Document:

ex10-1.htm

    Exhibit
10.1

     

    EXECTUTION
COPY

     

     

    
      RITE
AID CORPORATION.

      $410,000,000
9.750% Senior Secured Notes due 2016

       

      EXCHANGE
AND REGISTRATION RIGHTS AGREEMENT

       

      June
12, 2009

      Citigroup
Global Markets Inc.

      Banc
of America Securities LLC

      Wachovia
Capital Markets, LLC

      As
Initial Purchasers

      c/o
Citigroup Global Markets Inc.

      388
Greenwich Street

      New
York, New York 10013

       

      Ladies
and Gentlemen:

       

      Rite
Aid Corporation, a Delaware corporation (the “Company”), proposes to issue and
sell, upon the terms set forth in a purchase agreement dated June 8, 2009 (the
“Purchase Agreement”), to the initial purchasers set forth in the Purchase
Agreement (the “Initial Purchasers”), $410,000,000 aggregate principal amount of
its 9.750% Senior Secured Notes due 2016 (the “Securities”) to be guaranteed by
the subsidiary guarantors listed on Schedule I hereto (the “Subsidiary
Guarantors”) relating to the initial placement of the Securities (the “Initial
Placement”).  Capitalized terms used but not defined herein shall have
the meanings given to such terms in the Purchase Agreement.

       

      As
an inducement to the Initial Purchasers to enter into the Purchase Agreement,
and as satisfaction of the conditions thereunder, the Company and the Subsidiary
Guarantors agree with you for your benefit and the benefit of the holders from
time to time of the Securities (including the Initial Purchasers) and the
Exchange Securities (as defined herein) (each a “Holder” and collectively, the
“Holders”), as follows:

       

      1.  Registered Exchange
Offer.  Unless the Registered Exchange Offer (as defined
herein) shall not be permitted by applicable law or applicable interpretation of
the staff of the Securities and Exchange Commission (the “SEC” or “Commission”),
the Company shall (i) prepare and, not later than 150 days following the
date of the original issuance of the Securities (the date of such filing being
referred to herein as the “Filing Date”), file with the Commission a
registration statement (the “Exchange Offer Registration Statement”) on an
appropriate form under the Securities Act with respect to a proposed offer to
the Holders of the Securities (the “Registered Exchange Offer”) to issue and
deliver to such Holders, in exchange for the Securities a like aggregate
principal amount of debt securities of the Company (the “Exchange Securities”)
that are substantially identical in all material respects to the Securities,
except for the transfer 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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        restrictions
relating to the Securities, (ii) use its commercially reasonable efforts to
cause the Exchange Offer Registration Statement to become effective under the
Securities Act no later than 210 days after the Filing Date and (iii) as
soon as practicable after the effectiveness of the Exchange Offer Registration
Statement, initiate the Registered Exchange Offer as set forth in the following
paragraph.  The Exchange Securities will be issued under the same
indenture as the Securities (the “Indenture”) to be dated as of June 12,
2009, between the Company and the Trustee or such other bank or trust company
that is reasonably satisfactory to the Initial Purchasers, as trustee (the
“Trustee”), with such modifications as may be appropriate to account for the
registration of the Exchange Securities under the Securities
Act.

      

       

      Upon
the effectiveness of the Exchange Offer Registration Statement, the Company
shall commence the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder electing to exchange Securities
for Exchange Securities (assuming that such Holder (a) is not an affiliate
of the Company or an Exchanging Dealer (as defined herein) not complying with
the requirements of the next sentence, (b) is not holding Securities that
have, or that are reasonably likely to have, the status of an unsold allotment
in the Initial Placement, (c) acquires the Exchange Securities in the
ordinary course of such Holder’s business and (d) has no arrangements or
understandings with any person to participate, and is not participating, in the
distribution of the Exchange Securities) and to trade such Exchange Securities
from and after their receipt without any limitations or restrictions under the
Securities Act and without material restrictions under the securities laws of
the several states of the United States.  The Company, the Holders and
each Exchanging Dealer acknowledge that, pursuant to current interpretations by
the Commission’s staff of Section 5 of the Securities Act, each Holder that is a
Broker-Dealer electing to exchange Securities, acquired for its own account as a
result of market-making activities or other trading activities, for Exchange
Securities (an “Exchanging Dealer”), is required, in connection with a sale of
any such Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer, to deliver a prospectus containing substantially the
information set forth (i) in Annex A hereto on the cover of such
prospectus, (ii) in Annex B hereto in the “Exchange Offer Procedures”
section and the “Purpose of the Exchange Offer” section of such prospectus and
(iii) in Annex C hereto in the “Plan of Distribution” section of such
prospectus, in each case subject to any changes, additions, deletions or moving
of such disclosure required by the SEC.

       

      In
connection with the Registered Exchange Offer, the Company shall:

       

      (a)  mail
to each Holder of Securities a copy of the prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate letter of
transmittal and related documents;

       

      (b)  keep
the Registered Exchange Offer open for not less than 30 days and not more
than 60 business days (or, in each case, longer, if required by applicable
law) after the date on which notice of the Registered Exchange Offer is mailed
to the Holders of Securities and the Initial Purchasers;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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      (c)  utilize
the services of a depositary for the Registered Exchange Offer with an address
in the Borough of Manhattan, The City of New York;

       

      (d)  permit
Holders to withdraw tendered Securities at any time prior to the end of the
Registered Exchange Offer, as set forth in the materials originally mailed to
Holders of Securities or otherwise extended by the Company;

       

      (e)  comply
with all requests of the Securities and Exchange Commission in order to
consummate the Registered Exchange Offer; and

       

      (f)  comply
in all respects with all laws that are applicable to the Registered Exchange
Offer.

       

      As
soon as practicable after the close of the Registered Exchange Offer, the
Company shall:

       

      (a)  accept
for exchange all Securities tendered and not validly withdrawn pursuant to the
Registered Exchange Offer;

       

      (b)  deliver
to the Trustee for due cancelation all Securities so accepted for exchange;
and

       

      (c)  cause
the Trustee for the Exchange Securities promptly to authenticate and deliver to
each Holder, Exchange Securities equal in principal amount to the Securities of
such Holder so accepted for exchange.

       

      The
Company shall use its best efforts to keep the Exchange Offer Registration
Statement effective and to amend and supplement the prospectus contained therein
in order to permit such prospectus to be used by all persons subject to the
prospectus delivery requirements of the Securities Act for such period of time
as such persons must comply with such requirements in order to resell the
Exchange Securities; provided that (i) in
the case where such prospectus and any amendment or supplement thereto must be
delivered by an Exchanging Dealer, such period shall be the earlier of
210 days from the close of the Registered Exchange Offer and the date on
which all Exchanging Dealers have sold all Exchange Securities held by them and
(ii) the Company shall make such prospectus and any amendment or supplement
thereto available to any Broker-Dealer for use in connection with any resale of
any Exchange Securities for a period of not less than 90 days after the
consummation of the Registered Exchange Offer.

       

      Notwithstanding
the foregoing, during any 365-day period, the Company may suspend the
effectiveness of the Exchange Offer Registration Statement or the Shelf
Registration Statement (i) in relation to a Shelf Registration Statement, solely
for the purpose of filing of a post-effective amendment to such Shelf
Registration Statement for such time as is reasonably necessary to incorporate
annual audited financial information, quarterly financial information or other
information required by the Commission with respect to the Company (a “Shelf
Suspension Period”) where such post-effective amendment is not yet effective and
needs to be declared effective to permit Holders of 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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        the
Securities to use the related prospectus and the Company is using its
commercially reasonable best efforts to have such post-effective amendment
declared effective or (ii) for up to 2 periods (each such period pursuant to
this clause (ii) a “Suspension Period”) of up to 45 consecutive days
(except for the consecutive 45-day period immediately prior to maturity of the
Securities), but no more than an aggregate of 75 days during any 365-day period,
if there is a possible acquisition or business combination or other transaction,
business development or event involving the Company that may require disclosure
in the Exchange Offer Registration Statement or the Shelf Registration Statement
and the Company determines in the exercise of its reasonable judgment that such
disclosure is not in the best interests of the Company and its stockholders or
obtaining any financial statements relating to an acquisition or business
combination required to be included in the Exchange Offer Registration Statement
or the Shelf Registration Statement would be impracticable.  In such a
case, the Company shall promptly notify any such Broker-Dealers of the
suspension of the effectiveness of the Exchange Offer Registration Statement or
the Shelf Registration Statement, as the case may be, provided that such
notice shall not require the Company to disclose the possible acquisition or
business combination or other transaction, business development or event if the
Company determines in good faith that such acquisition or business combination
or other transaction, business development or event should remain
confidential.  Upon the abandonment, consummation or termination of
the possible acquisition or business combination or other transaction, business
development or event or the availability of the required financial statements
with respect to a possible acquisition or business combination, the suspension
of the use of the Exchange Offer Registration Statement or the Shelf
Registration Statement, as the case may be, pursuant to this paragraph shall
cease and the Company shall promptly notify such Broker-Dealers that the use of
the prospectus contained in the Exchange Offer Registration Statement or the
Shelf Registration Statement, as the case may be, as amended or supplemented, as
applicable, may resume.  The Company shall provide sufficient copies
of the latest version of such prospectus to such Broker-Dealers, promptly upon
written request, and in no event later than one Business Day after such request,
at any time during such period.

      

       

      The
Indenture shall provide that the Securities and the Exchange Securities shall
vote and consent together on all matters as to which the Indenture provides for
voting and consent as one class and that neither the Securities nor the Exchange
Securities will have the right to vote or consent as a separate class on any
matter.

       

      Interest
on each Exchange Security issued pursuant to the Registered Exchange Offer will
accrue from the last interest payment date on which interest was paid on the
Securities surrendered in exchange therefor or, if no interest has been paid on
the Securities, from the date of the closing of the Exchange Offer.

       

      Each
Holder hereby acknowledges and agrees that any such Holder using the Registered
Exchange Offer to participate in a distribution of the Exchange Securities
(x) could not under Commission policy as in effect on the date of this
Agreement rely on the position of the Commission in Morgan Stanley and Co.,
Inc. (pub. avail. June 5, 1991) and Exxon Capital Holdings
Corporation (pub. avail. May 13, 1988), as interpreted 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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        in
the Commission’s letter to Shearman & Sterling dated July 2, 1993
and similar no-action letters, and (y) must comply with the registration
and prospectus delivery requirements of the Securities Act in connection with
any secondary resale transaction which must be covered by an effective
registration statement containing the selling security holder information
required by Item 507 or 508, as applicable, of Regulation S-K under
the Securities Act if the resales are of Exchange Securities obtained by such
Holder in exchange for Securities acquired by such Holder directly from the
Company or one of its affiliates.  Accordingly, each Holder
participating in the Registered Exchange Offer shall be required to represent to
the Company that at the time of the consummation of the Registered Exchange
Offer (i) any Exchange Securities received by such Holder will be acquired in
the ordinary course of business, (ii) such Holder will have no arrangements or
understanding with any person to participate, and is not participating, in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act, (iii) such Holder is not an affiliate of the Company
or, if it is such an affiliate (as defined in Section 10(e)), such Holder
will comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable, (iv) it is not acting on behalf of any
person who, to its knowledge, could not truthfully make the foregoing
representations and (v) it shall have made such other representations as may be
reasonably necessary under applicable SEC rules, regulations or interpretations
to render the use of Form S-4 or another appropriate form under the Securities
Act available or for the Exchange Offer Registration Statement to be declared
effective.  To the extent permitted by law, upon the written request
of the Initial Purchasers, the Company shall inform the Initial Purchasers of
the names and addresses of the Holders to whom the Exchange Offer is made, and
the Initial Purchasers shall have the right to contact such Holders and
otherwise facilitate the tender of Securities in the Exchange
Offer.

      

       

      Notwithstanding
any other provisions hereof, the Company will ensure that (i) any Exchange Offer
Registration Statement and any amendment thereto and any prospectus forming part
thereof and any supplement thereto shall comply in all material respects with
the Securities Act and the rules and regulations of the Commission thereunder,
(ii) any Exchange Offer Registration Statement and any amendment thereto shall
not, when it becomes effective, contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading and (iii) any prospectus forming part
of any Exchange Offer Registration Statement, and any supplement to such
prospectus, shall not, as of the consummation of the Registered Exchange Offer,
include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

       

      If
any Initial Purchaser determines that it is not eligible to participate in the
Registered Exchange Offer with respect to the exchange of Securities
constituting any portion of an unsold allotment, at the written request of such
Initial Purchaser, the Company shall issue and deliver to such Initial Purchaser
or the person purchasing Exchange Securities registered under a Shelf
Registration Statement (as contemplated by Section 2 hereof) from such Initial
Purchaser, in exchange for such Securities, a like principal amount of Exchange
Securities.  The Company shall use its best efforts to cause

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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        the
CUSIP Service Bureau to issue the same CUSIP number for such Exchange Securities
as for Exchange Securities issued pursuant to the Registered Exchange
Offer.

      

       

      2.  Shelf
Registration.  If (i) because of any change in law or
applicable interpretations thereof by the Commission’s staff the Company is not
permitted to effect the Registered Exchange Offer as contemplated by Section 1
hereof, (ii) the Exchange Offer Registration Statement is not declared effective
within 210 days after the original issuance of the Securities or the
Registered Exchange Offer is not consummated within 270 days after the
original issuance of the Securities, (iii) a Holder (including an Initial
Purchaser) of Securities notifies the Company following the completion of the
Registered Exchange Offer that the Securities held by such Holder are not
eligible to be exchanged for Exchange Securities in the Registered Exchange
Offer, (iv) certain Holders (other than the Initial Purchasers) of the
Securities are prohibited by law or the policy of the Commission from
participating in the Registered Exchange Offer or the Exchange Securities may
not be freely transferable by such Holders other than by reason of such Holder
being an affiliate of the Company (it being understood that the requirement that
a participating Broker-Dealer deliver the prospectus contained in the Exchange
Offer Registration Statement in connection with sales of Exchange Securities
shall not result in such Exchange Securities being not “freely transferable”),
or (v) in the case of any Initial Purchaser that participates in the
Registered Exchange Offer or acquires Exchange Securities pursuant to
Section 1(d) hereof, such Initial Purchaser does not receive freely
tradeable Exchange Securities in exchange for Securities constituting any
portion of an unsold allotment (it being understood that (x) the
requirement that an Initial Purchaser deliver a prospectus containing the
information required by Item 507 or 508 of Regulation S-K under the
Securities Act in connection with sales of Exchange Securities acquired in
exchange for such Securities shall not result in such Exchange Securities not
being “freely transferable” and (y) the requirement that an Exchanging
Dealer deliver a prospectus in connection with sales of Exchange Securities
acquired in the Registered Exchange Offer in exchange for Securities acquired as
a result of market-making activities or other trading activities shall not
result in such Exchange Securities being not “freely transferable”), then the
following provisions shall apply:

       

      (a)  The
Company shall promptly (i) file (but in no event more than 30 days after so
required or requested pursuant to this Section 2) with the Commission, and, if
such registration statement is not a registration statement that shall become
effective upon filing thereof pursuant to General Instruction I.D. of Form S-3
(an “Automatic Shelf Registration Statement”), thereafter shall use their
reasonable best efforts to cause to be declared effective, a shelf registration
statement on an appropriate form under the Securities Act relating to the offer
and sale of the Transfer Restricted Securities (as defined herein) by the
Holders thereof from time to time in accordance with the methods of distribution
set forth in such registration statement (hereafter, a “Shelf Registration
Statement” and, together with any Exchange Offer Registration Statement, a
“Registration Statement”) or (ii) solely at its option, in lieu of filing a
shelf registration statement and causing such registration statement to be
declared effective as described in clause (i) above, designate, by means of an
Officers’ Certificate (as defined in the Indenture), an existing Automatic Shelf
Registration Statement as a Shelf Registration Statement able to be used for the
offer and sale of the Transfer Restricted Securities.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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      (b)  Subject
to any Suspension Periods provided for in Section 1, the Company shall keep
the Shelf Registration Statement continuously effective, supplemented and
amended, or shall file additional registration statements, as required by the
Securities Act, in order to permit the prospectus forming part thereof to be
used by Holders of Transfer Restricted Securities for a period ending on the
earlier of (i) one year from the effective date of the Shelf Registration
Statement or such shorter period that will terminate when all the Transfer
Restricted Securities covered by the Shelf Registration Statement have been sold
pursuant thereto and (ii) the date the Transfer Restricted Securities cease to
be outstanding (in any such case, such period being called the “Shelf
Registration Period”).  The Company shall be deemed not to have
complied with this paragraph (b) if it voluntarily takes any action that
would result in Holders of Transfer Restricted Securities covered thereby not
being able to offer and sell such Transfer Restricted Securities during that
period, unless such action is required by applicable law.

       

      (c)  Notwithstanding
any other provisions hereof, the Company shall ensure that (i) any Shelf
Registration Statement and any amendment thereto and any prospectus forming part
thereof and any supplement thereto complies in all material respects with the
Securities Act and the rules and regulations of the Commission thereunder, (ii)
any Shelf Registration Statement and any amendment thereto (in either case,
other than with respect to information included therein in reliance upon or in
conformity with written information furnished to the Company by or on behalf of
any Holder specifically for use therein (the “Holders’ Information”)) does not,
when it becomes effective, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading and (iii) any prospectus forming part of
any Shelf Registration Statement, and any supplement to such prospectus (in
either case, other than with respect to Holders’ Information), does not include
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

       

      3.  Additional
Interest.  1)If (i) neither the Exchange Offer
Registration Statement nor the Shelf Registration Statement, as the case may be,
is filed with the Commission on or prior to the date which is 150 days
following the date of the original issuance of the Securities, (ii) the
Exchange Offer Registration Statement or the Shelf Registration Statement, as
the case may be, is not declared effective or an Automatic Shelf Registration
Statement is not designated as a Shelf Registration Statement able to be used
for the offer and sale of the Transfer Restricted Securities within
210 days after the original issuance of the Securities, (iii) the
Exchange Offer Registration Statement is declared effective, the Registered
Exchange Offer is not consummated on or prior to 270 days after the date of
the original issuance of Securities, (iv) the Company is required to file
the Shelf Registration Statement in accordance with Section 2, the Company
does not so file the Shelf Registration Statement or designate an Automatic
Shelf Registration Statement to be used for the offer and sale of the Transfer
Restricted Securities and a prospectus supplement covering the offer and sale of
the Transfer Restricted Securities is not filed with respect to an Automatic
Shelf Registration Statement so designated on or prior to the 30th day after the
Company’s obligation to file such Shelf Registration Statement arises,
(v) the applicable Registration Statement is filed and declared effective

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          8
or
so designated but shall thereafter cease to be effective (at any time that the
Company is obligated to maintain the effectiveness thereof) without being again
effective within 30 days or being succeeded within 30 days by an
additional Registration Statement filed and declared effective or immediately
effective, provided that such
30-day period shall toll during a Suspension Period or during any Shelf
Suspension Period, or (vi) any Suspension Periods exceed, in the aggregate,
75 days during any 365-day period (each such event referred to in
clauses (i) through (vi), a “Registration Default”), the Company shall be
obligated to pay additional interest (“Additional Interest”) to each Holder of
Transfer Restricted Securities, during the period of one or more such
Registration Defaults, at a rate of 0.25% per annum on the applicable principal
amount of Transfer Restricted Securities held by such Holder for the first
90-day period immediately following the occurrence of a Registration Default,
and such rate will increase by an additional 0.25% with respect to each
subsequent 90-day period until all Registration Defaults have been cured, provided that the
maximum additional rate may in no event exceed 0.50% per annum.  Such
obligation to pay Additional Interest shall survive until (i) the applicable
Registration Statement is filed, (ii) the Exchange Offer Registration Statement
is declared effective and the Registered Exchange Offer is consummated with
respect to all properly tendered Securities, (iii) the Shelf Registration
Statement is declared effective or (iv) the Shelf Registration Statement again
becomes effective (or is superseded by another effective Shelf Registration
Statement), as the case may be. Following the cure of all Registration Defaults,
the accrual of Additional Interest will cease.

      

       

      As
used herein, the term “Transfer Restricted Securities” means (i) each Security
until the date on which such Security has been exchanged for a freely
transferable Exchange Security in the Registered Exchange Offer, (ii) each
Security until the date on which it has been effectively registered under the
Securities Act and disposed of in accordance with the Shelf Registration
Statement or (iii) each Security until the date on which it is distributed
to the public pursuant to Rule 144 under the Securities Act or is saleable
pursuant to Rule 144 without limitations.  Notwithstanding anything to
the contrary in this Section 3(a), the Company shall not be required to pay
Additional Interest to a Holder of Transfer Restricted Securities if such Holder
failed to comply with its obligations to make the representations set forth in
the third to last paragraph of Section 1 or failed to provide the information
required to be provided by it, if any, pursuant to
Section 4(n).

       

      (b)  The
Company shall notify the Trustee and the paying agent under the Indenture
immediately upon the happening of each and every Registration
Default.  The Company shall pay the Additional Interest due on the
Transfer Restricted Securities by depositing with the paying agent (which may
not be the Company for these purposes), in trust, for the benefit of the Holders
thereof, prior to 11:00 a.m., New York City time, on the next applicable
interest payment date specified by the Indenture and the Securities, sums
sufficient to pay the Additional Interest then due.  The Additional
Interest due shall be payable on each applicable interest payment date specified
by the Indenture and the Securities to the record holder entitled to receive the
interest payment to be made on such date.  Each obligation to pay
Additional Interest shall be deemed to accrue from and include the date of the
applicable Registration Default.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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      (c)  The
parties hereto agree that the Additional Interest provided for in this Section 3
constitute a reasonable estimate of and are intended to constitute the sole
damages that will be suffered by Holders of Transfer Restricted Securities by
reason of the failure of (i) the Shelf Registration Statement or the Exchange
Offer Registration Statement to be filed, (ii) the Shelf Registration Statement
to remain effective or (iii) the Exchange Offer Registration Statement to be
declared effective and the Registered Exchange Offer to be consummated, in each
case to the extent required by this Agreement.

       

      4.  Registration
Procedures.  In connection with any Registration Statement, the
following provisions shall apply:

       

      (a)  The
Company shall (i) furnish to each of the Initial Purchasers a copy of the
Registration Statement and each amendment thereof and each supplement (other
than reports required to be filed by it under the Exchange Act), if any, to the
prospectus included therein and shall use its reasonable best efforts to reflect
in each such document, when so filed with the Commission, such comments as any
Initial Purchaser or any Holder may reasonably propose; (ii) include the
information set forth (A) in Annex A hereto on the cover of such prospectus, (B)
in Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose of
the Exchange Offer” section of such prospectus, (C) in Annex C hereto in the
“Plan of Distribution” section of the prospectus forming a part of the Exchange
Offer Registration Statement and (D) in Annex D hereto in any Letter of
Transmittal delivered pursuant to the Registered Exchange Offer, in each case
subject to any changes, additions, deletions or moving of such disclosure
required by the SEC; and (iii) if requested by an Initial Purchaser, include the
information required by Items 507 or 508 of Regulation S-K, as applicable, in
the prospectus forming part of the Exchange Offer Registration
Statement.

       

      (b)  The
Company shall advise each of the Initial Purchasers, each Exchanging Dealer and
the Holders (if applicable) and, if requested by any such person, confirm such
advice in writing (which advice pursuant to clauses (ii)-(v) hereof shall be
accompanied by an instruction to suspend the use of the prospectus until the
requisite changes have been made):

       

      i)
when any Registration Statement and any amendment thereto has been filed with
the Commission and when such Registration Statement or any post-effective
amendment thereto has become effective;

       

      ii)
of any request by the Commission for amendments or supplements to any
Registration Statement or the prospectus included therein or for additional
information;

       

      iii)
if known by the Company, of the issuance by the Commission of any stop order
suspending the effectiveness of any Registration Statement or the initiation of
any proceedings for that purpose;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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      iv)
of the receipt by the Company of any notification with respect to the suspension
of the qualification of the Securities or the Exchange Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

       

      v)
of the happening of any event that requires the making of any changes in any
Registration Statement or the prospectus included therein in order that the
statements therein are not misleading and do not omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading.

       

      (c)  The
Company shall make every reasonable effort to obtain the withdrawal at the
earliest possible time of any order suspending the effectiveness of any
Registration Statement or qualifying the Securities therein for sale in any
jurisdiction.

       

      (d)  The
Company shall furnish to each Holder of Transfer Restricted Securities included
within the coverage of any Shelf Registration Statement, without charge, upon
the written request of such Holder, at least one conformed copy of such Shelf
Registration Statement and any post-effective amendment thereto, including all
material incorporated therein by reference, including financial statements and
schedules and, if any such Holder so requests in writing, all exhibits thereto
(including those, if any, incorporated by reference).

       

      (e)  The
Company shall, during the Shelf Registration Period, promptly deliver to each
Holder of Transfer Restricted Securities included within the coverage of any
Shelf Registration Statement, without charge, as many copies of the prospectus
(including each preliminary prospectus) included in such Shelf Registration
Statement and any amendment or supplement thereto as such Holder may reasonably
request; and the Company consents to the use of such prospectus or any amendment
or supplement thereto by each of the selling Holders of Transfer Restricted
Securities in connection with the offer and sale of the Transfer Restricted
Securities covered by such prospectus or any amendment or supplement
thereto.

       

      (f)  The
Company shall furnish to each Exchanging Dealer who so requests in writing,
without charge, at least one conformed copy of the Exchange Offer Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules and, if any Exchanging Dealer so requests in writing,
all exhibits thereto (including those, if any, incorporated by
reference).

       

      (g)  The
Company shall, during the Exchange Offer Registration Period or the Shelf
Registration Period, as applicable, promptly deliver to each Initial Purchaser,
each Exchanging Dealer and such other persons that are required to deliver a
prospectus following the Registered Exchange Offer, without charge, as many
copies of the final prospectus included in the Exchange Offer Registration
Statement or the Shelf Registration Statement and any amendment or supplement
thereto as such Initial Purchaser, Exchanging Dealer or other persons may
reasonably request; and the Company consents to the use of such prospectus or
any amendment or supplement thereto by any such Initial Purchaser, Exchanging
Dealer or other persons, as applicable, as aforesaid.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
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      (h)  Prior
to the effective date of any Registration Statement, the Company shall use its
reasonable best efforts to register or qualify, or cooperate with the Holders of
Securities or Exchange Securities included therein and their respective counsel
in connection with the registration or qualification of, such Securities or
Exchange Securities for offer and sale under the securities or blue sky laws of
such jurisdictions as any such Holder reasonably requests in writing and do any
and all other acts or things necessary or advisable to enable the offer and sale
in such jurisdictions of the Securities or Exchange Securities covered by such
Registration Statement, provided that the
Company shall not be required to qualify generally to do business in any
jurisdiction where it is not then so qualified or to take any action which would
subject it to general service of process or to taxation in any such jurisdiction
where it is not then so subject.

       

      (i)  The
Company shall cooperate with the Holders of Securities or Exchange Securities to
facilitate the timely preparation and delivery of certificates representing
Securities or Exchange Securities to be sold pursuant to any Registration
Statement free of any restrictive legends and in such denominations and
registered in such names as the Holders thereof may request in writing at least
one business day prior to sales of Securities or Exchange Securities pursuant to
such Registration Statement.

       

      (j)  If
any event contemplated by Section 4(b)(ii) through (v) occurs during the period
for which the Company is required to maintain an effective Registration
Statement, the Company shall promptly prepare and file with the Commission a
post-effective amendment to the Registration Statement or an amendment or a
supplement to the related prospectus or file any other required document so
that, as thereafter delivered to purchasers of the Securities or Exchange
Securities from a Holder, the prospectus will not include an untrue statement of
a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.  In such circumstances, other than with respect
to any Shelf Suspension Period, the period of effectiveness of the Exchange
Offer Registration Statement provided for in Section 1 and the Shelf
Registration Statement provided for in Section 2(b) shall each be extended
by the number of days from and including the date of the giving of a notice of
suspension pursuant to Section 4(b) to and including the date when the
Initial Purchasers, the Holders of the Securities and any known Exchanging
Dealer shall have received such amended or supplemented Prospectus pursuant to
this Section.

       

      (k)  Not
later than the effective date of the applicable Registration Statement, the
Company shall obtain a CUSIP number for the Securities and the Exchange
Securities and provide the applicable trustee with printed certificates for the
Securities or the Exchange Securities, as the case may be, in a form eligible
for deposit with The Depository Trust Company.

       

      (l)  The
Company shall comply with all applicable rules and regulations of the Commission
and make generally available to the Company’s security holders as soon as
reasonably practicable after the effective date of the applicable Registration
Statement an earning statement satisfying the provisions of Section 11(a) of the
Securities Act, provided that in no
event shall such earning statement be delivered later than 45 days 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          12

        

         

        after
the end of a 12-month period (or 90 days, if such period is a fiscal year)
beginning with the first month of the Company’s first fiscal quarter commencing
after the effective date of the applicable Registration Statement, which
statement shall cover such 12-month period.

      

       

      (m)  The
Company shall cause the Indenture to be qualified under the Trust Indenture Act
as required by applicable law in a timely manner.

       

      (n)  The
Company may require each Holder of Transfer Restricted Securities to be
registered pursuant to any Shelf Registration Statement to furnish to the
Company such information concerning the Holder and the distribution of such
Transfer Restricted Securities as the Company may from time to time reasonably
require for inclusion in such Shelf Registration Statement, and the Company may
exclude from such registration the Transfer Restricted Securities of any Holder
that fails to furnish such information within a reasonable time after receiving
such request.

       

      (o)  In
the case of a Shelf Registration Statement, each Holder of Transfer Restricted
Securities to be registered pursuant thereto agrees by acquisition of such
Transfer Restricted Securities that, upon receipt of any notice from the Company
pursuant to Section 4(b)(ii) through (v), such Holder will discontinue
disposition of such Transfer Restricted Securities until such Holder’s receipt
of copies of the supplemental or amended prospectus contemplated by Section 4(j)
or until advised in writing (the “Advice”) by the Company that the use of the
applicable prospectus may be resumed.  If the Company shall give any
notice under Section 4(b)(ii) through (v) during the period that the Company is
required to maintain an effective Registration Statement (the “Effectiveness
Period”), other than with respect to any Shelf Suspension Period, such
Effectiveness Period shall be extended by the number of days during such period
from and including the date of the giving of such notice to and including the
date when each seller of Transfer Restricted Securities covered by such
Registration Statement shall have received (x) the copies of the supplemental or
amended prospectus contemplated by Section 4(j) (if an amended or supplemental
prospectus is required) or (y) the Advice (if no amended or supplemental
prospectus is required).

       

      (p)  In
the case of a Shelf Registration Statement, the Company shall enter into such
customary agreements (including, if requested, an underwriting agreement in
customary form) and take all such other action, if any, as Holders of a majority
in aggregate principal amount of the Securities or Exchange Securities being
sold or the managing underwriters, if any, shall reasonably request in order to
facilitate any disposition of Securities or Exchange Securities pursuant to such
Shelf Registration Statement.

       

      (q)  In
the case of any Shelf Registration Statement, the Company shall:

       

      (i)
make reasonably available for inspection by the Holders of, representatives and
counsel to, a majority in aggregate principal amount of the Securities to be
registered thereunder, any underwriter participating in any disposition pursuant
to such Registration Statement and any attorney, accountant 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          13

        

         

        or
other agent retained by such Holders or any such underwriter all relevant
financial and other records, pertinent corporate documents and properties of the
Company;

      

       

      (ii)
cause the Company’s officers, directors and employees to supply all relevant
information reasonably requested by the Holders or any such underwriter,
attorney, accountant or agent in connection with any such Shelf Registration
Statement as is customary for similar due diligence examinations; provided, however, that the
foregoing inspection and information gathering shall be coordinated on behalf of
the Initial Purchasers by Citigroup Global Markets Inc. in connection with any
underwritten Shelf Registration Statement to which it is a party, and on behalf
of the Holders by one counsel designated by the Holders of a majority of the
Securities; provided, further, that any
information provided pursuant to Section 4(q)(i) and (ii) that is designated in
writing by the Company, in good faith, as confidential at the time of delivery
of such information shall be kept confidential by the Holders or any such
underwriter, attorney, accountant or agent, and shall be used only in connection
with such Shelf Registration and the transactions contemplated thereby unless
such disclosure is made in connection with a court proceeding or required by
law, or such information becomes available to the public generally or through a
third party without an accompanying obligation of confidentiality;

       

      (iii)
make such representations and warranties to the underwriters, if any, in form,
substance and scope as are customarily made by issuers to underwriters in
primary underwritten offerings and covering matters including, but not limited
to, those set forth in the Purchase Agreement;

       

      (iv)
obtain opinions of its counsel and updates thereof (which counsel and opinions
(in form, scope and substance) shall be reasonably satisfactory to the
underwriters, if any) addressed to each selling Holder and the underwriters, if
any, covering such matters as are customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by
such Holders and underwriters;

       

      (v)
if requested in writing by Holders of a majority in aggregate principal amount
of the Securities to be registered thereunder or by any underwriter
participating in any disposition pursuant to such Shelf Registration Statement,
to use its reasonable best efforts to obtain “cold comfort” letters and updates
thereof from the independent certified public accountants of the Company,
addressed to each selling Holder of Securities registered thereunder and the
underwriters, if any, in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with primary
underwritten offerings; and

       

      (vi)
deliver such documents and certificates as may be reasonably requested by the
Holders of a majority in aggregate principal amount of the Securities and the
Exchange Securities being sold and the underwriters, if any, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          14

        

         

        and
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company.

      

       

      The
actions set forth in clauses (iii), (iv) and (v) of this subsection shall
be performed at (A) the effectiveness of such Shelf Registration Statement
and, if applicable, each post-effective amendment thereto or, in the case of the
designation of an existing Automatic Shelf Registration Statement for the offer
and sale of Transfer Restricted Securities, upon the filing of a prospectus
supplement relating to such offer and sale of Transfer Restricted Securities or
any post-effective amendment thereto; and (B) each closing under any
underwriting or similar agreement as and to the extent required
thereunder.

       

      (r)  If
a Registered Exchange Offer is to be consummated, upon delivery of the
Securities by Holders to the Company (or to such other person as directed by the
Company) in exchange for the Exchange Securities, the Company shall mark, or
cause to be marked, on the Securities so exchanged that such Securities are
being canceled in exchange for the Exchange Securities.  In no event
shall the Securities be marked as paid or otherwise satisfied.

       

      (s)  The
Company will use its reasonable best efforts to cause the Securities covered by
a Registration Statement to be rated with at least one nationally recognized
statistical rating agency, if so requested by Holders of a majority in aggregate
principal amount of the Securities and the Exchange Securities being sold with
respect to the related Registration Statement or by any
underwriters.

       

      (t)  In
the event that any Broker-Dealer shall underwrite any Securities or participate
as a member of an underwriting syndicate or selling group or “assist in the
distribution” (within the meaning of the Rules of Fair Practice and the By-Laws
of the Financial Industry Regulatory Authority, Inc.) thereof, whether as a
Holder of such Securities or as an underwriter, a placement or sales agent or a
broker or dealer in respect thereof, or otherwise, the Company shall assist such
Broker-Dealer in complying with the requirements of such Rules and By-Laws,
including, without limitation, by:

       

      (i)
if such Rules or By-Laws shall so require, engaging a “qualified independent
underwriter” (as defined in such Rules) to participate in the preparation of the
Registration Statement, to exercise usual standards of due diligence with
respect thereto and, if any portion of the offering contemplated by such
Registration Statement is an underwritten offering or is made through a
placement or sales agent, to recommend the yield of such
Securities;

       

      (ii)
indemnifying any such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 6 hereof;
and

       

      (iii)
providing such information to such Broker-Dealer as may be required in order for
such Broker-Dealer to comply with the requirements of such Rules.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          15

        

      

      5.  Registration
Expenses.  The Company shall bear all expenses incurred in
connection with the performance of their obligations under Sections 1, 2, 3
and 4 and, in the case of a Shelf Registration Statement, the Company shall
reimburse the Holders for the reasonable fees and disbursements of one firm of
attorneys (in addition to any local counsel) chosen by the Holders of a majority
in aggregate principal amount of the Securities and the Exchange Securities to
be sold pursuant to each Registration Statement acting for the Holders and the
Initial Purchasers in connection therewith and, in the case of any Exchange
Offer Registration Statement, will reimburse the Initial Purchasers for the
reasonable fees and disbursements of counsel acting in connection
therewith.

       

      6.  Indemnification.  vi)In
the event of a Shelf Registration Statement or in connection with any prospectus
delivery pursuant to an Exchange Offer Registration Statement by an Exchanging
Dealer, the Company shall indemnify and hold harmless each Holder (including,
without limitation, each Initial Purchaser and any such Exchanging Dealer),
their affiliates, their respective officers, directors, employees,
representatives and agents, and each person, if any, who controls such Holder
within the meaning of the Securities Act or the Exchange Act (collectively
referred to for purposes of this Section 6 and Section 7 as a Holder),
from and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof (including, without limitation, any loss, claim,
damage, liability or action relating to purchases and sales of Securities or
Exchange Securities), to which that Holder may become subject, whether commenced
or threatened, under the Securities Act, the Exchange Act, any other federal or
state statutory law or regulation, at common law or otherwise, insofar as such
loss, claim, damage, liability or action arises out of, or is based upon,
(i) any untrue statement or alleged untrue statement of a material fact
contained in any such Registration Statement or any prospectus forming part
thereof or in any amendment or supplement thereto or any “issuer free writing
prospectus” within the meaning of the Securities Act approved by the Company or
(ii) the omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, and shall reimburse each indemnified party promptly upon demand for
any legal or other expenses reasonably incurred by that indemnified party in
connection with investigating or defending or preparing to defend against or
appearing as a third party witness in connection with any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage, liability or action arises out of, or is based upon, an untrue
statement or alleged untrue statement in or omission or alleged omission from
any of such documents in reliance upon and in conformity with any Holders’
Information.

       

      (b)  In
the event of a Shelf Registration Statement, each Holder severally and not
jointly shall indemnify and hold harmless the Company, its affiliates, its
respective officers, directors, employees, representatives and agents, and each
person, if any, who controls the Company, within the meaning of the Securities
Act or the Exchange Act (collectively referred to for purposes of this Section
6(b) and Section 7 as the Company), from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof, to which the
Company may become subject, whether commenced or threatened, under the
Securities Act, the Exchange Act, any other federal 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          16

        

         

        or
state statutory law or regulation, at common law or otherwise, insofar as such
loss, claim, damage, liability or action arises out of, or is based upon, (i)
any untrue statement or alleged untrue statement of a material fact contained in
any such Registration Statement or any prospectus forming a part thereof or in
any amendment or supplement thereto or any “issuer free writing prospectus”
within the meaning of the Securities Act or (ii) the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, but in each case only
to the extent that the untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with any
Holders’ Information furnished to the Company by such Holder, and shall
reimburse the Company for any legal or other expenses reasonably incurred by the
Company, in connection with investigating or defending or preparing to defend
against or appearing as a third party witness in connection with any such loss,
claim, damage, liability or action as such expenses are incurred; provided, however, that no such
Holder shall be liable for any indemnity claims hereunder in excess of the
amount of net proceeds received by such Holder from the sale of Securities or
Exchange Securities pursuant to such Shelf Registration
Statement.

      

       

      (c)  Promptly
after receipt by an indemnified party under this Section 6 of notice of any
claim or the commencement of any action, the indemnified party shall, if a claim
in respect thereof is to be made against the indemnifying party pursuant to
Section 6(a) or 6(b), notify the indemnifying party in writing of the claim or
the commencement of that action; provided, however, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have under this Section 6 except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses)
by such failure; and provided further, however, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section
6.  If any such claim or action shall be brought against an
indemnified party, and it shall notify the indemnifying party thereof, the
indemnifying party shall be entitled to participate therein and, to the extent
that it wishes, jointly with any other similarly notified indemnifying party, to
assume the defense thereof with counsel reasonably satisfactory to the
indemnified party.  After notice from the indemnifying party to the
indemnified party of its election to assume the defense of such claim or action,
the indemnifying party shall not be liable to the indemnified party under this
Section 6 for any legal or other expenses subsequently incurred by the
indemnified party in connection with the defense thereof other than the
reasonable costs of investigation; provided, however, that an
indemnified party shall have the right to employ its own counsel in any such
action, but the fees, expenses and other charges of such counsel for the
indemnified party will be at the expense of such indemnified party unless (1)
the employment of counsel by the indemnified party has been authorized in
writing by the indemnifying party, (2) the indemnified party has reasonably
concluded that there may be legal defenses available to it or other indemnified
parties that are different from or in addition to those available to the
indemnifying party, (3) a conflict or potential conflict exists (based upon
advice of counsel to the indemnified party) between the indemnified party and
the indemnifying party (in which case the indemnifying party will not have the
right to direct the defense of such action on behalf 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          17
of
the indemnified party) or (4) the indemnifying party has not in fact employed
counsel reasonably satisfactory to the indemnified party to assume the defense
of such action within a reasonable time after receiving notice of the
commencement of the action, in each of which cases the reasonable fees,
disbursements and other charges of counsel will be at the expense of the
indemnifying party or parties. It is understood that the indemnifying party or
parties shall not, in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the reasonable fees, disbursements and
other charges of more than one separate firm of attorneys (in addition to any
local counsel) at any one time for all such indemnified party or parties. Each
indemnified party, as a condition of the indemnity agreements contained in
Sections 6(a) and 6(b), shall use all reasonable efforts to cooperate with the
indemnifying party in the defense of any such action or claim. No indemnifying
party shall be liable for any settlement of any such action effected without its
written consent (which consent shall not be unreasonably withheld), but if
settled with its written consent or if there be a final judgment for the
plaintiff in any such action, the indemnifying party agrees to indemnify and
hold harmless any indemnified party from and against any loss or liability by
reason of such settlement or judgment. No indemnifying party shall, without the
prior written consent of the indemnified party (which consent shall not be
unreasonably withheld), effect any settlement of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement includes an unconditional release of such indemnified
party from all liability or claims that were raised or could have been raised by
such plaintiff in such proceeding.

      

       

      7.  Contribution.  If
the indemnification provided for in Section 6 is unavailable or insufficient to
hold harmless an indemnified party under Section 6(a) or 6(b), then each
indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits
received by the indemnified party, on the one hand, and the indemnifying party,
on the other hand, from the Initial Placement and the Registration Statement
which resulted in such loss, claim, damage or liability, or action in respect
thereof, or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Company on the one hand and such Holder, on the other, with respect
to the statements or omissions that resulted in such loss, claim, damage or
liability, or action in respect thereof, as well as any other relevant equitable
considerations.  Benefits received by the Company shall be deemed to
be equal to the total net proceeds from the Initial Placement (before deducting
expenses) received by the Company, and benefits received by the Initial
Purchasers shall be deemed to be equal to the total purchase discounts and
commissions in each case set forth on the cover of the Final
Memorandum.  Benefits received by any other Holders shall be deemed to
be equal to the value of receiving Securities or Exchange Securities, as
applicable, registered under the Securities Act.  The relative fault
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to the Company or information supplied by the
Company on the 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          18
one
hand or to any Holder or information supplied by such Holder on the other, the
intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The parties
hereto agree that it would not be just and equitable if contributions pursuant
to this Section 7 were to be determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to herein. The amount paid or payable by an indemnified
party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section 7 shall be deemed to include, for
purposes of this Section 7, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending or
preparing to defend any such action or claim.  Notwithstanding the
provisions of this Section 7, an indemnifying party that is a Holder of
Securities or Exchange Securities shall not be required to contribute any amount
in excess of the amount by which (A) with respect to any Holder, the total price
at which the Securities or Exchange Securities sold by such indemnifying party
to any purchaser, (B) with respect to a Purchaser, the total consideration
received by such Purchaser pursuant to the Purchase Agreement, as the case may
be, exceeds the amount of any damages which such indemnifying party has
otherwise paid or become liable to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

      

       

      8.  Rules 144 and
144A.   So long as Transfer Restricted Securities remain
outstanding, the Company shall use its reasonable best efforts to file the
reports required to be filed by it under the Securities Act and the Exchange Act
in a timely manner and, if at any time the Company is not required to file such
reports, it will, upon the written request of any Holder of Transfer Restricted
Securities, make publicly available other information so long as necessary to
permit sales of such Holder’s securities pursuant to Rules 144 and
144A.  So long as Transfer Restricted Securities remain outstanding,
upon the written request of any Holder of Transfer Restricted Securities, the
Company shall deliver to such Holder a written statement as to whether it has
complied with such requirements. Notwithstanding the foregoing, nothing in this
Section 8 shall be deemed to require the Company to register any of its
securities pursuant to the Exchange Act.

       

      9.  Underwritten
Registrations.  If any of the Transfer Restricted Securities
covered by any Shelf Registration Statement are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers
that will administer the offering will be selected by the Holders of a majority
in aggregate principal amount of such Transfer Restricted Securities included in
such offering, subject to the consent of the Company (which shall not be
unreasonably withheld or delayed), and such Holders shall be responsible for all
underwriting commissions and discounts in connection therewith.

       

      No
person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Transfer Restricted Securities on the
basis reasonably provided in any underwriting arrangements approved by the
persons 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          19

        

         

        entitled
hereunder to approve such arrangements and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements.

      

       

      10.  Miscellaneous.  vii)Amendments and
Waivers.  The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of Holders of a majority in aggregate principal amount of the Securities
and the Exchange Securities; provided that, with
respect to any matter that directly or indirectly affects the rights of any
Initial Purchaser hereunder, the Company shall obtain the written consent of
each such Initial Purchaser against which such amendment, qualification,
supplement, waiver or consent is to be effective.  Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of Holders whose Securities
or Exchange Securities, as the case may be, are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of a majority in aggregate
principal amount of the Securities and the Exchange Securities being sold by
such Holders pursuant to such Registration Statement.

       

      (b)  Notices.  All
notices and other communications provided for or permitted hereunder shall be
made in writing by hand-delivery, first-class mail, telecopier or any courier
guaranteeing next-day delivery:

       

      (1)
if to a Holder, at the most current address given by such Holder to the Company
in accordance with the provisions of this Section 10(b), which address initially
is, with respect to each Holder, the address of such Holder maintained by the
Registrar under the Indenture;

       

      (2) if
to you, initially at the respective addresses set forth in the Purchase
Agreement; and

       

      (3)
if to the Company, initially at the address of the Company set forth in the
Purchase Agreement.

       

      All
such notices and communications shall be deemed to have been duly
given:  when delivered by hand, if personally delivered; when
delivered by e mail, if receipt is acknowledged in a reply e-mail by the
recipient; one business day after being delivered to a next-day air courier;
five business days after being deposited in the mail; and when receipt is
acknowledged by the recipient’s telecopier machine, if sent by
telecopier.

       

      (c)  Successors And
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including,
without the need for an express assignment or any consent by the Company
thereto, subsequent Holders of Securities and the Exchange
Securities.  The Company hereby agrees to extend the benefits of this
Agreement to any Holder of Securities and the Exchange 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          20

        

         

        Securities,
and any such Holder may specifically enforce the provisions of this Agreement as
if an original party hereto.

      

       

      (d)  Counterparts.  This
Agreement may be executed in any number of counterparts (which may be delivered
in original form or by telecopier) and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same
agreement.

       

      (e)  Definition of
Terms.  For purposes of this Agreement, (a) the term “business
day” means any day on which the New York Stock Exchange, Inc. is open for
trading, (b) the term “subsidiary” has the meaning set forth in Rule 405 under
the Securities Act, (c) except where otherwise expressly provided, the term
“affiliate” has the meaning set forth in Rule 405 under the Securities Act, (d)
the term “Broker-Dealer” shall mean any broker or dealer registered as such
under the Exchange Act, (e) the term “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the
Commission promulgated thereunder, (f) the term “Securities Act” shall mean the
Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder, (g) the term “Exchange Offer Registration
Period” shall mean the 210 day period following the consummation of the
Registered Exchange Offer, exclusive of any period during which any stop order
shall be in effect suspending the effectiveness of the Exchange Offer
Registration Statement, and (h) the term “Shelf Registration” shall mean a
registration effected pursuant to Section 2 hereof.

       

      (f)  Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

       

      (g)  Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York applicable to contracts made and to be performed within the
State of New York.

       

      (h)  No Inconsistent
Agreements.  The Company has not entered into, or shall not, on
or after the date of this Agreement, enter into any agreement that is
inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof.

       

      (i)  Severability.  The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law.  If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their reasonable best efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or
unenforceable.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          21

        

      

      (j)  Securities Held by the
Company, etc.  Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities or Exchange Securities is
required hereunder, Securities or Exchange Securities, as applicable, held by
the Company or its Affiliates shall be disregarded and deemed not to be
outstanding in determining whether such consent or approval was given by the
Holders of such required percentage.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          22

        

      

       

      Please
confirm that the foregoing correctly sets forth the agreement among the Company,
the Subsidiary Guarantors and the several Initial Purchasers.

       

      
        
          	 
      	
                  Very
      truly yours,

                
	 
      	 
      
	 
      	
                  RITE
      AID CORPORATION,

                
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By

                	 
      	
                  /s/
      Marc A. Strassler

                
	 
      	 
      	
                  Name:

                	
                  Marc
      A. Strassler

                
	 
      	 
      	
                  Title:

                	
                  Executive
      Vice

                
	 
      	 
      	 
      	
                  President,
      General 

                
	 
      	 
      	 
      	Counsel
      and Secretary

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          23

        

      

       

      
        
          	 
      	
                   

                
	 
      	 
      
	 
      	
                  Each
      of the Subsidiary

                  Guarantors listed on

                  Schedule I hereto,

                
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By

                	 
      	
                  /s/
      Marc A. Strassler

                
	 
      	 
      	
                  Name:

                	
                  Marc
      A. Strassler

                
	 
      	 
      	
                  Title:

                	
                  Authorized
      Person

                
	 
      	 
      	 
      	
                   

                
	 
      	 
      	 
      	 

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          24

        

      

       

      
        
          The
foregoing Agreement is hereby

          confirmed
and accepted as of the

          date
first above written.

          

          Citigroup
Global Markets Inc.

          Banc
of America Securities LLC

          Wachovia
Capital Markets, LLC

          

          By:  Citigroup
Global Markets Inc.

           

          by

          
            	 
      	 
      	
                    /s/
      David Leland

                  	 
      	 
      
	 
      	
                    Name:

                  	
                    David
      Leland

                  	 
      	 
      
	 
      	
                    Title:

                  	
                    Vice
      President

                  	 
      	 
      

          

          

          

          

          By:  Banc
of America Securities LLC

           

          by

          
            	 
      	 
      	
                    /s/
      Aaron Peyton

                  	 
      	 
      
	 
      	
                    Name:

                  	
                    Aaron
      Peyton

                  	 
      	 
      
	 
      	
                    Title:

                  	
                    Principal

                  	 
      	 
      

          

          

          

          

          By:  Wachovia
Capital Markets, LLC

           

          by

          
            	 
      	 
      	
                    /s/
      Scott Yarbrough

                  	 
      	 
      
	 
      	
                    Name:

                  	
                    Scott
      Yarbrough

                  	 
      	 
      
	 
      	
                    Title:

                  	
                    Director

                  	 
      	 
      

          

          

          For
themselves and the other several

          Initial
Purchasers named in Schedule I

          to
the Purchase Agreement.

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
ANNEX A

       

      Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Registered Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities.  The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within the
meaning of the Securities Act.  This prospectus, as it may be amended
or supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Securities where
such Securities were acquired by such broker-dealer as a result of market-making
activities or other trading activities.  The Company has agreed that,
starting on the Expiration Date (as defined herein) and ending on the close of
business 210 days after the Expiration Date, it will make this prospectus
available to any broker-dealer for use in connection with any such
resale.  See “Plan of Distribution.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ANNEX B

       

      Each
broker-dealer that receives Exchange Securities for its own account in exchange
for Securities, where such Securities were acquired by such broker-dealer as a
result of market-making activities or other trading activities, must acknowledge
that it will deliver a prospectus in connection with any resale of such Exchange
Securities.  See “Plan of Distribution.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ANNEX
C

       

      PLAN
OF DISTRIBUTION

       

      Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Registered Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities.  This
prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities.  The Company has
agreed that, starting on the Expiration Date (as defined herein) and ending on
the close of business 210 days after the Expiration Date, it will make this
prospectus, as amended or supplemented, available to any broker-dealer for use
in connection with any such resale.  In addition, until
_______________, 200__, all dealers effecting transactions in the Exchange
Securities may be required to deliver a prospectus.

       

      The
Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers.  Exchange Securities received by broker-dealers for
their own account pursuant to the Registered Exchange Offer may be sold from
time to time in one or more transactions in the over-the-counter market, in
negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices
prevailing at the time of resale, at prices related to such prevailing market
prices or at negotiated prices.  Any such resale may be made directly
to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such broker-dealer or the
purchasers of any such Exchange Securities.  Any broker-dealer that
resells Exchange Securities that were received by it for its own account
pursuant to the Registered Exchange Offer and any broker or dealer that
participates in a distribution of such Exchange Securities may be deemed to be
an “underwriter” within the meaning of the Securities Act and any profit on any
such resale of Exchange Securities and any commission or concessions received by
any such persons may be deemed to be underwriting compensation under the
Securities Act. The Letter of Transmittal states that, by acknowledging that it
will deliver and by delivering a prospectus, a broker-dealer will not be deemed
to admit that it is an “underwriter” within the meaning of the Securities
Act.

       

      For
a period of 210 days after the Expiration Date the Company will promptly send
additional copies of this prospectus and any amendment or supplement to this
prospectus to any broker-dealer that requests such documents in the Letter of
Transmittal.  The Company has agreed to pay all expenses incident to
the Registered Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any
broker-dealers and will indemnify the Holders of the Securities (including any
broker-dealers) against certain liabilities, including liabilities under the
Securities Act.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ANNEX D

       

      
        
          	
                  o

                	
                  CHECK
      HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES
      OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS
      THERETO.

                
	 	 
	 	 
	 	
                  Name:

                  Address:

                

        

      

      

      

      
      

      If
the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities.  If the undersigned is a broker-dealer that will receive
Exchange Securities for its own account in exchange for Securities that were
acquired as a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
“underwriter” within the meaning of the Securities Act.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHEDULE 1

       

      Subsidiary
Guarantors

       

      Corporations

      

      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.

      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

      Patton
Drive and Navy Boulevard Property Corporation

      PDS-1
Michigan, Inc.

      Perry
Distributors, Inc.

      Perry
Drug Stores, 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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

       

      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

      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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          3

        

      

       

      PJC
of Vermont, Inc.

      Rite
Aid Payroll Management Inc.

      Rite
Aid Online Store Inc.

      

      Limited Liability
Companies

      

      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

      PJC
Dorchester Realty LLC

      PJC
East Lyme 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
Peterborough Realty LLC

      PJC
Providence Realty LLC

      PJC
Realty N.E. LLC

      PJC
Revere Realty LLC

      

      Limited
Partnerships

      

      Maxi
Drug South, L.P.ex10-2.htm

    Exhibit
10.2

     

    EXECUTION
COPY

    
 

    SENIOR
LIEN INTERCREDITOR AGREEMENT

     

    Dated
as of

     

    June
12, 2009

     

    Among

     

    RITE
AID CORPORATION,

     

    THE
SUBSIDIARY GUARANTORS,

     

    CITICORP
NORTH AMERICA, INC.,

    as
Senior Collateral Agent,

     

    CITICORP
NORTH AMERICA, INC.,

    as
Authorized Representative under the Senior Credit Agreement,

     

    THE
BANK OF NEW YORK MELLON TRUST COMPANY

    as
Authorized Representative under the Initial Additional Senior Debt
Facility,

     

    and

     

    each
additional Authorized Representative from time to time party hereto

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    SENIOR
LIEN INTERCREDITOR AGREEMENT (as amended or supplemented from time to time, this
“Agreement”)
dated as of June 12, 2009, among RITE AID CORPORATION, a Delaware corporation
(“Rite
Aid”), each Subsidiary of Rite Aid listed on the signature pages hereto
or which becomes a party hereto pursuant to Section 24 of the Senior
Subsidiary Security Agreement (each such Subsidiary, individually a “Subsidiary
Guarantor”, and collectively, the “Subsidiary Guarantors”), CITICORP NORTH
AMERICA, INC., as senior collateral agent for the Senior Secured Parties (as
defined below) (in such capacity, as further defined herein, the “Senior Collateral
Agent”), CITICORP NORTH AMERICA, INC., as Senior Representative for the
Senior Loan Secured Parties (in such capacity and together with its successors
in such capacity, the “Administrative
Agent”), The Bank of New York Mellon Trust Company, N.A., as Senior
Representative for the Initial Additional Senior Debt Parties (in such capacity
and together with its successors in such capacity, the “Initial
Additional Senior Representative”), and each additional Senior
Representative from time to time party hereto for the Additional Senior Debt
Parties of the Series with respect to which it is acting in such
capacity.

     

    In
consideration of the mutual agreements herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Senior Collateral Agent, the Administrative Agent (for itself
and on behalf of the Senior Loan Secured Parties), the Initial Additional Senior
Representative (for itself and on behalf of the Initial Additional Senior Debt
Parties) and each additional Senior Representative (for itself and on behalf of
the Additional Senior Debt Parties of the applicable Series) agree as
follows:

     

    ARTICLE
I

     

    Definitions

     

    SECTION
1.01  Construction;
Certain Defined Terms.

     

    (a)  The
definitions of terms herein shall apply equally to the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”. The word “will” shall be construed to have the same
meaning and effect as the word “shall”. Unless the context requires otherwise,
(i) any definition of or reference to any agreement, instrument, other document,
statute or regulation herein shall be construed as referring to such agreement,
instrument, other document, statute or regulation as from time to time amended,
supplemented or otherwise modified, (ii) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, but shall
not be deemed to include the subsidiaries of such Person unless express
reference is made to such subsidiaries, (iii) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof,
(iv) all references herein to Articles, Sections and Annexes shall be
construed to refer to Articles, Sections and Annexes of this Agreement and
(v) unless otherwise expressly qualified herein, the words “asset”
and

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

     

    (b)  It
is the intention of the Senior Secured Parties of each Series that the holders
of Senior Obligations of such Series (and not the Senior Secured Parties of any
other Series) bear the risk of (i) any determination by a court of
competent jurisdiction that (x) any of the Senior Obligations of such
Series are unenforceable under applicable law or are subordinated to any other
obligations (other than another Series of Senior Obligations), (y) any of the
Senior Obligations of such Series do not have an enforceable security interest
in any of the Senior Collateral securing any other Series of Senior Obligations
and/or (z) any intervening security interest exists securing any other
obligations (other than another Series of Senior Obligations) on a basis ranking
prior to the security interest of such Series of Senior Obligations but junior
to the security interest of any other Series of Senior Obligations or
(ii) the existence of any Senior Collateral for any other Series of Senior
Obligations that is not Shared Collateral (any such condition referred to in the
foregoing clauses (i) or (ii) with respect to any Series of Senior
Obligations, an “Impairment”
of such Series).  In the event of any Impairment with respect to any
Series of Senior Obligations, the results of such Impairment shall be borne
solely by the holders of such Series of Senior Obligations, and the rights of
the holders of such Series of Senior Obligations (including, without limitation,
the right to receive distributions in respect of such Series of Senior
Obligations pursuant to Section 2.01) set forth herein shall be modified to
the extent necessary so that the effects of such Impairment are borne solely by
the holders of the Series of such Senior Obligations subject to such
Impairment.  Additionally, in the event the Senior Obligations of any
Series are modified pursuant to applicable law (including, without limitation,
pursuant to Section 1129 of the Bankruptcy Code), any reference to such
Senior Obligations or the Senior Debt Documents governing such Senior
Obligations shall refer to such obligations or such documents as so
modified.

     

    (c)  Capitalized
terms used but not otherwised defined herein shall have the meanings set forth
in the Senior Credit Agreement, including the Definitions Annex thereto. As used
in this Agreement, the following terms have the meanings specified
below:

     

    “2009 Restatement
Effective Date” means the date on which the amendment and restatement of
the Original Credit Agreement pursuant to the 2009 Amendment and Restatement
Agreement becomes effective pursuant to its terms.

     

    “Additional Senior
Debt” means any Indebtedness of Rite Aid (other than Indebtedness
constituting Senior Loan Obligations) Guaranteed by the Subsidiary Guarantors
pursuant to the Senior Subsidiary Guarantee Agreement (and not Guaranteed by any
other Subsidiary) with such Guarantees secured by the Senior Collateral on a
pari passu basis (but
without regard to control of remedies) with the Senior Loan Obligations (and not
secured by Liens on any other assets of Rite Aid or any Subsidiary); provided, however, that (i)
such Indebtedness is permitted to be incurred, secured and Guaranteed on such
basis by each Senior Debt Document and Second Priority Debt Document
and

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (ii)
the Representative for the holders of such Indebtedness shall have become party
to (A) the Collateral Trust and Intercreditor Agreement pursuant to, and by
satisfying the conditions set forth in, Section 8.12 thereof and (B) this
Agreement as the Initial Additional Senior Representative or pursuant to, and by
satisfying the conditions set forth in, Section 5.02(c)
hereof.  Additional Senior Debt shall include any Registered
Equivalent Notes and Guarantees thereof by the Subsidiary Guarantors pursuant to
the Senior Subsidiary Guarantee Agreement issued in exchange
thereof.

     

    “Additional Senior
Debt Documents” means, with respect to any series, issue or class of
Additional Senior Debt, the promissory notes, indentures (which shall include
the Initial Additional Senior Debt Facility if such series of Additional Senior
Debt is the first series of Additional Senior Debt), Collateral Documents or
other operative agreements evidencing or governing such Indebtedness, including
the Senior Collateral Documents.

     

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

     

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

     

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

     

    “Administrative
Agent” shall have the meaning assigned to such term in the introductory
paragraph of this Agreement.

     

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

     

    “Agreement”
shall have the meaning assigned to such term in the introductory paragraph of
this Agreement.

     

    “Applicable
Authorized Representative” means, with respect to any
Shared Collateral, (i) until the Senior Loan Obligation Payment Date, the
Administrative

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Agent
and (ii) from and after the Senior Loan Obligation Payment Date, the Major
Additional Senior Representative.

     

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

     

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

     

    “Authorized
Representative” means (i) in the case of any Senior Loan Obligations
or the Senior Loan Secured Parties, the Administrative Agent, (ii) in the
case of the Initial Additional Senior Debt Obligations or the Initial Additional
Senior Debt Parties, the Initial Additional Senior Representative and
(iii) in the case of any Series of Additional Senior Debt Obligations or
Additional Senior Debt Parties that become subject to this Agreement after the
date hereof, the Senior Representative named for such Series in the applicable
Joinder Agreement.

     

    “Bankruptcy
Code” shall mean Title 11 of the United States Code, as
amended.

     

    “Bankruptcy
Law” shall mean the Bankruptcy Code and any similar Federal, state or
foreign law for the relief of debtors.

     

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

     

    “Borrower”
means Rite Aid.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “Business
Day” means any day other than a Saturday, Sunday or day on which
commercial banks in New York City or Chicago, Illinois are authorized or
required by law to close.

     

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

     

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

     

    “Casualty/Condemnation
Proceeds” means

     

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

     

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

     

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

     

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

     

    “Citibank”
means Citibank, N.A.

     

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

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “CNAI”
means Citicorp North America, Inc.

     

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

     

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

     

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

     

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

     

    “Controlling
Secured Parties” means, with respect to any Shared Collateral, the Series
of Senior Secured Parties whose Senior Representative is the Applicable
Authorized Representative for such Shared Collateral.

     

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

     

    “DIP
Financing” shall have the meaning assigned to such term in
Section 2.05(b).

     

    “DIP Financing
Liens” shall have the meaning assigned to such term in
Section 2.05(b).

     

    “DIP
Lenders” shall have the meaning assigned to such term in
Section 2.05(b).

     

    “Effective
Date” means June 27, 2001.

     

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

     

    “Event of
Default” means an “Event of Default” as defined in the Senior Credit
Agreement or any Additional Senior Debt Facility and, at any time when the
Collateral Trust and Intercreditor Agreement remains in effect, shall also
include any “Event of Default” as defined in any Second Priority Debt
Facility.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

    “Governmental
Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and
any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

     

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

     

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

     

    “Impairment”
shall have the meaning assigned to such term in
Section 1.01(b).

     

    “Indebtedness”
of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind,
(b) all obligations of such Person evidenced by bonds, debentures, notes or
similar instruments, (c) all obligations of such Person under conditional
sale or other title retention agreements relating to property acquired by such
Person, (d) all obligations of such Person in respect of the deferred
purchase price of property or services (excluding current accounts payable
incurred in the ordinary course of business), (e) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (f) all Guarantees by such Person of Indebtedness of others,
(g) all Capital Lease Obligations of such Person, (h) all obligations,
contingent or otherwise, of such Person as an account

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    party
in respect of letters of credit and letters of guaranty and (i) all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances.  The Indebtedness of any Person shall include the
Indebtedness of any other entity (including any partnership in which such Person
is a general partner) to the extent such Person is liable therefor as a result
of such Person’s ownership interest in or other relationship with such entity,
except to the extent the terms of such Indebtedness provide that such Person is
not liable therefor.

     

    “Initial
Additional Senior Debt Facility” means that certain Indenture dated as of
June 12, 2009, among Rite Aid, the Subsidiary Guarantors identified therein and
The Bank of New York Mellon Trust Company, N.A., as trustee.

     

    “Initial
Additional Senior Debt Obligations” means the Additional Senior Debt
Obligations pursuant to the Initial Additional Senior Debt
Facility.

     

    “Initial
Additional Senior Debt Parties” means the holders of any Initial
Additional Senior Debt Obligations and the Initial Additional Senior
Representative.

     

    “Initial
Additional Senior Representative” shall have the meaning assigned to such
term in the introductory paragraph to this Agreement.

     

    “Insolvency or
Liquidation Proceeding” means:

     

    (a)  any
case commenced by or against Rite Aid or any Subsidiary Guarantor under any
Bankruptcy Law, any other proceeding for the reorganization, recapitalization or
adjustment or marshalling of the assets or liabilities of Rite Aid or any
Subsidiary Guarantor, any receivership or assignment for the benefit of
creditors relating to Rite Aid or any Subsidiary Guarantor or any similar case
or proceeding relative to Rite Aid or any Subsidiary Guarantor or its creditors,
as such, in each case whether or not voluntary; or

     

    (b)  any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to Rite Aid or any Subsidiary Guarantor, in each case whether
or not voluntary and whether or not involving bankruptcy or insolvency, except
for any liquidation or dissolution permitted under the Senior Debt
Documents.

     

    “Intervening
Creditor” shall have the meaning assigned to such term in
Section 2.01(a).

     

    “Joinder
Agreement” means the documents required to be delivered by a Senior
Representative to the Senior Collateral Agent pursuant to Section 5.13 in
order to establish an additional Series of Senior Obligations and Senior Secured
Parties hereunder.

     

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

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    securities,
any purchase option, call or similar right of a third party with respect to such
securities.

     

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

     

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

     

    “Net Cash
Proceeds” means:

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “Non-Controlling
Authorized Representative” means, at any time with respect to any Shared
Collateral, any Authorized Representative that is not the Applicable Authorized
Representative at such time with respect to such Shared Collateral.

     

    “Non-Controlling
Secured Parties” means, with respect to any Shared Collateral, the Senior
Secured Parties that are not Controlling Secured Parties with respect to such
Shared Collateral.

     

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

     

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

     

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

     

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

     

    “Possessory
Collateral” means any Shared Collateral in the possession of the Senior
Collateral Agent (or its agents or bailees), to the extent that possession
thereof

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    perfects
a Lien thereon under the Uniform Commercial Code of any jurisdiction. Possessory
Collateral includes any Certificated Securities, Promissory Notes, Instruments,
and Chattel Paper, in each case, delivered to or in the possession of the Senior
Collateral Agent under the terms of the Senior Collateral Documents. All
capitalized terms used in this definition and not defined elsewhere in this
Agreement have the meanings assigned to them in the UCC.

     

    “Proceeds”
shall have the meaning assigned to such term in Section 2.01.

     

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

     

    “Reduction
Event” means any
Asset Sale or Casualty/Condemnation.

     

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

     

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

     

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

     

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

     

    “Rite Aid”
shall have the meaning assigned to such term in the introductory paragraph of
this Agreement.

     

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

     

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

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

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

     

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

     

    “Second Priority
Debt” means any Indebtedness (including the 2017 7.5% Notes and the 2016
10.375% Notes) incurred by Rite Aid and Guaranteed by the Subsidiary Guarantors
on or after the Effective Date pursuant to the Second Priority Subsidiary
Guarantee Agreement (i) which is secured by the Second Priority Collateral
on a pari passu basis
(but without regard to control of remedies) (other than as provided by the terms
of the applicable Second Priority Debt Documents) with the other Second Priority
Debt Obligations and (ii) if issued on or after the 2009 Restatement
Effective Date, matures after the date that is 90 days after the Latest Maturity
Date in effect on the date of issuance of such Indebtedness; provided, however, that
(A) such Indebtedness is permitted to be incurred, secured and Guaranteed
on such basis by each Senior Debt Document and each Second Priority Debt
Document and (B) the Representative for the holders of such Second Priority
Debt shall have become party to the Collateral Trust and Intercreditor Agreement
pursuant to, and by satisfying the conditions set forth in, Section 8.12
thereof.  Second Priority Debt shall include any Registered Equivalent
Notes issued in exchange thereof.

     

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

     

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

     

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

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Senior Class
Debt” shall have
the meaning assigned to such term in Section 5.13.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “Senior Class Debt
Parties” shall
have the meaning assigned to such term in Section 5.13.

     

    “Senior Class Debt
Representative”
shall have the meaning assigned to such term in Section 5.13.

     

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

     

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

     

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

     

    “Senior Credit
Agreement” means the Amended and Restated Senior Credit Agreement, dated
as of June 27, 2001, as amended and restated as of July 9, 2008, as further
amended and restated as of June 5, 2009, and as may be further amended, restated
or otherwise modified from time to time, among Rite Aid, the Senior Lenders, the
Tranche 2 Lenders, Citicorp North America, Inc., as administrative agent and as
Senior Collateral Agent and Bank of America, N.A., as syndication agent for the
Senior Lenders and the Tranche 2 Lenders, and the other parties
thereto.

     

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

     

    “Senior
Facilities” means the Senior Credit Agreement and any Additional Senior
Debt Facilities.

     

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

     

    “Senior Indemnity,
Subrogation and Contribution Agreement” means the Amended and Restated
Senior Indemnity, Subrogation and Contribution Agreement,

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    dated
as of June 27, 2001, as amended and restated as of May 28, 2003, among Rite
Aid, the Subsidiary Guarantors (including Subsidiary Guarantors becoming party
thereto after the Original Restatement Effective Date) and the Senior Collateral
Agent.

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

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

     

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

     

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

     

    “Senior Subsidiary
Guarantee Agreement” means the Amended and Restated Senior Subsidiary
Guarantee Agreement dated as of June 5, 2009, made by the Subsidiary Guarantors
(including Subsidiary Guarantors that become parties thereto after the Original
Restatement Effective Date) in favor of the Senior Collateral Agent for the
benefit of the Senior Secured Parties, as such agreement may be amended,
supplemented or otherwise modified from time to time.

     

    “Senior Subsidiary
Security Agreement” means the Amended and Restated Senior Subsidiary
Security Agreement dated as of June 5, 2009, made by the Subsidiary Guarantors
(including Subsidiary Guarantors that become parties thereto after the Original
Restatement Effective Date) in favor of the Senior Collateral Agent for the
benefit of the Senior Secured Parties, as such agreement may be amended,
supplemented or otherwise modified from time to time.

     

    “Series”
means (a) with respect to the Senior Secured Parties, each of (i) the
Senior Loan Secured Parties (in their capacities as such), (ii) the Initial
Additional Senior Debt Parties (in their capacities as such) and (iii) the
Additional Senior Debt Parties that become subject to this Agreement after the
date hereof that are represented by a common Authorized Representative (in its
capacity as such for such Additional Senior Debt Parties) and (b) with
respect to any Senior Obligations, each of (i) the Senior Loan Obligations,
(ii) the Initial Additional Senior Debt Obligations and (iii) the
Additional Senior Debt Obligations incurred pursuant to any Additional Senior
Debt Facility, which pursuant to any Joinder Agreement, are to be represented
hereunder by a common Authorized Representative (in its capacity as such for
such Additional Senior Debt Obligations).

     

    “Shared
Collateral” means, at any time, Senior Collateral in which the holders of
two or more Series of Senior Obligations (or their respective Authorized
Representatives) hold a valid and perfected security interest at such
time.  If more than two Series of Senior Obligations are outstanding
at any time and the holders of fewer

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    than
all Series of Senior Obligations hold a valid and perfected security interest in
any Senior Collateral at such time, then such Senior Collateral shall constitute
Shared Collateral for those Series of Senior Obligations the holders of which
hold a valid and perfected security interest in such Senior Collateral at such
time and shall not constitute Shared Collateral for any Series of Senior
Obligations the holders of which do not have a valid and perfected security
interest in such Senior Collateral at such time.  Notwithstanding the
foregoing, all cash and cash equivalents that secure the Senior Loan
Obligations, or are otherwise held by the Senior Lenders, the Administrative
Agent or the Senior Collateral Agent, pursuant to Section 2.05(j) of the Senior
Credit Agreement shall be deemed not to constitute Shared Collateral until
applied pursuant to Section 2.05(j) of the Senior Credit Agreement to satisfy
any Senior Obligations other than Senior Obligations in respect of LC
Disbursements or other LC Exposure.

     

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

     

    “Subsidiary”
means any subsidiary of the Borrower.

     

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

     

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

     

    “Triggering
Event” means (x)
the occurrence of any Event of Default and, as a result thereof, (A) the
acceleration (including any automatic acceleration in connection with any
Bankruptcy Proceeding) of the principal amount of any Senior Obligations or
Second Priority Debt Obligations under the terms of any Senior Debt Document or
any Second Priority Debt Document or (B) the commencement of the exercise of
remedies in respect of Collateral (it being understood that the exercise by the
Senior Collateral Agent of their cash sweep rights pursuant to Section 9.15
of the Senior Credit Agreement shall not be deemed an exercise of remedies in
respect of Collateral) and (y) in either case, (i) receipt by the Senior
Collateral Agent and the Second Priority Collateral Trustee of written notice
thereof from any Senior Representative (in the case of any such Event of Default
arising under any Senior Debt Document), or (ii) receipt by the Senior
Collateral Agent and the Second Priority Collateral Trustee of written notice
thereof from any Second Priority Representative (in the case of any such Event
of Default arising under any Second Priority Debt Document).

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

    ARTICLE
II

     

    Priorities
and Agreements with Respect to Shared Collateral

     

    SECTION
2.01   Priority of
Claims.

     

    (a)  Anything
contained herein or in any of the Senior Debt Documents to the contrary
notwithstanding (but subject to Sections 1.01(b) and 2.01(d) and (e)), if
an Event of Default has occurred and is continuing, and the Senior Collateral
Agent or any Senior Secured Party is taking action to enforce rights in respect
of any Shared Collateral, or any distribution is made in respect of any Shared
Collateral in any Bankruptcy Proceeding of any Subsidiary Guarantor or any
Senior Secured Party receives any payment pursuant to any intercreditor
agreement (other than this Agreement) with respect to any Shared Collateral, the
proceeds of any sale, collection or other liquidation of any such Senior
Collateral by any Senior Secured Party or received by the Senior Collateral
Agent or any Senior Secured Party pursuant to any such intercreditor agreement
with respect to such Shared Collateral and proceeds of any such distribution
(subject, in the case of any such distribution, to the sentence immediately
following) to which the Senior Obligations are entitled under any intercreditor
agreement (other than this Agreement) (all proceeds of any sale, collection or
other liquidation of any Senior Collateral and all proceeds of any such
distribution being collectively referred to as “Proceeds”),
shall be applied (i) at any time when the Collateral Trust and Intercreditor
Agreement remains in effect, as provided in Section 4.01 of the Collateral Trust
and Intercreditor Agreement, and (ii) at any other time, (A) FIRST, to the
fees and expenses of, and reimbursements and indemnification owed to, the Senior
Collateral Agent pursuant to the Senior Subsidiary Security Agreement and the
Senior Credit Agreement that are unpaid as of the applicable date of receipt of
such proceeds, and to any Senior Secured Party which has theretofore advanced or
paid any such fees and expenses of, and reimbursements and indemnification owed
to, the Senior Collateral Agent in an amount equal to the amount thereof so
advanced or paid by such Senior Secured Party pro rata based on the amount of
such fees, expenses, reimbursements and indemnifications (or such advances or
payment), (B) SECOND, to reimburse any amounts owing to the Senior Collateral
Agent pursuant to Section 8.03 of the Senior Subsidiary Security Agreement, (C)
THIRD, subject to Sections 1.01(b) and 2.01(d) and (e), to the payment of
the Senior Obligations then due and owing, pro rata based on the amount of
Senior Obligations then due and owing (after giving effect to any payments
previously made under this Section), until the Senior Obligation Payment Date,
and (D) FOURTH, to Rite Aid and the Subsidiary Guarantors or their successors or
assigns, as their interests may appear, or to whosoever may be lawfully entitled
to receive the same or as a court of competent jurisdiction may direct.
Notwithstanding the foregoing, with respect to any Shared Collateral for which a
third party (other than a Senior Secured Party) has a lien or security interest
that is junior in priority to the security interest of any Series of Senior
Obligations but senior (as determined by appropriate legal proceedings in the
case of any dispute) to the security

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    interest
of any other Series of Senior Obligations (such third party an “Intervening
Creditor”), the value of any Shared Collateral or Proceeds which are
allocated to such Intervening Creditor shall be deducted on a ratable basis
solely from the Shared Collateral or Proceeds to be distributed in respect of
the Series of Senior Obligations with respect to which such third party lien or
security interest exists.

     

    (b)  It
is acknowledged that the Senior Obligations of any Series may, subject to the
limitations set forth in the then extant Senior Debt Documents and the Second
Priority Debt Documents, be increased, extended, renewed, replaced, restated,
supplemented, restructured, repaid, refunded, Refinanced or otherwise amended or
modified from time to time, all without affecting the priorities set forth in
Section 2.01(a) or the provisions of this Agreement defining the relative
rights of the Senior Secured Parties of any Series.

     

    (c)  Notwithstanding
the date, time, method, manner or order of grant, attachment or perfection of
any Liens securing any Series of Senior Obligations granted on the Shared
Collateral and notwithstanding any provision of the Uniform Commercial Code of
any jurisdiction, or any other applicable law or the Senior Debt Documents or
any defect or deficiencies in the Liens securing the Senior Obligations of any
Series or any other circumstance whatsoever (but, in each case, subject to
Sections 1.01(b) and 2.01(d) and (e)), each Senior Secured Party
hereby agrees that the Liens securing each Series of Senior Obligations on any
Shared Collateral shall be pari passu and of equal
priority and nothing contained in this Agreement shall affect the priority of
the Second Priority Liens set forth in the Collateral Trust and Intercreditor
Agreement or any other rights of or obligations owed to a Second Priority Debt
Party (in its capacity as such) contained in the Collateral Trust and
Intercreditor Agreement or otherwise.

     

    (d)  Notwithstanding
anything in this Agreement or the other Senior Collateral Documents to the
contrary, (i) any Shared Collateral consisting of cash or cash equivalents
that secure the Senior Loan Obligations or are otherwise held by the Senior
Lenders, the Administrative Agent or the Senior Collateral Agent pursuant to
Section 2.05(j) of the Senior Credit Agreement shall be applied as
specified in such Section of the Senior Credit Agreement and (ii) at all
times during a Cash Sweep Period prior to the occurrence of a Triggering Event,
the funds on deposit in the Citibank Concentration Account may be applied in
accordance with the provisions of the Senior Credit Agreement, as in effect on
the 2009 Restatement Effective Date.  After the occurrence of a
Triggering Event, funds on deposit in the Citibank Concentration Account
consisting of proceeds of Senior Collateral shall be applied in accordance with
the provisions of Section 2.01(a).

     

    (e)  In
the event that Rite Aid or any of its Subsidiaries shall at any time, or from
time to time (but in the case of any sale or disposition of Senior Collateral,
only prior to the occurrence of a Triggering Event), receive any Net Cash
Proceeds of any Reduction Event (other than Net Cash Proceeds required by the
Senior Credit Agreement to be applied to prepay Revolving Borrowings, Other
Revolving Borrowings or Swingline Loans (without permanent reductions of related
lending commitments) at any time when the Revolver Availability is less than the
amount specified in Section 2.11(c)

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    of
the Senior Credit Agreement or during a Cash Sweep Period), an amount equal to
such Net Cash Proceeds shall, in accordance with and to the extent required by
the provisions of the Senior Credit Agreement and, to the extent not
inconsistent with the provisions of the Senior Credit Agreement, the other
Senior Debt Documents, be applied to Reductions to the Senior Facilities
established under the Senior Credit Agreement and the other Senior Debt
Documents.  So long as no Triggering Event has occurred and is
continuing, Net Cash Proceeds of a Reduction Event in excess of those applied in
accordance with the foregoing provision of this paragraph shall be applied in
accordance with any applicable provisions of the Senior Debt Documents and
Second Priority Debt Documents.  In the event Rite Aid or any of its
Subsidiaries shall, at any time after the occurrence of a Triggering Event,
receive any Net Cash Proceeds of any Reduction Event which are attributable to
Senior Collateral, such Net Cash Proceeds shall be subject to and applied in
accordance with the provisions of Section 2.01(a).

     

    SECTION
2.02   Actions With
Respect to Shared Collateral; Prohibition on Contesting
Liens.

     

    (a)  With
respect to any Shared Collateral, (i) only the Senior Collateral Agent (and
the Administrative Agent, as set forth in Section 2.01(d)) shall act or refrain
from acting with respect to the Shared Collateral (including with respect to any
intercreditor agreement with respect to any Shared Collateral), and then (in the
case of the Senior Collateral Agent) only on the instructions of the Applicable
Authorized Representative, (ii) the Senior Collateral Agent shall not
follow any instructions with respect to such Shared Collateral (including with
respect to any intercreditor agreement with respect to any Shared Collateral)
from any Non-Controlling Authorized Representative (or any other Senior Secured
Party other than the Applicable Authorized Representative and the Controlling
Secured Parties) and (iii) no Non-Controlling Authorized Representative or
other Senior Secured Party (other than the Applicable Authorized Representative
and the Controlling Secured Parties) shall or shall instruct the Senior
Collateral Agent to, commence any judicial or nonjudicial foreclosure
proceedings with respect to, seek to have a trustee, receiver, liquidator or
similar official appointed for or over, attempt any action to take possession
of, exercise any right, remedy or power with respect to, or otherwise take any
action to enforce its security interest in or realize upon, or take any other
action available to it in respect of, any Shared Collateral (including with
respect to any intercreditor agreement with respect to any Shared Collateral),
whether under any Senior Collateral Document, applicable law or otherwise, it
being agreed that only the Senior Collateral Agent, acting on the instructions
of the Applicable Authorized Representative and in accordance with the
applicable Senior Collateral Documents, shall be entitled to take any such
actions or exercise any such remedies with respect to Shared Collateral.
Notwithstanding the equal priority of the Liens, the Senior Collateral Agent
(acting on the instructions of the Applicable Authorized Representative) may
deal with the Shared Collateral without regard to the equal priority Lien of the
Non-Controlling Secured Parties on such Senior Collateral. No Non-Controlling
Authorized Representative or Non-Controlling Secured Party will contest, protest
or object to any foreclosure proceeding or action brought by the Senior
Collateral Agent, Applicable Authorized Representative or Controlling Secured
Party or any other exercise by the Senior Collateral Agent, Applicable
Authorized Representative

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    or
Controlling Secured Party of any rights and remedies relating to the Shared
Collateral, or to cause the Senior Collateral Agent to do so. The foregoing
shall not be construed to limit the rights and priorities of any Senior Secured
Party, Senior Collateral Agent or Authorized Representative with respect to any
collateral not constituting Shared Collateral.

     

    (b)  Each
of the Authorized Representatives agrees that it will not accept any Lien on any
collateral for the benefit of any Series of Senior Obligations (other than funds
deposited for the discharge or defeasance of any Additional Senior Debt
Facility) other than pursuant to the Senior Collateral Documents and pursuant to
Section 2.05(j) of the Senior Credit Agreement or, after the Senior Loan
Obligation Payment Date, any equivalent provision of any other Senior Facility,
and by executing this Agreement (or a Joinder Agreement), each Authorized
Representative and the Series of Senior Secured Parties for which it is acting
hereunder agree to be bound by the provisions of this Agreement and the other
Senior Collateral Documents applicable to it.

     

    (c)  Each
of the Senior Secured Parties agrees that it will not (and hereby waives any
right to) question or contest or support any other Person in questioning or
contesting, in any proceeding (including any Insolvency or Liquidation
Proceeding), the perfection, priority, validity, attachment, or enforceability
of a Lien held by or on behalf of any of the Senior Secured Parties in all or
any part of the Senior Collateral, or the provisions of this Agreement; provided that nothing
in this Agreement shall be construed to prevent or impair the rights of any of
the Senior Collateral Agent or any Authorized Representative to enforce this
Agreement.

     

    SECTION
2.03  No Interference;
Payment Over.

     

    (a)  Each
Senior Secured Party agrees that (i) it will not challenge or question in
any proceeding the validity or enforceability of any Senior Obligations of any
Series or any Senior Collateral Document or the validity or enforceability of
the priorities, rights or duties established by or other provisions of this
Agreement; (ii) it will not take or cause to be taken any action the
purpose or intent of which is, or could be, to interfere, hinder or delay, in
any manner, whether by judicial proceedings or otherwise, any sale, transfer or
other disposition of the Shared Collateral by the Senior Collateral Agent,
(iii) except as provided in Section 2.02, it shall have no right to
(A) direct the Senior Collateral Agent or any other Senior Secured Party to
exercise any right, remedy or power with respect to any Shared Collateral
(including pursuant to any intercreditor agreement) or (B) consent to the
exercise by the Senior Collateral Agent or any other Senior Secured Party of any
right, remedy or power with respect to any Shared Collateral, (iv) it will
not institute any suit or assert in any suit, bankruptcy, insolvency or other
proceeding any claim against the Senior Collateral Agent or any other Senior
Secured Party seeking damages from or other relief by way of specific
performance, instructions or otherwise with respect to any Shared Collateral,
and none of the Senior Collateral Agent, any Applicable Authorized
Representative or any other Senior Secured Party shall be liable for any action
taken or omitted to be taken by the Senior Collateral Agent, such Applicable
Authorized Representative or other Senior Secured Party with respect to any
Shared Collateral in accordance with the provisions of this Agreement,
(v) it will not

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    seek,
and hereby waives any right, to have any Shared Collateral or any part thereof
marshaled upon any foreclosure or other disposition of such Senior Collateral
and (vi) it will not attempt, directly or indirectly, whether by judicial
proceedings or otherwise, to challenge the enforceability of any provision of
this Agreement; provided that nothing
in this Agreement shall be construed to prevent or impair the rights of any of
the Senior Collateral Agent or any other Senior Secured Party to enforce this
Agreement.

     

    (b)  Each
Senior Secured Party whose Senior Obligations arise under any Senior Facility
hereby agrees that if it shall obtain possession of any Shared Collateral or
shall realize any proceeds or payment in respect of any such Shared Collateral
pursuant to any Senior Collateral Document or by the exercise of any rights
available to it under applicable law or in any Insolvency or Liquidation
Proceeding or through any other exercise of remedies (including pursuant to any
intercreditor agreement) at any time prior to the Senior Obligation Payment Date
(determined, solely for this purpose, as if such Senior Facility did not exist),
then it shall hold such Shared Collateral, proceeds or payment in trust for the
other Senior Secured Parties and promptly transfer such Shared Collateral,
proceeds or payment, as the case may be, to the Senior Collateral Agent, to be
distributed in accordance with the provisions of Section 2.01.

     

    SECTION
2.04  Automatic Release
of Liens; Amendments to Senior Collateral Documents.

     

    (a)  If,
at any time the Senior Collateral Agent forecloses upon or otherwise exercises
remedies against any Shared Collateral resulting in a sale or disposition
thereof, then (whether or not any Insolvency or Liquidation Proceeding is
pending at the time) the Liens in favor of the Senior Collateral Agent for the
benefit of each Series of Senior Secured Parties upon such Shared Collateral
will automatically be released and discharged; provided that any
proceeds of any Shared Collateral realized therefrom shall be applied pursuant
to Section 2.01 and the Senior Subsidiary Security Agreement.

     

    (b)  Each
Senior Secured Party agrees that the Senior Collateral Agent may enter into any
amendment (and, upon request by the Senior Collateral Agent, each Authorized
Representative shall sign a consent to such amendment) to any Senior Collateral
Document, so long as the Senior Collateral Agent receives a certificate of Rite
Aid stating that such amendment is permitted by the terms of each then extant
Senior Debt Document.  Additionally, each Senior Secured Party agrees
that the Senior Collateral Agent may enter into any amendment (and, upon request
by the Senior Collateral Agent, each Authorized Representative shall sign a
consent to such amendment) to any Senior Collateral Document solely as such
Senior Collateral Document relates to a particular Series of Senior Obligations
so long as (x) such amendment is in accordance with the Senior Debt
Document pursuant to which such Series of Senior Obligations was incurred and
(y) such amendment does not adversely affect the Senior Secured Parties of
any other Series.  Notwithstanding the foregoing, no amendment to any
Senior Collateral Document entered into by the Senior Collateral Agent pursuant
to this Section 2.04(b) will (i) release all or substantially all of the Senior
Collateral from the Liens under the Senior Collateral Documents without the
written

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    consent
of each Authorized Representative or (ii) change the pro rata application of the
proceeds of the Senior Collateral required by Section 7.03 of the Senior
Subsidiary Security Agreement.

     

    (c)  Each
Authorized Representative agrees to execute and deliver (at the sole cost and
expense of the Subsidiary Guarantors) all such authorizations and other
instruments as shall reasonably be requested by the Senior Collateral Agent to
evidence and confirm any release of Shared Collateral or amendment to any Senior
Collateral Document provided for in this Section.

     

    SECTION
2.05  Certain
Agreements With Respect to Bankruptcy or Insolvency
Proceedings.

     

    (a)  This
Agreement shall continue in full force and effect notwithstanding the
commencement of any Bankruptcy Proceeding by or against Rite Aid or any of its
subsidiaries.

     

    (b)  If
Rite Aid or any Subsidiary Guarantor shall become subject to a Bankruptcy Proceeding
and shall, as debtor(s)-in-possession, move for approval of financing (“DIP
Financing”) to be provided by one or more lenders (the “DIP
Lenders”) under Section 364 of the Bankruptcy Code or any equivalent
provision of any other Bankruptcy Law or the use of cash Senior Collateral under
Section 363 of the Bankruptcy Code or any equivalent provision of any other
Bankruptcy Law, each Senior Secured Party agrees that it will raise no objection
to any such financing or to the Liens on the Shared Collateral securing the same
(“DIP
Financing Liens”) or to any use of cash Senior Collateral that
constitutes Shared Collateral, unless any Controlling Secured Party, or an
Authorized Representative of any Controlling Secured Party, shall then oppose or
object to such DIP Financing or such DIP Financing Liens or use of cash Senior
Collateral (and (i) to the extent that such DIP Financing Liens are senior
to the Liens on any such Shared Collateral for the benefit of the Controlling
Secured Parties, each Non-Controlling Secured Party will subordinate its Liens
with respect to such Shared Collateral on the same terms as the Liens of the
Controlling Secured Parties (other than any Liens of any Senior Secured Parties
constituting DIP Financing Liens) are subordinated thereto, and (ii) to the
extent that such DIP Financing Liens rank pari passu with the Liens on
any such Shared Collateral granted to secure the Senior Obligations of the
Controlling Secured Parties, each Non-Controlling Secured Party will confirm the
priorities with respect to such Shared Collateral as set forth herein), in each
case so long as (A) the Senior Secured Parties of each Series retain the
benefit of their Liens on all such Shared Collateral pledged to the DIP Lenders,
including proceeds thereof arising after the commencement of such proceeding,
with the same priority vis-a-vis all the other Senior Secured Parties (other
than any Liens of the Senior Secured Parties constituting DIP Financing Liens)
as existed prior to the commencement of the Bankruptcy Proceeding, (B) the
Senior Secured Parties of each Series are granted Liens on any additional Senior
Collateral pledged to any Senior Secured Parties as adequate protection or
otherwise in connection with such DIP Financing or use of cash Senior
Collateral, with the same priority vis-a-vis the Senior Secured Parties as set
forth in this Agreement, (C) if any amount of such DIP Financing or cash
collateral is applied to repay any of the Senior

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Obligations,
such amount is applied pursuant to Section 2.01, and (D) if any Senior
Secured Parties are granted adequate protection, including in the form of
periodic payments, in connection with such DIP Financing or use of cash
collateral, the proceeds of such adequate protection is applied pursuant to
Section 2.01; provided that the
Senior Secured Parties of each Series shall have a right to object to the grant
of a Lien to secure the DIP Financing over any collateral subject to Liens in
favor of the Senior Secured Parties of such Series or its Authorized
Representative that shall not constitute Shared Collateral; and provided, further, that the
Senior Secured Parties receiving adequate protection shall not object to any
other Senior Secured Party receiving adequate protection comparable to any
adequate protection granted to such Senior Secured Parties in connection with a
DIP Financing or use of cash collateral.  This Section shall not
affect the priority of the Second Priority Liens set forth in the Collateral
Trust and Intercreditor Agreement or any other rights of a Second Priority Debt
Party (in its capacity as such) contained in the Collateral Trust and
Intercreditor Agreement or otherwise.

     

    SECTION
2.06  Reinstatement.
In the event that any of the Senior Obligations shall be paid in full and such
payment or any part thereof shall subsequently, for whatever reason (including
an order or judgment for disgorgement of a preference under Title 11 of the
United States Code, or any similar law, or the settlement of any claim in
respect thereof), be required to be returned or repaid, the terms and conditions
of this Article II shall, subject to the provisions of
Section 1.01(b), be fully applicable thereto until all such Senior
Obligations shall again have been paid in full in cash.

     

    SECTION
2.07  Insurance.
As between the Senior Secured Parties, the Senior Collateral Agent, acting at
the direction of the Applicable Authorized Representative, shall have the right,
to the extent authorized by the Senior Subsidiary Security Agreement, to adjust
or settle any insurance policy or claim covering or constituting Shared
Collateral in the event of any loss thereunder and to approve any award granted
in any condemnation or similar proceeding affecting the Shared
Collateral.

     

    SECTION
2.08  Refinancings.
The Senior Obligations of any Series may be Refinanced, in whole or in part,
with other Senior Obligations, in each case, without notice to, or the consent
(except to the extent a consent is otherwise required to permit the refinancing
transaction under any Senior Debt Document) of any Senior Secured Party of any
other Series, all without affecting the priorities provided for herein or the
other provisions hereof; provided that the
Authorized Representative of the holders of any such Refinancing indebtedness
shall have executed a Joinder Agreement on behalf of the holders of such
Refinancing indebtedness.

     

    SECTION
2.09  Possessory
Collateral Agent as Gratuitous Bailee for Perfection.

     

    (a)  The
Senior Collateral Agent agrees to hold any Shared Collateral constituting
Possessory Collateral that is part of the Senior Collateral in its possession or
control (or in the possession or control of its agents or bailees) as gratuitous
bailee for the benefit of each other Senior Secured Party solely for the purpose
of perfecting the security interest granted in such Possessory Collateral, if
any, pursuant to the applicable

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Senior
Collateral Documents, in each case, subject to the terms and conditions of this
Section 2.09. Pending delivery to the Senior Collateral Agent, each other
Authorized Representative agrees to hold any Shared Collateral constituting
Possessory Collateral, from time to time in its possession, as gratuitous bailee
for the benefit of each other Senior Secured Party, solely for the purpose of
perfecting the security interest granted in such Possessory Collateral, if any,
pursuant to the applicable Senior Collateral Documents, in each case, subject to
the terms and conditions of this Section 2.09.

     

    (b)  The
duties or responsibilities of the Senior Collateral Agent and each other
Authorized Representative under this Section 2.09 shall be limited solely
to holding any Shared Collateral constituting Possessory Collateral as
gratuitous bailee for the benefit of each other Senior Secured Party for
purposes of perfecting the Lien held by such Senior Secured Parties
therein.

     

    ARTICLE
III

     

    Existence
and Amounts of Liens and Obligations

     

    Whenever
the Senior Collateral Agent or any Authorized Representative shall be required,
in connection with the exercise of its rights or the performance of its
obligations hereunder, to determine the existence or amount of any Senior
Obligations of any Series, or the Shared Collateral subject to any Lien securing
the Senior Obligations of any Series, it may request that such information be
furnished to it in writing by each other Authorized Representative and shall be
entitled to make such determination on the basis of the information so
furnished; provided, however, that if an
Authorized Representative shall fail or refuse reasonably promptly to provide
the requested information, the requesting Senior Collateral Agent or Authorized
Representative shall be entitled to make any such determination by such method
as it may, in the exercise of its good faith judgment, determine, including by
reliance upon a certificate of Rite Aid.  The Senior Collateral Agent
and each Authorized Representative may rely conclusively, and shall be fully
protected in so relying, on any determination made by it in accordance with the
provisions of the preceding sentence (or as otherwise directed by a court of
competent jurisdiction) and shall have no liability to any Subsidiary Guarantor,
any Senior Secured Party or any other person as a result of such
determination.

     

    ARTICLE
IV

     

    The
Senior Collateral Agent

     

    SECTION
4.01  Appointment and
Authority.

     

    (a)  Each
Senior Representative, on behalf of the Senior Secured Parties represented by
it, hereby irrevocably appoints Citicorp North America, Inc. (and any successor
thereto as Senior Collateral Agent pursuant to the definition of the term
“Senior Collateral Agent”) to act on its behalf as the Senior Collateral Agent
hereunder and under each of the other Senior Collateral Documents and authorizes
the Senior Collateral Agent to take such actions on its behalf and to exercise
such powers as are delegated to the

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Senior
Collateral Agent by the terms hereof or thereof, including for purposes of
acquiring, holding and enforcing any and all Liens on Senior Collateral granted
by any Subsidiary Guarantor to secure any of the Senior Obligations, together
with such powers and discretion as are reasonably incidental thereto. In this
connection, the Senior Collateral Agent and any co-agents, sub-agents and
attorneys-in-fact appointed by the Senior Collateral Agent pursuant to Section
4.05 for purposes of holding or enforcing any Lien on the Senior Collateral (or
any portion thereof) granted under any of the Senior Collateral Documents, or
for exercising any rights and remedies thereunder at the direction of the
Applicable Authorized Representative), shall be entitled to the benefits of all
provisions of this Article IV and Article VIII of the Senior Credit
Agreement and the equivalent provision of any Additional Senior Debt Facility
(as though such co-agents, sub-agents and attorneys-in-fact were the “Senior
Collateral Agent” under the Senior Collateral Documents) as if set forth in full
herein with respect thereto.

     

    (b)  Upon
execution and delivery of an instrument substantially in the form of Annex 2 by
an additional Senior Class Debt Representative in accordance with Section 5.13,
each then-existing Senior Class Debt Representative (the “Existing Debt
Representatives”) hereby authorizes and directs the Senior Collateral Agent to
execute and deliver such instrument substantially in the form of Annex 2 and any
other Senior Collateral Documents (and acknowledges that any Senior Collateral
Documents previously executed and delivered will be deemed to have been executed
and delivered) on behalf of all Existing Debt Representatives and acknowledges
and agrees that upon execution and delivery of such instrument substantially in
the form of Annex 1 and such other Senior Collateral Documents, if any, the
Senior Collateral Agent will act in its capacity as Senior Collateral Agent for
all Existing Debt Representatives and such additional Senior Class Debt
Representative.

     

    (c)  Each
Non-Controlling Secured Party acknowledges and agrees that the Senior Collateral
Agent shall be entitled, for the benefit of the Senior Secured Parties, to sell,
transfer or otherwise dispose of or deal with any Shared Collateral as provided
herein and in the Senior Collateral Documents, without regard to any rights to
which the Non-Controlling Secured Parties would otherwise be entitled as a
result of the Senior Obligations held by such Non-Controlling Secured Parties.
Without limiting the foregoing, each Non-Controlling Secured Party agrees that
none of the Senior Collateral Agent, the Applicable Authorized Representative or
any other Senior Secured Party shall have any duty or obligation first to
marshal or realize upon any type of Shared Collateral (or any other Senior
Collateral securing any of the Senior Obligations), or to sell, dispose of or
otherwise liquidate all or any portion of such Shared Collateral (or any other
Senior Collateral securing any Senior Obligations), in any manner that would
maximize the return to the Non-Controlling Secured Parties, notwithstanding that
the order and timing of any such realization, sale, disposition or liquidation
may affect the amount of proceeds actually received by the Non-Controlling
Secured Parties from such realization, sale, disposition or liquidation. Each of
the Senior Secured Parties waives any claim it may now or hereafter have against
the Senior Collateral Agent or the Authorized Representative of any other Series
of Senior Obligations or any other Senior Secured Party of any other Series
arising out of (i) any actions which the Senior Collateral Agent, any
Authorized Representative or any Senior Secured Party takes or omits to
take

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (including
actions with respect to the creation, perfection or continuation of Liens on any
Senior Collateral, actions with respect to the foreclosure upon, sale, release
or depreciation of, or failure to realize upon, any of the Senior Collateral and
actions with respect to the collection of any claim for all or any part of the
Senior Obligations from any account debtor, guarantor or any other party) in
accordance with the Senior Collateral Documents or any other agreement related
thereto or to the collection of the Senior Obligations or the valuation, use,
protection or release of any security for the Senior Obligations, (ii) any
election by any Applicable Authorized Representative or any holders of Senior
Obligations, in any proceeding instituted under the Bankruptcy Code, of the
application of Section 1111(b) of the Bankruptcy Code or (iii) subject to
Section 2.05, any borrowing by, or grant of a security interest or
administrative expense priority under Section 364 of the Bankruptcy Code
by, Rite Aid or any of its subsidiaries, as debtor-in-possession.
Notwithstanding any other provision of this Agreement, the Senior Collateral
Agent shall not accept any Shared Collateral in full or partial satisfaction of
any Senior Obligations pursuant to Section 9-620 of the Uniform Commercial
Code of any jurisdiction, without the consent of each Authorized Representative
representing holders of Senior Obligations for whom such Senior Collateral
constitutes Shared Collateral.

     

    SECTION
4.02  Rights as a
Senior Secured Party.

     

    The
Person serving as the Senior Collateral Agent hereunder shall have the same
rights and powers in its capacity as a Senior Secured Party under any Series of
Senior Obligations that it holds as any other Senior Secured Party of such
Series and may exercise the same as though it were not the Senior Collateral
Agent and the term “Senior Secured Party” or “Senior Secured Parties” or (as
applicable) “Senior Loan Secured Party”, “Senior Loan Secured Parties”,
“Additional Senior Debt Party” or “Additional Senior Debt Parties” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include
the Person serving as the Senior Collateral Agent hereunder in its individual
capacity. Such Person and its Affiliates may accept deposits from, lend money
to, act as the financial advisor or in any other advisory capacity for and
generally engage in any kind of business with Rite Aid or any Subsidiary or
other Affiliate thereof as if such Person were not the Senior Collateral Agent
hereunder and without any duty to account therefor to any other Senior Secured
Party.

     

    SECTION
4.03  Exculpatory
Provisions.

     

    (a)  The
Senior Collateral Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Senior Collateral Documents. Without
limiting the generality of the foregoing, the Senior Collateral
Agent:

     

    
      	
               
      

            	
              (i)

            	
              shall
      not be subject to any fiduciary or other implied duties, regardless of
      whether an Event of Default has occurred and is
  continuing;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              shall
      not have any duty to take any discretionary action or exercise any
      discretionary powers, except discretionary rights and powers expressly
      contemplated hereby or by the other Senior Collateral Documents that the
      Senior Collateral Agent is required to exercise
  as

            

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    
      
        	 	 	directed
      in writing by the Applicable Authorized Representative; provided
      that the Senior Collateral Agent shall not be required to take any action
      that, in its opinion or the opinion of its counsel, may expose the Senior
      Collateral Agent to liability or that is contrary to any Senior Collateral
      Document or applicable law;
	 	 	 
	
                 
      

              	
                (iii)

              	
                shall
      not, except as expressly set forth herein and in the other Senior
      Collateral Documents, have any duty to disclose, and shall not be liable
      for the failure to disclose, any information relating to Rite Aid or any
      of its Affiliates that is communicated to or obtained by the Person
      serving as the Senior Collateral Agent or any of its Affiliates in any
      capacity;

              

      

    

     

    
      	
               
      

            	
              (iv)

            	
              shall
      not be liable for any action taken or not taken by it (i) with the consent
      or at the request of the Applicable Authorized Representative or
      (ii) in the absence of its own gross negligence or willful misconduct
      or (iii) in reliance on a certificate of an authorized officer of
      Rite Aid stating that such action is permitted by the terms of this
      Agreement. The Senior Collateral Agent shall be deemed not to have
      knowledge of any Event of Default under any Series of Senior Obligations
      unless and until notice describing such Event Default is given to the
      Senior Collateral Agent by the Authorized Representative of such Senior
      Obligations or Rite Aid; and

            

    

     

    
      	
               
      

            	
              (v)

            	
              shall
      not be responsible for or have any duty to ascertain or inquire into
      (i) any statement, warranty or representation made in or in
      connection with this Agreement or any other Senior Collateral Document,
      (ii) the contents of any certificate, report or other document delivered
      hereunder or thereunder or in connection herewith or therewith,
      (iii) the performance or observance of any of the covenants,
      agreements or other terms or conditions set forth herein or therein or the
      occurrence of any default or event of default under any Senior Debt
      Document, (iv) the validity, enforceability, effectiveness or
      genuineness of this Agreement, any other Senior Collateral Document or any
      other agreement, instrument or document, or the creation, perfection or
      priority of any Lien purported to be created by the Senior Collateral
      Documents, (v) the value or the sufficiency of any Senior Collateral
      for any Series of Senior Obligations, or (i) the satisfaction of any
      condition set forth in any Senior Debt Document, other than to confirm
      receipt of items expressly required to be delivered to the Senior
      Collateral Agent.

            

    

     

    SECTION
4.04  Reliance by
Senior Collateral Agent.

     

    The
Senior Collateral Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    intranet
website posting or other distribution) believed by it to be genuine and to have
been signed, sent or otherwise authenticated by the proper
Person.  The Senior Collateral Agent also may rely upon any statement
made to it orally or by telephone and believed by it to have been made by the
proper Person, and shall not incur any liability for relying thereon. The Senior
Collateral Agent may consult with legal counsel (who may be counsel for Rite
Aid), independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

     

    SECTION
4.05  Delegation of
Duties.

     

    The
Senior Collateral Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Senior Collateral Document by or
through any one or more sub-agents appointed by the Senior Collateral Agent. The
Senior Collateral Agent and any such sub-agent may perform any and all of its
duties and exercise its rights and powers by or through their respective
Affiliates. The exculpatory provisions of this Article shall apply to any such
sub-agent and to the Affiliates of the Senior Collateral Agent and any such
sub-agent.

     

    SECTION
4.06  Resignation of
Senior Collateral Agent.

     

    The
Senior Collateral Agent may at any time give notice of its resignation as Senior
Collateral Agent under this Agreement and the other Senior Collateral Documents
to each Authorized Representative and Rite Aid.  Upon receipt of any
such notice of resignation, the Applicable Authorized Representative shall have
the right, in consultation with Rite Aid, to appoint a successor, which shall be
a bank with an office in the United States, or an Affiliate of any such bank
with an office in the United States. If no such successor shall have been so
appointed by the Applicable Authorized Representative and shall have accepted
such appointment within 30 days after the retiring Senior Collateral Agent
gives notice of its resignation, then the retiring Senior Collateral Agent may,
on behalf of the Senior Secured Parties, appoint a successor Senior Collateral
Agent meeting the qualifications set forth above; provided that if the
Senior Collateral Agent shall notify Rite Aid and each Authorized Representative
that no qualifying Person has accepted such appointment, then such resignation
shall nonetheless become effective in accordance with such notice and
(a) the retiring Senior Collateral Agent shall be discharged from its
duties and obligations hereunder and under the other Senior Collateral Documents
(except that in the case of any Senior Collateral security held by the Senior
Collateral Agent on behalf of the Senior Secured Parties under any of the Senior
Collateral Documents, the retiring Senior Collateral Agent shall continue to
hold such Senior Collateral security solely for purposes of maintaining the
perfection of the security interests of the Senior Secured Parties therein until
such time as a successor Senior Collateral Agent is appointed but with no
obligation to take any further action at the request of the Applicable
Authorized Representative or any other Senior Secured Parties) and (b) all
payments, communications and determinations provided to be made by, to or
through the Senior Collateral Agent shall instead be made by or to each
Authorized Representative directly, until such time as the Applicable Authorized
Representative appoints a successor Senior Collateral Agent as provided for
above in this

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Section.
Upon the acceptance of a successor’s appointment as Senior Collateral Agent
hereunder and under the Senior Collateral Documents, such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring (or retired) Senior Collateral Agent, and the retiring
Senior Collateral Agent shall be discharged from all of its duties and
obligations hereunder or under the other Senior Collateral Documents (if not
already discharged therefrom as provided above in this
Section).  After the retiring Senior Collateral Agent’s resignation
hereunder and under the other Senior Collateral Documents, the provisions of
this Article and Article VIII of the Senior Credit Agreement and the
equivalent provision of any Additional Senior Debt Facility shall continue in
effect for the benefit of such retiring Senior Collateral Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while the retiring Senior Collateral Agent was acting
as Senior Collateral Agent.  Upon any notice of resignation of the
Senior Collateral Agent hereunder and under the other Senior Collateral
Documents, Rite Aid agrees to use commercially reasonable efforts to transfer
(and maintain the validity and priority of) the Liens in favor of the retiring
Senior Collateral Agent under the Senior Collateral Documents to the successor
Senior Collateral Agent.

     

    SECTION
4.07  Non-Reliance on
Senior Collateral Agent and other Senior Secured Parties.

     

    Each
Senior Secured Party acknowledges that it has, independently and without
reliance upon the Senior Collateral Agent, any Authorized Representative or any
other Senior Secured Party or any of their Affiliates and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement and the other Senior Debt
Documents.  Each Senior Secured Party also acknowledges that it will,
independently and without reliance upon the Senior Collateral Agent, any
Authorized Representative or any other Senior Secured Party or any of their
Affiliates and based on such documents and information as it shall from time to
time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Senior Debt Document
or any related agreement or any document furnished hereunder or
thereunder.

     

    SECTION
4.08  Senior Collateral
and Guaranty Matters.

     

    Each
of the Senior Secured Parties irrevocably authorizes the Senior Collateral
Agent, at its option and in its discretion,

     

    (a)  to
release any Lien on any property granted to or held by the Senior Collateral
Agent under any Senior Collateral Document in accordance with Section 2.04
or upon receipt of a written request from Rite Aid stating that the release of
such Lien is permitted by the terms of each then extant Senior Debt
Document;

     

    (b)  to
release any Subsidiary Guarantor from its obligations under the Senior
Collateral Documents upon receipt of a written request from Rite Aid stating
that such release is permitted by the terms of each then extant Senior Debt
Document.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ARTICLE
V

     

    Miscellaneous

     

    SECTION
5.01  Notices.
All notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

     

    (a)  if
to the Senior Collateral Agent or the Administrative Agent, to it at 388
Greenwich Street, New York, NY 10013, Attention of Thomas Halsch, Telecopy
No. (646) 328-3784;

     

    (b)  if
to the Initial Additional Senior Representative, to it at 2 North LaSalle
Street, Suite 1020, Chicago, IL 60602, Attention: Corporate Trust
Administration (Telecopy No. (312) 827-8542);

     

    (c)  if
to any other Senior Representative, to it at the address set forth in the
applicable Joinder Agreement.

     

    Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt (if
a Business Day) and on the next Business Day thereafter (in all other cases) if
delivered by hand or overnight courier service or sent by telecopy or on the
date five Business Days after dispatch by certified or registered mail if
mailed, in each case delivered, sent or mailed (properly addressed) to such
party as provided in this Section 5.01 or in accordance with the latest
unrevoked direction from such party given in accordance with this
Section 5.01. As agreed to in writing among the Senior Collateral Agent and
each Authorized Representative from time to time, notices and other
communications may also be delivered by e-mail to the e-mail address of a
representative of the applicable person provided from time to time by such
person.

     

    SECTION
5.02  Waivers;
Amendment; Joinder Agreements.

     

    (a)  No
failure or delay on the part of any party hereto in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or
power.  The rights and remedies of the parties hereto are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of this Agreement or consent to any departure by any
party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given.  No notice or demand on any party hereto in any case shall
entitle such party to any other or further notice or demand in similar or other
circumstances.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (b)  Neither
this Agreement nor any provision hereof may be terminated, waived, amended or
modified (other than pursuant to any Joinder Agreement) except pursuant to an
agreement or agreements in writing entered into by each Authorized
Representative and the Senior Collateral Agent (and with respect to any such
termination, waiver, amendment or modification which by the terms of this
Agreement requires Rite Aid’s consent or which increases the obligations or
reduces the rights of Rite Aid or any Subsidiary Guarantor, with the consent of
Rite Aid).

     

    (c)  Notwithstanding
the foregoing, without the consent of any Senior Secured Party, any Authorized
Representative may become a party hereto by execution and delivery of a Joinder
Agreement in accordance with Section 5.13 and upon such execution and
delivery, such Authorized Representative and the Additional Senior Debt Parties
and Additional Senior Debt Obligations of the Series for which such Authorized
Representative is acting shall be subject to the terms hereof and the terms of
the other Senior Collateral Documents applicable thereto.

     

    (d)  Notwithstanding
the foregoing, without the consent of any other Authorized Representative or
Senior Secured Party, the Senior Collateral Agent may effect amendments and
modifications to this Agreement to the extent necessary to reflect any
incurrence of any Additional Senior Debt in compliance with the Senior Debt
Documents and the Second Priority Debt Documents.

     

    SECTION
5.03  Parties in
Interest. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns, as well as
the other Senior Secured Parties, all of whom are intended to be bound by, and
to be third party beneficiaries of, this Agreement.

     

    SECTION
5.04  Survival of
Agreement. All covenants, agreements, representations and warranties made
by any party in this Agreement shall be considered to have been relied upon by
the other parties hereto and shall survive the execution and delivery of this
Agreement.

     

    SECTION
5.05  Counterparts.
This Agreement may be executed in counterparts, each of which shall constitute
an original but all of which when taken together shall constitute a single
contract. Delivery of an executed signature page to this Agreement by facsimile
or electronic transmission shall be effective as delivery of a manually signed
counterpart of this Agreement.

     

    SECTION
5.06  Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.  The parties
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    SECTION
5.07  Governing Law;
Jurisdiction.

     

    (a)  This
Agreement shall be construed in accordance with and governed by the law of the
State of New York.

     

    SECTION
5.08  Submission To
Jurisdiction Waivers; Consent to Service of Process. The Senior
Collateral Agent and each Authorized Representative, on behalf of itself and the
Senior Secured Parties of the Series for whom it is acting, irrevocably and
unconditionally
:

     

    (a)  submits
for itself and its property in any legal action or proceeding relating to this
Agreement and the Senior Collateral Documents, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the courts of the State of New York, the courts of the United
States of America in the Southern District of New York, and appellate courts
from any thereof;

     

    (b)  consents
that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     

    (c)  agrees
that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to such Person (or its Authorized
Representative) at the address referred to in 5.01;

     

    (d)  agrees
that nothing herein shall affect the right of any other party hereto (or any
Senior Secured Party) to effect service of process in any other manner permitted
by law or shall limit the right of any party hereto (or any Senior Secured
Party) to sue in any other jurisdiction; and

     

    (e)  waives,
to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section 5.08
any special, exemplary, punitive or consequential damages.

     

    SECTION
5.09  WAIVER OF JURY
TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND
FOR ANY COUNTERCLAIM THEREIN.

     

    SECTION
5.10  Headings.
Article, Section and Annex headings used herein are for convenience of reference
only, are not part of this Agreement and are not to affect the construction of,
or to be taken into consideration in interpreting, this Agreement.

     

    SECTION
5.11  Conflicts.
In the event of any conflict or inconsistency between the provisions of this
Agreement and the provisions of any of the other Senior

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Debt
Documents or Senior Collateral Documents, the provisions of this Agreement shall
control.

     

    SECTION
5.12  Provisions Solely
to Define Relative Rights. The provisions of this Agreement are and are
intended solely for the purpose of defining the relative rights of the Senior
Secured Parties in relation to one another.  None of Rite Aid, any
Subsidiary Guarantor or any other creditor thereof shall have any rights or
obligations hereunder, except as expressly provided in this Agreement (provided that nothing
in this Agreement (other than Section 2.04, 2.05, 2.08, 2.09 or
Article V) is intended to or will amend, waive or otherwise modify the
provisions of the Senior Credit Agreement or any Additional Senior Debt
Facilities), and none of Rite Aid or any Subsidiary Guarantor may rely on the
terms hereof (other than Sections 2.04, 2.05, 2.08, 2.09 and
Article V).  Nothing in this Agreement is intended to or shall
impair the obligations of any Subsidiary Guarantor, which are absolute and
unconditional, to pay the Senior Obligations as and when the same shall become
due and payable in accordance with their terms.

     

    SECTION
5.13  Additional Senior
Debt.  To the extent,
but only to the extent  permitted by the provisions of the Senior Debt
Documents and the Second Priority Debt Documents, Rite Aid may incur or issue
and sell one or more series or classes of Senior Facilities.  Any such
additional class or series of Additional Senior Debt (the “Senior Class Debt”) may be
secured by the Senior Lien and may be Guaranteed by the Subsidiary Guarantors on
a senior basis, in each case under and pursuant to the Senior Collateral
Documents, if and subject to the condition that the Representative of any such
Senior Class Debt (each, a “Senior Class Debt
Representative”), acting on behalf of the holders of such Senior Class
Debt (such Representative and holders in respect of any Senior Class Debt being
referred to as the “Senior
Class Debt Parties”), becomes a party to this Agreement by satisfying the
conditions set forth in clauses (i) through (v) of the immediately succeeding
paragraph.

     

    In
order for a Senior Class Debt Representative to become a party to this
Agreement,

     

    
      	
               
      

            	
              (i)

            	
              such
      Senior Class Debt Representative, the Senior Collateral Agent and each
      Subsidiary Guarantor shall have executed and delivered an instrument
      substantially in the form of Annex 2 (with such changes as may be approved
      by the Senior Collateral Agent and such Senior Class Representative)
      pursuant to which such Senior Class Debt Representative becomes an
      Authorized Representative hereunder, and the Senior Class Debt in respect
      of which such Senior Class Debt Representative is the Representative and
      the related Senior Class Debt Parties become subject hereto and bound
      hereby;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Rite
      Aid shall have delivered to the Senior Collateral Agent and the Second
      Priority Collateral Trustee true and complete copies of each of the Senior
      Debt Documents relating to such Senior Class Debt, certified as being true
      and correct by a Financial Officer of Rite
Aid;

            

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (iii)

            	
              all
      filings, recordations and/or amendments or supplements to the Senior
      Collateral Documents necessary or desirable in the reasonable judgment of
      the Senior Collateral Agent to confirm and perfect the Senior Liens
      securing the relevant Senior Obligations relating to such Senior Class
      Debt shall have been made, executed and/or delivered (or, with respect to
      any such filings or recordations, acceptable provisions to perform such
      filings or recordings have been taken in the reasonable judgment of the
      Senior Collateral Agent), and all fees and taxes in connection therewith
      shall have been paid;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Senior Debt Documents, as applicable, relating to such Senior Class Debt
      shall provide, in a manner reasonably satisfactory to the Senior
      Collateral Agent, that each Senior Class Debt Party with respect to such
      Senior Class Debt will be subject to and bound by the provisions of this
      Agreement in its capacity as a holder of such Senior Class Debt;
      and

            

    

     

    
      	
               
      

            	
              (v)

            	
              the
      Senior Collateral Agent and the Second Priority Collateral Trustee shall
      have received such opinions of outside counsel to Rite Aid and such Senior
      Class Debt Representative as any of them may request and such other
      documents relating to the matters referred to in clauses (i), (ii) and
      (iii) as any of them may reasonably request, and such opinions and other
      documents shall be reasonably satisfactory in form and substance to the
      Senior Collateral Agent and the Second Priority Collateral
      Trustee.

            

    

     

    SECTION
5.14 Integration.
This Agreement together with the other Senior Debt Documents, including the
Senior Collateral Documents, represents the agreement of each of the Subsidiary
Guarantors and the Senior Secured Parties with respect to the subject matter
hereof and there are no promises, undertakings, representations or warranties by
any Subsidiary Guarantor, the Senior Collateral Agent, any Authorized
Representative or any other Senior Secured Party relative to the subject matter
hereof not expressly set forth or referred to herein or in the other Senior Debt
Documents or the Senior Collateral Documents.

     

    SECTION
5.15 Rights of
Authorized Representatives. Any trustee or other Authorized
Representative under any Additional Senior Debt Facility that becomes a party
hereto shall have all the rights, privileges, protections, immunities, benefits
and indemnities granted to it under the applicable indenture or other agreement
that constitutes such Additional Senior Debt Facility as if such rights,
privileges, protections, immunities, benefits and indemnities were set forth
herein in full.

     

    [Remainder
of this page intentionally left blank]

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
 

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

     

    
      	 
      	
              RITE
      AID CORPORATION,

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By

            	 
      	
              /s/
      Marc A. Strassler

            
	 
      	 
      	
              Name:

            	
              Marc
      A. Strassler

            
	 
      	 
      	
              Title:

            	
              Executive
      Vice President, General

            
	 
      	 
      	 
      	
              Counsel
      and Secretary

            
	 
      	 
      	 
      	 
      

    

    

    
      	 
      	 
      
	 
      	
              THE
      SUBSIDIARY GUARANTORS LISTED ON ANNEX 1 HERETO,

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By

            	 
      	
              /s/
      Marc A. Strassler

            
	 
      	 
      	
              Name:

            	
              Marc
      A. Strassler

            
	 
      	 
      	
              Title:

            	
              Authorized
      Person

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

    

    

    
      
        
          [Signature
Page to Senior Lien Intercreditor Agreement]

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	 
      	
              CITICORP
      NORTH AMERICA, INC.,

              as
      Administrative Agent and Senior Collateral Agent

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By

            	 
      	
              /s/
      David Leland

            
	 
      	 
      	
              Name:

            	
              David
      Leland

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	 
      	
              THE BANK OF NEW YORK MELLON
      

              TRUST COMPANY, N.A., as
      Initial Additional 

              Senior
      Representative

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By

            	 
      	
              /s/
      D. G. Donovan

            
	 
      	 
      	
              Name:

            	
              D.
      G. Donovan

            
	 
      	 
      	
              Title:

            	
              Vice
      President

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

          
            Annex
2 to the

            Senior
Lien Intercreditor Agreement

          

        

      

    

    

    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.

            

    

     

    
      	
              120.

            	
              Rite
      Fund, Inc.

            

    

     

    
      	
              121.

            	
              Rite
      Investments Corp.

            

    

     

    
      	
              122.

            	
              Rite
      Aid Hdqtrs. Funding, Inc.

            

    

     

    
      	
              123.

            	
              EDC
      Licensing, Inc.

            

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
              124.

            	
              JCG
      Holdings (USA), Inc.

            

    

     

    
      	
              125.

            	
              JCG
      (PJC) USA, LLC

            

    

     

    
      	
              126.

            	
              The
      Jean Coutu Group (PJC) USA, Inc.

            

    

     

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

          
            Annex
2 to the

            Senior
Lien Intercreditor Agreement

          

        

      

    

    

    

    REPRESENTATIVE
SUPPLEMENT NO.    dated as of     ,
to the SENIOR LIEN INTERCREDITOR AGREEMENT dated as of June 12, 2009 (the
“Senior Lien Intercreditor
Agreement”), among Citicorp North America, Inc., a Delaware corporation
(“CNAI”),  as
Senior Collateral Agent for the Senior Secured Parties under the Senior
Collateral Documents, CNAI, as Authorized Representative under the Senior Credit
Agreement, The Bank of New York Mellon Trust Company, N.A., as Initial
Additional Authorized Representative, and the additional Authorized
Representatives from time to time a party thereto.

     

    A.  Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Senior Lien Intercreditor Agreement, including the
Definitions Annex referred to therein.

     

    B.  As
a condition to the ability of Rite Aid to issue Additional Senior Debt and to
secure such Senior Class Debt with the Senior Lien and to have such Senior Class
Debt guaranteed by the Subsidiary Guarantors on a senior basis, in each case
under and pursuant to the Senior Collateral Documents, the Senior Class Debt
Representative in respect of such Senior Class Debt is required to become an
Authorized Representative under, and such Senior Class Debt and the Senior Class
Debt Parties in respect thereof are required to become subject to and bound by,
the Senior Lien Intercreditor Agreement.  Section 5.13 of the Senior
Lien Intercreditor Agreement provides that such Senior Class Debt Representative
may become an Authorized Representative under, and such Senior Class Debt and
such Senior Class Debt Parties may become subject to and bound by, the Senior
Lien Intercreditor Agreement, pursuant to the execution and delivery by the
Senior Class Representative of an instrument in the form of this Representative
Supplement and the satisfaction of the other conditions set forth in
Section 5.13 of the Senior Lien Intercreditor Agreement.  The
undersigned Senior Class Debt Representative (the “New Representative”) is
executing this Representative Supplement in accordance with the requirements of
the Senior Debt Documents.

     

    Accordingly,
the Senior Collateral Agent and the New Representative agree as
follows:

     

    SECTION
1.  In accordance with Section 5.13 of the Senior Lien Intercreditor
Agreement, the New Representative by its signature below becomes an Authorized
Representative under, and the related Senior Class Debt and Senior Class Debt
Parties become subject to and bound by, the Senior Lien Intercreditor Agreement
with the same force and effect as if the New Representative had originally been
named therein as an Authorized Representative, and the New Representative, on
behalf of itself and such Senior Class Debt Parties, hereby agrees to all the
terms and provisions of the Senior Lien Intercreditor Agreement applicable to it
as a Senior Representative and Authorized Representative and to the Senior Class
Debt Parties that it represents as Additional Senior Debt
Parties.  Each reference to a “Representative”, “Senior
Representative” or “Authorized Representative” in the Senior Lien
Intercreditor

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Agreement
shall be deemed to include the New Representative.  The Senior Lien
Intercreditor Agreement is hereby incorporated herein by reference.

     

    The
New Representative and [Citicorp North America, Inc.], on behalf of the Senior
Secured Parties, hereby irrevocably (i) appoint [Citicorp North America, Inc.]
as Senior Collateral Agent for purposes of the Senior Lien Intercreditor
Agreement and the other Senior Collateral Documents, (ii) authorize the Senior
Collateral Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Senior Collateral Agent in the Senior Collateral
Documents, together with such actions and powers as are reasonably incidental
thereto, and (iii) authorize the Senior Collateral Agent to execute any Senior
Collateral Documents on behalf of all Senior Secured Parties and to take such
other actions to maintain and preserve the security interests granted pursuant
to any Senior Collateral Documents.  The New Representative hereby
acknowledges and agrees that the Senior Collateral Agent in its capacity as such
shall be acting on its behalf and on behalf of all other Senior Secured
Parties.

    

    SECTION
2.  The New Representative represents and warrants to the Senior
Collateral Agent and the other Senior Secured Parties that (i) it has full
power and authority to enter into this Representative Supplement, in its
capacity as [agent] [trustee], (ii) this Representative Supplement has been
duly authorized, executed and delivered by it and constitutes its legal, valid
and binding obligation, enforceable against it in accordance with the terms of
such Agreement and (iii) the Additional Senior Debt Documents relating to
such Senior Class Debt provide that, upon the New Representative’s entry into
this Agreement, the Senior Class Debt Parties in respect of such Senior Class
Debt will be subject to and bound by the provisions of the Senior Lien
Intercreditor Agreement as Additional Senior Debt Parties.

     

    SECTION
3.  This Representative Supplement may be executed in counterparts,
each of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This Representative Supplement
shall become effective when the Senior Collateral Agent shall have received a
counterpart of this Representative Supplement that bears the signature of the
New Representative.  Delivery of an executed signature page to this
Representative Supplement by facsimile transmission shall be effective as
delivery of a manually signed counterpart of this Representative
Supplement.

     

    SECTION
4.  Except as expressly supplemented hereby, the Senior Lien
Intercreditor Agreement shall remain in full force and effect.

     

    SECTION
5.  THIS REPRESENTATIVE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    SECTION
6.  In case any one or more of the provisions contained in this
Representative Supplement should be held invalid, illegal or unenforceable in
any respect, no party hereto shall be required to comply with such provision for
so long as such provision is held to be invalid, illegal or unenforceable, but
the validity, legality and

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    enforceability
of the remaining provisions contained herein and in the Senior Lien
Intercreditor Agreement shall not in any way be affected or
impaired.  The parties hereto shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

     

    SECTION
7.  All communications and notices hereunder shall be in writing and
given as provided in Section 5.01 of the Senior Lien Intercreditor
Agreement.  All communications and notices hereunder to the New
Representative shall be given to it at the address set forth below its signature
hereto.

     

    By
acknowledging and agreeing to this Representative Supplement, each of the
Subsidiary Guarantors party hereto hereby (i) reaffirms the security
interests granted pursuant to the Senior Subsidiary Security Agreement and
grants a security interest in all of its right, title and interest in the Senior
Collateral (as defined in the Senior Subsidiary Security Agreement), whether now
owned or hereafter acquired, to secure the Senior Obligations and
(ii) authorizes the filing of any financing statements describing the
Senior Collateral in any manner the Senior Collateral Agent chooses, including,
without limitation, describing such Senior Collateral as “all assets of debtor,
whether now owned or hereafter acquired,” “all personal property of debtor,
whether now owned or hereafter acquired” or using words of similar
import.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the New Representative and the Senior Collateral Agent have
duly executed this Representative Supplement to the Senior Lien Intercreditor
Agreement as of the day and year first above written.

     

    
      	 
      	
              [NAME
      OF NEW REPRESENTATIVE], as 

              [                 ]
      for the holders of 

              [                                  ],

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By

            	 
      	 
      
	 
      	 
      	
              Name:

            	 
      
	 
      	 
      	
              Title:

            	
              Authorized
      Signatory

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

    

    
      	 
      	
              Address
      for notices:

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              attention
      of:

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              Telecopy:

            	 
      

    

    

    

    

    

    

    Acknowledged
by:

    

    CITICORP
NORTH AMERICA, INC.,

    as
Senior Collateral Agent,

    

    
      	
              By

            	 
      	 
      
	 
      	
              Name:

            	 
      	 
      
	 
      	
              Title:

            	 
      	 
      

    

    

    THE
SUBSIDIARY GUARANTORS

    LISTED
ON SCHEDULE 1 HERETO,

    

    
      	
              By

            	 
      	 
      
	 
      	
              Name:

            	 
      	 
      
	 
      	
              Title:

            	 
      	 
      

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

          
            Schedule
1 to Annex 2  to the

            Senior
Lien Intercreditor Agreement

          

        

      

    

    

    Subsidiary
Guarantors

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]