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09-7625
. It It RITE AID HDQTRS. CORP., Plaintiff, VS. INTERNATIONAL WATCH GROUP LLC, Defendant. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. CIVIL ACTION - LAW NOTICE TO DEFEND You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: (717) 249-3166 I RITE AID HDQTRS. CORP., IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff, NO. vs. INTERNATIONAL WATCH GROUP LLC, CIVIL ACTION - LAW Defendant. AVISO USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar acci6n dentro de los pr6ximos veinte (20) dias despu6s de la notificaci6n de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar acci6n como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamaci6n o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mds aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CUALIFICAN. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: (717) 249-3166 a RITE AID HDQTRS. CORP., vs. Plaintiff, INTERNATIONAL WATCH GROUP LLC, Defendant. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 09- -76X? CIVIL ACTION - LAW COMPLAINT Plaintiff Rite Aid Hdqtrs. Corp. ("Rite Aid"), by its undersigned attorneys, files this Complaint alleging as follows: PARTIES 1. Rite Aid is a Delaware corporation with its principal place of business at 30 Hunter Lane, Camp Hill, Pennsylvania 17011. 2. On information and belief, defendant International Watch Group LLC ("IWG") is a limited liability company with a principal office at 868 Kent Avenue, Brooklyn, NY 11205. JURISDICTION AND VENUE 3. This court has jurisdiction pursuant to 42 Pa.C.S. §931(a). 4. Venue in this Court is proper because the cause of action arose in Cumberland County and a transaction or occurrence took place out of which the cause of action arose in Cumberland County. RELEVANT FACTS 5. Rite Aid is a national drug store chain with its principal office in Cumberland County, Pennsylvania. 6. At all times relevant to this Complaint, IWG was involved in the manufacture, sale and distribution of watches. 7. Rite Aid and IWG entered into several agreements regarding the sale of IWG watches in Rite Aid's retail drug stores. 8. In January 2006, Rite Aid and IWG entered into a Guaranteed Sales Agreement ("GSA") in which IWG "guarantee[d] the sale of [IWG's] product to Rite Aid at both Customer Service Centers (i.e. distribution centers) and retail locations." A true and correct copy of the GSA, a valid and enforceable written contract, is attached to this Complaint as Exhibit A. 9. Under the GSA, Rite Aid had the right to return all unsold product to IWG for a cash refund. 10. Specifically, the GSA provided: If at any time Rite Aid determines in its sole discretion that Vendor's product(s) performance continues to be unacceptable, Rite Aid will have the right to return at Vendor's expense all unsold product(s) to Vendor's facility in return for Vendor's cash payment to Rite Aid for any products for which Rite Aid has paid, but have not been sold. See Exhibit A. 11. Rite Aid and IWG also entered into a Rite Aid Returns Agreement ("Returns Agreement") that provided the manner in which IWG's products could be returned to IWG. A true and correct copy of the Returns Agreement, a valid and enforceable written contract, is attached to this Complaint as Exhibit B. 12. The Returns Agreement permitted IWG to direct how Rite Aid should handle damaged, defective, outdated and discontinued goods ("unsaleable product"). See Exhibit B. -2- 13. IWG decided that the unsaleable product should be scanned and shipped back to IWG and IWG agreed to pay a fee for this particular method of disposition. See Exhibit B. 14. IWG also agreed to pay freight charges and Vendor Compliance Charges for distribution of IWG's product. 15. In addition, the Returns Agreement signed by IWG provided that IWG would be charged fees for the unsaleable product ("USI unsaleables"), and that such USI unsaleables would be deducted from the amount due to IWG. See Exhibit B. 16. IWG also entered into Promotional Funding Agreements with Rite Aid whereby it agreed to fund the marketing and advertising of IWG's products. True and correct copies of the Promotional Funding Agreements, valid and enforceable written contracts, are attached to this Complaint as Exhibit C. 17. Pursuant to the Promotional Funding Agreements, IWG agreed to deduct the marketing costs from the amounts owing by Rite Aid. See Exhibit C. 18. IWG and Rite Aid also entered into agreements under which IWG agreed to pay certain rebates and processing fees as part of Rite Aid's Single Check Rebate program ("Rebate Agreements"). True and correct copies of the Rebate Agreements, valid and enforceable written contracts, are attached to this Complaint as Exhibit D. 19. IWG also signed Rite Aid Incremental Investment Agreements whereby it agreed to fund retail store markdowns, scandowns, fixture displays and manufacturer coupons. True and correct copies of the Incremental Investment Agreements, valid and enforceable written contracts, are attached to this Complaint as Exhibit E. -3- 20. IWG also entered into Brooks-Eckerd Conversion Supplier Participation Agreements with Rite Aid. Under these agreements, it agreed to fund fixture displays for Brooks-Eckerd stores that had been recently acquired by Rite Aid. True and correct copies of the Brooks-Eckerd Conversion Supplier Participation Agreements, valid and enforceable written contracts, are attached to this Complaint as Exhibit F. 21. In addition to the agreements in paragraphs 8-20 above, IWG also agreed to fund fees and expenses incurred in attending trade shows sponsored by Rite Aid. 22. In March and April 2007, IWG agreed to financially support costs incurred in the final disposition/ recall of discontinued watches manufactured by Timex Corporation, which were ultimately replaced by IWG watches. This agreement is embodied in the Recall Disposition Forms and Final Timex Disposition Agreements signed by IWG. True and correct copies of the Recall Disposition Forms and Final Timex Disposition Agreements, valid and enforceable written contracts, are attached to this Complaint as Exhibit G. 23. Due to the fees and expenses charged pursuant to the agreements listed in paragraphs 7 through 22 above ("Fees"), as of November 2, 2009, IWG's account with Rite Aid has a $668,647.77 negative balance, which is expected to grow after all returns are processed and other account charge backs are applied. 24. On information and belief, the amount due and owing to Rite Aid will continue to increase. 25. As of the date of the filing of this Complaint, IWG is in breach of the GSA, Returns Agreement, Recall Disposition Forms and Final Timex Disposition Agreements, Promotional Funding Agreement, Rebate Agreements, Incremental Investment Agreements, -4- Brooks-Eckerd Conversion Supplier Participation Agreements and other related account contracts and agreements because it refuses to pay Rite Aid the negative balance on its account. COUNTI BREACH OF CONTRACT 26. Rite Aid incorporates the averments in paragraphs 1 through 25 above as if fully set forth herein. 27. As noted in paragraphs 7- 22 above, Rite Aid and IWG entered into various valid and enforceable written agreements under which IWG agreed to pay certain Fees. 28. To date, IWG owes Rite Aid $668,647.77 in Fees. A full accounting of the negative balances and summary sheets reflecting this amount is attached as Exhibit H. 29. Despite repeated requests, IWG refuses to pay the negative account balance of $668,647.77 to Rite Aid. 30. Rite Aid has performed all conditions precedent under the GSA, Returns Agreement, Recall Disposition Forms and Final Timex Disposition Agreements, Promotional Funding Agreement, Rebate Agreements, Incremental Investment Agreements, Brooks-Eckerd Conversion Supplier Participation Agreements and all related agreements under the account. 31. IWG is in breach of the GSA, Returns Agreement, Recall Disposition Forms and Final Timex Disposition Agreements, Promotional Funding Agreement, Rebate Agreements, Incremental Investment Agreements, Brooks-Eckerd Conversion Supplier Participation Agreements and all related agreements because it has failed to pay the negative balance on its account. 32. As of November 2, 2009, Rite Aid has suffered damages in excess of $668,647.77, an amount that will increase as additional returns and other Fees are processed, due to the breaches of IWG. -5- . WHEREFORE, Rite Aid requests judgment in an amount in excess of $668,647.77, plus interest, costs and all other amounts deemed appropriate by the Court. COUNT II UNJUST ENRICHMENT 33. Rite Aid incorporates the averments in paragraphs I through 32 above as if fully set forth herein. 34. In the event IWG contends no contractual relationship exists, Rite Aid is entitled to recover the outstanding amounts to prevent IWG from being unjustly enriched. 35. As is customary in the industry, IWG was to pay for certain Fees associated with the sale of its product. 36. IWG owes Rite Aid $668,647.77 in Fees. 37. Rite Aid has a reasonable expectation to receive the Fees incurred. 38. IWG reasonably should have expected to pay the Fees as such Fees are custom in the industry. 39. It would be inequitable for IWG to receive the benefit of the $668,647.77 still owed to Rite Aid. 40. In the event the contracts are deemed to be unenforceable, Rite Aid has no adequate remedy at law. 41. Rite Aid is entitled to collect the outstanding balance, plus interest, from IWG under the doctrine of unjust enrichment. -6- WHEREFORE,, Rite Aid requests that judgment be entered against IWG in the amount of $668,647.77 plus interest, costs and all other amounts deemed appropriate by the Court. Respectfully submitted, Brian P. Downey, Esquire (PA 59891) Natalie Grill Einsig (PA 89791) PEPPER HAMILTON LLP 100 Market Street, Suite 200 P.O. Box 1181 Harrisburg, PA 17108-1181 717.255.1155 717.238.0575 Fax downeyb@pepperlaw.com einsign@pepperlaw.com Date: November 4, 2009 Attorneys for Plaintiff Rite Aid Hdgtrs.Corp. -7- x ti i b,-f- A RITE AID CORPORATION GUARANTEED SALES AGREEMENT Rite Aid will consider Vendor's product(s) for distribution and sale under the terms and conditions set forth in this Agreement. In consideration of Rite Aid's agreement to review a new entry into its mix, as well as in consideration of the mutual premises contained herein, the parties agree as follows: I . Vendor will guarantee the sale of Vendor's product(s) to Rite Aid at both Customer Service Centers (i.e. distribution centers) and retail locations. 2. During the first one hundred twenty (120) days, or such other period as Rite Aid may determine in its sole discretion (it being understood by Vendor that Rite Aid may terminate this Agreement in its sole discretion at any time, for any reason whatsoever) following the date if the Vendor's first delivery of product(s) to Rite Aid (the "Review Period"), Vendor's account will be on a review status to permit Rite Aid to assess the performance of the product(s). During the Review Period, Rite Aid wilt pay only for those product(s) that are actually sold, and Rite Aid's payment will be reduced by any and all cash discounts or other debit amounts (including, but not limited to, advertising, displays, markdowns and price protection) due to Rite Aid. If at the end of the Review Period, Rite Aid determines, in its sole discretion, that the Vendor's product(s) is not selling at an acceptable rate, then Rite Aid will have the right to (a) require Vendor to review and modify Vendor's marketing plan to ensure future success and (b) extend the due date of the original invoice submitted by Vendor. Rite Aid also has the right to require a cash payment, as described in paragraph (3) below. The foregoing rights are not exclusive. At the end of the Review Period, Rite Aid may terminate this Agreement, place the Vendor on Rite Aid's customary payment terms, or extend the Review Period as Rite Aid, in its sole discretion, so desires. 3. If at any time Rite Aid determines in its sole discretion that Vendor's product(s) performance continues to be unacceptable, Rite Aid will have the right to return at Vendor's expense all unsold product(s) to Vendor's facility in return for Vendor's cash payment to Rite Aid for any products for which Rite Aid has paid, but have not been sold. Vendor's payment to Rite Aid shall be made (a) by wire transfer of immediately available funds or certified check, and (b) no later than fifteen (15) days after Rite Aid has returned the product(s). Vendor acknowledges and agrees that in the event that any of Vendor's allowances are funded with "free product" from Vendor, that "free product" will be treated identically to product purchased from Vendor by Rite Aid. This includes,but is not limited to, returns of this product to Vendor. 4. Upon settlement of Vendor's account, all outstanding invoices will be paid promptly, less any and all cash discounts or other debit amounts due to Rite Aid. Revised 8.10112004 S. The terms and conditions of this Agreement are in addition to, and in no way limit, Rite Aid's rights and remedies under Rite Aid's Vendor Profile, standard terms and conditions or purchase orders. In the event of inconsistency between the terms and conditions of the Agreement and any of the foregoing documents, this Agreement will govern. 6. The parties agree that Pennsylvania law governs this Agreement not withstanding its conflicts of law provisions. Any lawsuit brought with regard to this Guaranteed Sales Agreement will be venued in the Court of Common Pleas, Cumberland County, Pennsylvania. 7. The parties specifically agree that 13 Pa. C.S.A. §2326 & 2327(b) are inapplicable and that Vendor will accept returned goods in their "as-is" condition. 8. All returns arc at risk of vendor. 9. Vendor can not assign any product covered by this Agreement to any third party without the express written consent of a Vice President of Category Management. Rite Aid is enthusiastic about the opportunity to distribute product(s) into the marketplace. Rite Aid wishes you every success in your endeavor to provide a product that is unique. Please allow Rite Aid to assist you in your distribution needs by arranging for a duly authorized officer to sign and date this Agreement on behalf of your company, and return the executed letter to Rite Aid's Merchandising Department. 11, Vendor: ;c.lt/Aef rs1u? a e? ?p?vcfq By: 4=4ed AuthorizSiDate: /- 14 -D b 1 ?uloi Title: _..? , Z/X Revised L01t2W4 r h?b?+? ?x RITE AID RETURNS AGREEMENT Please note: A Separate Returns Agreement must be tilled out for each vendor number. Company Name: Contact Name: . 0'k/ Vendor Number. Invoice Address: J/-.-/ -e /d /L4.- Category Manager. Phone # - , J - Ls C00 Fax # - • 1 ov-' E-Maii Address: !? 6 Shipping Address: U /D o ?YN IBS' //Z O.r Associate Category Manager. TERMS OF AGREEMENT: A. Unsaleable Merchandise 1. All vendors will be charged the following processing fees for damaged, defective, outdated, and discontinued goods. These fees are based on the findings from the Joint Industry Task Force Study (JIR): DPC (Direct Product Cost) $0.085 Post Damage $0.111 Ops through Scan: 30. 101 $0.297 2. All vendors must determine a method of disposition for their unsaleable products. Based on the CODEIDESCRIPTIONS listed below, the vendor representative will check (X) the method hislher company has authorized Rite Aid to use. The additional charge, shown in () at the end of the description, will be added to the charges above. CODE DESCRIPTION WR COSTI COPT Scan and disposition Is left up to the discretion of Rite Aid ($0.020) DONA Scan and donate ($0.030) SHBK Scan and ship back to vendor ($0.180) OPEN RAIL REQUIRED WITH THIS OPTION RA# dl NOTE: Any product remaining in the reclamation centers for 45 days from the date of Invoice, without a Return Authorization Number, will be disposed of at the discretion of Rite Aid Corporation. Rite Aid Corporation will not entertain ANY requests for payback of product that falls into this category. 3. All products will be billed at Rite Aid's current list cost* .SIR billing factors (DPC, Post Damage Handling, RCC Charges, Disposition Charges) unless otherwise agreed to in writing by Rite Aid Corporation. Vendor billing Is not to exceed 1300/. of Rite Aid's list cost. Rev 01/12/06 Rite Aid Returns Agreement Page 2 4. All changes to policies must be in writing to Rite Aid Corporation. Approved policy changes will take effect within 30 days following their approval. 5. All vendors will agree to forward a copy of their current national policy regarding reclamation to be reviewed by Rite Aid Corporation. This win be sent to: Rite Aid Corporation 30 Hunter Lane Camp Hill, PA 17011 Attention: Manager, Front End Returns 6. All damaged and outdated Invoices are available through the Rite Aid Paperless Invoice System using the Carolina Supply Chain Services Webshe at www.carolinasupplvchainservires com. Vendors should contact the Manager, Front End Returns, at 717.214-8832 to request setup of their Company's authorized user. (See Page 3) 6. Recast Merchandise Please note: The dispositions on page 1 O NOT apply to recalls. A separate agreement MUST be filled out for all recalls at the time the recall Is being activated. This allows a vendor to have a separate disposition on recalls than they have on damaged and outdated returns. 1. All recall Invoices are available through the Rite Aid Paperless Invoice System using the Carolina Supply Chain Services Website at www.carolinasuptlychainservices.com. Vendors should contact the Manager, Front End Returns, at 717-214-8832 to request setup of their Company's authorized user. (See Page 3) The signatures below by the appropriate Category Manager of Rite Aid Corporation and he vendor representative of said company denote their understanding and acceptance of the a agreement. l ~ G o G J Y7,iL 4 Signature ndor Representative) Date Signs (Authorized by rte Aid Cfipmflon) Date ?f... d/a 6-0 IV aft Rite Aid Corporati on Company jCUt } ? / 7 Page I of I coMratx ? -?° ?l?F!?al! !?1!!:'TNT Md47t7tF tillOlir Gti!»p4+Y , one( ...`pp!!1Y +'•.?1?41l1t?D?f' WnyrrlgP?tst . s AW*N ??lrwtts- _ :a:. tqY 47Ma Pt+wnamr r?fxYl!??. \•l t. ' `' ` d f116Y{s llF`M'?•y* pw 0* bMlw 1!dtfi%Yr?t?AirlOd .• f IIeOhPPt N!!r ar?a1th11otRSiwtaryttl. THr rt?YtR M tasAls;tTpl IO1tip/?N! r' ' !YM /titiM?M:eA.?PPMIe!?Ppduoli?NMM4L? awd : !` 14M wts bN 0lrtt Vt4 Nr1066 rmwmwmi rw mtm drat s?e?ta41. ' MIW?. iMP#eRpMlpw/°? tw W r dnNirgp srtdaaaweputrnT/r1ulklo a4ttev?R?rl?aM??fa!•+ _ F ifMlFfCalF2fr1!1 !!R+i?wetl?hOMetiwrelkK;MrriWy? ??'j??iaNsMttlriM•VIdnM•yi?? dl??? .:P?iMNMI t?IFI Mlri 1Melr!/w. /rCit}1S O w?R O"Is CiRNYMt;. ? ? -- --- _ .w0(9?M1?Ift?b'W?a'111fi.dANgf[MM4b t'? M Pr'.walFa!CaPrs/ws..777 -PIS v11N Da wr NA *qwt N ls"Wea M •?!:?T^:':Ti :'?'? 1v% EIS, anm ...;sl 4\T•ff.11A ettllt.ft?1R1 MIWIt7r11 t?tal0h t a"* 1!a iWuAltid' ; Nt+t • Pu?dtrtaa? rrONt Y» tei+?or1W Phil ft"*j" " UK 140 • W tYE tYRM Ow,o moss tFl vv& mad t11W? 411 tK A-4 .}MNO. pop YNw i3r VISWl dH WC20-t QICIE T'd %Hd 13Cb39HFTdH MN141a2T 8002 it UVC XNJ 13rdas i dH wusT:tT 6or,2 9T uwC http://portal.riteaid.comNINIPLAN/PAGESNICP0027.asnx R/ 1 zi1nno Contract # 0153156 • W Rite Aid Promotional Funding Agreement Fiscal Year 2008 Company Name: INTERNATIONAL WATCH GROUP Category Manager: HAYES, PAT Bitting Address: ATTN: DOUG DIX Vendor #: 36295 868 KENT AVE BROOKLYN NY 11205 Contact: Doug Dix Phone: -- Fax#.- 7186235000 Email: INTERNATIONAL WATCH GROL (Supplier) hereby agrees to participate in Rite Aid's Fiscal Yeat2008 supplier promotional program in the amount indicated herein. The amount to be paid by the Supplier will be % of Rite Aid's Gross purchases of Supplier's products between March 4, 2007 and March 1, 2008 (but not less than the Minimum Promotional Funding Commitment set forth below), The Funding will be used to develop and co-execute marketing support deemed appropriate by Supplier's Rite Aid Category Manager for promoting and advancing the sales of Supplier's products in Rite Aid stores. The Promotional Funding is in addition to and not in substitution for or ,`-iinution of any negotiated pricing, payment terms, volume incentives, rebates, other contract t- 'chase incentives, funding for retail markdowns, off-shelf displays, Single Check Rebate tu,allment, new items, new store allowances, Health Resource Rite Advice participation, Trade Show participation, Rite Aid Health and Beauty Expos, Rite Aid Foundation Charity Golf Classic, or other programs now existing or that may be developed from time to time. The Supplier's Minimum Promotional Funding Commitment is firm and non-cancelable. Proof of performance will not be provided. Invoicing (for deduction from amounts owing by Rite Aid to Supplier) of the Minimum Promotional Funding Commitment will occur in 4 equal instalments on or about 5/1/07 , 8/1107 , 11/1/07 and 2/1/08 . The Promotional Funding is based onGross purchases between March 4, 2007 and March 1, 2008 . If actual Gross pu below, the additional funding will be billet MINIMUM PROMOTIONAL FUNDING 0 FORECASTED GROSS PURCHASE4: . fisted Gross Purchases set forth nvoicing on or about 3/2/08. &90 9 R,te Aid Vrr_e ?res,der, 1[3:'t: .. .. Lam.."_ ` ?__ ._.__... . _ Page 1 of 1 05 28: De Flt[ 08: 01. FAX 719 975 3722 RITE-AID CAT XCItT Contract # 0'14461 a 6 Rite Aid Promotional Funding AgrBement Fiscal Year 2007 Company Name: INTERNATIONAL WATC1i GROUP !Hieing Address, ATTN: DOUG DIX 666 KENT AVE BROOKLYN My 11206 Contact: Doug Dim Email: Category Manager: NAVES, PAT Vendor a: 30211115 Phone: - Fax..0 716112!6000 INTERNATIONAL WATCH GtxOU (Supplier) herebY agrees to par0ciP11 a m FHte Akr& Racer Ye11142007 supplier promotional program in the amount indicated herein. The arthount to be paid by the Supplier wilt be s.oo % of Rita Aida Groas purchasesof Supplier's producta Between March S. 2006 and Match 3.2007 (but not fsaa than the hllnimum Promotional Funding Cornmitmerd set forth below). The Funding will be used to develop and cc-exticute markalkV support deemed appropriate by Supplier's Afta Aid Category Manager for promoting and advancing the safes of Suppliers products In Rite Aid atones. The 01mmotional Furtdfrhg is in addition to and not in substitution for or diminution of any negotiated pricing, payment terms, volume Incentrvea, wbatp. other con mct purchase incertttves. tunding for retafi markdahrns, cif-shaA displays. SkVe Chock Rebate fulfillment, new items, news" a aNOwancas, Health Resource Rite Advice paniwpation, Trade Show panioipation, Rite Aid Health and Beauty Expos. Rite Aid Foundation Charity Golf Cleasfc, or other programs now existing or that may be developed from time to if Hie. The Supplier's Minimurn Pron-otional Fundirtg Comm1bPto I is firm and non-cancelable. Proof of performance vAl not be provided. Invoicing (for deducfion from amounts owing by Rho Aid to Supplier) of the Minimum Promotional Funding Commitment will occur ;11 4 eauel fnataiments on pr about 5/1/06 . WIMS . t .t'IMS and 2/1/07 . The Promotional Funding is based onGross purchases batwoen March S. 2006 and March 3, 2007 11 acltwl Gross purchaaee exceed the Forecasted Gross Purchases set forth below, the edtWorml funding wlil be billed and deducted in the final Invoicing on or about W4/07. MINtt11USA PROMOTIONAL FUNDING COMMITMeNT: *50.000 FORECASTED Ghh/t-{LOSS tPU HAMS- $1,000,600 ,.,.t?oVN ?'rrti._ rw. ?+tr CitiDditlYl/lr - - .. -Ob T.,.:CA -2? FS? rV .OFD _ 0..•- clvoc - ;4OOZ Xd3 17ra_3SU-! dH udoS : E sao:: if: r_WW http://portal.riteaid.comNINIPLAN/PAGESNICP0027.aspx 8/13/2009 ?x k,?I+ SIP. 16.2009 1:20PM RITE AID N0. 190 P. 1 PFX NO. :2486505456 Nov. 15 2007 03:16PM P1 r V CONTACT PERSON. AMY LOCKWOOD 717- a 7305338 P'H 717-975%%71 FAX E-MAII.=lockwood®rlteidd.toN ar_.. P7C=rT A _ The tmdemigned Supplil7 chat the pmpilm olk Iistod below wlil be ndva &ed is the Single Gbodc 'and ful>yllod ender tl,e teens and oop rie0?t oontaFaed baeid. IA. Prognm Spaoi6a includes shelf slgis ld all stores. rebate offer in rebm dirwWy, rebate oRer on the Rnk AID Web site;, and sales trsallrs reperL The clot of inplpdon into dto drraetorry wall be sequat b binad; provided, however thud we is no cost Sur In4itt w iuW the dkmWry fotpattiWpsnte in Rfl-K AWS' Annual Promotional Funding AgteemeAL Sevtevsteklx ur Adyertorial: requirCB oan?ad-readY attwOrk vn disk. Must contain a minimum of oac Single Check Rebate offer. Pai6*.6oa fen is In additiann to emd not in avbildNCi0A for or diminution of (Zito Aid's Annual Promotimal Funding Ava'Intni. $24.500 FW1 Page 312,500 Half Page &liblailer Checks: re"M aatllrra-caddy eatwerk on di& A processing fit of 1brV-=w o= (5.49) per ft& Check RFbamw check no A SeifMailer chinks we in additirur tv anti not in substitution for or diminow of MAWS Annual lt4plM F-ft f Agrer MW Acpoek Amowet: $ ?ffv a ptaw is due ea ar =c due etirt orWe ndaitioa.t moaiea may Ao dodegr4 by 8178 AID rram ygiprier delieg lie p,oyam m i5a..?eat'd-I r?0oab)Y d tlM uw prooeecdas foe .n1l 1 eseeed duo ?ti Proeeastna Feces A tin of forty-Svc wua (5 451 for u sandard offer; Sily-two cents (5.52) fur a variable olYsr, Cdty sevgp O?Ig (5 57) S Of a specc iN otter per rebate- which prowair g 9halr dude rebate processing, poaw and mw omat service, Pmcming fiats at in addition to and not in tntFaSfityOf for Ot dimroudw of R.itc Aid's Armin( %e$m p Funding Agreameni. B Rebate Offer Manth(s) l& 0:7 :Z-001 G bepo.it Arnoeme Estideere nfnd aeo toderuppon rrability including SolMWmt Am 3 0 6 , 043 A dopoot aaaoaat dmila be w6mw&d 4 swu robllaa end procukke fog. A dgoa it Rae w ar =of toe pleat+1 AddWftd maim MW W dc&wA d by RITE AID 640 supplier arboa der mpgala in tbb amt drat it it eat mo* aatWOCA:d fame a rabaaa aed P9mving Feet will e:ued dit dqwmiL D. SuplMrer AnThod ded I?ia?0.t__ -_I (?T ??•? ?r>Nama_ G?..1 G Street Addtoss:_ /6j rie.r ? rf/. Crry.Sm[G7.ip• /?J?rr! I?.rL ? // ? d f . Vendor Number. 3 6 ?' 1?3 Wephouo Number (Af 00 -P Fax Ntimbwr ( )?f jf r G a $$ oev _ IrMuil nddr tss t a . ?f1,! G .aa•. E. Rebate Often In[b m,t;on List all brands to be includad in your rehm offer. Lin all krM AID rMH COb1V$ awociared w;tb yoWC o>er (&Uwb aepnratc Inge if aeeaftry) AnV A1D will ddosuiae Bass wordio and b ton iptot ou ovided &und Name (s) Arballe is this product lien Toter ItC)w1 s AmvmRt rebatf [or Ibc entire owntb° Allowed Per ?/ yy HOoalebold eql hbll s I?4p s • jLv4rAcr G!'FJU' F. COnatimeoc Parcham Regovaments: G. Product to be Product,, phe"Mphow. UPC# ltwn Code Product UPC* item Code RITE AID CORPORATION Tp? ` SEP. lb. 2009 1:21 PM RITE AID NO. 190 P. 1 FROM FAX NO. :2486505456., Nov. 15 2007 03:17PM P3 2. Supplier agrees to advertise and otherwise participate in a rebate program to be offered in stile Aid owned mid operated storoc, including those doing business as Brooks Phatmaoy and Eckerd Pharmacy following Rite Aid's acquisition of those drugstore chains. 3. Supplier agrees to advcadw and participate in the rebate program for *Aft items described on Exhibit A, attached hereto, and made a part hereof. 4. The Rebate Program will operate on a d or 5 week calendar month sting on a Sunday and ending on a Swm*y basis. The cost of inclusion into the directory will be separately billed; provided, however that there is no cost for inclusion into the directory for participants In RITE AIDS' Annual Promotiioual Funding Agmvinant. 5. Supplier also agrees to pay all rebate amounts, together with a Focussing fee of forty-five cents (SAS) for a standard offer; fifty-two estrus (5.52) for a variable oft fifty-seven cents (S.57) for a special ofl8r per rebate: which, p vicesshtg fee dust! Include rebate pt mwing, postage and a nma service. Supplier agrees Host the processing tee may increase due to a postage i0cmase by the US Post Office. Processing fees are in addition to and not in substit ation for or diminution of Rite Aid's Annual Pruinotional Funding Agreetttent. 6. If SW-Mailer option elected, supplied agrees to pay a processing fee of forty-nine ,fats (SA9) per Side Check Rebates check mailed, Supplier ,gees lilac the processing fee may inn rerrso due to a poectge increase by the US Post Office. Processing foes are in addition to and not in substitutian for or diminution of Rite Aid's Annual Promotional Funding Agreeraom or Slagle Check Rebates offer processing fees. 7, Supplier agrees to pay to RITE AID as a deposit an amount estinnated to cover rebates and processing fm, which deposit is due on or before the start date of the progrm. Additional mottles may be deducted W RM AM from St Wkx during the program in the event thsd it is reasonably anticipated that the rcbatea and processing fees will meadthe deposit_ Supplier >i a-ft, andwrlaes RITE AID to deduct such charges due under this contract from any or all amounts otherwise due to Supplier from RITE AM. Supplier. Any funds deposited under this paragraph in excess of ft total of the rebates and processing fees will be refunded to the 3. Rebate conditions will include, a completed CUSTOMER INFORMATION FORM and a REBATE SUBMISSION POW if mailed, OR a validated ELECTRONIC SUBMISSION. Supplier is responsible for supplying all RITI's AID item codes associated with the rebate offer, which will be utilized to validate customer lvbon subumiasions and compile the sales results report. Supplier agrees to hotter and pay all rebates, and the processing charges therefor, reasonably approved and paid under the program, It is anticipated that final reconciliation for all programs will be reported between 3ba (60) and seventy-five (75) days after tbo end date of the monthly prog=. Supplier will zeocht a final activity report sad bluing reconciliation for each offer included in the program. Mailed rebate ngww s not approved for pzve=ing will be rettined for r boo (90) days In order to provide appropriato customer seMcc (subject to an audit notice under pa Vaph 10 below). 9. Supplier indemnifies and holds harmless RITE AID ft m and agalm any said all suits, Claims. losses, damages or expenses, including reasonable attorneys' fees, that nosy ,ripe from claim by any parson mgatdlugg arty product of Supplier advertised, promoted, sold, delivered or otherwise subject to ft Rebate Program, It is further agreed that RITE AID has no liability to pay any monies on behalf or Supplier, or any other person4 for the level of purchases and/or rebate activity under this prggrom. Any sales and/or rebate projecdow are estimates only, and Supplier relies solely upon the exercise of Its oam business judgement is its determination of whether or not to participate in this program 10, within ninety (9o) days after receiving a final reconciliation for any participating product, Supplier may request in writing an opportun* to inspect and/or aud& program performance. Any and all such inspection or audit shall be at Suppliers sole expense, and must be completed no more than ftw-hundred-sixty (360) days following the final reocndligdou for the product and/or program period involved. H. RiTE, AID shall not be liable for failure to pm form arty services herein when prevented by any cause beyond its reasonable control. 12. This copawx will be governed by the laws of the Commonwealth of Pennsylvania ('without regard m "conflict of laws-). Any suit resardina this cwntroa will be brouebt in the canrm nrth? 9 RITE AID SINGLE CHECK REBATES January 2008 OFFER ANALYSIS REPORT December 30 to January 26 Vendor: International Watch Group Item: John Weitz/Rawlings Watches Program: Jan-08 Offer #: 192 Rebate Value: $5.00 Purchase F 1 SALES INFORMATION DESCRIPTION PROMO PERIOD PRIOR YEAR % CHANGE FROM SALES - UNITS SALES - UNITS PRIOR YEAR John Weitz/Rawlings Watches 3,902 2,792 40% REDEMPTION INFORMATION QUALIFIED REBATES RECEIVED' QUALIFIED PURCHASE UNITS REDEEMED UNITS SOLD REDEMPTION REBATES REQUIREMENT AS A % OF UNIT SALES 380 380 1 380 3,902 10% ACCOUNTING INFORMATION INITIAL DEP PROJECTION TOTAL VENDOR REFUND SERVICE FEE TOTAL COST TO BALANCE (CREDIT) . DEDUCTIONS DEDUCTIONS DOLLARS PAID VENDOR OR DEBIT ($500) $0 ($500.00) $1,900.00 $171.00 $2,071.00 $1,571.00 UNQUALIFIED SAVINGS #OF times REBATE VALUE equals D A S UNQUALIFIED OLL R 0 X $5.00 = - * Rebates Received are the number of submissions received. Rebates received which do not meet the offer requirements are unqualified. All submissions are processed to determine the qualification. The service fee is applicable on all submissions. For Questions or Concerns Call or email Donna Fourlas at 717-761-2633 ext 2225 or dfourlas@riteaid.com ,,k, 6 -1 + 6- 1 u tx ?. a 1 ? t !jail. SL Page 1 of 1 ?, - rn I ' ? N t N C ???RRR ? t0 ?co 10 i m 1 t `I ? 1 Q 8/17/200 http =l 1 port al .riteaid •coniNUN /PLAN; P AGBSNICp0434.aspx e Page 1 of 1 =luk, U1 L'007 4: e.`t3PM HP LRSERJET FAX F- m X I 32 IZ it. a ? i ?f ca L m, 0 cc jig - ' z m d 3 g r m d w ? q 3 y b a O http://portal.riteaid.comNI/VIPLAN/PAGESNICP0029.aspx 8/17/2009 Page I of r P'X 140. :24%505455 I IL I II i ?'o m I : y i 8 8 a 8 a$ g 8 8 1 S s 8 8 a S a 8 8 http :/,!portal.riteaid.comNINIP LAN/PAGESNICP0030.aspx Jct. 29 20e 03:45PM -. Fill Z ? ? s 1a s 0 J P4 N P4 Rit 7/')nno Page 2 of 2 j_p.t p *? or is I 8 3? r I Oct. : B 22O° 4'3: • PM P2 OD r -ti u u u ? Y Y 8$ 8 8 8 8 i y V J i V N ? http://portal.riteaid.comNINIPLAN/PAGESNICP0030.aspx 8/17/2009 Pagel of 2 r Of." FAX :O. :24%50°4`_:6 Oct. 30 2207 Q4:44PM P1 •: +t i I w it'll - - - - - - - - - - - - - - - - - - - - ga ?+ Y Y T+ Y V V Y ?+ Y Y V W w Y? gssggses$s??a?a?s??? r s s I s s? y o ? 9 mom ft.'s $ AIN < r' ar N httP:/;Portal.riteaid.comNlIVIPLAN/PAGESNICP0030.aspx 8/17/2009 i I_ S r fit t= 3 s g Page 2 of 2 PAX WO. : ?4r?55O'-a..b Dc t. kJ '_'307 34:44FM FY2 Alm. ass??? ,i f Z N N N 8/17/2009 http:/iportal.riteaid. comN INIPLAN/PAGESNICP0030. aspx Pagel of 2 FROM : FAX NO. :2486505456 i ILI fill i ill 1 1 E - - - - - - - - - r - - - - - - - r r s Hw Oct. 30 2007 04.45PM P3 t11 iiig 9 AIM ? N • r http://portal.riteaid.comNINIPLAN/PAGESNICP0030.aspx 8/17/2009 V C"' Page 2 of P4 2w, e4.45P" % Oct. so F Ram F Np. :24456 U1 I A_l Ali k1stj I lF?s till 1 ? SUISSIS A?t1P P?GE?NjCPgg3q.aspx ?„nrtai.r?teai?-CO??NIpL ' 11411 M i? i a s sr 9 ?6 N ?i S O w R. O C C b b a C17 O O O y b k J n O O 0 N N J O QO N O z D ? m ?. n z m D c 0 N n vn d c v 3 A m 8 3? z 3 o 0 -4 p rn ri ? a C m T 0 a c 10 z o a 7 m v D . c 3 g m O V m s m ? m a d 9 m ? 3 c 3 ° ? m LT $ ? P p cc 0 o m H 3 m m ? ? m 0 ? o 0 m ? ? n H °m u s ; m 0 P aid 0 7 _ c n n P 7 O ? O ?n C d 8i O S 'a a a?wm ? P 7 b CQ m Q= a .. g 7 0' P ?. g 3 m o $ v n O O rt "S m n d n O O 69 y oa °o C CL 00 md Z O a a 0. d 0 0 m A m y m m n 3 O 0 CD N 7 m Z A m A co t0 D ? a CD CD a us O (n 1 tk 00 D 000 ? U) O m z 1 O Z m G) v_ .A 0 0 7 ? m N i m m M v m N O O 00 W N N 0 CL 0 z w 3 N 2 m M D 0 r D A 0 C 0 0 cp A A O r m a z • C f?D T! D (vi o. tD CD 3 N ? CD FD cD r? (4 0. ? o? 3 n 0 0 (D N ? ? y ('D O ? O Page 1 of 3 15 a -7 A N ? T 1 Q ^a f 1 / b'd 0_ w?? ?i v? w w w a ?+ s99 13x9 99ass8a S s Q Q s I XW4 I arHaaw-i Aw W.ian: 7 OnnS >> Rimm 3 Tmj ??¦ r g ? 1 htt-v:/iportal.riteaid.comNINIPLAN/PAGESNICP0030.aspx 8/17/2005 i Page 2 of 3 1Z f? C it L? 2 d HIM it" 19011 a" ii iii;;;a,ii.. rn T m O N w KHd 13CM3SUI dH Wd80:I a002 22 ROW http:/ /portal.riteaid.coffi/VINIPLAN/PAGESNICP0030.aspx 8/17/2009 Page 3 of 3 maw 22 2006 1:06PM HP LRSERJET FRX ?It 4 Ir^" I?? g S I a 1111H p.3 g m CIA httD://portals'teaid.com/VINIPLAN/PAGESNICP0030.aspx 8/17/200' V ag-e , a t 1 ? a e iL .t 9' 14 E j€ 5 9+ 21 :g a? IA .y a W d6? : S 9n?Z ?'Z Xy3 -A GyN ?(p pG?s',VICpp029 .aspx ? ?NIpLA hrco :l pa?a?•?teaid•G? Page °t Rs shag t4lo g srl Page 2 of 2 Os/sc/sn Val IOZ40 /AZ TIT *78 3711 tt'=-AIS CA? ssT 15%1 M N N N N M M N N M M M N w M N N M M N M M N N N M N N N M M M M ? I gram Igloo N M N N N N N M M M M M N A M M M M N M M M M M N M N M N A N M 9695595 L 9 IV* http://portal.riteaid.comNINIPLAN/PAGESNICP0030.aspx 8/17/2009 Page 1 of n n Z i - s _ Y) a _ '.Y i - ry L N .a 0 :n X rn c X, y Y l w a? ? .n t G Z G r7 .. X a x S n J t .? J C1 -..y O ?,ly .1'? -o 3 N V a = fn m N .Q j N n? O CP ^J ..s O F+ I-r 8/17/20' riteaid.corvvl/VIPLAN/P AGES'VIC'pO029'aspx .portal i b A , S J' s .u z _ A i I a 3 z Z o z c = l yt - z z z x o O n n J OD T o T CH i _ D N V 7 O A a ti 9/17/2009 http../ /portal.riteaid.comNUVIpLAN/P AGESNICP"29.aspx ,S t c Page l of 1 ,D 1 X C A m 3 S it X??b?t F Page 1 of 1 ?•Cr.t FAX N43. :2486505456 May. 23 2W7 :0:37AM ?1 m m 3 - \ Jim M r ? a i 1 a ?. g g ? ; 3 m 1 httP:%•Poctal.riteaid.com/VI/VIPLAN/PAGESNICP0029.aspx 8/17/2009 page I Of I :?ae??p`asb '•f?{ ? 7.its r r Iu y ~ I-S 1,03 LJ 4 ! '- v r i ? 1 SL ?t ;may a s a pip a 8117! UVIPLA?IP AGE$1?ICP0029.a?px httn:i!portal•riteaid.CO N y- T 13 1007 4l? : 3e? ss 10 ?41 3 ? i i, tilt sa o ? a Page 1 of 1 r4'< rqr_;, :gas 456 3 H f ? a ' r 1 3 I q ?9 v a i -J http:/;'portal.riteaid.com/VI/VIPLAN/PAGESNICP0029.aspx ay, '23 22@7 :0:3aPM P2 5 O m m n ¢s r ? co fn « cTi' p4? m A V _o Q 8/17/2009 Page 1 of 1 a a R INJ ?i I S I ' 1 1 R p ? I 3 gi ( i. I - S a3 f f 1 N \ ?i: t Z i t l I?: all j http:/i portal.riteaid.comNINIPLAN/PAGESNICP0029.aspx "lay. 23 2ae7 "10:391 P3 ? J c lag 3 m S 40 C17 OF Y ? p S 8/17/2009 YSil-E,'9_ 7 1:a;c-0 From.;?ITEAJJ) 7 1 79 75 3722 T0:9i71BE23.5POO ? P.2"4 At.nrd VI COO RECALL DISPOSMON FORM Pµle l to CA7IGUAV NAN.IC[M: 14 Ya.ti 0(NC .`IA.VlY a!anaami! W 6 fur VCfLIt(M \1i ?tR£A lf19a SA I IS 0Q.'ffA 'r: Pt I i lUNK i4 01)-64-ttae 2 ru 11"J36YM? C VlAtlt acA x a l vt-:u x lwml r-dHut'• m" Mira-M Vantr bA. irk f3to0n' SN JIr (purl tit\'It .?didrery ',•..• A7 KI L'ba;tae;n.aNu1 S LZ i'c:nivr P a. aitt ? ? (a Sea) a sf r I J'ae AliKtl'sat)ue f'bor? Vail A S-,AtCan FwA Caw CaN(mm" prir4.te tm peel DC it) 19 A %l 60 ,q 11 11 11,1 l.CCA n10t43 ICS.c Ia ao%ctad DV%) "Any mb" upt.oa mvm bo rppmrod by vtG VP 01 lawritry murup- m m A?rAUVAI. situ 0" Salna(c ,?rmn iT.d a.tlar Of Wider hefrrd Carrkt Ir lri4At It V 'Da7NWP !T SNY narw - Ad !MI Addy N rjwft? Zip COMA" row." l l i u FPd p N lbtp Beck to reader dYp m O- k eAanura4 v-hv aipaae to avow returned prt4m from can rodamoun coow wilbf 70 days d*WMWM $ vw4w tonbaaab ho o pateso nwobrom sf 120 drys io Adfy -team, pwtow, iavoko bed jAj pawl. Tfr prover ? ptb r teal Ar ISO dbyl f . :-4 Z 'u. ,? ? * w W r. yne. )ipnt un y.a in"ba` i rarJa Aar?l. r /, f - f ni.r ptwlaee X x Dole X O Canpry Maa.aar r w 1"I Deie V Ste Ar#Ai" f 4X?LICL I, Del. ? t pr+w ? V? l a aawary Myra _ Z_ New T= A9041 alfrRATIVt Wt ONLY An%md8*6 Aastld ?? A.MW # Nemr WC go / lyla Daa ...-a" tr god Dew i rirr Lr1JCKJL I rriA Final Timex Disposition Agreement 4/18/07 The following is an agreement between Rite Aid Stores and the International Watch Group regarding the final disposition support far the discontinued Timex program that was replaced by the International Watch Group as of April I e, 2007. Deductions will be made against the International Watch company by the following schedule supporting the final disposition of Timex watches. June 1, 2007--$350,000 September 1, 2007-5350,000 December 1, 20074350,000 March 1, 2008-$350,000 For a total of $1,400,000 The actual inventory of watches becomes the sole responsibility of Rite Aid. In addition: The current hold of $250,000 against the International Watch Company will be released immediately. This is the total agreement. P•2 Signed, Do Dix C Mark Coleman Executive Vice President, IWG Category Manager, Rite Aid P. r?,In ETA X 17 15:21 frOm:RITEALD 7179753722 Tol9171 86235QW P,414 Re?Esr4 1!2,2016 RECALL DISPOSITION FORM P?ge1411 Out or OI 1 Lm.- R UPC 4 U [fl Sl DC 3towt 332977 0.014E20051 TIMEX MEN LTH SLOK-20051 $1920 332989 048143.13131 TIMEX LOS RSN GREY-53131 $11 20 333514 - o4314313041 TIMEX MEN RSN 9LCK 53042 12.00 333515 04814153052 TIMEX LOS RSN BLCK 53052 $1200 333510 94814153032 TIMEx MEN RSN BLCK 53032 $12.00 388008 9481414389'2 TIMEX MEN EXPN-43892 519.20 388253 - 94814837291 TMX LDS MTL 00037292121884 $21.80 94814121864 388274 7530421077 'TIMEX MEN RSN EXPO.8a801 319.20 784042 84814321872 'TIMEX LDS MT; 28417121872 $19.20 760043 9411411.4241 TIMEX LOS LTH BRWN-15242 $19.25 78004.1 - 04814826411 TIMEX LOS LTH 264111219! 2 18.80 780040 0421417'7511 TIMEX MEN RSN ATI,S-77511 19.20 )00034 04814851021 TIMEX MN IRNM 51021/53351 21.80 780058 9414871677 TIMEX MEN MTL GOLD-78477 $16,80 760067 94814951012 TIMEX LDS IRNM 51012JS3401 621.80 3000249 043141d31S1 TMX BLK IRNM 777411531S1 $21.00 4718192 0491417147 TIMEX MEN MTL SLUR-78587 10.80 4T18W3 " 04914877317 TIMEX YTH AILS-77517 21.80 4720398 - 04114411902 TMX LDS MTL5LV 28321121902 19.20 4720418 - 0491483423S TIMEX LOS MTL GLD-01017 21.90 4720425. D/Itda433l1 TIIAEX MEN LTH EXP-43391 '26.40 4720438 • 0481482!041 TIMEX LDS MTL 21882128041 $19.11 4720512 84214811342 TIMEX MEN EXP 77761148081 19.18 4720624 6414W317 TIMEX MEN RSN GRN-41711 $10 80 4722868. 04314443101 TIMEX LTH EXP 43101147781 $23.98 4722470 04214873"1 TIMEX MEN RSN EXP-73801 $1920 Venda Cantut .311 L/o MMFi?nte SlprWre .- I - r o: Z) C.-r1 HP LRSERJE*T FAX MICR-09-2W7 15:20 From:RITEAIO P. 3 7179753722 T c : 9171862"..if-,o.+g P.3-4 iMVHodIl23M RECALL DISPOSITION FORM Palo lof2 U 3043?7 - ant414 "3 r+M MC RESN PORT 19. 1140 742 3 U814SM61 T!%09X YTH R,% OLU@•TOJ01 12.00 MOM 14114614"" T,VEX YTH rc STAt749d1 0.8D 300101 141141 TMEX YTH ELSTC STRP 491181 .do ?. 77fi 1 30310? 1401!yko 1 T*ASX MN$ OLK NYLON 18561 16. 1(7141'1+4411 3061 141412.11t1 TIMEX MN$ EASY READ 23815 +92 1904 $01486"51 MF-X R Las LTH t3LK 313-00 >./1?noa2nt 121003 - 314814 HIM TIM X LOS Ow CH 614.73 321406 1411130t211 T1 X CAM 8 Dl" 2W tO.T 321007 413140!11 -n X gA! L03 MTL SILV 13 321WO 1 1 1 CAA MTL IM 01309 321 o00 1161 TIMEX AM 1AEN A4TL 81 9011 40 321010 N f14311TI TMNEX AC MEN M SLVS3S71 8.A0 1 1 o161 T A4EX n Los Tt 13IW72 r. 18.40 12012 414 Is TW" ACO 608 LTHR SAWN 4o 32012 - 1410 129 -nma Ago 1MEN hm ao?o $9.40 321014 0161#00. TMEX ACO -03 W% GoLp .4 7'015 4401 TIMEX 1440 WN SPT $3591 12.00 42141133917 321010 01114"3411 TVM" 1440 NO3 SPT 083012 7)12.00 32+011 14/1406001 TI X 1440N03 PT t 12.00 310 011 4140217 TIMEX s am 13 332W - 04 46 9311 T1111X LDa 111 KZXl . 19.2a 3325 - 04114171"1 TlWX YTN Ft3V OLLx 1 9, 333547 - ON 14U" ;l TI X YtM N MekffM Soso 64- 0481 MUS13 T1 0S A/16 53822 1-80 337820 .. oft 14s46u1 TAAtEX nAeN MT EXS 1 28.40 i o" l I Lbm LDS T 1 id •25'.4 4481412/48 T LWH 20481 KWL 1 ?0 3=4 T$&X N LT119lVR 1 1190 3321982 - 1 TOAU LOS VTL 0".200 WAG 33 t4020021 MNEX 11/TL QQLD-Mi $19-210 33 OH1412A431 TI LDS WrLD 81 315 20 04$(4130142 , 6014020471 TIMEX MAN UTL 20471 to 31 0411440401/ TIMEX MEN LTH DI10- 1 l III-IQ 312870 4411441001 Tt MEk MTL 111-20 3 71 14141360'1 TIMEX ?Qj LT1t 1M'FMTt tt.1 332!72 44814119161 TI T1+ atcx.701o1 its-00 33mrT -- 141 T! X Los LTN BAVVN-201 16.00 332806 044,4128161 TIAAX LDS 64TL SLVR•3DOS1 114.20 040110 { TlU" MEN LT 4A0vv1??0401 14.10 Veda Carxl -4604/ win Nw f,y.rr. J ? W X11 000108 Inventory Reduction Disposition Summary Mes5avje. Press FINISH to complete Dispo,iti??,n Page I u IR Nbr : 4403 IR Date: 411912007 Cat Mngr. CATNIAC MARK COLEMAN Vendor : 36295 INTERNATIONAL WATCH GROUP Reason: DISCONTINUED, ALL PRODUCT TO SALVAGE Freight is non-deductible from verder. Disposition Cost !s non-deductible from vendor. Processing cost is non-deductible from vendor Disposst-on Processing cost set at 6"0 oer PIECE Total Processing cost equal S 162.29 and Total Disposition cost equal $2.704.80 Disposition is not billable Disposition created for. DC 10 RA Number salvage DC 3! Disposition requires Senior Management Approval. Email was sent to approver(s). Disposition cannot be approved. Items in error. FINISH http:,'%portal. riteaid.coim'wm'wmeorpiesemgmt/screens/WMI00008.aspx?IRnum=4403&AprvIReq=True 4/190007 Page 1 O? 2 O U- ti O O v r 13 P 01- V 4 Q O a ul w d CJ } ) t hi z x o w ?y Q V ? W Z J m 1 .a 7 v` w =t " ` 171 U 4 Y to C '? 4 LL ,m N ? L 72 C N L r `p ttv 6s w E. o d E m ? o :9 ?r +n 4 d `v b o- a n 4 r ti .x ski Si ? E d O Q U r y. C S G g/1 4 4 g tcs o ? ? U C.7 .4 Q in d G m Y G ? N GESIV]CP002`).aspX 11 COm ea?a.NI! V1PLE''NIP A http:lrportal.r?t .. , r. . i,r" l_":]LI JG YHA ?* 3(ags Final Timex Disposition Agreement 4/ 19, 07, -1110 following is an agreement between Rite Aid Stores and the Imernational Watch Greup regarding the final disposition support for the discontinued Timex program that was replaced by the International Watch Group as of April 18'", 2007. Deductions will be made against the International Watch company by the following schedule supporting the final disposition of Timex watches. June 1, 2007--$350,000 September 1, 2007-S350,000 December 1, 2007--5350,000 March 1, 2008-$350,000 For a total of $1.400,000 The actual inventory of watches becomes the sole responsibility of Rite Ai In addition: The current hold of 5250,000 against the In%ennational Watch Company will be released immediately. Page 2 of 2 p.2 This is the total agreement. Signed, iJoa 9 I?ix Mark Coleman Rxecutivc Vice President, IWG Category Manager, Rite Aid f ,1 817/2009 bttp://portal.riteaid.com/VI/VIPLAN/PAGESNICP0029.aspx ? L [n r W a' r :r G G F U ` r a ti S m '!77 c 0 u W }rn _ U r r 1U) ? sc w 75? a ' 7 C7 Lj i x ? 4 Q O ? v 1 CL to ;Q ? t C3 m 0O Page 1 o" p G N tC pi O y C m. .b m V- N iv v d ys U 1' S ar 4 y2 ?It. 1-4 s a ? c c, F ¢ r gt17 a Q a w 0 U O W ,U C r (y E us a 1 r ? m i G n?el 'i l 1 % } O t? to 1 G ?p G 2 E47 Y c u- •? G'ES rV 1CP4??9'asp" Titeaid.eomN 11V lPLA1' ?oo ? http:,'iportal. r • v* 3{,Ag5 Final Timex Disposition Agreement 41l 8, 07 TI--x following is an agreement betNveen Rite Aid Stares and the International Watch Group regarding the final disposition support for the discon inued Timex .program that was replaced by the International Watch Group as of April 18°', 21007. Deductions will be made against the internatiortal Watch company by the following schedule supporting the final disposition of Timex watches. For a total of S1,400,000 Tbc actual inventory of -watches becomes the sole responsibility of Rite Aid- June 1, 2007--S350,000 Septerr:ber 1, 2007-S350,000 December 1, 2007-$350,000 March 1, 2008--5350,000 In addition: -Mc current hold of $250,000 against the In•ernational Watch Company will be released immediately. Page 2 of 2 p.2 This is the total agreernent, Signed, A DougDix Mark CoLe-an Executive Vice President, IWO Category Manager, Rite Aid r i v 8/17/2009 http://portal.riteaid.comNINIPLAN/PAGES/VICP0029.aspx page 1 of 2 p G r U R o `fl u S a _ cc N s[ (? S c_ a w sz C7. ? m s3 C • c" O ? ? x GJ a+ ai r 'y . 4 K' ? P a c 1 O (l' ? A? 4 g j ~ y ?ie P ?' 4 p a Ci 0 2 N c h ?? c w c C Q - 0. 6 ? rSi c'S 3 ¢ ?' a a r- co t7 U) ? N V S a C, yQ CC) s• ?yy p en SS++ Z Z T '-` -sD @ z x w a ? w g ¢ d ;_ $ a Z o Q T p 1- J j Z U- A rn Z St © co U p 3 m a a ,? t N N 07 Z a a s F z d ` G a • c < ' r n c a C.. u T cr- j Lij • r 8/ 17/200! N I tV IP LAN /P AGES/V ICP0029 -aspx ht tp : / /portal .riteai d. coTn f a ?* 3(?ag5 Final Timex Disposition Agreement 4; 18.0; T'hc folloxing is an agre ncvt bctvi= Rite Aid Stores and the International Watch Graup regarding the final disposition support for the discontinued Timex program that was replaced by the International Watch Group w of April 1 S'h, 2007. Deductions wiIJ be made against the International Watch company by the following schedule supporting the final disposition of Timex watches. June 1, 2007--5350,000 September 1, 2007-$350,000 December 1, 2007-.5350,000 March 1, 2008--5350,000 For a total of 51,400,000 The actual inventory of watches becomes the sole responsibility of Rite Aid. In addition: The current hold of $250,000 against the In+ernational Watch Company will be relerased immediately. This is the total agreement. Signed, ----- - Z-11 Don 4I}ix Executive Vice President, IWO +r http://portal.riteaid.comNl!V IPLAN/PAGES[VICP0029.aspx Page 2 of . P•2 Mark Coleman Category Manager, Rite Aid 8/17/2009 ?.? b ? ?" ? ?r? , A V#36295 International Watch Group Outstanding Balance as of 11102/09 Desch bon Document Nbr Document Date Due Date Gross Amount Cash Discount Short-/ Price Net Balance, Invoice 3408 10/15/2007 11/23/2007 $ 19,778.40 $ - $ 4,944.00 $ 14,834.40 Invoice 3338 10/4/2007 12/28/2007 $ 659.40 $ 6.59 $ $ 659.40 Invoice 3496 11/2812007 12/31/2007 $ 659.40 $ $ - $ 659.40 Invoice 3498 11/28/2007 12/31/2007 $ 1,979.28 $ $ $ 1,979.28 Invoice 3503 11/2912007 12/31/2007 $ 659.40 $ $ - $ 659.40 Invoice 3516 1216/2007 1/7/2008 $ 659.40 $ $ $ 659.40 Invoice 3500 11/28/2007 111112008 $ 4,320.00 $ - $ $ 4,320.00 Invoice 3499 11/28/2007 1/11/2008 $ 2,160.00 $ $ $ 2,160.00 Invoice 3478 11/20/2007 1/11/2008 $ 720.00 $ $ - $ 720.00 Invoice 3459 11/1212007 1/14/2008 $ 494.40 $ $ $ 494.40 Invoice 3549 12/18/2007 1/28/2008 $ 120.00 $ $ 120.00 Invoice 3341A 1/17/2008 2/1/2008 $ 6,237.60 $ 55.18 (720.00) $ 5,517.60 Invoice 3594 1/15/2008 2/14/2008 $ 1,978.20 $ $ 1,978.20 Invoice 3598 1/15/2008 2/19/2008 $ 720.00 $ M $ 720.00 Invoice 3599 1/15/2008 2/19/2008 $ 1,440.00 $ $ 1,440.00 Invoice 3342A 1/17/2008 2/21/2008 $ 3,600.00 $ $ 2,400.00 B/E Conversion Dis la Fundin 0186079 3/8/2008 3/10/2008 $ 120,000.00 $ $ 120 000.00 Advertising Allowances 0225454 3/13/2008 3/13/2008 $ 15,875.58 $ $ $ 15,875.58 Advertising Allowances 0226061 3/13/2008 3/13/2008 $ 1,771.31 $ - $ $ 1,771.31 Vendor Compliance Charge 3629500034 2/1/2008 3/13/2008 $ 560.00 $ $ $ 560.00 Invoice 4031 2/7/2008 3/17/2008 $ 21,219.60 $ $ 659.40 $ 20,560.20 Invoice 4032 2/12/2008 3/24/2008 $ 9,203.40 $ $ 1,483.20 $ 7,720.20 Freight Charges 0030358868 3/24/2008 3/24/2008 $ 25.50 $ - $ $ 25.50 USI Unsaleables D424284020 3/21/2008 3/24/2008 $ 82.34 $ $ $ 82.34 US[ Unsaleables D425233783 3/21/2008 3/24/2008 $ 3,756.40 $ $ $ 3,756.40 USI Unsaleables D426371790 3/21/2008 3/24/2008 $ 1,696.20 $ $ $ 1,696.20 USI Unsaleables D427486958 3/21/2008 3/24/2008 $ 4,918.63 $ $ $ 4,918.63 Invoice 4036 12/6/2007 3/24/2008 $ 988.80 $ $ $ 988.80 Invoice 4037 2/1912008 3/24/2008 $ 2,472.00 $ $ $ 2,472.00 Invoice 4034 1216/2007 3/242008 $ 988.80 $ $ $ 988.80 Recall Inv 0189993 3/8/2008 3272008 $ 350,000.00 $ $ $ 350,000.00 Invoice 4038 2/192008 3/312008 $ 15,677.40 $ $ $ 15,677.40 Vendor Compliance Charge 3629500035 3/1/2008 4/142008 $ 1,430.00 $ $ - $ 1,430.00 Invoice 4058 3/7/2008 4/14/2008 $ 12,831.60 $ $ $ 12,831.60 Invoice 4055 3/72008 4/142008 $ 3,028.20 $ $ - $ 3,028.20 Freight Charges 6715546723 4/16/2008 4/162008 $ 83.21 $ $ $ 83.21 Invoice 3470 11/19/2007 4/172008 $ 10,107.60 $ $ 4,468.80 $ 5,638.80 Invoice 3545 12/182007 4/172008 $ 6,480.00 $ $ 2,160.00 $ 4,320.00 Freight Charges 1963600524 4/172008 4/172008 3 0 $ $ $ 30.72 Invoice 4056 3/7/2008 4/17/2008 9 $ $ $ 2,429.40 Invoice 4057 3/72008 4/17/2008 $ $ $ 4,407.00 Invoice 4061 3/7/2008 4/17/2008 M $ $ $ 659.40 Invoice 4060 3n12008 4/212008 $ $ 60.60 $ 4,780.80 USI Unsaleables D436907020 4/18/2008 4/212008 $ $ $ 249.13 USI Unsaleables D437784783 4/18/2008 421/2008 (195 2 1 64) $ $ $ 19,521.64 USI Unsaleables D438902790 4/18/2008 421/2008 $ 550.25 $ $ $ 550.25 USI Unsaleables D439975958 4/18/2008 4/21/2008 $ 675.21 $ $ $ 675.21 Advertising Allowances 0200863 5132008 5/5/2008 $ 4,500.00 $ $ $ 4,500.00 Invoice 4084 4/3/2008 5/122008 $ 15,558.00 $ $ $ 15 558.00 Freight Charges 0030371751 5/13/2008 51132008 $ 33.74 $ $ $ 33.74 Vendor Compliance Charge 3629500036 4/1/2008 5/132008 $ 1,220.00 $ - $ $ 1,220.00 Vendor Compliance Charge 3629500037 4/1/2008 5/132008 $ 1,520.00 $ $ $ 1,520.00 Invoice 4078 4/32008 5/14/2008 $ 494.40 $ $ $ 494.40 Invoice 4079 4/32008 5/142008 $ 2,143.20 $ $ $ 2,143.20 Invoice 4077 4/32008 5/152008 $ 3,791.40 $ $ - $ 3,791.40 Invoice 4081 4/3/2008 5/152008 $ 14,004.00 $ $ $ 14,004.00 Invoice 4082 4/3/2008 5/15/2008 $ 3,132.00 $ $ $ 3,132.00 Invoice 4093 4/15/2008 5/162008 $ 3,627.00 $ $ $ 3,627.00 Invoice 4083 4/32008 5/16/2008 $ 8,485.2 0 $ $ $ 8,485.20 Invoice 4080 4/32008 5116/200 8 $ 2,533.2 0 $ $ $ 2,533.20 Cash Discount 3341A 1117/200 8 5/19/200 8 $ 55.1 8 $ $ $ 55.18 Invoice 4095 4/15200 8 5119/200 8 $ 2,099.4 0 $ $ $ 2,099.40 Invoice 4094 4/15/200 8 5/19200 8 $ 1,440.0 0 $ $ $ 1,440.00 Invoice 4134 4/17/200 8 522200 8 $ 10,551.0 0 $ $ $ 10,551.00 Invoice 4096 4/15/200 8 5/22/200 8 $ 17,266.8 0 $ $ $ 17,266.80 USI Unsaleables D450129020 5/231200 8 5/27200 8 $ 3,365.18 $ $ $ 3,365.18 USI Unsaleables D451114783 5/23/200 8 5/27200 8 $ 43,758.69 $ $ $ 43,758.69 410 , r USI Unsaleables D515678790 11/21/200 8 11/24/200 8 $ 1,714.95 $ $ $ 1,714.95 USI Unsaleables D516786958 11/21/200 8 11/24/200 8 $ 26,063.54 $ $ $ 26,063.54 Freight Charges 9636070208 11171200 8 12/2/200 8 $ 27.43 $ $ $ 27.43 Freight Charges 9636070185 1117/2008 12/18/2008 $ 7.84 $ $ $ 7.84 USI Unsaleables D523107783 12/19/2008 12/22/2008 $ 16,252.80 $ $ $ 16 252.80 USI Unsaleables D524242790 12/19/2008 12/22/2008 $ 2,125.09 $ $ $ 2,125.09 USI Unsaleables D525351958 12/19/2008 12/22/2008 $ 726.52 $ $ $ 726.52 USI Unsaleables D531354783 1/16/2009 1/19/2009 $ 746.73 $ $ $ 746.73 USI Unsaleables D532410790 1/16/2009 1/19/2009 $ 2,193.19 $ $ $ 2,193.19 USI Unsaleables D533512958 1/16/2009 111912009 $ 9,852.03 $ $ $ 9,852.03 Freight Charges 9636078327 12/15/2008 1128/2009 $ 20.08 $ $ $ 20.08 Advertising Allowances 0261598 2/4/2009 2/4/2009 $ 4,500.00 $ $ - $ 4,500.00 USI Unsaleables D539452783 2/20/2009 2/23/2009 $ 13,829.73 $ $ $ 13,829.73 US! Unsaleables D540604790 2/20/2009 2/23/2009 $ 3,502.49 $ $ - $ 3,502.49 USI Unsaleables D541755958 2/20/2009 2/23/2009 $ 1,919.82 $ $ $ 1,919.82 Freight Charges 9636090046 1/26/2009 2/25/2009 $ 46.38 $ $ $ 46.38 Freight Charges 9636094884 2/9/2009 3/5/2009 $ 15.39 $ $ $ 15.39 Freight Charges 62991301 215/2009 3/92009 $ 193.49 $ $ $ 193.49 US[ Unsaleables D546976783 320/2009 323/2009 $ 561.94 $ $ $ 561.94 ,y4 , E Description Document Nbr' Document Date Due Dale Gross Amount; Cash Discount Short / Price Net Balance' USI Unsaleables D548024790 3/20/2009 3/23/2009 $ 3,296.68 $ $ $ 3,296.68 USI Unsaleables D549126958 3/20/2009 3/23/2009 $ (14,176.29 $ $ $ 14,176.29 Freight Charges 6719681706 3/2/2009 3/24/2009 $ 172.84 $ $ $ 172.84 Frei ht Charges 030426475 3/3/2009 3/31/2009 $ 8.36 $ $ $ 8.36 Freight Charges 9636103722 3/16/2009 4/712009 $ 35.73 $ $ $ 35.73 USI Unsaleables D554083783 4/1712009 4/20/2009 $ 372.92 $ $ $ 372.92 USI Unsaleables D555149790 4/17/2009 4/20/2009 $ 2,276.80 $ $ $ 2,276.80 USI Unsaleables D556264958 4/17/2009 4/20/2009 $ 262.24 $ $ - $ 262.24 Freight Charges 9636110225 4/8/2009 5/612009 $ 32.51 $ - $ - $ 32.51 Freight Charges 6710392765 417/2009 5/13/2009 $ 73.63 $ $ $ 73.63 USI Unsaleables D561711783 5/22/2009 5/26/2009 $ 2,581.06 $ $ $ 2,581.06 USI Unsaleables D562801790 5/22/2009 5/2612009 $ 1,171.35 $ $ - $ 1,171.35 US[ Unsaleables D563908958 5/22/2009 5/26/2009 $ 7,810.41 $ $ $ 7,810.41 Freight Charges 9636115350 5/4/2009 5128/2009 $ 22.57 $ $ - $ 22.57 USI Unsaleables D569637783 6/19/2009 6/22/2009 $ 2,007.12 $ $ - $ 2,007.12 USI Unsaleables D570681790 6/19/2009 6/22/2009 $ 349.55 $ $ - $ 349.55 USI Unsaleables D571752958 6/19/2009 6/22/2009 $ 2,429.36 $ $ $ 2,429.36 Frei ht Char es 7730140433 6/8/2009 7/1/2009 $ 21.68 $ $ $ 21.68 Freight Charges 730145834 7/1/2009 7/14/200 $ 8.36 $ $ $ 8.36 USI Unsaleables D576837783 7/17/2009 7/20/2009 $ 173.40 $ $ $ 173.40 USI Unsaleables D577843790 7/17/2009 7/20/2009 $ 366.87 $ $ $ 366.87 USI Unsaleables D578871958 7/17/2009 7/20/2009 $ 116.28 $ $ $ 116.28 Freight Charges 9636131596 7/212009 7/29/2009 $ 5.18 $ $ $ 5.18 Freight Charges 6710179942 6/17/2009 8/6/2009 $ 74.59 $ $ $ 74.59 Freight Charges 8159003045 7/17/2009 8/17/2009 $ 12.54 $ $ $ 12.54 USI Unsaleables D583990783 8/21/2009 8124/2009 $ 104.01 $ $ $ 104.01 USI Unsaleables D585033790 8/21/2009 8/24/2009 $ 291.60 $ $ $ 291.60 USI Unsaleables D586075958 8/21/2009 8/24/2009 $ 131.19 $ $ $ 131.19 Freight Charges 9363136850 7/29/2009 8/27/200 $ 5.53 $ $ $ 5.53 USI Unsaleables D591160783 9/18/2009 9/21/200 $ 3,435.24 $ $ $ 3,435.24 USI Unsaleables D592182790 9/18/2009 9/21/2009 $ 100.24 $ $ $ 100.24 USI Unsaleables D593181958 9/18/2009 9121/2009 $ 79.59 $ $ $ 79.59 Freight Charges 9636143636 9/1/2009 10f7/2009 $ 4.40 $ $ $ 4.40 USI Unsaleables D597836783 10/1612009 10/19/2009 $ 582.82 $ $ $ 582.82 US[ Unsaleables D598804790 10/16/2009 10/19/2009 $ 53.90 $ $ $ 53.90 USI Unsaleables D599809958 10116/2009 10/19/2009 $ 4,656.63 $ $ - $ 4,656.63 Freight Charges 9636149232 10/5/2009 10/29/2009 $ 21.70 $ $ $ 21.70 $ (652,292.37) $ (290.38) $ (16,355.40) $ (668,647.77) ¢.A , .., VERIFICATION Ron Chima signs this Verification on behalf of Rite Aid Hdqtrs. Corp., and does hereby verify that the foregoing Complaint was prepared with the assistance and advice of counsel, and in reliance upon counsel's advice; that the document, subject to inadvertent or undiscovered errors, is based upon and therefore limited by the records and information still in existence, presently recollected and thus far discovered in preparation of this document; and that subject to the limitations set forth herein, the statements contained in this document are true and correct to the best of his knowledge, information and belief. The language of the foregoing document is that of counsel.. It is understood that the statements herein are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unworn falsification to authorities. R014 CH Date: November 4, 2009 l!l? 2009 NOV -4 Ff 1 : Q 8 Ae??r,r- RI"-- )- 33oo(-,