AGENDA

1. Welcome ToRite Aid Corporation Vendor SeminarNYK Logistics Session June 17, 2009 (Hong Kong) & June 18, 2009 (Shenzhen)

2. AGENDA • Introduction of NYK Group & NYK Logistics • NYK Logistics Role and Responsibilities • Standard Operation Procedures • eBooking System Demo • Q&A

3. Largest Japanese Shipping Company with 120 years history Annual Turnover about USD 25.7 billion for year ended March 31, 2008 Ranked 391th of World’s Largest Corporations by magazine’s 2007 Fortune Global 500 in terms of operating incomes for 2006 Stock listed in stock exchanges in Tokyo, Osaka, Nagoya and Frankfurt. Introduction of NYK GroupNippon Yusen Kaisha (NYK)

4. Business Breakdown: Bulk Shipping 40% Line Trade 26% Logistics 20% Terminal Harbour Transportation 6% Air Cargo Transportation 4% Cruise 2% Real Estate 0.4% Others 8% The NYK Group operates approximately 777 (as of March 31, 2008) major ocean vessels as well as planes, trains and trucking fleets. 262 office locations, in 32 countries, warehouses in every continent and harbour operations in Asia, North America and Europe Overview of NYK Group

5. International Network Solutions Division • Global Company covering 161 cities and ports in 66 countries • INSD was formerly named as OCS; INSD Hong Kong was established in 2004 • INSD Hong Kong being the INSD Global Headquarters • 3 Operation Hubs – Hong Kong, London, Secaucus • Sales & Customer Service Offices in Secaucus, NJ; London, UK

6. INSD HK – Dedicated Service Team for Rite Aid Corporation • Local Contacts for Hong Kong • Operational Hub and Communication Window with Rite Aid for Asia Origins • Global Service Quality Control Center for all Rite Aid Origins

7. Contact List for NYK Logistics

8. NYK Logistics Role and Responsibilities

9. INSD Role and Responsibilities We work according to the instructions of Rite Aid. We book with Rite Aid’s nominated carrier. We are Neutral. We measure performance of all parties in the Rite Aid's supply chain, including ourselves.

10. INSD Role and Responsibilities Supervision of vendor on time & accurate delivery. Coordination of FCL booking. Coordination of LCL cargo. Handling of all necessary documentation received from vendors. Preparation of documentation for Sea waybill / Bill of Lading. Collection of all local charges. Issuance of a Forwarder’s Cargo Receipt (FCR), to the vendors, after ALL documents and local charges have been received.

11. Standard Operation Procedure for Vendors

12. Operation Flow (Before Sailing) RITE AID SHIPPER NYKL Shipper send booking via ebooking Check information vs PO and Input shipping order information to system YES NO (CY) Shipper arrange empty container pick up, stuffing, and deliver laden container to terminal (CFS) Shipper deliver cargo to our warehouse within assigned delivery date Rite Aid accept shipment Discrepancy NO YES Release carrier booking confirmation (CY) or shipping order number (CFS) Advise shipper to revise those discrepancies and place booking again

13. Operation Flow (Before Sailing) SHIPPER NYKL RITE AID Submit container load plan before SI cut-off Data input container load plan information in iSMS Prepare B/L sample to carrier

14. Operation Flow (After Sailing) RITE AID BROKER SHIPPER NYKL Receive shipping advice to prepare customs clearance Prepare and send shipping advice to broker (within 3 days after sailing) Submit complete set of commercial document & all local charges (Within 3 days after sailing) Prepare FCR, release FCR to shipper & transmit Proof of Delivery data to TradeCard Scan document to broker within 5 days after sailing (SWB, full set commercial document and container manifest) Receive document for clearance

15. Booking Requirements Booking Timeline: Vendors must submit bookings via NYKL eBooking system, and complete accurate 10+2 Data elements within the fourteen (14) days of Booking Window. West Coast DCs : PO Arrival Date minus 43-56 days East Coast DCs : PO Arrival Date minus 57-70 days Purpose: ensure adequate space and equipment from carrier

16. Booking Management • To ensure vendor place on time, NYKL will proactively send Po expediting (auto-email notice) to vendors 21 days prior to the EDD (Early Delivery Date) • If laden containers fails to be delivered to terminal on the Last Delivery Date (LDD), NYKL will send a non-delivery notice to vendor

17. On-time Shipment Full Container Loaded Cargoes (CY) Laden container delivered to Carrier’s Terminal within 14 days Delivery Window Less-than-container Loaded Cargoes (CFS) CFS Cargo delivered to NYKL Warehouse within Delivery Window.

18. Booking Information • Information required for bookings: • Shipper Name / Address / Contact person / phone, email address/ fax number • Consignee Name / Address • Notify Party • Port of Loading • Destination • Rite Aid PO Number & Rite Aid Sku# • Shipping Marks

19. Booking Information • Description of Merchandise (Precise cargo description: generic description such as “General Cargo”, “Freight All Kind” is not allowed • Number of Cartons / Piece Count Quantities per Sku# • Weight (kgs) and Volume (cbm) per Sku# • Container size and number of container requested (Factory load cargo) • Estimated Cargo Ready Date (CFS): cargo available to be delivered to NYKL warehouse or dedicated NVOCC facility • Estimated Cargo Ready date (CY) : laden container delivered to carrier CY • 1. Production completed • 2. Inspection passed • CY : Container stuffing completed Laden container delivered to carrier CY • CFS: Cargo can be delivered to NYKL warehouse or dedicated NVOCC facility Rite Aid’s Definition of Cargo Ready Date

20. PO Verification NYKL needs to make sure all bookings comply with Rite Aid PO info : • PO number • Sku number • Cargo delivered within Delivery Window • Quantities • FOB point • Can meet minimum load requirement (CY) All discrepancies must be approved by Rite Aid

21. Sample of Shipping Order SAMPLE

22. Sample of Carrier Booking Confirmation Carrier booking number SAMPLE NYKL CLP cut-off time

23. Factory Load Requirements Rite Aid Container Load Standard: 20’ Dry Min 27 cbm Max 16,326 kgs 40’ Dry Min 55 cbm Max 18,144 kgs 40‘ High CubeMin 66 cbm Max 19,051 kgs 45‘ Dry Min 76 cbm Max 19,507 kgs Any loading measurement not meeting the container utilization requirements or any possibility of overweight must be report to Rite Aid before empty container collection

24. Factory Load Requirements • Load Merchandise by Destination, by PO number and by Sku number. • A Purchase Order should never be split into two containers unless the volume exceeds one container. • One Sample of each sku should be placed at the tail of each container for US Customs inspection • Must submit Container Loading Plan (CLP) to NYKL on/before NYKL CLP cut-off time after cargo stuffing with complete and accurate information.

25. Container Loading Plan (CLP) Requirements for Factory Load CLP Information: • Container number • Seal Number • Size of Container • Port of Loading • Final Destination • Container Arrival Date at Terminal • Vessel Name/Voyage Number • Ocean Carrier • Carrier Booking Number • Rite Aid PO & Sku # • Precise cargo description: generic description such as “General Cargo”, “Freight All Kind” is not allowed • Carton & Piece Quantity (lowest visible packing) • Weight & CBM

26. Container Loading Plan Sample SAMPLE Submit to NYKL on/before NYKL CLP cut-off time

27. CFS Cargo Delivery Requirement • Vendors need to present NYKL Shipping Order for cargo delivery • Cargo must be delivered to NYKL warehouse by the CFS cut-off stated on the booking confirmation sheet • Cargo must be sorted by P.O. and by Sku when cargo arriving to NYKL warehouse • Cargo receiving date is counted based on the complete booked carton quantity is received, together with in sound condition

28. Documentation Requirements • Vendor should submit NYKL Complete and Accurate documents within 3 business days after vessel sailing, 1 original copy • The required basic documents : • Commercial Invoice • Packing List • Certificate of Origin (Form A) • Inspection Certificate • Textile Declaration (if applicable) • Export Visa (if required) • Others applicable requirements

29. Documentation Requirements • Forwarder Cargo Receipt (FCR) will be released to vendor upon NYKL receiving all required documents and local charges from vendors. • If vendor fails to submit documents to NYKL within 3 business days after vessel sailing, NYKL will issue Document Delay Notice to vendor.

30. Timely delivery of products and documentation Accuracy of information Condition of cartons Proper packaging to avoid damages Vendors Responsibilities

31. Forwarders’ Cargo Receipt (FCR)

32. Forwarders’ Cargo Receipt (FCR) Issuance • FCR draft will be available in the eBooking for review or checking once full set of commercial documents with cargo is received whichever later. • Forwarders’ Cargo Receipt (FCR) will be released to vendor upon receiving confirmed draft FCR copy, required sets of document and all local charges from vendor. • NYKL will issue one (1) Original FCR per Vendor’s Commercial Invoice. • Once the FCR has been issued, NYKL will transmit the Proof of Delivery to TradeCard.

33. Upper part of FCR NOTIFY PARTY: NYK Logisitics France Parc de Chesnes - Quatre routes 7, rue des quatre routes-BP 35 38291 St Quentin Fallavier Cedex France SAMPLE

34. Lower part of FCR SAMPLE

35. NYK Logistics eBooking System

36. NYK Logistics e-Booking http://griffin.hk.nyklogistics.com/ebooking/

37. eBooking Benefits for Vendors • Avoid delay caused by inaccessible fax transmission • Higher visibility in booking status, e.g. booking approval status. • Minimize typo errors as there is alert in ebooking system • Reduce Paper Usage • Avoid back and forth clarification for unclear or missing information • Minimize redundant input e.g. Cargo description can be downloaded from PO transmission • Enhanced Reporting Capabilities

38. How to Apply for Login • Go to NYK Logistics e-Booking web-site • http://griffin.hk.nyklogistics.com/ebooking • Download Registration Form and save to your own PC. • Fill in the form and email to : • nlhk_riteaid@hk.nyklogistics.com • Login ID and password will be informed within 1 working day by email.

39. e-Booking Registration • Form • 1 administrative user and up to 3 operation user logins can be requested per vendor / factory. • Administrative user has the right to maintain user profile (name, password etc) of all login ID and define template.

40. First time Login: Vendors are required to double check whether the information of the Users is correct.

41. e-Booking Functions

42. On-line Booking • More flexible to submit booking 7 days a week. • Improve accuracy by real-time validation on PO and Sku # • Allow booking to be made on Rite Aid’s PO No. • Save time to enter item details. • Reduce processing time.

43. Shipping Order • Let you to keep your own copy. • Shows NYKL Shipping Order No. if booking is confirmed. • The printed copy of Shipping Order must carry “NYKL Shipping Order No.” for cargo delivery to CFS warehouse. • PDF format

44. Submit Load • Plan • View Rite Aid min loading requirements. • Container No. check digit validation. • Eliminate redundant typing and speed up SI submission.

45. Real Time • Tracking • Booking status. • Shipment & Sailing info • View FCR (draft) content

46. 10+2 Enhancement There is a tab (Service Provider) in the top menu to let vendor input manufacturer, stuffer, stuffing location as a template :

47. Support • On-line Help screen for all functions. • Contact NYK Logistics local office

48. eBooking System Demo

49. Question & Answer

50. Frequently Asked Questions Which login (administrative user login / operation login) should vendor used to create the eBookings ? Depends. The administrative user can see all the bookings created and a operation user can only see the bookings created by herself. How long will NYKL confirm the eBookings submitted ? CFS：1 working day if no discrepancy and no Rite Aid’s approval is required. CY : Depends on when the nominated carrier by Rite Aid release bookings to NYKL (NYKL will closely follow up with carriers and report carriers’ performance to Rite Aid constantly.)