      the Company, Merger Sub, the guarantors party thereto and Wells Fargo Bank,
      National Association, as trustee, and $725,000,000 aggregate principal amount
      of
      11.875%/12.625% senior subordinated toggle notes due 2017 (the "
senior
      subordinated notes
"),
      which
      mature on July 15, 2017, pursuant to an indenture, dated as of July 6, 2007
      (the
"
Senior
      Subordinated Indenture
"),
      among
      the Company, Merger Sub, the guarantors party thereto and Wells Fargo Bank,
      National Association, as trustee. The senior notes and the senior subordinated
      notes are collectively referred to herein as the "
notes
."
The
      Senior Indenture and the Senior Subordinated Indenture are collectively referred
      to herein as the "
indentures
."
The
      following is a summary of the material terms of the indentures and is qualified
      in its entirety by reference to the copies of the Senior Indenture and the
      Senior Subordinated Indenture that are filed as Exhibits 4.8 and 4.9,
      respectively, to this Current Report on Form 8-K.
Interest
      on the senior subordinated notes will be payable in cash. Interest on the notes
      is payable on January 15 and July 15 of each year, commencing on January 15,
      2008. Cash interest on the senior subordinated notes will accrue at a rate
      of
      11.875% per annum, and PIK interest (as such term is defined below) will accrue
      at a rate of 12.625% per annum. The initial interest payment on the toggle
      notes
      will be payable in cash. For any interest period thereafter through July 15,
      2011, the Company may elect to pay interest on the toggle notes (i) in cash,
      (ii) by increasing the principal amount of the toggle notes or issuing new
      toggle notes ("
PIK
      interest
")
      or
      (iii) by paying interest on half of the principal amount of the toggle notes
      in
      cash interest and half in PIK interest. After July 15, 2011, all interest on
      the
      toggle notes will be payable in cash.
The
      following is a brief description of the terms of the notes and the Senior
      Indenture and Senior Subordinated Indenture.
Ranking
The
      senior notes are the Company's senior unsecured obligations and rank senior in
      right of payment to any future subordinated indebtedness; rank equally in right
      of payment with all of the Company's existing and future senior indebtedness;
      are effectively subordinated to all of the Company's existing and future secured
      debt (including obligations under the new credit facilities described above)
      to
      the extent of the value of the collateral security such debt; and are
      structurally subordinated to all existing and future indebtedness and other
      liabilities of the Company's non-guarantor subsidiaries (other than indebtedness
      and liabilities owed to the Company or one of its subsidiary guarantors (as
      such
      term is defined below)).
The
      senior subordinated notes are the Company's unsecured senior subordinated
      obligations and are subordinated in right of payment to any existing and future
      senior debt, including the new credit facilities described above and the senior
      notes; rank equally in right of payment with all of the Company's existing and
      future senior subordinated debt and other obligations that are not expressly
      made senior by the terms of the senior subordinated notes; are effectively
      subordinated to all of the Company's existing and future secured debt (including
      obligations under the new credit facilities described above) to the extent
      of
      the value of the collateral security such debt; and are structurally
      subordinated to all existing and future indebtedness and other liabilities
      of
      the Company's non-guarantor subsidiaries (other than indebtedness and
      liabilities owed to the Company or one of its subsidiary guarantors (as such
      term is defined below)).
Guarantees
The
      notes
      are fully and unconditionally guaranteed by each of the Company's existing and
      future direct or indirect wholly owned domestic subsidiaries that guarantees
      the
      Company's obligations under its senior secured credit facilities. Such
      subsidiary guarantors are collectively referred to herein as the "subsidiary
      guarantors," and such subsidiary guarantees are collectively referred to herein
      as the "subsidiary guarantees."
Each
      subsidiary guarantee of the senior notes ranks senior in right of payment to
      all
      existing and future subordinated indebtedness of the subsidiary guarantor;
      ranks
      equally in right of payment with all existing and future senior indebtedness
      of
      the subsidiary guarantor; is effectively subordinated in right of payment to
      all
      of the applicable subsidiary guarantor's existing and future secured debt
      (including the applicable subsidiary guarantor's guarantee under the new credit
      facilities described above) to the extent of the value of the collateral
      securing such indebtedness and is effectively subordinated in right of payment
      to all existing and future indebtedness and other liabilities of any subsidiary
      of a subsidiary guarantor that is not also a guarantor of the notes.
Each
      subsidiary guarantee of the senior subordinated notes will be subordinated
      in
      right of payment to all existing and future senior indebtedness of the
      subsidiary guarantor; ranks equally in right of payment with all existing and
      future senior subordinated indebtedness of the subsidiary guarantor; is
      effectively subordinated in right of payment to all of the applicable subsidiary
      guarantor's existing and future secured debt (including the applicable
      subsidiary guarantor's guarantee under the new credit facilities described
      above) to the extent of the value of the collateral securing such indebtedness
      and is effectively subordinated in right of payment to all existing and future
      indebtedness and other liabilities of any subsidiary of a subsidiary guarantor
      that is not also a guarantor of the notes. Any subsidiary guarantee of the
      notes
      will be released in the event such subsidiary guarantee is released under the
      senior secured credit facilities.
Optional
      Redemption
Senior
      Notes
At
      any
      time prior to July 15, 2011, the Company may redeem all or a part of the senior
      notes, at a redemption price equal to 100% of the principal amount of the senior
      notes redeemed plus the greater of (1) 1.0% of the principal amount of the
      senior notes; and (2) the excess, if any, of (a) the present value at such
      redemption date of (i) the redemption price of the senior notes at July 15,
      2011
      (as set forth in the table appearing below), plus (ii) all required interest
      payments due on the senior notes through July 15, 2011 (excluding accrued but
      unpaid interest to such redemption date), computed using a discount rate equal
      to the applicable treasury rate as of such redemption date plus 50 basis points;
      over (b) the then outstanding principal amount of the senior notes (as of,
      and
      plus accrued and unpaid interest and additional interest, if any, to, the date
      of redemption), subject to the rights of holders of senior notes on the relevant
      record date to receive interest due on the relevant interest payment date.
On
      and
      after July 15, 2011, the Company may redeem the senior notes, in whole or in
      part, at the redemption prices (expressed as percentages of the principal amount
      of the senior notes to be redeemed) set forth below, plus accrued and unpaid
      interest thereon and additional interest, if any, to the applicable redemption
      date, subject to the right of holders of senior notes of record on the relevant
      record date to receive interest due on the relevant interest payment date,
if
      redeemed during the twelve month period beginning on July 15 of each of the
      years indicated below:
Year
Percentage
2011
105.313%
2012
102.656%
2013
                and thereafter
100.000%
In
      addition, until July 15, 2010, the Company may, at its option, on one or more
      occasions redeem up to 35% of the aggregate principal amount of senior notes
      at
      a redemption price equal to 110.625% of the aggregate principal amount thereof,
      plus accrued and unpaid interest thereon and special interest, if any, to the
      applicable redemption date, subject to the right of holders of senior notes
      of
      record on the relevant record date to receive interest due on the relevant
      interest payment date, with the net cash proceeds of one or more equity
      offerings; provided that at least 50% of the sum of the original aggregate
      principal amount of senior notes issued under the Senior Indenture and the
      original principal amount of any additional notes that are senior notes issued
      under the Senior Indenture after the issue date remains outstanding immediately
      after the occurrence of each such redemption; provided further that each such
      redemption occurs within 90 days of the date of closing of each such equity
      offering.
Senior
      Subordinated Notes
At
      any
      time prior to July 15, 2012, the Company may redeem all or a part of the senior
      subordinated notes, at a redemption price equal to 100% of the principal amount
      of the senior subordinated notes redeemed plus the greater of (1) 1.0% of the
      principal amount of the senior subordinated notes; and (2) the excess, if any,
      of (a) the present value at such redemption date of (i) the redemption price
      of
      the senior subordinated notes at July 15, 2012 (as set forth in the table
      appearing below), plus (ii) all required interest payments due on the senior
      subordinated notes through July 15, 2012 (excluding accrued but unpaid interest
      to such redemption date), computed using a discount rate equal to the applicable
      treasury rate as of such redemption date plus 50 basis points; over (b) the
      then
      outstanding principal amount of the senior subordinated notes (as of, and plus
      accrued and unpaid interest and additional interest, if any, to, the date of
      redemption), subject to the rights of holders of senior subordinated notes
      on
      the relevant record date to receive interest due on the relevant interest
      payment date.
On
      and
      after July 15, 2012, the Company may redeem the senior subordinated notes,
      in
      whole or in part, at the redemption prices (expressed as percentages of the
      principal amount of the senior subordinated notes to be redeemed) set forth
      below, plus accrued and unpaid interest thereon and additional interest, if
      any,
      to the applicable redemption date, subject to the right of holders of senior
      subordinated notes of record on the relevant record date to receive interest
      due
      on the relevant interest payment date, if redeemed during the twelve month
      period beginning on July 15 of each of the years indicated below:
Year
Percentage
2012
105.938%
2013
102.958%
2014
101.979%
2015
                and thereafter
100.000%
In
      addition, until July 15, 2010, the Company may, at its option, on one or more
occasions
        redeem up to 35% of the aggregate principal amount of senior subordinated
        notes
        at a redemption price equal to 111.875% of the aggregate principal amount
        thereof, plus accrued and unpaid interest thereon and special interest, if
        any,
        to the applicable redemption date, subject to the right of holders of senior
        subordinated notes of record on the relevant record date to receive interest
        due
        on the relevant interest payment date, with the net cash proceeds of one
        or more
        equity offerings; provided that at least 50% of the sum of the original
        aggregate principal amount of senior subordinated notes issued under the
        Senior
        Subordinated Indenture and the original principal amount of any additional
        notes
        that are senior subordinated notes issued under the Senior Subordinated
        Indenture after the issue date remains outstanding immediately after the
        occurrence of each such redemption; provided further that each such redemption
        occurs within 90 days of the date of closing of each such equity
        offering.
Change
      of Control
Upon
      the
      occurrence of a change of control, which is defined in the Indentures each
      holder of the notes has the right to require the Company to repurchase some
      or
      all of such holder's notes at a purchase price in cash equal to 101% of the
      principal amount thereof, plus accrued and unpaid interest, if any, to the
      repurchase date.
Covenants
The
      Indentures contain covenants limiting, among other things, the Company's ability
      and the ability of its restricted subsidiaries to (subject to certain
      exceptions):
·
incur
                additional debt, issue disqualified stock or issue certain preferred
                stock;
·
pay
                dividends on or make certain distributions and other restricted payments;
·
create
                certain liens or encumbrances;
·
sell
                assets;
·
enter
                into transactions with affiliates;
·
limit
                ability of restricted subsidiaries to make payments to the Company;
·
consolidate,
                merge, sell or otherwise dispose of all or substantially all of the
                Company's assets; and
·
designate
                the Company's subsidiaries as unrestricted subsidiaries.
Events
      of Default
The
      Indentures also provide for events of default which, if any of them occurs,
      would permit or require the principal of and accrued interest on the notes
      to
      become or to be declared due and payable.
See
      also
"Certain Relationships" under "1. Senior Secured Term Loan Facility" above.
4.
Registration
                Rights Agreement
On
      July
      6, 2007, Merger Sub, the Company and the subsidiary guarantors entered into
      a
      registration rights agreement with respect to the notes with Goldman, Sachs
      & Co., Citigroup Global Markets Inc., Wachovia Capital Markets, LLC, and
      Lehman Brothers Inc., as initial purchasers of the notes (the "
Initial
      Purchasers
").
      The
      following is a summary of the material terms of the registration rights
      agreement and is qualified in its entirety by reference to the copy of the
      registration rights agreement that is filed as Exhibit 4.10 to this Current
      Report on Form 8-K. In the registration rights agreement, the Company has agreed
      that it will use its commercially reasonable efforts to register with the
      Securities and Exchange Commission notes having substantially identical terms
      as
      the senior notes and notes having substantially identical terms as the senior
      subordinated notes as part of offers to exchange freely tradable exchange notes
      for each such series of notes.
The
      Company is required to use its commercially reasonable efforts to cause the
      exchange offer to be completed or, if required, to have one or more shelf
      registration statements declared effective, within 270 days after the issue
      date
      of each of the notes.
If
      the
      Company fails to meet this target (a "
registration
      default
"),
      the
      annual interest rate on the applicable series of notes will increase by 0.25%.
      The annual interest rate on the applicable series of notes will increase by
      an
      additional 0.25% for each subsequent 90-day period during which the registration
      default continues, up to a maximum additional interest rate of 1.0% per year
      over the applicable interest rate described above. If the registration default
      is corrected, the applicable interest rate on such notes will revert to the
      original level.
See
      also
"Certain Relationships" under "1. Senior Secured Term Loan Facility"
above.
5.
David
                Beré Employment Agreement
On
      July
      6, 2007, the Company entered into an employment agreement with David L. Beré to
      serve as interim Chief Executive Officer until the earlier of (i) the Company's
      appointment of a new Chief Executive Officer or (ii) December 31, 2007. The
      employment agreement may be extended by mutual agreement of the parties for
      a
      period of three months following the date such new chief executive officer's
      employment with the Company commences and may also be extended to provide for
      Mr. Beré 's services as President and Chief Operating Officer. Mr. Beré has also
      elected to participate in the Company's newly established 2007 Stock Incentive
      Plan for Key Employees of Dollar General Corporation and its Affiliates; the
      information set forth in Section 6 of Item 1.01 is incorporated by
      reference into this Section 5.
Mr.
      Beré's annual base salary will be subject to discretionary annual increases upon
      review by the Board of Directors, and Mr. Beré will be eligible to earn an
      annual bonus as a percentage of his base salary with respect to each fiscal
      year, based upon the achievement of annual performance targets established
      by
      the Board of Directors. With respect to the 2007 fiscal year, so long as Mr.
      Beré remains employed through the date required under the Bonus Plan to receive
      payment of a bonus thereunder, Mr. Beré is eligible to earn (i) a threshold
      bonus; (ii) a target bonus; or (iii) a maximum bonus, all defined as a
      percentage of base salary, payable in each case in accordance with the terms
      of
      the Bonus Plan and based on the achievement of certain annual performance
      targets.
If
      the
      term of employment extends beyond the initial term, but not beyond the end
      of
      fiscal year 2008, whether or not Mr. Beré remains employed through the relevant
      date required under the Bonus Plan to receive payments thereunder, the Company
      will provide Mr. Beré with annual bonus opportunities in 2008 that are
      consistent with those applicable to the 2007 fiscal
year,
        pro
        rated for the number of months that the term of Mr. Beré's employment extends
        into fiscal year 2008 relative to 12 months. If the term extends beyond fiscal
        year 2008, Mr. Beré shall be eligible for incentive compensation as determined
        under the Bonus Plan for officers of the Company, based on criteria established
        by the Board of Directors.
If
      Mr.
      Beré's employment is terminated by the Company without "cause" (as defined in
      the agreement) or by Mr. Beré for "good reason" (as defined in the agreement),
      Mr. Beré would, subject to compliance with certain confidentiality,
      non-competition and non-solicitation covenants contained in the agreement and
      execution of a general release of claims on behalf of the Company, be
      (i) entitled to the accrued rights under the Bonus Plan; (ii) an
      amount equal to the product of (x) two times Mr. Beré's base salary in
      effect immediately prior to July 6, 2007, plus (y) two times the amount of
      Mr.
      Beré's annual target bonus amount Mr. Beré was eligible to earn under the Bonus
      Plan as in effect immediately prior to July 6, 2007; and (iii) a lump sum
      payment in an amount equal to two times the annual contribution made by the
      Company for Mr. Beré's participation in Company's benefit programs, as defined
      in the agreement.
6.
2007
                Stock Incentive Plan for Key Employees of Dollar General Corporation
                and
                its Affiliates
In
      connection with the Merger, the Company established the Dollar General
      Corporation 2007 Stock Incentive Plan (the "
Plan
").
      The
      Plan is designed to promote the long term financial interests and growth of
      the
      Company and its subsidiaries by attracting and retaining management and other
      personnel and key service providers with the training, experience and ability
      to
      enable them to make a substantial contribution to the success of the Company's
      business, motivate management personnel by means of growth-related incentives
      to
      achieve long range goals and further the alignment of interests of participants
      with those of the stockholders of the Company through opportunities for
      increased stock, or stock-based ownership in the Company.
The
      Plan
      permits the granting of awards covering 4% of the fully diluted equity of the
      Company immediately after consummation of the Merger. A portion of the options
      under the Plan will vest solely based upon continued employment over a specific
      period of time ("
Time
      Vesting Options
"),
      and a
      portion of the options will vest based both upon continued employment over
      a
      specific period of time and upon the achievement of predetermined performance
      targets over time ("
Performance
      Vesting Options
").
      Options under the Plan will be awarded pursuant to a Stock Option Agreement
      with
      the Company (the "
Option
      Agreement
").
      A
      substantial majority of the options will have an exercise price which is the
      equivalent of $5.00 per share. The Named Executive Officers, David Beré, David
      Tehle, Beryl Buley, Kathleen Guion, and Challis Lowe have been awarded options
      of 2,250,000; 1,100,000; 875,000; 875,000; and 675,000,
      respectively.
7.
Management
                and Indemnity Agreements
On
      July
      6, 2007, upon consummation of the Merger, certain affiliates of the Investors
      entered into a management agreement and an indemnity agreement with the Company.
      Pursuant to the management agreement, such entities are entitled to receive
      an
      aggregate annual management fee of $5 million, which amount will increase 5%
      annually, and reimbursement of out-of-pocket expenses incurred in connection
      with the provision of services pursuant to the agreement. The management
      agreement will continue in effect from year to year, unless terminated upon
      a
      change of control of the Company or in connection with an initial public
      offering of the Company or if the parties mutually agree to terminate the
      agreement. In addition,
pursuant
        to the management agreement, such entities also received aggregate transaction
        fees of $75 million in connection with certain services provided in connection
        with the Merger and related transactions. In addition,the management agreement
        provides that these entities will be entitled to receive a fee equal to 1%
        of
        the gross transaction value in connection with certain subsequent financing,
        acquisition, disposition, and change of control transactions, as well as
        a
        termination fee based on the net present value of future payment obligations
        under the management agreement in the event of an initial public offering
        or
        under certain other circumstances. Pursuant to the terms of the indemnity
        agreement, the Company has agreed to customary exculpation and indemnification
        provisions in favor of these entities and their affiliates.
8.
Rollover
                Agreements
In
      connection with the Merger, certain members of management entered into
      agreements with the Company and/or Parent, pursuant to which they elected to
      invest in the Company, as the surviving corporation in the Merger, through
      a
      cash investment, a rollover of employee stock options, a rollover of shares
      of
      common stock of the Company, or a combination thereof.
9.
Stockholder
                Agreements
In
      connection with the Merger, certain members of management entered into
      stockholder agreements with the Company. The stockholder agreements, among
      other
      things, contain agreements among the parties with respect to restrictions on
      the
      transfer of the shares, including tag along rights, drag along rights,
      registration rights (including customary indemnification provisions) and call
      options and put options.
10.
Supplemental
      Indenture
As
      previously disclosed, Merger
      Sub received the requisite consents to the proposed amendments to the indenture
      pursuant to which the Company's 8 5/8% Notes due June 15, 2010 were issued. On
      July 7, 2006, a supplemental indenture to effect such amendments was executed
      and delivered. The amendments contained in the supplemental indenture have
      now
      become operative upon the Company's purchase of the tendered notes, which
      occurred on July 7, 2006. The amendments contained in the supplemental indenture
      eliminate substantially all of the restrictive covenants contained in that
      indenture. The foregoing summary of the supplemental indenture is qualified
      in
      its entirety by reference to the copy of the supplemental indenture that is
      filed as Exhibit 4.11 to this Current Report on Form 8-K.
Item
      1.02.
Termination of a
      Material Definitive Agreement
.
1.
Existing
      Senior Secured Credit Facilities
In
      connection with the Merger, on July 6, 2007, the Company repaid in full all
      outstanding term loans and revolving loans, together with interest and all
      other
      amounts due in connection with such repayment, under the Seconded Amended and
      Restated Credit Agreement, dated as of June 28, 2006, by and among, the Company,
      the lenders from time to time parties thereto, SunTrust Bank, Bank of America,
      N.A., Keybank National Association, Regions Bank and U.S. Bank National
      Association, (filed as an exhibit to the Company's Current Report on Form 8-K
      dated June 28, 2006 and filed July 3, 2006), as amended by the First Amendment
      to Second Amended and Restated Revolving Credit Agreement, dated as of December
      8, 2006, by and among Dollar General Corporation, the lenders from time to
      time
      parties thereto, SunTrust Bank, Bank of America, N.A., Keybank National
      Association, Regions Bank and U.S. Bank National Association (filed as an
      exhibit to the Company's Annual Report on Form 10-K for the year ended February
      2, 2007) . In addition, in connection with the Merger, commercial letters of
      credit totaling $143,743,672.70 issued by Bank of America, N.A., LaSalle Bank
      National Association and US Bank National Association, and standby letters
      of
      credit totaling $40,692,000 issued by Bank of America, N.A., SunTrust Bank
      (as
      Issuing Bank and Administrative Agent under the Amended and Restated Revolving
      Credit Agreement dated June
30,
        2004)
        and Regions Bank, will be terminated and replaced by new letters of credit
        under
        the Asset Based Credit Facility on July 6, 2007.
2.
David
      Perdue Employment Agreement
As
      previously disclosed, the Company's Chairman and Chief Executive Officer, David
      Perdue, resigned effective upon consummation of the Merger on July 6, 2007.
      Mr.
      Perdue's employment under the terms of his employment agreement with the Company
      was terminated pursuant to such resignation. Mr. Perdue had been employed with
      the Company pursuant to an Amended and Restated Employment Agreement, effective
      as of September 18, 2006, by and between the Company and Mr. Perdue (filed
      as an
      exhibit to the Company's Current Report on Form 8-K dated September 18, 2006 and
      filed September 19, 2006 and incorporated herein by this reference). The Company
      and Mr. Perdue have agreed to treat Mr. Perdue's resignation as being for "Good
      Reason" (as defined in Mr. Perdue's employment agreement). Upon his execution of
      a release, Mr. Perdue will be entitled to certain severance payments and
      benefits which are triggered by a resignation for Good Reason under his
      employment agreement, subject to Mr. Perdue's continued compliance with certain
      terms of the employment agreement (including certain restrictive covenants
      set
      forth therein). He will also be entitled to payments under a supplemental
      executive retirement plan (filed as an exhibit to the Company's Current Report
      on Form 8-K dated and filed January 25, 2006 and incorporated herein by this
      reference).
Item
      2.03.
Creation of a Direct
      Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
      of
      a Registrant.
The
      information set forth in Sections 1, 2 and 3 of Item 1.01 of this Current Report
      on Form 8-K is incorporated by reference into this Item 2.03.
Item
      3.03.
Material Modification
      to Rights of Security Holders.
The
      information set forth in Sections 1, 2, 3, and 4 of Item 1.01. and Item 5.03.
      is
      incorporated by reference into this Item 3.03.
Item
      5.02.
Departure of
      Directors or Principal Officers; Election of Directors; Appointment of Principal
      Officers; Compensatory Arrangements of Certain Officers.
In
      connection with the consummation of the Merger and pursuant to the terms of
      the
      Merger Agreement, each of our directors (other than David Beré) who was a member
      of our Board of Directors immediately prior to the Merger has either resigned
      or
      been removed, and has been replaced with the members of the Board of Directors
      of Merger Sub. Accordingly, our new Board of Directors is comprised of the
      following individuals: Michael Calbert, a member of Kohlberg Kravis Roberts
      & Co. L.P., Raj Agrawal, a principal of Kohlberg Kravis Roberts & Co.,
      L.P., Adrian Jones, a managing director of Goldman, Sachs & Co., and Sumit
      Rajpal, a vice president of Goldman, Sachs & Co. In addition, David Beré
will continue to serve as a director of the Company.
As
      a
      result of their respective positions with affiliates of the Investors, one
      or
      more of the directors may be deemed to have an indirect material interest in
      the
      Management Agreement and Indemnity Agreement, each of which was entered into
      by
      the Company on July 6, 2007, and the information set forth in Section 7 of
      Item
      1.01 is accordingly incorporated by reference into this Item 5.02.
In
      connection with the consummation of the Merger, the Company's Chairman and Chief
      Executive Officer, David A. Perdue has resigned and David Beré, the Company's
      President
and
Chief
        Operating Officer, has been appointed the interim Chief Executive Officer,
        effective as of July 6, 2007, while a search for a new Chief Executive Officer
        is undertaken.
The
      Company has, in connection with Mr. Beré's appointment as interim Chief
      Executive Officer, entered into an amended and restated employment agreement
      with Mr. Beré. In addition, Mr. Beré has, in connection with the consummation of
      the Merger, rolled options or equity stock to acquire common stock of the
      surviving corporation and has entered into a stockholder agreement with the
      Company. He will also, along with the Company's other executive officers and
      certain other employees, participate in the Plan. The information set forth
      in
      Sections 5, 6, 8 and 9 of Item 1.01 of this Current Report on Form 8-K is
      incorporated by reference into this Item 5.02.
Item
      5.03.
Amendments to
      Articles of Incorporation or By-laws; Change in Fiscal
      Year
In
      connection with the consummation of the Merger, the Company's charter and
      by-laws were amended and restated, effective July 6, 2007, so that they read
      in
      the form attached as an exhibit to the Merger Agreement, in the case of the
      charter, and, with respect to the by-laws, in their entirety as the by-laws
      of
      Merger Sub read immediately prior to the effective time of the Merger in
      accordance with the Merger Agreement. Copies of the Company's Amended and
      Restated Charter and Amended and Restated By-laws of the Company are attached
      as
      Exhibits 3.1 and 3.2, respectively, to this Current Report on Form 8-K and
      are
      incorporated herein by reference.
Item
      9.01
Financial
      Statements and Exhibits.
(d)
Exhibits
.
See
      the
      Index of Exhibits that immediately follows the signature page to this Current
      Report on Form 8-K, which is incorporated herein by reference.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
DOLLAR
      GENERAL
      CORPORATION
By:
/s/
      Susan S. Lanigan
Name:
      Susan S. Lanigan
Title:    Executive Vice President and General
      Counsel
Date:
      July 12, 2007
INDEX
      OF EXHIBITS
Number
Exhibit
3.1
Amended
                and Restated Certificate of Incorporation of the
                Company
3.2
Amended
                and Restated By-laws of the Company
4.1
Tenth
                Supplemental Indenture, dated July 6, 2007, among the Company, the
                subsidiary guarantors named therein and U.S. Bank National Association
                (successor to Wachovia Bank, National Association, formerly known
                as First
                Union National Bank).
4.2
Credit
                Agreement, dated as of July 6, 2007, among Dollar General Corporation,
                as
                Borrower, Citigroup North America, Inc., as Administrative Agent,
                and the
                other lending institutions form time to time party
                thereto.
4.3
Guarantee,
                dated as of July 6, 2007, by certain domestic subsidiaries of Dollar
                General Corporation, as Guarantors.
4.4
Security
                Agreement, dated as of July 6, 2007, among Dollar General Corporation
                and
                certain domestic subsidiaries of Dollar General Corporation, as Grantors,
                and Citigroup North America, Inc., as Collateral Agent
.
4.5
Pledge
                Agreement, dated as of July 6, 2007, among Dollar General Corporation
                and
                certain domestic subsidiaries of Dollar General Corporation, as Pledgors,
                and Citigroup North America, Inc., as Collateral Agent.
4.6
ABL
                Credit Agreement, dated as of July 6, 2007, among Dollar General
                Corporation, as Parent Borrower, certain domestic subsidiaries of
                Dollar
                General Corporation, as Subsidiary Borrowers, The CIT Group/Business
                Credit, Inc., as ABL Administrative Agent, and the other lending
                institutions form time to time party thereto.
4.7
ABL
                Security Agreement, dated as of July 6, 2007, among Dollar General
                Corporation and certain domestic subsidiaries of Dollar General
                Corporation, as Grantors, and The CIT Group/Business Credit, Inc.,
                as ABL
                Collateral Agent.
4.8
Senior
                Indenture, dated July 6, 2006, among Buck Acquisition Corp., Dollar
                General Corporation, the guarantors named therein and Well Fargo
                Bank,
                N.A., as Trustee.
4.9
Senior
                Subordinated Indenture, dated July 6, 2006, among Buck Acquisition
                Corp.,
                Dollar General Corporation, the guarantors named therein and Well
                Fargo
                Bank, N.A., as Trustee.
4.10
Registration
                Rights Agreement, dated July 6, 2006, among Buck Acquisition Corp.,
                Dollar
                General Corporation, the guarantors named therein and the initial
                purchasers named therein.
4.11
Form
                of 10.625% Senior Notes due 2015 (included in Exhibit
                4.8)
4.12
Form
                of 11.875% / 12.625% Senior Subordinated Toggle Notes (included in
                Exhibit
                4.9)
10.1
Amended
                and Restated Employment Agreement, dated July 6, 2007, by and between
                Dollar General Corporation and David
                Beré.