Loyalty Terms and Conditions

Fred’s Rewards Club Terms & Conditions
Membership. Fred’s, Inc. (“fred’s”) manages the Fred’s Rewards Club program (“fred’s Rewards”).
Fred’s Rewards Club is a member program that you, the customer member (“Member”) enroll and
participate in to earn rewards (defined below) for qualified purchases (defined below); those rewards
are issued upon reaching the required purchase balance (defined below).

Rewards (“Rewards”) are currently issued to the member’s account in increments of $5. An aggregate of
$50 of qualified purchases (before tax) is required before a $5 reward is issued. Qualified purchases
made on different occasions will be aggregated for purposes of earnings rewards. For example, if a
Member made a $25 qualified purchase on Monday and a $75 qualified purchase on Tuesday, the
Member would earn a $10 reward on Tuesday.

Rewards increment amounts are subject to change at any time without notice. Check www.fredsinc.com
or in-store for details.

Qualifying Purchases (“Qualifying Purchases”) currently includes all items sold in the store except:
• Prescriptions
• Tobacco and tobacco related products
• Alcohol
• Lottery
• Prepaid or Gift cards

This list is not all inclusive and is subject to change. In addition, rewards may not be used to purchase
any of the items listed above. Please check www.fredsinc.com for more information.

Qualifying Purchases are subject to change at any time without notice. Check www.fredsinc.com or instore
for details.

Required Purchase Balance (“Required Purchase Balance”) is currently defined as the combined
qualifying purchase total of $50 before tax. Tax does not contribute to the $50 combined qualifying
purchase total. Fred’s reserves the right to decrease a Member’s qualifying purchase balance, dollar-for-dollar,
in the event a Member returns an item (assuming the purchase of such item had previously
been credited towards such Member’s balance).

Required Purchase Balance is subject to change at any time without notice. Check www.fredsinc.com or
in-store for details.

There is no annual fee for membership in the fred’s Rewards Club.

Members enroll in fred’s Rewards Club by either pre-enrolling their phone number at one of our stores
through the register process and finishing their enrollment online at www.fredsinc.com or by phone
through our customer service team. Members can also enroll their phone number online at
www.fredsinc.com or by phone through our customer service team without pre-enrolling at one of our
stores through the register process. For full enrollment, all enrollments must contain the following
Fred’s Rewards Club Terms & Conditions
information: name, address, phone number, and email address. When the phone number is enrolled,
the Member is assigned a Member Account (“Account”). There is no card issued with this program.

Enter your phone number at check-out to earn rewards on Qualifying Purchases. The Required Purchase
Balance can change. Check www.fredsinc.com for the current Required Purchase Balance. The current
Required Purchase Balance to earn a $5 reward is $50.

Your fred’s Rewards Club account balances are printed on your purchase receipt from any fred’s

Go online at www.fredsinc.com to check your balances and update your account information.
There is no maximum amount of rewards that can be earned. However, fred’s Rewards Club cannot be
used by buying groups, wholesalers, etc. unless pre-approved by fred’s. fred’s reserves the right to issue
rewards in any form, including reward value (fred’s rewards) on the account, coupons, checks and points
on the account. Unless stated otherwise, all reward values are valid for two weeks after their
issuance. No extensions or exchanges will be allowed for expired Rewards.

Fred’s Rewards do not constitute property, do not entitle a member to a vested right or interest and
have no cash value. Fred’s Rewards are not redeemable for cash, transferable or assignable for any
reason. The sale of fred’s Rewards is strictly prohibited. Fred’s Rewards shipped and returned as
undeliverable will be forfeited. The issuance of fred’s Rewards is final except in the event that a
certificate has been issued in error. Lost or stolen fred’s Rewards will not be reissued. Fred’s has the
final and absolute decision.

Members are responsible for taxes, charges or other liabilities related to or resulting from their
participation in the fred’s Rewards Club program.

Eligibility and Changes to Terms and Conditions. Membership is open to legal residents of the 50 U.S.
states, District of Columbia or Puerto Rico, who are at least 18 years of age, except that fred’s Business
Account Customers, State, Municipal and Federal Government accounts and resellers are not eligible to
participate in the Program unless pre-approved by fred’s.

By participating the fred’s Rewards Club program, you consent to these terms and conditions (“Terms”)
of this Program. Any changes to the Terms will be effective immediately up posting at

Account Restrictions. fred’s may terminate your account and/or not issue/cancel fred’s Rewards Club
rewards if you violate these Terms.

Fred’s reserves the right, in its sole discretion, to modify, limit or terminate the Program and/or Reward
Redemption values, or any portion thereof, at any time, without prior written notice.
We reserve the right to cancel or limit any purchase or offer redemption made 1) contrary to the terms
of each offer, discount, promotion or coupon; 2) that otherwise is not in compliance with the Terms of
the Program or our Terms of Use; 3) that violates any applicable local, state and federal law; or 4) that
we believe is fraudulent or made through improper channels.

Your Member information will not be sold or rented to any company outside of fred’s and its affiliated
companies. In order to facilitate your account, we may share your information with our trusted vendors,
who have agreed to keep your information confidential. Your information will be used for the purpose
of account maintenance, improving not only your customer experience but also the range and types of
products and services offered by us to you, as well as to notify you of special offers, promotions, and/or
catalogs which may be of interest to you. Of course, we will comply will all applicable laws regarding
information access by federal and state authorities and may use such information to protect the
integrity of the Program or the safety of the Members.

Additionally, by participating in fred’s Rewards Club, you affirmative consent to (i) receiving emails from
us at the email address associated with your fred’s Rewards Club account (unless you later withdraw
your consent to receive commercial emails), (ii) our requesting (with the understanding that you may
refuse our request), recording, using and keeping, for as long as we deem necessary, your personally
identifiable information (including your first name, last name, mailing address, zip code, telephone
number, and email address) as such information is required, or deemed necessary by us, for the
purposes of fulfilling your requests that we service your fred’s Rewards Club account (including, but not
limited to, your requests that we establish your fred’s Rewards Club account, look up or edit your fred’s
Rewards Club account information or associate a purchase with your fred’s Rewards Club account), (iii)
our requesting (with the understanding that you may refuse our request) the phone number associated
with your fred’s Rewards Club account when you purchase goods at a participating fred’s store so that
you may receive fred’s Rewards Club benefits and (iv) our compiling information about items you
purchased from us.

If you do not wish to have your Member information utilized in this manner, you may cancel your
participation in the fred’s Rewards Club at any time by written request to fred’s, fred’s Rewards Club
Program, 4300 New Getwell Road Memphis, TN 38118.

Fred’s assumes no responsibility for errors caused by incorrect Member information.
While we make every effort to provide accurate information, inaccuracies or errors may occur. We are
not responsible for such errors. We reserve the right to make changes, corrections, and/or
improvements to the information and to the products and programs described in such information, at
any time without notice.

The interpretation and application of the Terms are the sole discretion and determination of fred’s,
which in each case shall be final and conclusive.
The laws of the State of Tennessee, without regard to its conflict of laws rules, will govern the Terms, as
well as your and our observance of them. If you take any legal action relating to your use of the fred’s
Rewards Club program or the Terms, you agree to file such action only in the state and federal courts
located inMemphis, Tennessee.

Fred’s Rewards Club Terms & Conditions
If fred’s fails to act with respect to your breach or anyone else’s breach on any occasion, fred’s is not
waiving its right to act with respect to future or similar breaches.

The Terms, together with those items made as part of these terms by reference, make up the entire
agreement between us relating to the fred’s Rewards Club program, and replaces any prior
understandings or agreement (whether oral or written) regarding the fred’s Rewards Club program. If a
court finds any of the Terms to be unenforceable or invalid, that Term will be enforced to the fullest
extent permitted by applicable law and the other Terms will remain valid and enforceable. Fred’s
Rewards Club is void where prohibited by law.

By participating in the fred’s Reward Club program, you are deemed to unconditionally accept all terms,
conditions, and standards for the fred’s Reward Club program, as may be amended from time to time, in
fred’s sole and absolute discretion. Please read carefully before participating in the fred’s Rewards Club

Your continued participation in the fred’s Rewards Club program constitutes your acceptance of the
Membership Agreement and all changes made to the Membership Agreement. You are responsible for
remaining knowledgeable as to any change that we may make to the Membership Agreement. The most
current version of the Membership Agreement will be available on www.fredsinc.com and will
supersede all previous versions of the Membership Agreement.

We reserve the right to discontinue the participation privileges of any person who engages in fraudulent
activity or uses fred’s Reward Club program in a manner inconsistent with the Membership Agreement
or any federal, state or local laws, regulations or ordinances.

Discontinued participation privileges may result in the loss of all accumulated Qualifying Purchase
Balances, Rewards balances, and other benefits. In addition to discontinuance of participating privileges,
we shall have the right to take appropriate administrative and/or legal action, including criminal
prosecution, as we deem necessary in our sole discretion.

If you do not make a Qualifying Purchase during any consecutive 24-month period, your membership in
fred’s Reward Club will be terminated and we will not be obligated to provide you with the fred’s
rewards after the termination date. If you re-enroll in fred’s Rewards Club or create a separate
membership, you may not transfer any Qualifying Purchase balances to your new fred’s Rewards Club

We reserve the right to terminate fred’s Rewards Club at any time, for any reason, even though
termination may adversely affect your ability to accrue Qualifying Purchases or use the fred’s Rewards.
You will have the lesser of the then remaining term of the fred’s Rewards or 30 days from the date fred’s
Rewards Club termination is announced to use any unexpired discounts your earned during the term of
fred’s Rewards Club.

All questions or disputes regarding eligibility for fred’s Rewards Club program, earning of Qualifying
Purchases, earning or use of fred’s rewards, interpretation of the Membership Agreement, use of the
Fred’s Rewards Club Terms & Conditions

fred’s Rewards Club program, or a participant’s compliance with the Membership Agreement will be
resolved by fred’s in our sole and absolute discretion.