# EDGAR Filing Document

**Accession Number:** 0000084129
**File Stem:** 0001104659-23-002338
**Filing Date:** 2023-1
**Character Count:** 64078
**Document Hash:** 5d5241aa4c9bdba96933c603b5e9dbff
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-002338.hdr.sgml**: 20230109

**ACCESSION NUMBER**: 0001104659-23-002338

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230107

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230109

**DATE AS OF CHANGE**: 20230109

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RITE AID CORP
- **CENTRAL INDEX KEY:** 0000084129
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-DRUG STORES AND PROPRIETARY STORES [5912]
- **IRS NUMBER:** 231614034
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0304

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-05742
- **FILM NUMBER:** 23518976

**BUSINESS ADDRESS:**
- **STREET 1:** 1200 INTREPID AVENUE, 2ND FLOOR
- **CITY:** PHILADELPHIA
- **STATE:** PA
- **ZIP:** 19112
- **BUSINESS PHONE:** 7177612633

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 3165
- **CITY:** HARRISBURG
- **STATE:** PA
- **ZIP:** 17105

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RACK RITE DISTRIBUTORS
- **DATE OF NAME CHANGE:** 19680510

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LEHRMAN LOUIS & CO
- **DATE OF NAME CHANGE:** 19680510

?xml version="1.0" encoding="utf-8"?

**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):

 **January 7, 2023**

**Rite Aid Corporation**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **1-5742** | **23-1614034** |
| (State or Other Jurisdiction<br> of Incorporation) | (Commission File Number) | (IRS Employer<br> Identification Number) |

---

**P.O. Box 3165**

**Harrisburg, Pennsylvania 17105**

(Address of principal executive offices, including zip code)

**(717) 761-2633**

(Registrant's telephone number, including area code)

**N/A**

(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. below):

◻ 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))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which<br> registered** |
| Common Stock, $1.00 par value | RAD | The New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp; ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 5.02.** | **Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.** |

---

On January 7, 2023, Rite Aid Corporation (the "Company") and Heyward Donigan, the Company's President and Chief Executive Officer ("CEO"), mutually agreed to terms pursuant to which Ms. Donigan ceased to serve as CEO and terminated employment with the Company, effective immediately. Elizabeth (Busy) Burr, a member of the Company's Board of Directors (the "Board"), was appointed as the Company's interim CEO. It is anticipated that Ms. Burr will serve as interim CEO until a permanent CEO is appointed.

Ms. Burr, age 61, has served as a member of our Board since 2019. Ms. Burr served as President and Chief Commercial Officer at Carrot Inc., a digital health care company with solutions that combine behavioral science, clinical expertise, and proprietary technology, from 2019 through 2021. Ms. Burr served as the Chief Innovation Officer and Vice President of Healthcare Trend and Innovation at Humana from 2015 to 2018, where she led the design, build, and adoption of new product platforms in digital health, provider experience, and telemedicine. Ms. Burr was the Founder of Humana Health Ventures, Humana's strategic venture investing practice. She served as Managing Director of Citi Ventures, Citigroup's global venture group, from 2011 to 2015. Prior to Citigroup, she spent seven years in investment banking at Morgan Stanley and Credit Suisse First Boston. Ms. Burr previously served as the Vice President of Global Brand Management at Gap, Inc., where she was responsible for aligning the product, store, online, advertising, and merchandising efforts for the four Gap brands around the world. Ms. Burr holds an M.B.A from Stanford University and a B.A. in Economics from Smith College. Ms. Burr is a member of the boards of directors of Mr. Cooper Group Inc., a company that provides mortgage servicing, origination, and transaction-based services, Satellite Healthcare, a nonprofit provider of kidney dialysis services, and SVB Financial Group, a company that offers commercial, investment and private banking, asset management, private wealth management, brokerage and investment services and funds management services to companies in the technology, life sciences and health care, private equity and venture capital, and premium wine industries.

*Donigan Separation Agreement and Release*

The Company entered into a separation agreement and release with Ms. Donigan (the "Donigan Separation Agreement") in connection with her departure from the Company on January 7, 2023. The circumstances of Ms. Donigan's termination of employment qualify her for severance benefits under the terms of Ms. Donigan's employment agreement with the Company, entered into on August 8, 2019 in connection with her hire (the "Employment Agreement"). The Employment Agreement was previously filed by the Company as Exhibit 10.1 to the Form 8-K on August 12, 2019. In addition to the severance benefits provided under the Donigan Separation Agreement, which are governed by Section 5.3 of the Employment Agreement, Ms. Donigan will be reimbursed for her legal fees of up to $10,000 pursuant to the terms of the Donigan Separation Agreement. The Company's provision of the severance benefits under the Employment Agreement are subject to Ms. Donigan's execution and nonrevocation of a release of claims in favor of the Company and Ms. Donigan's compliance with certain restrictive covenant provisions, each as provided by the Donigan Separation Agreement.

The above description of the Donigan Separation Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Donigan Separation Agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated into this Item 5.02 by reference.

*Burr Offer Letter*

The Company entered into an offer letter with Ms. Burr (the "Burr Offer Letter"), in connection with her appointment as interim CEO, effective as of January 7, 2023. The Board and Ms. Burr have agreed that Ms. Burr's base salary for the term she serves as interim CEO is at a rate of $300,000 per month, subject to applicable withholdings. Ms. Burr will not receive any other compensation or benefits from the Company for serving as interim CEO and while she is interim CEO, she will not receive the compensation payable to non-employee members of the Board. For example, Ms. Burr will not participate in or receive benefits under the Company's employee benefit plans and programs (including, but not limited to, the Company's bonus incentive plans, 401(k) plan, group medical, dental and vision insurance plans). If Ms. Burr serves as interim CEO for more than six (6) full months, the Board will review the monthly salary and consider in good faith whether to increase the monthly salary for interim CEO service in excess of six (6) months.

There are no other arrangements or understandings between Ms. Burr and any other persons pursuant to which Ms. Burr was appointed as interim CEO of the Company. There are no family relationships between Ms. Burr and any director or executive officer of the Company, and she has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

The foregoing summary of the Burr Offer Letter does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Burr Offer Letter, a copy of which is attached hereto as Exhibit 10.2 and is incorporated into this Item 5.02 by reference.

*Board and Committee Changes*

In connection with her ceasing to serve as President and CEO, Ms. Donigan has resigned from the Board, effective immediately.

As a result of Ms. Burr's appointment as interim CEO, the Board appointed Robert E. Knowling, Jr. to the Audit Committee of the Board to replace Ms. Burr. All such changes were effective January 7, 2023.

A copy of the related press release announcing the CEO transition is attached hereto as Exhibit 99.1

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

---

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Description** |
| [10.1\*](tm232668d1_ex10-1.htm) | [Separation Agreement and Release between the Company and Heyward Donigan, dated as of January 7, 2023.](tm232668d1_ex10-1.htm) |
| [10.2\*†](tm232668d1_ex10-2.htm) | [Employment Offer Letter between the Company and Elizabeth ("Busy") Burr, dated as of January 7, 2023.](tm232668d1_ex10-2.htm) |
| [99.1\*](tm232668d1_ex99-1.htm) | [Press Release issued by Rite Aid Corporation dated January 9, 2023.](tm232668d1_ex99-1.htm) |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL) document. |

---

\*Furnished herewith

† Certain portions of this exhibit have been redacted pursuant to Item 601(a)(6) of Regulation S-K and marked by brackets and asterisks. The Company hereby undertakes to furnish supplementally an unredacted copy of the exhibit upon request by the Securities and Exchange Commission.

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 hereto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: January 9, 2023 | By: | /s/ Matthew C. Schroeder |
|  | Name: Matthew C. Schroeder | Name: Matthew C. Schroeder |
|  | Title: Executive Vice President and Chief Financial Officer | Title: Executive Vice President and Chief Financial Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**Severance Agreement and Release**

This Agreement (this "<u>Agreement</u>") confirms the terms of the separation of employment of Heyward Donigan ("<u>you</u>") from Rite Aid Corporation (the "<u>Company</u>," and together with you, the "<u>Parties</u>"). Capitalized terms not otherwise defined herein will have the meanings attributed to them in your employment agreement with the Company, effective as of August 8, 2019 (the "<u>Employment Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Separation Date</u>. Your last day of employment with the Company will be January 7, 2023 (the "<u>Separation Date</u>") and as of such date you shall cease to be employed by the Company in any capacity and you automatically resign from all positions you then hold with the Company and its subsidiaries including as a member of the Board of Directors of the Company (as well as of the Board of Directors of any of the Company's controlled subsidiaries), to the extent applicable. You agree to execute the resignation letter attached hereto as <u>Appendix A</u> and any additional document required or requested by the Company to effectuate such resignations. You agree that, following the Separation Date, you will not represent yourself to be associated in any ongoing capacity with the Company or any of its controlled subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Accrued Benefits; Severance; Equity Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whether or not this Agreement becomes effective pursuant to its terms, the Company will pay you Accrued Benefits (as defined in <u>Appendix B</u> hereto), and pay in lieu of notice, as set forth in item 2(e) of <u>Appendix B</u> hereto, less all applicable withholdings and deductions. You acknowledge that there is no accrued or unpaid vacation payable to you under the Company's unlimited paid time off policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Provided that this Agreement becomes effective pursuant to its terms and you remain in compliance with this Agreement, and with the Restrictive Covenants, at all times, the Company will pay and provide you with the cash severance benefits set forth on <u>Appendix A</u> items 2(a) through 2(d), less all applicable withholdings and deductions, at the time and in the form set forth on <u>Appendix A</u> for each item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company previously granted you equity award(s) to purchase or receive shares of the Company's common stock (each, an "<u>Equity Award</u>"), in accordance with the terms of the applicable Company equity plan(s) and the award agreement evidencing such Equity Award (collectively, the "<u>Equity Documents</u>"). Provided that this Agreement becomes effective pursuant to its terms and you remain in compliance with this Agreement, and with the Restrictive Covenants, at all times, as illustrated by <u>Appendix C</u> hereto: (i) any unvested stock option awards held by you pursuant to your Employment Inducement Award Agreement with the Company, dated as of August 12, 2019, shall vest and become immediately exercisable (ii) restrictions with respect to any awards of time-based restricted stock held by you pursuant to your Award Agreements with the Company, dated as of July 8, 2020, July 7, 2021 and July 27, 2022 shall lapse, in the case of (i) and (ii), to the extent such options would otherwise have become vested and exercisable (based solely on continued employment) and such restrictions would have lapsed (based solely on continued employment) had you remained in the employ of the Company for a period of two years following the Separation Date and (iii) the portion of your stock option awards that vest and become exercisable in accordance with subclause (i) hereof (together with any portion of your stock options that have vested and become exercisable prior to the Separation Date) shall remain exercisable for a period of ninety (90) days following the Separation Date. All other Equity Awards (whether or not shown on Appendix C) held by you as of the Separation Date shall be forfeited in accordance with the terms of the applicable Equity Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Release</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You hereby release, discharge and forever acquit the Company, and its subsidiaries and each of their respective past, present and future stockholders, members, partners, directors, managers, employees, agents, attorneys, heirs, legal representatives, and each of the successors and assigns of the foregoing, in their personal and representative capacities (individually, "<u>Company Party</u>," and collectively, the "<u>Company Parties</u>"), from liability for, and hereby waive, any and all claims, charges, liabilities, causes of action, rights, complaints, sums of money, suits, debts, covenants, contracts, agreements, promises, benefits, obligations, damages, demands or liabilities of every nature, kind and description, in law, equity or otherwise, whether <u>known or unknown</u>, <u>suspected or unsuspected</u> (collectively, "<u>Claims</u>") which you or your heirs, executors, administrators, spouse, relatives, successors or assigns ever had, now have or may hereafter claim to have by reason of any matter, cause or thing whatsoever: (i) arising from the beginning of time through the date upon which you sign this Agreement including, but not limited to (A) any such Claims relating in any way to your employment relationship with the Company or any other Company Parties, and (B) any such Claims arising under any federal, state, local or foreign statute or regulation, including, without limitation, the Age Discrimination in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act (the "<u>ADEA</u>"), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Pennsylvania Human Relations Act, the Pennsylvania Equal Pay Law, . the Florida Civil Rights Act, the Florida Whistleblower Protection Act, the Florida Workers' Compensation retaliation provision, the Florida Minimum Wage Act, Article X, Section 24 of the Florida Constitution, the Florida Fair Housing Act and any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be legally waived and released; (ii) relating to wrongful employment termination; or (iii) arising under or relating to any policy, agreement, understanding or promise, written or oral, formal or informal, between the Company or any of the other Company Parties and you, including, without limitation, the Employment Agreement and any incentive compensation plan or equity plan with any Company Party. Notwithstanding the above, this release does not extend to (I) claims for Accrued Benefits; (II) claims for worker's compensation benefits or for an occupational disease; (III) any whistleblower claims arising under the Sarbanes-Oxley Act or Dodd-Frank Wall Street Reform and Consumer Protection Act; (IV) claims to require the Company to honor its commitments set forth in this Agreement; (V) claims to interpret or to determine the scope, meaning or effect of this Agreement; (VII) claims for indemnification and officers and directors liability insurance coverage under the Employment Agreement, the Company's charter, by-laws or applicable law, as applicable; and/or (VIII) claims that cannot be waived as a matter of law pursuant to federal, state, or local law (collectively, clauses (I) through (VIII) are the "<u>Excluded Claims</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) You further acknowledge and agree that, except with respect to the Accrued Benefits, the Company Parties have fully satisfied any and all obligations whatsoever owed to you arising out of your employment with the Company or any other Company Party, and that no further payments or benefits are owed to you by the Company or any other Company Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Attorney Consultation; Voluntary Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You acknowledge that (i) the Company has advised you to consult with an attorney of your own choosing before signing this Agreement, (ii) you have been given the opportunity to seek the advice of counsel, (iii) you have carefully read and fully understand all of the provisions of this Agreement, including the release in Section 3 (the "<u>Release</u>"), (iv) the Release specifically applies to any rights or claims you may have against the Company Parties pursuant to the ADEA, (v) you are entering into this Agreement knowingly, freely and voluntarily in exchange for good and valuable consideration to which you are not otherwise entitled and (vi) you have the full power, capacity and authority to enter into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Review and Revocation Period</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You have twenty-one (21) days following your receipt of this Agreement (the "<u>Consideration Period</u>") to review its terms, including the Release, and to reflect upon them and consider whether you want to sign it, although you may sign it sooner; <u>provided</u>, <u>however</u>, that you may not sign this Agreement prior to the Separation Date. You acknowledge and agree that changes to this Agreement, whether material or immaterial, do not restart the running of the Consideration Period. You understand and agree that you may consent to this Agreement, including the Release, by signing and returning this Agreement within the applicable time frame to Paul D. Gilbert, EVP, Chief Legal Officer and Secretary, Rite Aid Corporation, 200 Newberry Commons, Etters, PA 17319 or by e-mail to paul.d.gilbert@riteaid.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) You may revoke your consent to the Release within the seven day period beginning on the date you execute this Agreement (such seven day period being referred to herein as the "<u>Release Revocation Period</u>"). To be effective, such revocation must be in writing signed by you and delivered to the Company at the above address before 11:59 p.m., Eastern Standard time, on the last day of the Release Revocation Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of such revocation by you, the Release shall be of no force or effect, and you will not have any rights and the Company will not have any obligations under Section 2(b) or Section 2(c) of this Agreement. Provided that you do not revoke your consent to the Release within the Release Revocation Period, the Release shall become effective on the eighth (8th) calendar day after the date upon which you execute this Agreement (the "<u>Release Effective Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Restrictive Covenants</u>. You acknowledge and agree that the Restrictive Covenants, and any other written restrictive covenants and confidentiality agreements in effect with the Company, are incorporated herein by reference and fully made a part hereof for all purposes and remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Cooperation</u>. You agree that, at mutually agreeable times, you will meet with representatives of the Company, or its respective parent or subsidiary company representatives and provide any information you acquired during the course of your employment relating in any way to any legal disputes involving the Company. You further agree that you will cooperate fully with the Company relating to any such litigation matter or other legal proceeding in which you were involved or on which you have knowledge by virtue of your employment with the Company, including any existing or future litigation or other legal proceeding involving the Company, whether administrative, civil or criminal in nature in which and to the extent the Company deems your cooperation necessary. You will be entitled to reimbursement by the Company of reasonable costs and expenses incurred by you in connection with complying with your obligations under this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Non-Disparagement</u>. You agree that you will not make any negative comments or disparaging remarks, in writing, orally or electronically ("<u>Disparaging Remarks</u>"), about the Company or any of the other Company Parties and their respective products and services. The Company agrees to instruct members of its senior management team and its current Board of Directors not to, for as long as such individuals remain affiliated with the Company, make any Disparaging Remarks about you; <u>provided</u>, <u>however</u>, that nothing in this Section 8 shall prohibit you from (a) making truthful and accurate statements or disclosures that are required by applicable law or legal process; (b) making any voluntary disclosure of information or documents concerning possible violations of law to any governmental agency or legislative body, or any self-regulatory organization; or (c) exercising protected rights to the extent that such rights, by law, cannot be waived by agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>No Admission</u>. Nothing herein will be deemed to constitute an admission of wrongdoing by you or any of the Company Parties. Neither this Agreement nor any of its terms may be used as an admission or introduced as evidence as to any issue of law or fact in any proceeding, suit or action, other than an action to enforce this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Counterparts</u>. This Agreement may be executed in counterparts, and each counterpart, when so executed and delivered, will be deemed to be an original and both counterparts, taken together, will constitute one and the same Agreement. A faxed or .pdf-ed signature will operate the same as an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Successors and Assigns</u>. This Agreement will inure to the benefit of and be binding upon the Company and any successor organization which shall succeed to the Company by acquisition, merger, consolidation or operation of law, or by acquisition of assets of the Company and any assigns. You may not assign this Agreement, provided that in the event of your death prior to receiving all of the payments provided by Section 2 of this Agreement, any remaining payments will be made to your estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Severability; Blue-Penciling</u>. The provisions of this Agreement are severable and the invalidity of any one or more provisions will not affect the validity of any other provision. In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in whole or in part because of the scope thereof, the Parties hereto agree that said court in making such determination shall have the power to reduce the scope of such provision to the extent necessary to make it enforceable, and that this Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Governing Law</u>. This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to any conflict of law principles thereof that would give rise to the application of the laws of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Entire Agreement/No Oral Modifications</u>. This Agreement constitutes the entire agreement between you and any of the Company Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, representations, arrangements or agreements relating thereto, whether written or oral, including but not limited to the Employment Agreement, <u>provided</u>, <u>however</u>, that Sections 4.6, 6 and 7 of the Employment Agreement shall remain in effect for the duration and on the terms set forth therein. You represent that in executing this Agreement, you have not relied on any representation or statement not set forth herein. No amendment or modification of this Agreement shall be valid or binding on the Parties unless in writing and signed by both Parties.

[Remainder of Page Left Intentionally Blank]

IN WITNESS WHEREOF, the Parties have signed this Agreement as of the dates indicated below.

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| | | |
|:---|:---|:---|
| **Rite Aid Corporation** | **Rite Aid Corporation** | **Heyward Donigan** |
| By: | /s/ Paul D. Gilbert | /s/ Heyward Donigan |
| Name: Paul D. Gilbert | Name: Paul D. Gilbert | Heyward Donigan |
| Title: EVP, Chief Legal Officer and Secretary | Title: EVP, Chief Legal Officer and Secretary | Date: January 7, 2023 |
| Date: January 7, 2023 | Date: January 7, 2023 |  |

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**<u>APPENDIX A</u>**

January 7, 2023

Rite Aid Corporation

1200 Intrepid Avenue, 2nd Floor

Philadelphia, Pennsylvania 19112

To Whom it may Concern:

I hereby irrevocably resign, effective as of January 7, 2023, from all positions and offices I hold with the Company and its subsidiaries, including without limitation as a director and as Chief Executive Officer of the Company and of Elixir Insurance.

Very truly yours,

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| |
|:---|
| /s/ Heyward Donigan |
| Heyward Donigan |

---

**<u>APPENDIX B</u>**

**<u>ACCRUED BENEFITS AND SEVERANCE BENEFITS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. *Accrued Benefits*: The Company will pay you (i) your Base Salary earned through the Separation
 Date; (ii) any reimbursements owed to you pursuant to Section 4.2 of the Employment
 Agreement for expenses incurred prior to the Separation Date; and (iii) the amounts
 accrued and credited to your account under the Company's 401(k) Savings Plan in
 accordance with the terms and conditions of such employee benefit plans, programs or arrangements
 (the "**Accrued Benefits** ").

&nbsp;&nbsp;&nbsp;&nbsp;2. *Severance Benefits*: You will be paid or provided with the following payments/benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. $7,107,000 representing two (2) times the sum of your current Base Salary and Annual Target
 Bonus, payable in equal installments over the two year period following the Release Effective
 Date in accordance with the Company's regular payroll practices, commencing with the
 first regular payroll date that occurs after the Release Effective Date. Notwithstanding
 the foregoing, to the extent necessary to avoid adverse tax consequences, and except as described
 below, any payment to which you become entitled under the Agreement, or any arrangement or
 plan referenced in this Agreement, that constitutes "deferred compensation" under
 Internal Revenue Code Section 409A (" <u>409A</u> "), and is (a) payable
 upon your termination of employment; (b) at a time when you are a "specified employee"
 as defined by 409A shall not be made until the first payroll date after the earliest of:
 (1) the expiration of the six (6) month period (the " <u>Deferral Period</u> ")
 measured from the date of your "separation from service" within the meaning of
 such term under 409A; or (2) your date of death following such separation from service.
 Upon the expiration of the Deferral Period, any payments that would have otherwise been made
 during that period (whether in a single sum or in installments) will be paid in a single
 cash lump sum payment to you (or your beneficiary, as applicable). Each installment or amount
 to be paid or benefit to be provided to you will be construed as a "separate identified
 payment" for purposes of 409A to the fullest extent permitted therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Payment
 of your pro rata annual bonus for FY 2023 based on actual performance following determination
 by the Compensation Committee (or the Board) that the Company has achieved or exceeded its
 annual performance targets for the fiscal year, paid at the same time as annual performance
 bonus amounts are paid to the Company's similarly situated active associates generally
 in respect of FY 2023, determined by multiplying the performance level achieved (relative
 to your Annual Target Bonus) by the fraction (x) the numerator of which is the number
 of fiscal periods (months) in which you were employed during the fiscal year and (y) the
 denominator of which is 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. $37,412.64, representing payments equal to the aggregate cost of COBRA continuation coverage in
 respect of medical, vision and dental coverage for you and your eligible dependents for two
 (2) years following the Separation Date paid in a lump sum within ten (10) days
 following the Release Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Reimbursement
 of your legal fees incurred in connection with the review of this Agreement, not in excess
 of $10,000, subject to your submission of the invoice for the legal services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. $97,356.16 representing payment of thirty (30) days' Base Salary in lieu of the notice
 period provided in the Employment Agreement, payable in a lump sum as soon as practicable
 following the Separation Date in accordance with the Company's regular payroll schedule.

**<u>APPENDIX C</u>**

**<u>Heyward Donigan Outstanding LTI Awards</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Award <br> Type | Grant<br> Date | Total<br> Shares<br> Granted | Vested | Unvested | Forfeited <br>(Y/N) | Total Shares<br> Accelerated | Exercise<br> Price<br> Per <br> Share |
| RSA\* | 8/12/2019 | 284900 | 284900 |  | No |  |  |
| RSA\* | 7/8/2020 | 150334 | 100223 | 50111 | No | 50111 |  |
| RSA\* | 7/7/2021 | 206038 | 68680 | 137358 | No | 137358 |  |
| RSA\* | 7/27/2022 | 429858 |  | 429858 | No | 286572 |  |
| Options\*\* | 8/12/2019 | 502913 | 377185 | 125728 | No | 125728 | $7.02 |
| PSU | 7/8/2020 | 183742 |  | 183742 | Yes |  |  |
| PSU | 7/7/2021 | 251824 |  | 251824 | Yes |  |  |
| PSU | 7/27/2022 | 525383 |  | 525383 | Yes |  |  |

---

\*Accelerated vesting as of the Separation Date with respect to those time-based restricted stock awards that would have vested within the two (2) year period following the Separation Date.

\*\*Accelerated vesting as of the Separation Date with respect to those stock options that would have vested within the two (2) year period following the Separation Date. Any vested stock options shall remain exercisable for a period of ninety (90) days following the Separation Date.

## Exhibit 10.2

**Exhibit 10.2**

**RITE AID CORPORATION**

1200 Intrepid Avenue, 2nd Floor

Philadelphia, Pennsylvania 19112

January 7, 2023

Busy Burr

[\*\*\*]

Dear Busy:

We very much appreciate your willingness to serve as the Interim Chief Executive Officer of Rite Aid Corporation (the "Company"). The Company's Board of Directors (the "Board") believes that you are uniquely qualified to be the Company's Interim Chief Executive Officer ("ICEO"). This agreement (the "Agreement") sets forth the terms and conditions of your employment as ICEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Duties**. Effective as of January 7, 2023, you will serve as the ICEO. While you are ICEO, you will perform such duties and have such authority as is customary for persons situated in similar executive capacities and as may from time to time reasonably be assigned to you by the Company's Board of Directors (the 'Board'). As ICEO, you will remain a member of the Board and your term as a member of the Board will not be shortened or lengthened merely because you serve as ICEO. You agree to serve the Company faithfully, diligently and competently as ICEO. As ICEO, you will devote your full working time, energy and skill to the Company's business, <u>provided,</u> that you will be permitted to (a) continue to serve as a member of the company boards of directors (public, private, and profit or non-profit) on which you currently serve (subject to the Company's policies and code of conduct), and (b) serve in any capacity with any professional, educational, philanthropic, public interest, charitable or community organization, in the case of each of clauses (a) and (b), so long as such activities are reasonable and customary and do not significantly interfere or conflict with your duties and obligations as ICEO. During your term as ICEO, you will also be able to take reasonable paid time off for vacation and other personal reasons, subject to any guidelines or policies approved by the Board from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Compensation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company will pay you a monthly salary of $300,000 while you are ICEO, less applicable withholdings and payable in accordance with the Company's customary payroll practices from time to time in effect. You will receive this salary for each calendar month (or any part of any calendar month) during which you are ICEO. If you serve as ICEO more than six (6) full months, the Board will promptly review your monthly salary and consider in good faith whether to increase your monthly salary for your ICEO service in excess of six (6) months. As part of that review, you and the Company also will consider in good faith entering into an employment agreement regarding your continued service as ICEO, which agreement may include the Company's standard employment terms and conditions for senior executives. While you are ICEO, you will not be eligible to earn or receive the compensation that otherwise is payable to non-employee members of the Board. If you remain a member of the Board following your service as ICEO, your compensation as a non-employee member of the Board will immediately be reinstated upon the termination of such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Company will reimburse you for all reasonable, documented out-of-pocket business and travel expenses incurred by you in connection with the performance of your duties hereunder, in accordance with the policies and procedures then in effect and established by the Company for other senior executives and members of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Other than as provided above in this Section 2, you will not receive any compensation or benefits from the Company for serving as ICEO. Accordingly, you will not participate in or receive benefits under the Company's employee benefit plans and programs (including, but not limited to, the Company's bonus incentive plans, 401(k) plan, group medical, dental and vision insurance plans).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **At-Will Employment.** Your employment by the Company as Interim Chief Executive Officer is for no specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice. As an employee of the Company you will be subject to, and required to abide by, the Company's rules, standards and policies as may be adopted or amended from time to time. Once your employment as ICEO ends, you will be deemed to have resigned from all positions with the Company and its affiliates, except that you will remain a member of the Board for the remainder of your current term and for any subsequent term for which you are nominated, elected and agree to serve. You agree to cooperate with the Company in documenting such resignation(s) and will promptly complete and return to the Company all documents reasonably specified by the Company for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Confidentiality.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. During or after your employment by the Company and thereafter, you agree that you will not, whether alone or in association with any other person, directly or indirectly, knowingly divulge, furnish or make accessible to any third person or organization other than in the regular good faith course of the Company's business any confidential information concerning the Company or its subsidiaries or its or their business, including, without limitation, confidential methods of operation and organization, confidential sources of supply and customer or other mailing lists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The provisions of this paragraph 4 will survive the end of the term of your employment hereunder. You acknowledge that any remedy at law for a breach or threatened breach of any of the provisions of this paragraph 4 may be inadequate and that accordingly the Company will be entitled to seek an injunction or specific performance or any other mode of equitable relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company will pay or reimburse you for reasonable documented legal fees incurred in connection with the negotiation of and entry into this Agreement, in an amount not to exceed $3,000.00. All such payments or reimbursements will occur in 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Company will indemnify you during and for your service as ICEO to the maximum extent permitted by statute or common law, including, without limitation, under the Company's Certificate of Incorporation and Bylaws on terms no less favorable than provided to any other executive officer or member of the Board, and you will continue to be covered by the Company's Directors and Officers liability insurance policies in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Any notice or other communication required or permitted to be given hereunder will be deemed to have been duly given when personally delivered or when sent by registered mail, return receipt requested, postage prepaid, as follows:

If to the Company, at:

Rite Aid Corporation<br> 1200 Intrepid Avenue, 2nd Floor

Philadelphia, Pennsylvania 19112

If to you, at:

Your home address on file with the Company

Either party hereto may change its or their address for the purpose of this paragraph by written notice similarly given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Neither party hereto may assign its rights or delegate its duties hereunder, except that the Company may assign its rights hereunder to any person that acquires substantially all of the business and assets of the Company (whether by merger, consolidation, purchase of assets or other acquisition transaction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. This agreement will be construed and enforced in accordance with the internal laws of the State of California, without regard to principles of conflicts of laws. Nothing in this agreement will create, or be deemed to create, any third-party beneficiary rights in any person, including, without limitation, any employee of the Company other than you. You agree that all actions or proceedings relating to this agreement will be litigated only in an appropriate State or Federal court located in the County of San Mateo or the County of Santa Clara, State of California. You hereby irrevocably submit to the exclusive jurisdiction of such courts for the purpose of any such action or proceeding. The prevailing party in any such litigation shall be entitled to recover its/her attorneys' fees and court costs from the losing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. If any provision of this agreement will be held to be invalid or unenforceable, such invalidity or unenforceability will attach only to such provision and will not affect or render invalid or unenforceable any other provision of this agreement, and this agreement will be construed as if such provision had been drawn so as not to be invalid or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. This Agreement sets forth our entire understanding with respect to the subject matter hereof and cannot be changed, waived or terminated except by a writing signed by you and the Company. Any waiver by either party of a breach of any provision of this agreement will not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this agreement. This agreement will be binding on the successors and assigns of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. It is the intent of the parties that all payments and benefits under this Agreement will comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder. This Agreement will be interpreted in a manner consistent with such intent.

If the foregoing correctly sets forth your understanding of the terms of your employment as ICEO, please so indicate by signing and returning to us a copy of this Agreement. Again, the Board very much appreciates your willingness to serve the Company and its stockholders in this way.

---

| | |
|:---|:---|
| RITE AID CORPORATION | RITE AID CORPORATION |
| By: | /s/ Paul D. Gilbert |
| Name: Paul D. Gilbert | Name: Paul D. Gilbert |
| Title: EVP, Chief Legal Officer and Secretary | Title: EVP, Chief Legal Officer and Secretary |
| January 7, 2023 | January 7, 2023 |
| Accepted and agreed: | Accepted and agreed: |
| /s/ Busy Burr | /s/ Busy Burr |
| Busy Burr | Busy Burr |
| January 7, 2023 | January 7, 2023 |

---

## Exhibit 99.1

**Exhibit 99.1**

**Rite Aid Corporation Names Elizabeth "Busy" Burr Interim Chief Executive Officer**

*Heyward Donigan Departs from the Company as President and CEO*

*Company Reaffirms Fiscal 2023 Financial Guidance*

PHILADELPHIA – January 9, 2023 – Rite Aid Corporation (NYSE: RAD) ("Rite Aid" or the "Company") announced today that its Board of Directors has appointed Elizabeth ("Busy") Burr, a member of the Company's Board, as interim CEO, effective immediately. Burr's appointment follows Heyward Donigan's departure from the Company as President and CEO, and as a member of the Board. Rite Aid has initiated a search to identify a permanent CEO and has retained a leading executive search firm.

Burr has extensive experience in the health industry, and proven expertise in innovation, business strategy, retail and brand management. She previously served as Vice President, Head of Health Ventures and Chief Innovation Officer at Humana, a $70 billion for-profit U.S. health insurance company. Most recently, at Carrot Inc., named a "Most Innovative Company" by Fast Company magazine in 2020, Burr served as President and Chief Commercial Officer, leading the team focused on bringing the company's digital health solutions to market. Burr previously served as Managing Director of Citi Ventures and Global Head of Business Incubation of Citigroup Inc. as well as Entrepreneur-in-Residence at eBay Inc. She has also held various senior leadership roles at Credit Suisse Group AG (formerly Credit Suisse First Boston) and Gap Inc., where she served as Vice President of Global Brand Management.

Bruce Bodaken, Rite Aid Chairman, stated, "As the Company continues its efforts to enhance its competitive position in this dynamic environment, the Board determined and Heyward agreed that now is the right time to identify the next leader of the business. With a deep understanding of the industry and our strategy, the Board was unanimous in its belief that Busy is highly qualified to serve as interim CEO while the Board conducts a search for a permanent successor. We are fortunate to have someone of her caliber to step into the role and are confident in Busy's ability to lead the Company forward during this transition period."

Burr said, "Having served as a Director since 2019, I have great respect for the important role Rite Aid plays as a full-service pharmacy improving health outcomes for millions of Americans. I will work with the Board and management team to realize our vast potential while supporting our thousands of pharmacists and team members who are focused every day on meeting the needs of our communities and customers. With Rite Aid's well-established brand and its committed and talented team, I look forward to delivering on our business strategy and driving value for all our stakeholders."

Bodaken continued, "On behalf of the entire Board, I want to thank Heyward for her contributions and service to Rite Aid, particularly her efforts in helping to lead Rite Aid throughout the Covid-19 pandemic. We wish her all the best in her future endeavors."

Donigan said, "It has been a privilege to lead Rite Aid and its exceptional team. I am proud of all that we have achieved together, and I believe that the Company is well positioned for the future."

Rite Aid reaffirms its fiscal year 2023 guidance for total revenues between $23.7 billion and $24.0 billion, net loss between $584 million and $551 million, Adjusted EBITDA between $410 million and $440 million and capital expenditures of approximately $225 million.

The Company continues to expect to generate positive free cash flow in Fiscal 2023 and will provide additional detail on its financials and operational progress when it reports its full fourth quarter and fiscal year 2023 results.

**About Elizabeth "Busy" Burr**

Busy Burr is the former President and Chief Commercial Officer at Carrot Inc., a digital health care company with solutions that combine behavioral science, clinical expertise, and proprietary technology, from 2019 through 2021. Prior to that, Burr served as the Chief Innovation Officer and Vice President of Healthcare Trend and Innovation at Humana where she was responsible for driving the design, build and adoption of new product platforms in digital health, provider experience, and telemedicine, to improve health outcomes, create superior member experiences, and improve health care costs. She also founded Humana's strategic investing practice, Humana Health Ventures. Prior to joining Humana in 2015, Burr was managing director of Citi Ventures and led large-scale business transformation efforts as the global head of Citi's Business Incubation Function-DesignWorks. Prior to this, she served as CMO and Global Head of Communications of the Global Technology Group at Credit Suisse First Boston. Earlier in her career, Burr spent seven years in investment banking at Morgan Stanley and previously served as Vice President of Global Brand Management at Gap Inc. Burr holds an MBA from Stanford University and a bachelor's degree in Economics from Smith College. Burr serves on the Boards of Mr. Cooper Group, Satellite Healthcare and SVB Financial Group.

**About Rite Aid**

Rite Aid Corporation is on the front lines of delivering healthcare services and retail products to Americans 365 days a year. Our pharmacists are uniquely positioned to engage with customers and improve their health outcomes. We provide an array of whole being health products and services for the entire family through over 2,300 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to millions of members nationwide.

**Cautionary Statement Regarding Forward-Looking Statements**

Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Rite Aid's outlook and guidance for fiscal 2023, including our expectation to generate positive free cash flow in fiscal 2023; the transition of Rite Aid executive leadership, including the expected benefits thereof; and Rite Aid's competitive positioning and other plans, objectives, goals and strategies. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," and "will" and variations of such words and similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to: risks associated with changes and transitions in management personnel; risks related to the prolonged impact of the COVID-19 global pandemic and the emerging new variants, including the government responses thereto; the impact of COVID-19 on our workforce, operations, stores, expenses, and supply chain, and the operations or behaviors of our customers, suppliers and business partners; our ability to successfully implement our store closure program and other strategies; the impact of our high level of indebtedness, the ability to refinance such indebtedness on acceptable terms (including the impact of rising interest rates, market volatility, and continuing actions by the United States Federal Reserve) and our ability to satisfy our obligations and the other covenants contained in our debt agreements; outcome of pending or new litigation and government investigations, including related to Opioids, "usual and customary" pricing, government payer programs or other matters; our ability to monetize (and on reasonably available terms) the CMS receivable created in our Part D business; general competitive, economic, industry, market, political (including healthcare reform) and regulatory conditions (including changes to laws or regulations relating to labor or wages), including continued impacts of inflation or other pricing environment factors on our costs, liquidity and our ability to pass on price increases to our customers, including as a result of inflationary and deflationary pressures, a decline in consumer financial position, whether due to inflation or other factors, as well as other factors specific to the markets in which we operate; the impact of private and public third-party payers continued reduction in prescription drug reimbursements, new or disruptive business models or practices, and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; our ability to achieve cost savings and other benefits of our restructuring efforts within our anticipated timeframe, if at all; the outcome of our continuing efforts to monitor and comply with applicable laws, orders, regulations, policies and procedures; and our ability to partner and have relationships with health plans and health systems.

These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission (the "SEC"), which you are encouraged to read. To the extent that COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of such risk factors.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to rely on these forward-looking statements, which speak only as of the date they are made.

The degree to which COVID-19 may adversely affect Rite Aid's results and operations, including its ability to achieve its outlook for fiscal 2023 guidance, will depend on numerous evolving factors and future developments, which are highly uncertain, including, but not limited to, federal, state and local governmental policies and initiatives designed to reduce the transmission of COVID-19 and emerging new variants and how quickly and to what extent normal economic and operating conditions can resume. As a result, the impact on Rite Aid's financial and operating results cannot be reasonably estimated with specificity at this time, but the impact could be material. Rite Aid expressly disclaims any current intention, and assumes no duty, to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

All references to "Company" and "Rite Aid" as used throughout this release refer to Rite Aid Corporation and its affiliates.

**Reconciliation of Non-GAAP Financial Measures**

In addition to net income (loss) determined in accordance with GAAP, we use certain non-GAAP measures, such as "Adjusted EBITDA", in assessing our operating performance. We believe the non-GAAP measures serve as an appropriate measure in evaluating the performance of our business. We define Adjusted EBITDA as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments (which removes the entire impact of LIFO, and effectively reflects the results as if we were on a FIFO inventory basis), charges or credits for facility closing and impairment, goodwill and intangible asset impairment charges, inventory write-downs related to store closings, gains or losses on debt modifications and retirements, and other items (including stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, severance, restructuring-related costs and costs related to facility closures, gain or loss on sale of assets and the loss on Bartell acquisition). We reference this particular non-GAAP financial measure frequently in our decision-making because it provides supplemental information that facilitates internal comparisons to the historical periods and external comparisons to competitors. In addition, incentive compensation is primarily based on Adjusted EBITDA and we base certain of our forward-looking estimates on Adjusted EBITDA to facilitate quantification of planned business activities and enhance subsequent follow-up with comparisons of actual to planned Adjusted EBITDA. See the attached table for a reconciliation of Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures.

RITE AID CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED EBITDA GUIDANCE

YEAR ENDING MARCH 4, 2023

(In thousands)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Guidance Range** | **Guidance Range** |
|  | **Low** | **High** |
| Total Revenues | $23700000 | $24000000 |
| Pharmacy Services Segment Revenues | $6300000 | $6400000 |
| Gross Capital Expenditures | $225000 | $225000 |
| Reconciliation of net loss to adjusted EBITDA: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(584000) | $(551000) |
| &nbsp;&nbsp;&nbsp;Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 220000 | 220000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit | (7000) | (10000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 280000 | 280000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LIFO charge | 35000 | 35000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facility exit and impairment charges | 182000 | 182000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangible asset impairment charges | 252000 | 252000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on debt modifications and retirements, net | (41000) | (41000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring-related costs | 72000 | 72000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation and other contractual settlements | 36000 | 36000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of assets, net | (60000) | (60000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 25000 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $410000 | $440000 |

---

**Contacts**

INVESTORS:

Byron Purcell

(717) 975-3710

<u>investor@riteaid.com</u>

MEDIA:

Joy Errico Seusing

(203) 970-5559

<u>press@riteaid.com</u>