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| RAD > SEC Filings for RAD > Form 8-K on 3-Oct-2012 | All Recent SEC Filings |
3-Oct-2012
Entry into a Material Definitive Agreement
On October 1, 2012, Rite Aid Corporation (the "Company") and McKesson Corporation ("McKesson") entered into a Sixth Amendment (the "Sixth Amendment") to that certain Supply Agreement, dated December 22, 2003 (as amended, the "Agreement"), between the Company and McKesson for the supply by McKesson to the Company of prescription drugs and other health and beauty care products and the provision of related services.
The Agreement generally requires the Company to purchase from McKesson all of the Company's requirements for brand name prescription drugs, as well as some generic prescription drugs, for Company purchases for warehouse delivery. The Agreement also generally requires the Company to purchase from McKesson all of the Company's requirements for prescription drugs for Company purchases for direct store delivery (i.e., that are not supplied to the Company's stores from the Company's warehouses).
Pursuant to the Sixth Amendment, the term of the Agreement has been extended to March 31, 2016, subject to earlier termination under certain circumstances. The Sixth Amendment also amends certain pricing and related terms. Pricing of prescription drugs under the Agreement, as amended by the Sixth Amendment, continues to be generally based on published wholesale acquisition cost, less certain discounts, rebates and other adjustments that vary with the type of products being purchased and services provided.
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