RITE AID CORP
AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT
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<DESCRIPTION>AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT
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<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">AMENDMENT
NO. 2 TO<br> EMPLOYMENT AGREEMENT</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">THIS AMENDMENT NO. 2 TO
EMPLOYMENT AGREEMENT ("Amendment No. 2"), by
and between Rite Aid Corporation, a Delaware Corporation (the
"Company") and Mary Sammons
("Executive") is entered into this 30th day
of September, 2003 (the "Effective
Date").</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">WHEREAS, Executive and Company have
previously entered into that certain Employment Agreement dated as of
December 5, 1999, as supplemented by side letter dated April 5, 2000
between counsel and as amended by Amendment No. 1 dated May 7, 2001
(collectively, the "Employment Agreement");
and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">WHEREAS, on June 25, 2003 Executive was promoted to the
position of President and Chief Executive Officer and the parties
desire to amend the Employment Agreement to reflect the change in
Executive's position and duties, compensation and other
benefits;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the
Company and Executive hereby agree as follows:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">1.&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-weight: normal; font-style: italic">Position and Duties</font>.&nbsp;&nbsp;&nbsp;&nbsp;Any reference in the
Employment Agreement to "President and Chief Operating
Officer" shall be changed to "President and
Chief Executive Officer". During the Employment Period,
the Executive shall serve as President and Chief Executive Officer of
the Company, with such duties and responsibilities as are customarily
assigned to such position, and such other duties and responsibilities
appropriate to such office as may from time to time be assigned to her
by the Board of Directors of the Company
("Board"). Executive shall report directly to
the Board.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">2.&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-weight: normal; font-style: italic">Incentive Compensation</font>.&nbsp;&nbsp;&nbsp;&nbsp;The
Executive's Annual Target Bonus shall equal at least 100%
of the Annual Base Salary in effect for the Executive at the beginning
of such fiscal year.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">3.&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-weight: normal; font-style: italic">Other Benefits</font>.&nbsp;&nbsp;&nbsp;&nbsp;During
the Employment Period, the Company shall provide Executive with use of
Company-owned aircraft for business and personal travel and shall
provide term life insurance covering the Executive's life and
long term disability insurance, in each case in a face amount equal to
$3,000,000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">4.&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-weight: normal; font-style: italic">Obligations of the Company upon
Termination</font>.&nbsp;&nbsp;&nbsp;&nbsp;Following any termination for any reason (other
than Cause) of the Executive's employment with the Company, the
Company shall make an annual payment to Executive following termination
of employment and continuing for life (and the life of her spouse)
equal to the cost to the Executive of purchasing medical coverage
substantially comparable in all material respects to the coverage
provided by the Company to its senior executives (and their spouses and
dependents) immediately prior to such termination, excepting payments
for such periods that the Company provides such coverage pursuant to
Sections 5(a) or 5(b) of the Employment Agreement. If the
Executive's employment is terminated by Executive (other than for
Good Reason) during the Employment Period, the entire Option shall
remain vested and exercisable throughout the remainder of its ten-year
term and any other outstanding stock option that has vested and become
exercisable prior to the Date of Termination shall remain vested and
exercisable for a period of ninety (90) days following the Date of
Termination, at the end of which period such option shall terminate;
provided, however, if the Date of Termination occurs after Executive
turns age 60, all vested stock options shall similarly remain
exercisable for the remainder of their stated term, without regard to
any early termination provisions or other terms and conditions
otherwise applicable to such options.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">5.&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-weight: normal; font-style: italic">Capitalized
Terms</font>.&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Employment
Agreement.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">6.&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-weight: normal; font-style: italic">Employment Agreement to Remain in
Effect</font>.&nbsp;&nbsp;&nbsp;&nbsp;Except as modified by this Amendment No. 2, the
Employment Agreement shall remain in full force and effect in
accordance with its terms. In the event of a conflict between the
provisions of this Amendment No. 2 and the Employment Agreement, this
Amendment No. 2 shall be controlling.</p>
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<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">IN WITNESS WHEREOF, Executive has hereunto
set Executive's hand and, pursuant to due authorization, the
Company has caused this Amendment No. 2 to be executed in its name and
on its behalf, all as of the date and year first above written.</p>
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<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 12" valign="top" align="left">RITE AID CORPORATION</td>
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<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 24" valign="top" align="left">By:&nbsp;&nbsp;&nbsp;______________________________<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert
B. Sari<br> Its: Senior Vice President</td>
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<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 12" valign="top" align="left">________________________________<br>Mary
Sammons</td>
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