Document:

Exhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT
AND RESTATEMENT AGREEMENT dated as of January 13, 2015 (this “Restatement Agreement”), relating to the Credit
Agreement dated as of June 27, 2001, as amended and restated as of March 14, 2014 (as further amended, supplemented or otherwise
modified and in effect immediately prior to the Restatement Effective Date, the “Original Credit Agreement”),
among Rite Aid Corporation, a Delaware corporation (the “Borrower”), the lenders from time to time party thereto
(the “Lenders”), and Citicorp North America, Inc., as administrative agent and collateral processing agent (in
such capacities, the “Administrative Agent”).

 

RECITALS

 

A. Capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Original Credit Agreement or
the Restated Credit Agreement (as defined below), as the context may require. The rules of construction specified in Section 1.03
of the Original Credit Agreement also apply to this Restatement Agreement.

 

B. On the Restatement
Effective Date (as defined below), the Borrower will obtain new Revolving Commitments in an aggregate amount of $3,700,000,000
(the “New Revolving Commitments”) from the lenders listed on Annex I hereto (the “New Revolving Lenders”).

 

C. On the Restatement
Effective Date, the Borrower will (a) terminate all Revolving Commitments in effect immediately prior to the Restatement Effective
Date (the “Existing Revolving Commitments”), and (b) utilize the proceeds from Revolving Loans made on the Restatement
Effective Date pursuant to the New Revolving Commitments to (i) repay all Revolving Loans, if any, outstanding immediately prior
to the Restatement Effective Date (the “Existing Revolving Loans”) and (ii) repay all outstanding Tranche 7
Term Loans, in an aggregate principal amount of approximately $1,143,650,306.25. That portion of the New Revolving Commitments
(such portion, the “Refinancing Revolving Commitments” and the portion of the New Revolving Commitments in excess
of the Refinancing Revolving Commitments, the “Incremental Revolving Commitments”) equal to the amount of the
Existing Revolving Commitments plus the principal amount of the Tranche 7 Term Loans repaid on the Restatement Effective Date is
being incurred and obtained pursuant to Section 6.01(c) of the Original Credit Agreement as Refinancing Indebtedness in respect
of the Existing Revolving Commitments and the Tranche 7 Term Loans.

 

D. The Borrower has also
requested that, immediately following the consummation of the refinancing transactions referred to above on the Restatement Effective
Date (the “Refinancing”), the Original Credit Agreement be amended and restated (the “Amendment and
Restatement”) in the form of Exhibit A to this Restatement Agreement (the Original Credit Agreement, as so
amended and restated, the “Restated Credit Agreement”; and the Original Credit Agreement and Restated Credit
Agreement being referred to generally as the “Credit Agreement”).

 

    	 

    	 

    

  

E. The New Revolving
Lenders and the Administrative Agent are willing, on the terms and subject to the conditions set forth in this Restatement Agreement,
to effect the Amendment and Restatement immediately following the completion of the Refinancing.

 

AGREEMENTS

 

In consideration of the
foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower,
the New Revolving Lenders and the Administrative Agent hereby agree as follows:

 

ARTICLE I

 

Refinancing
Transactions; Amendment and Restatement

 

SECTION 1.1. Revolving
Commitments. (a) Subject to the terms and conditions set forth herein, effective as of the Restatement Effective Date, the
Existing Revolving Commitments will be terminated pursuant to Section 2.08(b) of the Credit Agreement; provided, however,
that the foregoing shall not affect (i) the LC Commitment of any Issuing Bank under the Original Credit Agreement or (ii) the undertakings
of the Swingline Lender with respect to Swingline Loans pursuant to Section 2.04 of the Original Credit Agreement, in each case
as in effect immediately prior to the effectiveness of the Restated Credit Agreement.

 

(b) Subject to the terms
and conditions set forth herein, on the Restatement Effective Date, simultaneously with the termination of the Existing Revolving
Commitments pursuant to clause (a) above, (i) each Lender that has executed and delivered to the Administrative Agent, on or prior
to the Restatement Effective Date, a signature page to this Restatement Agreement as a “New Revolving Lender” shall
become or continue to be, as applicable, a “Revolving Lender” and a “Lender” under the Credit Agreement
and (ii) the “Revolving Commitment” of each New Revolving Lender will be the amount of the commitment set forth with
respect to such New Revolving Lender on Annex I hereto. The New Revolving Commitments of the New Revolving Lenders are several
and no New Revolving Lender shall be responsible for any other New Revolving Lender’s failure to make Revolving Loans.

 

(c) For all purposes
of the Senior Loan Documents, (i) the New Revolving Commitment of each New Revolving Lender, and the Loans made by each New Revolving
Lender pursuant to such New Revolving Commitments, shall constitute a “Revolving Commitment” and “Revolving Loans”,
respectively, under the Credit Agreement and (ii) all Letters of Credit outstanding immediately prior to the Restatement Effective
Date shall continue to be Letters of Credit issued pursuant to the Original Credit Agreement and, following the Amendment and Restatement,
the Restated Credit Agreement.

 

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(d) For purposes hereof,
the Refinancing Revolving Commitments will become effective on the Restatement Effective Date simultaneously with the termination
of the Existing Revolving Commitments and the repayment of the outstanding Tranche 7 Term Loans and any Existing Revolving Loans.
By its signature to this Restatement Agreement, each of the New Revolving Lenders (but only in respect of its Refinancing Revolving
Commitments), collectively constituting the Required Lenders and the Supermajority Lenders at such time, hereby approve (i) the
Incremental Revolving Commitments as “Revolving Commitments” under the Credit Agreement and (ii) the Amendment and
Restatement, effective immediately after such termination and repayment.

 

SECTION 1.2. Amendment
and Restatement of Original Credit Agreement. On the Restatement Effective Date, immediately following the Refinancing, the
Original Credit Agreement shall be amended and restated in its entirety in the form of Exhibit A hereto. All schedules and
exhibits to the Original Credit Agreement, and the Definitions Annex, in each case in the forms thereof immediately prior to the
Restatement Effective Date, shall constitute schedules and exhibits to the Restated Credit Agreement, except for any such exhibits
and schedules new forms of which are included in Exhibit B to this Restatement Agreement.

 

SECTION 1.3. Conditions
to Effectiveness. The termination of the Existing Revolving Commitments pursuant to Section 1.1 above, the effectiveness of
the New Revolving Commitments pursuant to Section 1.1 above and the Amendment and Restatement, shall become effective as of the
first date (the “Restatement Effective Date”) on which the following conditions have been satisfied:

 

(i) The
Administrative Agent (or its counsel) shall have received duly executed counterparts hereof that, when taken together, bear the
signatures of (i) the Borrower, (ii) each New Revolving Lender, collectively constituting the Required Lenders and the Supermajority
Lenders (determined, for the avoidance of doubt, immediately after the consummation of the Refinancing), and (iii) the Administrative
Agent.

 

(ii) After
giving effect to the effectiveness and the borrowing of Revolving Loans under the New Revolving Commitments on the Restatement
Effective Date, the conditions set forth in paragraphs (a), (b) and (c) of Section 4.02 of the Original Credit Agreement
shall be satisfied on and as of the Restatement Effective Date, and the New Revolving Lenders shall have received a certificate
of a Financial Officer dated the Restatement Effective Date to such effect.

 

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(iii) The
Collateral and Guarantee Requirement shall be satisfied and the Administrative Agent shall have received a completed and updated
Perfection Certificate, setting forth the information required thereunder as of the Restatement Effective Date and signed by the
chief financial officer and general counsel of the Borrower.

 

(iv) The
Administrative Agent shall have received a favorable legal opinion of each of (i) Skadden, Arps, Slate, Meagher & Flom
LLP, counsel to the Borrower and (ii) Marc Strassler, General Counsel of the Borrower, in each case addressed to the Administrative
Agent and the New Revolving Lenders, and dated the Restatement Effective Date, in substantially the forms thereof delivered in
connection with the Amendment and Restatement Agreement dated as of March 14, 2014, to the Original Credit Agreement (as in effect
prior to the effectiveness of such amendment and restatement), modified, however, to address the New Revolving Commitments, the
Amendment and Restatement and this Restatement Agreement, and covering such other matters relating to the Loan Parties, the other
Senior Loan Documents, the Senior Collateral and the transactions contemplated hereby to occur on the Restatement Effective Date
as the Administrative Agent may reasonably request, and otherwise reasonably satisfactory to the Administrative Agent. The Borrower
hereby requests such counsel to deliver such opinions.

 

(v) The
Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably
request relating to the good standing of the Borrower and the organization and existence of each Loan Party, the organizational
documents of each Loan Party, the resolutions of each Loan Party that authorize the transactions contemplated hereby, the incumbency
and authority of the Person or Persons executing and delivering this Restatement Agreement and the other documents contemplated
hereby, all in form and substance reasonably satisfactory to the Administrative Agent.

 

(vi) The
Administrative Agent shall have received a borrowing request in a form reasonably acceptable to the Administrative Agent requesting
that the New Revolving Lenders make the Revolving Loans to be made to the Borrower on the Restatement Effective Date.

 

(vii) After
giving effect to the Refinancing, the Borrowing Base Amount on the Restatement Effective Date shall be no less than the sum of
(A) the aggregate principal amount of Loans outstanding on the Restatement Effective Date, (B) the LC Exposure on the
Restatement Effective Date and (C) the aggregate principal amount of Additional Senior Debt outstanding on the Restatement Effective
Date. The Administrative Agent shall have received a completed Borrowing Base Certificate dated the Restatement Effective Date
and signed by a Financial Officer of the Borrower.

 

(viii)
The Revolving Availability shall be no less than $800,000,000 on the Restatement Effective Date, after giving effect to the transactions
to be consummated on such date.

 

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(ix) Each
Subsidiary Guarantor shall have entered into a Reaffirmation Agreement pursuant to which such Subsidiary Guarantor reaffirms its
obligations under the Senior Subsidiary Guarantee Agreement and the other Senior Collateral Documents, in form and substance reasonably
satisfactory to the Administrative Agent.

 

(x) The
principal of and accrued and unpaid interest on all outstanding (i) Tranche 7 Term Loans and (ii) Existing Revolving Loans, Swingline
Loans and LC Disbursements, and all accrued and unpaid fees payable pursuant to Section 2.12(a) and (b) of the Original Credit
Agreement, in each case as of the Restatement Effective Date, and all amounts owed in respect of such prepayments pursuant to Section
2.16 of the Original Credit Agreement, shall have been (or substantially simultaneously with the effectiveness of this Restatement
Agreement shall be) paid in full, and the Administrative Agent shall have received evidence reasonably satisfactory to it of such
payment.

 

(xi) To
the extent invoiced prior to the Restatement Effective Date, the Administrative Agent shall have received payment or reimbursement
of its reasonable out-of-pocket expenses in connection with this Restatement Agreement, including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent.

 

(xii) To
the extent invoiced prior to the Restatement Effective Date, the Administrative Agent shall have received, for the account of the
New Revolving Lenders, payment of all fees owed to such New Revolving Lenders by the Borrower on the Restatement Effective Date
in connection with this Restatement Agreement and the transactions contemplated hereby.

 

(xiii)
To the extent invoiced prior to the Restatement Effective Date, the Arrangers shall have received the payments and reimbursements
referred to in Section 2.4.

 

(xiv) At
least three Business Days prior to the Restatement Effective Date, the Administrative Agent and the Lenders shall have received
all documentation and other information required by bank regulatory authorities under applicable “know-your-customer”
and anti-money laundering rules and regulations, including the USA Patriot Act.

 

The Administrative Agent
shall notify the Borrower and the New Revolving Lenders of the Restatement Effective Date and such notice shall be conclusive and
binding. Notwithstanding the foregoing, the amendments effected hereby shall not become effective, and the obligations of the New
Revolving Lenders hereunder to make the New Revolving Commitments will automatically terminate, if each of the conditions set forth
or referred to in Section 1.3 has not been satisfied at or prior to 5:00 p.m., New York City time, on February 27, 2015.

 

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ARTICLE II

 

Miscellaneous

 

SECTION 2.1. Representations
and Warranties. (a) To induce the other parties hereto to enter into this Restatement Agreement, the Borrower represents and
warrants to each of the Lenders and the Administrative Agent that, as of the Restatement Effective Date and after giving effect
to the transactions and amendments to occur on the Restatement Effective Date:

 

(i) This
Restatement Agreement has been duly authorized, executed and delivered by the Borrower and constitutes, and the Restated Credit
Agreement, as of the Restatement Effective Date, will constitute, its legal, valid and binding obligation, enforceable against
it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding
in equity or at law.

 

(ii) The
representations and warranties set forth in Article III of the Restated Credit Agreement are true and correct in all material respects
on and as of the Restatement Effective Date, with the same effect as though made on and as of the Restatement Effective Date (except
to the extent any such representations or warranties expressly relate to an earlier date, in which case such representations and
warranties were true and correct in all material respects as of such earlier date).

 

(iii) No
Default (as defined in the Restated Credit Agreement) or Event of Default (as defined in the Restated Credit Agreement) has occurred
and is continuing.

 

SECTION 2.2. Effect
of Amendment. (a) Except as expressly set forth herein, this Restatement Agreement shall not by implication or otherwise limit,
impair, constitute a waiver of, or otherwise affect the rights and remedies of, the Lenders or the Agents under the Original Credit
Agreement, the Restated Credit Agreement or any other Senior Loan Document, and shall not alter, modify, amend or in any way affect
any of the terms, conditions, obligations, covenants or agreements contained in the Original Credit Agreement, the Restated Credit
Agreement or any other Senior Loan Document, all of which are ratified and affirmed in all respects and shall continue in full
force and effect. Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification
or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Original Credit Agreement,
the Restated Credit Agreement or any other Senior Loan Document in similar or different circumstances. This Restatement Agreement
shall apply to and be effective only with respect to the provisions of the Original Credit Agreement, the Restated Credit Agreement
and the other Senior Loan Documents specifically referred to herein.

 

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(b) On and after the
Restatement Effective Date, each reference in the Original Credit Agreement to “this Agreement”, “hereunder”,
“hereof”, “herein” or words of like import, and each reference to the Original Credit Agreement, “thereunder”,
“thereof”, “therein” or words of like import in any other Senior Loan Document shall be deemed a reference
to the Restated Credit Agreement. This Restatement Agreement shall constitute a “Senior Loan Document” for all purposes
of the Original Credit Agreement, the Restated Credit Agreement and the other Senior Loan Documents.

 

SECTION 2.3. Governing
Law. This Restatement Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

SECTION 2.4. Costs
and Expenses; Fees. The Borrower agrees to (a) reimburse the Administrative Agent for its reasonable out-of-pocket expenses
in connection with this Restatement Agreement, including the reasonable fees, charges and disbursements of counsel for the Administrative
Agent, and (b) pay the fees and expenses referred to in the commitment letter dated December 5, 2014, among the Borrower, Wells
Fargo Bank, N.A., and the other parties designated as “Arrangers” therein, in accordance with the terms and conditions
thereof.

 

SECTION 2.5. Counterparts.
This Restatement Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but
one and the same instrument. Delivery of any executed counterpart of a signature page of this Restatement Agreement by facsimile
transmission or other electronic imaging means shall be effective as delivery of a manually executed counterpart hereof.

 

SECTION 2.6. Severability.
Any provision of this Restatement Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction
shall not invalidate such provision in any other jurisdiction.

 

SECTION 2.7. Headings.
The headings of this Restatement Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning
hereof.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, each
of the parties hereto has caused this Restatement Agreement to be executed by its duly authorized officer or officers as of the
date first above written.

 

	 	RITE AID CORPORATION,
	 	 	 
	 	by	/s/ Darren W. Karst
	 	 	Name:	Darren W. Karst
	 	 	Title:	EVP, Chief Financial Officer

 

[Signature Page to the Amendment and Restatement
Agreement]

 

    	 

    	 

    

 

	 	CITICORP NORTH AMERICA, INC., as Administrative Agent and Collateral and Processing Agent, 
	 	 	 
	 	By	/s/ Justin McMahan 
	 	 	Name:	Justin McMahan 

	 	 	Title:	Vice President

 

[Signature Page to the Amendment and Restatement
Agreement]

 

    	 

    	 

    

 

 

Revolving Lenders

The
undersigned Revolving Lender hereby approves the Restatement Agreement.

IN
WITNESS WHEREOF, the undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	BANK OF AMERICA, N.A.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Roger Malou
	 	 	Name:	Roger Malou
	 	 	Title:	Director
	 	 	 	 
	 	 	 	 

 

 

 

 

    	 

    	 

    

 

Revolving Lenders

The undersigned Revolving Lender
hereby approves the Restatement Agn..ement.

IN WITNESS
WHEREOF, the undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	BMO Harris Bank N.A.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Kara Goodwin
	 	 	Name:	Kara Goodwin
	 	 	Title:	Managing Director
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	CIT Finance LLC,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Renee M. Singer
	 	 	Name:	Renee M. Singer
	 	 	Title:	Managing Director
	 	 	 	 
	 	 	 	 

 

 

 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	Capital One Business Credit Corp.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Julianne Low
	 	 	Name:	Julianne Low
	 	 	Title:	Senior Director
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby approves the
Restatement Agreement.

IN WITNESS WHEREOF, the
undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	CITIBANK, N.A.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Justin McMahan
	 	 	Name:	Justin McMahan
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 12, 2015
	 	 
	 	Citizens Business Capital, f/k/a RBS Citizens Business Capital, a division of Citizens Asset Finance, Inc., f/k/a RBS Asset Finance, Inc.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Rohit Mehta
	 	 	Name:	Rohit Mehta
	 	 	Title:	Title: Vice President
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender
hereby approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 8, 2015
	 	 
	 	City National Bank, a National Banking Association,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Mia Bolin
	 	 	Name:	Mia Bolin
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

 

 

 

 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 7, 2015
	 	 
	 	Compass Bank
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Jay Garcia
	 	 	Name:	Jay Garcia
	 	 	Title:	Senior Vice President
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders 

The undersigned Revolving Lender hereby approves
the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	CREDIT SUISSE AG, CAYMAN
	 	ISLANDS BRANCH
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Vipul Dhadda
	 	 	Name:	Vipul Dhadda
	 	 	Title:	Authorized Signatory

 

 

	 	If a second signature is necessary:
	 	 
	 	 	 
	 	By:	/s/ D. Andrew Maletta
	 	 	Name:	D. Andrew Maletta
	 	 	Title:	Authorized Signatory
	 	 	 	 
	 	 	 	 

 

 

 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby approves
the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	Fifth Third Bank,
	 	as a lender
	 	 
	 	 	 
	 	By:	/s/ Susan A. Waters
	 	 	Name:	Susan A. Waters
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby approves
the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 8, 2015
	 	 
	 	First Niagra Commercial Finance, Inc.,
	 	as a lender
	 	 
	 	 	 
	 	By:	/s/ Jessica Benevides-Caron
	 	 	Name:	Jessica Benevides-Caron
	 	 	Title:	First Vice President
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Peter F. Crispino
	 	 	Name:	Peter F. Crispino
	 	 	Title:	Duly Authorized Signatory
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 9, 2015
	 	 
	 	GOLDMAN SACHS BANK USA,
	 	as a Lender (type name of the legal entity)
	 	 
	 	 	 
	 	By:	/s/ Rebecca Kratz
	 	 	Name:	Rebecca Kratz
	 	 	Title:	Authorized Signatory
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby approves
the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	The Huntington National Bank
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Diana Guzzo
	 	 	Name:	Diana Guzzo
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    

 

 

Revolving Lenders

The undersigned Revolving Lender
hereby approves the Restatement Agreement.

IN WITNESS WHEREOF,
the undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	ING Capital, LLC
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Bill Beddingfield
	 	 	Name:	Bill Beddingfield
	 	 	Title:	Managing Director

 

	 	If a second signature is necessary:
	 	 
	 	 	 
	 	By:	/s/ Lia Cornejo
	 	 	Name:	Lia Cornejo
	 	 	Title:	Managing Director
	 	 	 	 
	 	 	 	 

 

 

 

 

    	 

    	 

    

Revolving Lenders 

The undersigned Revolving Lender
hereby approves the Restatement Agreement.

IN WITNESS
WHEREOF, the undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	MUFG Union Bank, N.A.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Roger P. Tauchman
	 	 	Name:	Roger P. Tauchman
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	NYCB Specialty Finance Company LLC, (a wholly owned subsidiary of New York Community Bank),
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Willard D. Dickerson, Jr.
	 	 	Name:	Willard D. Dickerson, Jr.
	 	 	Title:	Senior Vice President
	 	 	 	 
	 	 	 	 

 

 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender
hereby approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 12, 2015
	 	 
	 	PNC BANK, NATIONAL ASSOCIATION
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Edward Shuster
	 	 	Name:	Edward Shuster
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned
Revolving Lender hereby approves the Restatement Agreement.

IN
WITNESS WHEREOF, the undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 9, 2015
	 	 
	 	RB International Finance (USA) LLC,
	 	as a Lende
	 	 
	 	 	 
	 	By:	/s/ Christoph Hoedl
	 	 	Name:	Christoph Hoedl
	 	 	Title:	First Vice President

 

	 	By:	/s/ Steven VanSteenbergen
	 	 	Name:	Steven VanSteenbergen
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender
hereby approves the Restatement Agreement.

IN WITNESS
WHEREOF, the undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 9, 2015
	 	 
	 	Regions Bank,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Daniel Wells
	 	 	Name:	Daniel Wells
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	Siemens Financial Services, Inc.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Illegible
	 	 	Name:	Illegible
	 	 	Title:	VP

 

	 	If a second signature is necessary:
	 	 
	 	 	 
	 	By:	/s/ Michael L. Bar
	 	 	Name:	Michael L. Bar
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

 

 

    	 

    	 

    

 

Revolving Lenders 

The undersigned Revolving Lender
hereby approves the Restatement Agreement.

IN WITNESS
WHEREOF, the undersigned has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	SunTrust Bank,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Amanda Watkins
	 	 	Name:	Amanda Watkins
	 	 	Title:	Director
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

 

Revolving Lenders 

The undersigned Revolving Lender hereby approves the
Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	TD BANK, N.A.,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Donald Cavanagh
	 	 	Name:	Donald Cavanagh
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ Matthew Kasper
	 	 	Name:	Matthew Kasper
	 	 	Title:	Vice President
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

Revolving Lenders

The undersigned Revolving Lender hereby
approves the Restatement Agreement.

IN WITNESS WHEREOF, the undersigned
has caused this signature page to be executed and delivered by a duly authorized officer.

 

	 	Date: January 13, 2015
	 	 
	 	WELLS FARGO BANK, N.A.,
	 	as a Lender (type name of the legal entity)
	 	 
	 	 	 
	 	By:	/s/ Peter Foley
	 	 	Name:	Peter Foley
	 	 	Title:	Duly Authorized Signatory
	 	 	 	 
	 	 	 	 

 

 

    	 

    	 

    

 

Exhibit A

 

RITE
AID CORPORATION,

 

The
Lenders Party Hereto,

citicorp
North america, inc.,

as
Administrative Agent and Collateral Agent,

 

WELLS
FARGO BANK, N.A., 

as
Syndication Agent,

 

BANK
OF AMERICA, N.A.,

AS CO-DOCUMENTATION AGENT,

 

GENERAL ELECTRIC CAPITAL CORPORATION,

AS CO-DOCUMENTATION AGENT,

 

GOLDMAN SACHS BANK USA,

AS CO-DOCUMENTATION AGENT,

 

CREDIT SUISSE AG,

AS CO-DOCUMENTATION AGENT

 

MUFG UNION BANK, N.A.,

AS CO-DOCUMENTATION AGENT

 

ING CAPITAL LLC,

AS CO-DOCUMENTATION AGENT

 

BANK OF MONTREAL,

AS CO-DOCUMENTATION AGENT

 

FIFTH THIRD BANK,

AS CO-DOCUMENTATION AGENT

 

and

 

PNC BANK, N.A.,

AS CO-DOCUMENTATION AGENT

___________________________

WELLS FARGO BANK, N.A.

as Joint Lead Arranger and Joint Bookrunning
Manager,

  

MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED,

as Joint Lead Arranger and Joint Bookrunning
Manager,

 

CITIGROUP GLOBAL MARKETS INC.,

as Joint Lead Arranger and Joint Bookrunning
Manager,

 

GE CAPITAL MARKETS, INC.,

as Joint Lead Arranger and Joint Bookrunning
Manager,

 

GOLDMAN SACHS BANK USA,

as Joint Lead Arranger and Joint Bookrunning
Manager

 

CREDIT
SUISSE SECURITIES (USA) llC

as Joint Lead Arranger and Joint Bookrunning
Manager

 

and

 

MUFG UNION BANK, N.A.,

As Joint Lead Arranger and Joint Bookrunning
Manager

 

[CS&M Ref. No. 10624-031]

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I
	 	 	 
	Definitions
	 	 	 
	SECTION 1.01.	Defined Terms	2
	SECTION 1.02.	Classification of Loans and Borrowings	61
	SECTION 1.03.	Terms Generally	61
	SECTION 1.04.	Accounting Terms; GAAP	62
	SECTION 1.05.	Terms Defined in Definitions Annex	62
	SECTION 1.06.	Excluded Swap Obligations	62
	 	 	 
	ARTICLE II
	 
	The Credits
	 	 	 
	SECTION 2.01.	Commitments	63
	SECTION 2.02.	Loans and Borrowings	64
	SECTION 2.03.	Requests for Borrowings	65
	SECTION 2.04.	Swingline Loans	65
	SECTION 2.05.	Letters of Credit	67
	SECTION 2.06.	Funding of Borrowings	72
	SECTION 2.07.	Interest Elections	73
	SECTION 2.08.	Termination and Reduction of Commitments	74
	SECTION 2.09.	Repayment of Loans; Evidence of Indebtedness	75
	SECTION 2.10.	Amortization and Repayment of Term Loans	76
	SECTION 2.11.	Prepayment of Loans	76
	SECTION 2.12.	Fees	79
	SECTION 2.13.	Interest	80
	SECTION 2.14.	Alternate Rate of Interest	81
	SECTION 2.15.	Increased Costs	82
	SECTION 2.16.	Break Funding Payments	83
	SECTION 2.17.	Taxes	84
	SECTION 2.18.	Payments Generally; Pro Rata Treatment; Sharing of Setoffs	88
	SECTION 2.19.	Mitigation Obligations; Replacement of Lenders	90
	SECTION 2.20.	Adjustments to Borrowing Base Advance Rates	90
	SECTION 2.21.	Incremental Loans	92
	SECTION 2.22.	Defaulting Lenders	93

 

    	i

    	 

    

 

	ARTICLE III
	 
	Representations and Warranties
	 	 	 
	SECTION 3.01.	Organization; Powers	96
	SECTION 3.02.	Authorization; Enforceability	96
	SECTION 3.03.	Governmental Approvals; No Conflicts	97
	SECTION 3.04.	Financial Condition; No Material Adverse Change	97
	SECTION 3.05.	Properties	97
	SECTION 3.06.	Litigation and Environmental Matters	98
	SECTION 3.07.	Compliance with Laws and Agreements	98
	SECTION 3.08.	Investment and Holding Company Status	98
	SECTION 3.09.	Taxes	98
	SECTION 3.10.	ERISA	99
	SECTION 3.11.	Disclosure; Accuracy of Information	99
	SECTION 3.12.	Subsidiaries	99
	SECTION 3.13.	Insurance	99
	SECTION 3.14.	Labor Matters	100
	SECTION 3.15.	Solvency	100
	SECTION 3.16.	Federal Reserve Regulations	100
	SECTION 3.17.	Security Interests	100
	SECTION 3.18.	Use of Proceeds	101
	SECTION 3.19.	Anti-Corruption Laws and Sanctions	101
	 	 	 
	ARTICLE IV
	 
	Conditions
	 	 	 
	SECTION 4.01.	2015 Restatement Effective Date	101
	SECTION 4.02.	Each Credit Event	102
	 	 	 
	ARTICLE V
	 
	Affirmative Covenants
	 	 	 
	SECTION 5.01.	Financial Statements and Other Information	102
	SECTION 5.02.	Notices of Material Events	105
	SECTION 5.03.	Information Regarding Collateral	106
	SECTION 5.04.	Existence; Conduct of Business	107
	SECTION 5.05.	Payment of Obligations	107
	SECTION 5.06.	Maintenance of Properties	107
	SECTION 5.07.	Insurance	107
	SECTION 5.08.	Books and Records; Inspection and Audit Rights; Collateral and Borrowing Base Reviews	109
	SECTION 5.09.	Compliance with Laws	110
	SECTION 5.10.	Use of Proceeds and Letters of Credit	110

 

    	ii

    	 

    

 

	SECTION 5.11.	Additional Subsidiaries	111
	SECTION 5.12.	Further Assurances	112
	SECTION 5.13.	Subsidiaries	112
	SECTION 5.14.	Intercompany Transfers	112
	SECTION 5.15.	Inventory Purchasing	112
	SECTION 5.16.	Cash Management System	113
	SECTION 5.17.	Termination of Factoring Transactions	113
	 	 	 
	ARTICLE VI
	 
	Negative Covenants
	 	 	 
	SECTION 6.01.	Indebtedness; Certain Equity Securities	113
	SECTION 6.02.	Liens	118
	SECTION 6.03.	Fundamental Changes	120
	SECTION 6.04.	Investments, Loans, Advances, Guarantees and Acquisitions	121
	SECTION 6.05.	Asset Sales	122
	SECTION 6.06.	Sale and Leaseback Transactions	124
	SECTION 6.07.	Hedging Agreements	124
	SECTION 6.08.	Restricted Payments; Certain Payments of Indebtedness	125
	SECTION 6.09.	Transactions with Affiliates	127
	SECTION 6.10.	Restrictive Agreements	128
	SECTION 6.11.	Amendment of Material Documents	130
	SECTION 6.12.	Consolidated Fixed Charge Coverage Ratio	130
	SECTION 6.13.	Restrictions on Asset Holdings by the Borrower	130
	SECTION 6.14.	Corporate Separateness	131
	SECTION 6.15.	Cash Management	131
	 	 	 
	ARTICLE VII
	 
	Events of Default
	 	 	 
	ARTICLE VIII
	 	 	 
	SECTION 8.01.	Rights of Agents	135
	SECTION 8.02.	Additional Rights of Borrowing Base Agent	138
	 	 	 
	ARTICLE IX
	 
	Miscellaneous
	 	 	 
	SECTION 9.01.	Notices	139
	SECTION 9.02.	Waivers; Amendments	140
	SECTION 9.03.	Expenses; Indemnity; Damage Waiver	144

 

    	iii

    	 

    

 

	SECTION 9.04.	Successors and Assigns	146
	SECTION 9.05.	Survival	150
	SECTION 9.06.	Integration; Effectiveness	150
	SECTION 9.07.	Severability	150
	SECTION 9.08.	Right of Setoff	151
	SECTION 9.09.	Governing Law; Jurisdiction; Consent to Service of Process	151
	SECTION 9.10.	WAIVER OF JURY TRIAL	152
	SECTION 9.11.	Headings	152
	SECTION 9.12.	Confidentiality	152
	SECTION 9.13.	Interest Rate Limitation	153
	SECTION 9.14.	Collateral Trust and Intercreditor Agreement; Senior Lien Intercreditor Agreement	153
	SECTION 9.15.	Cash Sweep	154
	SECTION 9.16.	Electronic Communications	154
	SECTION 9.17.	USA Patriot Act	156
	SECTION 9.18.	Certain Permitted Intercreditor Arrangements	156
	SECTION 9.19.	Loan Modification Offers	158

 

    	iv

    	 

    

 

ANNEXES:

 

Annex 1 – Definitions Annex

 

Annex 2 – Subordination Terms

 

	SCHEDULES:	 	 
	 	 	 
	Schedule 1.01	-	Subsidiary Loan Parties
	Schedule 3.04	-	Undisclosed Liabilities
	Schedule 3.05 (a)	-	Properties
	Schedule 3.05(c)	-	Leased Warehouses and Distribution Centers
	Schedule 3.06(a)	-	Litigation
	Schedule 3.06(b)	-	Environmental Matters
	Schedule 3.07	-	Compliance with Laws
	Schedule 3.09	-	Taxes
	Schedule 3.12	-	Subsidiaries
	Schedule 3.13	-	Insurance
	Schedule 3.14	-	Labor
	Schedule 5.11	-	Subsidiaries
	Schedule 6.01(a)(xii)	-	Existing Indebtedness
	Schedule 6.01(b)	-	Equity Issuances
	Schedule 6.02(xi)	-	Liens
	Schedule 6.04	-	Investments
	Schedule 6.08(a)	-	Restricted Payments
	Schedule 6.09	-	Affiliate Transactions
	 	 	 
	EXHIBITS:	 	 
	 	 	 
	Exhibit A-1	-	Form of Term Note
	Exhibit A-2	-	Form of Revolving Credit Note
	Exhibit B	-	Form of Borrowing Base Certificate
	Exhibit C	-	Form of Assignment and Acceptance Agreement
	Exhibit D	-	Form of Senior Subsidiary Guarantee Agreement
	Exhibit E	-	Form of Senior Subsidiary Security Agreement
	Exhibit F	-	Form of Senior Indemnity, Subrogation and Contribution Agreement
	Exhibit G	-	Form of Second Priority Subsidiary Guarantee Agreement
	Exhibit H	-	Form of Second Priority Subsidiary Security Agreement
	Exhibit I	-	Form of Second Priority Indemnity, Subrogation and Contribution Agreement
	Exhibit J	-	Form of Senior Lien Intercreditor Agreement
	Exhibit H-1	-	Form of U.S. Tax Compliance Certificate for Foreign Lenders that are not Partnerships for U.S. Federal Income Tax Purposes
	Exhibit H-2	-	Form of U.S. Tax Compliance Certificate for Foreign Participants that are not Partnerships for U.S. Federal Income Tax Purposes

 

    	v

    	 

    

 

	Exhibit H-3	-	Form of U.S. Tax Compliance Certificate for Foreign Participants that are Partnerships for U.S. Federal Income Tax Purposes
	Exhibit H-4	-	Form of U.S. Tax Compliance Certificate for Foreign Lenders that are Partnerships for U.S. Federal Income Tax Purposes

 

    	vi

    	 

    

 

CREDIT AGREEMENT dated as of June
27, 2001, as amended and restated as of January 13, 2015 (this “Agreement”), among RITE AID CORPORATION, a Delaware
corporation, the LENDERS party hereto and CITICORP NORTH AMERICA, INC. as Administrative Agent and Collateral Agent.

 

The Borrower, the Administrative Agent, the
Collateral Agent and certain of the Lenders were party to the Original Agreement (such term and each other capitalized term used
but not otherwise defined in this preamble having the meaning assigned to such term in Article I below) pursuant to which
certain of the Lenders thereunder agreed to extend credit to the Borrower on a revolving credit basis and to make term loans to
the Borrower.

 

Pursuant to the 2015 Amendment and Restatement
Agreement, on the 2015 Restatement Effective Date, in accordance with the provisions of Section 6.01(c) of the Original Agreement,
(i) all the outstanding revolving commitments and term loans under the Original Agreement were refinanced with Revolving Commitments
hereunder in a principal amount equal to the aggregate amount of such outstanding revolving commitments and term loans and (ii)
such outstanding term loans and all outstanding revolving loans under the Original Agreement were repaid in full with the proceeds
of Borrowings under such Revolving Commitments hereunder.

 

In accordance with the 2015 Amendment and
Restatement Agreement, and effective immediately after consummation of the refinancing transactions referred to in the immediately
preceding recital, the parties hereto have amended and restated the Original Agreement in the form hereof, including to increase
the aggregate amount of Revolving Commitments hereunder to $3,700,000,000.

 

The proceeds of Revolving Loans and Swingline
Loans made on or after the 2015 Restatement Effective Date will be used for general corporate purposes, including the refinancing
described above, Business Acquisitions and Investments, as more fully set forth herein. Letters of Credit will be used solely to
support payment obligations of the Borrower and the Subsidiaries incurred in the ordinary course of business.

 

Accordingly, in consideration of the mutual
agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

    	 

    	 

    

  

ARTICLE
I

 

Definitions

 

SECTION 1.01.      Defined
Terms. As used in this Agreement, the following terms have the meanings specified below:

 

“8.00% Secured Note Repayment”
means the repayment or repurchase by the Borrower of all the 2020 8.00% Notes, including pursuant to open market purchases, consummation
of a tender offer, satisfaction and discharge or a redemption of the 2020 8.00% Notes effected in accordance with the terms of
the 2020 8.00% Note Indenture. In the case of such a redemption of all outstanding 2020 8.00% Notes, the 8.00% Secured Note Repayment
will be deemed to have occurred on the first date on which the Company has both given the applicable notice of redemption under
the 2020 8.00% Note Indenture and irrevocably deposited with the trustee under such indenture the full amount of funds required
to effect such redemption, including payment of any applicable premiums and accrued interest, provided that, if such funds
or any portion thereof are to be deposited from the proceeds of any Borrowing hereunder on the date of such deposit pursuant to
arrangements satisfactory to the Agent, the deposit of such proceeds will be deemed to have occurred at the time of such Borrowing.

 

“8.00% Secured Note Repayment Date”
means the date on which the 8.00% Secured Note Repayment has occurred.

 

“2005 Restatement Effective Date”
means September 30, 2005.

 

“2009 Amendment and Restatement Agreement”
means the Amendment and Restatement Agreement dated as of June 5, 2009, among Rite Aid, the Subsidiary Loan Parties, the Senior
Lenders party thereto and the Administrative Agent.

 

“2009 Restatement Effective Date”
means June 5, 2009.

 

“2013 Amendment and Restatement Agreement”
means the Amendment and Restatement Agreement dated as of February 21, 2013, among Rite Aid, the Subsidiary Loan Parties, the Senior
Lenders party thereto and the Administrative Agent.

 

“2013 Restatement Effective Date”
means February 21, 2013, which is the date on which a prior amendment and restatement of this credit agreement pursuant to the
2013 Amendment and Restatement Agreement became effective pursuant to its terms.

 

“2014 Restatement Effective Date”
means March 14, 2014.

 

“2015 8.5% Convertible Note Indenture”
means the Senior Debt Securities Indenture dated as of May 29, 2008, as supplemented by the First Supplemental Indenture dated
as of May 29, 2008, between the Borrower and The Bank of New York Trust Company, N.A., as trustee, relating to the 2015 8.5% Convertible
Notes.

 

    	2

    	 

    

 

“2015 8.5% Convertible Notes”
means the 8.5% Convertible Notes of the Borrower due 2015 issued pursuant to the 2015 8.5% Convertible Note Indenture.

 

“2015 Amendment and Restatement Agreement”
means the Amendment and Restatement Agreement dated as of January 13, 2015, among Rite Aid, the Senior Lenders party thereto and
the Administrative Agent.

 

“2015 Restatement Effective Date”
means January 13, 2015, which is the date on which the amendment and restatement of the Original Credit Agreement pursuant to the
2015 Amendment and Restatement Agreement became effective pursuant to its terms.

 

“2016 10.375% Note Indenture”
means the Indenture dated as of July 9, 2008, among Rite Aid, the Subsidiary Guarantors and The Bank of New York Mellon
Trust Company, N.A., as trustee, relating to the 2016 10.375% Notes.

 

“2016 10.375% Notes” means
the 10.375% Senior Secured Notes of the Borrower due 2016 issued pursuant to the 2016 10.375% Note Indenture, and the Guarantees
thereof by the Subsidiary Guarantors.

 

“2017 7.5% Note Indenture”
means the Indenture dated as of February 21, 2007, among Rite Aid, the Subsidiary Guarantors and The Bank of New York Mellon Trust
Company, N.A., as trustee, relating to the 2017 7.5% Notes.

 

“2017 7.5% Notes” means
the 7.5% Senior Secured Notes of the Borrower due 2017 issued pursuant to the 2017 7.5% Note Indenture, and the Guarantees thereof
by the Subsidiary Guarantors.

 

“2017 9.50% Note Indenture”
means the Amended and Restated Indenture dated as of June 4, 2007, among Rite Aid, the Subsidiary Guarantors and The Bank of New
York Mellon Trust Company, N.A., as trustee, relating to the 2017 9.50% Notes.

 

“2017 9.50% Notes” means
the 9.50% Senior Notes due 2017 issued pursuant to the 2017 9.50% Note Indenture, and the Guarantees thereof by the Subsidiary
Guarantors.

 

“2020 8.00% Notes” means
the Borrower’s 8.00% Senior Secured Notes due 2020 issued under.

 

“2020 8.00% Note Indenture”
means the indenture dated as of August 16, 2010, among the Borrower, the Subsidiary Guarantors and The Bank of New York Mellon
Trust Company, N.A., as trustee, relating to the 2020 8.00% Notes.

 

“2020 9.25% Notes” means
the Borrower’s 9.25% Senior Notes due 2020, issued under the indenture dated as of February 27, 2012, among Rite Aid,
the Subsidiary Guarantors and The Bank of New York Mellon Trust Company, N.A., as trustee.

 

    	3

    	 

    

 

“ABL
Priority Collateral” means any and all of the following that constitute Collateral, whether now owned or hereafter acquired
and wherever located: (a) all Accounts and Accounts Receivable (other than Accounts arising under agreements for sale of Non-ABL
Priority Collateral described in clauses (a) through (d) of such term to the extent constituting identifiable Proceeds of such
Non-ABL Priority Collateral); (b) all Payment Intangibles, including all corporate and other tax refunds and all Credit Card Accounts
Receivable and all other rights to payment arising therefrom in a credit-card, debit-card, prepaid-card or other payment-card transaction
(other than any Payment Intangibles constituting identifiable Proceeds of Non-ABL Priority Collateral described in clauses (a)
through (e) of the definition of such term); (c) all Inventory; (d) all Deposit Accounts, Securities Accounts and Commodity
Accounts (including the Cash Management Accounts, the Blocked Accounts, the Lockbox Accounts and the Government Lockbox Accounts)
and all cash, cash equivalents and other assets contained in, or credit to, and all Securities Entitlements arising from, any such
Deposit Accounts, Securities Accounts or Commodity Accounts (in each case, other than any identifiable Proceeds of Non-ABL Priority
Collateral described in clauses (a) through (e) of the definition of such term); (e) all rights to business interruption insurance
and all rights to credit insurance with respect to any Accounts (in each case, regardless of whether the Administrative Agent or
the Collateral Agent is the loss payee thereof); (f) all Prescription Files, including all Eligible Script Lists; (g) solely to
the extent evidencing, governing, securing or otherwise relating to any of the items constituting ABL Priority Collateral under
clauses (a) through (f) above, (i) all General Intangibles (excluding Intellectual Property and any Equity Interests, but including
contract rights and all rights as consignor or consignee, whether arising by contract, statute or otherwise), (ii) Instruments
(including promissory notes), (iii) Documents (including each warehouse receipt or bill of lading covering any Inventory), (iv)
licenses from any Governmental Authority to sell any Inventory and (v) Chattel Paper; (h) all collateral and guarantees given
by any other Person with respect to any of the foregoing, and all other Supporting Obligations (including Letter-of-Credit Rights)
with respect to any of the foregoing; (i) all books and Records to the extent relating to any of the foregoing; and (j) all products
and Proceeds of the foregoing. Notwithstanding the foregoing, the term “ABL Priority Collateral” shall not include
any assets referred to in clauses (a) through (e) of the definition of the term “Non-ABL Priority Collateral”. Capitalized
terms used in this definition but not defined herein have the meanings assigned to them in the Senior Subsidiary Security Agreement
or the New York UCC, as applicable.

 

“ABR”, when used in reference
to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined
by reference to the Alternate Base Rate.

 

“Accepting Lenders” shall
have the meaning assigned to such term in Section 9.19(a).

 

“Account” means any right
to payment for goods sold or leased or for services rendered, whether or not earned by performance.

 

    	4

    	 

    

 

“Account Debtor” means,
with respect to any Account, the obligor with respect to such Account.

 

“Accounts Receivable Advance Rate”
means the accounts receivable advance rate determined in accordance with Section 2.20.

 

“Additional Lender” means,
at any time, any bank or other financial institution (other than any such bank or financial institution that is a Lender at such
time) that agrees to provide any portion of any Incremental Facility or Refinancing Indebtedness pursuant to a Refinancing Amendment,
provided that each Additional Lender shall be subject to the approval of the Administrative Agent (such approval not to
be unreasonably withheld) and the Borrower.

 

“Additional Senior Debt”
means any Indebtedness of Rite Aid (other than Indebtedness constituting Senior Loan Obligations) Guaranteed by the Subsidiary
Guarantors pursuant to the Senior Subsidiary Guarantee Agreement (and not Guaranteed by any other Subsidiary) with such Guarantees
secured by the Senior Collateral on a pari passu basis (but without regard to control of remedies) with the Senior
Loan Obligations (and not secured by Liens on any other assets of Rite Aid or any Subsidiary); provided, however,
that (i) such Indebtedness is permitted to be incurred, secured and Guaranteed on such basis by each Senior Debt Document and Second
Priority Debt Document and (ii) the Representative for the holders of such Indebtedness shall have become party to (A) the Collateral
Trust and Intercreditor Agreement pursuant to, and by satisfying the conditions set forth in, Section 8.12 thereof and (B)
the Senior Lien Intercreditor Agreement pursuant to, and by satisfying the conditions set forth in, Section 5.02(c) thereof,
provided further that, if such Indebtedness will be the initial Additional Senior Debt incurred by Rite Aid, then
the Subsidiary Guarantors, the Senior Collateral Agent and the Representative for such Indebtedness shall have executed and delivered
the Senior Lien Intercreditor Agreement. Additional Senior Debt shall include any Registered Equivalent Notes and Guarantees thereof
by the Subsidiary Guarantors pursuant to the Senior Subsidiary Guarantee Agreement issued in exchange thereof. For the avoidance
of doubt, Split-Priority Term Loan Debt will not constitute Additional Senior Debt.

 

“Additional Senior Debt Documents”
means, with respect to any series, issue or class of Additional Senior Debt, the promissory notes, indentures, Collateral Documents
or other operative agreements evidencing or governing such Indebtedness, including the Senior Collateral Documents.

 

“Additional Senior Debt Facility”
means each indenture or other governing agreement with respect to any Additional Senior Debt.

 

“Additional Senior Debt Obligations”
means, with respect to any series, issue or class of Additional Senior Debt, (a) all principal of, and interest (including,
without limitation, any interest which accrues after the commencement of any Bankruptcy Proceeding, whether or not allowed or allowable
as a claim in any such proceeding) payable with respect to, such Additional Senior Debt, (b) all other amounts payable to
the related Additional Senior Debt Parties under the related Additional Senior Debt Documents and (c) any renewals or extensions
of the foregoing.

 

    	5

    	 

    

 

“Additional Senior Debt Parties”
means, with respect to any series, issue or class of Additional Senior Debt, the holders of such Indebtedness, any trustee or agent
therefor under any related Additional Senior Debt Documents and the beneficiaries of each indemnification obligation undertaken
by Rite Aid or any Obligor under any related Additional Senior Debt Documents, but shall not include the Obligors or any Controlled
Affiliates thereof (unless such Obligor or Controlled Affiliate is a holder of such Indebtedness, a trustee or agent therefor or
beneficiary of such an indemnification obligation named as such in an Additional Senior Debt Document).

 

“Adjusted LIBO Rate” means,
with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“Adjustment Date” means
the first day of each calendar month.

 

“Administrative Agent”
means CNAI, in its capacity as administrative agent for the Lenders.

 

“Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

“Affected Class” shall
have the meaning assigned to such term in Section 9.19(a).

 

“Affiliate” means, when
used with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

 

“Agents” means the Administrative
Agent, the Collateral Agent and each Borrowing Base Agent.

 

“Agent Parties” has the
meaning assigned to such term in Section 9.16(c).

 

“Alternate Base Rate” means,
for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds
Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one-month Interest Period commencing
on such day (or, if such day is not a Business Day, the immediately preceding Business Day) plus 1%; provided that, for
purposes of this definition the Adjusted LIBO Rate on any day shall be based on the rate per annum equal to the London interbank
offered rate as administered by the ICE Benchmark Administration Limited (or any other Person that takes over the administration
of such rate) for deposits in U.S. Dollars (for delivery on such day) with a term of one month as displayed on the Reuters screen
page that displays such rate (currently page LIBOR01) (or, in the event such rate does not appear on a page of the Reuters screen,
on the appropriate page of such other information service that publishes such rate as shall be selected by the Administrative Agent
from time to time in its reasonable discretion), at approximately 11:00 a.m., London time, two Business Days prior to such day.
If for any reason the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error)
that it is unable to ascertain the Federal Funds Effective Rate for any reason, including the inability or failure of the Administrative
Agent to obtain a quotation in accordance with the terms thereof, the Alternate Base Rate shall be determined without regard to
clause (b) of the first sentence of this definition until the circumstances giving rise to such inability no longer exist.
Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO
Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate
or the Adjusted LIBO Rate, as the case may be.

 

    	6

    	 

    

 

“Anti-Corruption
Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or any of its Subsidiaries
concerning or relating to bribery, corruption or money laundering, including the U.S. Foreign Corrupt Practices Act and the UK
Bribery Act.

 

“Applicable Percentage”
means, with respect to any Revolving Lender, the percentage of the total Revolving Commitments represented by such Lender’s
Revolving Commitment. If the Revolving Commitments have been terminated or expired, the Applicable Percentages shall be determined
based upon the Revolving Commitments most recently in effect, giving effect to any assignments.

 

“Applicable Rate” means,
on any day, (a) with respect to any ABR Loan (other than an Other Revolving Loan or a Term Loan) or Eurodollar Loan (other
than an Other Revolving Loan or a Term Loan), as the case may be, (i) from the 2015 Restatement Effective Date through July 13,
2015, 1.00% in the case of any ABR Loan and 2.00% in the case of any Eurodollar Loan, and (ii) thereafter, the applicable rate
per annum set forth below (expressed in basis points) under the caption “ABR Spread” or “Eurodollar Spread”,
as the case may be, in each case based upon the Average Revolver Availability determined as of the most recent Adjustment Date,
(b) with respect to any Other Revolving Loan or any Term Loan, the “Applicable Rate” set forth in the Refinancing
Amendment, Loan Modification Agreement or Incremental Facility Amendment relating thereto and (c) with respect to the commitment
fees payable hereunder, (i) from the 2015 Restatement Effective Date through July 13, 2015, 0.25% and (ii) thereafter, the applicable
rate per annum set forth below (expressed in basis points) under the caption “Commitment Fee Rate”, based upon the
Average Revolver Availability determined as of the most recent Adjustment Date:

 

    	7

    	 

    

 

	 
RATING:
	 	ABR Spread
 (bps)	 	 	Eurodollar Spread

    (bps)	 
	 	 	 	 	 	 	 
	Category 1
 Average Revolver Availability greater
    than or equal to 66.66% of the aggregate amount of the Revolving Commitments on the Adjustment Date	 	 	50	 	 	 	150	 
	 	 	 	 	 	 	 	 	 
	Category 2
 Average Revolver Availability greater than or equal
    to 33.33% but less than 66.66% of the aggregate  amount of the Revolving Commitments on the Adjustment Date	 	 	75	 	 	 	175	 
	 	 	 	 	 	 	 	 	 
	Category 3
 Average Revolver Availability less than 33.33%
    of the aggregate amount of the Revolving Commitments on the Adjustment Date	 	 	100	 	 	 	200	 

 

	RATING	 	Commitment Fee Rate
 (bps)
	 
	 	 	 	 
	Category 1
 Average Revolver Availability greater
    than or equal to 50% of the aggregate amount of the Revolving Commitments on the Adjustment Date	 	 	37.5	 
	 	 	 	 	 
	Category 2
 Average Revolver Availability less than 50% of
    the aggregate amount of the Revolving Commitments on the Adjustment Date	 	 	25	 

 

“Approved Fund” means (a)
with respect to any Lender, a CLO managed by such Lender or by an Affiliate of such Lender or (b) with respect to any Lender
that is a fund which invests in bank loans and similar extensions of credit, any other fund that invests in bank loans and similar
extensions of credit and is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment
advisor.

 

“Asset Sale” means any
sale, lease, assignment, transfer or other disposition (including pursuant to a Sale and Leaseback Transaction) of any property
or asset (whether now owned or hereafter acquired, whether in one transaction or a series of transactions and whether by way of
merger or otherwise) of the Borrower or any Subsidiary (including of any Equity Interest in a Subsidiary).

 

    	8

    	 

    

 

“Assignment and Acceptance”
means an assignment and acceptance entered into by a Lender and an assignee (with the consent of any party whose consent is required
by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit C or any other form approved
by the Administrative Agent.

 

“Attributable Debt” means,
as to any particular Capital Lease or Sale and Leaseback Transaction under which the Borrower or any Subsidiary is at the time
liable, as of any date as of which the amount thereof is to be determined (a) in the case of a transaction involving a Capital
Lease, the amount as of such date of Capital Lease Obligations with respect thereto and (b) in the case of a Sale and Leaseback
Transaction not involving a Capital Lease, the then present value of the minimum rental obligations under such Sale and Leaseback
Transaction during the remaining term thereof (after giving effect to any extensions at the option of the lessor) computed by discounting
the rental payments at the actual interest factor included in such payments or, if such interest factor cannot be readily determined,
at the rate per annum that would be applicable to a Capital Lease of the Borrower having similar payment terms. The amount of any
rental payment required to be made under any such Sale and Leaseback Transaction not involving a Capital Lease may exclude amounts
required to be paid by the lessee on account of maintenance and repairs, insurance, taxes, assessments, utilities, operating and
labor costs and similar charges, whether or not characterized as rent. Any determination of any rate implicit in the terms of a
Capital Lease or a lease in a Sale and Leaseback Transaction not involving a Capital Lease made in accordance with generally accepted
financial practices by the Borrower shall be binding and conclusive absent manifest error.

 

“Average Revolver Availability”
means, as determined on any Adjustment Date, the average daily Revolver Availability during the calendar month immediately preceding
such Adjustment Date.

 

“Bankruptcy
Event” means, with respect to any Person, that such Person has become the subject of a bankruptcy or insolvency proceeding,
or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person
charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative
Agent, has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in, any such proceeding
or appointment; provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition
of any ownership interest, in such Person by a Governmental Authority; provided, however, that such ownership interest
does not result in or provide such Person with immunity from the jurisdiction of courts within the United States of America or
from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such Governmental Authority) to
reject, repudiate, disavow or disaffirm any agreements made by such Person.

 

    	9

    	 

    

 

“Bankruptcy Proceeding”
means any proceeding under Title 11 of the U.S. Code or any other Federal, state or foreign bankruptcy, insolvency, reorganization,
receivership or similar law.

 

“Basket Asset Sale” means
any sale, transfer or disposition (including a Sale and Leaseback Transaction not involving any Mortgaged Property) of office locations,
Stores or other personal or real property (including any improvements thereon), whether or not constituting Mortgaged Property,
or leasehold interest therein for fair value in the ordinary course of business consistent with past practice and not inconsistent
with the business plan delivered to the Senior Lenders prior to the 2005 Restatement Effective Date; provided, however,
that (a) the aggregate consideration received therefor (including the fair market value of any non-cash consideration) shall
not exceed $200,000,000 in any fiscal year of Rite Aid (calculated without regard to Sale and Leaseback Transactions permitted
by Section 6.01(ix), (xiv) and (xv) of the Senior Credit Agreement) and (b) except with respect to any net consideration
received from any sale, transfer or disposition to a third Person of Stores, leases and prescription files closed at substantially
the same time as, and entered into as part of a single related transaction with, the purchase or other acquisition from such third
Person of Stores, leases and prescription files of a substantially equivalent value, at least 75% of such consideration shall consist
of cash.

 

“Board” means the Board
of Governors of the Federal Reserve System of the United States of America.

 

“Borrower” means Rite Aid
Corporation, a Delaware corporation.

 

“Borrowing” means (a) a
Loan of the same Class and Type, made, converted or continued on the same date and, in the case of a Eurodollar Loan, as to which
a single Interest Period is in effect or (b) a Swingline Loan.

 

“Borrowing Base Agent”
means, collectively, CNAI, Bank of America, N.A., General Electric Capital Corporation and Wells Fargo Bank, N.A. (in each case,
until the resignation thereof in accordance with Article VIII hereof); provided that any determination that is required
to be made by the “Borrowing Base Agent” pursuant to this Agreement (including under Section 5.08(b)) shall require,
and become effective with, the agreement of all Borrowing Base Agents; provided, however, in the event that the Borrowing
Base Agents cannot agree on any issue requiring the determination or approval of the Borrowing Base Agent, including the Borrowing
Base Amount, the determination of eligibility standards for the Borrowing Base Amount, the imposition of reserves, borrowing base
reporting, appraisals or examinations or any other action or determination required of the Borrowing Base Agent under the Senior
Loan Documents, the determination shall be made by the Borrowing Base Agent asserting the most conservative credit judgment.

 

    	10

    	 

    

 

“Borrowing Base Amount”
means an amount equal to the sum, without duplication, of the following;

 

(a)          the
Accounts Receivable Advance Rate multiplied by the book value of Eligible Accounts Receivable; plus

 

(b)          the
Pharmaceutical Inventory Advance Rate multiplied by the Eligible Pharmaceutical Inventory Value; plus

 

(c)          the
Other Inventory Advance Rate multiplied by the Eligible Other Inventory Value; plus

 

(d)          the
Script Lists Advance Rate multiplied by the Eligible Script Lists Value; plus

 

(e)          the
Credit Card Receivable Advance Rate multiplied by the book value of Eligible Credit Card Accounts Receivable; minus

 

(f)          a
reserve in an aggregate amount equal to the Borrower’s then-current exposure upon early termination under each of its existing
and future Hedging Agreements; minus

 

(g)          any
reserves established by any Borrowing Base Agent in the exercise of its commercially reasonable judgment to reflect Borrowing Base
Factors;

 

provided, that, for purposes of determining the Borrowing
Base Amount at any date of determination, the amount set forth in clause (d) of this definition shall not exceed 32.5% of
the Borrowing Base Amount .

 

The Borrowing Base Amount shall be computed and reported on
monthly with respect to Eligible Accounts Receivable, Eligible Inventory, Eligible Credit Card Accounts Receivable and Eligible
Script Lists, in each case in accordance with Sections 2.20 and 5.01(f), subject to the requirements in Section 5.01(f) for more
frequent computation and reporting of the components of the Borrowing Base Amount. The Borrowing Base Amount at any time in effect
shall be determined by reference to the Borrowing Base Certificate most recently delivered pursuant to Section 5.01(f).

 

“Borrowing Base Certificate”
means a certificate substantially in the form of Exhibit B or in such other form as the Agents may approve.

 

    	11

    	 

    

 

“Borrowing Base Factors”
means landlord’s liens affecting Eligible Inventory, factors affecting the saleability or collectability of Eligible Accounts
Receivable, Eligible Credit Card Accounts Receivable and Eligible Inventory at retail or in liquidation, factors affecting the
market value of Eligible Inventory, Eligible Accounts Receivable, Eligible Credit Card Accounts Receivable or Eligible Script Lists,
other impediments to the Collateral Agent’s ability to realize upon the Eligible Accounts Receivable, the Eligible Credit
Card Accounts Receivable, the Eligible Inventory or the Eligible Script Lists and other factors affecting the credit value to be
afforded the Eligible Accounts Receivable, the Eligible Inventory and the Eligible Script Lists, and such other factors as the
Borrowing Base Agent from time to time determine in their commercially reasonable discretion as being appropriate to reflect criteria,
events, conditions, contingencies or risks that adversely affect any component of the Borrowing Base Amount or to reflect that
a Default or an Event of Default then exists. Without limiting the generality of the foregoing, such Borrowing Base Factors may
include, in the Borrowing Base Agent’s commercially reasonable judgment acting in good faith (but are not limited to): (i) rent;
(ii) customs duties, and other costs to release inventory that is being imported into the United States; (iii) outstanding
taxes and other governmental charges, including ad valorem, real estate, personal property, sales and other taxes that may have
priority over the interests of the Senior Collateral Agent in the Collateral; (iv) if a Default or an Event of Default then
exists, salaries, wages and benefits due to employees of the Borrower or any Subsidiary Loan Party, (v) customer credit liabilities,
and (vi) warehousemen’s or bailee’s charges and other Permitted Encumbrances which may have priority over the
interests of the Collateral Agent in the Collateral.

 

“Borrowing Request” means
a request by the Borrower for a Borrowing in accordance with Section 2.03.

 

“Business Acquisition”
means (i) an Investment by the Borrower or any of the Subsidiaries in any other Person (including an Investment by way of
acquisition of debt or equity securities of any other Person) pursuant to which such Person shall become a Subsidiary or shall
be merged into or consolidated with the Borrower or any of the Subsidiaries or (ii) an acquisition by the Borrower or any
of the Subsidiaries of the property and assets of any Person (other than the Borrower or any of the Subsidiaries) that constitute
substantially all the assets of such Person or any division or other business unit of such Person; provided that the acquisition
of prescription files and Stores and the acquisition of Persons substantially all of whose assets consist of fewer than 10 Stores,
in each case in the ordinary course of business and not substantially inconsistent with the business projections of the Borrower
and the Subsidiaries delivered to the Lenders on or about the 2005 Restatement Effective Date shall not constitute a Business Acquisition.

 

“Business Day” means any
day other than a Saturday, Sunday or day on which commercial banks in New York City or Chicago, Illinois are authorized or required
by law to close; provided, however, that when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market.

 

“Capital Lease” means any
lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which, in accordance
with GAAP, should be capitalized on the lessee’s balance sheet.

 

“Capital Lease Obligations”
of any Person means the obligations of such Person to pay rent or other amounts under any Capital Lease, which obligations should
be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations
shall be the capitalized amount thereof determined in accordance with GAAP.

 

    	12

    	 

    

 

“Cash Collateralize” means,
to pledge and deposit with, or deliver to the Collateral Agent, for the benefit of an Issuing Bank, as collateral for the obligations
of the Borrower in respect of Letters of Credit or the obligations of Lenders to acquire participations in Letters of Credit, cash
or, if the Collateral Agent and the applicable Issuing Bank shall agree in their sole discretion, other credit support, in each
case pursuant to documentation in form and substance reasonably satisfactory to the Collateral Agent and each applicable Issuing
Bank. “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of
such cash collateral and other credit support.

 

“Cash Management System”
shall have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Cash Sweep Cash Collateral Account”
shall have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Cash Sweep Notice” shall
have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Cash Sweep Period” shall
have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Casualty/Condemnation”
means any event that gives rise to Casualty/ Condemnation Proceeds.

 

“Casualty/Condemnation Proceeds”
means:

 

(a)          any
insurance proceeds under any insurance policies or otherwise with respect to any casualty or other insured damage to any properties
or assets of the Borrower or the Subsidiaries; and

 

(b)          any
proceeds received by the Borrower or any Subsidiary in connection with any action or proceeding for the taking of any properties
or assets of the Borrower or the Subsidiaries, or any part thereof or interest therein, for public or quasi-public use under the
power of eminent domain, by reason of any similar public improvement or condemnation proceeding;

 

minus, in each case (i) any fees, commissions
and expenses (including the costs of adjustment and condemnation proceedings) and other costs paid or incurred by the Borrower
or any Subsidiary in connection therewith, (ii) the amount of income taxes reasonably estimated to be payable as a result of any
gain recognized in connection with the receipt of such payment or proceeds and (iii) the amount of any Indebtedness (or Attributable
Debt), other than the Senior Obligations, together with premium or penalty, if any, and interest thereon (or comparable obligations
in respect of Attributable Debt), that is secured by a Lien on (or if Attributable Debt, the lease of) the properties or assets
in question and that has priority over both the Senior Lien and the Second Priority Lien, that is required to be repaid as a result
of the receipt by the Borrower or a Subsidiary of such payments or proceeds; provided, however, that no such proceeds
shall constitute Casualty/Condemnation Proceeds to the extent that such proceeds are (A) reinvested in other like fixed or capital
assets within 270 days of the Casualty/Condemnation that gave rise to such proceeds or (B) committed to be reinvested in other
like fixed or capital assets within 270 days of such Casualty/Condemnation, with diligent pursuit of such reinvestment, and reinvested
in such assets within 365 days of such Casualty/ Condemnation.

 

    	13

    	 

    

 

“Change in Control” means
(a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning
of the Securities Exchange Act of 1934, as amended, and the rules of the SEC thereunder as in effect on the 2015 Restatement Effective
Date) of 40% or more of the outstanding shares of common stock of the Borrower; (b) at the end of any period of 12 consecutive
calendar months, the occupation of a majority of the seats on the board of directors of the Borrower by Persons who were not members
of the board of directors of the Borrower on the first day of such period (other than any new directors whose election or appointment
by such board of directors or whose nomination for election by the stockholders of the Borrower was approved by a vote of not less
than three-fourths of the directors then still in office who were either directors at the beginning of such period or whose election
or nomination for election was previously so approved); or (c) the occurrence of a “Change of Control”, as defined
in any indenture or other agreement that governs the terms of any Material Indebtedness.

 

“Change in Law” means the
occurrence, after the 2015 Restatement Effective Date, of any of the following: (a) the adoption of any law, rule, regulation
or treaty, (b) any change in any law, rule, regulation or treaty or in the interpretation or application thereof by any Governmental
Authority or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(b), by any lending office
of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or issued after the 2015 Restatement Effective Date;
provided, however, that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and
Consumer Protection Act and each request, rule, guideline or directive thereunder or issued in connection therewith and (y) all
requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant
to Basel III, shall in each case under clauses (x) and (y) above be deemed to be a “Change in Law”, regardless
of the date enacted, adopted or issued.

 

“Charges” has the meaning
assigned to such term in Section 9.13.

 

“Citibank” means Citibank,
N.A.

 

    	14

    	 

    

 

“Citibank Concentration Account”
shall have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Class”, when used in reference
to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Other Revolving
Loans of any series, Term Loans of any series or Swingline Loans and, when used in reference to any Commitment, refers to whether
such Commitment is a Revolving Commitment, an Other Revolving Commitment of any series or a Term Commitment of any series.

 

“CLO” means any entity
(whether a corporation, partnership, trust or otherwise) that is engaged in making, purchasing, holding or otherwise investing
in bank loans and similar extensions of credit in the ordinary course of its business and is administered or managed by a Lender
or an Affiliate of a Lender.

 

“Code” means the Internal
Revenue Code of 1986, as amended from time to time.

 

“Collateral” means the
Senior Collateral and the Second Priority Collateral.

 

“Collateral Agent” means
the Senior Collateral Agent.

 

“Collateral and Guarantee Requirement”
means the requirement that:

 

(a)          the
Administrative Agent shall have received from each Subsidiary Loan Party either (i) a counterpart of, or a supplement to, each
Senior Collateral Document duly executed and delivered on behalf of such Loan Party or (ii) in the case of any Person that becomes
a Subsidiary Loan Party after the Second Restatement Effective Date, a supplement to each applicable Senior Collateral Document,
in the form specified therein, duly executed and delivered on behalf of such Subsidiary Loan Party;

 

(b)          (i) all
documents and instruments, including Uniform Commercial Code financing statements, required by law or reasonably requested by the
Administrative Agent to be filed, registered or recorded to create the Liens intended to be created by the Senior Collateral Documents
and perfect such Liens to the extent required by, and with the priority required by, this Agreement and the Senior Collateral Documents,
shall have been filed, registered or recorded or delivered to the Administrative Agent (with a copy to each Borrowing Base Agent)
for filing, registration or recording or (ii) the Administrative Agent shall have been provided with all authorizations, consents
and approvals from each Loan Party, Governmental Authority and other Person reasonably requested by it to file, record or register
all documents and instruments referred to in clause (b)(i) of this definition; and

 

(c)          each
Loan Party shall have obtained all consents and approvals required to be obtained by it in connection with the execution and delivery
of all Senior Collateral Documents to which it is a party, the performance of its obligations thereunder and the granting by it
of the Liens thereunder.

 

    	15

    	 

    

 

“Collateral Documents”
means the Senior Collateral Documents and the Second Priority Collateral Documents.

 

“Collateral Trust and Intercreditor
Agreement” means the Amended and Restated Collateral Trust and Intercreditor Agreement, dated as of June 27, 2001, as
amended and restated as of May 28, 2003, as further amended and restated as of June 5, 2009 (as amended, supplemented or otherwise
modified from time to time), among Rite Aid, the Subsidiary Guarantors, the Second Priority Collateral Trustee, the Senior Collateral
Agent and each other Representative.

 

“Commitment” means the
Revolving Commitments, the Other Revolving Commitments (if any) and the Term Commitments (if any), or any combination thereof (as
the context requires).

 

“Communications” has the
meaning assigned to such term in Section 9.16(a).

 

“Consolidated Capital Expenditures”
means, for any period, the aggregate amount of expenditures by the Borrower and its Consolidated Subsidiaries for plant, property
and equipment and prescription files during such period (including any such expenditure by way of acquisition of a Person or by
way of assumption of Indebtedness or other obligations of a Person, to the extent reflected as plant, property and equipment or
as prescription file assets) minus the aggregate amount of Net Cash Proceeds received by the Borrower and its Consolidated
Subsidiaries from the sale of Stores to third parties pursuant to Sale and Leaseback Transactions; provided that the aggregate
amount of expenditures by the Borrower and its Consolidated Subsidiaries referred to above shall exclude, without duplication,
(i) any such expenditures made for the replacement or restoration of assets to the extent financed by Casualty/Condemnation
Proceeds relating to the asset or assets being replaced or restored, (ii) any amounts paid to any party under a lease entered
into in connection with a Sale and Leaseback Transaction with respect to the termination of such lease and the reacquisition by
the Borrower or any of the Subsidiaries of the property subject to such lease and (iii) any such expenditures made for the
purchase or other acquisition from a third party of Stores, leases and prescription files, but only to the extent that an equivalent
or greater amount is received from such third party as consideration for the sale or other disposition to such third party of Stores,
leases and/or prescription files of a substantially equivalent value closed at substantially the same time as, and entered into
as part of a single related transaction with, such purchase or acquisition (and if a lesser amount is received from such third
party as consideration for such sale or other disposition, then the amount of Consolidated Capital Expenditures for purposes hereof
shall be the expenditures made net of the consideration received); provided further that Consolidated Capital Expenditures
shall in no case be less than zero.

 

    	16

    	 

    

 

“Consolidated EBITDA” means,
for any period, without duplication, Consolidated Net Income for such period, plus (a) to the extent deducted (or excluded)
in determining Consolidated Net Income for such period, the aggregate amount of (i) consolidated interest expenses, whether
cash or non-cash, and charges, commissions, discounts, yield and other similar fees and charges incurred pursuant to Factoring
Transactions or by Securitization Vehicles in connection with Securitizations which are payable to any Person other than a Loan
Party, and any other amounts comparable to or in the nature of interest under any Securitization or Factoring Transaction, including
losses on the sale of Securitization Assets in a Securitization accounted for as a “true sale” or Factoring Assets
in a Factoring Transaction accounted for as a “true sale,” (ii) provision for income taxes, (iii) depreciation
and amortization, (iv) LIFO Adjustments which reduced such Consolidated Net Income, (v) store closing and non-cash impairment
expenses, (vi) any other nonrecurring charge to the extent such nonrecurring charge does not involve any cash expenditure
during such period, (vii) non-cash compensation expenses related to stock option and restricted stock employee benefit plans,
(viii) the non-cash interest component, as adjusted from time to time, in respect of reserves, (ix) all costs, fees,
charges and expenses incurred in connection with the Transactions, (x) all Integration Expenses; provided that the
aggregate amount of such expenses for any period shall not exceed an amount equal to 10% of Consolidated EBITDA for the period
of four consecutive fiscal quarters most recently ended prior to the determination date (without giving effect to any adjustment
pursuant to this clause (x)) and (xi)  an amount equal to revenue deferrals during such period in respect of the Borrower’s
customer loyalty card program, and minus (b) to the extent not deducted in determining Consolidated Net Income for
such period, the aggregate amount of (i) any cash expenditure during such period in connection with which a nonrecurring charge
was taken and added back to Consolidated Net Income pursuant to clause (a) above in calculating Consolidated EBITDA in any prior
period, (ii) LIFO Adjustments which increased such Consolidated Net Income and (iii) the amount of revenues recognized in such
period that were added back in calculating Consolidated EBITDA in any prior period pursuant to clause (a)(xi) above.

 

“Consolidated Fixed Charge Coverage
Ratio” means, for any period, the ratio of (i) Consolidated EBITDA plus Consolidated Rent less Consolidated
Capital Expenditures to (ii) Consolidated Interest Charges plus Consolidated Rent plus cash dividends paid pursuant
to Section 6.08(a), in each case for such period and determined in accordance with GAAP.

 

“Consolidated Interest Charges”
means, for any period, the aggregate amount of interest charges, whether expensed or capitalized, incurred or accrued during such
period by the Borrower and its Consolidated Subsidiaries, solely to the extent paid or payable (whether during or after such period)
in cash (i) minus non-cash interest expenses during such period related to (x) litigation reserves, (y) closed
store liability reserves, if any, and (z) self-insurance reserves and (ii) plus, to the extent not otherwise included
in such interest charges, commissions, discounts, yield and other similar fees and charges incurred pursuant to Factoring Transactions
or by Securitization Vehicles in connection with Securitizations which are payable to any Person other than a Loan Party, and any
other amounts comparable to or in the nature of interest under any Securitization or Factoring Transaction, including losses on
the sale of Securitization Assets in a Securitization accounted for as a “true sale” or Factoring Assets in a Factoring
Transaction accounted for as a “true sale”.

 

    	17

    	 

    

 

“Consolidated Net Income”
means, for any period, the net income (or loss) of the Borrower and its Consolidated Subsidiaries (exclusive of (a) extraordinary
items of gain or loss during such period or gains or losses from Indebtedness modifications during such period, (b) any gain
or loss in connection with any Asset Sale during such period, other than sales of inventory in the ordinary course of business,
but in the case of any loss only to the extent that such loss does not involve any current or future cash expenditure, (c) the
cumulative effect of accounting changes during such period and (d) net income or loss attributable to any Investments in Persons
other than Affiliates of the Borrower), determined on a consolidated basis for such period in accordance with GAAP.

 

“Consolidated Rent” means,
for any period, the consolidated rental expense of the Borrower and its Consolidated Subsidiaries for such period, and including
in any event rental costs of closed stores for such period whether or not reflected as an expense in the determination of Consolidated
Net Income for such period.

 

“Consolidated Subsidiary”
means, with respect to any Person, at any date, any Subsidiary or other entity the accounts of which would, in accordance with
GAAP, be consolidated with those of such Person in its consolidated financial statements if such statements were prepared as of
such date.

 

“Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through
the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Convertible Debt” means
any debt security of the Borrower issued in the capital markets which, by its terms, may be converted or exchanged, in whole or
part, at the option of the holder thereof into common Equity Interests of the Borrower.

 

“CNAI” means Citicorp North
America, Inc.

 

“Credit Card Accounts Receivable”
means any receivables or payment intangible due to any Subsidiary Loan Party from the credit card or debit card issuer in connection
with purchases from and other goods and services provided by such Subsidiary Loan Party on the following credit cards or debit
cards: Visa, MasterCard, American Express, Diners Club, Discover, JCB, Carte Blanche and such other credit cards or debit cards
as the Borrowing Base Agent shall approve in its commercially reasonable judgment from time to time, in each case which have been
earned by performance by such Subsidiary Loan Party but not yet paid to such Subsidiary Loan Party by the credit card or debit
card issuer or the credit card or debit card processor, as applicable.

 

    	18

    	 

    

 

“Credit Card Receivable Advance Rate”
means the accounts receivable advance rate determined in accordance with Section 2.20.

 

“Credit Exposure”
means, with respect to any Lender at any time, the sum of the principal amount of such Lender’s Loans outstanding at such
time, such Lender’s LC Exposure at such time and such Lender’s Swingline Exposure at such time.

 

“Credit Party”
means the Administrative Agent, each Issuing Bank, the Swingline Lender and each other Lender.

 

“Debt Facility” means any
Senior Facility and any Second Priority Debt Facility, or any combination thereof (as the context requires).

 

“Default” means any event
or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become
an Event of Default.

 

“Defaulting Lender”
means, subject to Section 2.22(b), any Lender that (a) has failed, within two Business Days of the date required to be funded or
paid, to (i) fund all or any portion of its Loans unless such Lender notifies the Administrative Agent in writing that such failure
is the result of such Lender’s good faith determination that one or more conditions precedent to funding (each of which conditions
precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, (ii)
fund any portion of its participations in Letters of Credit or (iii) pay to the Administrative Agent, any Issuing Bank, any Swingline
Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters
of Credit or Swingline Loans), (b) has notified the Borrower, the Administrative Agent, any Issuing Bank or any Swingline Lender
in writing that it does not intend or expect to comply with its funding obligations hereunder or generally under other agreements
in which it commits to extend credit, or has made a public statement to that effect (unless such writing or public statement relates
to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s good faith
determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be
specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after
written request by the Administrative Agent, any Issuing Bank or the Borrower made in good faith, to provide a certification from
an authorized officer of such Lender in writing to the Administrative Agent and the Borrower that it will comply with its obligations
(and is financially able to meet such obligations) hereunder to fund prospective Loans and participations in outstanding Letters
of Credit (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such
written certification by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that
has, other than pursuant to an Undisclosed Administration, (i) become the subject of a proceeding under any federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect, or (ii) had appointed for it a receiver, custodian,
conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation
of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority
acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or
acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority
so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within
the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental
Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the
Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive
and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.22(b)) upon
delivery of written notice of such determination to the Borrower, each Issuing Bank, each Swingline Lender and each Lender.

 

    	19

    	 

    

 

“Definitions Annex” means
the definitions annex attached hereto as Annex 1 (as the same may be amended, supplemented or otherwise modified from time
to time).

 

“Deposit Account” shall
have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Direct Delivery Vendor”
has the meaning assigned to such term in the Intercompany Inventory Purchase Agreement.

 

“Disqualified Preferred Stock”
means Preferred Stock of the Borrower that is not Qualified Preferred Stock.

 

“dollars” and “$”
each refer to lawful money of the United States of America.

 

“Domestic Subsidiary” means
any Subsidiary incorporated or organized under the laws of the United States of America, any State thereof or the District of Columbia.

 

“Effective Date Indentures”
mean, collectively, (a) the Indenture dated as of December 21, 1998, between Rite Aid and Harris Trust and Savings Bank, as trustee
and (b) the Indenture dated as of August 1, 1993, between Rite Aid and Morgan Guaranty Trust Company of New York, as trustee.

 

“Eligible Accounts Receivable”
means, at any date of determination, all Accounts that satisfy at the time of creation and continue to meet the same at the time
of such determination the usual and customary eligibility criteria established from time to time by the Borrowing Base Agent in
its commercially reasonable judgment. On the 2015 Restatement Effective Date, those criteria are:

 

    	20

    	 

    

 

(a)          such
Account constitutes an “account” or “chattel paper” within the meaning of the Uniform Commercial Code of
the state in which the Account is located;

 

(b)          all
payments on such Account are by the terms of such Account due not later than 90 days after the date of service (i.e.,
the transaction date) and are otherwise on terms that are normal and customary in the business of the Borrower and the Subsidiaries;

 

(c)          such
Account has been billed and has not remained unpaid for more than 120 days following the date of service;

 

(d)          such
Account is denominated in dollars;

 

(e)          such
Account arose from a completed, outright and lawful sale of goods or the completed performance of services by the applicable Subsidiary
Loan Party and accepted by the applicable Account Debtor, and the amount of such Account has been properly recognized as revenue
on the books of the applicable Subsidiary Loan Party;

 

(f)          such
Account is owned solely by a Subsidiary Loan Party (and has not been transferred pursuant to a Securitization or a Factoring Transaction);

 

(g)          the
proceeds of such Account are payable solely to a Deposit Account which (A) is under the control of the Collateral Agent and
(B) has not been released or transferred in accordance with Section 5.16 or otherwise;

 

(h)          such
Account arose in the ordinary course of business of the applicable Subsidiary Loan Party;

 

(i)          not
more than 50% of the aggregate amount of Accounts from the same Account Debtor and any Affiliates thereof remain unpaid for more
than 120 days following the date of service;

 

(j)          to
the knowledge of the Borrower and the Subsidiaries, no event of death, bankruptcy, insolvency or inability to pay creditors generally
of the Account Debtor of such Account has occurred, and no notice thereof has been received;

 

(k)          payment
of such Account is not being disputed by the Account Debtor thereof and is not subject to any material bona fide claim, counterclaim,
offset or chargeback;

 

(l)          such
Account complies in all material respects with the requirements of all applicable laws and regulations, whether Federal, state
or local, including the Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and Regulation Z of the Federal
Reserve Board;

 

    	21

    	 

    

 

(m)          with
respect to such Account, the Account Debtor (i) is organized in the United States (or, if such Account Debtor is not organized
in the United States, such Account is supported by a letter of credit approved by the Collateral Agent in favor of the applicable
Subsidiary Loan Party) and (ii) is not an Affiliate or Subsidiary or an Affiliate of any of the Subsidiaries;

 

(n)          such
Account is subject to a perfected first priority security interest in favor of the Collateral Agent for the benefit of the Lenders
pursuant to the Senior Collateral Documents and is not subject to any other Lien (other than the Second Priority Lien);

 

(o)          with
respect to any such Account for an amount greater than $5,000,000, the Account Debtor has not been disapproved by the Required
Lenders (based, on the Required Lenders’ reasonable judgment, upon the creditworthiness of such Account Debtor);

 

(p)          the
representations and warranties contained in the Senior Loan Documents with respect to such Account are true and correct in all
material respects;

 

(q)          such
Account does not consist of amounts due from vendors as rebates or allowances;

 

(r)          such
Account is in full force and effect and constitutes a legal, valid and binding obligation of the Account Debtor, enforceable against
such Account Debtor in accordance with its terms; and

 

(s)          if
such Account is purchased by a Subsidiary Guarantor in connection with an Incremental Securitization Refinancing Facility or a
Securitization Refinancing, then the Borrowing Base Agent shall have completed its due diligence with respect to such Account,
including its completion of, and satisfaction with, an audit of the Account, in scope, form and substance reasonably satisfactory
to the Borrowing Base Agent.

 

“Eligible Credit Card Accounts Receivable”
means, at any date of determination, any Credit Card Account Receivable that (i) has been earned and represents the bona fide amounts
due to a Subsidiary Loan Party from a credit card or debit card processor and/or credit card or debit card issuer, and in each
case originated in the ordinary course of business of the applicable Subsidiary Loan Party and (ii) is not excluded as an Eligible
Credit Card Accounts Receivable pursuant to any of clauses (a) through (i) below. Without limiting the foregoing, to qualify as
an Eligible Credit Card Accounts Receivable, a Credit Card Account Receivable shall indicate no Person other than a Subsidiary
Loan Party as payee or remittance party. Eligible Credit Card Accounts Receivable shall not include any Credit Card Account Receivable
if:

 

(a)          such
Credit Card Account Receivable is not owned by a Subsidiary Loan Party or such Subsidiary Loan Party does not have good or marketable
title to such Credit Card Account Receivable;

 

    	22

    	 

    

 

(b)          such
Credit Card Account Receivable does not constitute (i) an “Account” (as defined in the UCC), unless such Credit Card
Account Receivable is evidenced by “chattel paper” or an “instrument” of any kind, or (ii) a “Payment
Intangible” (as defined in the UCC);

 

(c)          such
Credit Card Account Receivable has been outstanding more than five Business Days.

 

(d)          the
credit card or debit card issuer or credit card or debit card processor of the applicable credit card or debit card with respect
to such Credit Card Account Receivable is the subject of any bankruptcy or insolvency proceedings;

 

(e)          such
Credit Card Account Receivable is not a valid, legally enforceable obligation of the applicable credit card or debit card issuer
with respect thereto;

 

(f)          such
Credit Card Account Receivable is not subject to a properly perfected security interest in favor of the Collateral Agent, or is
subject to any Lien whatsoever other than any Lien created pursuant to the Senior Debt Documents or the Second Priority Debt Documents
and any Permitted Encumbrances contemplated by the processor agreements and for which appropriate reserves (as determined by the
Borrowing Base Agent in the exercise of its commercially reasonable judgment) have been established or maintained by the Loan Parties;

 

(g)          such
Credit Card Account Receivable does not conform in all material respects to all representations, warranties or other provisions
in the Senior Debt Documents, the Second Priority Debt Documents or in the credit card or debit card agreements relating to such
Credit Card Account Receivable or any default exists under the applicable credit card or debit card agreement;

 

(h)          such
Credit Card Account Receivable is subject to risk of set-off, non-collection or not being processed due to unpaid and/or accrued
credit card or debit card processor fee balances, to the extent of the lesser of the balance of such Credit Card Account Receivable
or unpaid credit card or debit card processor fees;

 

(i)          such
Credit Card Account Receivable is evidenced by “chattel paper” or an “instrument” of any kind unless such
“chattel paper” or “instrument” is in the possession of the Collateral Agent, and to the extent necessary
or appropriate, endorsed to the Collateral Agent; or

 

(j)          such
Credit Card Account Receivable does not meet such other usual and customary eligibility criteria for Credit Card Account Receivables
as the Borrowing Base Agent may determine from time to time in its commercially reasonable judgment.

 

    	23

    	 

    

  

In determining the amount to be so included
in the calculation of the value of an Eligible Credit Card Accounts Receivable, the face amount thereof shall be reduced by, without
duplication, to the extent not reflected in such face amount, (i) the amount of all customary fees and expenses in connection with
any credit card or debit card arrangements and (ii) the aggregate amount of all cash received in respect thereof but not yet applied
by the Subsidiary Loan Party to reduce the amount of such Eligible Credit Card Accounts Receivable.

 

“Eligible Inventory” means,
at any date of determination, all inventory (as defined in the Uniform Commercial Code) owned by any Subsidiary Loan Party that
satisfies at the time of such determination the usual and customary eligibility criteria established from time to time by the Borrowing
Base Agent in its commercially reasonable judgment. On the 2015 Restatement Effective Date, Eligible Inventory shall exclude, without
duplication, the following:

 

(a)          any
such inventory that has been shipped to a customer, even if on a consignment or “sale or return” basis, or is otherwise
not in the possession or control of or any Subsidiary Loan Party or a warehouseman or bailee of any Subsidiary Loan Party;

 

(b)          any
inventory against which any Subsidiary Loan Party has taken a reserve, to the extent of such reserve, to the extent specified by
the Borrowing Base Agent from time to time in its commercially reasonable judgment to reflect Borrowing Base Factors;

 

(c)          any
inventory that has been discontinued or is otherwise of a type (SKU) not currently offered for sale on a regular basis by the Subsidiary
Loan Parties (including any such inventory obtained in connection with a Business Acquisition) to the extent specified by the Borrowing
Base Agent from time to time in its commercially reasonable judgment to reflect Borrowing Base Factors;

 

(d)          inventory
acquired in a Business Acquisition if the increase in the Borrowing Base Amount attributable to such inventory is greater than
$50,000,000, unless and until the Borrowing Base Agent has completed or received (A) an appraisal of such inventory from appraisers
satisfactory to the Borrowing Base Agent, establishes an advance rate and reserves therefor and otherwise agrees that such inventory
shall be deemed Eligible Inventory and (B) such other due diligence as the Borrowing Base Agent may require, all of the results
of the foregoing in respect of such inventory to be reasonably satisfactory to the Borrowing Base Agent;

 

(e)          any
inventory not located in the United States or otherwise not subject to a valid and perfected Lien under the Senior Collateral Documents,
subject to no prior or equal Lien;

 

(f)          any
supply, scrap or obsolete inventory or inventory that is otherwise unsaleable;

 

    	24

    	 

    

 

 

(g)          any
inventory that is past its expiration date, is damaged or not in good condition, is a sample used for marketing purposes or does
not meet all material standards imposed by any governmental authority having regulatory authority over such inventory, except in
each case to the extent of its net realizable value as determined by the Borrowing Base Agent from time to time in its commercially
reasonable judgment;

 

(h)          any
inventory that is subject to any licensing, patent, royalty, trademark, trade name or copyright agreement with any third Person
from whom the Borrower or any of its Subsidiaries has received notice of a dispute in respect of such agreement, to the extent
that the Borrowing Base Agent determines, in its commercially reasonable judgment, that such dispute could be expected to prevent
the sale of such inventory;

 

(i)          any
inventory which is subject to a negotiable document of title which has not been delivered to the Administrative Agent;

 

(j)          any
inventory to the extent that such inventory is not comprised of readily marketable materials of a type manufactured, consumed or
held for resale by the Subsidiary Loan Parties in the ordinary course of business;

 

(k)          any
inventory to the extent that such inventory consists of raw materials, component parts and/or work-in-progress;

 

(l)          any
inventory in respect of which the applicable representations and warranties in the Senior Loan Documents are not true and correct
in all material respects;

 

(m)          any
inventory to which the Subsidiary Loan Parties do not have good title or any inventory which a Subsidiary Loan Party holds on consignment
or on a “sale or return” basis; and

 

(n)          any
inventory (as notified by the Collateral Agent to the Borrower) that the Borrowing Base Agent has, in its commercially reasonable
judgment, deemed ineligible in order to reflect Borrowing Base Factors;

 

provided, however, that no inventory which is
stored at a distribution center leased by the Borrower or any other Person shall be considered “Eligible Inventory”
unless the lessor of such leased distribution center of the Subsidiary Loan Parties shall have executed and delivered to the Collateral
Agent a waiver, reasonably satisfactory to the Borrowing Base Agent, of any statutory, common law or contractual landlord’s
lien with respect to any inventory of any Subsidiary Loan Party (other than with respect to inventory located at leased warehouses
having a value in the aggregate not to exceed $40,000,000) and such waiver shall be in full force and effect (or the Borrowing
Base Agent shall have granted a waiver to such compliance), it being understood that such waivers previously obtained and so delivered
pursuant to the Senior Credit Agreement prior to the 2015 Restatement Effective Date (if continuing in full force and effect) are
reasonably satisfactory to the Borrowing Base Agent.

 

    	25

    	 

    

 

“Eligible Other Inventory Value”
means, at any date of determination, an amount equal to (i) the cost of Eligible Inventory that is Other Inventory (less
any appropriate reserve for obsolete Other Inventory and any profits accrued in connection with transfers of Other Inventory between
the Borrower and the Subsidiaries or between Subsidiaries) at such date, in dollars, determined in accordance with GAAP consistently
applied and on a basis consistent with that used in the preparation of the most recent audited consolidated financial statements
of the Borrower and its Consolidated Subsidiaries delivered to the Lenders pursuant to Section 5.01(a) multiplied by
(ii) the Net Orderly Liquidation Rate with respect to such Other Inventory.

 

“Eligible Pharmaceutical Inventory
Value” means, at any date of determination, an amount equal to (i) the cost of Eligible Inventory that is Pharmaceutical
Inventory (less any appropriate reserve for obsolete Pharmaceutical Inventory and any profits accrued in connection with
transfers of Pharmaceutical Inventory between the Borrower and the Subsidiaries or between Subsidiaries) at such date, in dollars,
determined in accordance with GAAP consistently applied and on a basis consistent with that used in the preparation of the most
recent audited consolidated financial statements of the Borrower and its Consolidated Subsidiaries delivered to the Lenders pursuant
to Section 5.01(a) multiplied by (ii) the Net Orderly Liquidation Rate with respect to such Pharmaceutical
Inventory.

 

“Eligible Script Lists”
means, at any date of determination, all lists owned and maintained on such date by the Subsidiary Loan Parties setting forth Persons
(and addresses, telephone numbers or other contact information therefor) who currently purchase or otherwise obtain, in any Store
owned or operated by any Subsidiary Loan Party, medication required to be dispensed by a licensed professional.

 

“Eligible Script Lists Value”
means, at any date of determination, the liquidation value of the Eligible Script Lists in dollars, as most recently determined
in connection with an appraisal performed for purposes of this Agreement by Washburn & Associates or such other appraisal firm
satisfactory to the Borrowing Base Agent.

 

“Environmental Laws” means
all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.

 

“Environmental Liability”
means all liabilities, obligations, damages, losses, claims, actions, suits, judgments, orders, fines, penalties, fees, expenses
and costs, (including administrative oversight costs, natural resource damages and remediation costs), whether contingent or otherwise,
arising out of or relating to: (a) compliance or non-compliance with any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

 

    	26

    	 

    

 

“Equity Interests” means
shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” means
any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b)
or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer
under Section 414 of the Code.

 

“ERISA Event” means (a) any
“reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether
or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the
Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan
or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; (g) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate
of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA; or (h) the existence of any event or
condition that could reasonably be expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee
to administer, any Plan.

 

“Eurodollar”, when used
in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Adjusted LIBO Rate.

 

“Event of Default” has
the meaning assigned to such term in Article VII.

 

“Excess Cash Flow” means,
for any fiscal year, without duplication, of:

 

(a)          net
cash proceeds from operating activities adjusted by net (repayments to) proceeds from accounts receivable securitization as reflected
in the statement of cash flows to the financial statements of the Borrower filed with the SEC for the applicable fiscal year; minus

 

    	27

    	 

    

  

(b)          the
sum of (i) Consolidated Capital Expenditures for such fiscal year (except to the extent attributable to the incurrence of
Capital Lease Obligations or synthetic lease obligations or otherwise financed by incurring Long-Term Indebtedness (exclusive of
Revolving Loans and Other Revolving Loans), by issuing Equity Interests (exclusive of any issuance of Equity Interests to the Borrower
or any of the Subsidiaries and any amounts prepaid pursuant to Section 2.11(c)(ii)), through the receipt of capital contributions
(other than capital contributions made by the Borrower or any of the Subsidiaries) or using the proceeds of any disposition of
assets outside the ordinary course of business or other proceeds not included in Consolidated Net Income) plus (ii) cash
consideration paid during such fiscal year to make acquisitions or other capital investments (except to the extent financed by
incurring Long-Term Indebtedness (exclusive of Revolving Loans and Other Revolving Loans), by issuing Equity Interests (other than
to the Borrower or any of the Subsidiaries), through the receipt of capital contributions (other than capital contributions made
by the Borrower or any of the Subsidiaries) or using the proceeds of any disposition of assets outside the ordinary course of business
or other proceeds not included in Consolidated Net Income); minus

 

(c)          the
aggregate principal amount of Long-Term Indebtedness repaid, prepaid, repurchased, redeemed or defeased (other than with the proceeds
of Refinancing Indebtedness) by the Borrower and its Consolidated Subsidiaries during such fiscal year, excluding Indebtedness
in respect of Revolving Loans and Other Revolving Loans (except to the extent accompanied by a corresponding reduction in Revolving
Commitments or Other Revolving Commitments pursuant to Section 2.08) and Letters of Credit.

 

“Excluded Taxes” means,
with respect to any Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) income Taxes imposed on (or measured by) its net income (however denominated) or franchise
Taxes, in each case, (i) imposed by the United States of America, or by the jurisdiction under the laws of which such recipient
is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office
is located or (ii) that are Other Connection Taxes, (b) any branch profits Taxes imposed by the United States of America or any
similar Tax imposed by any other jurisdiction described in clause (a) above, (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 2.19(b)), any U.S. Federal withholding Tax that (i) is in effect and
would apply to amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates
a new lending office), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation
of a new lending office (or assignment), to receive additional amounts from the Borrower with respect to any withholding Tax pursuant
to Section 2.17(a), or (ii) is attributable to such Foreign Lender’s failure to comply with Section 2.17(f) and (d) any U.S.
Federal withholding Taxes imposed under FATCA.

 

“Existing Additional Senior Debt”
means Additional Senior Debt outstanding on the 2013 Restatement Effective Date, consisting of the Borrower’s 2020 8.00%
Notes.

 

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“Existing Guaranteed Unsecured Indebtedness”
means Indebtedness outstanding as of the 2013 Restatement Effective Date under the 2017 9.5% Notes and the 2020 9.25% Senior Notes.

 

“Existing Non-Guaranteed Indebtedness”
means Indebtedness outstanding as of the 2013 Restatement Effective Date under the Borrower’s 2015 8.5% Convertible Notes,
the Borrower’s 7.7% Notes due 2027 and the Borrower’s 6.875% Notes due 2028.

 

“Existing Second Priority Debt”
means Indebtedness outstanding as of the 2013 Restatement Effective Date under the 2017 7.5% Notes, the Borrower’s 10.25%
Notes due 2019 and the Second Priority Tranche 1 Term Loans.

 

“Factoring Assets” means
any accounts receivable owed to the Borrower or any Subsidiary (whether now existing or arising or acquired in the future) arising
in the ordinary course of business from the sale of goods or services, all collateral securing such accounts receivable, all contracts
and contract rights and all guarantees or other obligations in respect of such accounts receivable, all proceeds of such accounts
receivable and other assets (including contract rights) which are of the type customarily transferred in connection with the factoring
of accounts receivable and which are sold, transferred or otherwise conveyed by the Borrower or a Subsidiary pursuant to a Factoring
Transaction permitted by this Agreement.

 

“Factoring Notice” means
a written notice delivered by the Borrower to the Administrative Agent at least 30 days after the termination of any Securitization
program indicating that the Borrower or its Subsidiaries intend to engage in a Factoring Transaction.

 

“Factoring Transaction”
means any transaction or series of transactions entered into by the Borrower and any Subsidiaries pursuant to which the Borrower
or such Subsidiaries sells, conveys or otherwise transfers (or purports to sell, convey or otherwise transfer) Factoring Assets
of the Borrower or such Subsidiaries to a non-related third party factor on market terms as determined in good faith by the senior
management of the Borrower; provided that (i) no portion of any Indebtedness deemed to exist as a result of such Factoring
Transaction (x) is incurred or Guaranteed by the Borrower or any other Subsidiary (in each case, other than as permitted pursuant
to Section 6.01(a)(xvi)), (y) is recourse to the Borrower or any other Subsidiary (in each case, other than as permitted pursuant
to Section 6.01(a)(xvi)) and (z) is secured (contingently or otherwise) by any Lien on assets of the Borrower or any other
Subsidiary (other than by the Factoring Assets to be sold, conveyed or transferred to the third party factor), (ii) such Factoring
Transaction is consummated pursuant to customary contracts, arrangements or agreements entered into with respect to the sale, purchase
and servicing of Factoring Assets on market terms for similar factoring, and (iii) in connection with such Factoring Transaction,
the third party factor enters into an intercreditor arrangement reasonably acceptable to, and approved in writing by, the Collateral
Agent.

 

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“FATCA” means Sections
1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable
and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any
agreements entered into pursuant to Section 1471(b) of the Code.

 

“Federal Funds Effective Rate”
means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding
Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business
Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions
received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 

“Financial Covenant Effectiveness
Period” means each period on or after the 2015 Restatement Effective Date commencing on and including any date (a) on
which Revolver Availability is less than (i) in the case of dates prior to the 8.00% Secured Note Repayment Date, $175,000,000
and (ii) in the case of dates on and after the 8.00% Secured Note Repayment Date, $200,000,000, or (b) which is the third consecutive
Business Day on which Revolver Availability is less than (i) in the case of dates prior to the 8.00% Secured Note Repayment Date,
$225,000,000 and (ii) in the case of dates on or after the 8.00% Secured Note Repayment Date, $250,000,000, and, in each case,
ending on and excluding the first day thereafter, if any, which is the 30th consecutive calendar day on which Revolver Availability
is equal to or greater than (i) in the case of dates prior to the 8.00% Secured Note Repayment Date, $225,000,000, and (ii) in
the case of dates on or after the 8.00% Secured Note Repayment Date, $250,000,000.

 

“Financial Officer” means
the chief financial officer, principal accounting officer, treasurer, vice president of financial accounting or controller of the
Borrower.

 

“Foreign Lender” means
(a) if the Borrower is a U.S. Person, any Lender, with respect to such Borrower, that is not a U.S. Person, and (b) if the Borrower
is not a U.S. Person, any Lender, with respect to such Borrower, that is resident or organized under the laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States of America,
each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

 

“Fronting Exposure” means,
at any time there is a Defaulting Lender, (a) with respect to any Issuing Bank, such Defaulting Lender’s LC Exposure with
respect to Letters of Credit issued by such Issuing Bank other than LC Exposure as to which such Defaulting Lender’s participation
obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof and (b) with respect
to any Swingline Lender, such Defaulting Lender’s Applicable Percentage of outstanding Swingline Loans made by such Swingline
Lender other than Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other
Lenders.

 

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“Fundamental Change” means
a “Fundamental Change” as defined in the 2015 8.5% Convertible Note Indenture as in effect on the 2015 Restatement
Effective Date.

 

“GAAP” means generally
accepted accounting principles in the United States of America.

 

“Government Lockbox Account”
shall have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Government Lockbox Account Agreement”
shall have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Government Lockbox Account Bank”
shall have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Governmental Authority”
means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national
body exercising such powers or functions, such as the European Union or the European Central Bank).

 

“Grantor” shall have the
meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Guarantee” of or by any
Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having
the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to
advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities
or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to
maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter
of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee shall
not include endorsements for collection or deposit in the ordinary course of business.

 

“Hazardous Materials” means
(a) petroleum products and byproducts, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, radon gas,
chlorofluorocarbons and all other ozone-depleting substances, or (b) any chemical, material, substance, waste, pollutant or
contaminant that is prohibited, limited or regulated by or pursuant to any Environmental Law.

 

    	31

    	 

    

  

“Hedging Agreement” means
any rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction
(including any option with respect to any of the foregoing transactions) or any combination of the foregoing transactions.

 

“HIPAA” has the meaning
assigned to such term in Section 3.07.

 

“Incremental Commitment”
has the meaning assigned to such term in Section 2.21.

 

“Incremental Facility”
has the meaning assigned to such term in Section 2.21.

 

“Incremental Facility Amendment”
has the meaning assigned to such term in Section 2.21.

 

“Incremental Senior Debt Refinancing
Facility” has the meaning assigned to such term in Section 2.21.

 

“Indebtedness” of any Person
means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances
of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person,
(d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts
payable incurred in the ordinary course of business), (e) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness
of others, (g) all Capital Lease Obligations of such Person, (h) all obligations, contingent or otherwise, of such Person
as an account party in respect of letters of credit and letters of guaranty, (i) all obligations, contingent or otherwise,
of such Person in respect of bankers’ acceptances and (j) all Disqualified Preferred Stock valued, as of the date of determination,
at the greater of (i) the maximum aggregate amount that would be payable upon maturity, or upon the mandatory redemption, repayment
or repurchase thereof and (ii) the maximum liquidation preference of such Disqualified Preferred Stock. The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner)
to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

 

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“Indemnified Taxes” means
(a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the
Borrower under any Senior Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indentures” mean, collectively,
the Effective Date Indentures and the Restatement Date Indenture.

 

“Integration Expenses”
means, for any period, the amount of expenses that (a) are directly attributable to the integration of any acquisition by the Borrower
or any consolidated Subsidiary consummated during such period and (b) will not recur once the integration of such acquisition is
complete.

 

“Intercompany Inventory Purchase
Agreement” means the Intercompany Inventory Purchase Agreement dated as of June 12, 2000 (as amended), among the Borrower,
Rite Aid Hdqtrs. Corp., the Distribution Subsidiaries named therein and the Operating Subsidiaries named therein.

 

“Interest Election Request”
means a request by the Borrower to convert or continue a Revolving Borrowing or a Term Borrowing in accordance with Section 2.07.

 

“Interest Payment Date”
means (a) with respect to any ABR Loan (other than a Swingline Loan), the last day of each March, June, September and December,
(b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is
a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior
to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest
Period, and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid.

 

“Interest Period” means,
with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending (x) on the numerically
corresponding day in the calendar month that is one, two, three or six and, if agreed to by all Lenders in the applicable
Class, 12 months thereafter, (y) in the case of Revolving Loans, seven days thereafter or (z) in the case of Revolving
Loans, six weeks thereafter if, at the time of the relevant Borrowing, all Lenders participating therein agree to make an interest
period of such duration available, in each case as the Borrower may elect; provided that (i) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day (unless,
in the case of Interest Periods of one, two, three or six months, such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day), (ii) any Interest Period of one,
two, three or six months that commences on the last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month
of such Interest Period and (iii) there shall be no more than two Revolving Loans with a seven day Interest Period at any time
outstanding. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

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“Interpolated Rate” means,
at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate)
determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal
to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period for which
the LIBO Screen Rate is available that is shorter than the Impacted Interest Period; and (b) the LIBO Screen Rate for the shortest
period for which that Screen Rate is available that exceeds the Impacted Interest Period, in each case, at such time.

 

“Inventory” has the meaning
assigned to such term in the Intercompany Inventory Purchase Agreement.

 

“Investment” by any Person
in any other Person means (i) any direct or indirect loan, advance or other extension of credit or capital contribution to or for
the account of such other Person (by means of any transfer of cash or other property to any Person or any payment for property
or services for the account or use of any Person, or otherwise), (ii) any direct or indirect purchase or other acquisition of any
Equity Interests, bond, note, debenture or other debt or equity security or evidence of Indebtedness, or any other ownership interest
(including, any option, warrant or any other right to acquire any of the foregoing), issued by such other Person, whether or not
such acquisition is from such or any other Person, (iii) any direct or indirect payment by such Person on a Guarantee of any obligation
of or for the account of such other Person or any direct or indirect issuance by such Person of such a Guarantee (provided,
however, that for purposes of Section 6.04, payments under Guarantees not exceeding the amount of the Investment attributable
to the issuance of such Guarantee will not be deemed to result in an increase in the amount of such Investment) or (iv) any other
investment of cash or other property by such Person in or for the account of such other Person. Any repurchase by the Borrower
of its own Equity Interests or Indebtedness shall not constitute an Investment for purposes of this Agreement. The amount of any
Investment shall be the original principal or capital amount thereof less all returns of principal or equity thereon (and without
adjustment by reason of the financial condition of such other Person) and shall, if made by the transfer or exchange of property
other than cash, be deemed to have been made in an original principal or capital amount equal to the fair market value of such
property at the time of such transfer or exchange.

 

“Issuing Bank Agreement”
has the meaning assigned to such term in Section 2.05(i).

 

“Issuing Banks” means Citibank,
N.A., Bank of America, N.A., General Electric Capital Corporation, Wells Fargo Bank, N.A. and any other Lender designated as an
Issuing Bank in accordance with the provisions of Section 2.05(k), in each case in its capacity as an issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section 2.05(i). An Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing
Banks” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

 

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“Joint Venture” means,
with respect to any Person, at any date, any other Person in whom such Person directly or indirectly holds an Investment consisting
of an Equity Interest, and whose financial results would not be consolidated under GAAP with the financial results of such Person
on the consolidated financial statements of such Person, if such statements were prepared in accordance with GAAP as of such date.

 

“Latest Maturity Date”
means, at any date of determination, the latest of (a) the Revolving Maturity Date and (b) the latest maturity date of any
Term Loan or Other Revolving Loan, in each case as extended in accordance with this Agreement from time to time.

 

“LC Commitment” means,
with respect to each Issuing Bank, the commitment of such Issuing Bank to issue Letters of Credit pursuant to Section 2.05,
subject to the limitation set forth in Section 2.05(a) that the aggregate amount of Letters of Credit issued by any Issuing Bank
shall not exceed $125,000,000 at any time outstanding.

 

“LC Disbursement” means
a payment made by an Issuing Bank pursuant to a Letter of Credit.

 

“LC Exposure” means, at
any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate
amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure
of any Revolving Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

 

“Lenders” means the Persons
that were lenders hereunder on the 2015 Restatement Effective Date (after giving effect to the Transactions on such date) and any
other Person that shall have become a party hereto pursuant to an Assignment and Acceptance, an Incremental Facility Amendment
or a Refinancing Amendment, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance.
Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.

 

“Letter of Credit” means
any letter of credit issued pursuant to this Agreement.

 

“Leverage Ratio” means,
on any date, the ratio of (a) Total Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters
most recently completed on or prior to such date.

 

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“LIBO Rate” means, with
respect to any Eurodollar Borrowing for any Interest Period, the London interbank offered rate as administered by ICE Benchmark
Administration (or any other Person that takes over the administration of such rate) for U.S. Dollars for a period equal in length
to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event
such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate,
or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative
Agent in its reasonable discretion; in each case the “LIBO Screen Rate”) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period; provided that if the LIBO Screen Rate shall be
less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided further that if
the Screen Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”)
then the LIBO Rate shall be the Interpolated Rate; provided further that if any Interpolated Rate shall be less than
zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Lien” means, with respect
to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on
or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, Capital Lease or title retention
agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset
and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

 

“LIFO Adjustments” means,
for any period, the net adjustment to costs of goods sold for such period required by the Borrower’s LIFO inventory method,
determined in accordance with GAAP.

 

“Loan Modification Agreement”
shall mean a Loan Modification Agreement in form and substance reasonably satisfactory to the Administrative Agent and the Borrower,
among the Borrower, the other Loan Parties, as applicable, and one or more Accepting Lenders.

 

“Loan Modification Offer”
shall have the meaning assigned to such term in Section 9.19(a).

 

“Loan Parties” means the
Borrower and the Subsidiary Loan Parties.

 

“Loans” means the loans
made by the Lenders to the Borrower pursuant to this Agreement (including, unless the context otherwise requires, Other Revolving
Loans and Term Loans).

 

“Lockbox Account” shall
have the meaning assigned to such term in the Senior Subsidiary Security Agreement.

 

“Long-Term Indebtedness”
means any Indebtedness that, in accordance with GAAP, constitutes (or, when incurred, constituted) a long-term liability.

 

“Margin Stock” means “margin
stock”, as such term is defined in Regulation U of the Board.

 

    	36

    	 

    

 

“Material Adverse Effect”
means a material adverse effect on (a) the business, assets, operations, properties, condition (financial or otherwise), or
prospects of the Borrower and the Subsidiaries, taken as a whole, (b) the ability of any Loan Party to perform any of its
material obligations under any Senior Loan Document to which it is a party or (c) the legality, validity or enforceability
of the Senior Loan Documents (including, without limitation, the validity, enforceability or priority of security interests granted
thereunder) or the rights of or benefits or remedies available to the Lenders under any Senior Loan Document.

 

“Material Indebtedness”
means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Hedging Agreements, of
any one or more of the Borrower and the Subsidiaries in an aggregate principal amount exceeding $50,000,000. For purposes of this
definition, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of any Hedging Agreement
at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary
would be required to pay if such Hedging Agreement were terminated at such time.

 

“Maximum Rate” has the
meaning assigned to such term in Section 9.13.

 

“Moody’s” means Moody’s
Investors Service, Inc., or any successor to its business of rating debt securities.

 

“Multiemployer Plan” means
a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Net Cash Proceeds” means:

 

(a)          with
respect to any Asset Sale, an amount equal to the cash proceeds received by the Borrower or any of the Subsidiaries from or in
respect of such Asset Sale (including, when received, any cash proceeds received in respect of any noncash proceeds of any Asset
Sale), less the sum of

 

(i)          reasonable
costs and expenses paid or incurred in connection with such transaction, including, without limitation, any underwriting brokerage
or other customary selling commissions and reasonable legal, advisory and other fees and expenses (including title and recording
expenses, associated therewith), payments of unassumed liabilities relating to the assets sold and any severance and termination
costs;

 

(ii)          the
amount of any Indebtedness (or Attributable Debt), together with premium or penalty, if any, and accrued interest thereon (or comparable
obligations in respect of Attributable Debt) secured by a Lien on (or if Attributable Debt, the lease of) any asset disposed of
in such Asset Sale and discharged from the proceeds thereof, but only to the extent such Lien has priority over the Senior Lien
and the Second Priority Lien;

 

(iii)          any
taxes actually paid or to be payable by such Person (as estimated by a senior financial or accounting officer of the Borrower,
giving effect to the overall tax position of the Borrower) in respect of such Asset Sale; and

 

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(iv)          the
portion of such cash proceeds which the Borrower determines in good faith and reasonably should be reserved for post-closing adjustments,
including, without limitation, indemnification payments and purchase price adjustments, provided, that on the date that all such
post-closing adjustments have been determined, the amount (if any) by which the reserved amount in respect of such Asset Sale exceeds
the actual post-closing adjustments payable by the Borrower or any of the Subsidiary Loan Parties shall constitute Net Cash Proceeds
on such date;

 

(b)          with
respect to the proceeds received by the Borrower or a Subsidiary from or in respect of an issuance in the public or private capital
markets of long-term debt securities, of equity securities or of equity-linked (e.g., trust preferred) securities, an amount
equal to the cash proceeds received by the Borrower or any of the Subsidiaries from or in respect of such issuance, less any reasonable
transaction costs, including investment banking and underwriting fees, discounts and commissions and any other expenses (including
legal fees and expenses) reasonably incurred by such Person in respect of such issuance;

 

(c)          with
respect to any Securitization, an amount equal to the cash proceeds received by the Borrower or any of the Subsidiary from or in
respect of such Securitization, less any reasonable transaction costs, including investment banking and underwriting fees, discounts
and commissions and any other expenses (including legal fees and expenses) reasonably incurred by such Person in respect of such
Securitization; and

 

(d)          with
respect to a Casualty/Condemnation, the amount of Casualty/Condemnation Proceeds.

 

“Net Orderly Liquidation Rate”
means, with respect to any type of inventory, at any date of determination, the net orderly liquidation rate with respect to such
type of inventory, expressed as a percentage of carrying cost after giving effect to reserves, as determined by Hilco Appraisal
Services, LLC (or another appraisal firm chosen by the Borrowing Base Agent) in connection with the most recent appraisal of inventory
of the Borrower and the Subsidiaries.

  

“Net Proceeds” means, with
respect to any event (a) the cash proceeds received in respect of such event including (i) any cash received in respect
of any non-cash proceeds, but only as and when received, (ii) in the case of a casualty, insurance proceeds and (iii) in the
case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the sum of (i) all
reasonable fees and out-of-pocket expenses paid by the Borrower and the Subsidiaries to third parties (other than Affiliates) in
connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a
sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be
made by the Borrower and the Subsidiaries as a result of such event to repay Indebtedness (other than Loans and Permitted First
Priority Debt) secured by such asset and (iii) the amount of all taxes paid (or reasonably estimated to be payable) by the
Borrower and the Subsidiaries, and the amount of any reserves established by the Borrower and the Subsidiaries to fund contingent
liabilities reasonably estimated to be payable, in each case during the year that such event occurred or the next succeeding year
and that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer).

 

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“Non-ABL Priority Collateral”
means all of the following assets that constitute Collateral, whether now owned or hereafter acquired and wherever located: (a)
all Equipment, all real property and interests therein (including both fee and leasehold interests) and all Fixtures; (b) all Intellectual
Property; (c) all Equity Interests and other Investment Property (other than Investment Property constituting ABL Priority Collateral
under clause (d) or (g) of the definition of such term); (d) all Commercial Tort Claims; (e) all insurance policies relating to
Non-ABL Priority Collateral, but, for the avoidance of doubt, excluding business interruption insurance and credit insurance with
respect to any Accounts; (f) except to the extent constituting ABL Priority Collateral under clause (g) of the definition of such
term, all Documents, all General Intangibles, all Instruments and all Letter of Credit Rights; (g) all other Collateral not constituting
ABL Priority Collateral; (h) all collateral and guarantees given by any other Person with respect to any of the foregoing, and
all Supporting Obligations (including Letter-of-Credit Rights) with respect to any of the foregoing; (i) all books and Records
to the extent relating to any of the foregoing; and (j) all products and Proceeds of the foregoing. Notwithstanding the foregoing,
the term “Non-ABL Priority Collateral” shall not include any assets referred to in clauses (a) through (f) of the definition
of the term “ABL Priority Collateral”. Capitalized terms used in this definition but not defined herein have the meanings
assigned to them in the Senior Subsidiary Security Agreement or the New York UCC, as applicable.

 

“Non-Defaulting
Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.

 

“Obligors” means Rite Aid,
the Subsidiary Guarantors, the Subsidiary Loan Parties and any other Person who is liable for any of the Secured Obligations.

 

“Offer Period” has the
meaning assigned to such term in Section 2.21.

 

“Operating Subsidiary”
has the meaning assigned to such term in the Intercompany Inventory Purchase Agreement.

 

“Optional Debt Repurchase”
means any optional or voluntary repurchase, redemption, retirement or defeasance (for cash or in exchange for Indebtedness permitted
hereunder) by the Borrower or any Subsidiary of any Indebtedness of the Borrower.

 

    	39

    	 

    

 

“Original Agreement” means
this Agreement as amended and in effect immediately prior to the effectiveness of the 2015 Amendment and Restatement Agreement
on the 2015 Restatement Effective Date.

 

“Other Connection Taxes”
means, with respect to any Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account
of any obligation of the Borrower hereunder, Taxes imposed as a result of a present or former connection between such recipient
and the jurisdiction imposing such Tax (other than connections arising from such recipient having executed, delivered, become a
party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in
any other transaction pursuant to or enforced any Senior Loan Document, or sold or assigned an interest in any Loan or Senior Loan
Document).

 

“Other Inventory” means
all inventory other than Pharmaceutical Inventory.

 

“Other Inventory Advance Rate”
means the other inventory advance rate determined in accordance with Section 2.20.

 

“Other Revolving Availability Period”
means the period from and including the date of the effectiveness of the applicable Other Revolving Commitments to but excluding
the date of termination of the applicable Other Revolving Commitments, or as otherwise provided for in the applicable Refinancing
Amendment or Loan Modification Agreement.

 

“Other Revolving Commitments”
means one or more Classes of revolving credit commitments that result from (a) a modification of the Revolving Credit Commitments
pursuant to a Loan Modification Offer or (b) a Refinancing Amendment.

 

“Other Revolving Exposures”
means, at any time, the sum of (a) the outstanding principal amount of all Loans made pursuant to Other Revolving Commitments
of any Class at such time, plus (b) the aggregate undrawn outstanding amount of Letters of Credit issued pursuant to
Other Revolving Commitments of such Class at such time, plus (c) the aggregate amount of disbursements made pursuant
to Letters of Credit issued pursuant to Other Revolving Commitments of such Class that have not yet been reimbursed by or on behalf
of the Borrower at such time, in each case to the extent not included in the Revolving Exposures at such time.

 

“Other Revolving Loans”
means the Revolving Loans made pursuant to any Other Revolving Commitment.

 

“Other Taxes” means any
and all present or future recording, filing, stamp, court or documentary, excise, transfer, sales, property or similar Taxes, charges
or levies arising from any payment made under any Senior Loan Document or from the execution, delivery or enforcement of, or otherwise
with respect to, any Senior Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment
(other than an assignment made pursuant to Section 2.19).

 

    	40

    	 

    

 

“Parent Undertaking” means
an agreement by the Borrower to cause a Subsidiary other than a Securitization Vehicle to perform its obligations under the instruments
governing a Securitization which agreement (a) contains terms that are customarily included in securitizations of accounts receivable
involving comparable companies and (b) does not provide for any Guarantee of payment or other credit support in respect of Securitization
Assets or Third Party Interests.

 

“Participant” has the meaning
assigned to such term in Section 9.04(c)(i).

 

“Participant Register”
has the meaning assigned to such term in Section 9.04(c)(i).

 

“PBGC” means the Pension
Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

 

“Perfection Certificate”
means a certificate in the form of Schedule 8 to the Senior Subsidiary Security Agreement or any other form approved by the
Agents.

 

“Permitted Amendments”
shall have the meaning assigned to such term in Section 9.19(c).

 

“Permitted Disposition”
means any of the following, other than sales of Securitization Assets in a Securitization:

 

(a)          dispositions
of inventory at retail, cash, cash equivalents and other cash management investments and obsolete, unused, uneconomic or unnecessary
equipment or inventory, in each case in the ordinary course of business;

 

(b)          a
disposition to a Subsidiary Loan Party, provided that if the property subject to such disposition constitutes Collateral
immediately before giving effect to such disposition, such property continues to constitute Collateral subject to the Senior Lien
and the Second Priority Lien;

 

(c)          a
sale or discount, in each case without recourse and in the ordinary course of business, of overdue Accounts (as defined in the
Senior Credit Agreement) arising in the ordinary course of business, but only to the extent such Accounts are no longer Eligible
Accounts Receivable (as defined in the Senior Credit Agreement) and such sale or discount is in connection with the compromise
or collection thereof consistent with customary industry practice (and not as part of any bulk sale);

 

(d)          Basket
Asset Sales; and

 

(e)          sales
of Accounts Receivable (as defined in the Senior Subsidiary Security Agreement) relating to worker’s compensation claims
to collection agencies pursuant to the Borrower’s customary cash management procedures.

 

    	41

    	 

    

 

“Permitted Encumbrances”
means:

 

(a)          Liens
imposed by law for taxes that are not yet due or are being contested in compliance with Section 5.05;

 

(b)          carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in
the ordinary course of business and securing obligations that are not overdue by more than 60 days or are being contested in compliance
with Section 5.05;

 

(c)          pledges
and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and
other social security laws or regulations;

 

(d)          deposits
to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature, in each case in the ordinary course of business;

 

(e)          judgment
liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII;

 

(f)          easements,
zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of
business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere
with the ordinary conduct of business of the Borrower or any Subsidiary;

 

(g)          licenses,
sublicenses, leases or subleases granted in the ordinary course of business with respect to real property;

 

(h)          landlord
Liens arising by law securing obligations not overdue by more than 60 days or being contested in good faith; and

 

(i)          Liens
in favor of a credit card or debit card processor arising in the ordinary course of business under any processor agreement and
relating solely to the amounts paid or payable by, or customary deposits or reserves held by, such credit card or debit card processor;

 

provided that the term “Permitted Encumbrances”
shall not include any Lien securing Indebtedness.

 

    	42

    	 

    

“Permitted First Priority Debt”
means any Indebtedness incurred by the Borrower and Guaranteed by the Subsidiary Guarantors pursuant to the Senior Subsidiary Guarantee
Agreement and not Guaranteed by any other Subsidiary which is secured by the Senior Collateral pursuant to the Senior Collateral
Documents on a pari passu basis (but without regard to control of remedies) with the Senior Loan Obligations and is not
secured by any other assets of the Borrower or any Subsidiary; provided, however, that (a) such Indebtedness
is permitted to be incurred, secured and Guaranteed on such basis by each Senior Debt Document and each Second Priority Debt Document,
(b) such Indebtedness constitutes Refinancing Indebtedness in respect of Term Loans or other Loans, Revolving Commitments
or Other Revolving Commitments, Permitted First Priority Debt incurred pursuant to Section 6.01(a)(i) or any combination of
the foregoing, (c) such Indebtedness has a later maturity and a longer weighted average life than the Refinanced Debt (as
defined in “Refinancing Indebtedness”) in respect of which such Indebtedness is Refinancing Indebtedness, (d) such
Indebtedness bears an interest rate not in excess of the market interest rate with respect to such type of Indebtedness as of the
time of its issuance or incurrence, (e) at the option of the Borrower, such Indebtedness may contain market call and make-whole
provisions as of the time of its issuance or incurrence, (f) the senior management of the Borrower determines in good faith that
such Indebtedness contains covenants (including with respect to amortization and convertibility) and events of default on market
terms and (g) the Representative for the holders of such Indebtedness shall have become party to (i) the Collateral Trust
and Intercreditor Agreement pursuant to, and by satisfying the conditions set forth in, Section 8.12 thereof and (ii) the
Senior Lien Intercreditor Agreement pursuant to, and by satisfying the conditions set forth in, Section 5.02(c) thereof, provided
that, if such Indebtedness will be the initial Permitted First Priority Debt incurred by the Borrower, then the Borrower, the Subsidiary
Guarantors, the Senior Collateral Agent and the Representative for such Indebtedness shall have executed and delivered the Senior
Lien Intercreditor Agreement. Permitted First Priority Debt shall include any Registered Equivalent Notes and Guarantees thereof
by the Subsidiary Guarantors pursuant to the Senior Subsidiary Guarantee Agreement issued in exchange thereof.

 

“Permitted Investments”
means any investment by any Person in (a) direct obligations of the United States or any agency thereof, or obligations guaranteed
by the United States or any agency thereof, (b) commercial paper rated at least A-1 by S&P and P-1 by Moody’s, (c) time
deposits with, including certificates of deposit issued by, any office located in the United States of any bank or trust company
which is organized or licensed under the laws of the United States or any state thereof and has capital, surplus and undivided
profits aggregating at least $500,000,000, (d) repurchase agreements with respect to securities described in clause (a) above entered
into with an office of a bank or trust company meeting the criteria specified in clause (c) above, provided in each case that such
investment matures within one year from the date of acquisition thereof by such Person or (e) money market mutual funds at least
80% the assets of which are held in investments referred to in clauses (a) through (d) above (except that the maturities of certain
investments held by any such money market funds may exceed one year so long as the dollar-weighted average life of the investments
of such money market mutual fund is less than one year).

 

    	43

    	 

    

 

“Permitted Second Priority Debt”
means Second Priority Debt of the Borrower; provided that (a) the terms of any such Indebtedness, and of any agreement entered
into and of any instrument issued in connection therewith, are otherwise permitted by the Senior Loan Documents, (b) if such Indebtedness
is issued or incurred to Refinance existing Indebtedness, such Indebtedness has a later maturity and a longer weighted average
life than such existing Indebtedness, (c) such Indebtedness bears an interest rate not in excess of the market interest rate
with respect to such type of Indebtedness as of the time of its issuance or incurrence, (d) at the option of the Borrower,
such Indebtedness may contain market call and make-whole provisions as of the time of its issuance or incurrence, (e) the
senior management of the Borrower determines in good faith that such Indebtedness contains covenants (including with respect to
amortization and convertibility) and events of default on market terms and (f) notwithstanding clause (ii) of the definition of
the term “Second Priority Debt”, such Indebtedness may mature prior to the date that is 90 days after the Latest Maturity
Date in effect on the date of issuance of such Indebtedness to the extent such Second Priority Debt (i) constitutes Refinancing
Indebtedness in respect of (A) Indebtedness under this Agreement, (B) Permitted First Priority Debt incurred under Section 6.01(a)(i)
or (C) Permitted Second Priority Debt incurred under Section 6.01(a)(i) or (ii) is permitted by Section 6.01(a)(vii)
or Section 6.01(a)(xvi)(C).

 

“Permitted Split-Priority Intercreditor
Agreement” has the meaning assigned to such term in the definition of “Split-Priority Term Loan Debt” herein.

 

“Permitted Split-Priority Term Loan
Debt” means Split-Priority Term Loan Debt of the Borrower; provided that (a) if such Indebtedness is issued or
incurred to Refinance existing Indebtedness, such Indebtedness has a later maturity and a longer weighted average life than such
existing Indebtedness, (b) such Indebtedness bears an interest rate (including a cost of funds rate such as Adjusted LIBOR
plus margins) and includes amortization provisions not in excess of the market interest rates and amortization provisions with
respect to similar term loan Indebtedness as of the time of its issuance or incurrence, (c) at the option of the Borrower,
such Indebtedness may contain prepayment premium provisions as of the time of its issuance or incurrence, (d) the senior management
of the Borrower determines in good faith that such Indebtedness contains covenants and events of default on market terms and (e)
notwithstanding clause (ii) of the definition of the term “Split-Priority Term Loan Debt”, such Indebtedness may mature
prior to the date that is 90 days after the Latest Maturity Date in effect on the date of issuance of such Indebtedness to the
extent such Split-Priority Term Loan Debt (i) constitutes Refinancing Indebtedness in respect of (A) Indebtedness under
this Agreement, (B) Permitted First Priority Debt incurred under Section 6.01(a)(i) or (C) Permitted Second Priority
Debt incurred under Section 6.01(a)(i) or (ii) is permitted by Section 6.01(a)(vii) or Section 6.01(a)(xvi)(C).

 

“Permitted Unsecured Indebtedness”
means unsecured Indebtedness (including Indebtedness incurred under convertible debt instruments) of the Borrower; provided
that (a) the terms of any such Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith,
are otherwise permitted by the Senior Loan Documents, (b) if such Indebtedness is issued or incurred to refinance existing Indebtedness,
such Indebtedness has a later maturity and a longer weighted average life than such existing Indebtedness, (c) such Indebtedness
bears an interest rate not in excess of the market interest rate with respect to such type of Indebtedness as of the time of its
issuance or incurrence, (d) at the option of the Borrower, such Indebtedness may contain market call and make-whole provisions
as of the time of its issuance or incurrence and (e) the senior management of the Borrower determines in good faith that such Indebtedness
contains covenants (including with respect to amortization and convertibility) and events of default on market terms.

 

    	44

    	 

    

 

“Person” means any natural
person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority
or other entity.

 

“Pharmaceutical Inventory”
means all inventory consisting of products that can be dispensed only on order of a licensed professional.

 

“Pharmaceutical Inventory Advance
Rate” means the pharmaceutical inventory advance rate determined in accordance with Section 2.20.

 

“Plan” means any employee
pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412
of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate has any liability or is (or,
if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA.

 

“Platform” has the meaning
assigned to such term in Section 9.16(b).

 

“Preferred Stock” means,
with respect to any corporation, capital stock issued by such corporation that is entitled to a preference or priority, in respect
of dividends or distributions upon liquidation, over some other class of capital stock issued by such corporation.

 

“Prepayment Event” means:

 

(a)          any
sale, transfer or other disposition (including pursuant to a sale and leaseback transaction) of any property or asset of the Borrower
or any Subsidiary, other than (i) sales, transfers or other dispositions described in clauses (i), (iii), (iv), (vi) and (vii)
of Section 6.05, (ii) sales, transfers or other dispositions described in clause (v) of Section 6.05 to the extent the
resulting aggregate Net Proceeds from all such sales, transfers or other dispositions do not exceed $50,000,000 and (iii) other
sales, transfers or dispositions resulting in aggregate Net Proceeds not exceeding $10,000,000 during any fiscal year of the Borrower;
or

 

(b)          any
casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any
property or asset of the Borrower or any Subsidiary; or

 

(c)          the
incurrence by the Borrower or any Subsidiary of any Indebtedness, other than (i) Indebtedness described in clauses (i), (ii), (iii),
(iv), (v), (vi), (ix), (x), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xvii) and (xviii) of Section 6.01(a), (ii) extensions, renewals,
refinancings or replacements of Indebtedness described in clauses (vii) and (viii) of Section 6.01(a) and (iii) Indebtedness
described in clauses (vii) and (viii) of Section 6.01(a) to the extent the proceeds of such Indebtedness are used to fund a Business
Acquisition.

 

    	45

    	 

    

 

“Prime Rate” means the
rate of interest per annum publicly announced from time to time by Citibank as its prime rate in effect at its principal office
in New York City. The Prime Rate is not intended to be the lowest rate of interest charged by the Citibank in connection with extensions
of credit to debtors; and each change in the Prime Rate shall be effective on the date such change is publicly announced as being
effective.

 

“Qualified Preferred Stock”
means Preferred Stock of the Borrower that does not require any cash payment (including in respect of redemptions or repurchases),
other than in respect of cash dividends, before the date that is six months after the Latest Maturity Date.

 

“Reduction” means, when
applied to any Debt Facility, (a) the permanent repayment of outstanding loans (or obligations in respect of Attributable Debt)
under such Debt Facility, (b) the permanent reduction of outstanding lending commitments under such Debt Facility or (c) the permanent
cash collateralization of outstanding letters of credit under such facility (together with the termination of any lending commitments
utilized by such letters of credit).

 

“Refinance” means, with
respect to any issuance of Indebtedness, to replace, renew, extend, refinance, repay, refund, repurchase, redeem, defease or retire,
or to issue Indebtedness in exchange or as a replacement therefor, including any successive Refinancing. “Refinanced”
and “Refinancing” shall have correlative meanings.

 

“Refinanced Debt” has the
meaning set forth in the definition of the term “Refinancing Indebtedness”.

 

“Refinancing Amendment”
means an amendment to this Agreement in form and substance reasonably satisfactory to the Administrative Agent and the Borrower
executed by each of (a) the Borrower and each Subsidiary Loan Party, as applicable, (b) the Administrative Agent and (c) each Additional
Lender and Lender that agrees to provide any portion of the Refinancing Indebtedness being incurred pursuant thereto, in accordance
with Section 6.01(c).

 

    	46

    	 

    

 

“Refinancing Indebtedness”
means Indebtedness (which shall be deemed to include Attributable Debt, Revolving Commitments, any Other Revolving Commitments
and any other revolving commitments solely for the purposes of this definition), including any successive Refinancing Indebtedness,
(a) issued, incurred or otherwise obtained (including by means of the extension or renewal of existing Indebtedness) in exchange
for, or to extend, renew, replace or refinance, in whole or part, existing Indebtedness (provided that, if such existing
Indebtedness is revolving Indebtedness, there is a corresponding reduction in the applicable lending commitments), Third Party
Interests or Attributable Debt, the Revolving Commitments or other revolving commitments (including Additional Senior Debt or any
successive Refinancing Indebtedness) (“Refinanced Debt”) or (b) incurred pursuant to any Other Revolving
Commitments that constitute Refinancing Indebtedness pursuant to clause (a) above; provided that (i) the terms of any
such Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are otherwise permitted
by the Senior Loan Documents, (ii) such extending, renewing or refinancing Indebtedness (including, if such Indebtedness includes
any Other Revolving Commitments, the unused portion of such Other Revolving Commitments) is in an original aggregate principal
amount not greater than the aggregate principal amount of, and unpaid interest on, the Refinanced Debt (and, in the case of Refinanced
Debt consisting, in whole or in part, of unused Revolving Commitments or Other Revolving Commitments, the amount thereof) plus
the amount of any premiums paid thereon, fees and expenses associated therewith and original issue discount related to such extending,
renewing or refinancing Indebtedness, (iii) such Indebtedness has a later maturity and a longer weighted average life than the
Refinanced Debt, (iv) such Indebtedness bears an interest rate not in excess of the market interest rate with respect to such
type of Indebtedness as of the time of its issuance or incurrence, (v) at the option of the Borrower, such Indebtedness may
contain market call and make-whole provisions as of the time of its issuance or incurrence, (vi) if the Refinanced Debt or
any Guarantees thereof are subordinated in right of payment to the Senior Loan Obligations, such Indebtedness shall be subordinated
in right of payment to the Senior Loan Obligations, on terms no less favorable, taken as a whole, to the holders of the Senior
Loan Obligations than the subordination terms of such Refinanced Debt or Guarantees thereof (and no Loan Party nor any of its subsidiaries
that has not guaranteed such Refinanced Debt guarantees such Indebtedness), (vii) unless such Indebtedness is incurred pursuant
to this Agreement (including any Refinancing Amendment executed in accordance with Section 6.01(c) or Loan Modification Agreement
executed in accordance with Section 9.19), the senior management of the Borrower determines in good faith that such Indebtedness
contains covenants (including with respect to amortization and convertibility) and events of default on market terms, (viii) such
Indebtedness is benefited by Guarantees (if any) which, taken as a whole, are not materially less favorable to the Lenders than
the Guarantees (if any) in respect of such Refinanced Debt, (ix) if such Refinanced Debt or any Guarantees thereof are secured,
(1) such Indebtedness and any Guarantees thereof are either unsecured or secured only by such property or assets as secured
the Refinanced Debt and Guarantees thereof and not any additional property or assets of the Borrower or any Subsidiary (other than
(A) property or assets acquired after the issuance or incurrence of such Refinancing Indebtedness that would have been subject
to the Lien securing refinanced Indebtedness if such Indebtedness had not been refinanced, (B) additions to the property or
assets subject to the Lien, (C) the proceeds of the property or assets subject to the Lien and (D) if such Refinancing
Indebtedness consists in whole or in part of Revolving Commitments or Other Revolving Commitments, cash or cash equivalents to
secure obligations in respect of letters of credit issued thereunder) and (2) if such Refinanced Debt is Second Priority Debt
and such Indebtedness is secured, such Indebtedness must be Permitted Second Priority Debt, (x) if such Refinanced Debt and
any Guarantees thereof are unsecured, such Indebtedness and Guarantees thereof are also unsecured, (xi) any Net Cash Proceeds
of such Indebtedness (other than any such Indebtedness that consists of unused Revolving Commitments or Other Revolving Commitments)
are used no later than 45 days following receipt thereof to repay the Refinanced Debt and pay any accrued interest, fees, premiums
(if any) and expenses in connection therewith, provided that, if such Refinanced Debt (other than unused Revolving Commitments
or unused Other Revolving Commitments) comprises Indebtedness under this Agreement or Additional Senior Debt, then such Refinanced
Debt shall be repaid, defeased or satisfied and discharged, and all accrued interest, fees and premiums (if any) in connection
therewith shall be paid, on the date such Indebtedness is issued, incurred or obtained; and provided, further, that
to the extent that such Refinanced Debt consists, in whole or in part, of Revolving Commitments, Other Revolving Commitments or
other revolving commitments (or Revolving Loans, Other Revolving Loans, Swingline Loans or other revolving loans incurred pursuant
to any Revolving Commitments, Other Revolving Commitments or other revolving commitments, as applicable), such Revolving Commitments,
Other Revolving Commitments or other revolving commitments, as applicable, shall be terminated, and all accrued fees in connection
therewith shall be paid, on the date such Indebtedness is issued, incurred or obtained, and (xii) if such Refinanced Debt
is Indebtedness incurred under this Agreement or Additional Senior Debt and the Refinancing Indebtedness in respect thereof will
be secured, then such Refinancing Indebtedness must be (A) Permitted First Priority Debt, (B) incurred pursuant to this
Agreement (including pursuant to a Refinancing Amendment) or (C) Permitted Second Priority Debt.

 

    	47

    	 

    

 

“Register” has the meaning
set forth in Section 9.04.

 

“Registered Equivalent Notes”
means, with respect to any notes originally issued in a Rule 144A or other private placement transaction under the Securities
Act of 1933, substantially identical notes (having the same Guarantees) issued in a dollar for dollar exchange therefor pursuant
to an exchange offer registered with the SEC.

 

“Related Parties” means,
with respect to any specified Person, such Person’s Affiliates and the directors, officers, employees, agents, trustees and
advisors of such Person and such Person’s Affiliates.

 

“Representatives” means
the Senior Representatives, the Second Priority Representatives and the Split-Priority Representatives.

 

“Required Lenders” means,
at any time, Lenders having Revolving Exposures, Other Revolving Exposures, outstanding Term Loans and unused Commitments representing
more than 50% of the sum of the total Revolving Exposures, Other Revolving Exposures, outstanding Term Loans and unused Commitments
at such time.

 

“Restatement Date Indenture”
means the 2017 7.5% Note Indenture.

 

“Restricted Payment” means
any dividend or other distribution (whether in cash, securities or other property, except dividends payable solely in shares of
the Borrower’s common stock or Qualified Preferred Stock) with respect to any Equity Interests in the Borrower or any Subsidiary,
or any payment (whether in cash, securities or other property, except payments made solely with common equity), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Equity
Interests in the Borrower or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Borrower
or any Subsidiary; provided that in no event shall (a) any exchange of Qualified Preferred Stock with other Qualified
Preferred Stock or (b) any payment or other distribution in respect of any Indebtedness pursuant to any of clauses (i) through
(xi) of Section 6.08(b) deemed a Restricted Payment.

 

    	48

    	 

    

 

“Revolver Availability”
means, on any date of determination, the maximum amount of Revolving Loans or Other Revolving Loans that could be made to the Borrower
on such date pursuant to Section 2.01(a) or pursuant to any Refinancing Amendment or Loan Modification Agreement pursuant to the
use of unused Commitments on such date; provided, however, that until, and for all periods prior to, the 8.00% Secured
Note Repayment Date, Revolver Availability will (including for purposes of determining Average Revolver Availability) exclude and
be calculated without regard to any Revolving Commitments the utilization of which is conditioned on the 8.00% Secured Note Repayment.

 

“Revolving Availability Period”
means the period from and including the 2015 Restatement Effective Date to but excluding the earlier of the Revolving Maturity
Date and the date of termination of the Revolving Commitments.

 

“Revolving Commitment”
means, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Loans and to acquire participations
in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s
Revolving Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced
or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The aggregate amount
of the Lenders’ Revolving Commitments on the 2015 Restatement Effective Date is $3,700,000,000.

 

“Revolving Exposure” means,
with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans and
its LC Exposure and Swingline Exposure at such time.

 

“Revolving Lender” means
a Lender with a Revolving Commitment or, if the Revolving Commitments have terminated or expired, a Lender with a Revolving Exposure.

 

“Revolving Loan” means
a Loan made pursuant to clause (b) of Section 2.01.

 

“Revolving Maturity Date”
means the date that is the fifth anniversary of the 2015 Restatement Effective Date.

 

“Rite Aid” means Rite Aid
Corporation, a Delaware corporation, and its successors.

 

“S&P” means Standard
& Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor to its business of rating
debt securities.

 

    	49

    	 

    

 

“Sale and Leaseback Transaction”
means any arrangement whereby the Borrower or a Subsidiary shall sell or transfer any office building (including its headquarters),
distribution center, manufacturing plant, warehouse, Store, equipment or other property, real or personal, now or hereafter owned
by the Borrower or a Subsidiary with the intention that the Borrower or any Subsidiary rent or lease the property sold or transferred
(or other property of the buyer or transferee substantially similar thereto).

 

“Sanctioned
Country” means, at any time, a country or territory which is itself the subject or target of any Sanctions (including,
without limitation, at the time of this Agreement, Iran, North Korea, Sudan and Syria).

 

“Sanctioned
Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated or blocked Persons maintained
by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or by the United
Nations Security Council, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled
by, or acting on behalf of, any such Person or Persons described in the foregoing clauses (a) or (b).

 

“Sanctions”
means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government,
including the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State or (b) the
United Nations Security Council.

 

“Script Lists Advance Rate”
means the Script Lists advance rate determined in accordance with Section 2.20.

 

“SEC” means the United
States Securities and Exchange Commission and any successor agency thereto.

 

“Second Priority Collateral”
means all the “Second Priority Collateral” as defined in any Second Priority Collateral Document.

 

“Second Priority Collateral Documents”
means the Second Priority Subsidiary Security Agreement, the Second Priority Subsidiary Guarantee Agreement, the Second Priority
Indemnity, Subrogation and Contribution Agreement, the Collateral Trust and Intercreditor Agreement and each of the security agreements
and other instruments and documents executed and delivered by any Subsidiary Guarantor pursuant to any of the foregoing for purposes
of providing collateral security or credit support for any Second Priority Debt Obligation or obligation under the Second Priority
Subsidiary Guarantee Agreement.

 

“Second Priority Collateral Trustee”
means Wilmington Trust Company, in its capacity as collateral trustee under the Collateral Trust and Intercreditor Agreement and
the Second Priority Collateral Documents, and its successors.

 

“Second Priority Credit Agreements”
means the Second Priority Tranche 1 Credit Agreement and the Second Priority Tranche 2 Credit Agreement.

 

    	50

    	 

    

 

“Second Priority Tranche 1 Credit
Agreement” means the Credit Agreement dated as of February 21, 2013, among the Borrower, the lenders party thereto, and
CNAI as administrative agent and collateral agent.

 

“Second Priority Tranche 2 Credit
Agreement” means the Credit Agreement dated as of June 21, 2013, among the Borrower, the lenders party thereto, and CNAI
as administrative agent and collateral agent.

 

“Second Priority Debt”
means any Indebtedness (including the Second Priority Tranche 1 Term Loans and the Second Priority Tranche 2 Term Loans) incurred
by Rite Aid and Guaranteed by the Subsidiary Guarantors pursuant to the Second Priority Subsidiary Guarantee Agreement (i) which
is secured by the Second Priority Collateral on a pari passu basis (but without regard to control of remedies) (other
than as provided by the terms of the applicable Second Priority Debt Documents) with the other Second Priority Debt Obligations
and (ii) if issued on or after the 2009 Restatement Effective Date, matures after the date that is 90 days after the Latest
Maturity Date in effect on the date of issuance of such Indebtedness; provided, however, that (A) such Indebtedness
is permitted to be incurred, secured and Guaranteed on such basis by each Senior Debt Document and each Second Priority Debt Document
and (B) the Representative for the holders of such Second Priority Debt shall have become party to the Collateral Trust and
Intercreditor Agreement pursuant to, and by satisfying the conditions set forth in, Section 8.12 thereof. Second Priority
Debt shall include any Registered Equivalent Notes issued in exchange thereof.

 

“Second Priority Debt Documents”
means, with respect to any series, issue or class of Second Priority Debt, the promissory notes, indentures, credit agreements
and other operative agreements or instruments evidencing or governing such Indebtedness, including the Second Priority Collateral
Documents.

 

“Second Priority Debt Facility”
means the indenture, credit agreement or other governing agreement or instrument with respect to any class or series of Second
Priority Debt.

 

“Second Priority Debt Obligations”
means, with respect to any series, issue or class of Second Priority Debt, (a) all principal of, and interest (including, without
limitation, any interest which accrues after the commencement of any Bankruptcy Proceeding, whether or not allowed or allowable
as a claim in any such proceeding) payable with respect to, such Second Priority Debt, (b) all other amounts payable to the related
Second Priority Debt Parties under the related Second Priority Debt Documents and (c) any renewals or extensions of the foregoing.

 

“Second Priority Debt Parties”
means, with respect to any series, issue or class of Second Priority Debt, the holders of such Indebtedness, any trustee or agent
therefor under any related Second Priority Debt Documents and the beneficiaries of each indemnification obligation undertaken by
Rite Aid or any Obligor under any related Second Priority Debt Documents, but shall not include the Loan Parties or any Controlled
Affiliates thereof (unless such Loan Party or Controlled Affiliate is a holder of such Indebtedness, a trustee or agent therefor
or beneficiary of such an indemnification obligation named as such in a Second Priority Debt Document).

 

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“Second Priority Indemnity, Subrogation
and Contribution Agreement” means the Amended and Restated Second Priority Indemnity, Subrogation and Contribution Agreement,
dated as of June 27, 2001, as amended and restated as of May 28, 2003, among Rite Aid, the Subsidiary Guarantors and
the Second Priority Collateral Trustee.

 

“Second Priority Lien”
means the Liens on the Second Priority Collateral in favor of the Second Priority Debt Parties under the Second Priority Collateral
Documents.

 

“Second Priority Representative”
means, in respect of a Second Priority Debt Facility, the trustee, administrative agent, security agent or similar agent under
such Second Priority Debt Facility, as the case may be, and each of their successors in such capacities.

 

“Second Priority Subsidiary Guarantee
Agreement” means the Amended and Restated Second Priority Subsidiary Guarantee Agreement, dated as of June 27, 2001,
as amended and restated as of May 28, 2003, made by the Subsidiary Guarantors (including any additional Subsidiary Guarantor
becoming party thereto in accordance with the terms thereof) in favor of the Second Priority Collateral Trustee for the benefit
of the Second Priority Debt Parties.

 

“Second Priority Subsidiary Security
Agreement” means the Amended and Restated Second Priority Subsidiary Security Agreement, dated as of June 27, 2001, as
amended and restated as of May 28, 2003, made by the Subsidiary Guarantors (including any additional Subsidiary Guarantor
becoming party thereto in accordance with the terms thereof) in favor of the Second Priority Collateral Trustee for the benefit
of the Second Priority Debt Parties.

 

“Second Priority Tranche 1 Term Loans”
means the tranche 1 term loans made to the Borrower in the initial aggregate principal amount of $470,000,000 under the Second
Priority Tranche 1 Credit Agreement.

 

“Second Priority Tranche 2 Term Loans”
means the tranche 2 term loans made to the Borrower in the initial aggregate principal amount of $500,000,000 under the Second
Priority Tranche 2 Credit Agreement.

 

“Second Restatement Effective Date”
means June 4, 2007.

 

“Secured Obligations” means
the Senior Obligations and the Second Priority Debt Obligations.

 

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“Securitization” means
any transaction or series of transactions entered into by the Borrower and any Subsidiaries pursuant to which the Borrower or such
Subsidiaries sell, convey or otherwise transfer (or purport to sell, convey or otherwise transfer) Securitization Assets to a Securitization
Vehicle or another Subsidiary which sells, conveys or otherwise transfers (or purports to sell, convey or otherwise transfer) Securitization
Assets to a Securitization Vehicle, and such Securitization Vehicle finances the acquisition of such Securitization Assets (i) with
proceeds from the issuance of Third Party Interests, (ii) with Sellers’ Retained Interests, (iii) with proceeds
from the sale or collection of Securitization Assets previously purchased by such Securitization Vehicle or (iv) with proceeds
from the sale of Securitization Assets to another Securitization Vehicle. For purposes of this Agreement, the “amount”
or “principal amount” of any Securitization shall be deemed at any time to be (1) the aggregate principal or stated
amount of the Third Party Interests (which stated amount may be described as a “net investment”, “capital”,
“invested amount” or similar term reflecting the amount invested in any beneficial interest constituting a Third Party
Interest) incurred or issued pursuant to such Securitization, in each case outstanding at such time, or (2) in the case of
any Securitization in respect of which no such principal or stated amount is determinable, the cash purchase price paid by the
buyer in connection with its purchase of Third Party Interests less the amount of collections received in respect of such Third
Party Interests and paid to such buyer, excluding any amounts applied to purchase fees or discount or in the nature of interest.

 

“Securitization Assets”
means any accounts receivable owed to the Borrower or any Subsidiary (whether now existing or arising or acquired in the future)
arising in the ordinary course of business from the sale of goods or services, all collateral securing such accounts receivable,
all contracts and contract rights and all guarantees or other obligations in respect of such accounts receivable, all proceeds
of such accounts receivable and other assets (including contract rights) which are the type customarily transferred in connection
with securitizations of accounts receivable and which are sold, transferred or otherwise conveyed (or purported to be sold, transferred
or otherwise conveyed) by the Borrower or a Subsidiary to a Securitization Vehicle in connection with a Securitization permitted
by Sections 6.01 and 6.05.

 

“Securitization Refinancing Indebtedness”
means Indebtedness that constitutes Refinancing Indebtedness in respect of any Third Party Interests or Indebtedness incurred pursuant
to Section 6.01(a)(xvi)(A); provided, however, that (a) such Indebtedness shall not be required to comply with
clause (viii) or (ix) of the first proviso in the definition of the term “Refinancing Indebtedness”, (b) if such Indebtedness
or any Guarantees thereof are secured, then such Indebtedness must constitute Permitted Second Priority Debt or Permitted Split-Priority
Term Loan Debt, (c) such Indebtedness is not Guaranteed by any Subsidiary other than a Subsidiary Guarantor and (d) for purposes
of clause (iii) of the first proviso in the definition of the term “Refinancing Indebtedness”, the maturity date of
such Third Party Interests shall be deemed to be the “Commitment Termination Date” or the “Facility Termination
Date” (or similar scheduled or stated event, however designated) under the applicable Securitization.

 

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“Securitization Vehicle”
means a Person that is a direct or indirect wholly owned Subsidiary used solely for the purpose of effecting one or more Securitizations
to which the Borrower and/or Subsidiaries and/or another Securitization Vehicle transfer Securitization Assets and which, in connection
with such Securitization either issues Third Party Interests or transfers such Securitization Assets to another Securitization
Vehicle that issues Third Party Interests; provided, in each case, that (i) each such Person shall engage in no business
other than the purchase of Securitization Assets pursuant to Securitizations permitted by Sections 6.01 and 6.05, the issuance
of Third Party Interests and any activities reasonably related thereto, (ii) no portion of the Indebtedness or other obligations
(contingent or otherwise) of such Person (x) is Guaranteed by the Borrower or any other Subsidiary, other than any Guarantee
of obligations (other than of principal of, or interest on, Indebtedness) that may be deemed to exist solely by virtue of Standard
Securitization Undertakings, (y) is recourse to the Borrower or any other Subsidiary other than by virtue of Standard Securitization
Undertakings and (z) is secured (contingently or otherwise) by any Lien on assets of the Borrower or any other Subsidiary
other than by virtue of Standard Securitization Undertakings, (iii) such Person has no contract, agreement, arrangement or
understanding with the Borrower or any other Subsidiary other than (A) customary contracts, arrangements or agreements entered
into with respect to the sale, purchase and servicing of Securitization Assets on market terms for similar securitization transactions
and (B) Guarantees and pledges of security as required by the Senior Loan Documents and the Second Priority Debt Documents
and (iv) neither the Borrower nor any Subsidiary has any obligations to maintain or preserve such Person’s financial
condition or cause it to achieve certain levels of operating results other than pursuant to Standard Securitization Undertakings.

 

“Sellers’ Retained Interests”
means the debt or equity interests held by the Borrower or any Subsidiary in a Securitization Vehicle to which Securitization Assets
have been transferred (or purported to have been transferred) in a Securitization permitted by Sections 6.01 and 6.05, including
any such debt or equity received in consideration for the Securitization Assets transferred.

 

“Senior Collateral” means
all the “Senior Collateral” or “Collateral” as defined in any Senior Collateral Document.

 

“Senior Collateral Agent”
means CNAI, in its capacity as senior collateral agent for the Senior Secured Parties under the Senior Collateral Documents, and
any successor thereof or replacement senior collateral agent appointed in accordance with the terms of the Senior Subsidiary Security
Agreement, the Collateral Trust and Intercreditor Agreement and the Senior Lien Intercreditor Agreement.

 

“Senior Collateral Documents”
means the Senior Subsidiary Security Agreement, the Senior Subsidiary Guarantee Agreement, the Senior Indemnity, Subrogation and
Contribution Agreement, the Collateral Trust and Intercreditor Agreement, the Senior Lien Intercreditor Agreement (upon and after
the initial execution and delivery thereof by the initial parties thereto) and each of the security agreements and other instruments
and documents executed and delivered by any Subsidiary Guarantor pursuant to any of the foregoing or pursuant to the Senior Credit
Agreement or any Additional Senior Debt Facility for purposes of providing collateral security or credit support for any Senior
Obligation or obligation under the Senior Subsidiary Guarantee Agreement.

 

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“Senior Credit Agreement”
means the Amended and Restated Senior Credit Agreement, dated as of June 27, 2001, as amended or amended and restated and in effect
from time to time and at any time, including pursuant to future amendments, restatements or modifications hereof, among Rite Aid,
the Senior Lenders, and CNAI, as administrative agent and as Senior Collateral Agent.

 

“Senior Debt Documents”
means (a) the Senior Loan Documents and (b) any Additional Senior Debt Documents.

 

“Senior Hedging Agreement”
means any Hedging Agreement entered into with Rite Aid or any Subsidiary, if the applicable counterparty was a Senior Lender or
an Affiliate thereof (a) on the 2005 Restatement Effective Date, in the case of any Hedging Agreement entered into prior to the
2005 Restatement Effective Date or (b) at the time the Hedging Agreement was entered into, in the case of any Hedging Agreement
entered into on or after the 2005 Restatement Effective Date.

 

“Senior Indemnity, Subrogation and
Contribution Agreement” means the Amended and Restated Senior Indemnity, Subrogation and Contribution Agreement, dated
as of June 27, 2001, as amended and restated as of May 28, 2003, among Rite Aid, the Subsidiary Guarantors (including additional
Subsidiary Guarantors becoming party thereto in accordance with the terms thereof) and the Senior Collateral Agent.

 

“Senior Lender” means a
“Lender” as defined in the Senior Credit Agreement.

 

“Senior Lien” means the
Liens on the Senior Collateral in favor of the Senior Secured Parties under the Senior Collateral Documents.

 

“Senior Lien Intercreditor Agreement”
means the Intercreditor Agreement substantially in the form of Exhibit J among the Administrative Agent, the Collateral Agent,
Rite Aid, the Subsidiary Guarantors and the Senior Representatives for purposes thereof for any Additional Senior Debt Parties.

 

“Senior Loan Documents”
means the Senior Credit Agreement, any promissory notes issued to any Senior Lender pursuant to the Senior Credit Agreement, each
Senior Hedging Agreement, each Refinancing Amendment, each Loan Modification Agreement and the Senior Collateral Documents.

 

“Senior Loan Obligation Payment Date”
means the date on which (a) the Senior Loan Obligations have been paid in full, (b) all lending commitments under the
Senior Credit Agreement have been terminated and (c) there are no outstanding letters of credit issued under the Senior Credit
Agreement other than such as have been fully cash collateralized under documents and arrangements satisfactory to the issuer of
such letters of credit.

 

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“Senior Loan Obligations”
means (a) the principal of each loan made under the Senior Credit Agreement, (b) all reimbursement and cash collateralization obligations
in respect of letters of credit issued under the Senior Credit Agreement, (c) all monetary obligations of the Borrower or any Subsidiary
under each Senior Hedging Agreement entered into (i) prior to the 2005 Restatement Effective Date with any counterparty that was
a Senior Lender (or an Affiliate thereof) on the 2005 Restatement Effective Date or (ii) on or after the 2005 Restatement Effective
Date with any counterparty that was a Senior Lender (or an Affiliate thereof) at the time such Senior Hedging Agreement was entered
into, (d) all interest on the loans, letter of credit reimbursement, fees and other obligations under the Senior Credit Agreement
or such Senior Hedging Agreements (including, without limitation any interest which accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or reorganization of the Borrower, any Subsidiary Loan Party,
whether or not allowed or allowable as a claim in such proceeding), (e) all other amounts payable by the Borrower or any Subsidiary
under the Senior Loan Documents and (f) all increases, renewals, extensions and Refinancings of the foregoing.

 

“Senior Loan Secured Parties”
means each party to the Senior Credit Agreement other than any Loan Party, each counterparty to a Senior Hedging Agreement, the
beneficiaries of each indemnification obligation undertaken by Rite Aid or any other Loan Party under any Senior Loan Document,
and the successors and permitted assigns of each of the foregoing.

 

“Senior Obligation Payment Date”
means the date on which (a) the Senior Obligations have been paid in full in cash, (b) all lending commitments under the Senior
Debt Documents have been terminated and (c) there are no outstanding letters of credit issued under the Senior Debt Documents other
than such as have been fully cash collateralized under documents and arrangements satisfactory to the issuer of such letters of
credit.

 

“Senior Obligations” means
the Senior Loan Obligations and any Additional Senior Debt Obligations.

 

“Senior Representative”
means, in respect of a Senior Facility, the trustee, administrative agent, collateral agent, security agent or similar agent under
such Senior Facility, as the case may be, and each of their successors in such capacities.

 

“Senior Secured Parties”
means the Senior Loan Secured Parties and any Additional Senior Debt Parties.

 

“Senior Subsidiary Guarantee Agreement”
means the Senior Subsidiary Guarantee Agreement, amended and restated as of June 5, 2009, made by the Subsidiary Guarantors (including
additional Subsidiary Guarantors that become parties thereto in accordance with the terms thereof) in favor of the Senior Collateral
Agent for the benefit of the Senior Secured Parties, as such agreement may be amended, supplemented or otherwise modified from
time to time.

 

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“Senior Subsidiary Security Agreement”
means the Senior Subsidiary Security Agreement, amended and restated as of June 5, 2009, made by the Subsidiary Guarantors (including
additional Subsidiary Guarantors that become parties thereto in accordance with the terms thereof) in favor of the Senior Collateral
Agent for the benefit of the Senior Secured Parties, as such agreement may be amended, supplemented or otherwise modified from
time to time.

 

“Split- Priority Debt Facility”
means the credit agreement with respect to any class or series of Split- Priority Term Loan Debt.

 

“Split-Priority Implementing Agreements”
has the meaning assigned to such term in the definition of “Split-Priority Term Loan Debt” herein.

 

“Split-Priority Representative”
means, in respect of any Split-Priority Debt Facility , the administrative agent, collateral agent, security agent or similar agent
under such Split-Priority Debt Facility, as the case may be, and each of their successors in such capacities.

 

“Split-Priority Term Loan Debt”
means term loan Indebtedness of the Borrower incurred after the 2015 Restatement Effective Date under a bank credit facility (other
than this Agreement) that has terms customary for similarly structured “tranche B” term loans, which Indebtedness (i)
is Guaranteed by the Subsidiary Guarantors and not by any other Subsidiaries, (ii) does not mature earlier than the date that is
90 days after the Latest Maturity Date in effect on the date of incurrence of such Indebtedness, (iii) is secured (x) by the Non-ABL
Priority Collateral on a first-priority basis (with the Senior Obligations being secured by the Non-ABL Priority Collateral on
a second priority basis that is, however, senior, to any Liens or security interests securing Second Priority Debt) and (y) by
the ABL Priority Collateral on a second-priority basis to the Liens and security interests securing the Senior Obligations (but
on a basis senior to any Liens or security interests securing Second Priority Debt), and (iv) is not secured by Liens on any assets
of the Borrower or any Subsidiary other than the Collateral (or assets that, substantially concurrently with the incurrence of
such Indebtedness, become Collateral on which a Lien is granted to the Collateral Agent pursuant to the Senior Subsidiary Security
Agreement and/or other Senior Collateral Documents); provided, however, that (A) the incurrence and terms (including
with respect to collateral, security interests and the priority thereof ) of any such Indebtedness, including the terms of any
credit, security, intercreditor or similar agreement entered into and of any instrument issued in connection therewith, are otherwise
permitted by the Senior Loan Documents, the Second Priority Debt Documents (if any Second Priority Debt is outstanding) and each
other indenture or agreement evidencing or governing Material Indebtedness (after giving effect to any amendments or waivers under
any such agreements that are effective prior to or at the time such Split-Priority Term Loan Debt is incurred); (B) the Collateral
Trust and Intercreditor Agreement and the other Senior Collateral Documents, and, if any Second Priority Debt is outstanding, the
Second Priority Collateral Documents, shall have been amended to the extent required to permit and implement the priority of the
Liens securing such Split-Priority Term Loan Debt contemplated by clauses (iii)(x) and (iii)(y) above (or if there is no outstanding
Additional Senior Debt and no outstanding Second Priority Debt, such agreements relating to intercreditor arrangements with respect
to the Senior Collateral may, alternatively, be replaced by an intercreditor agreement between the Representatives for the Senior
Loan Secured Parties and the holders of such Split-Priority Term Loan Debt (a “Permitted Split-Priority Intercreditor
Agreement”) , in each case on terms and conditions reasonably acceptable to the Borrowing Base Agent and, insofar as
such amended agreements or replacement agreement deal with intercreditor issues relating to the relative rights of the Senior Secured
Parties and the holders of Split-Priority Term Loan Debt in the Senior Collateral, on terms and conditions both reasonably acceptable
to the Borrowing Base Agent and customary for similar intercreditor agreements relating to cross-collateralized asset-based credit
facilities and tranche B term loan facilities (the amendments to agreements and any Permitted Split-Priority Intercreditor Agreement
referred to in this clause (B) being referred to herein as the “Split-Priority Implementing Agreements”); (C)
the Representative for the holders of such Split-Priority Term Loan Debt shall have become party to the intercreditor agreements
referred to in clause (B) of this proviso, which shall be in full force and effect and (D) the Administrative Agent shall have
received a certificate, dated the date such Indebtedness is incurred and signed by a Financial Officer of the Borrower, confirming
compliance with the requirements set forth in clauses (A) , (B) and (C) of this proviso.

 

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“Standard Securitization Undertakings”
means representations, warranties, covenants and indemnities made by the Borrower or a Subsidiary in connection with Securitizations
permitted by Sections 6.01 and 6.05 which representations, warranties, covenants and indemnities are customarily included
in securitizations of accounts receivable involving comparable companies.

 

“Statutory Reserve Rate”
means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages expressed as a decimal (including any marginal, special, emergency
or supplemental reserves) established by the Board to which the Administrative Agent is subject with respect to Eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall
include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and
to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be
adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Store” means any retail
store (which may include any real property, fixtures, equipment, inventory and script files related thereto) operated, or to be
operated, by any Subsidiary Loan Party.

 

“subsidiary” means, with
respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association
or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation,
limited liability company, partnership, association or other entity of which securities or other ownership interests representing
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests
are, as of such date, owned, controlled or held by the parent or one or more subsidiaries of the parent or by the parent and one
or more subsidiaries of the parent.

 

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“Subsidiary” means any
subsidiary of the Borrower.

 

“Subsidiary Guarantor”
means each Subsidiary that is party to any Second Priority Collateral Document or Senior Collateral Document.

 

“Subsidiary Loan Party”
means each Subsidiary set forth on Schedule 1.01 hereto and any wholly-owned Domestic Subsidiary, including any Securitization
Vehicle that is a Domestic Subsidiary, that owns any assets consisting of inventory, accounts receivable, intellectual property,
or script lists, subject to the terms of Section 5.11; provided that no Subsidiary that engages solely in the Borrower’s
pharmacy benefits management business shall be deemed a Subsidiary Loan Party.

 

“Supermajority Lenders”
means, at any time, Lenders having Revolving Exposures, Other Revolving Exposures, outstanding Term Loans and unused Commitments
representing more than 66-2/3% of the aggregate Revolving Exposures, outstanding Term Loans and unused Commitments of all Lenders
at such time.

 

“Swingline Exposure” means,
at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any Lender
at any time shall be its Applicable Percentage of the total Swingline Exposure at such time.

 

“Swingline Lender” means
CNAI, in its capacity as the lender of Swingline Loans hereunder.

 

“Swingline Loan” means
a Loan made pursuant to Section 2.04.

 

“Taxes” means any and all
present or future taxes, levies, imposts, duties, deductions, charges, assessments, fees or withholdings imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Borrowing” means
a Borrowing comprised of Term Loans.

 

“Term Commitments” means
one or more Classes of term loan commitments that result from a Refinancing Amendment or an Incremental Facility Amendment.

 

“Term Lender” means a Lender
with an Term Commitment or an outstanding Term Loan.

 

“Term Loans” means one
or more Classes of term loans that result from a Refinancing Amendment, an Incremental Facility Amendment or a Permitted Amendment
effected pursuant to a Loan Modification Offer.

 

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“Third Party Interests”
means, with respect to any Securitization, notes, bonds or other debt instruments, beneficial interests in a trust, ownership interests
(including any fractional undivided interests) in a pool or pools of accounts receivable or other interests or securities issued
or sold for cash consideration by a Securitization Vehicle to banks, investors or other financing sources (other than the Borrower
or its Subsidiaries) the proceeds of which are used to finance, in whole or in part, the purchase by such Securitization Vehicle
of accounts receivables or other Securitization Assets in a Securitization.

 

“Total Indebtedness” means,
as of any date, the sum of the aggregate principal amount of Indebtedness of the Borrower and its Consolidated Subsidiaries outstanding
as of such date, in the amount that would be reflected on a balance sheet prepared as of such date on a consolidated basis in accordance
with GAAP plus, without duplication, the aggregate outstanding amount of Third Party Interests (which amount may be described
as a “net investment”, “capital”, “invested amount”, “principal amount” or similar
term reflecting the aggregate amount invested in beneficial interests constituting Third Party Interests).

 

“Transactions” means the
execution, delivery and performance by the Borrower and the Subsidiary Loan Parties, as applicable, of the 2015 Amendment and Restatement
Agreement and each other document contemplated thereby to be executed on the 2015 Restatement Effective Date to which it is a party
and the other transactions to be effected pursuant to the 2015 Amendment and Restatement Agreement on the 2015 Restatement Effective
Date.

 

“Type”, when used in reference
to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

 

“Undisclosed Administration”
means in relation to any Person, the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian
or other similar official by a supervisory authority or regulator under or based on the law in the country where such Person is
subject to home jurisdiction supervision if applicable law requires that such appointment is not to be publicly disclosed.

 

“Uniform Commercial Code”
or “UCC” means, unless otherwise specified, the Uniform Commercial Code as from time to time in effect in the
State of New York.

 

“USA Patriot Act” means
the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

 

“U.S. Person” means a “United
States person” within the meaning of Section 7701(a)(30) of the Code.

 

“Withdrawal Liability”
means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Title IV of ERISA.

 

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SECTION 1.02.          Classification
of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving
Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving
Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or
by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

 

SECTION 1.03.          Terms
Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”.
The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth herein); provided, however, that amendments
to the Indentures and the Second Priority Debt Documents after the Second Restatement Effective Date shall be effective for purposes
of references thereto in this Agreement and the other Senior Loan Documents only if such amendments are permitted hereunder and
under the Second Priority Debt Documents and the Additional Senior Debt Documents or are consented to in writing for such purpose
by the Required Lenders (or such other percentage of the Lenders as may be specified herein) and the applicable holders of Second
Priority Debt and Additional Senior Debt required by the terms of the Second Priority Debt Documents and the Additional Senior
Debt Documents, as applicable, (b) any reference herein to any Person shall be construed to include such Person’s successors
and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import,
shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein
to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules
to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights.

 

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SECTION 1.04.          Accounting
Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed
in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent
that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the Second
Restatement Effective Date in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent
notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether
any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted
on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall
have been withdrawn or such provision amended in accordance herewith; provided further that, all terms of an accounting
or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made
without giving effect to (i) any election under Accounting Standards Codification 825-10-25 (previously referred to as Statement
of Financial Accounting Standards 159) (or any other Accounting Standards Codification or Financial Accounting Standard having
a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any subsidiary at “fair value,”
as defined therein and (ii) any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards
Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or
effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all
times be valued at the full stated principal amount thereof.

 

SECTION 1.05.          Terms
Defined in Definitions Annex. Capitalized terms used in this Agreement that are not defined in Section 1.01 shall have the
meanings assigned to such terms in the Definitions Annex (but any definition of such a term in the Definitions Annex shall be disregarded
for purposes hereof if such term is also defined in Section 1.01).

 

SECTION 1.06.          Excluded
Swap Obligations. (a) Notwithstanding any provision of this Agreement or any other Senior Loan Document, no Guarantee (including,
for the avoidance of doubt, the guarantee obligations of each Subsidiary Guarantor under the Senior Loan Documents insofar as such
Subsidiary Guarantor is jointly liable for obligations of any other Subsidiary Guarantor) by any Subsidiary Guarantor under any
Senior Loan Document shall include a Guarantee of any Senior Obligation that, as to such Subsidiary Guarantor, is an Excluded Swap
Obligation, and no Collateral provided by any Subsidiary Guarantor shall secure any Senior Obligation that, as to such Subsidiary
Guarantor, is an Excluded Swap Obligation. In the event that any payment is made by, or any collection is realized from, any Subsidiary
Guarantor as to which any Senior Obligations are Excluded Swap Obligations, or from any Collateral provided by such Subsidiary
Guarantor, the proceeds thereof shall be applied to pay the Senior Obligations of such Subsidiary Guarantor as otherwise provided
herein without giving effect to such Excluded Swap Obligations and each reference in this Agreement or any other Loan Document
to the ratable application of such amounts as among the Senior Obligations or any specified portion of the Senior Obligations that
would otherwise include such Excluded Swap Obligations shall be deemed so to provide.

 

(b)          The
following terms shall for purposes of this Section 1.06 have the meanings set forth below:

 

“Commodity Exchange
Act” means the Commodity Exchange Act (7 U.S. C. § et seq.), as amended from time to time, and any successor statute.

 

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“Excluded Swap
Obligation” means, with respect to Subsidiary Guarantor, any Swap Obligation if, and to the extent that, the Guarantee
by such Subsidiary Guarantor of, or the grant by such Subsidiary Guarantor of a security interest to secure, such Swap Obligation
(or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity
Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Subsidiary Guarantor’s
failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act at
the time the Guarantee of such Subsidiary Guarantor r becomes effective with respect to such related Swap Obligation.

 

“Swap Obligation”
means, with respect to any Subsidiary Guarantor, any obligation to pay or perform under any agreement, contract or transaction
that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.

 

ARTICLE
II

 

The Credits

 

SECTION 2.01.          Commitments.
(a) Subject to the terms and conditions set forth herein, each Lender agrees to make Revolving Loans to the Borrower from time
to time during the Revolving Availability Period in an aggregate principal amount that will not result in such Lender’s Revolving
Exposure exceeding the lesser of (i) such Lender’s Revolving Commitment and (ii) such Lender’s Applicable
Percentage of an amount equal to (A) the Borrowing Base Amount in effect at such time minus (B) the sum of (1) the
outstanding Term Loans at such time, (2) the Other Revolving Exposures at such time and (3) the Additional Senior Debt
at such time. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay
and reborrow Revolving Loans.

 

(b)          Notwithstanding
anything herein to the contrary (including the provisions contained in Sections 6.01(c) and 9.19), if there is more than one Class
of Revolving Commitments and Other Revolving Commitments outstanding at any time, then (a) borrowings and prepayments (but not
repayments at maturity) of borrowings under all such Commitments shall be made pro rata among the Lenders holding such Commitments
(based on the respective amounts of the Revolving Commitments and Other Revolving Commitments held by such Lenders) and (b) each
Class of Revolving Commitments and Other Revolving Commitments (and the terms of the Revolving Loans and Other Revolving Loans
made pursuant to such Commitments) will be treated substantially the same as one another; provided, however, that (i) the commitment
fees, letter of credit fees and other similar fees payable in respect thereof and the interest rates payable in respect of the
Loans made pursuant thereto need not be the same, (ii) the maturity date and commitment periods in respect thereof need not be
the same, (iii) the Borrower may Refinance all or any portion of any Class of Revolving Commitments or Other Revolving Commitments
(and prepay or otherwise Refinance the Loans and other extensions of credit outstanding thereunder) pursuant to Section 6.01(a)(i)
without Refinancing any other Class of Revolving Commitments or Other Revolving Commitments (or the Loans and other extensions
of credit outstanding thereunder) and (iv) the Administrative Agent may, with the consent of the Borrowing Base Agent (which consent
shall not be unreasonably withheld), permit other differences in the terms thereof that would otherwise be permitted by Section
6.01(c) or 9.19 (as applicable), including to address the treatment of Letters of Credit and Swingline Loans to be made available
thereunder.

 

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SECTION 2.02.          Loans
and Borrowings. (a) Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of Loans of the
same Class and Type made by the Lenders ratably in accordance with the amounts of their Commitments of the applicable Class. The
failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder;
provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s
failure to make Loans as required.

 

(b)          Subject
to Section 2.14, each Revolving Borrowing and Term Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans
as the Borrower may request in accordance herewith. Each Swingline Loan shall be an ABR Loan. Each Lender at its option may make
any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that
any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of
this Agreement.

 

(c)          At
the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $5,000,000 (except in the case of any Term Borrowing or Other Revolving Borrowing,
to the extent provided in the applicable Refinancing Amendment or Loan Modification Agreement). At the time that each ABR Borrowing
is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000
(except in the case of any Term Borrowing or Other Revolving Borrowing, to the extent provided in the applicable Refinancing Amendment
or Loan Modification Agreement); provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the total Revolving Commitments or that is required to finance the reimbursement of an LC Disbursement
as contemplated by Section 2.05(e). Each Swingline Loan shall be in an amount that is an integral multiple of $1,000,000. Borrowings
of more than one Class and Type may be outstanding at the same time; provided that there shall not at any time be more than
a total of 10 Eurodollar Borrowings outstanding.

 

(d)          Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Revolving
Borrowing or Other Revolving Borrowing or any Term Borrowing if the Interest Period requested with respect thereto would end after
the applicable maturity date for the relevant Class.

 

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SECTION 2.03.          Requests
for Borrowings. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone, in
writing (including by e-mail) or by facsimile (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York
City time, three Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later
than (1) 10:30 a.m., New York City time, on the Business Day of the proposed Borrowing, in the case of Borrowings
to be made on the same day as such notice is given or (2) 12:00 noon, New York City time, on the Business Day before
the proposed Borrowing, in the case of all other Borrowings. Each telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery, e-mail or facsimile to the Administrative Agent of a written Borrowing Request in a form approved
by the Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.02:

 

(i)          whether
the requested Borrowing is to be a Revolving Borrowing or Other Revolving Borrowing or Term Borrowing;

 

(ii)          the
aggregate amount of such Borrowing;

 

(iii)          the
date of such Borrowing, which shall be a Business Day;

 

(iv)          whether
such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

 

(v)          in
the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated
by the definition of the term “Interest Period”; and

 

(vi)          the
location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements
of Section 2.06.

 

If no election as to the Type of Borrowing
is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested
Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of
the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

 

SECTION 2.04.          Swingline
Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender may, in its sole discretion, make Swingline
Loans to the Borrower from time to time during the Revolving Availability Period in an aggregate principal amount at any time outstanding
that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $100,000,000 or (ii) the
sum of the total Revolving Exposures exceeding the lesser of (A) the total Revolving Commitments at such time and (B) the
Borrowing Base Amount in effect at such time minus the sum of (1) the outstanding Term Loans at such time, (2) the
Other Revolving Exposures at such time and (3) the Additional Senior Debt at such time; provided that (i) the
Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan and (ii) the Swingline
Lender shall not have any obligation, under this Agreement or otherwise, to make any Swingline Loan requested by the Borrower hereunder
and may, in its sole discretion, decline to make a requested Swingline Loan. Within the foregoing limits and subject to the terms
and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans.

 

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(b)           To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone, in writing
(including by e-mail) or by facsimile not later than 1:00 p.m., New York City time, on the day of a proposed Swingline Loan.
Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the
requested Swingline Loan. The Administrative Agent will promptly advise the Swingline Lender of any such notice received from
the Borrower. The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a wire transfer to an
account designated by the Borrower (or, in the case of a Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in Section 2.05(e), by remittance to the relevant Issuing Bank) by 3:00 p.m., New York
City time, on the requested date of such Swingline Loan.

 

(c)          Interest
on each Swingline Loan shall be payable on the Interest Payment Date with respect thereto.

 

(d)          The
Administrative Agent shall (i) at any time when Swingline Loans in an aggregate principal amount of $10,000,000 or more are
outstanding, at the request of the Swingline Lender in its sole discretion, or (ii) on the date that is seven days after the
date on which a Swingline Loan was made, deliver on behalf of the Borrower a Borrowing Request pursuant to Section 2.03 for
an ABR Revolving Borrowing in the amount of such Swingline Loans; provided, however, that the obligations
of the Lenders to fund such Borrowing shall not be subject to the conditions set forth in Section 4.02.

 

(e)          The
Swingline Lender may by written notice given to the Administrative Agent not later than 12:00 noon, New York City time, on
any Business Day require the Revolving Lenders to acquire participations on such Business Day in all or a portion of the Swingline
Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which Revolving Lenders will participate.
Promptly upon receipt of such notice (but no later than 2:00 p.m., New York City time, on such Business Day), the Administrative
Agent will give notice thereof to each Revolving Lender, specifying in such notice such Lender’s Applicable Percentage of
such Swingline Loan or Loans. Each Revolving Lender hereby absolutely and unconditionally agrees, upon timely receipt of notice
as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable
Percentage of such Swingline Loan or Loans. Each Revolving Lender acknowledges and agrees that its obligation to acquire participations
in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever,
including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction whatsoever. Each Revolving Lender shall comply with its obligation
under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.06 with
respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations
of the Revolving Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it
from the Revolving Lenders. The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired
pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent
and not to the Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or other Person on behalf of the
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations therein
shall be promptly remitted to the Administrative Agent, and any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Revolving Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear. The purchase of participations in a Swingline Loan pursuant to this paragraph
shall not relieve the Borrower of any default in the payment thereof.

 

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(f)          Swingline
Loans also may be made available to the Borrower pursuant to any Other Revolving Commitment established by any Loan Modification
Agreement or Refinancing Amendment, in each case as provided in such Loan Modification Agreement or Refinancing Amendment.

 

SECTION 2.05.          Letters
of Credit. (a) General. Subject to the terms and conditions set forth herein, the Borrower may request the issuance
of (and the applicable Issuing Bank, as specified by the Borrower, will issue) Letters of Credit for its own account, in a form
reasonably acceptable to the Administrative Agent and the relevant Issuing Bank, at any time and from time to time during the Revolving
Availability Period; provided, however, that no Issuing Bank will be required to issue (or amend) any Letter of Credit
if, after giving effect thereto, the aggregate amount of Letters of Credit issued by such Issuing Bank would exceed $125,000,000.
In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of
letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, an Issuing
Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

 

(b)          Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the applicable Issuing Bank) to the relevant Issuing Bank and
the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting
the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the
date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to
expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address
of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.
If requested by an Issuing Bank, the Borrower also shall submit a letter of credit application on such Issuing Bank’s standard
form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only
if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension (i) the total LC Exposure shall not exceed $500,000,000,
(ii) the amount of the LC Exposure attributable to Letters of Credit issued by the applicable Issuing Bank will not exceed
$125,000,000 and (iii) the total Revolving Exposures shall not exceed the lesser of (A) the total Revolving Commitments at such
time and (B) the Borrowing Base Amount in effect at such time minus the sum of (1) the outstanding Term Loans
at such time, (2) the Other Revolving Exposures at such time and (3) the Additional Senior Debt at such time.

 

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(c)          Expiration
Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date that is one
year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) and (ii) the date that is five Business Days prior to the Revolving Maturity Date.

 

(d)          Participations.
By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further
action on the part of the applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Revolving Lender, and
each Revolving Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit in an amount equal to such
Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration
and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative
Agent, for the account of the applicable Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by
such Issuing Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement
payment required to be refunded to the Borrower for any reason. Each Revolving Lender acknowledges and agrees that its obligation
to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not
be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever.

 

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(e)          Reimbursement.
If any Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement
by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 3:30 p.m., New York City time, on
the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m.,
New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then
not later than 1:00 p.m., New York City time, on the Business Day immediately following the day that the Borrower receives such
notice; provided that, if such LC Disbursement is not less than $5,000,000, the Borrower may, subject to the conditions
to borrowing set forth herein, request in accordance with Section 2.03 or 2.04 that such payment be financed with an ABR Revolving
Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such
payment shall be discharged and replaced by the resulting ABR Revolving Borrowing or Swingline Loan. If the Borrower fails to make
such payment when due, the Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment
then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof. Promptly following receipt
of such notice, each Revolving Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from
the Borrower, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06
shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative Agent
shall promptly pay to the relevant Issuing Bank the amounts so received by it from the Revolving Lenders. Promptly following receipt
by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute
such payment to such Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to this paragraph to reimburse
such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a Revolving Lender
pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans
or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to
reimburse such LC Disbursement.

 

(f)          Obligations
Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall
be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under
any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or
this Agreement, or any term or provision therein or herein, (ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect,
(iii) payment by any Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit or (iv) any other event or circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right
of setoff against, the Borrower’s obligations hereunder. None of the Administrative Agent, any Lender or any Issuing Bank,
or any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or
transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the relevant
Issuing Bank; provided that the foregoing shall not be construed to excuse such Issuing Bank from liability to the Borrower
to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower
to the fullest extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s gross
negligence or willful misconduct (as determined by a court of competent jurisdiction by a final and non-appealable judgment) in
determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto
expressly agree that, in the absence of gross negligence or willful misconduct on the part of an Issuing Bank (as determined by
a court of competent jurisdiction by a final and non-appealable judgment), such Issuing Bank shall be deemed to have exercised
care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter
of Credit, an Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility
for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

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(g)          Disbursement
Procedures. The applicable Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to
represent a demand for payment under a Letter of Credit. The applicable Issuing Bank shall promptly notify the Administrative Agent
and the Borrower by telephone (confirmed by e-mail or facsimile) of such demand for payment and whether such Issuing Bank has made
or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve
the Borrower of its obligation to reimburse the Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

 

(h)          Interim
Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement
in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including
the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate
per annum then applicable to ABR Revolving Loans; provided that, if the Borrower fails to reimburse such LC Disbursement
when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph
shall be for the account of the applicable Issuing Bank, except that interest accrued on and after the date of payment by any Revolving
Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall be for the account of such Lender to the
extent of such payment.

 

(i)          Resignation
or Replacement of the Issuing Bank. An Issuing Bank may resign at any time by giving 180 days’ prior written notice to
the Administrative Agent, the Borrower and the Lenders, and an Issuing Bank may be replaced at any time by written agreement (an
“Issuing Bank Agreement”) among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor
Issuing Bank, which shall set forth the LC Commitment of such Issuing Bank. The Administrative Agent shall notify the Lenders of
any such replacement of an Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid
fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the effective date of any
such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of an Issuing Bank under this Agreement
with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall
be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto
and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

 

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(j)          Cash
Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice
from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders
with LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this
paragraph, the Borrower shall (or shall cause Subsidiary Loan Parties to) deposit in an account with the Administrative Agent,
in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash equal to 103% of the total LC Exposure
as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral
shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of
any kind, upon the occurrence of any Event of Default with respect to the Borrower or any Subsidiary Loan Party described in clause (h)
or (i) of Article VII. The Borrower also shall (or shall cause Subsidiary Loan Parties to) deposit cash collateral pursuant
to this paragraph as and to the extent required by Section 2.11(b), and any such cash collateral so deposited and held by
the Administrative Agent hereunder shall constitute part of the Borrowing Base Amount for purposes of determining compliance with
Section 2.11(b). Each such deposit shall be held by the Administrative Agent as collateral for the payment and performance
of the obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and control, including
the exclusive right of withdrawal, over such account. The Administrative Agent shall, at the Borrower’s risk and expense,
invest all such deposits in Permitted Investments chosen in the sole discretion of the Administrative Agent after consultation
with the Borrower, provided that no consultation shall be required if a Default has occurred and is continuing. Other than
any interest earned in respect of the investment of such deposits, such deposits shall not bear interest. Interest or profits,
if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent
to reimburse each Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall
be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity
of the Loans has been accelerated (but subject to (i) the consent of Revolving Lenders with LC Exposure representing greater than
50% of the total LC Exposure and (ii) in the case of any such application at a time when any Revolving Lender is a Defaulting Lender
(but only if, after giving effect thereto, the remaining cash collateral shall be less than the aggregate LC Exposure of all the
Defaulting Lenders), the consent of each Issuing Bank), be applied to satisfy the Senior Obligations. If the Borrower is required
to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent
not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured
or waived (or, during a Cash Sweep Period, paid into the Citibank Concentration Account). If the Borrower is required to provide
an amount of cash collateral hereunder pursuant to Section 2.11(b), such amount (to the extent not applied as aforesaid) shall
be returned to the Borrower as and to the extent that, after giving effect to such return, the Borrower would remain in compliance
with Section 2.11(b), no Issuing Bank shall have any exposure in respect of any outstanding Letter of Credit that is not fully
covered by the Revolving Commitments of the Non-Defaulting Lenders and/or the remaining cash collateral and no Default shall have
occurred and be continuing. Unless and except to the extent that the deposit of cash collateral directly by the Borrower would
not result in an obligation to grant a security interest in such cash collateral to the holders of other outstanding Indebtedness
of the Borrower, the Borrower will cause Subsidiary Loan Parties to deposit all cash collateral required to be deposited pursuant
to this Section 2.05(j) or Section 2.11(b).

 

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(k)          Additional
Issuing Banks. The Borrower may, at any time and from time to time with the consent of the Administrative Agent (which consent
shall not be unreasonably withheld) and such Lender, designate one or more additional Lenders to act as an issuing bank under the
terms of this Agreement. Any Lender designated as an issuing bank pursuant to this clause (k) shall be deemed to be an “Issuing
Bank” (in addition to being a Lender) in respect of Letters of Credit issued or to be issued by such Lender, and, with respect
to such Letters of Credit, such term shall thereafter apply to the other Issuing Banks and such Lender in its capacity as an Issuing
Bank.

 

(l)          Reporting
by Issuing Banks to the Administrative Agent. At the end of each week and otherwise upon request of the Administrative Agent,
each Issuing Bank shall provide the Administrative Agent with a certificate identifying the Letters of Credit issued by such Issuing
Bank and outstanding on such date, the amount and expiration date of each such Letter of Credit, the beneficiary thereof, the amount,
if any, drawn under each such Letter of Credit and any other information reasonably requested by the Administrative Agent with
respect to such Letters of Credit. The Administrative Agent shall promptly enter all such information received by it pursuant to
this Section 2.05(l) in the Register.

 

(m)          Letters
of Credit also may be made available for the account of the Borrower pursuant to any Other Revolving Commitment established by
any Loan Modification Agreement or Refinancing Amendment, in each case as provided in such Loan Modification Agreement or Refinancing
Amendment.

 

SECTION 2.06.          Funding
of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer
of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated
by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided in Section 2.04.
The Administrative Agent will make such Loans available to the Borrower by wire transfer, in like funds, to an account designated
by the Borrower in the applicable Borrowing Request. Wire transfers to the Borrower of all Loans (other than Swingline Loans and
same-day ABR Revolving Borrowings) shall be made no later than 1:00 p.m., New York City time. Wire transfers to the Borrower
of Swingline Loans and same-day ABR Revolving Borrowings shall be made no later than 4:00 p.m., New York City time.

 

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(b)          Unless
the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender
will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume
that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance
upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its
share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from
and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative
Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Revolving Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute
such Lender’s Loan included in such Borrowing.

 

SECTION 2.07.          Interest
Elections. (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case
of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing,
may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding
the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. This
Section shall not apply to Swingline Borrowings, which may not be converted or continued.

 

(b)          To
make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone, in
writing (including by e-mail) or by facsimile by the time that a Borrowing Request would be required to be made under Section 2.03
if the Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date
of such election. Each such Interest Election Request shall be irrevocable and shall be in a form approved by the Administrative
Agent and signed by the Borrower.

 

(c)          Each
Interest Election Request shall specify the following information in compliance with Section 2.02 and paragraph (f) of this
Section:

 

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(i)          the
Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

 

(ii)          the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

 

(iii)          whether
the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

 

(iv)          if
the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election,
which shall be a period contemplated by the definition of the term “Interest Period”.

 

If any such Interest Election Request requests a Eurodollar
Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration.

 

(d)          Promptly
following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and
of such Lender’s portion of each resulting Borrowing.

 

(e)          If
the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period
such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has
occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then,
so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing
and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

 

(f)          A
Revolving Borrowing, Other Revolving Borrowing or Term Borrowing may not be converted to or continued as a Eurodollar Borrowing
if after giving effect thereto the Interest Period therefor would end after the maturity date for such Class.

 

SECTION 2.08.          Termination
and Reduction of Commitments. (a) Unless previously terminated in accordance with the terms of this Agreement, the Revolving
Commitments shall terminate on the Revolving Maturity Date.

 

(b)          The
Borrower may at any time terminate, or from time to time reduce, the Commitments of any Class; provided that (i) each reduction
of the Commitments of any Class shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and
(ii) the Borrower shall not terminate or reduce (A) the Revolving Commitments if, after giving effect to any concurrent prepayment
of the Revolving Loans in accordance with Section 2.11, the total Revolving Exposures would exceed the total Revolving Commitments
or (B) except as otherwise provided in the applicable Refinancing Amendment or Loan Modification Agreement, the Other Revolving
Commitments of any Class if, after giving effect to any concurrent repayment of the Other Revolving Loans of such Class, the Other
Revolving Exposures of such Class would exceed the Other Revolving Commitments of such Class.

 

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(c)          The
Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b)
of this Section at least one Business Day prior to the effective date of such termination or reduction, specifying such election
and the effective date thereof. Promptly following receipt of any such notice, the Administrative Agent shall advise the Lenders
of the contents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that
a notice of voluntary termination or reduction of the Revolving Commitments delivered by the Borrower may state that such notice
is conditioned upon the effectiveness of other credit facilities or other financings, in which case such notice may be revoked
by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.
Any termination or reduction of the Commitments of any Class shall be permanent. Each reduction of the Commitments of any Class
shall be made ratably among the Lenders in accordance with their Commitments of such Class.

 

(d)          Reductions
and terminations of any Other Revolving Commitments shall be as provided for in the applicable Refinancing Amendment or Loan Modification
Agreement.

 

SECTION 2.09.          Repayment of
Loans; Evidence of Indebtedness. (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent
for the account of each Revolving Lender the then unpaid principal amount of each Revolving Loan of such Lender on the Revolving
Maturity Date, (ii) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of (A) the
Revolving Maturity Date and (B) the date that is seven days after the date on which such Swingline Loan was made; provided
that on each date that a Revolving Borrowing is made, the Borrower shall repay all Swingline Loans that were outstanding on the
date such Borrowing was requested, (iii) to the Administrative Agent for the account of each Term Lender with Term Loans of
any Class the then unpaid principal amount of the Term Loans of such Lender of such Class as provided in the applicable Refinancing
Amendment, Loan Modification Agreement or Incremental Facility Amendment.

 

(b)          Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrower
to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to
such Lender from time to time under this Agreement.

 

(c)          The
Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class
and Type thereof and the Interest Period, if any, applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

 

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(d)          The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.

 

(e)          Any
Lender may request that Loans of any Class made by it be evidenced by a promissory note. In such event, the Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and
its registered assigns) and in the form attached hereto as Exhibit A-1 or A-2, as applicable, or in such other
form approved by the Administrative Agent and the Borrower. Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes
in such form payable to the payee named therein (or, if such promissory note is a registered note, to such payee and its registered
assigns).

 

SECTION 2.10.          Amortization
and Repayment of Term Loans. (a) The principal amount of each Class of Term Loans shall mature on such date and shall amortize
in such amounts payable at such times as are set forth in the applicable Refinancing Amendment, Incremental Facility Agreement
or Loan Modification Agreement. Except as otherwise provided in the applicable Refinancing Amendment, Incremental Facility Amendment
or Loan Modification Agreement, any prepayment of a Term Borrowing pursuant to Section 2.11(b), (c) or (d) shall be applied
to reduce the subsequent scheduled repayments of such Borrowings in direct order of their maturity.

 

(b)          Prior
to any repayment of any Term Borrowing hereunder, the Borrower shall select the Borrowing or Borrowings to be repaid and shall
notify the Administrative Agent by telephone (confirmed by e-mail or facsimile) of such selection not later than 11:00 a.m., New
York City time, three Business Days before the scheduled date of such repayment. Each repayment of an Term Borrowing shall be applied
ratably to the Loans included in the repaid Borrowing. Repayments of Term Borrowings shall be accompanied by accrued interest on
the amount repaid.

 

SECTION 2.11.          Prepayment
of Loans. (a) The Borrower shall have the right, at any time and from time to time, to prepay any Borrowing in whole or in
part, subject to the requirements of this Section; provided, however, that any partial prepayment made pursuant to
this Section 2.11(a) shall be in a principal amount that is a multiple of $1,000,000 and not less than $5,000,000 (except
in the case of any Term Borrowing or Other Revolving Borrowing, to the extent provided in the applicable Refinancing Amendment
or Loan Modification Agreement).

 

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(b)          (i)
In the event and on each date that the sum of (A) the total Revolving Exposures on such date, (B) the outstanding Term Loans on
such date, (C) the Other Revolving Exposures on such Date and (D) the Additional Senior Debt on such date exceed the
then-current Borrowing Base Amount, the Borrower shall on each such date apply an amount equal to such excess as follows: first,
to prepay Revolving Borrowings or Swingline Loans (and/or Other Revolving Borrowings or swingline loans relating to Other Revolving
Commitments), second, to the extent of any remaining excess or, if no Revolving Borrowings or Swingline Loans (or Other
Revolving Borrowings or swingline loans relating to Other Revolving Commitments) are outstanding, to make a deposit in a cash collateral
account maintained by the Administrative Agent pursuant to Section 2.05(j) to be held as security for the Borrower’s
obligations in respect of Letters of Credit (and/or letters of credit relating to Other Revolving Commitments) and third,
to the extent of any remaining excess, to prepay Term Borrowings on a pro rata basis (determined based upon the sum of the
outstanding Term Loans at such time).

 

(ii)          In
the event and on each date that the total Revolving Exposures exceed the total Revolving Commitments or, in the case of any date
prior to the 8.00% Secured Note Repayment Date, $3,000,000,000, the Borrower shall on such date apply an amount equal to such excess
first, to prepay Revolving Borrowings or Swingline Borrowings and second, to the extent of any remaining excess,
or if no Revolving Borrowings or Swingline Loans are outstanding, to a cash collateral account maintained by the Administrative
Agent pursuant to Section 2.05(j) to be held as security for the Borrower’s obligations in respect of Letters of Credit.

 

(c)          In
the event and on each occasion that any Net Proceeds are received by or on behalf of the Borrower or any Subsidiary in respect
of any Prepayment Event, the Borrower shall, within three Business Days after such Net Proceeds are received, prepay Term Borrowings
of each Class (if any Term Borrowings are then outstanding), on a pro rata basis, in an aggregate amount equal to 100% of
the Net Proceeds resulting from such Prepayment Event; provided that if at the time (and regardless of whether Term Borrowings
are outstanding) any (x) Net Proceeds resulting from prepayment events described in clause (a) of the definition of the term “Prepayment
Events” are received and the Revolver Availability is less than $900,000,000 or (y) Net Proceeds resulting from any Prepayment
Event are received during a Cash Sweep Period, such Net Proceeds will be applied as follows: first, to prepay Revolving
Borrowings, Other Revolving Borrowings or Swingline Loans and second, to the extent of any remaining excess, to prepay Term
Borrowings of each Class, on a pro rata basis; provided further that, in the case of any Prepayment Event
described in clause (a) or (b) of the definition of the term “Prepayment Event”, (x) the Borrower may reserve
and apply a portion of the Net Proceeds received by or on behalf of the Borrower or any Subsidiary in respect of such Prepayment
Event (excluding any portion of such Net Proceeds applied to prepay Revolving Borrowings, Other Revolving Borrowings or Swingline
Loans pursuant to clause “first” above) to prepay or repurchase Permitted First Priority Debt, on or prior to the date
on which the applicable Senior Debt Document requires such prepayment or repurchase to have been made, to the extent such Additional
Senior Debt Document requires the issuer of such Permitted First Priority Debt to prepay or make an offer to prepay or purchase
such Permitted First Priority Debt with the proceeds of such Prepayment Event, in each case in an amount not to exceed the product
of (1) the amount of such Net Proceeds multiplied by (2) a fraction, the numerator of which is the outstanding principal
amount of the Permitted First Priority Debt with respect to which such a requirement to prepay or make an offer to prepay or purchase
exists and the denominator of which is the sum of the outstanding principal amount of all such Permitted First Priority Debt and
the outstanding principal amount of all Term Loans; provided that, to the extent that the amount so reserved is not so applied
to prepay or purchase Permitted First Priority Debt on or prior to the date on which the applicable Senior Debt Document requires
such prepayment or repurchase to have been made, the remaining amount not so applied shall be applied in accordance with this Section 2.11(c)
(without giving effect to this clause (x)) and (y) if the Borrower shall elect to apply the Net Proceeds from such event
(or a portion thereof specified in such certificate), within 365 days after receipt of such Net Proceeds, to acquire real property,
equipment or other tangible assets to be used in the business of the Borrower and the Subsidiaries, and certifying that no Default
has occurred and is continuing, then no prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds
in respect of such event (or the portion of such Net Proceeds specified in such certificate, if applicable), except to the extent
of any such Net Proceeds therefrom that have not been so applied by the end of such 365 day period, at which time a prepayment
shall be required in an amount equal to such Net Proceeds that have not been so applied.

 

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(d)          Following
the end of each fiscal year of the Borrower, the Borrower shall prepay Term Borrowings of each Class, on a pro rata basis,
in an aggregate amount equal to (i) if on the last day of such fiscal year the Leverage Ratio is greater than or equal to 5.50
to 1.00, 50% of the Excess Cash Flow for such fiscal year, (ii) if on the last day of such fiscal year the Leverage Ratio is greater
than or equal to 5.00 to 1.00 but less than 5.50 to 1.00, 25% of the Excess Cash Flow for such fiscal year and (iii) if on the
last day of such fiscal year the Leverage Ratio is less than 5.00 to 1.00, 0% of the Excess Cash Flow for such fiscal year. Each
prepayment pursuant to this paragraph shall be made on or before the date on which financial statements are delivered pursuant
to Section 5.01 with respect to the fiscal year for which Excess Cash Flow is being calculated (and in any event within 90 days
after the end of such fiscal year); provided that no such prepayment shall be required to be made pursuant to this Agreement
with respect to Excess Cash Flow for the fiscal year ended March 1, 2014.

 

(e)          Prior
to any optional or mandatory prepayment of Borrowings hereunder, the Borrower shall select the Borrowing or Borrowings to be prepaid
and shall specify such selection in the notice of such prepayment pursuant to paragraph (f) of this Section.

  

(f)          The
Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone,
in writing (including by e-mail) or by facsimile of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing,
not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment
of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the Business Day of such prepayment or (iii) in the case
of prepayment of a Swingline Loan, not later than 12:00 noon, New York City time, on the date of prepayment. Each such notice shall
be irrevocable and shall specify the prepayment date, the Borrowings to be prepaid and the principal amount of each Borrowing or
portion thereof to be prepaid and, in the case of a mandatory prepayment, a reasonably detailed calculation of the amount of such
prepayment; provided that a notice of optional prepayment delivered by the Borrower pursuant to this Section may state that
it is conditioned on the effectiveness of other credit facilities or other financing, in which case such notice may be revoked
by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.
Promptly following receipt of any such notice (other than a notice relating solely to Swingline Loans), the Administrative Agent
shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02, except as necessary to apply fully
the required amount of a mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably to the Loans included in
the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13.

 

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SECTION 2.12.          Fees.
(a) The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee, which shall
accrue at the Applicable Rate per annum on the daily unused amount of the Revolving Commitment of such Lender (including any portion
of such Revolving Commitment the use of which is conditioned on the occurrence of the 8.00% Secured Note Repayment Date) during
the period from and including the 2015 Restatement Effective Date to but excluding the date on which such Commitment terminates.
Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on
the date on which the Revolving Commitments terminate, commencing on the first such date to occur after the 2015 Restatement Effective
Date. All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). For purposes of computing commitment fees pursuant to this Section 2.12(a),
a Revolving Commitment of a Lender shall be deemed to be used to the extent of the outstanding Revolving Loans and LC Exposure
of such Lender (and the Swingline Exposure of such Lender shall be disregarded for such purpose).

 

(b)          The
Borrower agrees to pay (i) to the Administrative Agent for the account of each Revolving Lender a participation fee with respect
to its participations in Letters of Credit, which shall accrue at the same Applicable Rate as in effect from time to time for interest
on Eurodollar Revolving Loans on the daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable
to unreimbursed LC Disbursements) during the period from and including the 2015 Restatement Effective Date to but excluding the
later of the date on which such Lender’s Revolving Commitment terminates and the date on which such Lender ceases to have
any LC Exposure, and (ii) to each Issuing Bank a fronting fee, which shall accrue at the rate of 0.25% per annum on the daily outstanding
amount of such Issuing Bank’s Letters of Credit during the period from and including the 2015 Restatement Effective Date
to but excluding the later of the date of termination of the Revolving Commitments and the date on which there ceases to be any
LC Exposure, as well as such Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through and including the
last day of March, June, September and December of each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the 2015 Restatement Effective Date; provided that all such fees shall
be payable on the date on which the Revolving Commitments terminate and any such fees accruing after the date on which the Revolving
Commitments terminate shall be payable on demand. Any other fees payable to an Issuing Bank pursuant to this paragraph shall be
payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days
and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

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(c)          The
Borrower agrees to pay to the Administrative Agent and the Collateral Agent, for their own accounts, fees payable in the amounts
and at the times separately agreed upon between the Borrower and the Administrative Agent or the Collateral Agent, as the case
may be.

 

(d)          All
fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the relevant
Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees and participation fees, to the
Lenders entitled thereto. Fees paid shall not be refundable under any circumstances.

 

(e)          The
fees to be paid in respect of Other Revolving Commitments and any Letters of Credit issued pursuant to any Other Revolving Commitments
shall be as set forth in the Refinancing Amendment or Loan Modification Agreement relating thereto.

 

SECTION 2.13.          Interest.
(a) The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear interest at the Alternate Base Rate
plus the Applicable Rate.

 

(b)          The
Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Rate.

 

(c)          Notwithstanding
the foregoing, upon the occurrence and during the continuation of an Event of Default, at the option of the Administrative Agent
or at the request of the Required Lenders, the Borrower shall pay interest on all of the Senior Loan Obligations to but excluding
the date of actual payment, after as well as before judgment, (i) in the case of principal, at a rate per annum equal to 2%
plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section and (ii) in
the case of any other amount, at a rate per annum equal to 2% plus the rate applicable to ABR Revolving Loans as provided
in paragraph (a) of this Section.

 

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(d)          Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and (i) in the case of Term Loans
of any Class, on the maturity date for the Term Loans of such Class and, (ii) in the case of Revolving Loans or Other Revolving
Loans, the earlier of the maturity date for such Class of Loans and the date on which all Revolving Commitments or Other Revolving
Commitments of such Class, as the case may be, are terminated; provided that (i) interest accrued pursuant to paragraph
(c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan or ABR Other Revolving Loan prior to the end of the Revolving Availability Period or the applicable
Other Revolving Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of
such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion, together with
any amounts due and payable pursuant to Section 2.16.

 

(e)          All
interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Citibank Base Rate shall be computed on the basis of a year of
365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error.

 

SECTION 2.14.          Alternate
Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

 

(a)          the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

 

(b)          the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not adequately
and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;

 

then the Administrative Agent shall give notice thereof to the
Borrower and the Lenders by telephone or facsimile as promptly as practicable thereafter and, until the Administrative Agent notifies
the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request
that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing.

 

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SECTION 2.15.          Increased
Costs. (a) If any Change in Law shall:

 

(i)          impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or any Issuing Bank;

 

(ii)          impose
on any Lender or any Issuing Bank or the London interbank market any other condition, cost or expense (other than Taxes) affecting
this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; or

 

(iii)          subject
any Agent, any Lender or any Issuing Bank to any Taxes (other than (A) Indemnified Taxes and (B) Excluded Taxes) on its loans,
loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable
thereto;

 

and the result of any of the foregoing shall be to increase
the cost to such Agent, such Lender or such Issuing Bank, as applicable, of making, converting to, continuing or maintaining any
Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Agent, such Lender or such Issuing
Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable
by such Agent, such Lender or such Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will
pay to such Agent, such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such
Agent, such Lender or such Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)          If
any Lender or any Issuing Bank determines that any Change in Law regarding capital requirements or liquidity has or would have
the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such
Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below
that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved
but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies
of such Lender’s or such Issuing Bank’s holding company with respect to capital or liquidity adequacy), then from time
to time the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction
suffered. Each Lender will promptly notify the Borrower and the Administrative Agent of any event of which it has knowledge that
will entitle such Lender to compensation pursuant to this Section 2.15; provided that the failure to provide such notification
will not affect such Lender’s rights to compensation hereunder.

 

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(c)          A
certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or such Issuing
Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to
the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or such Issuing Bank, as the case
may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(d)          Failure
or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver
of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall
not be required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs or reductions incurred
more than 270 days prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower of the Change
in Law giving rise to such increased costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim
compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions
is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

SECTION 2.16.          Break
Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other
than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar
Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section
2.11(f) and is revoked in accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such
event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to consist of an amount determined by such Lender to be the excess,
if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred,
at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount
for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth
any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall
be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within
10 days after receipt thereof.

 

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SECTION 2.17.         Taxes.
(a) Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Senior Loan Document shall
be made free and clear of and without deduction or withholding for any Taxes, except as required by applicable law. If any applicable
law (determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax
from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or
withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with
applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so
that after making all required deductions and withholdings (including deductions and withholdings applicable to additional sums
payable under this Section) the Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would
have received had no such deductions or withholdings been made.

 

(b)          In
addition, the Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option
of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

 

(c)          The
Borrower shall indemnify each Agent, each Lender and each Issuing Bank, within 10 days after written demand therefor, for the full
amount of any Indemnified Taxes payable or paid by, or required to be deducted or withheld from a payment to, such Agent, such
Lender or such Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower
hereunder or under any other Senior Loan Document (including Indemnified Taxes imposed or asserted on or attributable to amounts
payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether
or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate
as to the amount of such payment or liability delivered to the Borrower by a Lender or an Issuing Bank, or by the Administrative
Agent on its own behalf or on behalf of a Lender or an Issuing Bank, shall be conclusive absent manifest error.

 

(d)          As
soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative
Agent.

 

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(e)          (i)
Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Senior
Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower
or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative
Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender,
if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable
law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent
to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding
anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other
than such documentation set forth in clauses (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s
reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense
or would materially prejudice the legal or commercial position of such Lender. Notwithstanding the foregoing, in the case of an
applicable Borrower or any applicable Senior Loan Party that, in each case, is not a U.S. Person, the applicable Lender will not
be subject to the requirements on this paragraph (e)(i) unless it has received written notice from such Borrower or such other
Senior Loan Party advising it of the availability of an exemption or reduction of withholding Tax under the laws of the jurisdiction
in which such Borrower or such other Senior Loan Party is located and containing all applicable documentation (together, if requested
by such Lender, with a certified English translation thereof) required to be completed by such Lender in order to receive any such
exemption or reduction, and such Lender is reasonably satisfied that it is legally able to provide such documentation to such Borrower
or such other Senior Loan Party.

 

(ii) Without limiting
the generality of the foregoing, in the event that the Borrower is a U.S. Person,

 

(A) any Lender that is
a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative
Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. Federal backup withholding tax;

 

(B) any Foreign Lender
shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following
is applicable:

 

(1) in the
case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to
payments of interest under any Senior Loan Document, executed copies of IRS Form W-8BEN or W-8BEN-E establishing an exemption from,
or reduction of, U.S. Federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect
to any other applicable payments under any Senior Loan Document, IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or
reduction of, U.S. Federal withholding Tax pursuant to the “business profits” or “other income” article
of such tax treaty;

 

(2) executed
copies of IRS Form W-8ECI;

 

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(3) in the
case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a
certificate substantially in the form of Exhibit H-1 to the effect that such Foreign Lender is not a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section
881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S.
Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or W-8BEN-E; or

 

(4) to the
extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form
W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-2 or Exhibit H-3, IRS Form W-9, and/or
other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership
and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign
Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-4 on behalf of each such direct and
indirect partner.

 

(f)          Any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient), on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. Federal
withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit
the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

 

(g)          If
a payment made to a Lender under any Senior Loan Document (or a payment made to a Participant pursuant to a participation granted
by any Lender) would be subject to U.S. Federal withholding Tax imposed by FATCA if such Lender (or Participant) were to fail to
comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code,
as applicable), such Lender shall deliver to the Borrower and the Administrative Agent (or, in the case of a Participant, to the
Lender who granted the participation only) at the time or times prescribed by law and at such time or times reasonably requested
by the Borrower or the Administrative Agent (or, in the case of a Participant, the Lender who granted the participation) such documentation
prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
reasonably requested by the Borrower or the Administrative Agent (or, in the case of a Participant, the Lender who granted the
participation) as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and
to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and
withhold from such payment. Each Lender (or Participant) agrees that if any form or certification it previously delivered expires
or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and
the Administrative Agent (or, in the case of a Participant, the Lender who granted the participation) in writing of its legal inability
to do so. Solely for purposes of this paragraph (f), “FATCA” shall include any amendments made to FATCA after the date
of this Agreement. For purposes of determining withholding Taxes imposed under FATCA, from and after the 2015 Restatement Effective
Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat)
the Loans as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

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(h)          Each
Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes
attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for
such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's
failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Register and (iii) any Excluded
Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Senior
Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the
Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Senior Loan Document or
otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative
Agent under this paragraph (g).

 

(i)          If
any Agent, Lender or Issuing Bank determines, in its sole discretion exercised in good faith, that it has received a refund of
any Taxes as to which it has been indemnified pursuant to this Section 2.17 (including by the payment of additional amounts pursuant
to this Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity
payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including
Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with
respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party
the amount paid over pursuant to this paragraph (i) (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding
anything to the contrary in this paragraph (i), in no event will the indemnified party be required to pay any amount to an indemnifying
party pursuant to this paragraph (i) the payment of which would place the indemnified party in a less favorable net after-Tax position
than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been
deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never
been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other
information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

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(j)          Each
Party’s obligations under this Section shall survive the resignation or replacement of the Administrative Agent or any assignment
of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge
of all obligations under any Senior Loan Document.

 

(k)          For
purposes of this Section, the term “Lender” includes any Issuing Bank and the term “applicable law” includes
FATCA.

 

SECTION 2.18.         Payments
Generally; Pro Rata Treatment; Sharing of Setoffs. (a) The Borrower shall make each payment required to be made by it hereunder
or under any other Senior Loan Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts
payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to the time expressly required hereunder or under such other
Senior Loan Document for such payment (or, if no such time is expressly required, prior to 2:00 p.m., New York City time),
on the date when due, in immediately available funds, without setoff or counterclaim. Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 388 Greenwich
Street, New York, NY 10013, except payments to be made directly to an Issuing Bank or Swingline Lender as expressly provided herein
and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto
and payments pursuant to other Senior Loan Documents shall be made to the Persons specified therein. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment under any Senior Loan Document shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall
be payable for the period of such extension. All payments under each Senior Loan Document shall be made in dollars.

 

(b)          If
at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment
of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then
due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements
then due to such parties.

 

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(c)          If
any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of
or interest on any of its Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment
of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and Swingline Loans and accrued
interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase
(for cash at face value) participations in the Loans and participations in LC Disbursements and Swingline Loans of other Lenders
to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate relative amounts of principal of and accrued interest on their Loans and participations in LC Disbursements and Swingline
Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant
to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment
of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than
to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

(d)          Unless
the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or an Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact
made such payment, then each of the Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Lender or such Issuing Bank with interest thereon, for each day from
and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.

 

(e)          If
any Lender shall fail to make any payment required to be made by it pursuant to Section 2.04(d), 2.05(d) or (e), 2.06(b), 2.18(d)
or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under
such Sections until all such unsatisfied obligations are fully paid.

 

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SECTION 2.19.         Mitigation
Obligations; Replacement of Lenders. (a)  If any Lender requests compensation under Section 2.15, or if the
Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking
its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15
or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by
any Lender in connection with any such designation or assignment.

 

(b)          If
(i) any Lender requests compensation under Section 2.15, (ii) the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, (iii) any Lender has become a
Defaulting Lender or (iv) any Lender refuses to consent to any amendment or waiver of any Senior Loan Document requested by the
Borrower that requires the consent of all Lenders, and such amendment or waiver is consented to by the Supermajority Lenders, then
the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender
to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all
its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written
consent of the Administrative Agent (and, if a Revolving Commitment is being assigned, the Issuing Banks and the Swingline Lender),
which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim
for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result
in a material reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation
if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such
assignment and delegation cease to apply.

 

SECTION 2.20.         Adjustments
to Borrowing Base Advance Rates. (a)  As of the 2015 Restatement Effective Date, (i) the Accounts Receivable Advance
Rate will be 85%, (ii) the Pharmaceutical Inventory Advance Rate will be 90%, (iii) the Other Inventory Advance Rate will be 90%,
(iv) the Script Lists Advance Rate will be 40% and (v) the Credit Card Receivable Advance Rate will be 90%.

 

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(b)          Any
increase in the Pharmaceutical Inventory Advance Rate, the Other Inventory Advance Rate, the Accounts Receivable Advance Rate,
the Script Lists Advance Rate or the Credit Card Receivable Advance Rate above that would result in any rate in excess of the initially
applicable rate set forth in Section 2.20(a) will in each case require the consent of all the Lenders.

 

(c)          The
Borrowing Base Agent, in the exercise of its commercially reasonable judgment to reflect Borrowing Base Factors, may (i) reduce
the Accounts Receivable Advance Rate, the Pharmaceutical Inventory Advance Rate, the Other Inventory Advance Rate, the Script Lists
Advance Rate and the Credit Card Receivable Advance Rate from time to time and (ii) thereafter increase such rate to a rate
not in excess of the applicable rate set forth in Section 2.20(a).

 

(d)          The
Administrative Agent will give prompt written notice to the Borrower and the Lenders of any adjustments effected pursuant to this
Section 2.20.

 

(e)          Notwithstanding
anything herein or in any other Senior Loan Document to the contrary, any waiver, amendment or modification to (i) the definition
of “Borrowing Base Amount”, “Borrowing Base Factors”, “Accounts Receivable Advance Rate”, “Pharmaceutical
Inventory Advance Rate”, “Other Inventory Advance Rate”, “Script Lists Advance Rate”, “Credit
Card Receivable Advance Rate”, “Eligible Accounts Receivable”, “Eligible Credit Card Accounts Receivable”,
“Eligible Inventory”, “Eligible Other Inventory Value”, “Eligible Pharmaceutical Inventory Value”,
“Eligible Script Lists”, “Eligible Script Lists Value”, “Account”, “Credit Card Accounts
Receivable”, “Other Inventory”, “Net Orderly Liquidation Rate” or “Pharmaceutical Inventory”,
(ii) the definition of “Revolver Availability” or the calculation thereof pursuant to Section 2.01(a) or Section 2.11(b),
the calculation of availability for Swingline Loans, including as set forth under Section 2.04(a), or the calculation of availability
for the issuance, amendment, renewal or extension of any Letters of Credit, including as set forth in Section 2.05(b), in each
case that would have the effect of increasing either (A) the Borrowing Base Amount or (B) the aggregate amount of Loans,
Revolving Exposures, Other Revolving Exposures and Additional Senior Debt that may be outstanding relative to the Borrowing Base
Amount, (iii) Section 5.16, Section 6.15 or Section 9.15, (iv) the cash management arrangements set forth in the Senior Subsidiary
Security Agreement, including as set forth in Schedule 3 thereto will, in the case of each of clauses (i) through (iv), require
the consent of each Person constituting a “Borrowing Base Agent” in addition to any other consents or approvals required
hereunder. This Section 2.20(e) may not be amended, modified or waived without the prior written consent of the Borrowing Base
Agent.

 

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SECTION 2.21.         Incremental
Loans. At any time after the 2015 Restatement Effective Date prior to the Latest Maturity Date, the Borrower may, by notice
to the Administrative Agent (which shall promptly deliver a copy to each of the Lenders), request the addition to this Agreement
of (i) an incremental revolving credit facility, (ii) Incremental Securitization Refinancing Facilities (as defined below) in the
form of a new tranche of term loans or an incremental revolving credit facility, or (iii) one or more new tranches of term loans
constituting Refinancing Indebtedness in respect of Existing Additional Senior Debt or Permitted First Priority Debt (an “Incremental
Senior Debt Refinancing Facility”), or any combination thereof (the “Incremental Facilities”); provided,
however, that both (x) at the time of any such request and (y) upon the effectiveness of any such Incremental
Facility, no Default shall exist and the Borrower shall, if a Financial Covenant Effectiveness Period is then occurring, be in
compliance with Section 6.12 (calculated, in the case of clause (y), on a pro forma basis to give effect to (1) any borrowing
under the Incremental Facility, (2) any substantially simultaneous repayments of Revolving Loans, Other Revolving Loans or
Existing Additional Senior Debt, and (3) in the case of any Incremental Securitization Refinancing Facility, any substantially
simultaneous repayments or repurchases of Third Party Interests or Indebtedness incurred under Section 6.01(a)(xvi)(A) (and the
related repurchases of Securitization Assets and cessation of future purchases of Securitization Assets)) and provided,
further, that no Split-Priority Term Loan Debt may be incurred as an Incremental Facility hereunder. The Incremental Facilities
shall (i) be in an aggregate principal amount (excluding the aggregate principal amount of Incremental Securitization Refinancing
Facilities) not in excess of $300,000,000, (ii) rank pari passu in right of payment and of security with the other
Loans, (iii) if such Incremental Facility is a term loan facility, amortize in a manner, and be subject to mandatory prepayments
(if any) on terms, acceptable to the Agents, and mature no earlier than the latest maturity date of any outstanding Term Loans
(if any), (iv) bear interest at the market interest rate, as determined at the time such Incremental Facility becomes effective,
(v) have such other pricing as may be agreed by the Borrower and the Administrative Agent and (vi) otherwise be treated
hereunder no more favorably than, in the case of revolving facilities, the Revolving Loans and Revolving Commitments, and in the
case of term loans, the outstanding Term Loans (if any); provided, that the terms and provisions applicable to any Incremental
Facility may provide for additional or different financial or other covenants applicable only during periods after the Latest Maturity
Date that is in effect on the date of effectiveness of such Incremental Facility. At no time shall the sum of (i) the aggregate
amount of loans outstanding under the Incremental Facilities at such time, (ii) the total Revolving Exposure at such time,
(iii) the outstanding Term Loans at such time, (iv) the Other Revolving Exposures at such time and (v) the Additional
Senior Debt at such time exceed the Borrowing Base Amount in effect at such time, and the proceeds of the Incremental Facilities
shall be used solely for the purposes set forth in Section 5.10 and the preamble, provided that the proceeds of Incremental
Securitization Refinancing Facilities shall be used solely for the purposes specified in the penultimate sentence of this Section
2.21 and the proceeds of any Incremental Senior Debt Refinancing Facility shall be used solely to repay Existing Additional Senior
Debt or Permitted First Priority Debt and interest and other amounts relating thereto that can be financed with Refinancing Indebtedness
relating to such Existing Additional Senior Debt or Permitted First Priority Debt, as the case may be. Such notice shall set forth
the requested amount and class of Incremental Facilities, and shall offer each Lender the opportunity to offer a commitment (the
“Incremental Commitment”) to provide a portion of the Incremental Facility by giving written notice of such
offered commitment to the Administrative Agent and the Borrower within a time period (the “Offer Period”) to
be specified in the Borrower’s notice; provided, however, that no existing Lender will be obligated to subscribe
for any portion of such commitments. In the event that, at the expiration of the Offer Period, Lenders shall have provided commitments
in an aggregate amount less than the total amount of the Incremental Facility initially requested by the Borrower, the Borrower
may request that Incremental Facility commitments be made in a lesser amount equal to such commitments and/or shall have the right
to arrange for one or more Additional Lenders to extend commitments to provide a portion of the Incremental Facility in an aggregate
amount equal to the unsubscribed amount of the initial request; provided that the Additional Lenders shall be offered the
opportunity to provide the Incremental Facility only on terms previously offered to the existing Lenders pursuant to the immediately
preceding sentence. Commitments in respect of Incremental Facilities will become Commitments under this Agreement pursuant to an
amendment to this Agreement (such an amendment, an “Incremental Facility Amendment”) executed by each of the
Borrower and each Subsidiary Loan Party, each Lender agreeing to provide such Commitment, if any, each Additional Lender, if any,
and the Administrative Agent. The effectiveness of any Incremental Facility Amendment shall be subject to the satisfaction on the
date thereof of each of the conditions set forth in Section 4.02 of this Agreement as in effect on the 2015 Restatement Effective
Date, such Incremental Facility being permitted under each indenture or other agreement governing any Material Indebtedness and
such other conditions as are specified in the applicable Incremental Facility Amendment. For purposes of this Section 2.21, “Incremental
Securitization Refinancing Facility” means any Incremental Facility to the extent that the proceeds of the Loans incurred
thereunder are used by the Borrower or a Subsidiary Guarantor on the date such Loans are made to repay or repurchase Third Party
Interests or Indebtedness incurred pursuant to Section 6.01(a)(xvi)(A) (or repurchase Securitization Assets that have been sold,
conveyed or otherwise transferred pursuant to any Securitization), provided that, upon such repayment or repurchase, (x)
no Third Party Interests or Indebtedness incurred pursuant to Section 6.01(a)(xvi)(A) remains outstanding, (y) all commitments
of the Borrower and the Subsidiaries to sell, convey or otherwise transfer Securitization Assets pursuant to any Securitization
are terminated and (z) all Securitization Assets that remain outstanding and were previously sold, conveyed or otherwise transferred
pursuant to any Securitization are repurchased by the Borrower or a Subsidiary Guarantor. For the avoidance of doubt, Securitization
Refinancing Indebtedness shall not constitute an Incremental Facility.

 

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SECTION 2.22.         Defaulting
Lenders.

 

(a)          Defaulting
Lender Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting
Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

 

(i)          Waivers
and Amendments. The Commitment and Credit Exposure of such Defaulting Lender shall not be included in determining whether the
Required Lenders or any other requisite Lenders have taken or may take any action hereunder or under any other Loan Document (including
any consent to any amendment, waiver or other modification pursuant to Section 9.02); provided that any amendment, waiver
or other modification requiring the consent of all Lenders or all Lenders affected thereby shall, except as otherwise provided
in Section 9.02, require the consent of such Defaulting Lender in accordance with the terms hereof.

 

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(ii)         Defaulting
Lender Waterfall. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account
of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise) or received by the
Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined
by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative
Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to the Issuing
Bank or any Swingline Lender; third, to Cash Collateralize the Issuing Bank’s Fronting Exposure with respect to such
Defaulting Lender in accordance with Section 2.05(j); fourth, as the Borrower may request (so long as no Default exists),
to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this
Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower,
to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding
obligations with respect to Loans under this Agreement and (y) Cash Collateralize the Issuing Bank’s future Fronting Exposure
with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with
Section 2.05(j); sixth, to the payment of any amounts owing to the Lenders or the Issuing Bank as a result of any judgment
of a court of competent jurisdiction obtained by any Lender or the Issuing Bank against such Defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default exists, to the
payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower
against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and eighth,
to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a
payment of the principal amount of any Loans or LC Disbursements in respect of which such Defaulting Lender has not fully funded
its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions
set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC Disbursements
owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or LC Disbursements
owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in Letters of Credit and Swingline
Loans are held by the Lenders pro rata in accordance with the Commitments without giving effect to Section 2.22(a)(iv). Any payments,
prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting
Lender or to post Cash Collateral pursuant to this Section 2.22(a)(ii) shall be deemed paid to and redirected by such Defaulting
Lender, and each Lender irrevocably consents hereto.

 

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(iii)        Certain
Fees.

 

(A)         No
Defaulting Lender shall be entitled to receive any fee pursuant to Section 2.12(a) for any period during which that Lender is a
Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been
paid to that Defaulting Lender).

 

(B)         Each
Defaulting Lender shall be entitled to receive fees in respect of Letters of Credit pursuant to Section 2.12(b) in respect of its
participations in Letters of Credit for any period during which that Lender is a Defaulting Lender only to the extent allocable
to its Applicable Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section
2.05(j).

 

(C)         With
respect to any participation fee in respect of Letters of Credit not required to be paid to any Defaulting Lender pursuant to clauses
(A) or (B) above, the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such
Defaulting Lender with respect to such Defaulting Lender’s participation in Letters of Credit that has been reallocated to
such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to the Issuing Bank, the amount of any such fee otherwise payable
to such Defaulting Lender to the extent allocable to the Issuing Bank’s Fronting Exposure to such Defaulting Lender, and
(z) not be required to pay the remaining amount of any such fee.

 

(iv)        Reallocation
of Participations to Reduce Fronting Exposure. All or any part of such Defaulting Lender’s participation in LC Exposure
and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages
(calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that such reallocation does not
cause the aggregate Credit Exposure of any Non-Defaulting Lender to exceed such Lender’s Commitment. No reallocation hereunder
shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having
become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased
exposure following such reallocation.

 

(v)         Cash
Collateral, Repayment of Swingline Loans . If the reallocation described in clause (iv) above cannot, or can only partially,
be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under applicable law, (a)
first, prepay Swingline Loans in an amount equal to the Swingline Lender’s Fronting Exposure and (b) second, Cash Collateralize
the Issuing Bank’s Fronting Exposure in accordance with the procedures set forth in Section 2.05(j).

 

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(b)          Defaulting
Lender Cure. If the Borrower, the Administrative Agent, each Swingline Lender and the Issuing Bank agree in writing that a
Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective
date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any
Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders
or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded
participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders in accordance with the Commitments (without
giving effect to Section 2.22(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments
will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was
a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected
parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder
arising from that Lender’s having been a Defaulting Lender.

 

(c)          New
Swingline Loans/Letters of Credit. So long as any Lender is a Defaulting Lender, (i) each Swingline Lenders shall not be required
to fund any Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline
Loan and (ii) the Issuing Bank shall not be required to issue, amend, extend, renew or increase any Letter of Credit unless it
is satisfied that it will have no Fronting Exposure after giving effect thereto.

 

ARTICLE
III

 

Representations and Warranties

 

The Borrower represents and warrants to the
Lenders that:

 

SECTION 3.01.         Organization;
Powers. Each of the Borrower and the Subsidiaries is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except
where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.

 

SECTION 3.02.         Authorization;
Enforceability. The Transactions to be entered into by each Loan Party are within such Loan Party’s corporate powers
and have been duly authorized by all necessary corporate and, if required, stockholder action. This Agreement has been duly executed
and delivered by the Borrower and constitutes, and each other Senior Loan Document to which any Loan Party is to be a party, when
executed and delivered by such Loan Party, will constitute, a legal, valid and binding obligation of the Borrower or such Loan
Party (as the case may be), enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

 

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SECTION 3.03.         Governmental
Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect and except
filings necessary to perfect Liens created under the Senior Loan Documents, (b) will not violate any applicable law or regulation
or the charter, by-laws or other organizational documents of the Borrower or any of the Subsidiaries or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture, agreement or other instrument evidencing or governing
Indebtedness or any other material agreement binding upon the Borrower or any Subsidiary or its assets, or give rise to a right
thereunder to require any payment to be made by the Borrower or any Subsidiary, and (d) will not result in the creation or imposition
of any Lien on any asset of the Borrower or any Subsidiary, except Liens created under the Senior Loan Documents and the Second
Priority Collateral Documents.

 

SECTION 3.04.         Financial
Condition; No Material Adverse Change. (a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet
and statements of income, stockholders equity and cash flows as of and for the fiscal year ended March 1, 2014, reported on by
Deloitte & Touche LLP. Such financial statements present fairly the financial position and results of operations and cash
flows of the Borrower and its Consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP.

 

(b)          Except
as disclosed (i) in the financial statements referred to in paragraph (a) above or the notes thereto, (ii) in the
Borrower’s report or Form 10-K for the fiscal year ended March 1, 2014 or (iii) on Schedule 3.04, after giving
effect to the Transactions, none of the Borrower or the Subsidiaries has, as of the 2015 Restatement Effective Date, any material
contingent liabilities, unusual long-term loan commitments or unrealized losses.

 

(c)          Since
March 1, 2014, there has been no material adverse change in the business, assets, operations, properties, condition (financial
or otherwise), or prospects of the Borrower and the Subsidiaries, taken as a whole.

 

SECTION 3.05.         Properties.
(a) Each of the Borrower and the Subsidiaries has good and marketable title to, or valid leasehold interests in, all its real and
personal property material to its business, except (i) for minor defects in title that do not interfere with its ability to conduct
its business as currently conducted or to utilize such properties for their intended purposes and (ii) as set forth on Schedule
3.05(a). All such real and personal property are free and clear of all Liens, other than Liens permitted by Section 6.02.

 

(b)          Each
of the Borrower and the Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Borrower and the Subsidiaries does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

 

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(c)          Schedule 3.05(c)
sets forth the address of every leased warehouse or distribution center in which inventory owned by the Borrower or any Subsidiary
is located as of the 2015 Restatement Effective Date.

 

SECTION 3.06.         Litigation
and Environmental Matters. (a) Except as set forth on Schedule 3.06(a), there are no actions, suits or proceedings by or before
any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting
the Borrower or any of the Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Effect or (ii) that involve any of the Senior Loan Documents or the Transactions.

 

(b)          Except
as set forth on Schedule 3.06(b) and except with respect to any other matters that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of the Subsidiaries (i) has failed
to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under
any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim
with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.

 

SECTION 3.07.         Compliance
with Laws and Agreements. Except as set forth on Schedule 3.07, each of the Borrower and the Subsidiaries is in compliance
with all laws, regulations and orders of any Governmental Authority applicable to it or its property (including, without limitation,
the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and all other material healthcare
laws and regulations) and all indentures, agreements and other instruments binding upon it or its property or assets, except where
the failure to be so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 3.08.         Investment
and Holding Company Status. Neither the Borrower nor any of the Subsidiaries is an “investment company” as defined
in, or subject to regulation under, the Investment Company Act of 1940.

 

SECTION 3.09.         Taxes.
Each of the Borrower and the Subsidiaries has timely filed or caused to be filed all United States Federal income Tax returns and
reports and all other material Tax returns and reports required to have been filed and has paid or caused to be paid all material
Taxes due pursuant to such returns or pursuant to any assessment received by the Borrower or any Subsidiary, except (i) where the
payment of any such Taxes is being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary,
as applicable, has set aside on its books adequate reserves and (ii) as set forth on Schedule 3.09. The charges, accruals and reserves
on the books of the Borrower and its Consolidated Subsidiaries in respect of Taxes or charges imposed by a Governmental Authority
are, in the opinion of the Borrower, adequate.

 

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SECTION 3.10.         ERISA.
No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other ERISA Events for which
liability is reasonably expected to result, could reasonably be expected to result in liability exceeding $50,000,000. The minimum
funding standards of ERISA and the Code with respect to each Plan have been satisfied. The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87)
did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $50,000,000 the fair
market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements reflecting such amounts, exceed by more than $50,000,000 the fair market value of the assets
of all such underfunded Plans.

 

SECTION 3.11.         Disclosure;
Accuracy of Information. (a) As of the 2015 Restatement Effective Date, none of the reports, financial statements, certificates
or other information, other than projections and other information of a general economic or industry-specific nature, furnished
by or on behalf of any Loan Party to any Agent or any Lender in connection with the negotiation of this Agreement or any other
Senior Loan Document or delivered hereunder or thereunder (as modified or supplemented by other information so furnished) contains
any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not materially misleading; provided that, with respect to projected financial
information, financial estimates, forecasts and other forward-looking information, the Borrower represents only that such information
was prepared in good faith based upon assumptions believed to be reasonable at the time.

 

(b)          Each
Borrowing Base Certificate that has been or will be delivered to each Borrowing Base Agent, the Administrative Agent or any Lender
is and will be complete and correct in all material respects.

 

SECTION 3.12.         Subsidiaries.
Schedule 3.12 sets forth the name of, and the ownership interest of the Borrower in, each Subsidiary and identifies each Subsidiary
that is a Subsidiary Loan Party, in each case as of the 2015 Restatement Effective Date. As of the 2015 Restatement Effective Date,
each of the Subsidiaries is an “Unrestricted Subsidiary” as defined in, and for all purposes of, the Effective Date
Indentures.

 

SECTION 3.13.         Insurance.
Schedule 3.13 sets forth a description of all liability, property and casualty insurance maintained by or on behalf of the Borrower
and the Subsidiaries as of the 2015 Restatement Effective Date. As of the 2015 Restatement Effective Date, all premiums in respect
of such insurance have been paid. The Borrower and the Subsidiaries have insurance in such amounts and covering such risks and
liabilities as are in accordance with normal industry practice and as required by the Senior Loan Documents. The Borrower reasonably
believes that the insurance maintained by or on behalf of the Borrower and the Subsidiaries is adequate.

 

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SECTION 3.14.         Labor
Matters. Except as set forth on Schedule 3.14, as of the 2015 Restatement Effective Date, there are no strikes, lockouts or
slowdowns against the Borrower or any Subsidiary pending or, to the knowledge of the Borrower, threatened which could reasonably
be expected to result in a Material Adverse Effect. Except as set forth on Schedule 3.14, the hours worked by and payments made
to employees of the Borrower and the Subsidiaries have not been in violation in any material respect of the Fair Labor Standards
Act or any other applicable Federal, state, local or foreign law dealing with such matters. Except as set forth on Schedule 3.14,
all payments due from the Borrower or any Subsidiary, or for which any claim may be made against the Borrower or any Subsidiary,
on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the
books of the Borrower or such Subsidiary. Except as set forth on Schedule 3.14, the consummation of the Transactions will not give
rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to
which the Borrower or any Subsidiary is bound.

 

SECTION 3.15.         Solvency.
Immediately after the consummation of the Transactions to occur on the 2015 Restatement Effective Date (including the making of
each Loan made on the 2015 Restatement Effective Date and after giving effect to the application of the proceeds of such Loans),
(a) the fair value of the assets of the Borrower and the other Loan Parties, taken as a whole, at a fair valuation, will exceed
their debts and liabilities, subordinated, contingent or otherwise; (b) the present fair saleable value of the property of
the Borrower and the other Loan Parties, taken as a whole, will be greater than the amount that will be required to pay the probable
liability of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become
absolute and matured; (c) the Borrower and the other Loan Parties taken as a whole, will be able to pay their debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) the Borrower and
the other Loan Parties will not have unreasonably small capital with which to conduct the business in which they are engaged as
such business is now conducted and is proposed to be conducted following the 2015 Restatement Effective Date.

 

SECTION 3.16.         Federal
Reserve Regulations. (a) Neither the Borrower nor any Subsidiary is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of buying or carrying Margin Stock.

 

(b)          No
part of the proceeds of any Loan or any Letter of Credit will be used by the Borrower or any Subsidiary, whether directly or indirectly,
and whether immediately, incidentally or ultimately, for any purpose that entails a violation of, or that is inconsistent with,
the provisions of Regulation T, U or X of the Board.

 

SECTION 3.17.         Security
Interests. (a) The Senior Subsidiary Security Agreement is effective to create in favor of the Collateral Agent, for the ratable
benefit of the Senior Secured Parties, a legal, valid and enforceable security interest in the Senior Collateral subject to such
agreement and, when financing statements in appropriate form are filed in the offices specified on Schedule 6 to the Perfection
Certificate, such security interest shall constitute a fully perfected Lien on, and security interest in, all right, title and
interest of the grantors thereunder in the Senior Collateral, to the extent perfection can be obtained by filing Uniform Commercial
Code financing statements, in each case prior and superior in right to any other Person to the extent perfection can be obtained
by filing Uniform Commercial Code financing statements, other than with respect to the rights of Persons pursuant to Liens expressly
permitted by Section 6.02.

 

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SECTION 3.18.         Use
of Proceeds. The Borrower will use the proceeds of the Loans and will request the issuance of Letters of Credit only for the
purposes specified in the preamble to this Agreement and set forth in Section 5.10.

 

SECTION 3.19.         Anti-Corruption
Laws and Sanctions. The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance
by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and
applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and, to the knowledge of the
Borrower, its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.
None of (a) the Borrower, any Subsidiary or, to the knowledge of the Borrower or such Subsidiary, any of their respective directors,
officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will act in any
capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person or is located in a Sanctioned
Country. The Transactions will not violate Anti-Corruption Laws or applicable Sanctions.

 

ARTICLE
IV

 

Conditions

 

SECTION 4.01.         2015
Restatement Effective Date. Without affecting the rights of the Borrower or any Subsidiary under the Original Agreement at
all times prior to the 2015 Restatement Effective Date, the amendment and restatement in the form hereof of the Original Agreement
and the obligations of the Lenders to make Loans and acquire participations in Letters of Credit and Swingline Loans and of the
Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on which the conditions set forth
in Section 1.3 of the 2015 Amendment and Restatement Agreement shall have been satisfied.

 

It is understood and agreed that no term of
the amendment and restatement contemplated hereby shall be effective until the 2015 Restatement Effective Date occurs, and that
the Original Agreement shall continue in full force and effect without regard to the amendment and restatement contemplated hereby
until the 2015 Restatement Effective Date.

 

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SECTION 4.02.         Each
Credit Event. The obligation of each Revolving Lender to make a Revolving Loan on the occasion of any Revolving Borrowing after
the 2015 Restatement Effective Date, and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit after the 2015
Restatement Effective Date, is subject to receipt of the request therefore in accordance herewith and to the satisfaction of the
following conditions (each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit (for purposes of
this Section, an “issuance”) shall be deemed to constitute a representation and warranty by Borrower on the date thereof
as to the matters specified in paragraphs (a), (b) and (c) of this Section):

 

(a)          the
representations and warranties of the Loan Parties contained in each Senior Loan Document are true and correct in all material
respects on and as of the date of such Borrowing or issuance, before and after giving effect to such Borrowing or issuance and
to the application of the proceeds therefrom, as though made on and as of such date (except to the extent any such representation
or warranty expressly relates to an earlier date, in which case such representation and warranty shall have been true and correct
in all material respects as of such earlier date);

 

(b)          no
event has occurred and is continuing, or would result from such Borrowing or issuance or from the application of the proceeds therefrom,
that constitutes a Default or an Event of Default and such Borrowing or issuance would not result in a violation of the amount
of secured Indebtedness permitted under the Second Priority Debt Documents;

 

(c)          after
giving effect to such Borrowing or issuance the Borrowing Base Amount shall be equal to or greater than the sum of (i) the total
Revolving Exposures, (ii) the total Other Revolving Exposures, (iii) the outstanding Term Loans and (iv) the outstanding Additional
Senior Debt; and

 

(d)          in
the case of the first Borrowing or issuance that would result in the aggregate Revolving Exposures of the Revolving Lenders exceeding
$3,000,000,000, the 8.00% Secured Note Repayment Date shall have occurred or shall occur, under arrangements satisfactory to the
Administrative Agent, on the date of such Borrowing or issuance.

 

ARTICLE
V

 

Affirmative Covenants

 

Until the Commitments have expired or been
terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters
of Credit shall have expired, terminated or been cash collateralized and all LC Disbursements shall have been reimbursed, the Borrower
covenants and agrees with the Lenders that:

 

SECTION 5.01.         Financial
Statements and Other Information. The Borrower will furnish to the Administrative Agent, the Borrowing Base Agent (in the case
of paragraph (f) below) and (except in the case of paragraph (h) below) each Lender:

 

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(a)          as
soon as available and in any event within 105 days (or such earlier date that is 10 days after the then-current filing
deadline for the Borrower’s Annual Report on Form 10-K) after the end of each fiscal year of the Borrower, its audited consolidated
balance sheet and related statements of income and cash flows as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by Deloitte & Touche LLP or another registered independent
public accounting firm of recognized national standing (without a “going concern” or like qualification or exception
and without any material qualification or exception as to the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial position, results of operations and cash flows of the Borrower
and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP;

 

(b)          as
soon as available and in any event within 50 days (or such earlier date that is five days after the then-current filing deadline
for the Borrower’s Quarterly Report on Form 10-Q) after the end of each of the first three fiscal quarters of each fiscal
year of the Borrower, its consolidated balance sheet as of the end of such fiscal quarter and related statements of income for
such fiscal quarter and of income and cash flows for the then elapsed portion of such fiscal year, setting forth in each case in
comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of)
the previous fiscal year;

 

(c)          concurrently
with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer (i) certifying
as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed
to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating (x) compliance with Section 6.08(c)
and (y) the Borrower’s ratio under Section 6.12, (iii) stating whether any change in GAAP or in the application
thereof has occurred since the date of the Borrower’s audited financial statements referred to in Section 3.04 and,
if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate,
(iv) identifying any Subsidiary formed or acquired since the end of the fiscal quarter immediately preceding the most recent
fiscal quarter covered by such financial statements, (v) identifying any change in a Subsidiary Loan Party’s name, form
of organization or jurisdiction of organization, including as a result of any merger transaction, since the end of the fiscal quarter
immediately preceding the most recent fiscal quarter covered by such financial statements, (vi) setting forth the aggregate
amount of Optional Debt Repurchases made by the Borrower during the most recent fiscal quarter covered by such financial statements,
identifying the Indebtedness repurchased, redeemed, retired or defeased and specifying the provisions of Section 6.08(b) or (c)
pursuant to which each such Optional Debt Repurchase was effected and quantifying the amounts effected under each such provision,
(vii) setting forth the amount and type of Indebtedness issued or incurred and Securitizations (or increases in the amounts
thereof) and Factoring Transactions consummated during the most recent fiscal quarter covered by such financial statements, (viii) identifying,
with respect to all Indebtedness of the Borrower and the Subsidiaries outstanding on the date of the most recent balance sheet
included in such financial statements, the clause of Section 6.01(a) pursuant to which such Indebtedness is then permitted
to be outstanding, (ix) setting forth the amount of Restricted Payments made during the most recent fiscal quarter covered
by such financial statements and the provision of Section 6.08(a) pursuant to which such Restricted Payments were made, and
(x) setting forth the aggregate sale price of Eligible Script Lists sold since the most recent date on which the Eligible
Script Lists Value was provided to the Lenders in the event aggregate sale price for all Eligible Script Lists sold since such
date of determination exceeds 5% of the most recently determined Eligible Script Lists Value;

 

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(d)          concurrently
with any delivery of financial statements under clause (a) above, a certificate of the accounting firm that reported on such
financial statements (i) stating whether they obtained knowledge during the course of their examination of such financial statements
of any Default and (ii) confirming the calculations set forth in the officer’s certificate delivered simultaneously therewith
pursuant to clause (c)(ii) above (which certificate may be limited to the extent required by accounting rules or guidelines);

 

(e)          within
three Business Days after the end of each fiscal month of the Borrower, a certificate of a Financial Officer setting forth in reasonable
detail a description of each disposition of assets not in the ordinary course of business for which the book value or fair market
value of the assets of the Borrower or the Subsidiaries disposed or the consideration received therefor was greater than $10,000,000;

 

(f)          within
14 Business Days after the end of each fiscal month of the Borrower, a Borrowing Base Certificate showing the Borrowing Base Amount
as of the close of business on the last day of such fiscal month, certified as complete and correct by a Financial Officer; provided
that a Borrowing Base Certificate shall be delivered by the Borrower to the Administrative Agent, the Borrowing Base Agent and
each Lender within four Business Days after the end of a fiscal week of the Borrower if (i) at any time during such fiscal week
the Revolver Availability is less than (x) prior to the 8.00% Secured Note Repayment Date, $200,000,000 or (y) on and after the
8.00% Secured Note Repayment Date, $250,000,000, or (ii) on each of any three consecutive Business Days the last of which occurs
in such fiscal week, Revolving Availability is less than (x) in the case of days prior to the 8.00% Secured Note Repayment Date,
$300,000,000, and (y) in the case of days on and after the 8.00% Secured Note Repayment Date, $365,000,000 (in each case, with
the amount with respect to Eligible Inventory, Eligible Accounts Receivable and Eligible Credit Card Accounts Receivable included
in the Borrowing Base Amount shown on such Borrowing Base Certificate delivered under this proviso being the amount computed as
of the close of business on the last day of the Borrower’s most recent fiscal week for which such amount is available, which
computation shall be completed within four Business Days after the end of each fiscal week of the Borrower);

 

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(g)         no
later than 60 days following the end of each fiscal year of the Borrower (or, in the reasonable discretion of the Administrative
Agent and the Borrowing Base Agent, no later than 30 days thereafter), forecasts for the Borrower and its Consolidated Subsidiaries
of (i) quarterly consolidated balance sheet data and related consolidated statements of income and cash flows for each quarter
in the next succeeding fiscal year, (ii) consolidated balance sheet data and related consolidated statements of income and
cash flows for each of the five fiscal years immediately following such fiscal year and (iii) month-end Revolver Availability for
each of the 12 months in the next succeeding fiscal year;

 

(h)         not
later than 30 days prior to the commencement of each fiscal year, a certificate of a Financial Officer setting forth the end dates
of each of the fiscal quarters in such fiscal year;

 

(i)          promptly
after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed
by the Borrower or any Subsidiary with the SEC, or with any national securities exchange, or distributed by the Borrower to its
shareholders generally, as the case may be; and

 

(j)          promptly
following any request therefor, such other information regarding the financial condition, business or identity of the Borrower
or any Subsidiary, or compliance with the terms of any Senior Loan Document, as any Agent, at the request of any Lender, may reasonably
request, including any information to be provided pursuant to Section 9.17.

 

Information required to be delivered pursuant to clauses (a),
(b) and (i) shall be deemed to have been delivered on the date on which the Borrower provides notice to the Lenders that such information
has been posted on the Borrower’s website on the Internet at www.riteaid.com, at www.sec.gov/edgar/searchedgar/webusers.htm
or at another website identified in such notice and accessible by the Lenders without charge; provided that (i) such
notice may be included in a certificate delivered pursuant to clause (c) and (ii) the Borrower shall deliver paper copies
of the information referred to in clauses (a), (b) and (i) to any Lender which requests such delivery.

 

SECTION 5.02.         Notices
of Material Events. The Borrower will furnish to the Administrative Agent, the Borrowing Base Agent and each Lender prompt
written notice after any officer of the Borrower obtains knowledge of any of the following:

 

(a)          the
occurrence of any Default;

 

(b)          the
filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting
the Borrower or any Affiliate thereof that could reasonably be expected to result in a Material Adverse Effect;

 

(c)          the
occurrence of any ERISA Event;

 

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(d)          any
Lien (other than Permitted Encumbrances and security interests created under any Senior Loan Document, Second Priority Debt Document
or security agreement relating to Permitted Split-Priority Term Loan Debt) on any material portion of the Senior Collateral;

 

(e)          the
occurrence of any other event which could reasonably be expected to have a material adverse effect on the security interests created
by the Senior Loan Documents or on the aggregate value of the Senior Collateral; and

 

(f)          any
other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

 

Each notice delivered under this Section shall be accompanied
by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

 

SECTION 5.03.         Information
Regarding Collateral. (a) The Borrower will furnish to the Administrative Agent and the Borrowing Base Agent prompt written
notice of any change (i) in any Loan Party’s corporate name, (ii) in the location of any Loan Party’s jurisdiction
of incorporation or organization, (iii) in any Loan Party’s form of organization or (iv) in any Loan Party’s Federal
Taxpayer Identification Number or other identification number assigned by such Loan Party’s jurisdiction of incorporation
or formation. The Borrower agrees not to effect or permit any change referred to in the preceding sentence unless all filings have
been made under the Uniform Commercial Code or otherwise that are required in order for the Collateral Agent to continue at all
times following such change to have a valid, legal and perfected security interest in all the Senior Collateral. The Borrower also
agrees promptly to notify the Agents if any material portion of the Senior Collateral is damaged or destroyed.

 

(b)          Each
year, at the time of delivery of annual financial statements with respect to the preceding fiscal year pursuant to clause (a) of
Section 5.01, the Borrower shall deliver to the Agents a certificate of the chief legal officer of the Borrower (i) setting forth
the information required pursuant to Section 1 of the Perfection Certificate or confirming that there has been no change in
such information since the date of the Perfection Certificate delivered on the 2015 Restatement Effective Date or the date of the
most recent certificate delivered pursuant to this Section and (ii) certifying that all Uniform Commercial Code financing statements
(including fixture filings, as applicable) or other appropriate filings, recordings or registrations, including all refilings,
rerecordings and reregistrations, containing a description of the Senior Collateral have been filed of record in each governmental,
municipal or other appropriate office in each jurisdiction identified pursuant to clause (i) above to the extent necessary to protect
and perfect the security interests under the Senior Subsidiary Security Agreement for a period of not less than 18 months after
the date of such certificate (except as noted therein with respect to any continuation statements to be filed within such period).

 

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SECTION 5.04.         Existence;
Conduct of Business. Except as otherwise permitted by this Agreement, the Borrower will continue, and will cause each Subsidiary
to continue, to engage in business of the same general type as now conducted by the Borrower and the Subsidiaries. The Borrower
will, and will cause each of the Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks
and trade names, in each case material to the conduct of its business; provided that the foregoing shall not prohibit any
merger, consolidation, liquidation, dissolution or sale of assets permitted under Section 6.03.

 

SECTION 5.05.         Payment
of Obligations. The Borrower will, and will cause each of the Subsidiaries to, pay its Indebtedness and other obligations,
including Tax liabilities, which, if unpaid, could result in a material Lien on any of their properties or assets, before the same
shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance
with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material
Adverse Effect.

 

SECTION 5.06.         Maintenance
of Properties. The Borrower will, and will cause each of the Subsidiaries to, keep and maintain all property material to the
conduct of its business in good working order and condition, ordinary wear and tear excepted.

 

SECTION 5.07.         Insurance.
(a) The Borrower will, and will cause each of the Subsidiaries to, maintain (either in the name of the Borrower or in such Subsidiary’s
own name), with financially sound and reputable insurance companies insurance in such amounts (with no greater risk retention)
and against such risks as are customarily maintained by companies of established repute engaged in the same or similar businesses
operating in the same or similar locations. The Borrower will furnish to the Lenders, upon request of the Agents, information in
reasonable detail as to the insurance so maintained.

 

(b)          The
Borrower will, and will cause each of the Subsidiaries to, maintain such insurance in a coverage amount of not less than 90% of
the coverage amount as of the 2015 Restatement Effective Date, with deductibles, risks covered and other provisions (other than
the amount of premiums) not materially less favorable to the Borrower and the Subsidiaries as of the 2015 Restatement Effective
Date.

 

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(c)          The
Borrower will, and will cause each of the Subsidiary Loan Parties to, (i) cause all such policies to be endorsed or otherwise
amended to include a “standard” or “New York” lender’s loss payable endorsement, in form and substance
satisfactory to the Agents, which endorsement shall provide that, if the insurance carrier shall have received written notice from
the Administrative Agent of the occurrence of an Event of Default, the insurance carrier shall pay all proceeds otherwise payable
to the Borrower and any other Loan Party under such policies directly to the Collateral Agent for application pursuant to the Collateral
Trust and Intercreditor Agreement; (ii) cause all such policies to provide that none of the Borrower, the Administrative Agent,
the Collateral Agent, any Borrowing Base Agent or any other party shall be a coinsurer thereunder and to contain a “Replacement
Cost Endorsement”, without any deduction for depreciation, and such other provisions as the Agents may reasonably require
from time to time to protect their interests; (iii) deliver broker’s certificates to the Collateral Agent naming it
as “additional insured” under the applicable policy; (iv) cause each such policy to provide that it shall not
be canceled or not renewed by reason of nonpayment of premium upon not less than 10 days’ prior written notice thereof by
the insurer to the Administrative Agent (giving the Administrative Agent the right to cure defaults in the payment of premiums)
or for any other reason upon not less than 30 days’ prior written notice thereof by the insurer to the Administrative Agent;
and (v) deliver to the Administrative Agent, before the cancellation or nonrenewal of any such policy of insurance, a copy
of a renewal or replacement policy (or other evidence of renewal of a policy previously delivered to the Administrative Agent),
together with (A) evidence reasonably satisfactory to the Agents of payment of the premium therefor and of the inclusion in such
renewal or replacement policy of the endorsements and provisions required by clauses (i), (ii) and (iv) above and (B) the broker’s
certificate with respect to such renewal or replacement policy required by clause (iii) above.

 

(d)          In
connection with the covenants set forth in this Section, it is agreed that:

 

(i)          none
of the Agents, the Lenders, or their agents or employees shall be liable for any payment of the premiums for such insurance policies
or any loss or damage insured by the insurance policies required to be maintained under this Section, and (A) the Borrower and
each Subsidiary Loan Party shall look solely to their insurance companies or any other parties other than the aforesaid parties
for the recovery of such loss or damage and (B) such insurance companies shall have no rights of subrogation against the Agents,
the Lenders or their agents or employees. If, however, the insurance policies do not provide waiver of subrogation rights against
such parties, as required above, then the Borrower hereby agrees, to the extent permitted by law, to waive its right of recovery,
if any, against the Agents, the Lenders and their agents and employees; and

 

(ii)         the
designation of any form, type or amount of insurance coverage by the Agents or the Required Lenders under this Section shall in
no event be deemed a representation, warranty or advice by the Agents or the Lenders that such insurance is adequate for the purposes
of the business of the Borrower and the Subsidiaries or the protection of their properties.

 

(e)          The
Borrower will, and will cause each of the Subsidiaries to, permit any representatives that are designated by any Borrowing Base
Agent to inspect the insurance policies maintained by or on behalf of the Borrower and the Subsidiaries and inspect books and records
related thereto and any properties covered thereby. The Borrower shall pay the reasonable fees and expenses of any representatives
retained by a the Borrowing Base Agent to conduct any such inspection.

 

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SECTION 5.08.         Books
and Records; Inspection and Audit Rights; Collateral and Borrowing Base Reviews. (a) The Borrower will, and will cause each
of the Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings
and transactions in relation to its business and activities. The Borrower will, and will cause each of the Subsidiaries to, permit
any representatives designated by any Lender (at such Lender’s expense, unless a Default has occurred and is continuing,
in which case at the Borrower’s expense), and after such Lender has consulted the Administrative Agent with respect thereto,
to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested.

 

(b)          The
Borrower will, and will cause each of the Subsidiaries to, permit any representatives designated by the Borrowing Base Agent (including
any consultants, field examiners, accountants, lawyers and appraisers retained by the Borrowing Base Agent) to conduct (i) (A)
one field examination of the Senior Collateral in any fiscal year of the Borrower and (B) an additional field examination of the
Senior Collateral during such fiscal year if the Revolver Availability is at any time during such fiscal year less than or equal
to $500,000,000, (ii) an appraisal of the Borrower’s computation of the assets included in the Borrowing Base Amount
(A) once in each fiscal year of the Borrower and (B) in addition, on a second occasion during such fiscal year if the Revolver
Availability is at any time during such fiscal year less than or equal to $500,000,000, (iii) an appraisal of the Eligible Script
Lists (A) once in each fiscal year of the Borrower and (B) in addition, on a second occasion during such fiscal year if the Revolver
Availability is at any time during such fiscal year less than or equal to $500,000,000 and (iv) other evaluations and appraisals
of the Borrower’s computation of the Borrowing Base Amount and the assets included in therein, all at such reasonable times
and as often as reasonably requested or at any time if a Default shall have occurred and be continuing. The Borrower shall pay
the reasonable fees and expenses of any representatives retained by the Borrowing Base Agent to conduct any such evaluation or
appraisal (it being understood that the third party representatives retained by the Borrowing Base Agent shall conduct any such
evaluation or appraisal on behalf of each Borrowing Base Agent and no individual Borrowing Base Agent may retain its own representative
to conduct any such evaluation or appraisal). The Administrative Agent shall promptly deliver to the Lenders copies of all such
appraisals and other information provided to the Borrower in connection with such evaluations and appraisals; provided that
in any event the Administrative Agent shall provide the other Borrowing Base Agents with copies of all such appraisals and other
information provided to the Borrower in connection with such evaluations and appraisals within three Business Days after the date
thereof.

 

(c)          The
Borrower will, and will cause each of the Subsidiaries to, in connection with any evaluation and appraisal relating to the computation
of the Borrowing Base Amount, maintain such additional reserves (for purposes of computing the Borrowing Base Amount) in respect
of Eligible Accounts Receivable and Eligible Inventory and make such other adjustments to its parameters for including Eligible
Accounts Receivable, Eligible Inventory and Eligible Script Lists in the Borrowing Base Amount as the Borrowing Base Agent shall
require based upon the results of such evaluation and appraisal in its commercially reasonable judgment to reflect Borrowing Base
Factors.

 

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SECTION 5.09.         Compliance
with Laws. The Borrower will, and will cause each of the Subsidiaries to, comply in all material respects with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its property, including all Environmental Laws, HIPAA
and all other material healthcare laws and regulations, except where the necessity of compliance therewith is contested in good
faith by appropriate proceedings or to the extent that any failures so to comply, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect. The Borrower will maintain in effect and enforce policies and procedures designed
to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption
Laws and applicable Sanctions.

 

SECTION 5.10.         Use
of Proceeds and Letters of Credit. (a) [Intentionally omitted].

 

(b)          The
proceeds of the Revolving Loans, Swingline Loans and loans under the Incremental Facilities made on or after the 2015 Restatement
Effective Date will be used by the Borrower as set forth in the preamble and for general corporate purposes, including:

 

(i)          the
repayment of the principal of and accrued and unpaid interest on all outstanding Revolving Loans, Swingline Loans and LC Disbursements
under the Original Agreement as of the 2015 Restatement Effective Date,

 

(ii)         the
repayment in full of the Tranche 7 Term Loans on the 2015 Restatement Effective Date;

 

(iii)        loans
or other transfers to Rite Aid Hdqtrs. Corp. for purposes of financing inventory purchases pursuant to the Intercompany Inventory
Purchase Agreement and advancing funds to Subsidiary Loan Parties for their general corporate purposes, including working capital,
Consolidated Capital Expenditures and Business Acquisitions permitted pursuant to Section 6.04;

 

(iv)        transfers
to an operating account for the payment of operating expenses (including rent, utilities, taxes, wages, repair and similar expenses)
of, and intercompany Investments permitted under Section 6.04 in, the Borrower or any Subsidiary Loan Party;

 

(v)         payment
by the Borrower of principal, interest, fees and expenses with respect to its Indebtedness when due (including associated costs,
fees and expenses) and payment of the Borrower’s taxes, administrative, operating and other expenses;

 

(vi)        dividends
permitted to be made in respect of the Equity Interests listed on Schedule 6.08(a) or described in Section 6.08(a);

 

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(vii)       repurchase
shares of the Borrower’s Preferred Stock pursuant to Section 6.08(a);

 

(viii)      payment
of principal, interest, fees and expenses with respect to Third Party Interests in accordance with the terms thereof;

 

(ix)         the
financing of the purchase or repayment of the 2020 8.00% Notes and other Optional Debt Repurchases, permitted capital expenditures,
the repurchase of the Borrower’s and/or its Subsidiaries’ (including Rite Aid Lease Management Company’s) Preferred
Stock and permitted Restricted Payments; and

 

(x)          other
Business Acquisitions and Investments made in accordance with the terms hereof.

 

(c)          Letters
of Credit will be used solely to support payment obligations of the Borrower and the Subsidiaries incurred in the ordinary course
of business.

 

(d)          No
proceeds of Loans will be used to prepay commercial paper prior to the maturity thereof and no such proceeds will be used, directly
or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any Margin Stock. The Borrower
will ensure that no such use of Loan proceeds and no issuance of Letters of Credit will entail any violation of Regulation T, U
or X of the Board.

 

(e)          The
Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries
and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of
Credit (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything
else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating
any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C) in any manner that
would result in the violation of any Sanctions applicable to any party hereto.

 

SECTION 5.11.         Additional
Subsidiaries. If any additional wholly-owned Domestic Subsidiary is formed or acquired after the Second Restatement Effective
Date, and if such Subsidiary is required to become a Subsidiary Loan Party hereunder, the Borrower will, within three Business
Days after such Subsidiary is formed or acquired, (or if the Borrower elects to cause such Subsidiary to become a Subsidiary Loan
Party, the Borrower will) notify the Administrative Agent, the Borrowing Base Agent the Lenders thereof and cause the Collateral
and Guarantee Requirement to be satisfied with respect to such Subsidiary, including each Securitization Vehicle which is a Domestic
Subsidiary, but excluding any Subsidiary that engages solely in the pharmacy benefits management business. Notwithstanding any
other provision of this Agreement, (i) no Domestic Subsidiary listed on Schedule 5.11 shall be required to become a Subsidiary
Loan Party (it being understood and agreed that Schedule 5.11 shall not include any Securitization Vehicle that is a Domestic Subsidiary)
and (ii) no Domestic Subsidiary shall be required to become a Subsidiary Loan Party unless and until such time as such Subsidiary
has assets in excess of $1,000,000 or acquires assets in excess of $1,000,000 or has revenue in excess of $500,000 per annum.

 

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SECTION 5.12.         Further
Assurances. The Borrower will, and will cause each Subsidiary Loan Party to, execute any and all further documents, financing
statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements,
fixture filings, deeds of trust and other documents), which may be required under any applicable law, or which the Collateral Agent,
the Borrowing Base Agent or the Required Lenders may reasonably request, to cause the Collateral and Guarantee Requirement to be
and remain satisfied, all at the expense of the Loan Parties. The Borrower also agrees to provide to the Collateral Agent or the
Borrowing Base Agent, from time to time upon request by either of them, evidence reasonably satisfactory to the Collateral Agent
or the Borrowing Base Agent, as applicable, as to the perfection and priority of the Liens created or intended to be created by
the Senior Collateral Documents.

 

SECTION 5.13.         Subsidiaries.
The Borrower will cause all of the Subsidiaries that own Eligible Accounts Receivable, Eligible Inventory or Eligible Script Lists
to be and at all times remain “Unrestricted Subsidiaries” as defined in, and for all purposes of, each of the Effective
Date Indentures and will deliver such documents to the trustees under each such Effective Date Indenture and take such actions
thereunder as may be necessary to effect the foregoing.

 

SECTION 5.14.         Intercompany
Transfers. The Borrower shall maintain accounting systems capable of tracing intercompany transfers of funds
and other assets.

 

SECTION 5.15.         Inventory
Purchasing. (a) The Borrower shall, and shall cause each Subsidiary party to the Intercompany Inventory Purchase Agreement
to, at all times maintain in all material respects the vendor inventory purchasing system and the intercompany inventory purchasing
system in accordance with the terms of the Intercompany Inventory Purchase Agreement. The Borrower shall cause each Subsidiary
which owns or acquires any Senior Collateral consisting of inventory to be party to the Intercompany Inventory Purchase Agreement.

 

(b)          The
Borrower shall not permit any Operating Subsidiary to purchase any Inventory from any Direct Delivery Vendor other than (i) the
acquisition of inventory from McKesson Corporation (or any Persons that replace McKesson Corporation, in whole or in part, and
sell or otherwise provide inventory substantially similar to inventory sold or otherwise provided by McKesson Corporation) consistent
with past practice and (ii) food-stuffs, beverages, periodicals, greeting cards and similar items which are either paid for in
cash substantially concurrently with the time of delivery or otherwise consistent with past practice.

 

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SECTION 5.16.         Cash
Management System. (a) The Borrower will cause each Subsidiary Loan Party to at all times maintain a Cash Management System
that complies with Schedule 3 of the Senior Subsidiary Security Agreement. The Borrower will cause each Subsidiary Loan Party to
comply with each obligation thereof under the Cash Management System. The Borrower will cause each Subsidiary Loan Party to comply
with each of its obligations under the Cash Management System, and shall cause each Subsidiary Loan Party to use its best efforts
to cause any applicable third party to effectuate the Cash Management System.

 

(b)          Each
party hereto authorizes the Administrative Agent and the Collateral Agent to (i) permit the creation by the Grantors of accounts
that receive payments in respect of the Securitization Assets and/or Factoring Assets (but not other payments) and (ii) release
the security interest of the Collateral Agent for the ratable benefit of the Senior Secured Parties in the Lockbox Account, the
Governmental Lockbox Account and/or any accounts created pursuant to clause (i) of this paragraph from the Cash Management System
and transfer control of the Lockbox Account, the Governmental Lockbox Account and/or any accounts created pursuant to clause (i)
of this paragraph to (A) any Person in connection with a Factoring Transaction permitted by this Agreement for so long as a Factoring
Transaction is ongoing or (B) any Person for the benefit of holders of Third Party Interests in respect of a Securitization permitted
by this Agreement for as long as any Third Party Interests are outstanding.

 

SECTION 5.17.         Termination
of Factoring Transactions. If an Event of Default has occurred and the Collateral Agent has elected to exercise any remedies
under the Senior Collateral Documents as a result thereof, the Borrower shall, and shall cause each of its Subsidiaries to, terminate
all existing Factoring Transactions and cease to engage in any further Factoring Transactions; provided, however,
that neither the Borrower nor any such Subsidiary shall be required hereby to repurchase any Factoring Assets previously sold,
transferred or otherwise conveyed pursuant to any such Factoring Transaction.

 

ARTICLE
VI

 

Negative Covenants

 

Until the Commitments have expired or terminated
and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit
have expired, terminated or been cash collateralized and all LC Disbursements shall have been reimbursed, the Borrower covenants
and agrees with the Lenders that:

 

SECTION 6.01.         Indebtedness;
Certain Equity Securities. (a) The Borrower will not, and will not permit any Subsidiary to, create, issue, incur, assume or
permit to exist any Indebtedness, any Attributable Debt in respect of any Sale and Leaseback Transaction, any Third Party Interests
or any Disqualified Preferred Stock except:

 

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(i)          (A)
Indebtedness under the Senior Loan Documents (including Indebtedness incurred pursuant to any Refinancing Amendment executed in
accordance with Section 6.01(c)) and, in each case, Refinancing Indebtedness in respect thereof (including (x) Refinancing
Indebtedness in respect of Revolving Commitments or Other Revolving Commitments and (y) Refinancing Indebtedness consisting
of Permitted First Priority Debt) and (B) Existing Additional Senior Debt, Permitted First Priority Debt and Refinancing Indebtedness
in respect thereof (including Indebtedness under an Incremental Senior Debt Refinancing Facility incurred pursuant to an Incremental
Facility Amendment entered into pursuant to Section 2.21);

 

(ii)         unsecured
Indebtedness of the Borrower that is not Guaranteed by any Subsidiary, that does not mature or require scheduled payments of principal
prior to the date that is 90 days after the Latest Maturity Date, and that has covenants and events of default which are determined
in good faith by the senior management of the Borrower to be on market terms, and Refinancing Indebtedness issued in respect of
such Indebtedness;

 

(iii)        Indebtedness
of the Borrower and the Subsidiaries in respect of intercompany Investments permitted under Section 6.04; provided that
such Indebtedness is subordinated to the Senior Loan Obligations pursuant to terms substantially the same as those forth on Annex 2
hereto;

 

(iv)        Existing
Non-Guaranteed Indebtedness;

 

(v)         Existing
Second Priority Debt;

 

(vi)        Existing
Guaranteed Unsecured Indebtedness;

 

(vii)       
Permitted Second Priority Debt and Permitted Split-Priority Term Loan Debt incurred after the 2013 Restatement Effective
Date in an aggregate principal amount, together with the aggregate principal amount of Indebtedness incurred pursuant to clause
(viii) of this Section 6.01(a), not in excess of $1,500,000,000 at any time outstanding; provided that the aggregate principal
amount of Permitted Second Priority Debt and Permitted Split-Priority Term Loan Debt incurred under this clause which matures or
requires scheduled payments of principal prior to the date that is 90 days after the Latest Maturity Date in effect at the time
such Indebtedness is incurred or issued, together with the aggregate principal amount of any (x) Permitted Unsecured Indebtedness
which matures or requires scheduled payments of principal prior to the date that is 90 days after the Latest Maturity Date in effect
at the time such Indebtedness is incurred and (y) Disqualified Preferred Stock which is subject to potential mandatory redemption
or repurchase prior to the date that is 90 days after the Latest Maturity Date in effect at the time such Disqualified Preferred
Stock is issued, in each case incurred or issued under clause (viii) of this Section 6.01(a), shall not exceed $750,000,000 at
any time outstanding;

 

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(viii)      
Permitted Unsecured Indebtedness and Disqualified Preferred Stock incurred or issued after the 2013 Restatement Effective Date
in an aggregate principal amount, together with the aggregate principal amount of Indebtedness incurred pursuant to clause (vii)
of this Section 6.01(a), not in excess of $1,500,000,000 at any time outstanding; provided that the aggregate principal
amount of (x) Permitted Unsecured Indebtedness which matures or requires scheduled payments of principal prior to the date that
is 90 days after the Latest Maturity Date in effect at the time such Indebtedness is incurred and (y) Disqualified Preferred Stock
issued under this clause which is subject to potential mandatory redemption or repurchase prior to the date that is 90 days after
the Latest Maturity Date in effect at the time such Disqualified Preferred Stock is issued, together with the aggregate principal
amount of any Permitted Second Priority Debt or Split-Priority Term Loan Debt incurred under clause (vii) of this Section 6.01(a)
which matures or requires schedule payments of principal prior to the date that is 90 days after the Latest Maturity Date in effect
at the time such Indebtedness is incurred or issued, shall not exceed $750,000,000 at any time outstanding;

 

(ix)         Indebtedness
secured by Liens on real property or Attributable Debt incurred in connection with Sale and Leaseback Transactions involving real
property; provided that any such Indebtedness, or any such lease entered into in connection with the Sale and Leaseback
Transaction giving rise to such Attributable Debt, shall have a maturity date or termination date, as the case may be, after the
date that is 90 days after the Latest Maturity Date in effect at the time such Indebtedness is incurred or issued; and provided
further that the aggregate principal amount of Indebtedness and Attributable Debt incurred pursuant to this clause (ix)
shall not exceed $600,000,000 at any time outstanding;

 

(x)          Refinancing
Indebtedness issued in respect of Indebtedness or Attributable Debt permitted under this clause (x) and clauses (iv), (v),
(vi) and (xv);

 

(xi)         endorsements
of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;

 

(xii)        Indebtedness
for borrowed money and Capital Lease Obligations existing on the Second Restatement Effective Date (other than Second Priority
Debt and Indebtedness referred to in clauses (ii), (iv), (v) and (vi) above) and set forth on Schedule 6.01(a)(xii),
but not any extensions, renewals, refinancings or replacements of such Indebtedness;

 

(xiii)       Capital
Lease Obligations with respect to leases existing on the Second Restatement Effective Date that were accounted for as operating
leases on the 2005 Restatement Effective Date and thereafter reclassified as Capital Lease Obligations;

 

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(xiv)      Indebtedness
(including Capital Lease Obligations) and Attributable Debt in respect of Sale and Leaseback Transactions in respect of equipment
financing or leasing in the ordinary course of business of the Borrower and the Subsidiaries consistent with past practices;

 

(xv)       purchase
money Indebtedness (including Capital Lease Obligations) and Attributable Debt in respect of Sale and Leaseback Transactions in
each case incurred to finance the acquisition, development, construction or opening of any Store after the Second Restatement Effective
Date; provided that such Indebtedness or Attributable Debt (A) is incurred not later than 24 months following the completion
of the acquisition, development, construction or opening of such Store, (B) any Lien securing such Indebtedness or Attributable
Debt is limited to the Store financed with the proceeds thereof, and (C) is incurred in connection with a transaction that
is substantially consistent with the business plan of the Borrower provided to the Lenders prior to the Second Restatement Effective
Date;

 

(xvi)      
(A) Third Party Interests issued by Securitization Vehicles in Securitizations permitted by Section 6.05, and Indebtedness
represented by such Third Party Interests, (B) Indebtedness of the Borrower or its Subsidiaries that may be deemed to exist solely
by virtue of a Factoring Transaction permitted by this Agreement and (C) Securitization Refinancing Indebtedness in respect of
any Third Party Interests or Indebtedness permitted by clause (A) above; provided that the aggregate amount of all Securitizations
plus the aggregate amount of Indebtedness permitted by clauses (B) and (C) shall not at any time exceed an amount equal
to (x) $950,000,000 minus (i) the then outstanding aggregate principal amount of all Incremental Securitization Refinancing Facilities;

 

(xvii)     Indebtedness
of Subsidiaries other than Securitization Vehicles that may be deemed to exist solely by virtue of Standard Securitization Undertakings
entered into by such Subsidiaries as sellers of Securitization Assets in Securitizations permitted by paragraph (xvi) above;

 

(xviii)    [intentionally
omitted];

 

(xix)       Guarantees
by Subsidiaries of the Existing Second Priority Debt (and Refinancing Indebtedness of Existing Second Priority Debt), the Existing
Guaranteed Unsecured Indebtedness (and Refinancing Indebtedness of Existing Guaranteed Unsecured Indebtedness) and any Indebtedness
under clause (vii) or (viii) of this Section 6.01(a); and

 

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(xx)        (i)
Indebtedness of a Person or Indebtedness attaching to assets of a Person that, in either case, becomes a Subsidiary or Indebtedness
attaching to assets that are acquired by the Borrower or any of its Subsidiaries, in each case after the 2014 Restatement Effective
Date as the result of a Business Acquisition, in an aggregate amount not to exceed $100,000,000 at any one time outstanding, provided
that (x) such Indebtedness existed at the time such Person became a Subsidiary or at the time such assets were acquired and,
in each case, was not created in anticipation thereof and (y) such Indebtedness is not guaranteed in any respect by the Borrower
or any Subsidiary (other than by any such person that so becomes a Subsidiary), and (ii) any Refinancing Indebtedness in respect
of any Indebtedness specified in subclause (i) above, provided that such Refinancing Indebtedness shall not be secured
by any assets other than the assets securing the Indebtedness being renewed, extended or refinanced and the proceeds of such assets
or supporting obligations in connection therewith.

 

(b)         The
Borrower will not, nor will it permit any Subsidiary to, issue any Preferred Stock or other preferred Equity Interests, other than
Qualified Preferred Stock of the Borrower, Third Party Interests issued by Securitization Vehicles, and other preferred Equity
Interests issued and outstanding on the Second Restatement Effective Date and set forth on Schedule 6.01(b).

 

(c)          At
any time after the 2015 Restatement Effective Date, the Borrower may obtain from any Lender or Additional Lender Refinancing Indebtedness
in respect of any Indebtedness outstanding under this Agreement or any outstanding Revolving Commitments or Other Revolving Commitments,
in the form of Term Loans, Term Commitments, Other Revolving Loans or Other Revolving Commitments (or, if all then outstanding
Revolving Commitments are to be replaced at such time, in the form of new Revolving Commitments), in each case pursuant to a Refinancing
Amendment; provided that (i) such Refinancing Indebtedness (A) will rank pari passu in right of payment and
of security (but without regard to control of remedies) with the other Loans, (B) if such Refinancing Indebtedness is a term
loan, amortize in a manner, and be subject to mandatory prepayments (if any) on terms, reasonably acceptable to the Administrative
Agent, (C) have such pricing (other than interest rate, which shall comply with the requirements set forth in the definition
of the term “Refinancing Indebtedness”) as may be agreed by the Borrower and the Administrative Agent and (D) otherwise
be treated hereunder no more favorably than, in the case of revolving facilities, the Revolving Loans and Revolving Commitments,
and, in the case of term loans, any outstanding Term Loans; provided that the terms and provisions applicable to such Refinancing
Indebtedness may provide for additional or different financial or other covenants applicable only during periods after the Latest
Maturity Date that is in effect on the date such Refinancing Indebtedness is issued, incurred or obtained. The effectiveness of
any Refinancing Amendment shall be subject to the satisfaction on the date thereof of each of the conditions set forth in Section 4.02.
Any Refinancing Amendment may provide for the issuance of Letters of Credit for the account of the Borrower, or the provision to
the Borrower of Swingline Loans, in each case on terms substantially equivalent to the terms applicable to Letters of Credit and
Swingline Loans under the Revolving Commitments, pursuant to any Other Revolving Commitments established thereby. The Administrative
Agent shall promptly notify each Lender as to the effectiveness of each Refinancing Amendment. Each of the parties hereto hereby
agrees that, upon the effectiveness of any Refinancing Amendment, this Agreement shall be deemed amended to the extent (but only
to the extent) necessary to reflect the existence and terms of the Refinancing Indebtedness incurred pursuant thereto (including
any amendments necessary to treat the Loans and Commitments subject thereto as Term Loans, Other Revolving Loans, Other Revolving
Commitments and/or Term Commitments). Notwithstanding the foregoing, no Refinancing Amendment shall become effective under this
Section 6.01(c) unless the Administrative Agent, to the extent so reasonably requested by the Administrative Agent, shall
have received legal opinions, board resolutions and/or officers’ certificates consistent with those delivered on the 2015
Restatement Effective Date under Section 1.3 of the 2015 Amendment and Restatement Agreement other than changes to such legal
opinions resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably satisfactory to
the Administrative Agent.

 

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SECTION 6.02.         Liens.
(a) The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property
or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights
in respect of any thereof, except:

 

(i)          Liens
created under the Senior Loan Documents;

 

(ii)         Permitted
Encumbrances;

 

(iii)        any
Lien created or permitted by the Second Priority Collateral Documents with respect to the Second Priority Debt Obligations in favor
of the Second Priority Debt Parties; provided that (A) such Lien is created simultaneously with or after an equivalent Lien
under the Senior Collateral Documents on the applicable Senior Collateral, (B) such Lien is subject to the Collateral Trust and
Intercreditor Agreement, (C) any Lien on the proceeds of such Senior Collateral is permitted by the Collateral Trust and Intercreditor
Agreement and (D) such Second Priority Debt Obligations are permitted to be incurred under Section 6.01(a);

 

(iv)        Liens
on the Collateral (or on assets that, substantially concurrently with the creation of such Lien, become Collateral on which a Lien
is granted to the Collateral Agent pursuant to a Senior Collateral Document) securing Permitted Split-Priority Term Loan Debt;
provided that any such Liens on the ABL Priority Collateral shall, pursuant to a Permitted Split-Priority Intercreditor
Agreement or other Split-Priority Implementing Agreements, rank junior in priority to the Liens on the ABL Priority Collateral
securing the Secured Obligations;

 

(v)         any
Lien securing Indebtedness of a Subsidiary owing to a Subsidiary Loan Party;

 

(vi)        any
Lien securing Attributable Debt and other payment obligations under leases incurred in connection with a Sale and Leaseback Transaction
permitted pursuant to Section 6.01(a)(xiv) or (xv) and Section 6.06; provided that such Liens attach only to the equipment,
real property or other assets subject to such Sale and Leaseback Transaction;

 

(vii)       any
Lien on real property securing Indebtedness permitted and incurred under Section 6.01(a)(ix);

 

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(viii)      any
Lien securing Capital Lease Obligations permitted and incurred under Section 6.01(a)(xiii), provided that such Lien is limited
to the equipment or other property subject to leases existing on the 2005 Restatement Effective Date that were subsequently reclassified
as Capital Lease Obligations;

 

(ix)         any
Lien on equipment securing Indebtedness incurred to finance such equipment pursuant to Section 6.01(a)(xiv);

 

(x)          Liens
securing Indebtedness permitted and incurred under Section 6.01(a)(xv), provided that such Liens apply only to the
property or other assets acquired, developed or constructed, as the case may be, with the proceeds of such Indebtedness;

 

(xi)         Liens
existing on the Second Restatement Effective Date and identified on Schedule 6.02(xi); provided, that such Liens do not
attach to any property other than the property identified on such Schedule and secure only the obligations they secured on the
Second Restatement Effective Date;

 

(xii)        any
Lien on Net Cash Proceeds that are required to be applied to the repayment of Second Priority Debt Obligations in accordance with
the Collateral Trust and Intercreditor Agreement or to obligations in respect of Split-Priority Term Loan Debt in accordance with
the applicable Split-Priority Implementing Agreements;

 

(xiii)       Liens
securing Refinancing Indebtedness permitted under Section 6.01(a), to the extent that the Indebtedness being refinanced was originally
secured in accordance with this Section 6.02; provided that such Lien does not apply to any additional property or assets
of the Borrower or any Subsidiary (other than (i) property or assets acquired after the issuance or incurrence of such Refinancing
Indebtedness that would have been subject to the Lien securing refinanced Indebtedness if such Indebtedness had not been refinanced,
(ii) additions to the property or assets subject to the Lien and (iii) the proceeds of the property or assets subject to the Lien);
provided further that, if the Indebtedness being refinanced constitutes (A) Second Priority Debt, then such Refinancing
Indebtedness must constitute Permitted Second Priority Debt or Permitted Split-Priority Term Loan Debt and (B) Senior Loan
Obligations or Additional Senior Debt Obligations, then such Refinancing Indebtedness must constitute Senior Loan Obligations,
Additional Senior Debt, Permitted Second Priority Debt or Permitted Split-Priority Term Loan Debt;

 

(xiv)      (x)
Liens on property or assets acquired pursuant to Section 6.04(vi), (x) or (xiii), provided that (A) such Liens apply
only to the property or other assets subject to such Liens at the time of such acquisition and (B) such Liens existed at the time
of such acquisition and were not created in contemplation thereof and (y) Liens securing Indebtedness incurred pursuant to Section
6.01(a)(xx), provided that (A) such Liens are not created in contemplation of or in connection with such acquisition or
such Person becoming a Subsidiary and (B) such Liens shall not apply to any other Indebtedness, property or assets of the
Borrower or any Subsidiary;

 

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(xv)       put
and call agreements with respect to Equity Interests acquired or created in connection with Joint Ventures permitted pursuant to
Section 6.04(x) or (xiii); provided that neither the Borrower nor any Subsidiary shall be permitted to enter into any such
agreement that requires or, upon the occurrence of any event or condition, contingent or otherwise, may require the Borrower or
any Subsidiary Loan Party to repurchase Equity Interests, Indebtedness or otherwise expend any amounts on or prior to the Latest
Maturity Date that was in effect at the time of entry into such put or call arrangement (in each case other than as permitted under
Section 6.04(x) or (xiii));

 

(xvi)      (A)
Liens on Securitization Assets transferred or purported to be transferred to Securitization Vehicles securing Third Party Interests
issued in Securitizations permitted by Sections 6.01 and 6.05, (B) Liens on account receivables not purchased by a Securitization
Vehicle, which Liens (i) are granted in connection with Securitizations permitted by Sections 6.01 and 6.05, (ii) are granted pursuant
to Standard Securitization Undertakings, (iii) are perfected prior to an Event of Default and (iv) secure Third Party Interests
issued in Securitizations permitted by Sections 6.01 and 6.05 and (C) Liens on Factoring Assets transferred or purported to be
transferred in Factoring Transactions permitted by this Agreement; and

 

(xvii)     Liens
(other than Liens securing Indebtedness) that are not otherwise permitted under any other provision of this Section 6.02(a); provided,
that the fair market value of the property and assets with respect to which such Liens are granted shall not at any time exceed
$40,000,000.

 

(b)          Notwithstanding
anything in clause (a) of this Section 6.02, the Borrower may not grant or otherwise permit to exist (except in the case
of clause (ii), pursuant to the Collateral Documents) Liens on any cash or cash equivalents that secure the Senior Loan Obligations
or are otherwise held by the Lenders or the Administrative Agent pursuant to (i) Section 2.05(j) or (ii) Section 9.15.

 

SECTION 6.03.         Fundamental
Changes. Without limiting the restrictions on Business Acquisitions set forth in Section 6.04, the Borrower will not, and will
not permit any Subsidiary Loan Party to, merge into or consolidate with any other Person, or permit any other Person to merge into
or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto
(other than in the case of clause (iv) below) no Default shall have occurred and be continuing (i) any Person may merge into
the Borrower in a transaction in which the Borrower is the surviving corporation, provided, that if such other Person is
a Subsidiary Loan Party, it shall have no assets that constitute Senior Collateral, (ii) any Person may merge into a Subsidiary
Loan Party in a transaction in which such Subsidiary Loan Party is the surviving corporation, (iii) any Subsidiary Loan Party
may liquidate or dissolve if such liquidation or dissolution is not materially disadvantageous to the Lenders and (iv) any Asset
Sale of the Equity Interests in any Subsidiary Loan Party that is permitted under Section 6.05 may be effected through a merger,
consolidation, liquidation or dissolution of such Subsidiary Loan Party; provided that (A) any such merger involving a Person
that is not a wholly-owned Subsidiary immediately prior to such merger shall not be permitted to engage in such merger unless also
permitted by Section 6.04 and (B) the Borrower and the applicable Subsidiary Loan Party shall comply with the provisions of
Section 5.11 with respect to any Subsidiary acquired pursuant to this Section 6.03.

 

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SECTION 6.04.         Investments,
Loans, Advances, Guarantees and Acquisitions. The Borrower will not, and will not permit any of the Subsidiaries to, make any
Investment in, or Guarantee any obligations of, any other Person, or purchase or otherwise acquire (in one transaction or a series
of transactions) any assets of any other Person constituting a business unit, except:

 

(i)          Permitted
Investments;

 

(ii)         Investments
of the Borrower and the Subsidiary Loan Parties and set forth on Schedule 6.04;

 

(iii)        Guarantees
of Indebtedness and/or Guarantees consisting of Indebtedness permitted by Section 6.01;

 

(iv)        Investments
received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers
and suppliers, in each case in the ordinary course of business;

 

(v)         Investments
by the Borrower or any Subsidiary Loan Party in Subsidiary Loan Parties; provided that the Borrower and such Subsidiary
Loan Party, as the case may be, shall comply with the applicable provisions of Section 5.11 with respect to any newly formed
Subsidiary;

 

(vi)        Investments
consisting of non-cash consideration received in connection with any Asset Sale permitted by Section 6.05;

 

(vii)       Investments
by the Subsidiaries in the Borrower; provided that the proceeds of such Investments are used for a purpose set forth in
Section 5.10(b);

 

(viii)      [intentionally
omitted];

 

(ix)         usual
and customary loans and advances to employees, officers and directors of the Borrower and the Subsidiaries;

 

(x)          Investments
by the Borrower or any of the Subsidiaries in Joint Ventures in an amount not to exceed $150,000,000 in the aggregate in any fiscal
year of the Borrower;

 

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(xi)         Investments
in charitable foundations organized under Section 501(c) of the Code in an amount not to exceed $7,500,000 in the aggregate
in any calendar year;

 

(xii)        any
Investment consisting of a Hedging Agreement permitted by Section 6.07;

 

(xiii)       Business
Acquisitions and Investments that are not otherwise permitted under any other provision of this Section 6.04; provided
that (A) at the time of such Business Acquisition or Investment no Default has occurred and is continuing or would result
therefrom and (B) immediately after giving effect to any such Business Acquisition or Investment, (1) the Revolver Availability
is greater than (I) prior to the 8.00% Secured Note Repayment Date, $400,000,000 and (II) on and after the 8.00% Secured Note Repayment
Date, $450,000,000 or (2) (x) the Revolver Availability is greater than (I) prior to the 8.00% Secured Note Repayment Date, $250,000,000
and (II) on and after the 8.00% Secured Note Repayment Date, $300,000,000, and (y) the Consolidated Fixed Charge Coverage Ratio
for the period of four consecutive fiscal quarters most recently ended on or prior to the date of such Business Acquisition or
Investment, calculated on a pro forma basis as if such Business Acquisition or Investment (and any related incurrence of Indebtedness)
were made on the first day of such period, shall not be less than 1.00 to 1.00;

 

(xiv)      Investments
consisting of Sellers’ Retained Interests in Securitizations permitted by Sections 6.01 and 6.05; and

 

(xv)       (A)
Investments by the Borrower or a Subsidiary in connection with a Securitization permitted pursuant to this Agreement and (B) any
Investment or other Guarantee that may be deemed made by the Borrower due to the fact that a Parent Undertaking has been entered
into in respect of a Securitization permitted pursuant to the Agreement.

 

SECTION 6.05.         Asset
Sales. The Borrower will not, and will not permit any of the Subsidiary Loan Parties to, conduct any Asset Sale, including
any sale of any Equity Interest owned by it and any sale of Securitization Assets in connection with a Securitization, nor will
the Borrower permit any of the Subsidiary Loan Parties to issue any additional Equity Interest in such Subsidiary, except:

 

(i)          Permitted
Dispositions;

 

(ii)         any
Asset Sale (other than a Sale and Leaseback Transaction, the issuance of Equity Interests, sales or contributions of Securitization
Assets in a Securitization or sales of Factoring Assets in Factoring Transactions) for fair value not in the ordinary course of
business;

 

(iii)        any
sale, transfer or disposition to a third party of Stores, leases and prescription files closed at substantially the same time as,
and entered into as part of a single related transaction with, the purchase or other acquisition from such third party of Stores,
leases and prescription files of a substantially equivalent value;

 

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(iv)        any
issuance of Equity Interests of any Subsidiary Loan Party by such Subsidiary Loan Party to the Borrower or any other Subsidiary
Loan Party;

 

(v)         any
Sale and Leaseback Transaction permitted pursuant to Section 6.01(a)(ix), (xiv) or (xv) and Section 6.06;

 

(vi)        sales
or contributions of Securitization Assets to Securitization Vehicles in connection with Securitizations, provided that (a) each
such Securitization is effected on market terms as determined in good faith by the senior management of the Borrower, (b) the
aggregate amount of all such Securitizations plus the aggregate amount of Indebtedness permitted by Section 6.01(a)(xvi)(B)
and (C) does not at any time exceed an amount equal to (x) $950,000,000 minus (y) the then outstanding aggregate principal
amount of all Incremental Securitization Refinancing Facilities, (c) the aggregate amount of the Sellers’ Retained Interests
in such Securitizations does not exceed an amount at any time outstanding that is customary for similar transactions, (d) the
proceeds to each such Securitization Vehicle from the issuance of Third Party Interests are applied substantially simultaneously
with receipt thereof to the purchase from Subsidiary Loan Parties of Securitization Assets; provided that, in the case of
clause (d), the Securitization Vehicle may use a portion of such proceeds to pay a customary collection agent fee in connection
with such Securitization to the extent such fee is permitted pursuant to Section 6.09(f), and (e) no Securitization may be
effected after the 2015 Restatement Effective Date until such time as a written intercreditor agreement on customary market terms
with respect thereto contemplated by Section 8.01(i) and approved in writing by each Borrowing Base Agent, such approval not to
be unreasonably withheld or delayed, has been entered into and become effective; and

 

(vii)       unless
otherwise restricted by Section 5.17, sales of Factoring Assets in connection with Factoring Transactions; provided that
(i) a Factoring Notice with respect to such Factoring Transaction has been delivered by the Borrower to the Administrative Agent,
(ii) each such Factoring Transaction is effected on market terms as determined in good faith by the senior management of the Borrower
and (iii) no Factoring Transaction may be effected after the 2015 Restatement Effective Date until such time as a written intercreditor
agreement on customary market terms with respect thereto contemplated by Section 8.01(h) and approved in writing by each Borrowing
Base Agent, such approval not to be unreasonably withheld or delayed, has been entered into and become effective;

 

provided that, with respect to sales, transfers or dispositions
under clause (ii) or (v), and with respect to any net consideration received from any transaction described in clause (iii), at
least 75% of the consideration therefor shall consist of cash.

 

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SECTION 6.06.         Sale
and Leaseback Transactions. The Borrower will not, and will not permit any of the Subsidiaries to, enter into any Sale and
Leaseback Transaction, except for Sale and Leaseback Transactions permitted by and effected pursuant to Section 6.01(a)(ix), (xiv)
or (xv) which do not result in Liens other than Liens permitted pursuant to Section 6.02(a).

 

SECTION 6.07.         Hedging
Agreements. The Borrower will not, and will not permit any of the Subsidiaries to, incur or at any time be liable with respect
to any monetary liability under any Hedging Agreements, unless such Hedging Agreements (i) are entered into for bona fide
hedging purposes of the Borrower, any Subsidiary Loan Party (as determined in good faith by the senior management of the Borrower),
(ii) correspond in terms of notional amount, duration, currencies and interest rates, as applicable, to Indebtedness of the
Borrower or any Subsidiary Loan Party permitted to be incurred under Section 6.01(a) or to business transactions of the Borrower
and the Subsidiary Loan Parties on customary terms entered into in the ordinary course of business and (iii) do not exceed an amount
equal to the aggregate principal amount of the Senior Obligations and the Second Priority Debt Obligations.

 

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SECTION 6.08.         Restricted
Payments; Certain Payments of Indebtedness. (a) The Borrower will not, nor will it permit any Subsidiary to, declare or make,
or agree to pay or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do
so, except (i) the Borrower may declare and pay dividends with respect to its common stock or Qualified Preferred Stock payable
solely in additional shares of its common stock or Qualified Preferred Stock, or make cash payments in lieu of fractional shares,
(ii) Subsidiaries (other than those directly owned, in whole or part, by the Borrower) may declare and pay dividends ratably
with respect to their common stock, (iii) the Borrower may, at any time on or after March 2, 2013, declare and pay cash dividends
with respect to its common stock and effect repurchases, redemptions or other Restricted Payments with respect to its common stock,;
provided that immediately prior and after giving effect to any such payment no Default or Event of Default shall have occurred
and be continuing and, immediately after giving effect to any such payment either (1) Revolver Availability is greater than (A)
prior to the 8.00% Secured Note Repayment Date, $400,000,000 and (B) on and after the 8.00% Secured Note Repayment Date, $450,000,000
or (2) (x) Revolver Availability is greater than (A) prior to the 8.00% Secured Note Repayment Date, $250,000,000 and (B) on and
after the 8.00% Secured Note Repayment Date, $300,000,000, and (y) the Consolidated Fixed Charge Coverage Ratio for the period
of four consecutive fiscal quarters most recently ended on or prior to the date of such payment, calculated on a pro forma basis
as if such payment were made on the first day of such period, shall not be less than 1.00 to 1.00, (iv) the Borrower may pay
cash dividends in an amount not to exceed $80,000,000 in any fiscal year of the Borrower with respect to any Preferred Stock of
the Borrower; provided that (x) immediately prior and after giving effect to any such payment, no Default or Event of Default
shall have occurred and be continuing and (y) only so long as a Financial Covenant Effectiveness Period is then occurring, the
Consolidated Fixed Charge Coverage Ratio for the period of four consecutive fiscal quarters most recently ended on or prior to
the date of such payment, calculated on a pro forma basis as if such payment were made on the last day of such period (and excluding
any such payments previously made pursuant to this clause during such four quarter period but attributed for purposes of this calculation
to the last day of a prior period which day does not occur in such four quarter period) is not less than the ratio applicable to
such period of four fiscal quarters under Section 6.12, (v) the Borrower and the Subsidiaries may make Restricted Payments
consisting of the repurchase or other acquisition of shares of, or options to purchase shares of, capital stock of the Borrower
or any of its Subsidiaries from employees, former employees, directors or former directors of the Borrower or any Subsidiary (or
their permitted transferees), in each case pursuant to stock option plans, stock plans, employment agreements or other employee
benefit plans approved by the board of directors of the Borrower; provided that no Default has occurred and is continuing;
and provided further that the aggregate amount of such Restricted Payments made in any fiscal year of the Borrower
shall not exceed $10,000,000, (vi) the Subsidiaries may declare and pay cash dividends to the Borrower; provided that
the Borrower shall, within a reasonable time following receipt of any such payment, use all of the proceeds thereof for a purpose
set forth in Section 5.10(b) or a Refinancing Amendment (including the payment of dividends required or permitted pursuant to this
Section 6.08(a)), (vii) the Borrower and the Subsidiaries may declare and pay cash dividends with respect to the Equity Interests
set forth on Schedule 6.08(a) to the extent, and only to the extent, required pursuant to the terms of such Equity Interests
or any other agreement in effect on the Effective Date and (viii) so long as no Default or Event of Default has occurred and is
continuing or would result therefrom, the Borrower may redeem or repurchase shares of the Borrower’s and/or its Subsidiaries’
(including Rite Aid Lease Management Company’s) Preferred Stock (A) solely with Net Cash Proceeds received by the Borrower
from issuances of its common stock after the 2005 Restatement Effective Date, provided that any such repurchase or redemption
is effected within 150 days after the receipt of such proceeds or (B) with other funds available to the Borrower if, immediately
after giving effect to any such redemption or repurchase, either (1) Revolver Availability is greater than (I) prior to the 8.00%
Secured Note Repayment Date, $400,000,000 and (II) on and after the 8.00% Secured Note Repayment Date, $450,000,000, or (2) (x)
Revolver Availability is greater than (I) prior to the 8.00% Secured Note Repayment Date, $250,000,000 or (II) on and after the
8.00% Secured Note Repayment Date, $300,000,000, and (y) the Consolidated Fixed Charge Coverage Ratio for the period of four consecutive
fiscal quarters most recently ended on or prior to the date of such redemption or repurchase, calculated on a pro forma basis as
if such redemption or repurchase were made on the first day of such period, shall not be less than 1.00 to 1.00.

 

(b)          The
Borrower will not, nor will it permit any Subsidiary to, make or agree to pay or make, directly or indirectly, any payment or other
distribution (whether in cash, securities or other property) of or in respect of principal of or interest on any Indebtedness,
or any payment or other distribution (whether in cash, securities or other property), including any sinking fund or similar deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Indebtedness (which, for purposes
of this Section 6.08(b), shall include any Indebtedness, including the 2015 8.5% Convertible Notes, incurred pursuant to any
of clauses (i) through (xx) of Section 6.01(a)), except:

 

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(i)          payments
or prepayments or exchanges of Indebtedness (including Refinancing Indebtedness) created under the Senior Loan Documents (including
any Refinancing Amendment executed in accordance with Section 6.01(c)) and prepayments, repurchases or redemptions of Additional
Senior Debt made in accordance with Section 2.11(c);

 

(ii)         payments
of regularly scheduled interest and principal payments as and when due in respect of any Indebtedness permitted pursuant to Section 6.01(a);

 

(iii)        prepayments
of Indebtedness permitted pursuant to clause (vii), (viii) or (ix) of Section 6.01(a) with the proceeds of, or in exchange
for, Indebtedness permitted pursuant to clause (vii), (viii) or (ix) of Section 6.01(a), respectively;

 

(iv)        payments
of secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness;

 

(v)         
Optional Debt Repurchases of Indebtedness provided that immediately prior and after giving effect to any such Optional Debt Repurchases,
(i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower shall have Revolver Availability
of more than (A) prior to the 8.00% Secured Note Repayment Date, $300,000,000 and (B) on and after the 8.00% Secured Note Repayment
Date, $365,000,000;

 

(vi)        repurchases,
exchanges or redemptions of Indebtedness for consideration consisting solely of common stock of the Borrower or Qualified Preferred
Stock or cash payments in lieu of fractional shares;

 

(vii)       prepayments
of Capital Lease Obligations in connection with the sale, closing or relocation of Stores;

 

(viii)      prepayments
and exchanges of Indebtedness in connection with the incurrence of Refinancing Indebtedness permitted pursuant to Section 6.01(a)(ii)
or (x);

 

(ix)         prepayments
of Indebtedness permitted pursuant to Section 6.01(a)(iii), if permitted by the subordination provisions applicable to such
Indebtedness;

 

(x)          [reserved];

 

(xi)         mandatory
repurchases of the 2015 8.5% Convertible Notes or other Convertible Debt pursuant to an offer following the occurrence of a Fundamental
Change or substantially similar event, provided that immediately prior to and after giving effect to any such mandatory
repurchase, (A) no Default or Event of Default shall have occurred and be continuing and (B) the Borrower shall have Revolver Availability
of more than (A) prior to the 8.00% Secured Note Repayment Date, $300,000,000 and (B) on and after the 8.00% Secured Note Repayment
Date, $365,000,000.

 

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SECTION 6.09.         Transactions
with Affiliates. The Borrower will not, and will not permit any Subsidiary to, directly or indirectly, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in
any other transactions with, any of its Affiliates, except:

 

(a)          payment
of compensation to directors, officers, and employees of the Borrower and the Subsidiaries in the ordinary course of business;

 

(b)          payments
in respect of transactions required to be made pursuant to agreements or arrangements in effect on the Second Restatement Effective
Date and set forth on Schedule 6.09;

 

(c)          transactions
involving the acquisition of inventory in the ordinary course of business; provided that (i) the terms of such transaction
are (A) set forth in writing, (B) in the best interests of the Borrower or such Subsidiary, as the case may be, and (C) no less
favorable to the Borrower or such Subsidiary, as the case may be, than those that could be obtained in a comparable arm’s
length transaction with a Person that is not an Affiliate of the Borrower or a Subsidiary and, (ii) if such transaction involves
aggregate payments or value in excess of $75,000,000, the board of directors of the Borrower (including a majority of the disinterested
members of the board of directors) approves such transaction and, in its good faith judgment, believes that such transaction complies
with clauses (i)(B) and (C) of this paragraph;

 

(d)          (i)
transactions between or among the Borrower and/or one or more Subsidiary Loan Parties and (ii) sales of Securitization Assets to
Securitization Vehicles in Securitizations permitted by Sections 6.01 and 6.05;

 

(e)          [reserved];
and

 

(f)          any
other Affiliate transaction not otherwise permitted pursuant to this Section 6.09; provided that (i) the terms of such
transaction are (A) set forth in writing, (B) in the best interests of the Borrower or such Subsidiary, as the case may be, and
(C) no less favorable to the Borrower or such Subsidiary, as the case may be, than those that could be obtained in a comparable
arm’s length transaction with a Person that is not an Affiliate of the Borrower or a Subsidiary, (ii) if such transaction
involves aggregate payments or value in excess of $25,000,000 in any consecutive 12-month period, the board of directors of the
Borrower (including a majority of the disinterested members of the board of directors) approves such transaction and, in its good
faith judgment, believes that such transaction complies with clauses (i)(B) and (C) of this paragraph and (iii) if such transaction
(other than any transaction necessary for the redemption or exchange of the Borrower’s Series G Preferred Stock or Series H
Preferred Stock) involves aggregate payments or value in excess of $50,000,000 in any consecutive 12-month period, the Borrower
obtains a written opinion from an independent investment banking firm or appraiser of national prominence, as appropriate, to the
effect that such transaction is fair to the Borrower or such Subsidiary, as the case may be, from a financial point of view.

 

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SECTION 6.10.         Restrictive
Agreements. (a) The Borrower will not, and will not permit any Subsidiary to, enter into any agreement which imposes a limitation
on the incurrence by the Borrower and the Subsidiaries of Liens that (i) would restrict any Subsidiary from granting Liens on any
of its assets (including assets in addition to the then-existing Senior Collateral, to secure the Senior Obligations and the Second
Priority Obligations) or (ii) is more restrictive, taken as a whole, than the limitation on Liens set forth in this Agreement except,
in each case, (A)(u) the Senior Loan Documents, (v) agreements with respect to Indebtedness secured by Liens permitted by Section
6.02(a) restricting the ability to transfer or grant Liens on the assets securing such Indebtedness, (w) agreements with respect
to Second Priority Debt (1) containing provisions described in clauses (i) and/or (ii) above that are not materially more
restrictive, taken as a whole, than those of the 2016 10.375% Note Indenture as in effect on the 2009 Restatement Effective Date
or (2) requiring that such Indebtedness be secured by assets in respect of which Liens are granted to secure other Indebtedness
(provided that in the case of any such assets subject to a Senior Lien, such Indebtedness will be required to be secured
only with a Second Priority Lien); provided, however, that the Second Priority Debt Documents relating to any such
Indebtedness may not contain terms requiring any Liens be granted with respect to Senior Collateral consisting of cash or Permitted
Investments pledged pursuant to Section 2.05(j) of this Agreement or Section 8 of the Senior Subsidiary Guarantee Agreement or
otherwise required to be provided upon the occurrence of a default under any bank credit facility to secure obligations in respect
of letters of credit issued thereunder, (x) agreements with respect to Additional Senior Debt (1) containing provisions
described in clauses (i) and/or (ii) above that are not materially more restrictive, taken as a whole, than those of this
Agreement or (2) requiring that such Indebtedness be secured by assets in respect of which Liens are granted to secure other
Indebtedness; provided, however, that the Additional Senior Debt Documents relating to any such Indebtedness may
not contain terms requiring any Liens be granted with respect to Senior Collateral consisting of cash or Permitted Investments
pledged pursuant to Section 2.05(j) of this Agreement or Section 8 of the Senior Subsidiary Guarantee Agreement or otherwise required
to be provided upon the occurrence of a default under any bank credit facility to secure obligations in respect of letters of credit
issued thereunder, (y) agreements with respect to unsecured Indebtedness governed by indentures or by credit agreements or
note purchase agreements with institutional investors permitted by this Agreement containing terms that are not materially more
restrictive, taken as a whole, than those of the 2017 9.50% Note Indenture as in effect on the 2009 Restatement Effective Date
and (z) the 2017 9.5% Senior Notes, (B) customary restrictions contained in purchase and sale agreements limiting the
transfer of the subject assets pending closing, (C) customary non-assignment provisions in leases and other contracts entered into
in the ordinary course of business, (D) pursuant to applicable law, (E) agreements in effect as of the Second Restatement
Effective Date and not entered into in contemplation of the transactions effected on such date hereunder, (F) the Indentures,
in each case when originally entered into, (G) any restriction existing under agreements relating to assets acquired by the Borrower
or a Subsidiary in a transaction permitted hereby; provided that such agreements existed at the time of such acquisition,
were not put into place in anticipation of such acquisition and are not applicable to any assets other than assets so acquired,
(H) any restriction existing under any agreement of a Person acquired as a Subsidiary pursuant to Section 6.03 or Section 6.04(a)(xiii);
provided that any such agreement existed at the time of such acquisition, was not put into place in anticipation of such
acquisition and was not applicable to any Person or assets other than the Person or assets so acquired and (I) customary restrictions
and conditions contained in agreements relating to Securitizations permitted hereunder, provided that such restrictions
and conditions apply only to Securitization Vehicles and to the Securitization Assets that are subject to such Securitizations.

 

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(b)          The
Borrower will not, and will not permit any Subsidiary to, enter into or suffer to exist or become effective any consensual encumbrance
or restriction on the ability of any Subsidiary to (i) make Restricted Payments in respect of any Equity Interests of such Subsidiary
held by, or pay any Indebtedness owed to, the Borrower or any other Subsidiary, (ii) make any Investment in the Borrower or
any other Subsidiary, or (iii) transfer any of its assets to the Borrower or any other Subsidiary, except for (A) any
restriction existing under (1) the Senior Loan Documents or existing on the Second Restatement Effective Date under the Indentures,
(2) the indenture or agreement governing any Refinancing Indebtedness in respect of Indebtedness set forth in clause (1) above
or (3) agreements with respect to Indebtedness permitted by this Agreement containing provisions described in clauses (i), (ii)
and (iii) above that are not materially more restrictive, taken as a whole, than those of the 2016 10.375% Note Indenture as in
effect on the 2009 Restatement Effective Date, (B) customary non-assignment provisions in leases and other contracts entered
into in the ordinary course of business, (C) as required by applicable law, (D) customary restrictions contained in purchase and
sale agreements limiting the transfer of the subject assets pending closing, (E) any restriction existing under agreements relating
to assets acquired by the Borrower or a Subsidiary in a transaction permitted hereby; provided that such agreements existed
at the time of such acquisition, were not put into place in anticipation of such acquisition and are not applicable to any assets
other than assets so acquired, (F) any restriction existing under any agreement of a Person acquired as a Subsidiary pursuant
to Section 6.03 or Section 6.04(a)(xiii); provided any such agreement existed at the time of such acquisition, was not put
into place in anticipation of such acquisition and was not applicable to any Person or assets other than the Person or assets so
acquired, (G) agreements with respect to Indebtedness secured by Liens permitted by Section 6.02 that restrict the ability to transfer
the assets securing such Indebtedness, and (H) customary restrictions and conditions contained in agreements relating to Securitizations
permitted hereunder, provided that such restrictions and conditions apply only to Securitization Vehicles and to the Securitization
Assets that are subject to such Securitizations.

 

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SECTION 6.11.         Amendment
of Material Documents. (a) The Borrower will not, nor will it permit any Subsidiary to, amend, modify or waive any Second Priority
Collateral Document or any of its rights thereunder without the consent of the Collateral Agent and the Borrowing Base Agent, other
than modifications to such agreements in connection with (i) the joinder of additional Subsidiary Loan Parties effected by
the execution of supplements to such agreements, (ii) the inclusion of (A) additional Second Priority Debt permitted
pursuant to Section 6.01(a)(vii) constituting Secured Obligations (as defined in the Second Priority Subsidiary Security Agreement),
(B) Additional Senior Debt Obligations under such agreements or (C) amendments to effect the transactions contemplated by
the 2009 Amendment and Restatement Agreement and taking place on the 2009 Restatement Effective Date and (iii) amendments required
to permit the security arrangements relating to Permitted Split-Priority Term Loan Debt (including the priority of Liens securing
obligations with respect to Split-Priority Term Loan Debt) that are not adverse to the Senior Secured Parties. The Borrower will
not, nor will it permit any Subsidiary to, amend, modify or waive any instrument governing the 2017 9.5% Senior Notes, any Additional
Senior Debt Obligations or any related security documents, or any of its rights under any of the foregoing, in each case without
the consent of the Collateral Agent and the Borrowing Base Agent, other than amendments, modifications and waivers that are not
material and adverse to the interests of the Lenders or amendments or other modifications to implement any Refinancing Indebtedness
and Split-Priority Implementing Agreements, in each case otherwise permitted by this Agreement.

 

(b)          The
Borrower will not, and will not permit any Subsidiary party to the Intercompany Inventory Purchase Agreement to, amend, terminate,
or otherwise modify the Intercompany Inventory Purchase Agreement in any manner materially adverse to the Lenders or their interests
under the Senior Loan Documents without the prior written approval of the Collateral Agent; provided, however, that
the foregoing shall not limit the Borrower’s responsibilities pursuant to Section 3.2 of the Intercompany Inventory Purchase
Agreement.

 

SECTION 6.12.         Consolidated
Fixed Charge Coverage Ratio. The Borrower will not permit the Consolidated Fixed Charge Coverage Ratio for the period of four
consecutive fiscal quarters most recently ended on or prior to any day during a Financial Covenant Effectiveness Period to be less
than 1.00 to 1.00.

 

SECTION 6.13.         Restrictions
on Asset Holdings by the Borrower. The Borrower will not at any time:

 

(i)          make
or hold any Investments other than investments in the Equity Interests of the Subsidiaries (including any distributions or other
assets received in respect thereto), intercompany advances to Subsidiaries and Investments permitted by clause (iii) below;

 

(ii)         acquire
or hold any Stores, other capital assets, inventory or accounts receivable, other than any real estate which the Borrower holds
only as lessor and which is leased and operated by another Person; or

 

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(iii)        acquire
or hold cash, cash equivalents, Permitted Investments or balances in bank accounts, other than such amounts as are reasonably anticipated
(at the time so acquired or held) to be utilized within five Business Days to pay costs, expenses and other obligations of the
Borrower referred to in Section 5.10(b).

 

SECTION 6.14.         Corporate
Separateness. The Borrower will, and will cause each Subsidiary to, take all necessary steps to maintain its identity as a
separate legal entity from other Persons and to make it manifest to third parties that it is an entity with assets and liabilities
distinct from those of each of other Person.

 

SECTION 6.15.         Cash
Management. At any time any Revolving Loans (including any Other Revolving Loans) are outstanding, the Borrower shall not,
and shall not permit any Subsidiary Loan Party to, permit cash on hand (including the proceeds of any Revolving Loan and any Other
Revolving Loans) in an aggregate amount in excess of $200,000,000 to accumulate and be maintained in the Deposit Accounts of the
Loan Parties, provided, that, for purposes hereof, “cash on hand” shall exclude the following: (i) “store”
cash, cash in transit between stores and local Deposit Accounts and cash receipts from sales in the process of inter-account transfers,
in each case as a result of the ordinary course operations of the Loan Parties, (ii) cash necessary for the Loan Parties to satisfy
the current liabilities incurred by such Loan Parties in the ordinary course of their businesses and without acceleration of the
satisfaction of such current liabilities, (iii) the Net Proceeds received in respect of a Prepayment Event described in clause
(a) or (b) of the definition of “Prepayment Event” for which the Borrower is permitted to apply such Net Proceeds as
a reinvestment to acquire real property, equipment or other tangible assets pursuant to Section 2.11(c) or any equivalent provision
under any Additional Senior Debt Document, (iv) cash proceeds of Refinancing Indebtedness not yet applied to Refinance the
applicable Refinanced Debt in accordance with clause (xi) of the first proviso in the definition of the term “Refinancing
Indebtedness”, (v) cash proceeds of Refinancing Indebtedness to the extent that the applicable Refinanced Debt consists of
unused Revolving Commitments or Other Revolving Commitments that have been terminated in connection with the issuance of such Refinancing
Indebtedness, (vi) cash held in any Deposit Account relating to any Securitization or Factoring Transaction, (vii) cash collateral
required to be deposited pursuant to Section 2.05(j) or otherwise to cash collateralize letters of credit in accordance with the
applicable loan or letter of credit documents and (viii) cash held in any Deposit Account of the Loan Parties which is under
the sole dominion and control of the Collateral Agent if the Collateral Agent has exclusive rights of withdrawal with respect to
such Deposit Accounts. The Borrower shall not borrow any Revolving Loans or Other Revolving Loans in an aggregate principal amount
of more than $100,000,000 over any three consecutive Business Day period if the purpose of such Borrowings is to accumulate cash
on hand (other than for any of the purposes described in clause (ii), (iv), (v) or (vii) above).

 

ARTICLE
VII

 

Events of Default

 

If any of the following events (“Events
of Default”) shall occur:

 

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(a)          the
Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and
as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

 

(b)          the
Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause
(a) of this Article) payable under this Agreement or any other Senior Loan Document, when and as the same shall become due
and payable, and such failure shall continue unremedied for a period of five days;

 

(c)          any
representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or in connection with any Senior
Loan Document or any amendment or modification thereof or waiver thereunder, or in any report, certificate, financial statement
or other document furnished pursuant to or in connection with any Senior Loan Document or any amendment or modification thereof
or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made;

 

(d)          the
Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02(a), 5.10, 5.11, 5.15
or 5.16 or in Article VI;

 

(e)          any
Loan Party shall fail to observe or perform any covenant, condition or agreement contained in any Senior Loan Document (other than
those specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied (i) in the case of
covenants contained in Section 5.08, for five days, (ii) in the case of covenants contained in Sections 5.01 and
5.02(b), (c) and (f), for 10 days and (iii) in the case of any other covenant, for a period of 20 days after notice thereof
has been delivered by the Administrative Agent to the Borrower (which notice shall be given promptly at the request of any Lender);

 

(f)          the
Borrower or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect
of any Material Indebtedness, including any obligation to reimburse letter of credit obligations or to post cash collateral with
respect thereto, when and as the same shall become due and payable or within any applicable grace period;

 

(g)          any
event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables
or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness
or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall
not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing
such Indebtedness; provided further that this clause (g) shall not apply to any mandatory repurchase offer or
other mandatory repurchase obligation of the Borrower that may arise under the 2015 8.5% Convertible Notes or other Convertible
Debt to the extent that the making of such mandatory repurchase by the Borrower is otherwise permitted under this Agreement;

 

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(h)          an
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization
or other relief in respect of the Borrower or any Subsidiary or its Indebtedness, or of a substantial part of its assets, under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial
part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order
or decree approving or ordering any of the foregoing shall be entered;

 

(i)          the
Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization
or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described
in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for
the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

 

(j)          the
Borrower or any Subsidiary shall become unable to, or admits in writing its inability or fails to, generally pay its debts as they
become due;

 

(k)          one
or more judgments for the payment of money in an aggregate amount in excess of $75,000,000 shall be rendered against the Borrower,
any Subsidiary or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy
upon any assets of the Borrower or any Subsidiary to enforce any such judgment;

 

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(l)          (i)
the Borrower or any ERISA Affiliate shall fail to pay when due an amount or amounts aggregating in excess of $15,000,000 which
it shall have become liable to pay under Section 302 or Title IV of ERISA; or notice of intent to terminate a Plan shall
be filed under Title IV of ERISA by the Borrower or any ERISA Affiliate, any plan administrator or any combination of the
foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for
premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer, any Plan; or a condition
shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Plan must be terminated; or
there shall occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA,
with respect to, one or more Multiemployer Plans which could cause the Borrower and/or one or more ERISA Affiliates to incur a
current payment obligation in excess of $75,000,000; or (ii) any other ERISA Event shall have occurred that, in the opinion of
the Required Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result
in liability of the Borrower, the ERISA Affiliates and the Subsidiaries in an aggregate amount exceeding $75,000,000;

 

(m)          (i) any
Lien purported to be created under any Senior Collateral Document shall cease to be a valid and perfected Lien on any material
portion of the Senior Collateral, with the priority required by the Senior Loan Documents, except as a result of the sale or other
disposition of the applicable Collateral in a transaction permitted under the Senior Loan Documents, or the Borrower or any Subsidiary
shall so assert in writing, or (ii) any Senior Loan Document shall become invalid, or the Borrower or any Subsidiary shall
so assert in writing;

 

(n)          a
Change in Control shall occur; or

 

(o)          any
Subsidiary Loan Party shall amend or revoke any instruction in the Government Lockbox Account Agreement to any Government Lockbox
Account Bank in respect of a Government Lockbox Account unless (i) the Administrative Agent shall have given its prior written
consent or (ii) the Government Lockbox Account is then under the control of any other Person pursuant to Section 5.16;

 

then, and in every such event (other than an event with respect
to the Borrower or any Subsidiary Loan Party described in clause (h) or (i) of this Article), and at any time thereafter during
the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders or Borrowing Base Agents
holding at least a majority of the outstanding Revolving Commitments and Other Revolving Commitments held at such time by all Borrowing
Base Agents shall, by notice to the Borrower, take either or both of the following actions, at the same or different times:  (i) terminate
the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to
be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared
to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event
with respect to the Borrower or any Subsidiary Loan Party described in clause (h) or (i) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower.

 

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ARTICLE
VIII
 

SECTION 8.01.         Rights
of Agents. (a) Each of the Lenders and each Issuing Bank hereby irrevocably appoints (i) the Administrative Agent as its
agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms of the Senior Loan Documents, together with such actions and powers as are reasonably incidental
thereto, (ii) the Collateral Agent as its agent and authorizes the Collateral Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Collateral Agent by the terms of the Senior Loan Documents, together with such
actions and powers as are reasonably incidental thereto and (iii) the Borrowing Base Agent as its agent and authorizes the Borrowing
Base Agent to take such actions on its behalf and to exercise such powers as are delegated to the Borrowing Base Agent by the terms
of this Agreement, together with such actions and powers as are reasonably incidental thereto.

 

(b)          The
financial institutions serving as the Agents hereunder shall have the same rights and powers in its capacity as a Lender as any
other Lender and may exercise the same as though it were not an Agent, and such financial institutions and their Affiliates may
accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or any Affiliate
of any of the foregoing as if they were not Agents hereunder.

 

(c)          No
Agent shall have any duties or obligations except those expressly set forth in the Senior Loan Documents. Without limiting the
generality of the foregoing, (a) no Agent shall be subject to any fiduciary or other implied duties, regardless of whether
a Default has occurred and is continuing, (b) no Agent shall have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated by the Senior Loan Documents that such Agent
is required to exercise in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 2.20 or 9.02) and (c) except as expressly set forth in the Senior Loan Documents,
no Agent shall have any duty to disclose, and no Agent shall be liable for the failure to disclose, any information relating to
the Borrower or any of the Subsidiaries that is communicated to or obtained by the financial institution serving as such Agent
or any of its Affiliates in any capacity. No Agent shall be liable for any action taken or not taken by it with the consent or
at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances
as provided in Section 2.20 or 9.02) or in the absence of its own gross negligence or willful misconduct (as determined by
a court of competent jurisdiction by final and non-appealable judgment). No Agent shall be deemed to have knowledge of any Default
unless and until written notice thereof is given to such Agent by the Borrower or a Lender, as applicable, and no Agent shall be
responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in
connection with any Senior Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder
or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions
set forth in any Senior Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Senior Loan
Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV
or elsewhere in any Senior Loan Document, other than to confirm receipt of items expressly required to be delivered to such Agent.

 

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(d)          Each
Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person.
Each Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person,
and shall not incur any liability for relying thereon. Any Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance
with the advice of any such counsel, accountants or experts.

 

(e)          Each
Agent may perform any and all of its duties and exercise any and all of its rights and powers by or through any one or more sub-agents
appointed by such Agent. Any Agent and any such sub-agent may perform any and all of its duties and exercise any and all of its
rights and powers through their Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such
sub-agent and to the Related Parties of any Agent and any such sub-agent, and shall apply to their activities in connection with
the syndication of the credit facilities provided for herein as well as activities as an Agent.

 

(f)          Subject
to the appointment and acceptance of a successor Agent as provided in this paragraph, any Agent may resign at any time by notifying
the Lenders, the Issuing Banks and the Borrower (it being understood that, if at any time there are two or more institutions acting
as Borrowing Base Agents under this Agreement, the resignation of any Borrowing Base Agent shall not be subject to the appointment
and acceptance of a successor Borrowing Base Agent). Upon any such resignation, the Required Lenders shall have the right, in consultation
with the Borrower, to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Agent gives notice of its resignation, then the retiring Agent
may, on behalf of the Lenders and the Issuing Banks, appoint a successor Agent (which shall be a financial institution with an
office in New York, New York, or an Affiliate of any such financial institution). Upon the acceptance of its appointment as an
Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder. The fees payable by
the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower
and such successor. After an Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue
in effect for the benefit of such retiring Agent, its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while it was acting as Agent.

 

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(g)          If
the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required
Lenders may, by notice in writing to the Borrower and such Person, remove such Person as Administrative Agent. Upon any such removal,
the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor. If no successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the Required Lenders
give notice of such removal, then such removal shall nonetheless become effective in accordance with such notice. Upon the acceptance
of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all
the rights, powers, privileges and duties of the removed Administrative Agent, and the removed Administrative Agent shall be discharged
from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent’s
removal hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such removed
Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken
by any of them while it was acting as Administrative Agent.

 

(h)          Each
Lender acknowledges that it has, independently and without reliance upon any Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon any Agent or any other Lender and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Senior Loan Document or related agreement or any document furnished hereunder or
thereunder.

 

(i)          Each
party hereto authorizes the Administrative Agent to enter into customary intercreditor agreements in connection with Securitizations
and Factoring Transactions permitted under this Agreement.

 

(j)          The
Senior Loan Secured Parties irrevocably authorize each of the Administrative Agent and the Collateral Agent, at its option and
in its discretion, but subject to the applicable provisions of this Agreement (including any required approval of the Borrowing
Base Agent contemplated by the definition of the term “Split-Priority Implementing Agreements”), to negotiate, execute
and deliver (i) Split-Priority Implementing Agreements and/or a Permitted Split Priority Intercreditor Agreement, which, among
other things, will subordinate any Lien on any Non-ABL Priority Collateral granted to or held by the Collateral Agent under any
Senior Collateral Documents, or otherwise securing any Senior Obligations, to the Liens on such Non-ABL Priority Collateral securing
Permitted Split-Priority Term Loan Debt, and will permit Liens on ABL Priority Collateral to secure, on a subordinated basis to
the Liens securing Senior Obligations, obligations in respect of Permitted Split-Priority Term Loan Debt and (ii) any amendments
to this Agreement or the other Senior Loan Documents deemed appropriate by the Administrative Agent or the Collateral Agent, as
the case may be, to reflect and accommodate the incurrence of Permitted Split-Priority Term Loan Debt, including amendments contemplated
by Section 9.02(d) and Section 9.18.

 

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(k)          Anything
herein to the contrary notwithstanding, none of the Bookrunners, Lead Arrangers, Syndication Agent or Co-Documentation Agents listed
on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any other Loan Documents, except
in its capacity, as an Agent, a Lender, an LC Issuer or the Swingline Lender hereunder.

 

SECTION 8.02.         Additional
Rights of Borrowing Base Agent. Notwithstanding anything in this Agreement, any other Senior Loan Document or any other document
or instrument executed and delivered in connection therewith by any Loan Party, any Agent or any Senior Lender to the contrary,
in addition to the rights granted to the Borrowing Base Agent elsewhere in this Agreement and the other Senior Loan Documents,
the Borrowing Base Agent shall have the right to direct the Administrative Agent (a) to take (or cause any sub-agent of the
Administrative Agent to take) or (b) to cause the Collateral Agent to take (or cause any sub-agent of the Collateral Agent
to take), and the Administrative Agent agrees to take or so cause the Collateral Agent to take (or cause any such sub-agent to
take), all the following actions to the commercially reasonable satisfaction of the Borrowing Base Agent:

 

(a)          to
take any remedial rights granted to the Administrative Agent and/or the Collateral Agent, as applicable, under the Senior Loan
Documents and applicable law, including the rights identified in Section 7.04 of the Senior Subsidiary Security Agreement;

 

(b)          to
deliver Cash Sweep Notices and/or any other blocked account notices (howsoever defined) under any deposit account control agreement
entered into among the Administrative Agent and/or the Collateral Agent and any Subsidiary Loan Party, all as provided in the Senior
Loan Documents, including as provided in Section 9.15 of this Agreement; and

 

(c)          to
make demand against any Subsidiary Loan Party under the Senior Subsidiary Guaranty Agreement and/or any other guarantor of the
Senior Loan Obligations;

 

provided, however, that in the event of any conflict
between (A) any direction given to the Administrative Agent or the Collateral Agent by the Required Lenders or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02 (the Required
Lenders or such other number or percentage of the lenders, “Requisite Lenders”) and (B) any direction given
to the Administrative Agent (in respect of any action to be taken by the Administrative Agent, the Collateral Agent or any subagent
thereof) by the Borrowing Base Agent, in each case with respect to any discretionary action or exercise of any discretionary power
contemplated by the Senior Loan Documents, the direction given by the Requisite Lenders shall control and the Administrative Agent
shall have no obligation to follow such direction (or to cause the Collateral Agent or any subagent thereof or of the Administrative
Agent to follow such direction) from the Borrowing Base Agent.

 

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ARTICLE
IX

 

Miscellaneous

 

SECTION 9.01.         Notices.
Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered
mail or sent by telecopy, as follows:

 

(a)          Rite
Aid Corporation, 30 Hunter Lane Camp Hill, PA 17011, Attention of General Counsel (Telecopy No. 717-760-7867; email address: mstrassler@riteaid.com);

 

(b)          if
to the Administrative Agent, (i) in respect of matters of an operational nature, to Citicorp North America, Inc., 1615 Brett Rd.,
New Castle, DE 19720, Attention of Tracey L. Wilson (Telecopy No. (212) 994-0849; email address: tracey.l.wilson@citi.com,
with a copy to oploanswebadmin@citigroup.com) and (ii) in respect of all other matters, to Citicorp North America, Inc., 388 Greenwich
Street, New York, NY 10013, Attention of Thomas Halsch (Telecopy No. 646-274-5025); email address: thomas.halsch@citi.com,
with a copy to oploanswebadmin@citigroup.com);

 

(c)          if
to the Issuing Banks, to (i) Citibank, N.A., 388 Greenwich Street, New York, NY 10013, Attention of Thomas Halsch (Telecopy
No.: 212-723-4835; email address: thomas.halsch@citi.com, (ii) Bank of America, N.A., 100 Federal St., 9th Floor, Boston MA
02110, Attention of Roger Malouf (Telecopy No.: 617-310-2156; email address: roger.malouf@baml.com), (iii) General Electric Capital
Corporation, 201 Merritt 7, Norwalk, CT 06851, Attention: Account Manager and (iv) Wells Fargo Bank, N.A., One Boston Place, 18th
Floor, Boson, MA 02108, Attention of Peter Foley (Telecopy: 855-461-3726) ;

 

(d)          if
to the Swingline Lender, to it at Citicorp North America, Inc., 388 Greenwich Street, New York, NY 10013, Attention of Thomas
Halsch (Telecopy No. 646-274-5025; email address: thomas.halsch@citi.com);

 

(e)          if
to the Syndication Agent, to it at Wells Fargo Bank, N.A., One Boston Place, 18th Floor, Boson, MA 02108, Attention of Peter Foley
(Telecopy: 855-461-3726); and

 

(f)          if
to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire.

 

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Any party hereto may change its address or telecopy number for
notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

 

SECTION 9.02.         Waivers;
Amendments. (a) No failure or delay by any Agent, any Issuing Bank or any Lender in exercising any right or power hereunder
or under any other Senior Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Agents, the Issuing Banks and the Lenders hereunder
and under the other Senior Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise
have. No waiver of any provision of any Senior Loan Document or consent to any departure by any Loan Party therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing,
the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether
any Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time.

 

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(b)          Neither
this Agreement nor any other Senior Loan Document nor any provision hereof or thereof may be waived, amended or modified except,
in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Required
Lenders or, in the case of any other Senior Loan Document, pursuant to an agreement or agreements in writing entered into by the
Administrative Agent and the Loan Party or Loan Parties that are parties thereto, in each case with the consent of the Required
Lenders; provided that (i) no such agreement shall change any provision of any Senior Loan Document in a manner that by
its terms adversely affects the rights of Lenders holding Loans of any Class differently than those holding Loans of any other
Class, without the written consent of Lenders holding a majority in interest of the outstanding Loans and unused Commitments of
each affected Class and (ii) any waiver, amendment or modification of this Agreement that by its terms affects the rights or duties
under this Agreement of one or more Classes of Lenders (but not the other Class or Classes of Lenders) may be effected by an agreement
or agreements in writing entered into by the Borrower and requisite percentage in interest of the affected Class or Classes of
Lenders that would be required to consent thereto under this Section if such Class or Classes of Lenders were the only Class or
Classes of Lenders hereunder at the time; and provided further that no such agreement shall (i) increase the Commitment
of any Lender without the written consent of such Lender, (ii) reduce or forgive the principal amount of any Loan or LC Disbursement
or reduce the rate of interest thereon, or reduce or forgive any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the maturity of any Loan, or any scheduled date of payment of the principal amount of any
Term Loan under Section 2.10, or the required date of reimbursement of any LC Disbursement, or any date for the payment of
any interest or fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date
of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) amend Section 2.18(b) or (c)
in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender,
(v) amend the proviso of the definition of “Borrowing Base Amount” or the definition of “Accounts Receivable
Advance Rate”, “Credit Card Receivable Advance Rate”, “Pharmaceutical Inventory Advance Rate”, “Other
Inventory Advance Rate” or “Script Lists Advance Rate” without the written consent of each Revolving Lender,
(vi) subordinate the priority of the Lien granted to the Collateral Agent pursuant to the Senior Loan Documents without the
written consent of each Lender, (vii) change any of the provisions of this Section or the percentage set forth in the definition
of “Required Lenders”, “Supermajority Lenders” or any other provision of any Senior Loan Document specifying
the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make
any determination or grant any consent thereunder, without the written consent of each Lender (or each Lender of such Class, as
the case may be), (viii) release the Borrower or any Subsidiary Loan Party from its Guarantee under the Senior Subsidiary
Guarantee Agreement (except as expressly provided in the Senior Subsidiary Guarantee Agreement or in Section 9.18), or limit its
liability in respect of such Guarantee, without the written consent of each Lender, (ix) [intentionally omitted], (x) [intentionally
omitted], (xi) release all or substantially all of the Senior Collateral from the Liens under the Senior Collateral Documents,
without the written consent of each Lender, (xii) [intentionally omitted], (xiii) amend Section 2.21 or any other
sections of this Agreement to increase the permitted amount of the Incremental Facilities without the written consent of the Supermajority
Lenders, or (xiv) amend the definition of “Applicable Percentage” without the written consent of each affected Lender;
and provided further, that no such agreement shall amend, modify or otherwise affect the rights or duties of any
Agent, the Issuing Banks or the Swingline Lender without the prior written consent of such Agent, the Issuing Banks or the Swingline
Lender, as the case may be. Notwithstanding the foregoing, any provision of this Agreement may be amended by an agreement in writing
entered into by the Borrower, the Required Lenders and the Administrative Agent (and, if their rights or obligations are affected
thereby, the Issuing Banks and the Swingline Lender) if (i) by the terms of such agreement the Commitment of each Lender not consenting
to the amendment provided for therein shall terminate upon the effectiveness of such amendment and (ii) at the time such amendment
becomes effective, each Lender not consenting thereto receives payment in full of the principal of and interest accrued on each
Loan made by it and all other amounts owing to it or accrued for its account under this Agreement. Notwithstanding the foregoing,
no consent with respect to any amendment, waiver or other modification of this Agreement or any other Senior Loan Document shall
be required of any Defaulting Lender, except with respect to any amendment, waiver or other modification referred to in clause
(i), (ii) or (iii) of the second proviso of this paragraph and then only in the event such Defaulting Lender shall be affected
by such amendment, waiver or other modification. Notwithstanding the foregoing, any provision of this Agreement or any other Senior
Debt Document may be amended by an agreement in writing entered into by the Borrower and the Administrative Agent to cure any ambiguity,
omission, mistake, defect or inconsistency so long as, in each case, the Lenders shall have received at least five Business Days’
prior written notice thereof and the Administrative Agent shall not have received, within five Business Days of the date of such
notice to the Lenders, a written notice from (x) the Required Lenders stating that the Required Lenders object to such amendment
or (y) if affected by such amendment, any Agent, Issuing Bank or the Swingline Lender stating that it objects to such amendment.

 

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(c)          Notwithstanding
the foregoing, (i) Senior Collateral shall be released from the Lien under the Senior Collateral Documents from time to time as
necessary to effect any sale of Senior Collateral permitted by the Senior Loan Documents, and the Administrative Agent shall execute
and deliver all release documents reasonably requested to evidence such release; provided that arrangements satisfactory
to the Administrative Agent shall have been made for application of the cash proceeds thereof in accordance with Section 2.11,
if required, and for the pledge of any non-cash proceeds thereof pursuant to the Senior Collateral Documents, (ii) the accounts
created pursuant to clause (i) of Section 5.16(b), the Lockbox Account and/or the Governmental Lockbox Account may be released
by the Administrative Agent and transferred in accordance with Section 5.16, and (iii) if a Subsidiary Loan Party ceases
to be a Subsidiary in accordance with this Agreement, or ceases to own any property that constitutes Senior Collateral, at the
request of and at the expense of the Borrower, such Subsidiary Loan Party shall be released from the Senior Subsidiary Guarantee
Agreement, the Senior Subsidiary Security Agreement and each other Senior Loan Document to which it is a party.

 

(d)          Notwithstanding
anything herein to the contrary:

 

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(i)          In
connection with any incurrence of any Permitted Split-Priority Term Loan Debt, this Agreement, the Senior Subsidiary Security Agreement
and the other Senior Loan Documents may be amended or supplemented with additional agreements pursuant to an agreement or agreements
in writing entered into by the Borrower, the Subsidiary Loan Parties and the Administrative Agent and/or the Collateral Agent (subject
to any required approvals of the Borrowing Base Agent contemplated by the definition of “Split-Priority Implementing Agreement”
but without the consent of any other Person) (A) to subject to the Liens of the Senior Collateral Documents assets or categories
of assets of the Subsidiary Guarantors that previously did not constitute Collateral (and, in connection therewith, to modify the
definition of the term “Collateral and Guarantee Requirement” and the form of Perfection Certificate and to make such
other modifications to this Agreement and the other Senior Loan Documents (and to enter into new Senior Collateral Documents) as
the Administrative Agent or the Collateral Agent determines to be necessary, appropriate or desirable in order to give effect to,
or in connection with, the inclusion of new assets or categories of assets as Collateral), (B) to reflect subordination, pursuant
to a Split-Priority Implementing Agreement (including a Permitted Split-Priority Intercreditor Agreement), of Liens on any Non-ABL
Priority Collateral securing the Senior Obligations to the Liens on such Non-ABL Priority Collateral securing Permitted Split-Priority
Term Loan Debt and to permit Liens on ABL Priority Collateral to secure, on a subordinated basis to the Liens securing Senior Obligations,
obligations in respect of Permitted Split-Priority Term Loan Debt, (C) to reflect such other intercreditor arrangements between
the Senior Secured Parties and the holders of Permitted Split-Priority Term Loan Debt as are customary for intercreditor agreements
or intercreditor arrangements for similar cross-collateralized asset- based credit facilities and “tranche B” term
loan credit facilities, including a royalty free license to the Administrative Agent and Collateral Agent to use Intellectual Property
consisting of Non-ABL Priority Collateral in connection with the sale or other disposition of ABL Priority Collateral and (D) to
modify the mandatory prepayment provisions of this Agreement to provide for the prepayment of Permitted Split-Priority Term Loan
Debt in a customary manner in connection with certain Prepayment Events, including customary provisions for the application of
Net Proceeds from sales or dispositions received other than during a Cash Sweep Period to the Senior Loan Obligations in an amount
at least equal to, with respect to ABL assets that are taken into account when determining the Borrowing Base Amount, an amount
equal to the amount of the Borrowing Base Amount attributable to such ABL assets and the book value of the other ABL Priority Collateral
sold or otherwise disposed of in connection therewith (it being understood that other net proceeds may be agreed to be applied
to obligations in respect of Split-Priority Term Loan Debt regardless of whether Revolving Availability is less than the amount
specified in clause (x)(i) of the proviso to the first sentence of Section 2.11(c)); provided, that no such modification
will affect the application of funds contemplated by Section 2.11(c) during a Cash Sweep Period; and

 

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(ii)         Permitted
Split-Priority Intercreditor Agreements and Split-Priority Implementing Agreements may be entered into an amended, supplemented
or otherwise modified as provided in Section 9.18.

 

SECTION 9.03.         Expenses;
Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Agents and their
Affiliates, including the reasonable fees, charges and disbursements of counsel for the Agents, in connection with the syndication
of the credit facilities provided for herein, the preparation and administration of the Senior Loan Documents or any amendments,
modifications or waivers of the provisions thereof (whether or not the transactions contemplated hereby or thereby shall be consummated),
(ii) all reasonable out-of-pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment, renewal or
extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by any Agent,
any Issuing Bank or any Lender, including the fees, charges and disbursements of counsel for any Agent, any Issuing Bank or any
Lender, in connection with the enforcement or protection of its rights under or in connection with the Senior Loan Documents, including
its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

 

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(b)          The
Borrower shall indemnify each Agent, each Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution
or delivery of any Senior Loan Document, the performance by the parties to the Senior Loan Documents of their respective obligations
thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter
of Credit or the use of the proceeds therefrom (including any refusal by an Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter
of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property currently or formerly
owned or operated by the Borrower or any of the Subsidiaries, or any Environmental Liability related in any way to the Borrower
or any of the Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee.

 

(c)          To
the extent that the Borrower fails to pay any amount required to be paid by it to any Agent, any Issuing Bank or any Lender under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay to such Agent, such Issuing Bank or such Lender, as the
case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability
or related expense, as the case may be, was incurred by or asserted against such Agent, such Issuing Bank or such Lender in its
capacity as such. For purposes hereof, a Lender’s “pro rata share” shall be determined based upon its
share of the sum of the total Revolving Exposures, outstanding Term Loans and unused Commitments at the time.

 

(d)          To
the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising
out of, in connection with, or as a result of, this Agreement, any other Senior Loan Document or any other agreement or instrument
contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

 

(e)          All
amounts due under this Section shall be payable not later than 10 Business Days after written demand therefor.

 

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SECTION 9.04.         Successors
and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of
Credit), except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,
their successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit) and,
to the extent expressly contemplated hereby, the Related Parties of each of the Agents, the Issuing Banks and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)          (i)
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees (other than
a natural person) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments
and the Loans at the time owing to it), with the prior written consent (such consent not to be unreasonably withheld or delayed)
of:

 

(A)         the
Borrower; provided that (1) no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of
a Lender, an Approved Fund or, if an Event of Default under clause (a), (b), (h), or (i) of Article VII has occurred and is
continuing, any other assignee and (2) the Borrower shall be deemed to have consented to any such assignment unless it shall have
objected thereto within 10 Business Days after having received notice thereof; and

 

(B)         the
Administrative Agent; provided that no consent of the Administrative Agent shall be required for an assignment to an assignee
that is a Lender, an Affiliate of a Lender or an Approved Fund.

 

(ii)         Assignments
shall be subject to the following additional conditions:

 

(A)         except
in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, the amount of the Commitment or Loans of
the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such
assignment is delivered to the Administrative Agent) shall not be less than (1) with respect to Revolving Commitments and
Revolving Loans and Other Revolving Commitments and Other Revolving Loans, $5,000,000 and (2) with respect to Term Commitments
and Term Loans, $1,000,000 or, in each case, if smaller, the entire remaining amount of the assigning Lender’s Commitment
or Loans, unless each of the Borrower and the Administrative Agent shall otherwise consent; provided that (i) no such consent
of the Borrower shall be required if an Event of Default has occurred and is continuing and (ii) in the event of concurrent
assignments to two or more assignees that are Affiliates of one another, or to two or more Approved Funds managed by the same investment
advisor or by affiliated investment advisors, all such concurrent assignments shall be aggregated in determining compliance with
this subsection;

 

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(B)         each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement;

 

(C)         the
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a
processing and recordation fee of $3,500; provided that the Administrative Agent may, in its sole discretion, elect to waive
such processing and recordation fee in the case of any assignment; and

 

(D)         the
assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

 

(iii)        Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified
in each Assignment and Acceptance the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by
such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder
shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15,
2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply
with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with paragraph (c) of this Section.

 

(iv)        The
Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a
copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders,
and the Commitment of, and principal amount (and stated interest) of the Loans and LC Disbursements owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent
manifest error and the Borrower, the Agents, the Issuing Banks and the Lenders shall treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower, any other Agent, any Issuing Bank and any Lender at any
reasonable time and from time to time upon reasonable prior notice.

 

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(v)         Upon
its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an assignee, the assignee’s
completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section,
the Administrative Agent shall accept such Assignment and Acceptance and record the information contained therein in the Register.
No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this
paragraph.

 

(vi)        By
executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the assignee thereunder shall be deemed
to confirm to and agree with each other and the other parties hereto as follows: (A) such assigning Lender warrants that it
is the legal and beneficial owner of the interest being assigned thereby free and clear of any adverse claim and that its Commitment
and the outstanding balances of its Loans, in each case without giving effect to assignments thereof that have not become effective,
are as set forth in such Assignment and Acceptance; (B) except as set forth in clause (A) above, such assigning
Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or any other Senior Loan Document or any other instrument or document furnished pursuant
hereto or thereto, or the execution, legality, validity, enforceability, genuineness, sufficiency or value of any of the foregoing,
or the financial condition of the Loan Parties or the performance or observance by the Loan Parties of any of their obligations
under this Agreement or under any other Senior Loan Document or any other instrument or document furnished pursuant hereto or thereto;
(C) each of the assignee and the assignor represents and warrants that it is legally authorized to enter into such Assignment
and Acceptance; (D) such assignee confirms that it has received a copy of this Agreement, together with copies of any amendments
or consents entered into prior to the date of such Assignment and Acceptance and copies of the most recent financial statements
delivered pursuant to Section 5.01 and such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (E) such assignee will independently and without reliance
upon the Agents, such assigning Lender or any other Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (F) such assignee
appoints and authorizes the Agents to take such action as agents on its behalf and to exercise such powers under this Agreement
and the other Senior Loan Documents as are delegated to them by the terms hereof and thereof, together with such powers as are
reasonably incidental thereto; and (G) such assignee agrees that it will perform in accordance with their terms all the obligations
that by the terms of this Agreement are required to be performed by it as a Lender.

 

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(c)          (i)
Any Lender may, without the consent of or notice to the Borrower, the Agents, the Issuing Banks or the Swingline Lender, sell participations
to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that
(A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Agents, the Issuing
Banks and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification
or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will
not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section
9.02(b)(i), (ii) or (iii) that affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant
also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be
subject to Section 2.18(c) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose
as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the
principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Senior Loan
Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose
all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's
interest in any Commitments, Loans, Letters of Credit or its other obligations under any Senior Loan Document) to any Person except
to the extent that such disclosure is necessary to establish that such Commitments, Loans, Letters of Credit or other obligation
is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register
shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register
as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance
of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant
Register.

 

(ii)         A
Participant shall not be entitled to receive any greater payment under Section 2.15 or 2.17 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.17(f) as though it were
a Lender.

 

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(d)          Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including, without limitation, any pledge or assignment to secure obligations to a Federal Reserve
Bank or any central bank having jurisdiction over such Lender, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any
of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(e)          In
the case of any Lender that is a fund that invests in bank loans, such Lender may, without the consent of the Borrower or the Administrative
Agent, assign or pledge all or any portion of its rights under the Senior Loan Documents, including the Loans and promissory notes
or any other instrument evidencing its rights as a Lender under the Senior Loan Documents, to any holder of, trustee for, or any
other representative of holders of obligations owed or securities issued by such fund, as security for such obligations or securities;
provided that any foreclosure or similar action by such trustee or representative shall be subject to the provisions of
this Section 9.04 concerning assignments.

 

SECTION 9.05.         Survival.
All covenants, agreements, representations and warranties made by the Loan Parties in the Senior Loan Documents and in the certificates
or other instruments delivered in connection with or pursuant to this Agreement or any other Senior Loan Document shall be considered
to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Senior Loan Documents
and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that any Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default
or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless
of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters
of Credit and the Commitments or the termination of this Agreement or any provision hereof.

 

SECTION 9.06.         Integration;
Effectiveness. This Agreement, the other Senior Loan Documents and any separate letter agreements with respect to fees payable
to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall
become effective as provided in Section 4.01.

 

SECTION 9.07.         Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.

 

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SECTION 9.08.         Right
of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate
to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing
under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement
and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

 

SECTION 9.09.         Governing
Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance with and governed by
the law of the State of New York.

 

(b)          The
Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Senior Loan Document,
or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the
extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or any other Senior Loan Document shall affect any right that any Agent, the Issuing Bank or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement or any other Senior Loan Document against the Borrower
or its properties in the courts of any jurisdiction.

 

(c)          The
Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement or any other Senior Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court.

 

(d)          Each
party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01. Nothing
in this Agreement or any other Senior Loan Document will affect the right of any party to this Agreement to serve process in any
other manner permitted by law.

 

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SECTION 9.10.         WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER SENIOR LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION.

 

SECTION 9.11.         Headings.
Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

SECTION 9.12.         Confidentiality.
Each of the Agents, the Issuing Banks and the Lenders agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, trustees, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena
or similar legal process (including any Federal Reserve Bank or central bank pursuant to Section 9.04(d)), (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to
this Agreement or any other Senior Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement, (g) with the consent of the Borrower, (h) to
any pledgee referred to in Section 9.04(e) or any direct or indirect contractual counterparty in any Hedging Agreement (or
to any such contractual counterparty’s professional advisor), so long as such pledgee or contractual counterparty (or such
professional advisor) agrees to be bound by the provisions of this Section 9.12, or (i) to the extent such Information
(i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to any Agent,
any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this Section,
“Information” means all information received from the Borrower relating to the Borrower or its business, other
than any such information that is available to any Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure
by the Borrower. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality
of such Information as such Person would accord to its own confidential information. Notwithstanding anything in this Agreement
or in any other Senior Loan Document to the contrary, the Borrower and each Lender (and each employee, representative or other
agent of the Borrower) may disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax
structure of the Transactions and all materials of any kind (including opinions or other tax analyses) that are provided to the
Borrower relating to such U.S. tax treatment and U.S. tax structure.

 

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SECTION 9.13.         Interest
Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively
the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted
for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest
payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum
Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable
as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect
of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

SECTION 9.14.         Collateral
Trust and Intercreditor Agreement; Senior Lien Intercreditor Agreement. Each Lender, each Issuing Bank and each
Agent hereby authorizes each Agent to enter into (a) the Collateral Trust and Intercreditor Agreement, (b) the Senior
Lien Intercreditor Agreement effective upon the date of the first incurrence of Additional Senior Debt Obligations in compliance
with this Agreement, (c) amendments to the Collateral Trust and Intercreditor Agreement and the Senior Lien Intercreditor
Agreement to the extent necessary to reflect the incurrence of any Additional Senior Debt Obligations or Second Priority Debt in
compliance with this Agreement, (d) any other additional intercreditor agreement with any Second Priority Representative with
respect to the subordination of the Lien of such Second Priority Representative on the same basis as set forth in the Collateral
Trust and Intercreditor Agreement to the Liens of the Collateral Agent for the benefit of the Senior Secured Parties, (e) any
supplements to any agreements referred to in the foregoing clauses (a) through (d) in compliance with such documents and (f) each
other Senior Collateral Document on its behalf, and agrees that the Administrative Agent and the Collateral Agent may enforce the
rights and remedies of the Lenders under each Senior Loan Document to the extent provided in the Collateral Trust and Intercreditor
Agreement, the Senior Lien Intercreditor Agreement and each other Senior Collateral Document.

 

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SECTION 9.15.         Cash
Sweep. (a) If and on each occasion that (i) an Event of Default exists, (ii) on each of three consecutive Business Days the
Revolver Availability is less than or equal to $225,000,000 (in the case of days prior to the 8.00% Secured Note Repayment Date)
or $275,000,000 (in the case of days on or after the 8.00% Secured Note Repayment Date), or (iii) the Revolver Availability on
any day is less than or equal to $175,000,000 (in the case of days prior to the 8.00% Secured Note Repayment Date) or $200,000,000
(in the case of days on or after the 8.00% Secured Note Repayment Date), the Administrative Agent may upon its determination, and
shall upon request by any Borrowing Base Agent or the Required Lenders, immediately deliver Cash Sweep Notices.

 

(b)          During
a Cash Sweep Period, if (i) there is no Event of Default and (ii) the Revolver Availability for each day during the preceding 30-day
period is greater than $225,000,000 (in the case of days prior to the 8.00% Secured Note Repayment Date) or $275,000,000 (in the
case of days on or after the 8.00% Secured Note Repayment Date), then the Administrative Agent shall automatically rescind any
Cash Sweep Notice and shall be prohibited from delivering any other Cash Sweep Notice (unless and until the occurrence of an event
set forth in paragraph (a) of this Section).

 

(c)          The
Administrative Agent shall send a Cash Sweep Notice on each occasion of the occurrence of an event set forth in Section 9.15(a)
if required by Section 9.15(a).

 

SECTION 9.16.         Electronic
Communications. (a) Notwithstanding anything in any Senior Loan Document to the contrary, the Borrower hereby agrees that it
will use its reasonable best efforts to provide to the Administrative Agent all information, documents and other materials that
it is obligated to furnish to the Administrative Agent pursuant to the Senior Loan Documents, including, without limitation, all
notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding
any such communication that (i) relates to a request for a new, or a conversion of an existing, Borrowing or other extension
of credit (including any election of an interest rate or Interest Period relating thereto), (ii) relates to the payment of
any principal or other amount due under any Senior Loan Document prior to the scheduled date therefor, (iii) provides notice
of any Default or Event of Default under any Senior Loan Document or (iv) is required to be delivered to satisfy any condition
set forth in Section 4.01 and/or 4.02 (all such non-excluded communications being referred to herein collectively as the “Communications”),
by transmitting the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to oploanswebadmin@citigroup.com,
with a copy to thomas.halsch@citi.com. In addition, the Borrower agrees to continue to provide the Communications to the Administrative
Agent in the manner specified in the Senior Loan Documents, but only to the extent requested by the Administrative Agent.

 

(b)          The
Borrower further agrees that the Administrative Agent may make the Communications available to the Lenders by posting the Communications
on Intralinks, Fixed Income Direct or a substantially similar electronic transmission system (each such system, a “Platform”).
The Borrower acknowledges that the distribution of material through an electronic medium is not necessarily secure and that there
are confidentiality and other risks associated with such distribution.

 

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(c)          EACH
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF ANY PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR
OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR ANY PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE
AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY,
THE “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY OTHER LOAN PARTY, ANY LENDER OR ANY OTHER PERSON OR ENTITY
FOR DAMAGES OF ANY KIND, including, without limitation, direct or indirect, special, incidental
or consequential damages, losses or expenses (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S
OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF
ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM
SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

(d)          The
Administrative Agent agrees that the receipt of the Communications by it at its e-mail address set forth in Section 9.01 shall
constitute effective delivery of the Communications to the Administrative Agent for purposes of this Section. Each Lender agrees
that notice to it (as provided in the next sentence) specifying that the Communications have been posted to a Platform shall constitute
effective delivery of the Communications to such Lender for purposes of this Section. Each Lender agrees (i) to notify the
Administrative Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail address
to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such e-mail
address.

 

(e)          Nothing
in this Section 9.16 shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication
pursuant to any Senior Loan Document in any other manner specified in such Senior Loan Document.

 

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SECTION 9.17.         USA
Patriot Act. Each Lender and each Issuing Bank hereby notifies the Borrower that pursuant to the requirements of the USA Patriot
Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender or Issuing Bank to identify the Borrower in accordance
with its requirements. The Borrower shall promptly, following a request by the Administrative Agent, any Lender or any Issuing
Bank, provide all documentation and other information that the Administrative Agent, such Lender or such Issuing Bank reasonably
requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering
rules and regulations, including the USA Patriot Act.

 

SECTION 9.18.         Certain
Permitted Intercreditor Arrangements. (a) Each of the Lenders, the Issuing Banks and the other Senior Secured Parties acknowledges
that obligations of the Borrower and the other Loan Parties under the Permitted Split-Priority Term Loan Debt, upon incurrence
thereof, may be secured by Liens on assets of the Borrower and the other Loan Parties that constitute Collateral, and that the
relative Lien priority and other creditor rights of the Senior Secured Parties and the secured parties in respect of Permitted
Split-Priority Term Loan Debt will be set forth in or pursuant to Split-Priority Implementing Agreements and/or a Permitted Split-Priority
Intercreditor Agreement. Each of the Lenders, the Issuing Banks and the other Senior Secured Parties hereby irrevocably authorizes
and directs each of the Administrative Agent and the Collateral Agent to execute and deliver, in each case on behalf of such Senior
Secured Party and without any further consent, authorization or other action by such Senior Secured Party, (i) from time to time
upon the request of the Borrower, in connection with the establishment, incurrence, amendment, refinancing or replacement of any
Permitted Split-Priority Term Loan Debt, any Split-Priority Implementing Agreements and/or Permitted Split-Priority Intercreditor
Agreements (it being understood and agreed that each of the Administrative Agent and the Collateral Agent is hereby authorized
and directed to determine the terms and conditions of any such Split-Priority Implementing Agreements and/or Permitted Split-Priority
Intercreditor Agreements as contemplated by the definitions of those terms herein (but subject to approvals of the Borrowing Base
Agent contemplated by such definitions) and that notwithstanding anything herein to the contrary, neither the Administrative Agent
nor the Collateral Agent shall be liable or responsible for any loss, cost or expense suffered by any Lender, any Issuing Bank
or any other Senior Secured Party, or by any Loan Party, as a result of, any such determination) and (ii) any documents relating
thereto.

 

(b)          Each
of the Lenders, the Issuing Banks and the other Senior Secured Parties hereby irrevocably (i) consents to the subordination of
the Liens on the Non-ABL Priority Collateral securing the Senior Secured Obligations on the terms set forth in each Split-Priority
Implementing Agreement, including any Permitted Split-Priority Intercreditor Agreement, (ii) agrees that, upon the execution and
delivery thereof, such Secured Party will be bound by the provisions of each Split-Priority Implementing Agreement as if it were
a signatory thereto and will take no actions contrary to the provisions thereof, (iii) agrees that no Senior Secured Party shall
have any right of action whatsoever against the Administrative Agent, the Collateral Agent or any other Agent as a result of any
action taken by such Agent pursuant to this Section or any other provision of this Agreement relating to the negotiation, execution
or delivery of Split-Priority Implementing Agreements or taken in accordance with the terms of any such Split-Priority Implementing
Agreement and (iv) authorizes and directs the Administrative Agent and the Collateral Agent to carry out the provisions and
intent of each such document.

 

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(c)          Each
of the Lenders, the Issuing Banks and the other Senior Secured Parties hereby irrevocably further authorizes and directs each of
the Administrative Agent and the Collateral Agent to execute and deliver, in each case on behalf of such Senior Secured Party and
without any further consent, authorization or other action by such Senior Secured Party (but subject to any required approvals
of the Borrowing Base Agent contemplated by the definition of “Split-Priority Implementing Agreements”), any amendments,
supplements or other modifications of each Split-Priority Implementing Agreement that the Borrower may from time to time request
(i) to give effect to any establishment, incurrence, amendment, extension, renewal, refinancing or replacement of any Permitted
Split-Priority Term Loan Debt, (ii) to confirm for any party that a Split-Priority Implementing Agreement is effective and binding
upon the Administrative Agent or the Collateral Agent, as the case may be, on behalf of the Senior Secured Parties or (iii) to
effect any other amendment, supplement or modification so long as the resulting agreement would constitute a Split-Priority Implementing
Agreement if executed at such time as a new agreement.

 

(d)          Each
of the Lenders, the Issuing Banks and the other Senior Secured Parties acknowledges and agrees that CNAI, or one or more of its
Affiliates may (but is not obligated to) act as administrative agent, collateral agent or a similar representative for the holders
of any Permitted Split-Priority Term Loan Debt and, in such capacity, may be a party to any Split-Priority Implementing Agreement.
Each of the Lenders, the Issuing Banks and the other Senior Secured Parties waives any conflict of interest in connection therewith
and agrees not to assert against CNAI or any of its Affiliates any claims, causes of action, damages or liabilities of whatever
kind or nature relating thereto.

 

(e)          The
Administrative Agent and the Collateral Agent shall have the benefit of the provisions of Article VIII and Section 9.03 with
respect to all actions taken by it pursuant to this Section or in accordance with the terms of any Split-Priority Implementing
Agreement to the full extent thereof.

 

(f)          Each
Senior Secured Party, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Collateral and of
the Guarantees of the Secured Obligations provided under the Senior Loan Documents, to have agreed to the provisions of this Section
9.18.

 

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SECTION 9.19.        
Loan Modification Offers. (a) The Borrower may, by written notice to the Administrative Agent from time to time, make one or
more offers (each, a “Loan Modification Offer”) to all the Lenders of one or more Classes of Loans and/or Commitments
(each Class subject to such a Loan Modification Offer, an “Affected Class”) to make one or more Permitted Amendments
(as defined in paragraph (c) below) pursuant to procedures reasonably specified by the Administrative Agent and reasonably
acceptable to the Borrower. Such notice shall set forth (i) the terms and conditions of the requested Permitted Amendment
and (ii) the date on which such Permitted Amendment is requested to become effective (which shall not be less than five Business
Days nor more than 30 Business Days after the date of such notice). Permitted Amendments shall become effective only with
respect to the Loans and Commitments of the Lenders of the Affected Class that, at their discretion, accept the applicable Loan
Modification Offer (such Lenders, the “Accepting Lenders”) and, in the case of any Accepting Lender, only with
respect to such Lender’s Loans and Commitments of such Affected Class as to which such Lender's acceptance has been made.

 

(b)         The
Borrower and each Accepting Lender shall execute and deliver to the Administrative Agent a Loan Modification Agreement and such
other documentation as the Administrative Agent shall reasonably specify to evidence the acceptance of the Permitted Amendments
and the terms and conditions thereof. The Administrative Agent shall promptly notify each Lender as to the effectiveness of each
Loan Modification Agreement. Each of the parties hereto hereby agrees that, upon the effectiveness of any Loan Modification Agreement,
this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the
Permitted Amendments evidenced thereby and only with respect to the Loans and Commitments of the Accepting Lenders of the Affected
Class (including any amendments necessary to treat the Loans and Commitments of the Accepting Lenders of the Affected Class as
Term Loans, Other Revolving Loans and/or Other Revolving Credit Commitments). Notwithstanding the foregoing, no Permitted Amendment
shall become effective under this Section 9.19 unless the Administrative Agent, to the extent so reasonably requested by the
Administrative Agent, shall have received legal opinions, board resolutions and/or officers’ certificates consistent with
those delivered on the 2015 Restatement Effective Date under Section 1.3(iv) and (v) of the 2015 Amendment and Restatement
Agreement, other than changes to such legal opinions resulting from a change in law, change in fact or change to counsel’s
form of opinion that are reasonably satisfactory to the Administrative Agent.

 

“Permitted Amendments”
means (i) an extension of the final maturity date of the applicable Loans and/or Commitments of the Accepting Lenders, (ii) a
reduction or elimination of the scheduled amortization of the applicable Loans of the Accepting Lenders, (iii) an increase
in the Applicable Rate with respect to the applicable Loans and/or Commitments of the Accepting Lenders and the payment of additional
fees to the Accepting Lenders (such increase and/or payments to be in the form of cash, Equity Interests or other property to the
extent not prohibited by this Agreement); provided that such increase and payment are not in excess of the market interest
rate or payment, as applicable, with respect to such type of loans or commitments at the time and (iv) the conversion of Revolving
Loans to Term Loans; provided that any such conversion will constitute a Permitted Amendment only if such Term Loans could
be incurred as Refinancing Indebtedness in respect of such Revolving Loans pursuant to Section 6.01(c).

 

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Exhibit B

 

    	 

    	 

    

 

Annex Iex1011.htm

LOAN AGREEMENT

 

December 12, 2014

City Group LLC (the “Lender”) of 1201 Orange Street, Suite 600, Wilmington, DE 19801, advanced total of USD$70,000 (the “Principal Sum”) to Cell MedX Corp. (the “Borrower”) of 4575 Dean Martin Drive, STE 2206, Las Vegas, NV 89103.  The Lender advanced the funds on December 12, 2014.

 

The Borrower agrees to repay the Principal Sum on demand, together with interest calculated and compounded monthly at the rate of six (6) per cent per year (the “Interest”) from December 12, 2014.  The Borrower is liable for repayment for the Principal Sum and accrued Interest and any costs that the Lender incurs in trying to collect the Principal Sum and the Interest.

 

The Borrower will evidence the debt and its repayment of the Principal Sum and the Interest with a promissory note in the attached form.

 

The Lender may, in its sole discretion, provide the Borrower with written instructions to convert any payment of Principal Sum or Interest into restricted shares of common stock in the capital of the Borrower. Payments will be converted into fully paid, non-assessable and, subject to United States securities laws, restricted shares of common stock in the capital of the Borrower (the “Conversion Shares”) at a conversion price of USD$0.50 per share. The Borrower covenants to cause the Conversion Shares to be issued in the name of the Lender, or such party as the Lender may direct.

 

 

LENDER                                                                                    BORROWER

City Group LLC                                                                      Cell MedX Corp.

/s/ Tom Sharp                                                                           /s/ Frank McEnulty

By: Tom Sharp                                                                          By: Frank McEnulty, CEO & President

  

  

  

PROMISSORY NOTE

Principal Amount:  USD$70,000                                                                               December 12, 2014

For value received Cell MedX Corp., (the “Borrower”) promises to pay on demand to the order of City Group LLC (the “Lender”) the sum of $70,000 lawful money of United States of America (the “Principal Sum”) together with interest on the Principal Sum from December 12, 2014 (“Effective Date”) both before and after maturity, default and judgment at the Interest Rate as defined below.

For the purpose of this promissory note, Interest Rate means six (6) per cent per year.  Interest at the Interest Rate must be calculated and compounded monthly not in advance from and including the Effective Date (for an effective rate of 6.17% per annum calculated monthly), and is payable together with the Principal Sum when the Principal Sum is repaid.

The Borrower may repay the Principal Sum and the Interest in whole or in part at any time.

The Lender may, in its sole discretion, have any repayment of Principal Sum or Interest converted into restricted shares of common stock in the capital of the Borrower in accordance with the terms and conditions of the attached loan agreement.

The Borrower waives presentment, protest, notice of protest and notice of dishonour of this promissory note.

 

BORROWER

Cell MedX Corp.

/s/ Frank McEnulty

By: Frank McEnulty, CEO & President

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