Document:

Exhibit 4.8

 

 

SUPPLEMENTAL INDENTURE

 

dated
as of June 4, 2007

 

between

 

RITE AID CORPORATION,

 

THE SUBSIDIARIES NAMED HEREIN

 

and

 

THE BANK OF NEW YORK TRUST COMPANY, N.A.,

 

successor
to BNY Midwest Trust Company

 

as
Trustee

 

to
the

 

INDENTURE

 

dated
as of May 20, 2003

 

between

 

RITE AID CORPORATION

 

and

 

BNY MIDWEST TRUST COMPANY

 

as
Trustee

 

 

9.25% SENIOR NOTES DUE 2013

 

 

THIS
SUPPLEMENTAL INDENTURE (the “Supplemental Indenture”),
dated as of June 4, 2007, among Rite Aid Corporation, a Delaware corporation
(the “Company”), each of the subsidiaries of the Company listed on
Schedule I hereto (each such subsidiary individually, a “Subsidiary” and
collectively, the “Subsidiaries”) and The Bank of New York Trust
Company, N.A., successor to BNY Midwest Trust Company, the trustee under the
Indenture referred to below (the “Trustee”).

 

WITNESSETH

 

WHEREAS,
the Company has heretofore executed and delivered an indenture  (the “Indenture”), dated as of May 20,
2003, between the Company and the Trustee, pursuant to which the Company has
issued its 9.25% Senior Notes due 2013 (collectively, the “Securities”);

 

WHEREAS,
each of the Subsidiaries wishes to guarantee the obligations of the Company
under the Indenture and the Securities on the terms set forth herein and, in
accordance with Section 4.09 of the Indenture, execute and deliver this
Supplemental Indenture providing for such guarantee;

 

WHEREAS,
Section 9.01 of the Indenture provides that the Company and the Trustee
may amend the Indenture or the Securities without notice to or consent of any
Holder of the Securities to add Guarantees with respect to the Securities; and

 

WHEREAS,
the respective Boards of Directors, Managers or Partners of the Company and
each of the Subsidiaries, as applicable, have authorized and approved the
execution and delivery of this Supplemental Indenture.

 

NOW,
THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Company, the Subsidiaries and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders as follows:

 

ARTICLE
1

 

CAPITALIZED
TERMS

 

Section 1.01           Capitalized Terms.

 

Capitalized
terms used herein but not defined shall have the meanings assigned to them in
the Indenture.

 

 

ARTICLE 2

 

GUARANTEE OF THE SECURITIES

 

Section 2.01              Guarantee.

 

Subject to the
provisions of this Article 2, each Subsidiary hereby unconditionally
guarantees, jointly and severally, to each Holder and to the Trustee and its successors
and assigns (a) the full and punctual payment of principal of and interest
on the Securities when due, whether at maturity, by acceleration, by redemption
or otherwise, and all other monetary obligations of the Company under the
Indenture, this Supplemental Indenture and the Securities and (b) the full
and punctual performance within applicable grace periods of all other
obligations of the Company under the Indenture, this Supplemental Indenture and
the Securities (all the foregoing being hereinafter collectively called the “Obligations”).  Each Subsidiary further agrees that the
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Subsidiary, and that such Subsidiary will remain bound
under this Article 2 notwithstanding any extension or renewal of any
Obligation.

 

Any term or
provision of this Supplemental Indenture to the contrary notwithstanding, the
maximum aggregate amount of the obligations guaranteed hereunder by any
Subsidiary shall not exceed the maximum amount that can be hereby guaranteed
without rendering the Indenture and this Supplemental Indenture, as they relate
to such Subsidiary, voidable under applicable law relating to fraudulent
conveyance or fraudulent transfer or similar laws affecting the rights of
creditors generally.

 

Each
Subsidiary waives presentation to, demand of, payment from and protest to the
Company of any of the Obligations and also waives notice of protest for
nonpayment.  Each Subsidiary waives
notice of any default under the Securities or the Obligations.  The obligations of each Subsidiary hereunder
shall not be affected by (a) the failure of any Holder or the Trustee to
assert any claim or demand or to enforce any right or remedy against the
Company or any other Person under the Indenture, this Supplemental Indenture,
the Securities or any other agreement or otherwise; (b) any extension or
renewal of any thereof; (c) any rescission, waiver, amendment or
modification of any of the terms or provisions of the Indenture, this
Supplemental Indenture, the Securities or any other agreement; (d) the
release of any security held by any Holder or the Trustee for the Obligations
or any of them; or (e) the failure of any Holder or the Trustee to
exercise any right or remedy against any other guarantor of the Obligations.
Each Subsidiary further agrees that its Subsidiary Guarantee herein constitutes
a guarantee of payment, performance and compliance when due (and not a
guarantee of collection) and waives any right to require that any resort be had
by any Holder or the Trustee to any security held for payment of the
Obligations.

 

Except as
expressly set forth in Section 8.01(b) of the Indenture and 2.06 of
this Supplemental Indenture, the obligations of each Subsidiary hereunder shall
not be subject to any reduction, limitation, impairment or termination for any
reason, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim,
recoupment or termination whatsoever or by reason of the invalidity, illegality
or unenforceability of the Obligations or otherwise.  Without limiting the generality of the

 

2

 

foregoing, the
obligations of each Subsidiary herein shall not be discharged or impaired or
otherwise affected by the failure of any Holder or the Trustee to assert any
claim or demand or to enforce any remedy under the Indenture, this Supplemental
Indenture, the Securities or any other agreement, by any waiver or modification
of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of such Subsidiary or would otherwise operate as a
discharge of such Subsidiary as a matter of law or equity.

 

Each
Subsidiary further agrees that its Subsidiary Guarantee herein shall continue
to be effective or be reinstated, as the case may be, if at any time payment,
or any part thereof, of principal of or interest on any Obligation is rescinded
or must otherwise be restored by any Holder or the Trustee upon the bankruptcy
or reorganization of the Company or otherwise.

 

In furtherance
of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against any Subsidiary by virtue hereof,
upon the failure of the Company to pay the principal of or interest on any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, or to perform or comply with any
other Obligation, each Subsidiary hereby promises to and will, upon receipt of
written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to
the Holders or the Trustee an amount equal to the sum of (i) the unpaid
amount of such Obligations, (ii) accrued and unpaid interest on such
Obligations (but only to the extent not prohibited by law) and (iii) all
other monetary Obligations of the Company to the Holders and the Trustee.

 

Each
Subsidiary agrees that it shall not be entitled to any right of subrogation in
respect of any Obligations guaranteed hereby until payment in full in cash of
all Obligations.  Each Subsidiary further
agrees that, as between it, on the one hand, and the Holders and the Trustee,
on the other hand, (x) the maturity of the Obligations guaranteed hereby
may be accelerated as provided in Article VI of the Indenture for the
purposes of such Subsidiary’s Subsidiary Guarantee herein, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the Obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such Obligations as provided in Article VI
of the Indenture, such Obligations (whether or not due and payable) shall
forthwith become due and payable by such Subsidiary for the purposes of this
Section.

 

Each
Subsidiary also agrees to pay any and all costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights
under this Section 2.01.

 

Section 2.02           Contribution.

 

Each of the
Company and any Subsidiary (a “Contributing Party”) agrees that, in the
event a payment shall be made by any other Subsidiary under any Subsidiary
Guarantee (the “Claiming Guarantor”), the Contributing Party shall
indemnify the Claiming Guarantor in an amount equal to the amount of such
payment multiplied by a fraction, the numerator of which shall be the net worth
of the Contributing Party on the date hereof and the denominator of which

 

3

 

shall be the
aggregate net worth of the Company and all the Subsidiaries on the date of this
Supplemental Indenture.

 

Section 2.03           Successors and Assigns.

 

This Article 2
shall be binding upon each Subsidiary and its successors and assigns and shall
inure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in the
Indenture, this Supplemental Indenture and in the Securities shall
automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions of the Indenture and this Supplemental
Indenture.

 

Section 2.04           No Waiver.

 

Neither a
failure nor a delay on the part of either the Trustee or the Holders in
exercising any right, power or privilege under this Article 2 shall operate
as a waiver thereof, nor shall a single or partial exercise thereof preclude
any other or further exercise of any right, power or privilege.  The rights, remedies and benefits of the
Trustee and the Holders herein expressly specified are cumulative and not
exclusive of any other rights, remedies or benefits which either may have under
this Article 2 at law, in equity, by statute or otherwise.

 

Section 2.05           Modification.

 

No
modification, amendment or waiver of any provision of this Article 2, nor
the consent to any departure by any Subsidiary therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Trustee, and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given.  No
notice to or demand on any Subsidiary in any case shall entitle such Subsidiary
to any other or further notice or demand in the same, similar or other
circumstances.

 

Section 2.06           Release of Subsidiary.

 

A Subsidiary
shall be released from all of its obligations under its Guarantee hereunder
upon:

 

(i)                        upon
the sale (including any sale pursuant to any exercise of remedies by a holder
of indebtedness of the Company or of such Subsidiary), transfer or other
disposition (including by way of consolidation or merger) of all the Capital
Stock of such Subsidiary; or

 

(ii)                       upon
request of the Company without consent of any Holder unless, within 20 Business
Days after written notice of the proposed release of such Subsidiary is mailed
to the Trustee and the Holders, Holders of 25% of the outstanding principal
amount of Securities deliver to the Company a written objection to such
release; or

 

4

 

(iii)                      with
the written consent of the Holders of at least a majority of the aggregate
principal amount of the Securities then outstanding; or

 

(iv)                      upon
defeasance of the Securities pursuant to Article VIII of the Indenture; or

 

(v)                       upon
the full satisfaction of the Company’s obligations under the Indenture pursuant
to Section 8.01(a) of the Indenture or otherwise in accordance with
the terms of the Indenture; or

 

(vi)                      in
the event such Guarantee would no longer be required pursuant to Section 4.09
of the Indenture;

 

provided,
however, that in the case of clause (i) above, (a) such sale or other
disposition is made to a Person other than the Company or a Subsidiary of the
Company, (b) such sale, transfer or other disposition is otherwise
permitted by the Indenture and this Supplemental Indenture and (c) the
Company provides an Officers’ Certificate to the Trustee to the effect that the
Company will comply with its obligations under Section 4.06 of the
Indenture.

 

At the request
of the Company, the Trustee shall execute and deliver an appropriate instrument
evidencing such release.

 

ARTICLE 3

 

MISCELLANEOUS

 

Section 3.01           Ratification of Indenture;
Supplemental Indenture Part of Indenture.

 

Except as
expressly supplemented hereby, the Indenture is in all respects ratified and
confirmed and all the terms, conditions and provisions thereof shall remain in
full force and effect.  This Supplemental
Indenture shall form a part of the Indenture for all purposes, and every Holder
of the Securities heretofore or hereafter authenticated and delivered shall be
bound hereby.  In the event of a conflict
between the terms and conditions of the Indenture and the terms and conditions
of this Supplemental Indenture, then the terms and conditions of this
Supplemental Indenture shall prevail.

 

Section 3.02           Governing Law.

 

THE INTERNAL
LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

5

 

Section 3.03           Trustee Makes No Representation.

 

The recitals
contained herein are those of the Company and the Subsidiaries and not the
Trustee, and the Trustee assumes no responsibility for the correctness of same.
The Trustee makes no representations as to the validity or sufficiency of this
Supplemental Indenture. All rights, protections, privileges, indemnities and
benefits granted or afforded to the Trustee under the Indenture shall be deemed
incorporated herein by this reference and shall be deemed applicable to all
actions taken, suffered or omitted by the Trustee under this Supplemental
Indenture.

 

Section 3.04           Counterparts.

 

The parties
may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

 

Section 3.05           Effect of Headings.

 

The section
headings herein are for convenience only and shall not effect the construction
thereof.

 

[The remainder of this page is intentionally left blank]

 

6

 

IN WITNESS
WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the date first written above.

 

	
   

  	
  RITE AID CORPORATION,
  as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin Twomey

  
	
   

  	
   

  	
  Name:

  	
  Kevin Twomey

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EACH OF THE SUBSIDIARIES

  
	
   

  	
  LISTED ON SCHEDULE I HERETO,
  as

  
	
   

  	
  Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert B. Sari

  
	
   

  	
   

  	
  Name:

  	
  Robert B. Sari

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST

  
	
   

  	
  COMPANY, N.A., as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D.G. Donovan

  
	
   

  	
   

  	
  Name:

  	
  D.G. Donovan

  
	
   

  	
   

  	
  Title:

  	
   Vice President

  

 

 

Schedule
I

 

SUBSIDIARIES

 

	
  Thrifty
  PayLess, Inc.

  
	
  Rite Aid of
  Vermont, Inc.

  
	
  Rite Aid of Ohio, Inc.

  
	
  Rite Aid of
  Maine, Inc.

  
	
  Rite Aid of
  West Virginia, Inc.

  
	
  The Lane
  Drug Company

  
	
  3581 Carter
  Hill Road - Montgomery Corp.

  
	
  4042
  Warrensville Center Road - Warrensville Ohio, Inc.

  
	
  5277
  Associates, Inc.

  
	
  537 Elm
  Street Corp.

  
	
  5600
  Superior Properties, Inc.

  
	
  657-659
  Broad St. Corp.

  
	
  Apex Drug
  Stores, Inc.

  
	
  Broadview
  and Wallings - Broadview Heights Ohio, Inc.

  
	
  Dominion
  Drug Stores Corp.

  
	
  Eagle
  Managed Care Corp.

  
	
  England
  Street-Asheland Corporation

  
	
  GDF, Inc.

  
	
  Harco, Inc.

  
	
  K&B
  Alabama Corporation

  
	
  K&B
  Louisiana Corporation

  
	
  K&B
  Mississippi Corporation

  
	
  K&B
  Services, Incorporated

  
	
  K&B
  Tennessee Corporation

  
	
  K&B
  Texas Corporation

  
	
  K&B,
  Incorporated

  
	
  Keystone
  Centers, Inc.

  
	
  Lakehurst
  and Broadway Corporation

  
	
  P.L.D.
  Enterprises, Inc.

  
	
  Patton Drive
  and Navy Boulevard Property Corporation

  
	
  PDS-1
  Michigan, Inc.

  
	
  Perry
  Distributors, Inc.

  
	
  Perry Drug
  Stores, Inc.

  
	
  PL
  Xpress, Inc.

  
	
  Ram-Utica, Inc.

  
	
  RDS
  Detroit, Inc.

  
	
  Read’s Inc.

  
	
  Rite Aid
  Drug Palace, Inc.

  
	
  Rite Aid
  Hdqtrs. Corp

  
	
  Rite Aid
  Hdqtrs. Funding, Inc.

  
	
  Rite Aid of
  Alabama, Inc.

  
	
  Rite Aid of
  Connecticut, Inc.

  

 

 

	
  Rite Aid of
  Delaware, Inc.

  
	
  Rite Aid of
  Florida, Inc.

  
	
  Rite Aid of
  Georgia, Inc.

  
	
  Rite Aid of
  Illinois, Inc.

  
	
  Rite Aid of
  Indiana, Inc.

  
	
  Rite Aid of
  Kentucky, Inc.

  
	
  Rite Aid of
  Maryland, Inc.

  
	
  Rite Aid of
  Massachusetts, Inc.

  
	
  Rite Aid of
  Michigan, Inc.

  
	
  Rite Aid of
  New Hampshire, Inc.

  
	
  Rite Aid of
  New Jersey, Inc.

  
	
  Rite Aid of
  New York, Inc.

  
	
  Rite Aid of
  North Carolina, Inc.

  
	
  Rite Aid of
  Pennsylvania, Inc.

  
	
  Rite Aid of
  South Carolina, Inc.

  
	
  Rite Aid of
  Tennessee, Inc.

  
	
  Rite Aid of
  Virginia, Inc.

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

  
	
  Rite Aid
  Realty Corp.

  
	
  Rite Aid
  Rome Distribution Center, Inc.

  
	
  Rite Aid
  Transport, Inc.

  
	
  Rite
  Fund, Inc.

  
	
  Rite
  Investments Corp.

  
	
  Rx
  Choice, Inc.

  
	
  Thrifty
  Corporation

  
	
  Virginia
  Corporation

  
	
  Brooks
  Pharmacy, Inc.

  
	
  Eckerd
  Corporation

  
	
  EDC
  Licensing, Inc.

  
	
  Genovese
  Drug Stores, Inc.

  
	
  JCG Holdings
  (USA), Inc.

  
	
  Maxi Drug
  North, Inc.

  
	
  Maxi
  Drug, Inc.

  
	
  P.J.C.
  Distribution, Inc.

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

  
	
  PJC Lease
  Holdings, Inc.

  
	
  PJC Special
  Realty Holdings, Inc.

  
	
  The Jean
  Coutu Group (PJC) USA, Inc.

  
	
  Thrift Drug
  Services, Inc.

  
	
  Thrift
  Drug, Inc.

  
	
  Eckerd
  Fleet, Inc.

  
	
  PJC of
  Massachusetts, Inc.

  
	
  PJC Realty
  MA, Inc.

  
	
  EDC Drug
  Stores, Inc.

  
	
  MC
  Woonsocket, Inc.

  

 

 

	
  PJC of Cranston, Inc.

  
	
  PJC of East
  Providence, Inc.

  
	
  PJC of Rhode
  Island, Inc.

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

  
	
  Maxi Green
  Inc.

  
	
  PJC of
  Vermont, Inc.

  
	
  764 South
  Broadway - Geneva, Ohio, LLC

  
	
  Eighth and
  Water Streets - Urichsville, Ohio, LLC

  
	
  Gettysburg
  and Hoover-Dayton, Ohio, LLC

  
	
  Mayfield &
  Chillicothe Roads - Chesterland, LLC

  
	
  Munson &
  Andrews, LLC

  
	
  Silver
  Springs Road - Baltimore, Maryland/One, LLC

  
	
  Silver
  Springs Road - Baltimore, Maryland/Two, LLC

  
	
  State Street
  and Hill Road-Gerard, Ohio, LLC

  
	
  112 Burleigh
  Avenue Norfolk, LLC

  
	
  1515 West
  State Street Boise, Idaho, LLC

  
	
  1740
  Associates, L.L.C.

  
	
  Ann &
  Government Streets - Mobile, Alabama, LLC

  
	
  Central
  Avenue and Main Street - Petal, MS, LLC

  
	
  Fairground,
  L.L.C.

  
	
  Name Rite,
  L.L.C.

  
	
  Northline &
  Dix - Toledo - Southgate, LLC

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

  
	
  Seven Mile
  and Evergreen - Detroit, LLC

  
	
  State &
  Fortification Streets - Jackson, Mississippi, LLC

  
	
  Tyler and
  Sanders Roads, Birmingham - Alabama, LLC

  
	
  Rite Aid
  Services, L.L.C.

  
	
  JCG (PJC)
  USA, LLC

  
	
  Jean Coutu
  Group Holdings (USA), LLC

  
	
  PJC
  Dorchester Realty LLC

  
	
  PJC East
  Lyme Realty LLC

  
	
  PJC Essex
  Realty LLC

  
	
  PJC
  Haverhill Realty LLC

  
	
  PJC
  Hermitage Realty LLC

  
	
  PJC Hyde
  Park Realty LLC

  
	
  PJC
  Manchester Realty LLC

  
	
  PJC
  Mansfield Realty LLC

  
	
  PJC New
  London Realty LLC

  
	
  PJC Norwich
  Realty LLC

  
	
  PJC
  Peterborough Realty LLC

  
	
  PJC
  Peterborough Realty II LLC

  
	
  PJC
  Providence Realty LLC

  
	
  PJC Realty
  N.E. LLC

  
	
  PJC Revere
  Realty LLC

  
	
  Maxi Drug
  South, L.P.Exhibit
4.10

 

 

SUPPLEMENTAL INDENTURE

 

dated
as of June 4, 2007

 

between

 

RITE AID CORPORATION,

 

THE SUBSIDIARIES NAMED HEREIN

 

and

 

THE BANK OF NEW YORK TRUST COMPANY, N.A.,

 

successor
to BNY Midwest Trust Company

 

as
Trustee

 

to
the

 

INDENTURE

 

dated
as of January 11, 2005

 

between

 

RITE AID CORPORATION

 

and

 

BNY MIDWEST TRUST COMPANY

 

as
Trustee

 

 

7.5% SENIOR SECURED NOTES DUE 2015

 

 

THIS
SUPPLEMENTAL INDENTURE (the “Supplemental Indenture”), dated
as of June 4, 2007, among Rite Aid Corporation, a Delaware corporation
(the “Company”), each of the subsidiaries of the Company listed on
Schedule I hereto (each such subsidiary individually, a “Subsidiary” and
collectively, the “Subsidiaries”) and The Bank of New York Trust
Company, N.A., as successor to BNY Midwest Trust Company, the trustee under the
Indenture referred to below (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the Company
has heretofore executed and delivered an indenture  (the “Indenture”), dated as of January 11,
2005, between the Company and the Trustee, pursuant to which the Company has
issued its 7.5% Senior Secured Notes due 2015 (collectively, the “Securities”);

 

WHEREAS, each of the
Subsidiaries wishes to Guarantee the obligations of the Company under the
Indenture and the Securities on the terms set forth herein and, in accordance
with Section 4.09 of the Indenture, execute and deliver this Supplemental
Indenture providing for such Guarantee;

 

WHEREAS, Section 9.01
of the Indenture provides that the Company and the Trustee may amend the Indenture
or the Securities without notice to or consent of any Holder of the Securities
to add Guarantees with respect to the Securities; and

 

WHEREAS, the
respective Boards of Directors, Managers or Partners of the Company and each of
the Subsidiaries, as applicable, have authorized and approved the execution and
delivery of this Supplemental Indenture.

 

NOW,
THEREFORE, in consideration of the foregoing and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company, the Subsidiaries and the Trustee mutually covenant
and agree for the equal and ratable benefit of the Holders as follows:

 

ARTICLE 1

CAPITALIZED TERMS

 

Section 1.01          Capitalized Terms.

 

Capitalized terms used
herein but not defined shall have the meanings assigned to them in the
Indenture.

 

 

 

ARTICLE 2

GUARANTEE OF THE SECURITIES

 

Section 2.01             Guarantee.

 

Subject to the provisions of
this Article 2, each Subsidiary hereby unconditionally guarantees, jointly
and severally, on a senior, unsubordinated basis, to each Holder and to the
Trustee and its successors and assigns (a) the full and punctual payment
of principal of and interest on the Securities when due, whether at maturity,
by acceleration, by redemption or otherwise, and all other monetary obligations
of the Company under the Indenture, this Supplemental Indenture and the
Securities and (b) the full and punctual performance within applicable
grace periods of all other obligations of the Company under the Indenture, this
Supplemental Indenture and the Securities (all the foregoing being hereinafter
collectively called the “Obligations”). 
Each Subsidiary further agrees that the Obligations may be extended or
renewed, in whole or in part, without notice or further assent from such Subsidiary,
and that such Subsidiary will remain bound under this Article 2
notwithstanding any extension or renewal of any Obligation.

 

Any term or provision of
this Supplemental Indenture to the contrary notwithstanding, the maximum
aggregate amount of the obligations guaranteed hereunder by any Subsidiary
shall not exceed the maximum amount that can be hereby guaranteed without
rendering the Indenture and this Supplemental Indenture, as they relate to such
Subsidiary, voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer or similar laws affecting the rights of creditors
generally.

 

Each Subsidiary waives
presentation to, demand of, payment from and protest to the Company of any of
the Obligations and also waives notice of protest for nonpayment.  Each Subsidiary waives notice of any default
under the Securities or the Obligations. 
The obligations of each Subsidiary hereunder shall not be affected by (a) the
failure of any Holder or the Trustee to assert any claim or demand or to
enforce any right or remedy against the Company or any other Person under the
Indenture, this Supplemental Indenture, the Securities or any other agreement
or otherwise; (b) any extension or renewal of any thereof; (c) any
rescission, waiver, amendment or modification of any of the terms or provisions
of the Indenture, this Supplemental Indenture, the Securities or any other
agreement; (d) the release of any security held by any Holder or the
Trustee for the Obligations or any of them; or (e) the failure of any
Holder or the Trustee to exercise any right or remedy against any other
guarantor of the Obligations. Each Subsidiary further agrees that its
Subsidiary Guarantee herein constitutes a guarantee of payment, performance and
compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder or the Trustee to any security
held for payment of the Obligations.

 

Except as expressly set
forth in Section 8.01(b) of the Indenture and 2.06 of this Supplemental
Indenture, the obligations of each Subsidiary hereunder shall not be subject to
any reduction, limitation, impairment or termination for any reason, including
any claim of waiver, release, surrender, alteration or compromise, and shall
not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or 

 

2

 

unenforceability of the
Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of each Subsidiary
herein shall not be discharged or impaired or otherwise affected by the failure
of any Holder or the Trustee to assert any claim or demand or to enforce any
remedy under the Indenture, this Supplemental Indenture, the Securities or any
other agreement, by any waiver or modification of any thereof, by any default,
failure or delay, willful or otherwise, in the performance of the obligations,
or by any other act or thing or omission or delay to do any other act or thing
which may or might in any manner or to any extent vary the risk of such
Subsidiary or would otherwise operate as a discharge of such Subsidiary as a
matter of law or equity.

 

Each Subsidiary further
agrees that its Subsidiary Guarantee herein shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof,
of principal of or interest on any Obligation is rescinded or must otherwise be
restored by any Holder or the Trustee upon the bankruptcy or reorganization of
the Company or otherwise.

 

In furtherance of the
foregoing and not in limitation of any other right which any Holder or the
Trustee has at law or in equity against any Subsidiary by virtue hereof, upon
the failure of the Company to pay the principal of or interest on any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, or to perform or comply with any
other Obligation, each Subsidiary hereby promises to and will, upon receipt of
written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to
the Holders or the Trustee an amount equal to the sum of (i) the unpaid
amount of such Obligations, (ii) accrued and unpaid interest on such
Obligations (but only to the extent not prohibited by law) and (iii) all
other monetary Obligations of the Company to the Holders and the Trustee.

 

Each Subsidiary agrees that
it shall not be entitled to any right of subrogation in respect of any
Obligations guaranteed hereby until payment in full in cash of all
Obligations.  Each Subsidiary further
agrees that, as between it, on the one hand, and the Holders and the Trustee,
on the other hand, (x) the maturity of the Obligations guaranteed hereby
may be accelerated as provided in Article VI of the Indenture for the
purposes of such Subsidiary’s Subsidiary Guarantee herein, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the Obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such Obligations as provided in Article VI
of the Indenture, such Obligations (whether or not due and payable) shall
forthwith become due and payable by such Subsidiary for the purposes of this
Section.

 

Each Subsidiary also agrees
to pay any and all costs and expenses (including reasonable attorneys’ fees)
incurred by the Trustee or any Holder in enforcing any rights under this Section 2.01.

 

Section 2.02          Contribution.

 

Each of the Company and any
Subsidiary (a “Contributing Party”) agrees that, in the event a payment
shall be made by any other Subsidiary under any Subsidiary Guarantee (the “Claiming
Guarantor”), the Contributing Party shall indemnify the Claiming Guarantor
in an amount equal to the amount of such payment multiplied by a fraction, the
numerator of which shall be the net worth of the Contributing Party on the date
hereof and the denominator of which 

 

3

 

shall be the aggregate net worth of the Company and all the
Subsidiaries on the date of this Supplemental Indenture.

 

Section 2.03          Successors and Assigns.

 

This Article 2 shall be
binding upon each Subsidiary and its successors and assigns and shall inure to
the benefit of the successors and assigns of the Trustee and the Holders and,
in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges conferred upon that party in the Indenture,
this Supplemental Indenture and in the Securities shall automatically extend to
and be vested in such transferee or assignee, all subject to the terms and
conditions of the Indenture and this Supplemental Indenture.

 

Section 2.04          No Waiver.

 

Neither a failure nor a
delay on the part of either the Trustee or the Holders in exercising any right,
power or privilege under this Article 2 shall operate as a waiver thereof,
nor shall a single or partial exercise thereof preclude any other or further
exercise of any right, power or privilege. 
The rights, remedies and benefits of the Trustee and the Holders herein
expressly specified are cumulative and not exclusive of any other rights,
remedies or benefits which either may have under this Article 2 at law, in
equity, by statute or otherwise.

 

Section 2.05          Modification.

 

No modification, amendment
or waiver of any provision of this Article 2, nor the consent to any
departure by any Subsidiary therefrom, shall in any event be effective unless
the same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.  No notice to or demand
on any Subsidiary in any case shall entitle such Subsidiary to any other or
further notice or demand in the same, similar or other circumstances.

 

Section 2.06          Release of Subsidiary.

 

A Subsidiary shall be
released from all of its obligations under its Guarantee hereunder:

 

(i)            upon the sale (including any sale
pursuant to any exercise of remedies by a holder of indebtedness of the Company
or of such Subsidiary), transfer or other disposition (including by way of
consolidation or merger) of all the Capital Stock of such Subsidiary; or

 

(ii)           upon request of the Company without
consent of any Holder unless, within 20 Business Days after written notice of
the proposed release of such Subsidiary is mailed to the Trustee and the
Holders, Holders of 25% of the outstanding principal amount of Securities
deliver to the Company a written objection to such release; or

 

4

 

(iii)          with the written consent of the
Holders of at least a majority of the aggregate principal amount of the
Securities then outstanding; or

 

(iv)          upon defeasance of the Securities
pursuant to Article VIII of the Indenture; or

 

(v)           upon the full satisfaction of the
Company’s obligations under the Indenture pursuant to Section 8.01(a) of
the Indenture or otherwise in accordance with the terms of the Indenture;

 

(vi)          in the event such Guarantee would no
longer be required pursuant to Section 4.09 of the Indenture; or

 

(vii)         upon such Subsidiary becoming party to
the Second Priority Collateral Documents;

 

provided, however, that in
the case of clause (i) above, (a) such sale or other disposition is
made to a Person other than the Company or a Subsidiary of the Company, (b) such
sale, transfer or other disposition is otherwise permitted by the Indenture and
this Supplemental Indenture and (c) the Company provides an Officers’
Certificate to the Trustee to the effect that the Company will comply with its
obligations under Section 4.06 of the Indenture.

 

At the request of the
Company, the Trustee shall execute and deliver an appropriate instrument
evidencing such release.

 

ARTICLE 3

MISCELLANEOUS

 

Section 3.01          Ratification of Indenture;
Supplemental Indenture Part of Indenture.

 

Except as expressly
supplemented hereby, the Indenture is in all respects ratified and confirmed
and all the terms, conditions and provisions thereof shall remain in full force
and effect.  This Supplemental Indenture
shall form a part of the Indenture for all purposes, and every Holder of the
Securities heretofore or hereafter authenticated and delivered shall be bound
hereby.  In the event of a conflict
between the terms and conditions of the Indenture and the terms and conditions
of this Supplemental Indenture, then the terms and conditions of this
Supplemental Indenture shall prevail.

 

Section 3.02          Governing Law.

 

THE INTERNAL LAW OF THE
STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE WITHOUT GIVING 

 

5

 

EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 3.03          Trustee Makes No Representation.

 

The recitals contained
herein are those of the Company and the Subsidiaries and not the Trustee, and
the Trustee assumes no responsibility for the correctness of same. The Trustee
makes no representations as to the validity or sufficiency of this Supplemental
Indenture. All rights, protections, privileges, indemnities and benefits
granted or afforded to the Trustee under the Indenture shall be deemed
incorporated herein by this reference and shall be deemed applicable to all
actions taken, suffered or omitted by the Trustee under this Supplemental
Indenture.

 

Section 3.04          Counterparts.

 

The parties may sign any
number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

 

Section 3.05          Effect of Headings.

 

The section headings herein
are for convenience only and shall not effect the construction thereof.

 

[The
remainder of this page is intentionally left blank]

 

6

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be duly executed as
of the date first written above.

 

	
   

  	
  RITE AID CORPORATION, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin Twomey

  
	
   

  	
   

  	
  Name:

  	
  Kevin Twomey

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EACH OF THE SUBSIDIARIES

  LISTED ON SCHEDULE I HERETO, as

  Guarantors

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert B. Sari

  
	
   

  	
   

  	
  Name:

  	
  Robert B. Sari

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK
  OF NEW YORK TRUST

  
	
   

  	
   

  	
  COMPANY, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D.G. Donovan

  
	
   

  	
   

  	
  Name:

  	
  D.G. Donovan

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

Schedule I

 

SUBSIDIARIES

 

	
  JCG (PJC) USA, LLC

  
	
  Jean Coutu Group Holdings
  (USA), LLC

  
	
  PJC Dorchester Realty LLC

  
	
  PJC East Lyme Realty LLC

  
	
  PJC Essex Realty LLC

  
	
  PJC Haverhill Realty LLC

  
	
  PJC Hermitage Realty LLC

  
	
  PJC Hyde Park Realty LLC

  
	
  PJC Manchester Realty LLC

  
	
  PJC Mansfield Realty LLC

  
	
  PJC New London Realty LLC

  
	
  PJC Norwich Realty LLC

  
	
  PJC Peterborough Realty
  LLC

  
	
  PJC Peterborough Realty II
  LLC

  
	
  PJC Providence Realty LLC

  
	
  PJC Realty N.E. LLC

  
	
  PJC Revere Realty LLC

  
	
  Maxi Drug South, L.P.

  
	
  Brooks Pharmacy, Inc.

  
	
  Eckerd Corporation

  
	
  EDC Licensing, Inc.

  
	
  Genovese Drug Stores, Inc.

  
	
  JCG Holdings (USA), Inc.

  
	
  Maxi Drug North, Inc.

  
	
  Maxi Drug, Inc.

  
	
  P.J.C. Distribution, Inc.

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

  
	
  PJC Lease Holdings, Inc.

  
	
  PJC Special Realty
  Holdings, Inc.

  
	
  The Jean Coutu Group (PJC)
  USA, Inc.

  

 

 

	
  Thrift Drug Services, Inc.

  
	
  Thrift Drug, Inc.

  
	
  Eckerd Fleet, Inc.

  
	
  PJC of Massachusetts, Inc.

  
	
  PJC Realty MA, Inc.

  
	
  EDC Drug Stores, Inc.

  
	
  MC Woonsocket, Inc.

  
	
  PJC of Cranston, Inc.

  
	
  PJC of East Providence, Inc.

  
	
  PJC of Rhode Island, Inc.

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

  
	
  Maxi Green Inc.

  
	
  PJC of Vermont, Inc.

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