Document:

ex10-1.htm

    
      Annex I

       

      REFINANCING
AMENDMENT NO. 2 dated as of June 26, 2009 (this “Amendment”),
relating to the Credit Agreement dated as
of June 27, 2001,
as amended and restated as of
June
5,
2009, as
amended by Refinancing Amendment No. 1 dated as of June 10, 2009 (the
“Credit
Agreement”), among Rite Aid Corporation, a corporation organized under
the laws of the State of Delaware (the “Borrower”),
the lenders from time to time party thereto (the “Lenders”),
Citicorp North America, Inc., as administrative agent and collateral processing
agent (in such capacities, the “Administrative
Agent”), and the other agents party thereto.

       

      RECITALS

       

      A.  Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement.  The rules of
construction specified in Section 1.03 of the Credit Agreement also apply to
this Amendment.

       

      B.   The
Credit Agreement permits the Borrower to obtain from any Lender or Additional
Lender Refinancing Indebtedness in respect of the Revolving Commitments (and
Loans outstanding thereunder) in the form of new Revolving Commitments and
additional Revolving Loans pursuant to a Refinancing Amendment (provided that
all Revolving Commitments outstanding immediately prior to the effectiveness of
the Refinancing Amendment shall be terminated and replaced pursuant to such
Refinancing Amendment).

       

      C.  On
the Amendment Effective Date (as defined below), the Borrower intends to (a)
terminate, pursuant to Section 2.08(b) of the Credit Agreement, all Revolving
Commitments in effect immediately prior to the Amendment Effective Date and (b)
obtain, pursuant to Section 6.01(c) of the Credit Agreement, new Revolving
Commitments in an aggregate amount of $1,000,000,000 from the lenders signatory
hereto (the “New
Revolving Lenders”).  The proceeds of Revolving Loans (if any)
made on the Amendment Effective Date pursuant to such new Revolving Commitments,
together with the proceeds from the issuance of Permitted First Priority Debt
referred to in Section 1.3(c) below, will be used on the Amendment Effective
Date (a) to make the payments described in
Section 1.3(d) hereof and (b) to pay fees and expenses incurred in
connection with the foregoing.

       

      D.  This
Amendment is a Refinancing Amendment pursuant to Section 6.01(c) of the Credit
Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      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
Subsidiary Loan Parties, the New Revolving Lenders and the Administrative Agent
hereby agree as follows:

       

      ARTICLE
I

       

      Amendment

       

      SECTION
1.1.  Amendment of the Credit
Agreement. i) The definition of the term “Alternate Base Rate” set forth
in Section 1.01 of the Credit Agreement is hereby amended by replacing the
period at the end of the first sentence thereof with the following clause: “;
provided further that solely
for purposes of calculating interest in respect of any Revolving Loan that is an
ABR Loan the Alternate Base Rate will be deemed to be 4.00% per annum on any day
when the Alternate Base Rate would otherwise be less than 4.00% per
annum.”

       

      (b)  The
definition of the term “Applicable Rate” set forth in Section 1.01 of the Credit
Agreement is hereby deleted and replaced with the following
definition:

       

      “Applicable Rate”
means, on any day, (a) with respect to any ABR Tranche 2 Term Loan, a
rate per annum of 0.75% and, with respect to any Eurodollar Tranche 2 Term
Loan, a rate per annum of 1.75%, (b) with respect to any ABR Tranche 3 Term
Loan, a rate per annum of 2.00% and, with respect to any Eurodollar Tranche 3
Term Loan, a rate per annum of 3.00%, (c) with respect to any ABR Loan
(other than a Tranche 2 Term Loan, a Tranche 3 Term Loan, an Other
Revolving Loan or an Other Term Loan) or Eurodollar Loan (other than a
Tranche 2 Term Loan, a Tranche 3 Term Loan, an Other Revolving Loan or an
Other Term Loan), as the case may be, (i) from June 26, 2009 through
November 28, 2009, (A) 3.50% in the case of any ABR Loan and 4.50% 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,
(d) with respect to any Other Revolving Loan or Other Term Loan, the
“Applicable Rate” set forth in the Refinancing Amendment or Loan Modification
Agreement relating thereto and (e) with respect to the commitment fees payable
hereunder, (i) from June 26, 2009 through November 28, 2009, 1.00% 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:

       

      
        
          
            
              	
                      RATING:

                    	
                      ABR
      Spread

                      (bps)

                    	
                      Eurodollar
      Spread

                      (bps)

                    
	
                      Category
      1

                      Average
      Revolver Availability greater than $650,000,000

                    	
                      325

                    	
                      425

                    
	
                      Category
      2

                      Average
      Revolver Availability greater than $350,000,000 but less than or equal
      to $650,000,000

                    	
                      350

                    	
                      450

                    
	
                      Category
      3

                      Average
      Revolver Availability less than or equal
    to $350,000,000

                    	
                      375

                    	
                      475

                    

            

          

        

      

       

      

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
         

        
          
            
              
                
                  
                    	
                            RATING

                          	
                            Commitment Fee
      Rate

                            (bps)

                          
	
                            Category
      1

                            Average
      Revolver Availability greater than $500,000,000

                          	
                            100bps

                          
	
                            Category
      2

                            Average
      Revolver Availability less than or equal
      to  $500,000,000

                          	
                            75bps

                          

                  

                

              

            

          

        

        

      

      (c)  The
definition of the term “LIBO Rate” set forth in Section 1.01 of the Credit
Agreement is hereby amended by (i) inserting in the last sentence thereof
immediately after the text “Notwithstanding the foregoing,” the text “(a)” and
(ii) replacing the period at the end of the last sentence thereof with the
following text: “ and (b) solely for purposes of calculating interest in respect
of any Revolving Loan that is a Eurodollar Loan, the LIBO Rate in respect of any
applicable Interest Period will be deemed to be 3.00% per annum if the LIBO Rate
for such Interest Period calculated pursuant to the foregoing provisions would
otherwise be less than 3.00% per annum.”

       

      (d)  The definition of the term “Revolving/Tranche 1 Term
Maturity Date” set forth in
Section 1.01 of the Credit Agreement is hereby deleted and replaced with the
following definition (which shall be placed in the appropriate alphabetical
order):

       

      “Revolving Maturity
Date” means September 30, 2012.

       

      Each
reference in the Credit Agreement to “Revolving/Tranche 1 Term Maturity Date”
shall be replaced with a reference to “Revolving Maturity Date”.

       

      (e)  Section 2.12(a) of the Credit Agreement
is hereby amended by deleting the text “rate of 0.25%” set forth therein and inserting in its place the
text “Applicable
Rate”.

       

      SECTION
1.2.  Revolving
Commitments. ii) Subject to the terms and conditions set forth herein,
effective as of the Amendment
Effective Date, all Revolving Commitments in effect immediately prior to
the Amendment 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 or (ii) the
obligation of the Swingline Lender to make Swingline Loans pursuant to Section
2.04 of the Credit Agreement, in each case as in effect immediately prior to the
Amendment Effective Date.

       

      (b)  Subject
to the terms and conditions set forth herein, on the Amendment Effective Date,
simultaneously with the termination of the Revolving Commitments pursuant to

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      clause
(a) above, (i) each Lender that has executed and delivered to the
Administrative Agent, on or prior to the Amendment Effective Date, a signature
page to this Amendment 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 (the “New Revolving
Commitments”) 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 Revolving Commitment of each
New Revolving Lender, and the Loans made by each New Revolving Lender pursuant
to such Revolving Commitments, shall constitute a “Revolving Commitment” and
“Revolving Loans”, respectively, under the Credit Agreement and (ii) all Letters
of Credit issued prior to the Amendment Effective Date shall continue to be
Letters of Credit issued pursuant to the Credit Agreement.

       

      (d)  The
termination of the Existing Revolving Commitments pursuant to
Section 1.2(a) above, and the effectiveness of the New Revolving
Commitments pursuant to Section 1.2(b) above, in each case on the Amendment
Effective Date, are subject to the satisfaction of the following
conditions:

       

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

       

      (ii)
The Collateral and Guarantee Requirement shall have been satisfied.

       

      (iii)
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 Lenders under the Credit
Agreement, including the New Revolving Lenders, and dated the Amendment
Effective Date, in substantially the forms delivered in connection with
Refinancing Amendment No. 1, modified, however, to address the New Revolving
Commitments and this Amendment, 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 Amendment 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.

       

      (iv)
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 the Amendment and
the other documents contemplated hereby, all in form and substance reasonably
satisfactory to the Administrative Agent.

       

      (v)
The Administrative Agent shall
have received a certificate, dated the Amendment Effective Date and signed by a
Financial Officer of the Borrower, certifying that the representations and
warranties set forth in Section 2.1 hereof are true and correct as of the
Amendment Effective Date.

       

      (vi)
If any Revolving Loans are to be made on the Amendment Effective Date, the
Administrative Agent shall have received a borrowing request in a form
acceptable to the Administrative Agent requesting that the New Revolving Lenders
make the Revolving Loans to be made to the Borrower on the Amendment Effective
Date.

       

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

       

      (viii)
The conditions to effectiveness of this Amendment set forth in Section 1.3
hereof (other than paragraph (b) thereof) shall have been
satisfied.

       

      (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.

       

      SECTION
1.3.  Amendment
Effectiveness.  The Amendment shall become effective as of the
first date (the “Amendment Effective
Date”) on which the following conditions have been
satisfied:

       

      (a)  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 Subsidiary Loan Party, (iii) each New
Revolving Lender and (iv) the Administrative Agent.  The
aggregate amount of Revolving Commitments shall constitute Refinancing
Indebtedness permitted by the Restated Credit Agreement.

       

      (b)  The
conditions to the effectiveness of the New Revolving Commitments set forth in
Section 1.2(d) hereof (other than clause (viii) thereof) shall have been
satisfied.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)  The Borrower shall have obtained
Revolving Commitments, Other Term Loans and gross proceeds of Permitted First Priority Debt (or any
combination of the foregoing) in an aggregate amount of not less than
$1,895,000,000.

       

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

       

      (e)  To
the extent invoiced prior to the Amendment Effective Date, the Administrative
Agent and the Borrowing Base Agents shall have received payment or reimbursement
of their reasonable out-of-pocket expenses in connection with this Amendment,
including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent and the Borrowing Base Agents.

       

      (f)  To
the extent invoiced prior to the Amendment Effective Date, Citigroup Global
Markets Inc. 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
Amendment Effective Date in connection with this Amendment and the transactions
contemplated hereby.

       

      The
Administrative Agent shall notify the Borrower, the New Revolving Lenders and
the other Lenders of the Amendment Effective Date and such notice shall be
conclusive and binding.  Notwithstanding the foregoing, the amendment
effected hereby shall not become effective, and the obligations of the New
Revolving Lenders hereunder to provide the New Revolving Commitments will
automatically terminate, if each of the conditions set forth or referred to in
Sections 1.2(d) and 1.3 hereof has not been satisfied at or prior to
11:59 p.m., New York City time, on June 26, 2009.

       

      ARTICLE
II

       

      Miscellaneous

       

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

       

      (i)
This Amendment has been duly authorized, executed and delivered by the Borrower
and constitutes, and the Credit Agreement, as amended hereby on the Amendment
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.

       

      SECTION
2.2.  Effect
of Amendment.  iv)Except as expressly set forth herein, this
Amendment 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 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 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 Credit
Agreement or any other Senior Loan Document in similar or different
circumstances.  This Amendment shall apply to and be effective only
with respect to the provisions of the Credit Agreement and the other Senior Loan
Documents specifically referred to herein.

       

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

       

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

       

      SECTION
2.4.  Costs
and Expenses.  The Borrower agrees to reimburse the
Administrative Agent and other Persons designated by the Borrower as “Arrangers”
in respect of this Amendment for their respective reasonable out-of-pocket
expenses in connection with this Amendment, including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent and such other
Persons.

       

      SECTION
2.5.  Counterparts.  This
Amendment 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 Amendment by facsimile transmission or other
electronic imaging means shall be effective as delivery of a manually executed
counterpart hereof.

       

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their officers as of the date first above
written.

       

      
        
          	 	
                  RITE
      AID CORPORATION,

                
	 	
                  by

                
	 	 
      	
                       /s/
      Frank Vitrano

                
	 	 
      	
                  Name:
      Frank Vitrano

                
	 	 
      	
                  Title:   Senior
      Executive Vice President,

                             Chief
      Financial Officer and Chief

                             Administrative
      Officer

                

        

      

      

      

      
        
          	 	
                  EACH
      OF THE SUBSIDIARIES LISTED ON SCHEDULE A HERETO,

                
	 	
                  by

                
	 	 
      	
                        /s/
      Marc Strassler

                
	 	 
      	
                  Name:
      Marc Strassler

                
	 	 
      	
                  Title:   Senior
      Vice President & Assistant

                             Secretary

                

        

      

      

      

      
        
          	 	
                  EACH
      OF THE SUBSIDIARIES LISTED ON SCHEDULE B HERETO,

                
	 	
                  by

                
	 	 
      	
                        /s/
      Marc Strassler

                
	 	 
      	
                  Name:
      Marc Strassler

                
	 	 
      	
                  Title:   Authorized
      Signatory

                

        

      

      

      

      
        
          	 	
                  CITICORP
      NORTH AMERICA, INC., 

                  individually
      and as Administrative Agent and Collateral Processing
    Agent,

                
	 	
                  by

                
	 	 
      	
                              /s/
      Brendan Mackay

                
	 	 
      	
                  Name:  Brendan
      Mackay

                
	 	 
      	
                  Title:    Vice
      President

                

        

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	 
      	
                  New
      Revolving Lender signature page to

                
	 
      	
                  the
      Refinancing Amendment No. 2 to the Rite Aid Credit
    Agreement

                

        

         

      

      
        
          
            	
                    To
      approve the Amendment:

                     

                    Cole
      Taylor Bank

                  	 
      
	
                    by

                  	 
      
	 
      	
                             
         /s/ Kavian Boots

                  	 
      
	 
      	Name: 
      Kavian
      Boots	 
      
	 
      	Title:   
      Managing
      Director	 
      

          

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	 
      	
                  New
      Revolving Lender signature page to

                
	 
      	
                  the
      Refinancing Amendment No. 2 to the Rite Aid Credit
    Agreement

                

        

         

      

      
        
          
            	
                    To
      approve the Amendment:

                     

                    PNC
      Bank, National Association

                  	 
      
	
                    by

                  	 
      
	 
      	
                              
        /s/ John Trieu

                  	 
      
	 
      	Name: 
      John
      Trieu	 
      
	 
      	Title:   
      Vice
      President	 
      

          

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	 
      	
                  New
      Revolving Lender signature page to

                
	 
      	
                  the
      Refinancing Amendment No. 2 to the Rite Aid Credit
    Agreement

                

        

         

      

      
        
          
            	
                    To
      approve the Amendment:

                     

                    Bank
      of America, N.A.

                  	 
      
	
                    by

                  	 
      
	 
      	
                             
         /s/ Richard D. Hill, Jr.

                  	 
      
	 
      	Name: 
      Richard
      D. Hill, Jr.	 
      
	 
      	Title:    Managing
      Director	 
      

          

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	 
      	
                  New
      Revolving Lender signature page to

                
	 
      	
                  the
      Refinancing Amendment No. 2 to the Rite Aid Credit
    Agreement

                

        

         

      

      
        
          
            	
                    To
      approve the Amendment:

                     

                    Wells
      Fargo Retail Finance, LLC

                  	 
      
	
                    by

                  	 
      
	 
      	
                              
        /s/ Danielle M. Baldinelli

                  	 
      
	 
      	Name: 
      Danielle
      M. Baldinelli	 
      
	 
      	Title:   
      Assistant
      Vice President	 
      

          

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      
        	 
      	
                New
      Revolving Lender signature page to

              
	 
      	
                the
      Refinancing Amendment No. 2 to the Rite Aid Credit
    Agreement

              

      

    

     

    
      
        
          
            	
                    To
      approve the Amendment:

                     

                    GMAC
      COMMERCIAL FINANCE LLC, for itself and as Master Servicer on behalf of CF
      Blackburn, LLC

                  	 
      
	
                    by

                  	 
      
	 
      	
                              
        /s/ Michael Malcangi

                  	 
      
	 
      	Name: 
      Michael
      Malcangi	 
      
	 
      	Title:   
      Vice
      President	 
      

          

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	 
      	
                  New
      Revolving Lender signature page to

                
	 
      	
                  the
      Refinancing Amendment No. 2 to the Rite Aid Credit
    Agreement

                

        

         

      

      
        
          
            	
                    To
      approve the Amendment:

                     

                    General
      Electric Capital Corporation

                  	 
      
	
                    by

                  	 
      
	 
      	
                              
        /s/ Peter F. Crispino

                  	 
      
	 
      	Name:  Peter
      F. Crispino	 
      
	 
      	Title:    
      Duly
      Authorized Signatory	 
      

          

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	 
      	
                  New
      Revolving Lender signature page to

                
	 
      	
                  the
      Refinancing Amendment No. 2 to the Rite Aid Credit
    Agreement

                

        

      

       

      
        
          
            	
                    To
      approve the Amendment:

                     

                    U.S.
      Bank National Association

                  	 
      
	
                    by

                  	 
      
	 
      	
                               
       /s/ Matthew Kasper

                  	 
      
	 
      	Name:  
      Matthew
      Kasper	 
      
	 
      	Title:    
      Assistant
      Vice President	 
      

          

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule
A

       

      SUBSIDIARY
GUARANTORS

       

      

       

      
        	
                1.

              	
                112
      Burleigh Avenue Norfolk, LLC

              

      

       

      
        	
                2.

              	
                1515
      West State Street Boise, Idaho, LLC

              

      

       

      
        	
                3.

              	
                1740
      Associates, L.L.C.

              

      

       

      
        	
                4.

              	
                3581
      Carter Hill Road–Montgomery Corp.

              

      

       

      
        	
                5.

              	
                4042
      Warrensville Center Road – Warrensville Ohio,
  Inc.

              

      

       

      
        	
                6.

              	
                5277
      Associates, Inc.

              

      

       

      
        	
                7.

              	
                537
      Elm Street Corp.

              

      

       

      
        	
                8.

              	
                5600
      Superior Properties, Inc.

              

      

       

      
        	
                9.

              	
                657-659
      Broad St. Corp.

              

      

       

      
        	
                10.

              	
                764
      South Broadway-Geneva, Ohio, LLC

              

      

       

      
        	
                11.

              	
                Ann
      & Government Streets - Mobile, Alabama,
LLC

              

      

       

      
        	
                12.

              	
                Apex
      Drug Stores, Inc.

              

      

       

      
        	
                13.

              	
                Broadview
      and Wallings-Broadview Heights Ohio,
Inc.

              

      

       

      
        	
                14.

              	
                Brooks
      Pharmacy, Inc.

              

      

       

      
        	
                15.

              	
                Central
      Avenue and Main Street – Petal, MS,
LLC

              

      

       

      
        	
                16.

              	
                Eagle
      Managed Care Corp.

              

      

       

      
        	
                17.

              	
                Eckerd
      Corporation

              

      

       

      
        	
                18.

              	
                Eckerd
      Fleet, Inc.

              

      

       

      
        	
                19.

              	
                EDC
      Drug Stores, Inc.

              

      

       

      
        	
                20.

              	
                Eighth
      and Water Streets – Urichsville, Ohio,
LLC

              

      

       

      
        	
                21.

              	
                England
      Street-Asheland Corporation

              

      

       

      
        	
                22.

              	
                Fairground,
      L.L.C.

              

      

       

      
        	
                23.

              	
                GDF,
      Inc.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                24.

              	
                Genovese
      Drug Stores, Inc.

              

      

       

      
        	
                25.

              	
                Gettysburg
      and Hoover-Dayton, Ohio, LLC

              

      

       

      
        	
                26.

              	
                Harco,
      Inc.

              

      

       

      
        	
                27.

              	
                K
      & B Alabama Corporation

              

      

       

      
        	
                28.

              	
                K
      & B Louisiana Corporation

              

      

       

      
        	
                29.

              	
                K
      & B Mississippi Corporation

              

      

       

      
        	
                30.

              	
                K
      & B Services, Incorporated

              

      

       

      
        	
                31.

              	
                K
      & B Tennessee Corporation

              

      

       

      
        	
                32.

              	
                K&B
      Texas Corporation

              

      

       

      
        	
                33.

              	
                K
      & B, Incorporated

              

      

       

      
        	
                34.

              	
                Keystone
      Centers, Inc.

              

      

       

      
        	
                35.

              	
                Lakehurst
      and Broadway Corporation

              

      

       

      
        	
                36.

              	
                Maxi
      Drug North, Inc.

              

      

       

      
        	
                37.

              	
                Maxi
      Drug South, L.P.

              

      

       

      
        	
                38.

              	
                Maxi
      Drug, Inc.

              

      

       

      
        	
                39.

              	
                Maxi
      Green Inc.

              

      

       

      
        	
                40.

              	
                Mayfield
      & Chillicothe Roads – Chesterland,
LLC

              

      

       

      
        	
                41.

              	
                MC
      Woonsocket, Inc.

              

      

       

      
        	
                42.

              	
                Munson
      & Andrews, LLC

              

      

       

      
        	
                43.

              	
                Name
      Rite, L.L.C.

              

      

       

      
        	
                44.

              	
                Northline
      & Dix – Toledo – Southgate, LLC

              

      

       

      
        	
                45.

              	
                P.J.C.
      Distribution, Inc.

              

      

       

      
        	
                46.

              	
                P.J.C.
      Realty Co., Inc.

              

      

       

      
        	
                47.

              	
                Patton
      Drive and Navy Boulevard Property
Corporation

              

      

       

      
        	
                48.

              	
                Paw
      Paw Lake Road & Paw Paw Avenue–Coloma, Michigan,
  LLC

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                49.

              	
                PDS-1
      Michigan, Inc.

              

      

       

      
        	
                50.

              	
                Perry
      Distributors, Inc.

              

      

       

      
        	
                51.

              	
                Perry
      Drug Stores, Inc.

              

      

       

      
        	
                52.

              	
                PJC
      Dorchester Realty LLC

              

      

       

      
        	
                53.

              	
                PJC
      East Lyme Realty LLC

              

      

       

      
        	
                54.

              	
                PJC
      Haverhill Realty LLC

              

      

       

      
        	
                55.

              	
                PJC
      Hermitage Realty LLC

              

      

       

      
        	
                56.

              	
                PJC
      Hyde Park Realty LLC

              

      

       

      
        	
                57.

              	
                PJC
      Lease Holdings, Inc.

              

      

       

      
        	
                58.

              	
                PJC
      Manchester Realty LLC

              

      

       

      
        	
                59.

              	
                PJC
      Mansfield Realty LLC

              

      

       

      
        	
                60.

              	
                PJC
      New London Realty LLC

              

      

       

      
        	
                61.

              	
                PJC
      of Cranston, Inc.

              

      

       

      
        	
                62.

              	
                PJC
      of East Providence, Inc.

              

      

       

      
        	
                63.

              	
                PJC
      of Massachusetts, Inc.

              

      

       

      
        	
                64.

              	
                PJC
      of Rhode Island, Inc.

              

      

       

      
        	
                65.

              	
                PJC
      of Vermont Inc.

              

      

       

      
        	
                66.

              	
                P.J.C.
      of West Warwick, Inc.

              

      

       

      
        	
                67.

              	
                PJC
      Peterborough Realty LLC

              

      

       

      
        	
                68.

              	
                PJC
      Providence Realty LLC

              

      

       

      
        	
                69.

              	
                PJC
      Realty MA, Inc.

              

      

       

      
        	
                70.

              	
                PJC
      Realty N.E. LLC

              

      

       

      
        	
                71.

              	
                PJC
      Revere Realty LLC

              

      

       

      
        	
                72.

              	
                PJC
      Special Realty Holdings, Inc.

              

      

       

      
        	
                73.

              	
                Ram-Utica,
      Inc.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                74.

              	
                RDS
      Detroit, Inc.

              

      

       

      
        	
                75.

              	
                Read's
      Inc.

              

      

       

      
        	
                76.

              	
                Rite
      Aid Drug Palace, Inc.

              

      

       

      
        	
                77.

              	
                Rite
      Aid Hdqtrs. Corp.

              

      

       

      
        	
                78.

              	
                Rite
      Aid of Alabama, Inc.

              

      

       

      
        	
                79.

              	
                Rite
      Aid of Connecticut, Inc.

              

      

       

      
        	
                80.

              	
                Rite
      Aid of Delaware, Inc.

              

      

       

      
        	
                81.

              	
                Rite
      Aid of Florida, Inc.

              

      

       

      
        	
                82.

              	
                Rite
      Aid of Georgia, Inc.

              

      

       

      
        	
                83.

              	
                Rite
      Aid of Illinois, Inc.

              

      

       

      
        	
                84.

              	
                Rite
      Aid of Indiana, Inc.

              

      

       

      
        	
                85.

              	
                Rite
      Aid of Kentucky, Inc.

              

      

       

      
        	
                86.

              	
                Rite
      Aid of Maine, Inc.

              

      

       

      
        	
                87.

              	
                Rite
      Aid of Maryland, Inc.

              

      

       

      
        	
                88.

              	
                Rite
      Aid of Massachusetts, Inc.

              

      

       

      
        	
                89.

              	
                Rite
      Aid of Michigan, Inc.

              

      

       

      
        	
                90.

              	
                Rite
      Aid of New Hampshire, Inc.

              

      

       

      
        	
                91.

              	
                Rite
      Aid of New Jersey, Inc.

              

      

       

      
        	
                92.

              	
                Rite
      Aid of New York, Inc.

              

      

       

      
        	
                93.

              	
                Rite
      Aid of North Carolina, Inc.

              

      

       

      
        	
                94.

              	
                Rite
      Aid of Ohio, Inc.

              

      

       

      
        	
                95.

              	
                Rite
      Aid of Pennsylvania, Inc.

              

      

       

      
        	
                96.

              	
                Rite
      Aid of South Carolina, Inc.

              

      

       

      
        	
                97.

              	
                Rite
      Aid of Tennessee, Inc.

              

      

       

      
        	
                98.

              	
                Rite
      Aid of Vermont, Inc.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                99.

              	
                Rite
      Aid of Virginia, Inc.

              

      

       

      
        	
                100.

              	
                Rite
      Aid of Washington, D.C., Inc.

              

      

       

      
        	
                101.

              	
                Rite
      Aid of West Virginia, Inc.

              

      

       

      
        	
                102.

              	
                Rite
      Aid Realty Corp.

              

      

       

      
        	
                103.

              	
                Rite
      Aid Rome Distribution Center, Inc.

              

      

       

      
        	
                104.

              	
                Rite
      Aid Services, L.L.C.

              

      

       

      
        	
                105.

              	
                Rite
      Aid Transport, Inc.

              

      

       

      
        	
                106.

              	
                RX
      Choice, Inc.

              

      

       

      
        	
                107.

              	
                Seven
      Mile and Evergreen – Detroit, LLC

              

      

       

      
        	
                108.

              	
                Silver
      Springs Road – Baltimore, Maryland/One,
LLC

              

      

       

      
        	
                109.

              	
                Silver
      Springs Road – Baltimore, Maryland/Two,
LLC

              

      

       

      
        	
                110.

              	
                State
      & Fortification Streets – Jackson, Mississippi,
  LLC

              

      

       

      
        	
                111.

              	
                State
      Street and Hill Road – Gerard, Ohio,
LLC

              

      

       

      
        	
                112.

              	
                The
      Lane Drug Company

              

      

       

      
        	
                113.

              	
                Thrift
      Drug Services, Inc.

              

      

       

      
        	
                114.

              	
                Thrift
      Drug, Inc.

              

      

       

      
        	
                115.

              	
                Thrifty
      Corporation

              

      

       

      
        	
                116.

              	
                Thrifty
      PayLess, Inc.

              

      

       

      
        	
                117.

              	
                Tyler
      and Sanders Roads, Birmingham – Alabama,
LLC

              

      

       

      
        	
                118.

              	
                Rite
      Aid Payroll Management, Inc.

              

      

       

      
        	
                119.

              	
                Rite
      Aid Online Store, Inc.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule B

       

      

      Subsidiary
Guarantors

       

      

      
        	
                
                  1.

                

              	
                 

              	
                Rite
      Fund, Inc.

              

      

       

      
        	
                
                  2.

                

              	
                 

              	
                Rite
      Investments Corp.

              

      

       

      
        	
                
                  3.

                

              	
                 

              	
                Rite
      Aid Hdqtrs. Funding, Inc.

              

      

       

      
        	
                
                  4.

                

              	
                 

              	
                EDC
      Licensing, Inc.

              

      

       

      
        	
                
                  5.

                

              	
                 

              	
                JCG
      Holdings (USA), Inc.

              

      

       

      
        	
                
                  6.

                

              	
                 

              	
                JCG
      (PJC) USA, LLC

              

      

       

      
        	
                
                  7.

                

              	
                 

              	
                The
      Jean Coutu Group (PJC) USA, Inc.empagr.htm

     

    Exhibit
10.1

    EMPLOYMENT
AGREEMENT

    

    

    THIS AGREEMENT (this “Agreement”) made
effective as of the 15st day of
May, 2009 (the “Effective Date”) by and between GUARDIAN ZONE TECHNOLOGIES,
INC., a Delaware corporation with principal offices located at 17 Woodside Road,
Chagrin Falls, Ohio 44023 (the “Corporation”), and THOMAS J. RADU, residing at
_______________________________________________ (“Executive”).

    

    W I T N E S S E T H
:

    

    WHEREAS, the Corporation desires to
employ Executive as Chief Operating Officer, and Executive desires to undertake
such employment, upon the terms and subject to the conditions of this
Agreement;

    

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants hereinafter
set forth, the parties hereto agree as follows:

    

    1. Employment of
Executive.  Subject to the terms and provisions of this
Agreement, the Corporation hereby employs Executive as its Chief Operating
Officer to perform such duties on behalf of the Corporation consistent therewith
as determined from time to time by the Corporation’s Chief Executive
Officer.  In performing such duties Executive will report directly to
the Chief Executive Officer.  Executive shall at all times act
with integrity and
in a manner that is consistent and in accordance with the policies and procedures, and in the
best interests, of the Corporation.

    

    2. Acceptance of Employment;
Board Nomination; Full Time and Attention.  Subject to the
terms and provisions of this Agreement, Executive hereby accepts such
employment.  Executive agrees that throughout the Employment Term (as
hereinafter defined), he will devote his full business time, attention,
knowledge and skills, faithfully, diligently and to the best of his ability, in
furtherance of the business of the Corporation and will perform the duties
described in Section 1 hereof.  During the Employment Term, Executive
shall be subject to, observe and carry out such rules, regulations and policies
as the Corporation may from time to time establish and that are generally
applicable to senior executives of the Corporation.  During the
Employment Term, Executive shall not directly or indirectly, without the prior
written consent of the CEO, accept (i) serve on corporate, civic or charitable
boards or committees (other than in contravention of Section 8(a) hereof) with
or without compensation and (ii) participate in professional organizations, so
long as such activities do not interfere in any material respect with the
performance of Executive’s duties and responsibilities
hereunder.  Executive represents that he is not a party to any
agreement that restricts his right or ability to freely carry out his duties
hereunder.

    

    3. Employment Term.  Executive’s
employment hereunder shall be for a term of three years commencing on the
Effective Date (the “Term”), unless sooner terminated as hereinafter provided.
This Agreement shall renew for successive one-year periods upon the mutual consent
of the Executive and the Corporation (the Term and any and all renewals for a
one-year period shall collectively be referred to herein as the “Employment
Term”).

    

    4.                      Compensation.

    

    (a) As
compensation for his services hereunder, the Corporation shall pay to Executive
a base salary of One Hundred Twenty Thousand Dollars ($120,000) per annum (the
“Base Salary”), payable in accordance with the Corporation’s customary payroll
practices but in no event less frequently than semi-monthly, subject to Section
4(d) hereof.  The Base Salary shall be reviewed no less frequently
than annually during the Employment Term for increase in the sole discretion of
the Board.

    

    (b) In
addition to the Base Salary, Executive shall be entitled to receive such bonus
as the Board may in its sole discretion determine, subject to Section 4(d)
hereof.

    

    (c) All
payments to Executive pursuant to this Agreement shall be subject to applicable
withholding and other employment taxes imposed by law.

    

    5.                      Additional
Benefits.  In addition to the compensation payable to Executive
under Section 4 hereof, during the Employment Term, he shall be entitled to
participate, to the extent he is eligible under the terms and conditions thereof
(such terms and conditions to be generally applicable to all employees or senior
executives of the Corporation), in any profit sharing, stock option, pension,
retirement, hospitalization, insurance, disability, medical service, bonus or
other employee benefit plan, program, policy or arrangement generally available
to the employees, or provided to other senior executives, of the Corporation
from time to time. Executive’s participation in the benefits pursuant to this
Section 5 shall be at a level, and upon terms and conditions, provided to the
Corporation’s senior executives from time to time.

    

    6.                      Reimbursement of
Expenses.  Upon Executive’s submission to the Board of
appropriate receipts or vouchers, the Board shall reimburse Executive in
accordance with applicable policies of the Corporation for business expenses
determined by the Board to be reasonable and necessary and incurred by Executive
in connection with Executive’s employment on behalf of the
Corporation.

    

    7.                      Vacation.  Executive
shall be entitled to annual paid vacation of twenty (20) days in each calendar
year in accordance with the Corporation’s policies in effect from time to
time.

    

    8.                      Restrictive
Covenants.  In consideration of the Corporation’s entering into
this Agreement and Executive’s exposure to Confidential Information (as
hereinafter defined), Executive and the Corporation agree that

    

    (a)           during
the Employment Term and until the one-year anniversary of the end
of the Employment Term, Executive will not directly or indirectly own, manage,
operate, join, control, participate in, invest in or otherwise be connected
with, in any manner, whether as an officer, director, shareholder, employee,
partner, venturer, investor or otherwise, any entity that competes directly with
the Corporation;  and

    

    (b)           during
the Employment Term and until the one-year anniversary
of  either the end of the Employment Term or the termination of
Executive, Executive will not for Executive or on behalf of any other person,
partnership, corporation or other entity, directly or indirectly or by action
together with others, (i) call on any customer of the Corporation or licensee of
the Corporation’s products for the purpose of diverting or taking away any of
such individuals or any of the Corporation’s business and/or revenues directly
related to such individuals or (ii) solicit or induce any person who is or was
an employee of the Corporation during the one-year period prior to the
Executive’s termination or the end of the Employment Term, to terminate or
reduce the nature or scope of such employee’s relationship with the Corporation,
other than in the ordinary course of Executive’s performance of his duties
hereunder;  and

    

    (c)           Executive
will not make any materially disparaging statements, orally or in
writing,  to any third party about the Corporation, ,including, but
not limited to, the Corporation’s customers, licensees, shareholders, investors,
employees, Board members, products or operations.  This Section 8(c)
shall survive the termination of Executive’s employment by the Corporation or
the  expiration of the Employment Term, but shall not apply to
communications between Executive and Executive’s family, accountants, advisors,
agents, representatives and attorneys, or as expressly authorized by law or
lawful process.

    

    Nothing herein contained shall be
deemed to prohibit Executive from investing his funds in securities of an issuer
if the securities of such issuer are listed for trading on a national securities
exchange or are traded in the over-the-counter market and Executive’s holdings
therein represent less than five percent (5%) of the total number of shares or
principal amount of the securities of such issuer outstanding.

    

    Executive acknowledges that the
provisions of this Section 8 are reasonable and necessary for the protection of
the Corporation and its intellectual property and that each provision, and the
period of time, geographic areas and types and scope of restrictions on the
activities specified herein are, and are intended to be,
divisible.  In the event that any provision of this Section 8,
including any sentence, clause or part hereof, shall be deemed contrary to law
or invalid or unenforceable in any respect by a court of competent jurisdiction,
the remaining provisions shall not be affected, but shall, subject to the
discretion of such court, remain in full force and effect and any invalid and
unenforceable provisions shall be deemed, without further action on the part of
the parties hereto, modified, amended and limited to the extent necessary to
render the same valid and enforceable.

    

    9.                      Confidential Information;
Assignment of Inventions; Notifications.

    

    (a)           Definition of Confidential
Information.  For purposes of this Agreement, “Confidential
Information” shall mean all trade secrets, copyrights, patents, technical data,
know-how or any other proprietary information pertaining to the Corporation’s
business, customers or suppliers or information pertaining to any aspect of the
Corporation’s business which is information not known by actual or potential
competitors of the Corporation, in whatever form, whether or not marked as
“confidential,” including without limitation all inventions, reports,
investigations, research and development, drawings, designs, plans, proposals,
codes, marketing and sales information, financial projections, cost summaries,
pricing formulae, product development and design information, information
concerning business or product acquisitions, strategic plans, customer lists,
pricing data, databases, programs, algorithms, software (including without
limitation source and object code and design and user documentation), systems,
programs, procedures, techniques, manuals, customer information, specifications,
test results and lists disclosed to, created  or otherwise known by,
or in the possession of Executive.

    

    (b)           Confidentiality
Obligation.  Executive acknowledges and agrees that as between
the Corporation and Executive, the Corporation owns all right, title and
interest in and to the Confidential Information.  As a portion of the
consideration for the employment of Executive by the Corporation, Executive
agrees at all times during the Employment Term and thereafter to hold in
strictest confidence, and not to disclose or knowingly allow to be disclosed to
any third party, or to use or knowingly allow to be used, any Confidential
Information, except as necessary to perform Executive’s duties hereunder, and
then only according to the Corporation’s policies and procedures relating to
disclosure of Confidential Information, or as otherwise required by
law.  Executive will immediately notify the Board upon discovery or
knowledge of any actual or potential unauthorized use or disclosure of
Confidential Information.

    

    (c)           Third Party
Information.  Executive acknowledges that the Corporation has
received and in the future will receive confidential or proprietary information
from third parties subject to a duty on the Corporation’s part to maintain the
confidentiality of such information and to use it only for certain limited
purposes.  Executive agrees to hold all such confidential and
proprietary information in the strictest confidence and not to disclose it to
any person, firm or corporation or not to use it except as necessary in carrying
out Executive’s duties and responsibilities hereunder consistent with the
Corporation’s agreement with such third party.

    

    (d)           Exceptions.  The
provisions of this Section 9 shall not apply to any Confidential Information
which shall (i) have become public knowledge other than by breach of this
Agreement or any other agreement between the Corporation and Executive, (ii)
have been known to or in the possession of Executive with the full right to
disclose prior to his receipt from the Corporation, or (iii) have been disclosed
to Executive, other than under an obligation of confidentiality, by a third
party which to the best of Executive’s knowledge had no obligation to the
Corporation not to disclose such information to others.

    

    (e)           Assignment of Inventions;
Sale of Inventions.  Executive agrees that he will promptly
make full written disclosure to the Board regarding, will hold in trust for the
sole right and benefit of the Corporation, and hereby assigns to the
Corporation, or its designee, all his right, title and interest throughout the
world in and to, any and all inventions, original works of authorship,
developments, concepts, ideas, know-how, improvements or trade secrets, whether
or not patentable or registrable under copyright or similar laws (“Inventions”),
which Executive solely or jointly conceives or develops or reduces to practice,
or causes to be conceived or developed or reduced to practice, during
the  Employment Term,  or with the use or assistance of the
Corporation’s facilities, materials or personnel, except as provided in Section
9(d) above.  Executive further acknowledges that all Inventions which
are made by Executive (solely or jointly with others) during the Employment Term
are “works made for hire” (to the greatest extent permitted by applicable law)
and are compensated by Executive’s salary.

     

    (f)           Maintenance of
Records.  Executive agrees to keep and maintain adequate and
current written records of the business operations of the Corporation,
including, but not limited to, records of all financial matters, customers and
Inventions..  Such records, as well as all other memoranda, notes,
records, data and other documents composed by or made available to the Executive
during the Employment Term (collectively, the “Records”) will be available to
all members of the Board and remain the sole property of the Corporation at all
times.  Executive agrees not to remove the Records from the
Corporation’s place of business except as expressly permitted by Corporation
policy which may, from time to time, be revised at the sole election of the
Board  for the purpose of furthering the Corporation’s
business.

     

    (g)           Patent and Copyright
Rights.  Executive agrees to assist the Corporation, or its
designee, at the Corporation’s expense, in every necessary and proper way to
secure the Corporation’s rights in the Inventions, and any copyrights, patents,
trademarks, mask work rights, moral rights, or other intellectual property
rights relating thereto in any and all countries, including the disclosure to
the Corporation of all pertinent information and data with respect thereto, the
execution of all applications, specifications, oaths, assignments, recordations,
and all other instruments which the Corporation shall deem necessary in order to
apply for, obtain, maintain and transfer such rights and in order to assign and
convey to the Corporation, its successors, assigns and nominees the sole and
exclusive rights, title and interest in and to such Inventions and any
copyrights, patents, mask work rights or other intellectual property rights
relating thereto.  Executive further agrees that Executive’s
obligation to execute or cause to be executed, when it is in Executive’s power
to do so, any such instrument or papers shall continue after the termination of
this Agreement until the expiration of the last such intellectual property right
to expire in any country of the world.  Executive agrees that if the
Corporation is unable because of Executive’s mental or physical incapacity or
unavailability or for any other reason to secure Executive’s signature to apply
for or to pursue any application for any United States or foreign patents or
copyright registrations covering Inventions or original works of authorship
assigned to the Corporation as described above, Executive hereby irrevocably
designates and appoints the Corporation and its duly authorized officers and
agents as Executive’s agent and attorney in fact, to act for and in Executive’s
behalf and stead to execute and file any such applications and to do all other
lawfully permitted acts to further the application for, prosecution, issuance,
maintenance or transfer of letters patent or copyright registrations thereon
with the same legal force and effect as if originally executed by
Executive.  Executive hereby waives and irrevocably quitclaims to the
Corporation any and all claims, of any nature whatsoever, which Executive now or
hereafter may have for infringement of any and all proprietary rights assigned
to the Corporation.

    

    (h)           Return of Materials Upon
Termination.  Executive agrees that at the time of termination
of his employment under this Agreement, Executive will deliver to the
Corporation (and will not keep in Executive’s possession, recreate or deliver to
anyone else) any and all Confidential Information, Records, and any and all
devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, laboratory notebooks, materials,
flow charts, equipment, other documents and property, and reproductions of any
aforementioned items developed, used and/or possessed by Executive pursuant to
his employment by the Corporation  or otherwise belonging to the
Corporation, its successors or assigns.  Executive further agrees that
any property situated on the Corporation’s premises and owned by the
Corporation, including disks and other storage media, filing cabinets or other
work areas, is subject to inspection by members of the Board at any time with or
without notice.  In the event of a termination of the employment of
Executive by the Corporation, Executive agrees to sign and deliver a Termination
Certification in the form attached hereto as Exhibit
A.

    

    (i)           Former Employer
Information.  Executive represents that Executive’s performance
of all of the terms of this Agreement will not breach any agreement to keep in
confidence proprietary information, knowledge or data acquired by Executive in
confidence or trust prior or subsequent to  the Employment Term, and
Executive will not disclose to the Corporation, or induce the Corporation to
use, any inventions, confidential or proprietary information or material
belonging to any  previous employer or any other party.

    

    (j)           Notification to Other
Parties.  In the event that Executive leaves the employ of the
Corporation, Executive hereby consents to notification by the Corporation to
Executive’s new employer of Executive’s covenants under Sections 8 and 9 of this
Agreement.

    

    (k)           Facilitation of
Agreement. Executive agrees to
execute promptly any proper oath or verify any proper document required to carry
out the terms of this Section 9 upon the Corporation’s written request to do
so.

     

    (l)           Conflicts. Executive acknowledges
that he has not entered into, and will not enter into, any oral or written
agreement in conflict with any of the provisions of this Section 9.

    

    10.                      Equitable
Relief.  The parties hereto acknowledge that Executive’s
services are unique and that, in the event of a breach or a threatened breach by
Executive of any of his obligations under this Agreement, the Corporation will
not have an adequate remedy at law.  Accordingly, in the event of any
such breach or threatened breach by Executive, the Corporation shall be entitled
to such equitable and injunctive relief as may be available to restrain
Executive and any business, firm, partnership, individual, corporation or entity
participating in such breach or threatened breach from the violation of the
provisions hereof.  Nothing herein shall be construed as prohibiting
the Corporation from pursuing any other remedies available at law or in equity
for such breach or threatened breach, including the recovery of damages and the
immediate termination of the employment of Executive hereunder.

    

    11.                      Termination.  Executive’s
employment with the Corporation and the Employment Term shall terminate upon the
expiration of the Employment Term or upon the earlier occurrence of any of the
following events (the date of termination, the “Termination Date”):

    

    (a)           The
death of Executive (“Death”).

    

    (b)           The
termination of Executive’s employment by the Corporation for Cause upon written
notice (the “Cause Notice”) to Executive specifying the conduct constituting
Cause.  As used herein, “Cause” shall mean:  (i) any breach
of Executive’s obligations under this Agreement; (ii) fraud, theft, or gross
malfeasance on the part of the Executive, including without limitation, conduct
of a felonious or criminal nature, conduct involving moral turpitude,
embezzlement, or misappropriation of assets; (iii) an act, omission or other
conduct by the Executive which is inconsistent with the Executive’s position
and/or which results or is reasonably likely to result, in
the  opinion of the Board, in an adverse effect (financial or
otherwise) on the business or reputation of the Corporation or any of its
subsidiaries, divisions, or affiliates; and (iv) the Executive’s failure or
refusal to perform, or the negligent performance of, his duties.

    

    (c)           The
termination of Executive’s employment by the Corporation for
Disability.  As used herein, “Disability” shall mean Executive’s
inability, as reasonably determined by the Board, to perform his duties,
services and responsibilities hereunder by reason of a physical or mental
infirmity for a total of one hundred eighty (180) calendar days in any
twelve (12) month period.

     

    (d)           The
termination of Executive’s employment by the Corporation Without
Cause.  As used herein, “Without Cause” shall mean termination of
Executive’s employment by the Corporation other than for (i) Cause, (ii) Death,
or (iii) Disability.

    

    

    12.                      Termination
Payments.  If Executive’s employment with the Corporation
terminates, the Corporation’s, its subsidiaries’ and its affiliates’ sole
obligation hereunder shall be to pay Executive (i) any accrued and unpaid Base
Salary as of the Termination Date and (ii) an amount equal to such reasonable
and necessary business expenses incurred by Executive pursuant to Section 6 of
this Agreement in connection with Executive’s employment on behalf of the
Corporation on or prior to the Termination Date but not previously paid to
Executive.

    

    13.                      Executive
Covenants.  The Executive agrees to keep the terms of this
Agreement confidential and not to provide copies of this Agreement to, or to
disclose any of the terms and conditions of this Agreement to, anyone not a
party to this Agreement except as may be required by law, in connection with a
legal action involving this Agreement or to Executive’s immediate family
members, bankers, accountants, advisors, representatives or attorneys who agree
to be bound by this confidentiality provision.

    

    14.                      Survival of
Provisions.  Neither the termination of this Agreement nor of
Executive’s employment hereunder shall terminate or affect in any manner any
provision of this Agreement that is intended by its terms to survive such
termination.

    

    15.                      Entire Agreement;
Amendment.  This Agreement embodies the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof,
and supersedes all prior and contemporaneous agreements or understandings, oral
and written, relative to said subject matter.  This Agreement may not
be changed, amended, terminated, augmented, rescinded or discharged (other than
by performance), in whole or in part, except by a writing executed by each of
the parties hereto.

    

    16.                      Notices.  Any
notice required, permitted or desired to be given to any party hereto pursuant
to any of the provisions of this Agreement shall be deemed to have been
sufficiently given or served for all purposes if delivered in person or by
responsible overnight delivery service or sent by certified mail, return receipt
requested, postage and fees prepaid, if to the Board
at___________________________, and if to Executive at his address set forth
above.  Either of the parties hereto may at any time and from time to
time change the address to which notice shall be sent hereunder by notice to the
other party given under this Section 16.  The date of the giving of
any notice hand delivered or delivered by responsible overnight carrier shall be
the date of its delivery and the date of giving of any notice sent by mail shall
be the date five (5) days after the date of the posting of the
mail.

    

    17.                      No Assignment; Binding
Effect.   Neither this Agreement, nor any of the rights,
interests or obligations hereunder, including the right to receive any payments
hereunder, may be transferred or assigned (by operation of law or otherwise) by
Executive.  This Agreement may not be assigned by the Corporation
other than to an entity which (a) directly or indirectly controls, is controlled
by or under common control with the Corporation, or which is a successor in
interest to substantially all of the business operations of the Corporation and
(b) assumes in writing, at the time of the assignment, the Corporation’s
obligation to perform this Agreement.  The Corporation shall provide
Executive with written notice within ten (10) days of any such assignment. This
Agreement and the various rights and obligations arising hereunder shall inure
to the benefit of and be binding upon Executive and his heirs, executors and
administrators and upon the Corporation and its successors (including, without
limitation, by way of merger) and assigns.

    

    18.                      Waivers.  No
waiver of any of the provisions or conditions of this Agreement or any of the
rights of a party hereto shall be effective or binding unless such waiver shall
be in writing and signed by the party claimed to have consented
thereto.  Except to the extent that a party hereto may have otherwise
agreed in writing, no waiver by that party of any condition of this Agreement or
breach by the other party of any of its obligations hereunder shall be deemed to
be a waiver of any other condition or subsequent or prior breach of the same or
any other obligation or representation or warranty by such other party, nor
shall any forbearance by the first party to seek a remedy for any noncompliance
or breach by such other party be deemed to be a waiver by the first party of its
rights and remedies with respect to such noncompliance or breach.

    

    19.                      Governing
Law.  This Agreement shall in all respects be construed in
accordance with and governed by the laws of the State of Ohio.

    

    20.                      Invalidity.  If
any clause, paragraph, section or part of this Agreement shall be held or
declared to be void, invalid or illegal, for any reason, by any court of
competent jurisdiction, such provision shall be ineffective but shall not in any
way invalidate or affect any other clause, paragraph, section or part of this
Agreement.

    

    21.                      Counterparts.  This
Agreement may be executed in multiple counterparts, each of which shall
constitute an original instrument, but each of which when taken together shall
constitute one and the same instrument.

    

    22.                      Voluntary Execution; Advice
of Counsel.  Executive certifies and acknowledges that
Executive has carefully read all of the provisions of this Agreement and that
Executive understands and will fully and faithfully comply with such
provisions.  Executive further acknowledges that, in executing this
Agreement, Executive has had the opportunity to seek the advice of independent
legal counsel and has read and understood all of the terms and provisions of
this Agreement.

    

    

     

    {Signature
Page Follows}

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed as of this __15_ day of May,
2009.

    

    

    GUARDIAN ZONE TECHNOLOGIES,
INC.

    

    By:               /s/
David Wible

    Title:
David Wible

    Chief
Executive Officer

    

    

          /s/
Thomas J. Radu

    THOMAS
J. RADU

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]