**Exhibit10.7**

 

**FIRST AMENDMENT TO CREDITAGREEMENT**

 

ThisFirst Amendment to Credit Agreement (the “First Amendment”) is made as of this22nd day of July, 2004 by and among

 

DUANE READE, aNew York general partnership, having its principal place of business at 440Ninth Avenue, New York, New York 10001; and

 

DUANE READEINC. a Delaware corporation, having its principal place of business at 440Ninth Avenue, New York, New York 10001; and

 

DRI I INC., aDelaware corporation, having its principal place of business at 440 NinthAvenue, New York, New York 10001; and

 

DUANE READEINTERNATIONAL, INC., a Delaware corporation, having a mailing address at P.O.Box 32216, Newark, New Jersey 07102; and

 

DUANE READEREALTY, INC., a Delaware corporation, having its principal place of business at440 Ninth Avenue, New York, New York 10001; and

 

the LENDERSparty hereto; and

 

FLEET NATIONALBANK, as Issuing Bank, a national banking association having a place ofbusiness at 100 Federal Street, Boston, Massachusetts 02110; and

 

FLEET NATIONALBANK, as Administrative Agent for the Lenders, a national banking associationhaving a place of business at 100 Federal Street, Boston, Massachusetts 02110;and

 

FLEET RETAILGROUP, INC. (f/k/a Fleet Retail Finance Inc.), as Collateral Agent for theLenders, a Delaware corporation, having its principal place of business at 40Broad Street, Boston, Massachusetts 02109; and

 

CONGRESSFINANCIAL CORPORATION, as Documentation Agent; and

 

GENERALELECTRIC CAPITAL CORPORATION as Syndication Agent; and

 

WELLS FARGORETAIL FINANCE, LLC, as Syndication Agent and Co-Lead Arranger

 

in consideration of the mutual covenants herein contained and benefitsto be derived herefrom.

 

**W I T N E S S E T H:**

 

WHEREAS,on July 21, 2003, the parties hereto entered into that certain Credit Agreement(as amended and in effect, the “Credit Agreement”); and

 

WHEREAS,Duane Reade Inc. has advised the Agents and the Lenders that it intends toenter into a transaction with Duane Reade Holdings, Inc. and its subsidiariespursuant to which Duane Reade Holdings, Inc. will become the sole shareholderof Duane Reade Inc.; and

 

WHEREAS,in connection with the transaction with Duane Reade Holdings, Inc., Duane ReadeInc. and/or its Subsidiaries intend to incur additional Indebtedness in theaggregate 

 

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amountof $350,000,000.  A portion of theproceeds of such Indebtedness is intended to be utilized to repay theobligations under the Convertible Indenture and/or the Credit Agreement; and

 

WHEREAS,the consummation of the above referenced transactions would be in violation ofthe Credit Agreement and the Loan Parties have therefore requested that theLenders amend certain provisions of the Credit Agreement in connection with theforegoing transactions and otherwise modify certain of the provisions of theCredit Agreement as set forth herein.

 

NOW, THEREFORE, it is hereby agreed as follows:

 

# 1.                                       CapitalizedTerms.  All capitalized terms usedherein and not otherwise defined shall have the same meaning herein as in theCredit Agreement.

#  

# 2.                                       Amendmentsto Article I.  The provisions ofArticle I of the Credit Agreement are hereby amended as follows:

#  

## (a)                                  Bydeleting the last paragraph of the definition of “Applicable Margin” in itsentirety and substituting the following in its stead:

##  

Except as provided in the following sentence, the Applicable Marginshall be adjusted quarterly as of the first day of each Fiscal Quarter, basedupon the average Excess Availability for the immediately preceding FiscalQuarter. Notwithstanding the foregoing, the Applicable Margin will be set atLevel 2 on the Closing Date and will remain at Level 2 until (but notincluding) July 21, 2004. In no event shall the Applicable Margin be set atLevel 1 prior to July 21, 2004 (even if the Excess Availability requirementsfor Level 1 have been met).

 

From and after July 21, 2004, the Applicable Margin shall be adjustedquarterly as of the first day of each Fiscal Quarter, based upon the averageExcess Availability for the immediately preceding Fiscal Quarter as follows:

 
| **Level** | ** ** | **Performance Criteria**                                                                    | ** ** | **Prime Rate Loans** | ** ** | **LIBO Loans** | ** ** |
|-----------|------------|---------------------------------------------------------------------------------------------|------------|----------------------|------------|----------------|------------|
| 1         |       | Average Excess Availability greater than $35,000,000                                        |       | 0                    | %          | 1.50           | %          |
| 2         |       | Average Excess Availability greater than $25,000,000 but less than or  equal to $35,000,000 |       | 0.25                 | %          | 1.75           | %          |
| 3         |       | Average Excess Availability less than or equal to $25,000,000                               |       | 0.50                 | %          | 2.00           | %          |

 

Upon the occurrence of an Event of Default, at the option of theAdministrative Agent or at the direction of the Required Lenders, interestshall be determined in the manner set forth in Section 2.11.

 

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## (b)                                 Bydeleting the definition of “Appraisal Percentage” in its entirety andsubstituting the following in its stead:

##  

 “Appraisal Percentage”shall mean 90%.

 

## (c)                                  Bydeleting the definition of “Borrowing Base” in its entirety and substitutingthe following in its stead:

##  

 “Borrowing Base” means,at any time of calculation, an amount equal to:

 

### (i)                                     theCredit Card Advance Rate *multiplied by*theface amount of Eligible Credit Card Receivables, plus

###  

### (ii)                                  thelesser of (i) the Appraisal Percentage of the Appraised Value of EligibleInventory, net of Inventory Reserves, or (ii) the Inventory Advance Rate *multiplied by* the Cost of EligibleInventory net of Inventory Reserves; plus

###  

### (iii)                               thePrescription List Advance; plus

###  

### (iv)                              theReceivables Advance Rate multiplied by the face amount of Eligible Third-PartyReceivables; minus

###  

### (v)                                 thethen amount of all Availability Reserves.

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## (d)                                 Bydeleting the definition of “Change in Control” in its entirety and substitutingthe following in its stead:

##  

 “Change in Control”means, at any time, (a) during any period of twelve months after the EffectiveDate, individuals who at the beginning of such period constituted the board ofdirectors of the Parent (together with any new directors whose election or appointmentby such board of directors, or whose nomination for election by shareholders ofthe Parent, as the case may be, was approved by either (i) a vote of a majorityof the directors still in office who were either directors at the beginning ofsuch period or whose election or nomination for election was previously soapproved, or (ii) the Purchasers) cease for any reason (other than as a resultof a requirement of law) to constitute a majority of the board of directorsthen in office; or (b) following the consummation of the Rex Transaction butprior to the consummation of an initial public offering of the common stock ofthe Parent or DR Corp. (an “IPO”), the Purchasers cease to own, or to have thepower to vote or direct the voting of, a majority of the then outstandingVoting Stock of the Parent, or (c) prior to the consummation of the RexTransaction or after the consummation of an IPO, any person or group (withinthe meaning of the Securities and Exchange Act of 1934, as 

 

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amended), other than the Purchasers, is or becomes the beneficial owner(within the meaning of Rule 13d-3 and 13d-5 of the Securities and Exchange Actof 1934, as amended, except that such person shall be deemed to have “beneficialownership” of all shares that such person has the right to acquire, whethersuch right is exercisable immediately or only after the passage of time)directly or indirectly of thirty-five percent (35%) or more of the total thenoutstanding voting power of the Voting Stock of the Parent or DR Corp. on afully diluted basis, whether as a result of the issuance of securities of theParent or DR Corp., as applicable, any merger, consolidation, liquidation ordissolution of the Parent or DR Corp., as applicable, any direct or indirecttransfers of securities or otherwise; or (d) (i) except as provided in Section6.03(a)(vi), the failure of DR Corp. or DRI I to be a general partner of theBorrower, or (ii) except as provided in Section 6.03(a)(vi), the failure of theDR Corp. or DRI I at any time to own, directly or indirectly, 100% of thecapital stock or other equity interests of the Borrower free and clear of allLiens (other than the Liens permitted pursuant to Section 6.02(f) and Liens infavor of the Collateral Agent for the benefit of the Secured Parties under theLoan Documents, if any, and restrictions on transfer of ownership set forth inthe Partnership Agreement); or (e) except as provided in Section 6.03(a)(vi),the failure of DR Corp. at any time to own, directly or indirectly, 100% of thecapital stock or other equity interests of DRI I free and clear of all Liens(other than the Liens permitted pursuant to Section 6.02(f) and Liens in favorof the Collateral Agent for the benefit of the Secured Parties under the LoanDocuments, if any).

 

## (e)                                  Bydeleting the definition of “Consolidated EBITDA” in its entirety andsubstituting the following in its stead:

##  

## “Consolidated EBITDA” means for any period, theresult for such period of (i) Consolidated Net Income, plus (ii)depreciation, amortization, and all other non-cash charges that were deductedin arriving at Consolidated Net Income for such period plus (iii)provisions for Taxes based on income that were deducted in arriving atConsolidated Net Income for such period, plus (iv) Consolidated InterestExpense, plus (v) non-recurring charges for the retirement of SERPobligations, change in control payments, settlement payments, and transfers ofcorporate life insurance policies, in each case to or for the benefit ofAnthony Cuti, in connection with the Rex Transaction that were deducted inarriving at Consolidated Net Income for such period, all as determined on aConsolidated basis in accordance with GAAP.

 

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## (f)                                    Byamending the definition of “Consolidated Net Income” by adding the words“(which is not a Loan Party)” after the words “Subsidiary of the Parent” inclause (iii) of the proviso thereto.

##  

## (g)                                 Byamending clause (b) of the definition of “Eligible Credit Card Receivables” byadding the words “or second priority Liens permitted pursuant to Section6.02(f)” after the words “Security Documents” at the end thereof.

##  

## (h)                                 Byrelettering the last four clauses of the definition of “Eligible Third PartyReceivables” as (c), (d), (e), and (f), respectively and by adding the words“or second priority Liens permitted pursuant to Section 6.02(f)” after thewords “clause (a) of such definition” at the end of the relettered clause (c).

##  

## (i)                                     Bydeleting the definition of “FRF” in its entirety and substituting the followingin its stead:

##  

 “FRF” means Fleet RetailGroup, Inc. f/k/a Fleet Retail Finance Inc., a Delaware corporation.

 

## (j)                                     Byadding the following at the end of the definition of “Fixed Charge Coverage Ratio”:

##  

Notwithstanding the foregoing, for any period in which the calculationof the Fixed Charge Coverage Ratio includes any fiscal month through the fiscalmonth ending immediately prior to the consummation of the Rex Transaction, thecalculation of the Fixed Charge Coverage Ratio for those fiscal months prior toand including such month shall include the financial results for DR Corp. andits Subsidiaries only (as if they were the “Parent and its Subsidiaries” forthose months).

 

## (k)                                  Bydeleting the definition of “Inventory Advance Rate” in its entirety andsubstituting the following in its stead:

##  

 “Inventory Advance Rate” meansthe following percentages for the following types of Inventory:

 
| **Type of Inventory**                          | ** ** | **Inventory Advance Rate** | ** ** |
|------------------------------------------------|------------|----------------------------|------------|
| Pharmaceutical Inventory                       |       | 84.2                       | %          |
| Inventory other than Pharmaceutical  Inventory |       | 62.55                      | %          |

 

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## (l)                                     Bydeleting the number “0.375%” in the definition of “Line Fee” and substitutingthe number “0.30%” in its stead.

##  

## (m)                               Bydeleting the last sentence of the definition of “Material Indebtedness” in itsentirety and substituting the following in its stead:

##  

In all events, “Material Indebtedness” shall include Indebtedness underthe Convertible Indenture, the Rex Transaction Financing and the PermanentSecurities irrespective of the amounts due thereunder.

 

## (n)                                 Byamending the definition of “Obligations” as follows:

##  

### (i)                                     Bydeleting the words “the Credit Agreement” in clauses (a)(ii) and (a) (iii) ofsuch definition and substituting the words “this Agreement” in their stead.

###  

### (ii)                                  Byadding the following at the end of such definition immediately before theperiod:

###  

### (but excluding any obligations owing to FRF, Fleet, orany of their respective Affiliates in connection with the Rex TransactionFinancing or the Permanent Securities).

###  

## (o)                                 Bydeleting the definition of “Parent” in its entirety and substituting thefollowing in its stead:

##  

 “Parent” means DuaneReade Holdings, Inc., a Delaware corporation.

 

## (p)                                 Bydeleting the words “all of the assets (including capital stock) acquired inconnection with such acquisition” at the end of clause (v) of the definition of“Permitted Acquisition” and substituting the words “all assets of the same typeand nature as constitute Collateral under the Security Documents” in its stead:

##  

## (q)                                 Byadding the words “with respect to any Investment that constitutes RevolvingLender Priority Collateral (as defined in the Intercreditor Agreement),”immediately after “(ii)” in the proviso to the definition of “PermittedInvestments.”

##  

## (r)                                    Bydeleting the last sentence of the definition of “Total Commitments” in itsentirety and substituting the following in its stead:

##  

As of the Effective Date, the Total Commitments aggregate $250,000,000.

 

## (s)                                  Byadding the following new definitions in appropriate alphabetical order:

 

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## “Bridge Loan” means Indebtedness incurred bythe Parent or any of its Subsidiaries as part of the Rex Transaction Financingin contemplation of the issuance of Permanent Securities.

##  

 “DR Corp” means DuaneReade Inc., a Delaware corporation.

 

“DRS” means Duane Reade Shareholders, LLC, a Delaware limitedliability company.

 

 “Effective Date” means,(i) other than with respect to the Rex Related Amendments, the date of thesatisfaction of the conditions precedent set forth in Paragraph 11(a) of theFirst Amendment, and (ii) with respect to the Rex Related Amendments, the dateof the satisfaction of the conditions precedent set forth in Paragraphs 11(a) and11(b) of the First Amendment.

 

 “First Amendment” meansthe First Amendment to Credit Agreement dated July 22, 2004.

 

“Intercreditor Agreement” means the Intercreditor Agreement inthe form of Exhibit “F” hereto to be entered into by the Collateral Agent andBank of America, N.A., as term loan agent for certain lenders from time to timeparty to the Rex Transaction Financing, as amended and in effect.

 

 “Permanent Securities”means the issuance by the Parent, or any of its Subsidiaries, in one or moretranches, of debt, or equity or convertible securities of the Borrower, theParent or DR Corp., for the purpose of refinancing all or a portion of theoutstanding amounts under the Rex Transaction Financing, in any case in anaggregate amount of not more than an amount necessary to effect suchrefinancings (including to refinance accrued interest and fees, expenses,original issue discount and other transaction costs in connection with any suchrefinancing), provided that (i) (A) except as provided in clause (i)(B)below, the principal amount of such securities shall not exceed 110% of theprincipal amount of Rex Transaction Financing being so refinanced (plus accruedand unpaid interest thereon), or (B) with respect to any refinancing of theBridge Loan, the principal amount of such securities shall not exceed 100% ofthe principal amount of Bridge Loan being so refinanced (plus accrued andunpaid interest thereon (including interest paid in kind), fees, original issuediscount, transaction expenses and other amounts necessary to be paid to retirethe Bridge Loan in full) (ii) such securities shall not have a final maturitydate earlier than that contained in the documents evidencing the RexTransaction Financing being so refinanced as of the Effective Date, (iii) ifsuch securities are secured by assets of any Loan Party, the holder of suchsecurities (or its representative) shall become a party to the 

 

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Intercreditor Agreement; (iv) the pricing, covenants, defaults, rightsand remedies and other terms of such securities shall be reasonably comparableto those terms then required or imposed by other lenders for similar securitiesissued by similarly situated issuers (as determined by the Borrower); and (v)if such securities refinance Subordinated Indebtedness of any Loan Party, suchrefinancing shall also be a Permitted Refinancing.

 

“PermittedRefinancing” means, with respect to any Person, any modification,refinancing, refunding, renewal or extension of any Indebtedness of suchPerson; provided that if the Indebtedness being modified, refinanced,refunded, renewed or extended is Subordinated Indebtedness of any Loan Party,(i) such modification, refinancing, refunding, renewal or extension issubordinated in right of payment to the Obligations on terms at least asfavorable to the Lenders as those contained in the documentation governing theIndebtedness being modified, refinanced, refunded, renewed or extended (anyconfirmation by the Agent that such terms are at least as favorable shall bebinding on the parties hereto), (ii) the terms and conditions (including, ifapplicable, as to collateral, if any) of any such modified, refinanced,refunded, renewed or extended Indebtedness, taken as a whole, are not materiallyless favorable to the Loan Parties or the Lenders than the terms and conditionsof the Indebtedness being modified, refinanced, refunded, renewed or extended(any confirmation by the Agent that such terms are at least as favorable shallbe binding on the parties hereto), (iii) such modification, refinancing,refunding, renewal or extension is incurred by the Person who is the obligor onthe Indebtedness being modified, refinanced, refunded, renewed or extended, and(iv) at the time thereof, no Default or Event of Default shall have occurredand be continuing.

 

 “Pharmaceutical Inventory”means Inventory consisting of prescription medicines or products.

 

 “Prescription List Advance”means an amount equal to 90% of the Appraised Value of the Borrower’s prescriptionlists (but in no event shall the Prescription List Advance exceed 30% of theaggregate Borrowing Base).

 

 “Proxy Statement” meansthe Proxy Statement in respect of the Rex Transaction filed by DR Corp. withthe Securities and Exchange Commission on June 30, 2004.

 

 “Purchasers” means (i)Oak Hill Capital Management, Inc., Oak Hill Capital Partners, L.P. (“OHCP”),any member of Duane Reade Shareholders LLC (“DRS”) that has agreed to give OHCPor its Affiliate a 

 

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proxy or to enter into a voting agreement pursuant to which OHCP or itsAffiliate may vote the Voting Stock of DRS owned by such member, and each oftheir respective Affiliates and (ii) certain members of management of theBorrower and their respective Related Purchaser Parties.

 

“Related Purchaser Parties” means (1) any estate of any memberof management referred to in clause (ii) of the definition of “Purchasers”, (2)any executor, personal administrator or trustee who holds a beneficial interestin DR Corp. or the Parent for the benefit of, or as fiduciary for, any spouse,child, stepchild sibling, or descendant of such member of management, to theextent of such interest, or (3) any trust or similar entity controlled by suchmember of management.

 

 “Rex Related Amendments”means (i) the provisions of the following Paragraphs of the First Amendment:(A) 2(e) (B) 2(g), (C) 2(j), (D) 2(m), (E) 2(o), (F) 2(q), (G) 3(i), and (H) 6(in its entirety, other than 6(o)), and (ii) any release or subordination ofany Collateral.

 

 “Rex Transaction” meansthe acquisition by the Parent of 100% of the capital stock of DR Corp. from theexisting shareholders of DR Corp., which acquisition will be effected throughthe merger of a newly formed direct or indirect wholly owned subsidiary of theParent with and into DR Corp., with DR Corp. as the surviving entity of suchmerger, consistent with the terms, in all material respects, as described inthe Proxy Statement.

 

 “Rex Transaction Financing”means the Indebtedness incurred by the Parent and/or any of its Subsidiaries,in one or more tranches, resulting in net proceeds on the Effective Date of nomore than $350,000,000 (excluding Indebtedness incurred under this Agreement)in connection with the consummation of the Rex Transaction, including, withoutlimitation, (i) the Bridge Loan, (ii) any rollover loans or the exchange notesin exchange for the Bridge Loan and (iii) any Permanent Securities or PermittedRefinancing issued in lieu thereof, in exchange therefor or as a refinancingthereof, provided that (i) rollover loans or exchange notes issued inexchange for all or any portion of the Bridge Loan shall be no less favorableto the issuer thereof than the Bridge Loan or rollover loans which are beingexchanged, and (ii) if such rollover loans or exchange notes are secured byassets of any Loan Party, the holder of such securities (or representatives ofsuch holders) shall, if not already a party, become a party to theIntercreditor Agreement.

 

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“Senior Subordinated Notes” means the Senior Subordinated Notesdue no earlier than 2011 of DR Corp. and the Borrower to be issued inconnection with the Rex Transaction.

 

“Tax Sharing Agreement” means the Tax Sharing Agreement to bedelivered on or about the date of the closing of the Rex Transaction among theParent, DR Corp., the Borrower and certain other subsidiaries of the Parent, asamended, modified or supplemented from time to time.

 

# 3.                                       Amendmentsto Article II.  The provisions ofArticle II of the Credit Agreement are hereby amended as follows:

#  

## (a)                                  Theprovisions of Section 2.01(a)(i) are amended by deleting the number“$200,000,000” and substituting the number “$250,000,000” in its stead.

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## (b)                                 Theprovisions of Section 2.01(a)(ii) are amended by deleting the number“$15,000,000” and substituting the number “$50,000,000” in its stead.

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## (c)                                  Theprovisions of Section 2.02(a) are amended by deleting the number “$225,000,000”and substituting the number “$275,000,000” in its stead.

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## (d)                                 Theprovisions of Section 2.03(a) are hereby amended by adding the following newclause (ii) thereto as follows:

##  

##                 (ii)  Indebtedness Reserve (an AvailabilityReserve):  Until all of the obligationsunder the Convertible Indenture have been repaid in full and retired, at anytime of calculation, an amount equal to the difference between (i) the thenoutstanding principal balance of Indebtedness under the Rex TransactionFinancing, the Permanent Securities and the Convertible Indenture (other thanany amounts under the Convertible Indenture which are repaid or reduced on suchdate) and (ii) the sum of $350,000,000 plus the amount of cash on deposit in asegregated account to be utilized for the sole purpose of retiring suchIndebtedness.

##  

## (e)                                  Theprovisions of Section 2.06(b) are amended by deleting the number “$200,000,000”and substituting the number “$250,000,000” in its stead.

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## (f)                                    Theprovisions of Section 2.07(a) are amended by deleting the number “$15,000,000”and substituting the number “$50,000,000” in its stead.

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## (g)                                 Theprovisions of Section 2.13 are amended by deleting the number “0.375%” andsubstituting the number “0.30%” in its stead.

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## (h)                                 Theprovisions of Section 2.18(a) are amended by adding the words “if the RequiredLenders have notified the Administrative Agent and the

 

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## Borrower that no suchconversions or continuations shall be permitted” at the end thereof.

 

## (i)                                     Theprovisions of Sections 2.22 and 2.23 are hereby amended by adding the followingnew clause (h) to Section 2.22 and (c) to Section 2.23:

##  

## Notwithstanding anything to the contrary contained inthis Section, if prior to the application of any proceeds, the Agents have beenadvised that certain of the proceeds received by them constitute proceeds fromany sale or other disposition of Term Lender Priority Collateral (as defined inthe Intercreditor Agreement), such proceeds shall not be applied to theObligations but shall be remitted to DRI or the Term Loan Agent (as defined inthe Intercreditor Agreement), in accordance with written notice provided by theTerm Loan Agent to the Agents.

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# 4.                                       Amendmentsto Article III.  The provisions ofArticle III of the Credit Agreement are hereby amended as follows:

#  

## (a)                                  Allreferences to “the Parent” in Section 3.04 shall be deleted and replaced with“DR Corp.”

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## (b)                                 Allreferences to “the Closing Date” in Section 3.05(c) shall be deleted andreplaced with “the Effective Date.”

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## (c)                                  Theprovisions of Section 3.06(c) are hereby amended by deleting the text “Sincethe date of this Agreement” and replacing it with “Since the Effective Date,”.

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## (d)                                 Theprovisions of Section 3.14 are hereby amended by adding the words “Except asset forth on Schedule 3.14 hereto:” immediately after the title to thatSection.

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## (e)                                  Theprovisions of Section 3.16(b) are hereby amended by adding “except as set forthon Schedule 3.16(b)” at the end of that Section.

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# 5.                                       Amendmentto Article V.  The provisions ofArticle V of the Credit Agreement are hereby amended as follows:

#  

## (a)                                  Allreferences to “the Parent” in Sections 5.01(a), (b), (c), (d), and (e) of theCredit Agreement shall be deleted and replaced with “DR Corp.”

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## (b)                                 Theprovisions of Section 5.13 of the Credit Agreement are hereby deleted in theirentirety and the following substituted in their stead:

 

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# If any additional Subsidiary of any Loan Party isformed or acquired after the Closing Date, the Borrower will notify the Agentsand the Lenders thereof and (a) if such Subsidiary is not a Foreign Subsidiary,the Borrower will cause such Subsidiary to become a Loan Party hereunder andunder each applicable Security Document in the manner provided therein withinfifteen (15) days after such Subsidiary is formed or acquired and promptly takesuch actions to create and perfect Liens on such of the Subsidiary’s assetswhich would constitute “Collateral” under the Security Documents to secure theObligations as any Agent or the Required Lenders shall reasonably request.

#  

## (c)                                  Theprovisions of Section 5.14(b) of the Credit Agreement are hereby deleted intheir entirety and the following substituted in their stead:

##  

## If any material property which would constituteCollateral is acquired by any Loan Party after the Closing Date (other thanassets constituting Collateral under the Security Agreement that become subjectto the Lien of the Security Agreement upon acquisition thereof), the Borrowerwill notify the Agents and the Lenders thereof, and the Loan Parties will causesuch assets to be subjected to a Lien securing the Obligations and will takesuch actions as shall be necessary or reasonably requested by any Agent togrant and perfect such Liens, including actions described in paragraph (a) ofthis Section, all at the expense of the Loan Parties.

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# 6.                                       Amendmentto Article VI. The provisions of Article VI of the Credit Agreement arehereby amended as follows:

#  

## (a)                                  Section6.01 of the Credit Agreement is hereby amended by deleting the provisions ofSection 6.01(a)(viii) in its entirety and substituting the following in itsstead:

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(viii) (A) Indebtedness arising under the Convertible Indenture and (B)the Rex Transaction Financing, and related documents, and any PermanentSecurities or other Indebtedness which refinances same, provided howeverthat any such refinancing is permitted under the definitions of “PermanentSecurities”, “Rex Transaction Financing”, or “Permitted Refinancing”;

 

## (b)                                 Section6.01(a) of the Credit Agreement is hereby amended by renumbering clause (xi) asclause (xii) and inserting a new clause (xi) as follows:

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(xi)   Indebtedness consisting ofGuarantees of the Rex Transaction Financing and any Permanent Securities issuedin respect thereof or Permitted Refinancings thereof; and

 

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## (c)                                  Section6.01(b) of the Credit Agreement is hereby amended by deleting clause (i)thereof and substituting the following in its stead:

##  

## all dividends in respect of which are to be paid (andall other payments in respect of which are to be made) either (x) in additionalshares of such preferred stock, in lieu of cash, or (y) in cash, but only ifthe Payment Conditions are satisfied,

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## (d)                                 Section6.02 of the Credit Agreement is hereby amended by deleting the period at theend of clause (e) and adding the following:

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; and

 

 (f)   Liens to secure Indebtedness permitted byclause (viii) of Section 6.01(a), provided that if the Loan Partiesrequest that the Collateral Agent release its Lien on any collateral or subordinatethe priority of its Lien on any collateral (other than in the Revolving LenderPriority Collateral (as defined in the Intercreditor Agreement) as to which theCollateral Agent shall not be required to provide a release or subordination ofits Lien) to the Lien of the holders of such Indebtedness in such collateral,the Collateral Agent shall so release or subordinate its Lien as long as (i)the Intercreditor Agreement is in full force and effect, and (ii) no Default orEvent of Default shall then exist or arise therefrom.

 

## (e)                                  Section6.03(a) of the Credit Agreement is hereby amended by deleting the period, andadding the following, at the end thereof:

 

and (iv) the Rex Transaction shall be permitted on the terms specifiedherein (including, without limitation, the merger of DR Acquisition Corp. withand into DR Corp.), (v) contemporaneously with the closing of the RexTransaction, DR Acquisition Corp. may merge with and into DR Corp., as long asthe Collateral Agent retains, as of the closing of the Rex Transaction, avalid, perfected first priority Lien on the Revolving Lender PriorityCollateral (as defined in the Intercreditor Agreement) (and thereupon allreferences to DR Corp. or the Borrower contained herein and in the other LoanDocuments shall thereafter mean and refer to such surviving entity), and (vi)the Borrower may merge with and into, or be liquidated into, DR Corp.

 

## (f)                                    Section6.03(b) of the Credit Agreement is hereby amended by adding the following atthe end thereof:

 

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Without limiting the generality of the foregoing, the Parent shall notengage in any business, and shall not own any property or assets, other than(i) acquiring and owning the capital stock of any other Loan Party, (ii)incurring Indebtedness and performing its obligations under the Rex TransactionFinancing, any Permanent Securities, any Permitted Refinancing, and/or thisAgreement, (iii) incurring other obligations under the Rex Transaction and theagreements contemplated thereby and engaging in activities contemplated thereinor required thereby, and (iv) otherwise incidental to the operation of thebusiness of a holding company.

 

## (g)                                 Section6.04 of the Credit Agreement is hereby amended as follows:

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### (i)                                     Section6.04(c) of the Credit Agreement is deleted in its entirety and the followingsubstituted in its stead:

###  

(c)   loans or advances made by any Loan Party toany other Loan Party and by the Parent to DRS, provided that loans andadvances to the Parent shall be limited to such amounts as may be necessary toenable the Parent (i) to pay amounts in respect of the Rex TransactionFinancing and the Permanent Securities or any Permitted Refinancing, to theextent permitted hereunder, and to pay accounting, legal and other professionalfees, income taxes (including pursuant to the Tax Sharing Agreement), franchisetaxes, management fees permitted under Sections 6.07(e) and (f) hereof (to theextent not otherwise paid), and other general and administrative expenses incurredby the Parent for itself and the other Facility Guarantors and (ii) to makedividends or distributions or to make loans and advances to DRS to enable DRSto pay accounting, legal and other professional fees, income taxes (includingpursuant to the Tax Sharing Agreement), franchise taxes, management feespermitted under Sections 6.07(e) and (f) hereof (to the extent not otherwisepaid), and other general and administrative expenses incurred by DRS;

 

### (ii)                                  Section6.04(d) of the Credit Agreement is deleted in its entirety and the followingsubstituted in its stead:

###  

 (d)  Equity Investments made by any Facility Guarantor in the Borrower or byany Facility Guarantor or by the Borrower in another Facility Guarantor (otherthan in the Parent) except for the purposes specified in Section 6.04(c)hereof;

 

14

----

 

## (h)                                 Section6.05 of the Credit Agreement is hereby amended by adding the following newclause immediately after clause (e) and before the proviso thereto:

##  

## (f)   theconsummation of the Rex Transaction.

##  

## (i)                                     Section6.06 of the Credit Agreement is hereby amended as follows:

##  

### (i)                                     Section6.06(a) of the Credit Agreement is hereby deleted in its entirety and thefollowing substituted in its stead:

###  

 (a) The Loan Parties will not, and will notpermit any Subsidiary to, declare or make, or agree to pay or make, directly orindirectly, any Restricted Payment, except (i) the Loan Parties may declare andpay dividends with respect to their capital stock payable solely in additionalshares of or warrants to purchase their common stock, (ii) splits orreclassifications of its stock into additional or other shares of its commonstock are permitted, (iii) as long as the Commitments have not been terminatedas a result of the occurrence of an Event of Default or the Obligationsaccelerated, cash dividends to DR Corp. are permitted, (iv) as long as theCommitments have not been terminated as a result of the occurrence of an Eventof Default or the Obligations accelerated, cash dividends to the Parent arepermitted to enable the Parent (x) to pay amounts in respect of the RexTransaction Financing and the Permanent Securities or any PermittedRefinancing, to the extent permitted hereunder, and to pay accounting, legaland other professional fees, income taxes (including pursuant to the TaxSharing Agreement), franchise taxes, management fees permitted under Sections6.07(e) and (f) hereof (to the extent not otherwise paid), and other generaland administrative expenses incurred by the Parent for itself and the otherFacility Guarantors and (y) to make dividends or distributions or to make loansand advances to DRS to enable DRS to pay accounting, legal and otherprofessional fees, income taxes (including pursuant to the Tax SharingAgreement), franchise taxes, management fees permitted under Sections 6.07(e)and (f) hereof (to the extent not otherwise paid), and other general andadministrative expenses incurred by DRS, (v) as long as the Commitments havenot been terminated as a result of the occurrence of an Event of Default or theObligations accelerated, payments may be made to members of management of theBorrower or DR 

 

15

----

 

Corp. inrespect of the exercise of stock options, so long as at such time ExcessAvailability shall be equal to or greater than 15% of the Borrowing Base and noDefault or Event of Default then exists or would arise therefrom, (vi) only ifthe Payment Conditions are then satisfied, the Parent may repurchase itscapital stock and/or declare and pay cash dividends to its shareholders, (vii)the Subsidiaries of the Parent may declare and pay cash dividends, (A) to anyother Loan Party (other than DR Corp or the Parent), (B) to the extentpermitted in clause (iv) hereof, to the Parent, and (C) to the extent permittedin clause (iii) hereof, to DR Corp; and (viii) the Parent may declare and paycash dividends to DRS to the extent permitted in clause (iv) hereof.

 

### (ii)                                  Section6.06(b)(i) of the Credit Agreement is hereby deleted in its entirety and thefollowing substituted in its stead:

###  

 (i)  (A) the repayment, redemption, or repurchase of Indebtedness evidencedby the Convertible Indenture after the consummation of the Rex Transaction, (B)the repayment, redemption or repurchase of the Rex Transaction Financing,Permanent Securities or any Permitted Refinancing to the extent permitted underthis Agreement, or (C) as long as the Payment Conditions are satisfied, therepayment, redemption or repurchase of Indebtedness evidenced by theConvertible Indenture (other than Indebtedness repaid, redeemed or repurchasedafter the consummation of the Rex Transaction) or Subordinated Indebtedness;

 

### (iii)                               Section6.06(b)(ii) of the Credit Agreement is hereby deleted in its entirety and thefollowing substituted in its stead:

###  

payment ofmandatory or regularly scheduled interest and principal payments as and whendue in respect of any other Indebtedness permitted hereunder, including,without limitation on account of the Rex Transaction Financing and anyPermanent Securities and any Permitted Refinancing of any of the foregoing;

 

### (iv)                              Section6.06(b) is hereby amended by deleting the period at the end of clause (iii) andadding the following:

###  

### ; and

 

16

----

 

### (iv)  voluntary,non-mandatory pre payments of Indebtedness on account of the Rex TransactionFinancing, any Permanent Securities and any Permitted Refinancing of any of theforegoing (other than any Subordinated Indebtedness) as long as at such timeExcess Availability shall be equal to or greater than 15% of the Borrowing Baseand no Event of Default then exists or would arise therefrom.

###  

## (j)                                     Theprovisions of Section 6.07 of the Credit Agreement are hereby amended bydeleting clause (d) in its entirety and adding the following in its stead:

##  

and (d) the Rex Transaction, (e) the feespayable to certain of the Purchasers upon the effectiveness of the RexTransaction, in the amount of $8,000,000, (f) as long as no Event of Defaulthas occurred and is continuing, the management fees payable to certain of thePurchasers in an amount not to exceed in the aggregate $1,500,000 per annum,and (g) the transactions set forth on Schedule 6.07 hereto.

 

## (k)                                  Theprovisions of Section 6.08 of the Credit Agreement are hereby amended by addingthe following at the end of clause (i) of the *proviso*thereto:

##  

## or by any document relating to the Rex TransactionFinancing, any Permanent Securities or Permitted Refinancings thereof,

##  

## (l)                                     Theprovisions of Section 6.09(b) of the Credit Agreement are hereby deleted intheir entirety and the following substituted in their stead:

##  

 (b)the Convertible Indenture and related documents other than as may be requiredin order to effectuate the repayment, redemption or repurchase of Indebtednessthereunder after the consummation of the Rex Transaction,

 

## (m)                               Theprovisions of Section 6.09 of the Credit Agreement are hereby amended asfollows:

##  

### (i)                                     bydeleting clause (e) in its entirety and substituting the following in itsstead:

###  

### (e)  the RexTransaction Financing or any Permanent Securities or any Permitted Refinancingthereof, if as a result thereof a Default or an Event of Default would arisehereunder.

 

17

----

 

### (ii)                                  byadding at the end of clause (c) the words “to the extent such amendment,modification or waiver would have a Material Adverse Effect”

###  

## (n)                                 Theprovisions of Section 6.10 of the Credit Agreement are hereby deleted in theirentirety and the following substituted in their stead:

##  

6.10  AdditionalSubsidiaries.   Other than DRAcquisition Corp., the Loan Parties will not, and will not permit anySubsidiary to, create any additional Subsidiary unless no Default or Event ofDefault would arise therefrom and the requirements of Section 5.13 aresatisfied.

 

## (o)                                 Theprovisions of Section 6.11(a) of the Credit Agreement are deleted in theirentirety and the following substituted in their stead:

##  

Fixed Charge Coverage Ratio;Capital Expenditures.  (a)  At any time that Excess Availability is lessthan ten percent (10%) of the then Borrowing Base, the Loan Parties shallmaintain a Fixed Charge Coverage Ratio, calculated as of the last day of eachmonth, during the Fiscal Years set forth below as follows:

 
| **Period**                      | ** ** | **Minimum Ratio** | ** ** |
|---------------------------------|------------|-------------------|------------|
| Fiscal Year 2003                |       | 1.10:1.00         |       |
| Fiscal Year 2004 and thereafter |       | 1.00:1.00         |       |

#  

# 7.                                       Amendmentsto Article VII.  The provisions ofSection 7.01(g) of the Credit Agreement are hereby amended by adding the words“except for any repayment of the Convertible Notes after consummation of theRex Transaction” at the beginning thereof.

#  

# 8.                                       Amendmentsto Article IX.  The provisions ofSection 9.02(b)(i) of the Credit Agreement are hereby amended by deleting thenumber “$225,000,000” and substituting the number “$275,000,000” in its stead.

#  

# 9.                                       Amendmentto Exhibits and Schedules.  Exhibit Aand Schedules 1.1, 3.05(c)(i), 3.05(c)(ii), 3.06, 3.09, 3.12, 3.13, 6.01, 6.02,6.04 and 6.07 to the Credit Agreement are replaced as of the Effective Date ofthe Rex Related Amendments with a new Exhibit A and new Schedules in the formannexed hereto.

 

18

----

 

# 10.                                 Ratificationof Loan Documents.  Except asprovided herein and in any other documents of even date amending the other LoanDocuments, all terms and conditions of the Credit Agreement and of the otherLoan Documents remain in full force and effect. The Loan Parties each hereby ratify, confirm, and reaffirm all of therepresentations and warranties contained therein both before and after givingeffect to the Rex Transaction and the other transactions described in Paragraph5 hereof.

#  

# 11.                                 Conditionsto Effectiveness.

#  

## (a)                                  ThisFirst Amendment (other than the Rex Related Amendments) shall not be effectiveuntil each of the following conditions precedent have been fulfilled to thesatisfaction of the Administrative Agent:

##  

### (i)                                     ThisFirst Amendment shall have been duly executed and delivered by the respectiveparties.

###  

### (ii)                                  Allcorporate and shareholder action on the part of the Loan Parties necessary forthe valid execution, delivery and performance by the Loan Parties of this FirstAmendment shall have been duly and effectively taken and evidence thereofsatisfactory to the Administrative Agent shall have been provided to the AdministrativeAgent.

###  

### (iii)                               TheBorrower shall have paid the Administrative Agent the fees required under theFee Letter as amended and restated as of the date hereof.

###  

### (iv)                              NoDefault or Event of Default shall have occurred and be continuing.

###  

### (v)                                 TheLoan Parties shall have executed such additional instruments, documents andagreements as the Administrative Agent may reasonably request.

###  

## (b)                                 ThisFirst Amendment (with respect to the Rex Related Amendments) shall not beeffective until each of the following conditions precedent have been fulfilledto the satisfaction of the Administrative Agent:

##  

### (i)                                     Theconditions precedent set forth in Paragraph 11(a) shall have been satisfied.

###  

### (ii)                                  TheParent shall have executed and delivered a Facility Guarantee to the AdministrativeAgent.

 

19

----

 

### (iii)                               TheRex Transaction shall have been consummated, provided that, this clause(iii) shall be deemed to have been satisfied if, prior to the consummation ofthe Rex Transaction, the proceeds of the Senior Subordinated Notes are held inescrow pending the consummation of the Rex Transaction or are returned to theholders of the Rex Transaction Financing if the Rex Transaction is notconsummated within 120 days after the date of this First Amendment.

###  

### (iv)                              Theinstruments, documents and agreements evidencing the Rex Transaction Financingshall be reasonably satisfactory to the Administrative Agent, it being agreedthat such instruments, documents and agreements shall be deemed reasonablysatisfactory as long as (i) none of the provisions thereof would violate therepresentations, covenants and agreements of the Loan Parties under the CreditAgreement and other Loan Documents, after giving effect to the First Amendment,and (ii) the provisions are otherwise materially consistent with the draftdocuments and agreements previously furnished to the Agent.

###  

### (v)                                 TheAgents shall have received a solvency opinion from an independent Personreasonably acceptable to the Administrative Agent addressed to the Agents andthe other Secured Parties, the form, methodology and results of which arereasonably satisfactory to the Agents in all respects. The Administrative Agentshall not request that such solvency opinion be addressed to any Person otherthan the Agents and the other Secured Parties.

###  

### (vi)                              TheAdministrative Agent shall have received an updated favorable legal opinion ofthe Loan Parties’ counsel addressed to the Agents and the other SecuredParties, in form and substance reasonably satisfactory to the Agents, includingwithout limitation, with respect to the Rex Transaction.

###  

### (vii)                           NoDefault or Event of Default shall have occurred and be continuing.

###  

### (viii)                        The LoanParties shall have executed such additional instruments, documents and agreementsas the Administrative Agent may reasonably request.

###  

# 12.                                 Miscellaneous.

#  

## (a)                                  ThisFirst Amendment may be executed in several counterparts and by each party on aseparate counterpart, each of which when so executed and 

 

20

----

 

## delivered shall be anoriginal, and all of which together shall constitute one instrument.

 

## (b)                                 ThisFirst Amendment expresses the entire understanding of the parties with respectto the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwiseaffect the provisions hereof.

##  

## (c)                                  Anydetermination that any provision of this First Amendment or any applicationhereof is invalid, illegal or unenforceable in any respect and in any instanceshall not effect the validity, legality, or enforceability of such provision inany other instance, or the validity, legality or enforceability of any otherprovisions of this First Amendment.

##  

## (d)                                 TheLoan Parties shall pay all costs and expenses of the Agents, including, withoutlimitation, reasonable attorneys’ fees in connection with the preparation,negotiation, execution and delivery of this First Amendment.

##  

## (e)                                  TheLoan Parties warrant and represent that the Loan Parties have consulted withindependent legal counsel of their selection in connection with this FirstAmendment and are not relying on any representations or warranties of theAgents or the Lenders or their counsel in entering into this First Amendment.

##  

# 13.                                 FurtherAssurances.   Each Loan Partyacknowledges and agrees that (a) it is not and will not be a party to, or athird party beneficiary of, the Intercreditor Agreement, and will not receiveany right, benefit, priority or interest under or because of the existence ofthe Intercreditor Agreement, and (b) it will execute and deliver suchadditional documents and take such additional action as may be necessary ordesirable in the reasonable opinion of the Administrative Agent to effectuatethe provisions and purposes of the Intercreditor Agreement.

 

21

----

 

IN WITNESS WHEREOF, the parties have hereuntocaused this First Amendment to be executed and their seals to be hereto affixedas of the date first above written.

 
|   | DUANE READE                             |
|--------|-----------------------------------------|
|   | as Borrower                             |
|   | By:                                     | DUANE READE INC., its General Partner |
|   | By:                                     |   |  /s/ Chris Darrow |   |
|   | Name:                                   | Chris Darrow |
|   | Title:                                  | Vice President and Controller |
|   |                                    |   |
|   | By:                                     |   |  /s/ Michelle D. Bergman |   |
|   | Name:                                   | Michelle D. Bergman |
|   | Title:                                  | Vice President |
|   |                                    |   |
|   | By:                                     |   | DRI I INC., its General Partner |   |
|   | By:                                     |  /s/ Chris Darrow |
|   | Name:                                   | Chris Darrow |
|   | Title:                                  | Vice President and Controller |
|   |                                    |   |
|   | By:                                     |   |  /s/ Michelle D. Bergman |   |
|   | Name:                                   | Michelle D. Bergman |
|   | Title:                                  | Vice President |
|   |                                    |   |
|   | DUANE READE INC., as Facility Guarantor |
|   | By:                                     |   |  /s/ Chris Darrow |   |
|   | Name:                                   | Chris Darrow |
|   | Title:                                  | Vice President and Controller |
|   |                                    |   |
|   | By:                                     |   |  /s/ Michelle D. Bergman |   |
|   | Name:                                   | Michelle D. Bergman |
|   | Title:                                  | Vice President |

 

22

----

 
|   | DRI I INC., as Facility Guarantor                       |
|--------|---------------------------------------------------------|
|   | By:                                                     |   |  /s/ Chris Darrow |   |
|   | Name:                                                   | Chris Darrow |
|   | Title:                                                  | Vice President and Controller |
|   |                                                    |   |
|   | By:                                                     |   |  /s/ Michelle D. Bergman |   |
|   | Name:                                                   | Michelle D. Bergman |
|   | Title:                                                  | Vice President |
|   |                                                    |   |
|   | DUANE READE INTERNATIONAL,  INC., as Facility Guarantor |
|   | By:                                                     |   |  /s/ Chris Darrow |   |
|   | Name:                                                   | Chris Darrow |
|   | Title:                                                  | Vice President and Controller |
|   |                                                    |   |
|   | By:                                                     |   |  /s/ Michelle D. Bergman |   |
|   | Name:                                                   | Michelle D. Bergman |
|   | Title:                                                  | Vice President |
|   |                                                    |   |
|   | DUANE READE REALTY, INC., as  Facility Guarantor        |
|   | By:                                                     |   |  /s/ Chris Darrow |   |
|   | Name:                                                   | Chris Darrow |
|   | Title:                                                  | Vice President and Controller |
|   |                                                    |   |
|   | By:                                                     |   |  /s/ Michelle D. Bergman |   |
|   | Name:                                                   | Michelle D. Bergman |
|   | Title:                                                  | Vice President |

 

S-2

----

 
|   | FLEET RETAIL GROUP, INC.,                              |
|--------|--------------------------------------------------------|
|   | As Collateral Agent, as Swingline Lender and as Lender |
|   | By:                                                    |   | /s/ Mark Forti |   |
|   | Name:                                                  | Mark Forti |
|   | Title:                                                 | Managing Director |
|   | Address:                                               |
|   | 40 Broad Street, 10th Floor                            |
|   | Boston, Massachusetts 02109                            |
|   | Attn: Mark Forti                                       |
|   | Telephone: (617) 434-4364                              |
|   | Telecopy: (617) 434-4339                               |
|   |                                                   |
|   | FLEET NATIONAL BANK,                                   |
|   | as Administrative Agent and as Issuing Bank            |
|   | By:                                                    |   | /s/ Mark Forti |   |
|   | Name:                                                  | Mark Forti |
|   | Title:                                                 | Managing Director |
|   | Address:                                               |
|   | 40 Broad Street                                        |
|   | Boston, Massachusetts 02109                            |
|   | Attn: Mark Forti                                       |
|   | Telephone: (617) 434-4364                              |
|   | Telecopy: (617) 434-4339                               |
|        |                                                        |  |  |  |  |

 

S-3

----

 
|   | CONGRESS FINANCIAL  CORPORATION, as Documentation Agent and Lender |
|--------|--------------------------------------------------------------------|
|   | By:                                                                |   | /s/ Thomas Grabinsky |   |
|   | Name:                                                              | Thomas Grabinsky |
|   | Title:                                                             | First Vice President |
|   | Address: 1133 Avenue of the Americas                               |
|   | Telephone: (212) 545-4346                                          |
|   | Telecopy: (212) 545-4283                                           |

 

S-4

----

 
|   | GENERAL ELECTRIC CAPITAL  CORPORATION, as Syndication Agent |
|--------|-------------------------------------------------------------|
|   | and Lender                                                  |
|   | By:                                                         |   | /s/ Craig Winslow |   |
|   | Name:                                                       | Craig Winslow |
|   | Title:                                                      |   |
|   | Address:                                                    |
|   | Telephone:                                                  |
|   | Telecopy:                                                   |

 

S-5

----

 
|   | THE CIT GROUP/BUSINESS CREDIT, INC., as Lender |
|--------|------------------------------------------------|
|   | By:                                            |   | /s/ Steven Schuit |   |
|   | Name:                                          | Steven Schuit |
|   | Title:                                         | Vice President, Team Leader |
|   | Address:                                       |
|   | Telephone:                                     |
|   | Telecopy:                                      |

 

S-6

----

 
|   | WELLS FARGO RETAIL FINANCE, LLC, as Syndication Agent, as Co-Lead  Arranger, and as Lender |
|--------|--------------------------------------------------------------------------------------------|
|   | By: :                                                                                      |   | /s/ David Molinario |   |
|   | Name:                                                                                      | David Molinario |
|   | Title: :                                                                                   | Vice President |
|   | Address: One Boston Place, 18th Floor                                                      |
|   |                                                                                       | Boston, Massachusetts 02108 |
|   | Telephone: 617-854-7227                                                                    |
|   | Telecopy: 617-722-9485                                                                     |
|        |                                                                                            |  |  |  |  |

 

S-7

----

 

**SCHEDULE3.05(C)(I)**

 

**OWNEDREAL PROPERTY**

 
| **Owner**   | ** ** | **Address (including County)**                                                      | ** ** | **Mortgage Holders / Lien  Holders on Property** |
|-------------|------------|-------------------------------------------------------------------------------------|------------|--------------------------------------------------|
| Duane Reade |       | 1114 Springfield Avenue  Irvington, Essex County, NJ 07111  Land and Building owned |       | None                                             |

 

----

 

**SCHEDULE3.05(C)(II)**

 

**LEASEDREAL PROPERTY**

 
| 137 |   | 306 E FORDHAM RD            |   | KINGSBRIDGE RD   |   | BRONX    |   | NEW YORK |   | 10468 |
|-----|--------|-----------------------------|--------|------------------|--------|----------|--------|----------|--------|-------|
| 150 |   | 963 SOUTHERN BLVD           |   | HUNTSPOINT       |   | BRONX    |   | NEW YORK |   | 10459 |
| 182 |   | 190 W 231ST ST              |   | BROADWAY         |   | BRONX    |   | NEW YORK |   | 10463 |
| 196 |   | 2939 3RD AVE                |   | E 152ND ST       |   | BRONX    |   | NEW YORK |   | 10455 |
| 275 |   | 2641 E TREMONT AVE          |   | WESTCHESTER AVE  |   | BRONX    |   | NEW YORK |   | 10461 |
| 288 |   | 1-13 KINGSBRIDGE RD         |   | JEROME AVE       |   | BRONX    |   | NEW YORK |   | 10458 |
| 322 |   | 4026A BOSTON ROAD           |   | DYRE AVE         |   | BRONX    |   | NEW YORK |   | 10475 |
| 347 |   | 1591 WESTCHESTER AVE        |   | MANOR AVE        |   | BRONX    |   | NEW YORK |   | 10472 |
| 459 |   | 58 E FORDHAM RD             |   | JEROME AVE       |   | BRONX    |   | NEW YORK |   | 10458 |
| 478 |   | 1888 WESTCHESTER AVE        |   | WHITE PLAINS RD  |   | BRONX    |   | NEW YORK |   | 10472 |
| 128 |   | 386 FULTON ST               |   | FULTON MALL      |   | BROOKLYN |   | NEW YORK |   | 11201 |
| 144 |   | 522 FULTON ST               |   | FLATBUSH AVE     |   | BROOKLYN |   | NEW YORK |   | 11201 |
| 147 |   | 749 BROADWAY                |   | GRAHAM AVE       |   | BROOKLYN |   | NEW YORK |   | 11206 |
| 154 |   | 44 COURT ST                 |   | JORALEMON ST     |   | BROOKLYN |   | NEW YORK |   | 11201 |
| 167 |   | 416 KNICKERBOCKER AVE       |   | HARMAN ST        |   | BROOKLYN |   | NEW YORK |   | 11237 |
| 172 |   | 1181 LIBERTY AVE            |   | GRANT/ELDERT AVE |   | BROOKLYN |   | NEW YORK |   | 11208 |
| 178 |   | 1450 ROCKAWAY PKWY          |   | GLENWOOD AVE     |   | BROOKLYN |   | NEW YORK |   | 11236 |
| 183 |   | 1520 AVENUE J               |   | E 16TH ST        |   | BROOKLYN |   | NEW YORK |   | 11230 |
| 184 |   | 724 FLATBUSH AVE            |   | PARKSIDE AVE     |   | BROOKLYN |   | NEW YORK |   | 11226 |
| 192 |   | 3612 NOSTRAND AVE           |   | AVENUE W         |   | BROOKLYN |   | NEW YORK |   | 11229 |
| 201 |   | 1417 AVENUE U               |   | E 14TH ST        |   | BROOKLYN |   | NEW YORK |   | 11229 |
| 211 |   | 4402 13TH AVE               |   | 44TH ST          |   | BROOKLYN |   | NEW YORK |   | 11219 |
| 219 |   | 30-90 OCEAN AVE             |   | VOORHES AVE      |   | BROOKLYN |   | NEW YORK |   | 11225 |
| 234 |   | 2520 FLATBUSH AVE           |   | KINGS PLAZA      |   | BROOKLYN |   | NEW YORK |   | 11234 |
| 277 |   | 1517 CORTELYOU RD           |   | MARLBOROUGH RD   |   | BROOKLYN |   | NEW YORK |   | 11226 |
| 285 |   | 101-105 BRIGHTON BEACH  AVE |   | OCEAN PARKWAY    |   | BROOKLYN |   | NEW YORK |   | 11235 |
| 286 |   | 1833  NOSTRAND AVE     |   | AVENUE D         |   | BROOKLYN |   | NEW YORK |   | 11226 |
| 294 |   | 2141 NOSTRAND AVE           |   | FLATBUSH AVE     |   | BROOKLYN |   | NEW YORK |   | 11210 |
| 298 |   | 16 COURT ST                 |   | MONTAGUE ST      |   | BROOKLYN |   | NEW YORK |   | 11201 |
| 301 |   | 520 KINGS HIGHWAY           |   | 3RD ST           |   | BROOKLYN |   | NEW YORK |   | 11223 |
| 305 |   | ONE REMSEN AVE              |   | EMPIRE AVE       |   | BROOKLYN |   | NEW YORK |   | 11212 |

 

----

 
| 309 |   | 6717 4TH AVE       |   | SENATOR ST         |   | BROOKLYN  |   | NEW YORK |   | 11220 |
|-----|--------|--------------------|--------|--------------------|--------|-----------|--------|----------|--------|-------|
| 312 |   | 296 FLATBUSH AVE   |   | PROSPECT PLACE     |   | BROOKLYN  |   | NEW YORK |   | 11217 |
| 316 |   | 1110 KINGS HIGHWAY |   | CONEY ISLAND AVE   |   | BROOKLYN  |   | NEW YORK |   | 11229 |
| 331 |   | 168-174 MYRTLE AVE |   | PRINCE ST          |   | BROOKLYN  |   | NEW YORK |   | 11201 |
| 342 |   | 1805 AVENUE U      |   | 18TH ST            |   | BROOKLYN  |   | NEW YORK |   | 11229 |
| 349 |   | 750 NEW YORK AVE   |   | CLARKSON AVE       |   | BROOKLYN  |   | NEW YORK |   | 11203 |
| 367 |   | 5423 SECOND AVENUE |   | 55TH STREET        |   | BROOKLYN  |   | NEW YORK |   | 11220 |
| 444 |   | 2265 RALPH AVE     |   | AVENUE L           |   | BROOKLYN  |   | NEW YORK |   | 11234 |
| 464 |   | 436 86TH ST        |   | 4TH AVE            |   | BROOKLYN  |   | NEW YORK |   | 11209 |
| 474 |   | 2931 AVENUE U      |   | NOSTRAND AVE       |   | BROOKLYN  |   | NEW YORK |   | 11229 |
| 482 |   | 1401-07 KINGS HWY  |   | E 14TH             |   | BROOKLYN  |   | NEW YORK |   | 11229 |
| 101 |   | 37 BROADWAY        |   | EXCHANGE PLACE     |   | MANHATTAN |   | NEW YORK |   | 10006 |
| 102 |   | 250 BROADWAY       |   | PARK ROW           |   | MANHATTAN |   | NEW YORK |   | 10007 |
| 103 |   | 300 PARK AVE SOUTH |   | 22ND ST            |   | MANHATTAN |   | NEW YORK |   | 10010 |
| 104 |   | 401 PARK AVE SOUTH |   | 28TH ST            |   | MANHATTAN |   | NEW YORK |   | 10010 |
| 105 |   | 45 PINE ST         |   | WILLIAM ST         |   | MANHATTAN |   | NEW YORK |   | 10005 |
| 106 |   | 370 LEXINGTON AVE  |   | 40TH/41ST ST       |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 108 |   | 1150 6TH AVE       |   | 44TH/45TH ST       |   | MANHATTAN |   | NEW YORK |   | 10036 |
| 109 |   | 270 MADISON AVE    |   | 41ST/42ND ST       |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 110 |   | 99 JOHN ST         |   | GOLD ST/CLIFF ST   |   | MANHATTAN |   | NEW YORK |   | 10038 |
| 111 |   | 1430 BROADWAY      |   | 39TH/40TH ST       |   | MANHATTAN |   | NEW YORK |   | 10018 |
| 112 |   | 485 LEXINGTON AVE  |   | 47TH ST            |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 113 |   | 224 W 57TH  ST     |   | BROADWAY           |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 115 |   | 51 W 51ST ST       |   | OFF 6TH AVE        |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 116 |   | 144 E 44TH ST      |   | LEXINGTON/ 3RD AVE |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 117 |   | 41 E 58TH ST       |   | MADISON/ PARK      |   | MANHATTAN |   | NEW YORK |   | 10022 |
| 118 |   | 305 BROADWAY       |   | DUANE ST           |   | MANHATTAN |   | NEW YORK |   | 10007 |
| 119 |   | 525 7TH AVE        |   | 38TH ST            |   | MANHATTAN |   | NEW YORK |   | 10018 |
| 120 |   | 415 5TH AVE        |   | 37TH/38TH ST       |   | MANHATTAN |   | NEW YORK |   | 10016 |
| 121 |   | 215 W 34TH ST      |   | 7TH/8TH AVE        |   | MANHATTAN |   | NEW YORK |   | 10001 |
| 122 |   | 535 5TH AVE        |   | 44TH/45TH ST       |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 123 |   | 358 5TH AVE        |   | 33RD ST            |   | MANHATTAN |   | NEW YORK |   | 10118 |
| 124 |   | 1633 BROADWAY      |   | 50TH ST            |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 125 |   | 67 BROAD ST        |   | BEAVER ST          |   | MANHATTAN |   | NEW YORK |   | 10004 |
| 126 |   | 95 WALL ST         |   | WATER ST           |   | MANHATTAN |   | NEW YORK |   | 10005 |

 

----

 
| 127   |   | 49 E 52ND ST       |   | MADISON/ PARK    |   | MANHATTAN |   | NEW YORK |   | 10017 |
|-------|--------|--------------------|--------|------------------|--------|-----------|--------|----------|--------|-------|
| 129   |   | 55 E 55TH ST       |   | MADISON/ PARK    |   | MANHATTAN |   | NEW YORK |   | 10022 |
| 130   |   | 4 PARK AVE         |   | 34TH ST          |   | MANHATTAN |   | NEW YORK |   | 10016 |
| 131   |   | 1 WHITEHALL        |   | STONE ST         |   | MANHATTAN |   | NEW YORK |   | 10008 |
| 132   |   | 80 MAIDEN LANE     |   | WILLIAMS ST      |   | MANHATTAN |   | NEW YORK |   | 10038 |
| 134   |   | 100 W 57TH ST      |   | 5TH/ 6TH AVE     |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 138   |   | 333 7TH AVE        |   | 28TH ST          |   | MANHATTAN |   | NEW YORK |   | 10001 |
| 139   |   | 598 BROADWAY       |   | HOUSTON/PRINCE   |   | MANHATTAN |   | NEW YORK |   | 10012 |
| 140   |   | 405 LEXINGTON AVE  |   | 42ND ST          |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 143   |   | 24 E 14TH ST       |   | UNIVERSITY PL    |   | MANHATTAN |   | NEW YORK |   | 10003 |
| 145   |   | 1191 2ND AVE       |   | E 63RD ST        |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 146   |   | 2465 BROADWAY      |   | 91ST ST          |   | MANHATTAN |   | NEW YORK |   | 10025 |
| 148   |   | 279 W 125TH ST     |   | F. DOUGLAS BLVD  |   | MANHATTAN |   | NEW YORK |   | 10027 |
| 151   |   | 1279 3RD AVE       |   | 200 E 74TH ST    |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 152   |   | 666 3RD AVE        |   | 43RD ST          |   | MANHATTAN |   | NEW YORK |   | 10163 |
| 153   |   | 866 3RD AVE        |   | 53RD ST          |   | MANHATTAN |   | NEW YORK |   | 10022 |
| 155   |   | 2 PENN PLAZA       |   | 34TH ST/ 7TH AVE |   | MANHATTAN |   | NEW YORK |   | 10121 |
| 156   |   | 2307 BROADWAY      |   | 83RD/ 84TH ST    |   | MANHATTAN |   | NEW YORK |   | 10024 |
| 157   |   | 979 3RD AVE        |   | 58TH ST          |   | MANHATTAN |   | NEW YORK |   | 10022 |
| 158   |   | 22 W 48TH ST       |   | OFF 6TH AVE      |   | MANHATTAN |   | NEW YORK |   | 10036 |
| 159   |   | 378 6TH AVE        |   | WAVERLY PLACE    |   | MANHATTAN |   | NEW YORK |   | 10011 |
| 160   |   | 71 W 23RD ST       |   | OFF 6TH AVE      |   | MANHATTAN |   | NEW YORK |   | 10010 |
| 162   |   | 196 3RD AVE        |   | 18TH ST          |   | MANHATTAN |   | NEW YORK |   | 10003 |
| 164   |   | 251 E 86TH ST      |   | 2ND AVE          |   | MANHATTAN |   | NEW YORK |   | 10028 |
| 165   |   | 380 AMSTERDAM AVE  |   | 79TH ST          |   | MANHATTAN |   | NEW YORK |   | 10024 |
| 166   |   | 1185 6TH AVE       |   | 47TH ST          |   | MANHATTAN |   | NEW YORK |   | 10036 |
| 168   |   | 1467 1ST AVE       |   | 76TH ST          |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 169   |   | 155 E 34TH ST      |   | 3RD AVE          |   | MANHATTAN |   | NEW YORK |   | 10016 |
| 173   |   | 131 E 23RD ST      |   | LEXINGTON AVE    |   | MANHATTAN |   | NEW YORK |   | 10010 |
| 174   |   | 40 FULTON ST       |   | WATER ST         |   | MANHATTAN |   | NEW YORK |   | 10038 |
| 176 * |   | 29-33 7TH AVE      |   | 12TH ST          |   | MANHATTAN |   | NEW YORK |   | 10011 |
| 177   |   | 1290 AMSTERDAM AVE |   | 123RD ST         |   | MANHATTAN |   | NEW YORK |   | 10027 |
| 180   |   | 2108 3RD AVE       |   | 115TH/116TH ST   |   | MANHATTAN |   | NEW YORK |   | 10029 |
| 181   |   | 4 AMSTERDAM AVE    |   | 58TH ST          |   | MANHATTAN |   | NEW YORK |   | 10023 |

 

----

 
| 185 |   | 98 DELANCEY ST    |   | LUDLOW ST                    |   | MANHATTAN |   | NEW YORK |   | 10002 |
|-----|--------|-------------------|--------|------------------------------|--------|-----------|--------|----------|--------|-------|
| 186 |   | 322 8TH AVE       |   | 26TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10001 |
| 189 |   | 617 W 181ST ST    |   | ST. NICHOLAS/ WADSWORTH  AVE |   | MANHATTAN |   | NEW YORK |   | 10033 |
| 191 |   | 1231 MADISON AVE  |   | 89TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10128 |
| 194 |   | 2681-7 BROADWAY   |   | 102ND ST                     |   | MANHATTAN |   | NEW YORK |   | 10025 |
| 197 |   | 585 2ND AVE       |   | 32ND/33RD ST                 |   | MANHATTAN |   | NEW YORK |   | 10016 |
| 200 |   | 465  2ND AVE |   | 26TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10016 |
| 202 |   | 700 COLUMBUS AVE  |   | 94TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10025 |
| 208 |   | 2025 BROADWAY     |   | 69TH/70TH ST                 |   | MANHATTAN |   | NEW YORK |   | 10023 |
| 209 |   | 609 COLUMBUS AVE  |   | 89TH/90TH ST                 |   | MANHATTAN |   | NEW YORK |   | 10024 |
| 213 |   | 407 BROADWAY      |   | CANAL ST                     |   | MANHATTAN |   | NEW YORK |   | 10013 |
| 214 |   | 2760-62 BROADWAY  |   | 106TH ST                     |   | MANHATTAN |   | NEW YORK |   | 10025 |
| 217 |   | 625 8TH AVE       |   | 40TH STREET                  |   | MANHATTAN |   | NEW YORK |   | 10018 |
| 221 |   | 773 LEXINGTON AVE |   | 60TH/61ST ST                 |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 223 |   | 661 8TH AVE       |   | 42ND ST                      |   | MANHATTAN |   | NEW YORK |   | 10018 |
| 224 |   | 769 BROADWAY      |   | E 9TH ST                     |   | MANHATTAN |   | NEW YORK |   | 10003 |
| 225 |   | 2864 BROADWAY     |   | 111TH ST                     |   | MANHATTAN |   | NEW YORK |   | 10025 |
| 226 |   | 976 AMSTERDAM AVE |   | 108TH ST                     |   | MANHATTAN |   | NEW YORK |   | 10025 |
| 227 |   | 1345 1ST AVE      |   | 72ND ST                      |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 229 |   | 852 2ND AVE       |   | 45TH/46TH ST                 |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 230 |   | 1873 BROADWAY     |   | 62ND ST                      |   | MANHATTAN |   | NEW YORK |   | 10023 |
| 231 |   | 2589 BROADWAY     |   | 97TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10025 |
| 232 |   | 1498 YORK AVE     |   | 79TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 236 |   | 1524 2ND AVE      |   | 79TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 237 |   | 147 FULTON ST     |   | BROADWAY                     |   | MANHATTAN |   | NEW YORK |   | 10038 |
| 238 |   | 1187 1ST AVE      |   | 64TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 239 |   | 721 9TH AVE       |   | 49TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 241 |   | 1076 2ND AVE      |   | 57TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10022 |
| 242 |   | 401 E 86TH ST     |   | 1ST AVE                      |   | MANHATTAN |   | NEW YORK |   | 10028 |
| 243 |   | 931 LEXINGTON AVE |   | 68TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 245 |   | 135 E 125TH ST    |   | LEXINGTON AVE                |   | MANHATTAN |   | NEW YORK |   | 10035 |
| 246 |   | 777 6TH AVE       |   | 26TH ST                      |   | MANHATTAN |   | NEW YORK |   | 10001 |
| 247 |   | 4 W 4TH ST        |   | BROADWAY                     |   | MANHATTAN |   | NEW YORK |   | 10012 |
| 253 |   | 48-50 W 14TH ST   |   | BROADWAY                     |   | MANHATTAN |   | NEW YORK |   | 10011 |

 

----

 
| 260 |   | 77 7TH AVE                   |   | 14TH ST            |   | MANHATTAN |   | NEW YORK |   | 10011 |
|-----|--------|------------------------------|--------|--------------------|--------|-----------|--------|----------|--------|-------|
| 261 |   | 630 3RD AVE                  |   | 41ST ST            |   | MANHATTAN |   | NEW YORK |   | 10017 |
| 264 |   | 130 WILLIAM ST               |   | FULTON ST          |   | MANHATTAN |   | NEW YORK |   | 10038 |
| 265 |   | 123 3RD AVE                  |   | 14TH ST            |   | MANHATTAN |   | NEW YORK |   | 10003 |
| 266 |   | 253 W 72ND ST                |   | WEST END AVE       |   | MANHATTAN |   | NEW YORK |   | 10023 |
| 270 |   | 172 DYCKMAN ST               |   | SHERMAN ST         |   | MANHATTAN |   | NEW YORK |   | 10040 |
| 272 |   | 4 COLUMBUS CIRCLE            |   | 58TH ST            |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 276 |   | 1270 BROADWAY                |   | 33RD ST            |   | MANHATTAN |   | NEW YORK |   | 10001 |
| 281 |   | 1221 6TH AVE                 |   | 48TH ST            |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 282 |   | 1251 6TH AVE                 |   | 49TH ST            |   | MANHATTAN |   | NEW YORK |   | 10020 |
| 287 |   | 666 LEXINGTON AVE            |   | 56TH ST            |   | MANHATTAN |   | NEW YORK |   | 10022 |
| 289 |   | 280 BROADWAY                 |   | CHAMBERS ST        |   | MANHATTAN |   | NEW YORK |   | 10002 |
| 290 |   | 60 MADISON AVE               |   | 27TH ST            |   | MANHATTAN |   | NEW YORK |   | 10010 |
| 291 |   | 50 BOWERY                    |   | CANAL ST           |   | MANHATTAN |   | NEW YORK |   | 10002 |
| 292 |   | 1091 LEXINGTON AVE           |   | 76TH/77TH ST       |   | MANHATTAN |   | NEW YORK |   | 10021 |
| 293 |   | 140 W 23RD ST                |   | 6TH/7TH AVE        |   | MANHATTAN |   | NEW YORK |   | 10011 |
| 295 |   | 230 PARK AVE                 |   | VANDERBILT/46TH ST |   | MANHATTAN |   | NEW YORK |   | 10169 |
| 311 |   | 873 BROADWAY                 |   | 18TH/19TH ST       |   | MANHATTAN |   | NEW YORK |   | 10003 |
| 317 |   | 1915 3RD AVE                 |   | 106TH ST           |   | MANHATTAN |   | NEW YORK |   | 10029 |
| 318 |   | 300 E 39TH ST                |   | 2ND AVE            |   | MANHATTAN |   | NEW YORK |   | 10016 |
| 319 |   | 180 W 20TH ST                |   | 7TH/8TH AVE        |   | MANHATTAN |   | NEW YORK |   | 10011 |
| 321 |   | 1370 AVENUE OF THE  AMERICAS |   | 56TH ST            |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 327 |   | 1675 3RD AVE                 |   | 93RD/94TH ST       |   | MANHATTAN |   | NEW YORK |   | 10128 |
| 329 |   | 17 BATTERY PLACE             |   | WEST ST            |   | MANHATTAN |   | NEW YORK |   | 10004 |
| 335 |   | 320 WEST 145TH  STREET       |   | BRADHURST AVE      |   | MANHATTAN |   | NEW YORK |   | 10039 |
| 338 |   | 333 EAST 102ND  STREET       |   | 1ST AVENUE         |   | MANHATTAN |   | NEW YORK |   | 10029 |
| 339 |   | 125 E 86TH ST                |   | LEXINGTON AVE      |   | MANHATTAN |   | NEW YORK |   | 10028 |
| 344 |   | ONE PENN EAST                |   | 34TH ST/7TH AVE    |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 345 |   | 460 8TH AVE (ONE PENN  WEST) |   | 34TH ST/8TH AVE    |   | MANHATTAN |   | NEW YORK |   | 10019 |
| 346 |   | 111 WORTH STREET             |   | LAFAYETTE SREET    |   | MANHATTAN |   | NEW YORK |   | 10013 |
| 351 |   | 1749 1ST  AVENUE             |   | 91ST STREET        |   | MANHATTAN |   | NEW YORK |   | 10128 |
| 354 |   | 194 E 2ND ST                 |   | AVENUE B           |   | MANHATTAN |   | NEW YORK |   | 10009 |
| 361 |   | 4086 BROADWAY                |   | 173RD STREET       |   | MANHATTAN |   | NEW YORK |   | 10032 |
| 365 |   | 2150 BROADWAY                |   | WEST 76TH  STREET  |   | MANHATTAN |   | NEW YORK |   | 10023 |

 

----

 
| 366 |   | 2407 BROADWAY          |   | WEST 89TH  STREET |   | MANHATTAN     |   | NEW YORK   |   | 10024 |
|-----|--------|------------------------|--------|-------------------|--------|---------------|--------|------------|--------|-------|
| 368 |   | 931 FIRST AVENUE       |   | 51ST STREET       |   | MANHATTAN     |   | NEW YORK   |   | 10022 |
| 370 |   | 1479 THIRD AVENUE      |   | 84TH STREET       |   | MANHATTAN     |   | NEW YORK   |   | 10028 |
| 542 |   | 4 TIMES SQUARE         |   | BROADWAY/7TH AVE  |   | MANHATTAN     |   | NEW YORK   |   | 10036 |
| 222 |   | 608 COLUMBUS AVE       |   | 89TH/90TH ST      |   | MANHATTAN     |   | NEW YORK   |   | 10024 |
| 193 |   | 138 HILLSIDE BLVD      |   | WILLIS AVE        |   | NASSAU        |   | NEW YORK   |   | 11596 |
| 240 |   | 1596 UNION TPKE        |   | NEW HYDE PARK RD  |   | NASSAU        |   | NEW YORK   |   | 11040 |
| 259 |   | 1149 MERRICK AVE       |   | JERUSALEM AVE     |   | NASSAU        |   | NEW YORK   |   | 11566 |
| 269 |   | 1338-40 BROADWAY       |   | EVERIT AVE        |   | NASSAU        |   | NEW YORK   |   | 11557 |
| 284 |   | 901 CARMANS RD         |   | BAILEY DR         |   | NASSAU        |   | NEW YORK   |   | 11758 |
| 341 |   | 341 ROCKAWAY TURNPIKE  |   | PENINSULA BLVD    |   | NASSAU        |   | NEW YORK   |   | 11559 |
| 445 |   | 4250 JERUSALEM AVE     |   | HICKSVILLE RD     |   | NASSAU        |   | NEW YORK   |   | 11758 |
| 451 |   | 710 FRANKLIN AVE       |   | FRANKLIN SQ       |   | NASSAU        |   | NEW YORK   |   | 11010 |
| 452 |   | 530 JERICHO TPKE       |   | WARDWELL RD       |   | NASSAU        |   | NEW YORK   |   | 11501 |
| 458 |   | 265 N BROADWAY         |   | PRINCESS ST       |   | NASSAU        |   | NEW YORK   |   | 11801 |
| 467 |   | 1445 HEMPSTEAD TPKE    |   | SCHOOL RD         |   | NASSAU        |   | NEW YORK   |   | 11003 |
| 469 |   | 5601 MERRICK RD        |   | ROOSEVELT BLVD    |   | NASSAU        |   | NEW YORK   |   | 11758 |
| 441 |   | 491 BELLMORE AVE       |   | MERRICK AVE N     |   | NASSAU        |   | NEW YORK   |   | 11554 |
| 136 |   | 707 BROAD ST           |   | RAYMOND ST        |   | NEWARK        |   | NEW JERSEY |   | 07102 |
| 258 |   | 176 MAIN ST            |   | HOYM ST           |   | FORT LEE      |   | NEW JERSEY |   | 07024 |
| 267 |   | 11 EDGEWATER TOWN CTR  |   | HILLIARD          |   | EDGEWATER     |   | NEW JERSEY |   | 07020 |
| 283 |   | 1560 TEANECK RD        |   | TYRON AVE         |   | TEANECK       |   | NEW JERSEY |   | 07666 |
| 303 |   | 5 - 8 PATH PLAZA       |   | JOURNAL SQ        |   | JERSEY CITY   |   | NEW JERSEY |   | 07306 |
| 304 |   | ONE MAYWOOD AVE        |   | W ESSEX ST        |   | MAYWOOD       |   | NEW JERSEY |   | 07607 |
| 306 |   | 52 RIVER DRIVE SO      |   | NEWPORT PKWY      |   | JERSEY CITY   |   | NEW JERSEY |   | 07310 |
| 310 |   | 325 SPRINGFIELD AVENUE |   | MORRIS AVE.       |   | NEWARK        |   | NEW JERSEY |   | 07103 |
| 315 |   | 4901 BERGENLINE        |   | 49TH ST           |   | WEST NEW YORK |   | NEW JERSEY |   | 07093 |
| 340 |   | 360 ESSEX STREET       |   | PROSPECT AVE      |   | HACKENSACK    |   | NEW JERSEY |   | 07601 |
| 343 |   | 909 BROAD ST           |   | GREEN ST          |   | NEWARK        |   | NEW JERSEY |   | 07102 |
| 363 |   | 3196 KENNEDY BLVD      |   | 32ND STREET       |   | UNION CITY    |   | NEW JERSEY |   | 07087 |
| 446 |   | 517-519 BROADWAY       |   | 5TH ST            |   | BAYONNE       |   | NEW JERSEY |   | 07002 |
| 161 |   | 3915 MAIN ST           |   | ROOSEVELT AVE     |   | QUEENS        |   | NEW YORK   |   | 11354 |
| 163 |   | 8101 BROADWAY          |   | PETTIT AVE        |   | QUEENS        |   | NEW YORK   |   | 11373 |
| 171 |   | 4801 QUEENS BLVD       |   | 48TH ST           |   | QUEENS        |   | NEW YORK   |   | 11375 |
| 179 |   | 5711 MYRTLE AVE        |   | SENECA AVE        |   | QUEENS        |   | NEW YORK   |   | 11385 |

 

----

 
| 187 |   | 60-02 ROOSEVELT AVE                             |   | WOODSIDE AVE                |   | QUEENS        |   | NEW YORK |   | 11377 |
|-----|--------|-------------------------------------------------|--------|-----------------------------|--------|---------------|--------|----------|--------|-------|
| 188 |   | 93-01 SUTPHIN BLVD                              |   | ARCHER AVE                  |   | QUEENS        |   | NEW YORK |   | 11435 |
| 198 |   | 3730 JUNCTION BLVD                              |   | OFF 37TH AVE                |   | QUEENS        |   | NEW YORK |   | 11373 |
| 199 |   | 107-16 CONTINENTAL AVE                          |   | AUSTIN ST                   |   | QUEENS        |   | NEW YORK |   | 11375 |
| 206 |   | 116-02 BEACH CHANNEL  DRIVE (ground lease only) |   | ROCKAWAY FRWY               |   | QUEENS        |   | NEW YORK |   | 11694 |
| 251 |   | 230-01 MERRICK BLVD                             |   | FRANCIS LEWIS BLVD          |   | QUEENS        |   | NEW YORK |   | 11413 |
| 252 |   | 160-04 JAMAICA AVE                              |   | 160TH ST                    |   | QUEENS        |   | NEW YORK |   | 11432 |
| 255 |   | 37-15 82ND ST                                   |   | 37TH AVE                    |   | QUEENS        |   | NEW YORK |   | 11372 |
| 256 |   | 249-46 HORACE HARDING                           |   | MARATHON PKWY               |   | QUEENS        |   | NEW YORK |   | 11362 |
| 268 |   | 24-28 BELL BLVD                                 |   | 23RD AVE                    |   | QUEENS        |   | NEW YORK |   | 11360 |
| 271 |   | 84-32 JAMAICA AVE                               |   | FOREST PKWY                 |   | QUEENS        |   | NEW YORK |   | 11421 |
| 314 |   | 54-11 MYRTLE AVE                                |   | WYCKOFF AVE                 |   | QUEENS        |   | NEW YORK |   | 11385 |
| 325 |   | 2856-2860 STEINWAY ST                           |   | 28TH AVE                    |   | QUEENS        |   | NEW YORK |   | 11103 |
| 328 |   | 115-02 LIBERTY AVE                              |   | 116TH ST                    |   | QUEENS        |   | NEW YORK |   | 11419 |
| 332 |   | 51-02 NORTHERN BLVD                             |   | 51ST ST                     |   | QUEENS        |   | NEW YORK |   | 11377 |
| 337 |   | 80-02 KEW GARDENS RD                            |   | QUEENS BLVD/UNION TPK       |   | QUEENS        |   | NEW YORK |   | 11415 |
| 355 |   | 161-21 JAMAICA AVE                              |   | 161ST ST                    |   | QUEENS        |   | NEW YORK |   | 11432 |
| 357 |   | 113-03 BEACH CHANNEL  DRIVE                     |   | ROCKAWAY FRWY               |   | QUEENS        |   | NEW YORK |   | 11694 |
| 360 |   | 103-09 LIBERTY AVENUE                           |   | 103RD STREET                |   | QUEENS        |   | NEW YORK |   | 11417 |
| 449 |   | 73-01 37TH AVE                                  |   | 73RD STREET                 |   | QUEENS        |   | NEW YORK |   | 11372 |
| 454 |   | 156-44 NORTHERN BLVD                            |   | ROOSEVELT AVE               |   | QUEENS        |   | NEW YORK |   | 11354 |
| 463 |   | 42-28 MAIN ST                                   |   | SANFORD AVE                 |   | QUEENS        |   | NEW YORK |   | 11351 |
| 466 |   | 66-56 GRAND AVE                                 |   | 66TH ST                     |   | QUEENS        |   | NEW YORK |   | 11378 |
| 473 |   | 257-09 UNION TPKE                               |   | 257TH ST                    |   | QUEENS        |   | NEW YORK |   | 11004 |
| 475 |   | 198-15 HORACE HARDING  EXPY                     |   | FRANCIS LEWIS BLVD          |   | QUEENS        |   | NEW YORK |   | 11365 |
| 477 |   | 95-11 63RD DR                                   |   | QUEENS BLVD/ JUNCTION  BLVD |   | QUEENS        |   | NEW YORK |   | 11374 |
| 300 |   | 80-30 JAMAICA AVE                               |   | WOODHAVEN BLVD              |   | QUEENS        |   | NEW YORK |   | 11421 |
| 299 |   | 52 ROCKLAND PLAZA                               |   | N MIDDLETON RD              |   | ROCKLAND      |   | NEW YORK |   | 10954 |
| 207 |   | 4363 AMBOY ROAD                                 |   | ROBINSON AVE                |   | STATEN ISLAND |   | NEW YORK |   | 10312 |
| 278 |   | 1795 VICTORY BLVD                               |   | MANOR RD                    |   | STATEN ISLAND |   | NEW YORK |   | 10314 |
| 279 |   | 3283 RICHMOND AVE                               |   | ARTHUR KILL RD              |   | STATEN ISLAND |   | NEW YORK |   | 10314 |
| 280 |   | 630 FOREST AVE                                  |   | REGAN AVE                   |   | STATEN ISLAND |   | NEW YORK |   | 10310 |
| 302 |   | 1010 ROSSVILLE AVE                              |   | WOODROW RD                  |   | STATEN ISLAND |   | NEW YORK |   | 10309 |

 

----

 
| 334    |   | 2107 RICHMOND ROAD     |   | LINCOLN AVENUE     |   | STATEN ISLAND |   | NEW YORK   |   | 10306  |
|--------|--------|------------------------|--------|--------------------|--------|---------------|--------|------------|--------|--------|
| 336    |   | 2145 HYLAN BLVD        |   | MIDLAND AVE        |   | STATEN ISLAND |   | MEW YORK   |   | 10306  |
| 352    |   | 31-55 AMBOY RD         |   | CLARKE AVE         |   | STATEN ISLAND |   | NEW YORK   |   | 10306  |
| 455    |   | 2456 RICHMOND AVE      |   | RICHMOND HILL ROAD |   | STATEN ISLAND |   | NEW YORK   |   | 10314  |
| 479    |   | 1480 FOREST AVE        |   | MORNINGSTAR RD     |   | STATEN ISLAND |   | NEW YORK   |   | 10302  |
| 257    |   | 1320-48 STONY BROOK RD |   | NESCONSET HWY      |   | SUFFOLK       |   | NEW YORK   |   | 11790  |
| 456    |   | 1851 SUNRISE HWY       |   | BRENTWOOD RD       |   | SUFFOLK       |   | NEW YORK   |   | 11706  |
| 460    |   | 380 W SUNRISE HWY      |   | WAVERLY AVE        |   | SUFFOLK       |   | NEW YORK   |   | 11772  |
| 204    |   | 678 MCLEAN AVE         |   | LONG MEADOW RD     |   | WESTCHESTER   |   | NEW YORK   |   | 10704  |
| 205    |   | 42 W BROAD ST          |   | FLEETWOOD AVE      |   | WESTCHESTER   |   | NEW YORK   |   | 10552  |
| 273    |   | 875 MCLEAN AVE         |   | HARDING AVE        |   | WESTCHESTER   |   | NEW YORK   |   | 10704  |
| 274    |   | 1 N CENTRAL AVE        |   | W HARTSDALE AVE    |   | WESTCHESTER   |   | NEW YORK   |   | 10530  |
| 448    |   | 100 MAMARONECK AVE     |   | QUARROPAS ST       |   | WESTCHESTER   |   | NEW YORK   |   | 10601  |
| 453    |   | 421 BOSTON POST RD     |   | HIGH ST            |   | WESTCHESTER   |   | NEW YORK   |   | 10573  |
| 461    |   | 2568 CENTRAL PARK AVE  |   | FORT HILL AVE      |   | WESTCHESTER   |   | NEW YORK   |   | 10710  |
| 920(1) |   | 50-02 55TH  AVE        |   |               |   | QUEENS        |   | NEW YORK   |   | 11378  |
| 926    |   | 22-20 91ST  STREET     |   |               |   | NORTH BERGEN  |   | NEW JERSEY |   | 07047  |
| 270R   |   | 188-192 DYCKMAN STREET |   |               |   | MANHATTAN     |   | NEW YORK   |   |   |
| 297    |   | 900 8TH  AVENUE        |   |               |   | MANHATTAN     |   | NEW YORK   |   |   |
| 326    |   | 1213 CLOVE ROAD        |   |               |   | STATEN ISLAND |   | NEW YORK   |   |   |
| 333    |   | 153-01 JAMAICA AVENUE  |   |               |   | JAMAICA       |   | NEW YORK   |   |   |
| 353    |   | 1265 BOSTON POST ROAD  |   |               |   | LARCHMONT     |   | NEW YORK   |   |   |
| 358    |   | 204-19 HILLSIDE AVENUE |   |               |   | QUEENS        |   | NEW YORK   |   |   |
| 359    |   | 180-202 MCLEAN AVENUE  |   |               |   | YONKERS       |   | NEW YORK   |   |   |
| 362    |   | 2-6 MIDLAND AVENUE     |   |               |   | NYACK         |   | NEW YORK   |   |   |
| 364    |   | 178-20 HILLSIDE AVENUE |   |               |   | QUEENS        |   | NEW YORK   |   |   |
| 369    |   | 1490 MADISON AVENUE    |   |               |   | MANHATTAN     |   | NEW YORK   |   |   |
| 371    |   | 1650 GRAND CONCOURSE   |   |               |   | BRONX         |   | NEW YORK   |   |   |
| 524    |   | 1627 BROADWAY          |   |               |   | MANHATTAN     |   | NEW YORK   |   |   |
| TBD    |   | 250 WEST 57TH  STREET  |   |               |   | MANHATTAN     |   | NEW YORK   |   |   |

 

----

(1)                                  DuaneReade has been notified that approximately 94,000 sq. feet of the total plot of590,000 sq. ft. may be subject to a condemnation proceeding by the NY FireDepartment.  The entire affected area isthe parking lot (not the building). These proceedings are not actively being pursued by the NY FireDepartment at this time (and nothing has happened for over two years), butthere can be no assurance as to the outcome of this proceeding if it is everinstituted.  Duane Reade will be able tofind alternate warehouse space, if necessary.

 

* includes 02/23/04acquisition of Mayfair Chemists, located at 21 7th Avenue & 12thStreet.

 

----

 

**SCHEDULE3.06**

 

**DISCLOSEDMATTERS**

 

**1.****             **Duane Reade Inc., SecuritiesLitigation, U.S.D.C.  S.D.N.Y. Case No.1:02 CV 6478 (NRB).  Class action suitson behalf of shareholders who purchased common stock between April 1, 2002 andJuly 24, 2002, inclusive, alleging violation of federal securities laws.  The complaint alleges that Duane Reade Inc.violated the federal securities laws by issuing materially false and misleadingstatements during the class period.  OnDecember 1, 2003, the district judge granted Duane Reade Inc.’s motion todismiss the plaintiffs’ action, with prejudice. The plaintiffs have appealed the decision.

 

**2.****             ***Ansoumanav. Gristedes*, U.S.D.C.  S.D.N.Y.Case No. 00-CV-0253 (ADH)(DFE).  DuaneReade Inc. is a defendant in a class action suit regarding alleged violationsof the Fair Labor Standards Act as to a group of individuals who provideddelivery services on a contract basis to Duane Reade Inc.  In December 2002, the judge in the actionissued a partial summary judgment in favor of a subclass of the plaintiffs andagainst Duane Reade Inc.  In December2003, Duane Reade settled the issue of the amount of liability to theplaintiffs without any admission of wrongdoing and in an amount consistent withDuane Reade’s previously established reserves. The amount of attorney’s fees owed to the plaintiffs’ attorneys remainsan open issue in the case.

 

**3.****             ***Disabledin Action of Metropolitan New York, Inc. v. Duane Reade*, U.S.D.C.S.D.N.Y. Case No. 01-CV-4692 (WHP). Duane Reade Inc. is the defendant in a suit for alleged violations ofthe Americans with Disabilities Act (“ADA”). Settlement discussions are active. However, it is likely at this stage that a portion of the case will belitigated as the parties have been unable to reach agreement as therequirements of the ADA with respect to two issues.

 

**4.****             **Cardinal Health Litigation.  Duane Reade Inc. is involved in an ongoingdispute with Cardinal Health, a former supplier of pharmaceuticalproducts.  Both parties have claimsagainst the other involving, among other claims, breach of contract, promissoryestoppel and unjust enrichment.  DuaneReade Inc. is seeking from Cardinal an unspecified amount of damages andpunitive damages of at least $20 million. Cardinal is seeking approximately $18 million in damages plus attorney’sfees and interest.  Non-party discoveryin the case has concluded and it is expected to go to trial some time in late2004 or 2005.

 

**5.****             ***Irving Kroop, et al. v. Duane Reade*, NY, NY et al., 00 Civ. 9841 et al.  Trustees of several union benefitfunds have brought suit alleging that Duane Reade Inc. did not make certainrequired contributions to these funds from January 2000 through August2001.  The plaintiffs have recently fileda motion seeking summary judgment of $2.29 million of claims for allegedunderstanding and related penalties and interest.  In addition, at various times, the plaintiffshave stated that they believe Duane Reade Inc. may owe additional amounts.  However, any additional amounts that theplaintiffs may claim are not known at this time.  Duane Reade has filed a motion opposing theseclaims.

 

----

 

**6.****             **Allied Trades Council Dispute.  Duane Reade Inc. is party to an NLRB administrativeproceeding regarding a dispute with the Allied Trades Council over whether anegotiating impasse was reached between Duane Reade Inc. and the union in2001.  The Allied Trades Councilrepresents employees in 139 Duane Reade stores and was party to a collectivebargaining agreement that had an expiration date of August 31, 2001.  The bargaining over a new term for thecollective bargaining agreement was not successful, and upon declaring impassesat different times, the company unilaterally made changes in certain terms andconditions of employment.  On February18, 2004, an administrative law judge (ALJ) who had reviewed various mattersrelated to this proceeding issued a decision and related recommendations, whichconcluded that the parties were not at impasse. The remedies recommended by the ALJ included, among other things, arequirement that Duane Reade Inc. make its employees whole by reimbursing themfor expenses ensuing from the company’s failure to make contributions tocertain union funds and to make such funds whole, plus interest.  If this recommendation is adopted by the fullNLRB and enforced by a circuit court of appeals, it could result in Duane ReadeInc. being required to contribute amounts that have yet to be determined intothe union’s pension benefit, health and welfare and vacation funds.  Any potential required contributionsresulting from a final judicial determination of this matter would potentiallybe subject to offset by a portion of the amounts that Duane Reade Inc. had paidfor similar benefits provided to employees represented by the Allied TradesCouncil.  Because this is just the firstphase of a long and complicated administrative process likely to be followed bya judicial review of the NLRB findings, the final outcome cannot be reliablydetermined at this time.  The ALJ’srecommendation is not a binding order and has no force and effect of law.  Rather, it is a recommendation to the fullNLRB in Washington, D.C., which will conduct a review at some point in the futureand decide to uphold, reject or modify the recommendation.  The full NLRB decision is also subject tojudicial review by a circuit court of appeals and a compliance hearing beforeany financial remedy can be determined with specificity.  Duane Reade Inc. recorded a pre-tax charge of$12.6 million for the year ended December 27, 2003 and an additional pre-taxcharge of $1.1 million in the quarter ended March 27, 2004.  These charges represent Duane Reade Inc.’s currentbest estimate of the loss that would result upon application of the ALJ’srecommendation.  Duane Reade Inc. notesthat such charge is based upon the facts available to it at the time and suchcharges could be subject to significant modification in the future, upon reviewby the full NLRB, the Federal Circuit of Appeals and completion of a compliancehearing and any appeals relating to the outcome of that hearing.  These charges reflect the amount ofcontributions that Duane Reade Inc. did not make into the vacation benefitfunds for the period from July 1, 2001 through March 27, 2004, and the amountof contributions that Duane Reade Inc. did not make into the pension and healthand welfare funds from the August 31, 2001 expiration of the contract throughMarch 27, 2004, with the combined amounts reduced by a portion of the benefitsDuane Reade Inc. paid directly to or for the benefit of these employees overthe same periods.  They also include aninterest cost for these net contributions from the date they would have beenpaid until March 27, 2004.

 

**7.****             **Litigation Relating to the RexTransaction.  Duane Reade Inc. is awareof six purported class action complaints challenging the Rex Transaction thathave been filed in the Court of Chancery of the State of Delaware (the “DelawareComplaints”), and three purported

 

----

 

class action complaintsthat have been filed in the Supreme Court of the State of New York (the “New YorkComplaints”).  Two of the New YorkComplaints have been voluntarily dismissed without prejudice.  Both the Delaware Complaints and the New YorkComplaints named Mr. Anthony Cuti and certain other members of the board ofdirectors of Duane Reade Inc., certain executive officers and Duane Reade Inc.as defendants.  Four of the DelawareComplaints name Oak Hill Capital Partners, L.P. as a defendant.  One of the dismissed New York Complaintsnamed Oak Hill Capital Partners, L.P. as a defendant.  The Delaware Complaints were consolidated onJanuary 28, 2004, and on April 8, 2004 the plaintiffs in the Delaware actionsfiled a consolidated class action complaint. The consolidated complaint alleges that defendants failed to disclosematerial information in the preliminary proxy statement, which was filed withthe SEC on March 19, 2004.

 

Plaintiffsseek, among other things, an order that the complaints are properlymaintainable as a class action, a declaration that defendants have breachedtheir fiduciary duties and other duties, injunctive relief, an unspecifiedamount of monetary damages, attorneys’ fees, costs and expenses and any such otherand further relief as the court may deem just and proper.  Duane Reade Inc. has received a letter, datedJune 14, 2004, from co-lead counsel for the plaintiffs in the stockholderlitigation relating to the transaction expressing “substantial concern” overOak Hill’s proposal, which was announced in a press release on June 14, 2004,to reduce the per share price set forth in the original merger agreement from$17.00 to $16.00.

 

**ENVIRONMENTAL**

 

None.

 

**MATERIALACTIONS**

 

None.

 

----

 

**SCHEDULE3.09**

 

**TAXES**

 
| **Loan Party**   | ** ** | **Description**                                                                                               | ** ** | **Taxing  Jurisdiction**                           |
|------------------|------------|---------------------------------------------------------------------------------------------------------------|------------|----------------------------------------------------|
| Duane Reade Inc. |       | Audit of NYS Franchise  Tax Returns of Duane Reade Inc. for the years ending 12/27/97, 12/25/99 and  12/30/00 |       | New York State  Department of Taxation and Finance |

 

Recent New York State taxrulings may require Duane Reade Inc. to provide reserves for periods prior to2003.  However, such reserves are notexpected to exceed $5.0 million or to have any short term cash flow impact dueto applicable prior period carry forward losses.

 

On July 14, 2004, theCompany settled this audit in the amount of $142,478, including additionaltaxes of $113,950 attributable to the reallocation of subsidiary capital and$28,528 of accumulated interest. The Company also agreed to relinquish $5.0million of the existing Net Operating Loss (NOL) carryforward. Although theseyears technically remain open until the associated NOL’s are entirely consumed,it is unlikely that New York State, having agreed to the audit settlement, willrevisit these periods.

 

----

 

**SCHEDULE3.12**

 

**SUBSIDIARIES**

 

Duane Reade Inc., theconsolidated parent company, maintains a 100% ownership interest in DRI I Inc.,Duane Reade Realty, Inc. and Duane Reade International, Inc. Duane Reade Inc.also has a 99% ownership interest in Duane Reade, a New York GeneralPartnership.  The remaining 1% interestin the Duane Reade General Partnership is owned by DRI I Inc.  After closing of the Rex Transaction, DuaneReade Holdings, Inc. will have a 100% ownership interest in Duane Reade Inc.

 

----

 

**SCHEDULE3.13**

 

**INSURANCE**

 

**InsuranceMaintained By or on Behalf of Loan Parties and Subsidiaries**

 
| **Coverage**    | ** ** | **Insurance  Provider**                       | ** ** | **Policy Number**                                                                       | ** ** | **Coverage  Limit**             | ** ** | **Current  Insurance  Premium** | ** ** | **Policy  Period** |
|-----------------|------------|-----------------------------------------------|------------|-----------------------------------------------------------------------------------------|------------|---------------------------------|------------|---------------------------------|------------|--------------------|
| ** **      | ** ** | ** **                                    | ** ** | ** **                                                                              | ** ** | ** **                      | ** ** | ** **                      | ** ** | ** **         |
| NY Workers Comp |       | The State Ins.  Fund                          |       | G 1051 293-7                                                                            |       | Fixed Dollar                    |       | $                               | 1,550,504  |               | 3/1/04 – 2/28/05 |
|            |       |                                          |       |                                                                                    |       |                            |       |                            |       |               |
| NJ Workers Comp |       | AIG/Granite  State Ins. Co.                   |       | WC 00816625900                                                                          |       | Fixed Dollar                    |       | $                               | 56,483     |               | 8/1/03 – 7/31/04 |
|            |       |                                          |       |                                                                                    |       |                            |       |                            |       |               |
| Property/Boiler |       | FM Global /  Commonwealth                     |       | Various Layers                                                                          |       | $150 Million -  $500,000 SIR    |       | $                               | 1,497,500  |               | 10/1/03 –  9/30/04 |
|            |       |                                          |       |                                                                                    |       |                            |       |                            |       |               |
| Auto            |       | Zurich                                        |       | BAP 2984069-03                                                                          |       | G/L & Coll.  - $100,000 SIR |       | $                               | 240,678    |               | 10/1/03 –  9/30/04 |
|            |       |                                          |       |                                                                                    |       |                            |       |                            |       |               |
| Umbrella        |       | National Union /  Gtr.  Amer. / St. Paul |       | AIG – BE 2977853  Gtr. Amer. – TUE 3567566 04  St. Paul – Q1 01090008660 |       | $100 Million -  $10,000 SIR     |       | $                               | 1,125,000  |               | 10/1/03 –  9/30/04 |
|            |       |                                          |       |                                                                                    |       |                            |       |                            |       |               |
| D&O         |       | National Union  Fire / Axis / Ace             |       | AIG – 214-54-14  Axis – ANN 0054  Ace – DOX G21658236001                 |       | $50 Million -  $2,500,000 SIR   |       | $                               | 1,304,800  |               | 5/9/04 – 8/9/04 |
|            |       |                                          |       |                                                                                    |       |                            |       |                            |       |               |
| Crime           |       | Nat’l Union                              |       | 360-77-62                                                                               |       | $1 Million -  $50,000 SIR       |       | $                               | 10,067     |               | 10/1/03 –  9/30/04 |

 

----

 
| **Coverage**      | ** ** | **Insurance  Provider** | ** ** | **Policy Number** | ** ** | **Coverage  Limit**               | ** ** | **Current  Insurance  Premium** | ** ** | **Policy  Period** |
|-------------------|------------|-------------------------|------------|-------------------|------------|-----------------------------------|------------|---------------------------------|------------|--------------------|
|              |       |                    |       |              |       |                              |       |                            |       |               |
| General Liability |       | Zurich                  |       | GLO 2984070-03    |       | $15 Million -  $250,000 SIR/CLAIM |       | $                               | 879,315    |               | 10/1/03 –  9/30/04 |
|                   |            |                         |            |                   |            |                                   |            |                                 |            |                    |  |

 

SIR = Self InsuredRetention

 

----

 

**SCHEDULE 3.14**

 

**LABOR MATTERS**

 

Reference is made to item6 of Schedule 3.06.

 

----

 

**SCHEDULE 3.16(B)**

 

**FEDERAL RESERVE REGULATIONS**

 

A portion of the proceedsof the Loans may be used to repay indebtedness under the Convertible Indenture.

 

----

 

**SCHEDULE6.01**

 

**INDEBTEDNESS**

 

Duane Reade 2.1478%Senior Convertible Notes due 2022 in the outstanding amount of $201,031,887.

 

Capital Lease betweenDuane Reade Inc. and IBM Credit Corporation, dated March 22, 2002.

 

----

 

**SCHEDULE 6.02**

 

**LIENS**

 

**Record of UCC Filings Found in Each Search:**

 
| **Filing** | ** ** | **Secured Party  Name**    | ** ** | **Debtor Name**          | ** ** | **Filing  Jurisdiction** | ** ** | **Record  Date** | ** ** | **File #** | ** ** | **Related  UCC-1 File #** | ** ** | **Description**                                                                                            |
|------------|------------|----------------------------|------------|--------------------------|------------|--------------------------|------------|------------------|------------|------------|------------|---------------------------|------------|------------------------------------------------------------------------------------------------------------|
| UCC1       |       | Matrix Funding Corporation |       | Rock Bottom Stores, Inc. |       | NY SoS                   |       | 07/07/97         |       | 139656     |       | —                    |       | IBM Point of Sale equipment-Funding Agreement 10/14/96                                                     |
| UCC3       |       | Matrix Funding Corporation |       | Rock Bottom Stores, Inc. |       | NY SoS                   |       | 11/24/97         |       | 242625     |       | 139656                    |       | Amendment- original property description deleted & new description  of IBM Sale Equip. added           |
| UCC3       |       | Matrix Funding Corporation |       | Rock Bottom Stores, Inc. |       | NY SoS                   |       | 11/26/97         |       | 244505     |       | 139656                    |       | Assignment to Lyon Credit Corporation                                                                      |
| UCC3       |       | Lyon Credit Corporation    |       | Rock Bottom Stores, Inc. |       | NY SoS                   |       | 04/24/00         |       | 081081     |       | 139656                    |       | Assignment to Hudson United Bank                                                                           |
| UCC3       |       | Hudson United Bank         |       | Rock Bottom Stores, Inc. |       | NY SoS                   |       | 05/11/00         |       | 093800     |       | 139656                    |       | Amendment—Debtor name change to: Duane Reade, Inc.                                                    |
| UCC3       |       | Hudson United Bank         |       | Duane Reade, Inc.        |       | NY SoS                   |       | 04/03/02         |       | 076643     |       | 139656                    |       | Continuation                                                                                               |
| UCC1       |       | Orix USA Corporation       |       | Duane Reade              |       | NY SoS                   |       | 05/14/99         |       | 096353     |       | —                    |       | Equipment—Master Lease #37625, Schedule #39998                                                        |
| UCC3       |       | Orix USA Corporation       |       | Duane Reade              |       | NY SoS                   |       | 07/23/99         |       | 147577     |       | 096353                    |       | Amendment-No change to collateral.   Addition of new serial numbers Master Lease #37625 Sched. #39997 |

 

----

 

| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 05/14/99 |   | 096355 |   | — |   | Equipment—Master Lease #37625, Schedule #39997                                                         |
|------|--------|--------------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|--------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------|
| UCC3 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 09/02/99 |   | 177583 |   | 096355 |   | Amendment-no change to collateral.   Addition of new serial numbers Master Lease #37625, Sched. #39997 |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 05/17/99 |   | 097434 |   | — |   | Equipment—Lease #40045                                                                                 |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 07/01/99 |   | 131468 |   | — |   | Equipment—Lease #40169                                                                                 |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 07/01/99 |   | 131470 |   | — |   | Equipment—Master Lease #37625, Schedule #40168                                                         |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 08/12/99 |   | 162511 |   | — |   | Equipment—Master Lease #37625, Schedule #40279                                                         |
| UCC1 |   | El Camino Resources, Ltd.                  |   | Duane Reade       |   | NY SoS |   | 09/03/99 |   | 178286 |   | — |   | Equipment—Master Lease #4045, Schedule #001                                                            |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade       |   | NY SoS |   | 11/03/99 |   | 222085 |   | — |   | Equipment—RVA#3428                                                                                     |
| UCC3 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade       |   | NY SoS |   | 07/25/00 |   | 144827 |   | 231476 |   | Assignment to: The Chase Manhattan Bank                                                                     |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | NY SoS |   | 11/16/99 |   | 231481 |   | — |   | All prescription pharmaceutical products, insulin & syringes                                            |
| UCC3 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade       |   | NY SoS |   | 07/25/00 |   | 144840 |   | 231481 |   | Assignment to: The Chase Manhattan Bank                                                                     |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | NY SoS |   | 12/28/99 |   | 260226 |   | — |   | Equipment-all replacement parts, accessions & subsititutions  #C0885003                                 |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade, Inc. |   | NY SoS |   | 12/28/99 |   | 260230 |   | — |   | Equipment-all replacement parts, accessions & subsititutions  #C0885004                                 |

 

----

 

| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | NY SoS |   | 01/05/00 |   | 002803 |   | — |   | All prescription pharmaceutical products, insulin & syringes                                           |
|------|--------|--------------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|--------|--------|--------|--------|------------------------------------------------------------------------------------------------------------|
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | NY SoS |   | 01/05/00 |   | 003065 |   | — |   | All prescription pharmaceutical products, insulin & syringes                                           |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade       |   | NY SoS |   | 02/24/00 |   | 037585 |   | — |   | Equipment-all replacement parts, accessions & subsititutions  #C0885005                                |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 04/27/00 |   | 083598 |   | — |   | Equipment—Master Lease #37625, Schedule #40890                                                        |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 06/09/00 |   | 114397 |   | — |   | Equipment—Master Lease #37625, Schedule #40960                                                        |
| UCC3 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 06/28/00 |   | 127069 |   | 114397 |   | Amendment-no change to collateral.   Addition of new serial numbers Master Lease #37625 Sched. #40960 |
| UCC1 |   | Crown Credit Company                       |   | Duane Reade       |   | NY SoS |   | 07/06/00 |   | 131963 |   | — |   | Crown Lift Trucks                                                                                          |
| UCC1 |   | Crown Credit Company                       |   | Duane Reade       |   | NY SoS |   | 07/06/00 |   | 131964 |   | — |   | Crown Lift Trucks                                                                                          |
| UCC1 |   | De Lage Landen Financial                   |   | Duane Reade, Inc. |   | NY SoS |   | 07/28/00 |   | 147798 |   | — |   | Equipment—Contract #24350027                                                                          |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 08/10/00 |   | 156271 |   | — |   | Equipment—Master Lease #37625, Schedule #41135                                                        |
| UCC3 |   | Orix USA Corporation                       |   | Duane Reade       |   | NY SoS |   | 09/08/00 |   | 174691 |   | 156271 |   | Amendment-no change to collateral.   Addition of new serial numbers Master Lease #37625 Sched. #41135 |

 

----

 

| UCC1 |   | IBM Credit Corporation                       |   | Duane Reade Inc   |   | NY SoS |   | 12/27/00 |   | 247750 |   | — |   | All computer, information processing equipment—Supplement #914477  12/01/00 |
|------|--------|----------------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|--------|--------|--------|--------|----------------------------------------------------------------------------------|
| UCC1 |   | IBM Credit Corporation                       |   | Duane Reade Inc   |   | NY SoS |   | 01/25/01 |   | 018314 |   | — |   | All computer, information processing equipment—Supplement #909186  11/21/00 |
| UCC1 |   | Orix USA Corporation                         |   | Duane Reade, Inc. |   | NY SoS |   | 02/06/01 |   | 025690 |   | — |   | Equipment—Master Lease #37625, Schedule #41597                              |
| UCC3 |   | Orix USA Corporation                         |   | Duane Reade, Inc. |   | NY SoS |   | 04/13/01 |   | 072541 |   | 025690 |   | Amendment-No change in collateral. New Serial Numbers added.                     |
| UCC1 |   | Orix USA Corporation                         |   | Duane Reade, Inc. |   | NY SoS |   | 02/06/01 |   | 025692 |   | — |   | Equipment—Master Lease #37625, Schedule #41598                              |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc.  |   | NY SoS |   | 02/15/01 |   | 032846 |   | — |   | Equipment—Master Lease #1409-10                                             |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc.  |   | NY SoS |   | 02/15/01 |   | 032852 |   | — |   | Equipment—Master Lease #1409-10 Schedule 003                                |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc.  |   | NY SoS |   | 02/15/01 |   | 032855 |   | — |   | Equipment—Master Lease #1409-10 Schedule 004                                |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc.  |   | NY SoS |   | 02/15/01 |   | 032856 |   | — |   | Equipment—Master Lease #1409-10 Schedule 005                                |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc.  |   | NY SoS |   | 02/15/01 |   | 032858 |   | — |   | Equipment—Master Lease #1409-10 Schedule 006                                |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc.  |   | NY SoS |   | 02/15/01 |   | 032861 |   | — |   | Equipment—Master Lease #1409-10 Schedule 007                                |

 

----

 

| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032863 |   | — |   | Equipment—Master Lease #1409-10 Schedule 008 |
|------|--------|----------------------------------------------|--------|------------------|--------|--------|--------|----------|--------|--------|--------|--------|--------|---------------------------------------------------|
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032864 |   | — |   | Equipment—Master Lease #1409-10 Schedule 009 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032865 |   | — |   | Equipment—Master Lease #1409-10 Schedule 010 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032867 |   | — |   | Equipment—Master Lease #1409-10 Schedule 011 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee—CIT) |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032868 |   | — |   | Equipment—Master Lease #1409-10 Schedule 012 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee-CIT)      |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032869 |   | — |   | Equipment—Master Lease #1409-10 Schedule 014 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee-CIT)      |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032870 |   | — |   | Equipment—Master Lease #1409-10 Schedule 016 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee-CIT)      |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032872 |   | — |   | Equipment—Master Lease #1409-10 Schedule 017 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee-CIT)      |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032873 |   | — |   | Equipment—Master Lease #1409-10 Schedule 018 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee-CIT)      |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032874 |   | — |   | Equipment—Master Lease #1409-10 Schedule 019 |
| UCC1 |   | Delphi Energy Fund, Inc. (Assignee-CIT)      |   | Duane Reade Inc. |   | NY SoS |   | 02/15/01 |   | 032875 |   | — |   | Equipment—Master Lease #1409-10 Schedule 020 |
| UCC1 |   | Crown Credit Corporation                     |   | Duane Reade Inc. |   | NY SoS |   | 03/08/01 |   | 045904 |   | — |   | Crown Lift Trucks                                 |
| UCC1 |   | Crown Credit Corporation                     |   | Duane Reade Inc. |   | NY SoS |   | 04/06/01 |   | 067100 |   | — |   | Crown Lift Truck                                  |

 

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| UCC1 |   | IBM Credit Corporation               |   | Duane Reade Inc   |   | NY SoS |   | 04/25/01 |   | 080587 |   | — |   | All computer, information processing equipment—Supplement #955641  03/27/01 |
|------|--------|--------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|--------|--------|--------|--------|----------------------------------------------------------------------------------|
| UCC1 |   | Imaging Financial Service, Inc.      |   | Duane Reade, Inc. |   | NY SoS |   | 05/09/01 |   | 090626 |   | — |   | Kodak Picture Maker Units & accessories                                      |
| UCC1 |   | Colonial Pacific Leasing             |   | Duane Reade Inc.  |   | NY SoS |   | 05/24/01 |   | 101763 |   | — |   | Gretag masterflex digital camera module software, etc                            |
| UCC1 |   | Colonial Pacific Leasing             |   | Duane Reade Inc.  |   | NY SoS |   | 05/24/01 |   | 101764 |   | — |   | Gretag masterflex digital camera module software, etc                            |
| UCC1 |   | Orix Financial Services, Inc.        |   | Duane Reade, Inc. |   | NY SoS |   | 01/04/02 |   | 002620 |   | — |   | Equipment—Master Lease #37625, Schedule #41650                              |
| UCC1 |   | Orix Financial Services, Inc.        |   | Duane Reade       |   | NY SoS |   | 02/25/02 |   | 045582 |   | — |   | Equipment-Film along with cash and noncash proceeds                              |
| UCC1 |   | Orix Financial Services, Inc.        |   | Duane Reade       |   | NY SoS |   | 02/25/02 |   | 045726 |   | — |   | Gretag equipment                                                                 |
| UCC1 |   | Orix Financial Services, Inc.        |   | Duane Reade       |   | NY SoS |   | 02/25/02 |   | 045753 |   | — |   | Equipment-Film along with cash and noncash proceeds                              |
| UCC1 |   | Orix Financial Services, Inc.        |   | Duane Reade       |   | NY SoS |   | 02/27/02 |   | 047365 |   | — |   | Equipment-all replacement parts, accessions & subsititutions                 |
| UCC1 |   | Orix Financial Services, Inc.        |   | Duane Reade       |   | NY SoS |   | 03/18/02 |   | 063337 |   | — |   | Gretag equipment                                                                 |
| UCC1 |   | General Electric Capital Corporation |   | Duane Reade Inc.  |   | NY SoS |   | 04/30/02 |   | 099949 |   | — |   | Gretag equipment                                                                 |
| UCC1 |   | Tennant Financial Services           |   | Duane Reade Inc.  |   | NY SoS |   | 05/21/02 |   | 117870 |   | — |   | Tennant Model 8300 Sweeper/Scrubber                                              |
| UCC1 |   | General Electric Capital Corporation |   | Duane Reade Inc.  |   | NY SoS |   | 05/23/02 |   | 119837 |   | — |   | Gretag equipment                                                                 |

 

----

 

| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 12/19/02 |   | 200212192  818827 |   | —            |   | Gretag masterflex digital minilabs                                        |
|------|--------|-------------------------------|--------|-------------|--------|--------|--------|----------|--------|-------------------|--------|-------------------|--------|---------------------------------------------------------------------------|
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 02/04/03 |   | 200302040  255667 |   | —            |   | Equipment-Printer along with cash and noncash proceeds                    |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 02/27/03 |   | 200302270  438954 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC3 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 10/30/03 |   | 200310301  793381 |   | 20030227043  8954 |   | Amendment-No change to collateral.   Addition of new serial numbers  |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 02/27/03 |   | 200302270  438978 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 02/27/03 |   | 200302270  438992 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC3 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 06/04/03 |   | 200306041  111991 |   | 20030227043  8992 |   | Amendment-No change in collateral Description.  Added film equipment |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 03/13/03 |   | 200303130  556553 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 03/18/03 |   | 200303180  592319 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC3 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 06/04/03 |   | 200306041  111977 |   | 20030318059  2319 |   | Amendment-No change to collateral.   Addition of new serial numbers. |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 04/17/03 |   | 200304170  834488 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC3 |   | Orix Financial Services, Inc. |   | Duane Reade |   | NY SoS |   | 06/04/03 |   | 200306041  111941 |   | 20030417083  4488 |   | Amendment-No change to collateral.   Addition of new serial numbers. |

 

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| UCC1 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 07/03/03 |   | 200307031  274399 |   | —            |   | Fuji frontier mini lab                                                    |
|------|--------|-----------------------------------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|-------------------|--------|-------------------|--------|---------------------------------------------------------------------------|
| UCC3 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 07/21/03 |   | 200307211  358547 |   | 20030703127  4399 |   | Amendment-no change to collateral.   Addition of new serial numbers. |
| UCC1 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 07/23/03 |   | 200307231  369760 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC1 |   | Key Equipment Finance, a Division of Key Corporate Capital Inc. |   | Duane Reade, Inc. |   | NY SoS |   | 07/25/03 |   | 200307251  378573 |   | —            |   | All right, title & interest in & to Master Flex Digital 1008      |
| UCC1 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 10/10/03 |   | 200310101  706158 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC3 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 11/10/03 |   | 200311101  834997 |   | 20031010170  6158 |   | Amendment-No change to collateral.   Addition of new serial numbers. |
| UCC1 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 11/25/03 |   | 200311251  900189 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC1 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 12/01/03 |   | 200312011  917201 |   | —            |   | Fuji frontier mini lab                                                    |
| UCC3 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 12/22/03 |   | 200312222  005291 |   | 20031201191  7201 |   | Amendment-No change to collateral.   Addition of new serial numbers. |
| UCC1 |   | Orix Financial Services, Inc.                                   |   | Duane Reade       |   | NY SoS |   | 12/10/03 |   | 200312101  956187 |   | —            |   | Fuji frontier mini lab                                                    |

 

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| UCC1 |   | FINOVA Capital Corporation    |   | Duane Reade Inc. |   | Richmond County, NY                       |   | 02/25/00 |   | 2000-510 |   | —   |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
|------|--------|-------------------------------|--------|------------------|--------|-------------------------------------------|--------|----------|--------|----------|--------|----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade      |   | NJ Dept. of Treasury Commercial Recording |   | 02/26/02 |   | 20896072 |   | —   |   | Gretag equipment                                                                                                                        |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade      |   | NJ Dept. of Treasury Commercial Recording |   | 12/18/02 |   | 21355677 |   | —   |   | Gretag masterflex digital minilabs                                                                                                      |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade      |   | NJ Dept. of Treasury Commercial Recording |   | 02/04/03 |   | 21419546 |   | —   |   | Equipment-Printer along with cash and noncash proceeds                                                                                  |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade      |   | NJ Dept. of Treasury Commercial Recording |   | 02/24/03 |   | 21446733 |   | —   |   | Fuji frontier mini lab                                                                                                                  |
| UCC3 |   | Orix Financial Services, Inc. |   | Duane Reade      |   | NJ Dept. of Treasury Commercial Recording |   | 09/03/03 |   | 21446733 |   | 21446733 |   | Amendment-No change to collateral.   Addition of new serial numbers.                                                               |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade      |   | NJ Dept. of Treasury Commercial Recording |   | 12/01/03 |   | 21907357 |   | —   |   | Fuji frontier mini lab                                                                                                                  |

 

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| UCC3 |   | Orix Financial Services, Inc.              |   | Duane Reade       |   | NJ Dept. of Treasury Commercial Recording |   | 12/26/03 |   | 21907357 |   | 21907357 |   | Amendment-No change to collateral.   Addition of new serial numbers.                                                                         |
|------|--------|--------------------------------------------|--------|-------------------|--------|-------------------------------------------|--------|----------|--------|----------|--------|----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | NJ Dept. of Treasury Commercial Recording |   | 04/15/99 |   | 1900450  |   | —   |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds           |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | NJ Dept. of Treasury Commercial Recording |   | 11/16/99 |   | 1941416  |   | —   |   | All prescription pharmaceutical products, insulin & syringes                                                                                  |
| UCC3 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | NJ Dept. of Treasury Commercial Recording |   | 07/25/00 |   | 1941416  |   | 1941416  |   | Assignment to: The Chase Manhattan Bank                                                                                                           |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | NJ Dept. of Treasury Commercial Recording |   | 11/16/99 |   | 1941417  |   | —   |   | All prescription pharmaceutical products, insulin & syringes                                                                                  |
| UCC3 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | NJ Dept. of Treasury Commercial Recording |   | 07/25/00 |   | 1941417  |   | 1941417  |   | Assignment to: The Chase Manhattan Bank                                                                                                           |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | DE SoS                                    |   | 02/24/00 |   | 0011253  |   | —   |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds #C0885005 |

 

----

 

| UCC1 |   | Crown Credit Company                |   | Duane Reade Inc.  |   | DE SoS |   | 07/11/01 |   | 10670708 |   | — |   | Crown Lift Truck                                                                                                                        |
|------|--------|-------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|----------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
| UCC1 |   | Crown Credit Company                |   | Duane Reade Inc.  |   | DE SoS |   | 07/11/01 |   | 10670757 |   | — |   | Crown Lift Trucks                                                                                                                       |
| UCC1 |   | GE Capital Colonial Pacific Leasing |   | Duane Reade, Inc. |   | DE SoS |   | 07/19/01 |   | 10734660 |   | — |   | Masterflex digital 1008 photo processing machine                                                                                        |
| UCC1 |   | GE Capital Colonial Pacific Leasing |   | Duane Reade, Inc. |   | DE SoS |   | 07/20/01 |   | 10762133 |   | — |   | Masterflex digital 1008 photo processing machine                                                                                        |
| UCC1 |   | GE Capital Colonial Pacific Leasing |   | Duane Reade, Inc. |   | DE SoS |   | 08/01/01 |   | 10841861 |   | — |   | Masterflex digital 1008 photo processing machine                                                                                        |
| UCC1 |   | Crown Credit Company                |   | Duane Reade Inc.  |   | DE SoS |   | 10/03/01 |   | 11304208 |   | — |   | Crown Lift Trucks                                                                                                                       |
| UCC1 |   | Orix Financial Services, Inc.       |   | Duane Reade       |   | DE SoS |   | 10/11/01 |   | 11371603 |   | — |   | Equipment-under lease # 42144                                                                                                           |
| UCC1 |   | Orix Financial Services, Inc.       |   | Duane Reade       |   | DE SoS |   | 10/11/01 |   | 11372080 |   | — |   | Equipment-under lease #42145                                                                                                            |
| UCC1 |   | Orix Financial Services, Inc.       |   | Duane Reade Inc.  |   | DE SoS |   | 10/19/01 |   | 11441240 |   | — |   | Equipment-under lease #42188                                                                                                            |
| UCC1 |   | Crown Credit Company                |   | Duane Reade, Inc. |   | DE SoS |   | 11/05/01 |   | 11606164 |   | — |   | Crown Lift Truck                                                                                                                        |
| UCC1 |   | Orix Financial Services, Inc.       |   | Duane Reade, Inc. |   | DE SoS |   | 11/09/01 |   | 11648554 |   | — |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |

 

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| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 11/09/01 |   | 11648836 |   | —   |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
|------|--------|-------------------------------|--------|-------------------|--------|--------|--------|----------|--------|----------|--------|----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 12/20/01 |   | 20170781 |   | —   |   | Gretag masterflex digital minilab model                                                                                                 |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 12/20/01 |   | 20170815 |   | —   |   | Gretag masterflex digital minilab model                                                                                                 |
| UCC1 |   | Delphi Energy Fund, Inc.      |   | Duane Reade Inc.  |   | DE SoS |   | 02/14/02 |   | 20402168 |   | —   |   | Goods & equipment—Lease No. 1409-10, Schedule 028                                                                              |
| UCC1 |   | Allen and Company             |   | Duane Reade Inc.  |   | DE SoS |   | 02/20/02 |   | 20444921 |   | —   |   | Goods & equipment—Lease No. 1409-10, Schedule 029                                                                              |
| UCC1 |   | Allen and Company             |   | Duane Reade Inc.  |   | DE SoS |   | 02/20/02 |   | 20445142 |   | —   |   | Goods & equipment—Lease No. 1409-10, Schedule 030                                                                              |
| UCC1 |   | Allen and Company             |   | Duane Reade Inc.  |   | DE SoS |   | 02/20/02 |   | 20445720 |   | —   |   | Goods & equipment—Lease No. 1409-10, Schedule 031                                                                              |
| UCC1 |   | Allen and Company             |   | Duane Reade Inc.  |   | DE SoS |   | 02/20/02 |   | 20446454 |   | —   |   | Goods & equipment—Lease No. 1409-10, Schedule 033                                                                              |
| UCC1 |   | Allen and Company             |   | Duane Reade Inc.  |   | DE SoS |   | 02/20/02 |   | 20446652 |   | —   |   | Goods & equipment—Lease No. 1409-10, Schedule 034                                                                              |
| UCC1 |   | Allen and Company             |   | Duane Reade Inc.  |   | DE SoS |   | 02/20/02 |   | 20446868 |   | —   |   | Goods & equipment—Lease No. 1409-10, Schedule 035                                                                              |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade, Inc. |   | DE SoS |   | 02/15/02 |   | 20614358 |   | —   |   | Gretag equipment                                                                                                                        |
| UCC3 |   | Orix Financial Services, Inc. |   | Duane Reade, Inc. |   | DE SoS |   | 06/17/02 |   | 21728595 |   | 20614358 |   | Amendment—Debtor name change to: Duane Reade                                                                                       |
| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade, Inc. |   | DE SoS |   | 02/25/02 |   | 20680664 |   | —   |   | Equipment-Film Tools                                                                                                                    |

 

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| UCC1 |   | Orix Financial Services, Inc. |   | Duane Reade, Inc. |   | DE SoS |   | 02/25/02 |   | 20680714 |   | — |   | Equipment-Film Tools                                                              |
|------|--------|-------------------------------|--------|-------------------|--------|--------|--------|----------|--------|----------|--------|--------|--------|-----------------------------------------------------------------------------------|
| UCC1 |   | Crown Credit Company          |   | Duane Reade, Inc. |   | DE SoS |   | 02/26/02 |   | 20681365 |   | — |   | Crown Lift Trucks                                                                 |
| UCC1 |   | Bank of the West              |   | Duane Reade Inc.  |   | DE SoS |   | 03/19/02 |   | 20702567 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 001 |
| UCC1 |   | Bank of the West              |   | Duane Reade Inc.  |   | DE SoS |   | 03/19/02 |   | 20702781 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 002 |
| UCC1 |   | Bank of the West              |   | Duane Reade Inc.  |   | DE SoS |   | 03/19/02 |   | 20703128 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 003 |
| UCC1 |   | Bank of the West              |   | Duane Reade Inc.  |   | DE SoS |   | 03/19/02 |   | 20703458 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 004 |
| UCC1 |   | Bank of the West              |   | Duane Reade Inc.  |   | DE SoS |   | 03/19/02 |   | 20703656 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 005 |
| UCC1 |   | Bank of the West              |   | Duane Reade Inc.  |   | DE SoS |   | 03/19/02 |   | 20703755 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 006 |

 

----

 

| UCC1 |   | Bank of the West |   | Duane Reade Inc. |   | DE SoS |   | 03/19/02 |   | 20703904 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 007 |
|------|--------|------------------|--------|------------------|--------|--------|--------|----------|--------|----------|--------|--------|--------|-----------------------------------------------------------------------------------|
| UCC1 |   | Bank of the West |   | Duane Reade Inc. |   | DE SoS |   | 03/19/02 |   | 20704209 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 008 |
| UCC1 |   | Bank of the West |   | Duane Reade Inc. |   | DE SoS |   | 03/19/02 |   | 20704530 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 009 |
| UCC1 |   | Bank of the West |   | Duane Reade Inc. |   | DE SoS |   | 03/19/02 |   | 20704738 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 010 |
| UCC1 |   | Bank of the West |   | Duane Reade Inc. |   | DE SoS |   | 03/19/02 |   | 20704944 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 011 |
| UCC1 |   | Bank of the West |   | Duane Reade Inc. |   | DE SoS |   | 03/19/02 |   | 20705396 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 012 |
| UCC1 |   | Bank of the West |   | Duane Reade Inc. |   | DE SoS |   | 03/19/02 |   | 20705644 |   | — |   | Equipment, general intangibles—Master Lease Agreement 1423-10,  Schedule 014 |

 

----

 

| UCC1 |   | Orix Financial Services, Inc.                                  |   | Duane Reade, Inc. |   | DE SoS |   | 03/18/02 |   | 20886295 |   | — |   | Gretag equipment                                                          |
|------|--------|----------------------------------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|----------|--------|--------|--------|---------------------------------------------------------------------------|
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21068869 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 001                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21068919 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 002                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21068976 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 003                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21069065 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 004                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21069115 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 005                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21069214 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 006                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21069354 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 007                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21069545 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 008                |
| UCC1 |   | Allen and Company                                              |   | Duane Reade Inc.  |   | DE SoS |   | 04/30/02 |   | 21069701 |   | — |   | Goods & equipment—Lease No. 1426-10, Schedule 009                |
| UCC1 |   | FINOVA Capital Corporation                                     |   | Duane Reade Inc.  |   | DE SoS |   | 05/15/02 |   | 21219348 |   | — |   | In Lieu filing                                                            |
| UCC1 |   | FINOVA Capital Corporation                                     |   | Duane Reade Inc.  |   | DE SoS |   | 05/15/02 |   | 21219587 |   | — |   | In Lieu filing                                                            |
| UCC1 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc.  |   | DE SoS |   | 05/08/02 |   | 21336647 |   | — |   | All equipment under Master Lease Agreement No. 300327, Schedule Nos.  1-5 |

 

----

 

| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc. |   | DE SoS |   | 06/12/02 |   | 21440167 |   | 21336647 |   | Partial assignment to Key Equipment Finance, a division of Key  Corporate Capital Inc.—Master Lease Agreement No. 300327, Schedule No. 1 |
|------|--------|----------------------------------------------------------------|--------|------------------|--------|--------|--------|----------|--------|----------|--------|----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc. |   | DE SoS |   | 07/01/02 |   | 21612948 |   | 21336647 |   | Full assignment to Key Equipment Finance, a division of Key Corporate  Capital Inc.—Master Lease Agreement No. 300327, Schedule No. 1    |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc. |   | DE SoS |   | 07/02/02 |   | 21865611 |   | 21336647 |   | Full assignment to Excel Bank—Master Lease Agreement No. 300327,  Schedule No. 3                                                         |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc. |   | DE SoS |   | 07/08/02 |   | 21896780 |   | 21336647 |   | Full assignment to Excel Bank—Master Lease Agreement No. 300327,  Schedule No. 4                                                         |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc. |   | DE SoS |   | 07/08/02 |   | 21897176 |   | 21336647 |   | Full assignment to BankChicago—Master Lease Agreement No. 300327,  Schedule No. 2                                                        |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc. |   | DE SoS |   | 08/08/02 |   | 22060360 |   | 21336647 |   | Full assignment to Excel Bank, N.A.—Master Lease Agreement No. 300327,  Schedule No. 5                                                   |
| UCC1 |   | IBM Credit Corporation                                         |   | Duane Reade Inc. |   | DE SoS |   | 06/03/02 |   | 21637903 |   | —   |   | Equipment & software—IBM Credit Supplement #062946                                                                                   |

 

----

 

| UCC1 |   | IBM Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 06/06/02 |   | 21665698 |   | — |   | Equipment & software—IBM Credit Supplement #026808     |
|------|--------|-----------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|----------|--------|--------|--------|-----------------------------------------------------------------|
| UCC1 |   | Crown Credit Company                    |   | Duane Reade, Inc. |   | DE SoS |   | 06/18/02 |   | 21744154 |   | — |   | Crown Lift Trucks                                               |
| UCC1 |   | Crown Credit Company                    |   | Duane Reade, Inc. |   | DE SoS |   | 06/18/02 |   | 21744170 |   | — |   | Crown Lift Truck                                                |
| UCC1 |   | The CIT Group/Equipment Financing, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 06/28/02 |   | 21843535 |   | — |   | Equipment-Energy Management Control Systems                     |
| UCC1 |   | IBM Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 07/01/02 |   | 21852924 |   | — |   | Equipment & software—IBM Credit Supplement #092134     |
| UCC1 |   | Crown Credit Company                    |   | Duane Reade, Inc. |   | DE SoS |   | 07/02/02 |   | 21869225 |   | — |   | Crown Lift Truck                                                |
| UCC1 |   | The CIT Group/Equipment Financing, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 08/27/02 |   | 22216533 |   | — |   | Equipment-Energy Management Control Systems                     |
| UCC1 |   | Orix Financial Services, Inc.           |   | Duane Reade, Inc. |   | DE SoS |   | 10/10/02 |   | 22657249 |   | — |   | Equipment-under lease #42274                                    |
| UCC1 |   | The CIT Group/Equipment Financing, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 11/04/02 |   | 22880783 |   | — |   | Equipment-attachment not available                              |
| UCC1 |   | IBM Credit LLC                          |   | Duane Reade Inc.  |   | DE SoS |   | 01/07/03 |   | 30215338 |   | — |   | Equipment & software—IBM Credit LLC Supplement #141857 |
| UCC1 |   | The CIT Group/Equipment Financing, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 01/17/03 |   | 30308745 |   | — |   | Equipment-Energy Management Control Systems                     |
| UCC1 |   | The CIT Group/Equipment Financing, Inc. |   | Duane Reade Inc.  |   | DE SoS |   | 03/10/03 |   | 30731409 |   | — |   | Equipment-Schedule No.4 dd.12/11/02 to Master Lease Agrmt       |

 

----

 

| UCC1 |   | Crown Credit Company                    |   | Duane Reade, Inc. |   | DE SoS |   | 06/03/03 |   | 31393209 |   | —   |   | Crown Lift Trucks                                                      |
|------|--------|-----------------------------------------|--------|-------------------|--------|--------|--------|----------|--------|----------|--------|----------|--------|------------------------------------------------------------------------|
| UCC1 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 06/11/03 |   | 31474249 |   | —   |   | All equipment under Master Lease Agreement No. 300327, Schedule No. 6  |
| UCC3 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 06/18/03 |   | 31540585 |   | 31474249 |   | Full Assignment to Excel Bank                                          |
| UCC1 |   | De Lage Landen Financial Services, Inc. |   | Duane Reade, Inc. |   | DE SoS |   | 06/19/03 |   | 31858938 |   | —   |   | Savin Equipment                                                        |
| UCC1 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 07/24/03 |   | 31903858 |   | —   |   | All equipment under Master Lease Agreement No. 300327, Schedule No. 7  |
| UCC3 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 07/24/03 |   | 31904062 |   | 31903858 |   | Full Assignment to Sterling National Bank                              |
| UCC1 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 08/20/03 |   | 32165820 |   | —   |   | All equipment under Master Lease Agreement No. 300327, Schedule No. 8  |
| UCC3 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 08/20/03 |   | 32165861 |   | 32165820 |   | Full Assignment to First Bank of Highland Park                         |
| UCC1 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 08/25/03 |   | 32202136 |   | —   |   | All equipment under Master Lease Agreement No. 300327, Schedule No. 9  |
| UCC3 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 09/05/03 |   | 32300906 |   | 32202136 |   | Full Assignment to First Bank of Highland Park                         |
| UCC1 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 08/25/03 |   | 32202169 |   | —   |   | All equipment under Master Lease Agreement No. 300327, Schedule No. 10 |
| UCC3 |   | IFC Credit Corporation                  |   | Duane Reade Inc.  |   | DE SoS |   | 09/05/03 |   | 32301029 |   | 32202169 |   | Full Assignment to First Bank of Highland Park                         |

 

----

 

| UCC1 |   | Crown Credit Company                                           |   | Duane Reade, Inc. |   | DE SoS            |   | 08/26/03 |   | 32207150    |   | —   |   | Crown Lift Trucks                                                           |
|------|--------|----------------------------------------------------------------|--------|-------------------|--------|-------------------|--------|----------|--------|-------------|--------|----------|--------|-----------------------------------------------------------------------------|
| UCC1 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc.  |   | DE SoS            |   | 11/03/03 |   | 32875196    |   | —   |   | All equipment under Master Lease Agreement No. 300327, Schedule No. 11      |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc.  |   | DE SoS            |   | 11/03/03 |   | 32875337    |   | 32875196 |   | Full assignment to Excel Bank, N.A.                                         |
| UCC1 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc.  |   | DE SoS            |   | 12/18/03 |   | 33343459    |   | —   |   | All equipment under Master Lease Agreement No. 300327, Schedule No. 12      |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc.  |   | DE SoS            |   | 12/18/03 |   | 33343947    |   | 33343459 |   | Full assignment to American Enterprise Bank                                 |
| UCC1 |   | Orix USA Corporation                                           |   | Duane Reade       |   | Nassau County, NY |   | 08/13/99 |   | UC 99013451 |   | —   |   | Equipment—Master lease no. 37625, lease schedule no. 40279             |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor                     |   | Duane Reade, Inc. |   | Nassau County, NY |   | 12/03/99 |   | UC 99019499 |   | —   |   | All prescription pharmaceutical products, insulin & syringes            |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor                     |   | Duane Reade       |   | Nassau County, NY |   | 12/03/99 |   | UC 99019501 |   | —   |   | All prescription pharmaceutical products, insulin & syringes            |
| UCC1 |   | FINOVA Capital Corporation                                     |   | Duane Reade Inc.  |   | Nassau County, NY |   | 12/29/99 |   | UC 99020542 |   | —   |   | Equipment-all replacement parts, accessions & subsititutions  #C0885003 |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor                     |   | Duane Reade, Inc. |   | Queens County, NY |   | 12/09/99 |   | 99 PQ20098  |   | —   |   | All prescription pharmaceutical products, insulin & syringes            |

 

----

 

| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade       |   | Queens County, NY |   | 12/09/99 |   | 99 PQ20099 |   | — |   | All prescription pharmaceutical products, insulin & syringes                                                                        |
|------|--------|--------------------------------------------|--------|-------------------|--------|-------------------|--------|----------|--------|------------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | Queens County, NY |   | 01/05/00 |   | 00 PQ00157 |   | — |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | Queens County, NY |   | 01/05/00 |   | 00 PQ00158 |   | — |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | Queens County, NY |   | 03/07/00 |   | 00 PQ03845 |   | — |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
| UCC1 |   | Crown Credit Company                       |   | Duane Reade       |   | Queens County, NY |   | 07/11/00 |   | 00 PQ11229 |   | — |   | Crown Lift Trucks                                                                                                                       |
| UCC1 |   | Crown Credit Company                       |   | Duane Reade       |   | Queens County, NY |   | 07/11/00 |   | 00 PQ11230 |   | — |   | Crown Lift Trucks                                                                                                                       |
| UCC1 |   | Crown Credit Company                       |   | Duane Reade Inc.  |   | Queens County, NY |   | 03/12/01 |   | 01 PQ03982 |   | — |   | Crown Lift Trucks                                                                                                                       |
| UCC1 |   | Crown Credit Company                       |   | Duane Reade Inc.  |   | Queens County, NY |   | 04/10/01 |   | 01 PQ05814 |   | — |   | Crown Lift Truck                                                                                                                        |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | Kings County, NY  |   | 11/19/99 |   | 99 PK16826 |   | — |   | All prescription pharmaceutical products, insulin & syringes                                                                        |

 

----

 

| UCC3 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade       |   | Kings County, NY  |   | 07/27/00 |   | 00 PK10146 |   | 99 PK16826 |   | Assignment to: The Chase Manhattan Bank, as collateral agent                                                                            |
|------|--------|--------------------------------------------|--------|-------------------|--------|-------------------|--------|----------|--------|------------|--------|------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade       |   | Kings County, NY  |   | 11/19/99 |   | 99 PK16827 |   | —     |   | All prescription pharmaceutical products, insulin & syringes                                                                        |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | Kings County, NY  |   | 12/29/99 |   | 99 PK18851 |   | —     |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade Inc.  |   | Kings County, NY  |   | 03/06/00 |   | 00 PK02902 |   | —     |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | Kings County, NY  |   | 06/14/00 |   | 00 PK08154 |   | —     |   | Equipment—Master lease no. 37625, lease schedule no. 40960                                                                         |
| UCC3 |   | Orix USA Corporation                       |   | Duane Reade       |   | Kings County, NY  |   | 07/07/00 |   | 00 PK09317 |   | 00 PK08154 |   | Amendment-No change to collateral.   Addition of new serial numbers.                                                               |
| UCC1 |   | El Camino Resources, Ltd.                  |   | Duane Reade       |   | Queens County, NY |   | 08/13/99 |   | 99 PN43967 |   | —     |   | Equipment—Master lease no. 4045, Schedule no. 1                                                                                    |
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade       |   | Queens County, NY |   | 11/04/99 |   | 99 PN59987 |   | —     |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | Queens County, NY |   | 11/18/99 |   | 99 PN62825 |   | —     |   | All prescription pharmaceutical products, insulin & syringes                                                                        |

 

----

 

| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade       |   | Queens County, NY |   | 11/18/99 |   | 99 PN62826 |   | —     |   | All prescription pharmaceutical products, insulin & syringes                                                                        |
|------|--------|--------------------------------------------|--------|-------------------|--------|-------------------|--------|----------|--------|------------|--------|------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
| UCC1 |   | FINOVA Capital Corporation                 |   | Duane Reade       |   | Queens County, NY |   | 01/03/00 |   | 00 PN00107 |   | —     |   | Equipment-and all replacement parts, accessions & substitutions  & all cash & noncash proceeds including insurance proceeds |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | Queens County, NY |   | 04/28/00 |   | 00 PN21919 |   | —     |   | Equipment—Master lease no. 37625, lease schedule no. 40890                                                                         |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade, Inc. |   | Queens County, NY |   | 07/20/00 |   | 00 PN36022 |   | —     |   | All prescription pharmaceutical products, insulin & syringes                                                                        |
| UCC1 |   | Bergen Brunswig Drug Company, as Consignor |   | Duane Reade       |   | Queens County, NY |   | 07/20/00 |   | 00 PN36023 |   | —     |   | All prescription pharmaceutical products, insulin & syringes                                                                        |
| UCC1 |   | De Lage Landen Financial Services, Inc.    |   | Duane Reade, Inc. |   | Queens County, NY |   | 08/01/00 |   | 00 PN38140 |   | —     |   | Toshiba copier systems                                                                                                                  |
| UCC1 |   | Orix USA Corporation                       |   | Duane Reade       |   | Queens County, NY |   | 08/16/00 |   | 00 PN41092 |   | —     |   | Equipment—Master lease no. 37625, lease schedule no. 41135                                                                         |
| UCC3 |   | Orix USA Corporation                       |   | Duane Reade       |   | Queens County, NY |   | 09/22/00 |   | 00 PN46937 |   | 00 PN41092 |   | Amendment-No change to collateral.   Addition of new serial numbers.                                                               |

 

----

 

| UCC1 |   | Orix USA Corporation                                           |   | Duane Reade, Inc. |   | Queens County, NY |   | 02/08/01 |   | 01 PN06340        |   | —     |   | Equipment—Master lease no. 37625, lease schedule no. 41597                                 |
|------|--------|----------------------------------------------------------------|--------|-------------------|--------|-------------------|--------|----------|--------|-------------------|--------|------------|--------|-------------------------------------------------------------------------------------------------|
| UCC3 |   | Orix USA Corporation                                           |   | Duane Reade, Inc. |   | Queens County, NY |   | 04/24/01 |   | 01 PN19601        |   | 01 PN06340 |   | Amendment-No change to collateral.   Addition of new serial numbers.                       |
| UCC1 |   | Orix USA Corporation                                           |   | Duane Reade, Inc. |   | Queens County, NY |   | 02/08/01 |   | 01 PN06341        |   | —     |   | Equipment—Master lease no. 37625, lease schedule no. 41598                                 |
| UCC1 |   | Imaging Financial Services Inc.                                |   | Duane Reade, Inc. |   | Queens County, NY |   | 05/21/01 |   | 01 PN23359        |   | —     |   | 3 Kodak picture maker units                                                                     |
| UCC1 |   | Colonial Pacific Leasing                                       |   | Duane Reade, Inc. |   | Queens County, NY |   | 06/13/01 |   | 01 PN28480        |   | —     |   | Gretag masterflex digital camera module software, etc.                                          |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc.  |   | DE SoS            |   | 12/18/03 |   | 33343947          |   | 33343459   |   | Full assignment to American Enterprise Bank                                                     |
| UCC3 |   | Spectrum Medical Leasing, a division of IFC Credit Corporation |   | Duane Reade Inc.  |   | DE SoS            |   | 12/18/03 |   | 33343947          |   | 33343459   |   | Full assignment to American Enterprise Bank                                                     |
| UCC1 |   | Orix Financial Services Inc.                                   |   | Duane Reade       |   | NY SoS            |   | 03/30/04 |   | 200403305  247791 |   |       |   | Equipment-Printer & all accessories, replacements, along with cash  & non-cash proceeds |
| UCC3 |   | Orix Financial Services Inc.                                   |   | Duane Reade       |   | NY SoS            |   | 04/08/04 |   | 200404085  277523 |   |       |   | Amendment-restated Collateral Description by adding new serial numbers                          |

 

----

 

| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 05/27/04 |   | 200405275  433818 |   |              |   | Equipment-covered under Lease Schedule No.15 to Master Lease Agrmt  No.300327                                          |
|------|--------|------------------------|--------|------------------|--------|--------|--------|----------|--------|-------------------|--------|-------------------|--------|------------------------------------------------------------------------------------------------------------------------|
| UCC3 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 06/25/04 |   | 200406255  528196 |   | 20040527543  3818 |   | Amendment-restated collateral description to amend all equip. covered  under Master Lease No.300327 Lease Sched No.015 |
| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 05/27/04 |   | 200452754  33844  |   |              |   | Equipment-covered under Lease Schedule No.13 to Master Lease Agrmt  No.300327                                          |
| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 05/27/04 |   | 200405275  434795 |   |              |   | Equipment-covered under Lease Schedule No.14 to Master Lease Agrmt  No.300327                                          |
| UCC3 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 06/25/04 |   | 200406255  28211  |   | 20040527543  4795 |   | Amendment-restated collateral description to amend all equip. covered  under Master Lease No.300327 Lease Sched No.014 |
| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 05/27/04 |   | 200405275  434834 |   |              |   | Equipment-covered under Lease Schedule No.16 to Master Lease Agrmt  No.300327                                          |
| UCC3 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 06/25/04 |   | 200406255  528184 |   | 20040527543  4834 |   | Amendment-restated collateral description to amend all equip. covered  under Master Lease No.300327 Lease Sched No.016 |

 

----

 

| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 06/25/04 |   | 200406255  527877 |   |   |   | Equipment-covered under Lease Schedule No.16 to Master Lease Agrmt  No.300327 |
|------|--------|------------------------|--------|------------------|--------|--------|--------|----------|--------|-------------------|--------|--------|--------|-------------------------------------------------------------------------------|
| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 06/25/04 |   | 200406255  527904 |   |   |   | Equipment-covered under Lease Schedule No.18 to Master Lease Agrmt  No.300327 |
| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SoS |   | 06/25/04 |   | 200406255  527954 |   |   |   | Equipment-covered under Lease Schedule No.19 to Master Lease Agrmt  No.300327 |
| UCC1 |   | IFC Credit Corporation |   | Duane Reade Inc. |   | NY SOS |   | 06/25/04 |   | 200406255  528019 |   |   |   | Equipment-covered under Lease Schedule No.17 to Master Lease Agrmt  No.300327 |

 

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**Record of Bankruptcies, Pending Suits & Judgements**

** **
| **Participant  Name** | ** ** | **Case Number**   | ** ** | **Date Filed** | ** ** | **Plaintiff/Debtor  Name**                                  | ** ** | **Location**                                                                         |
|-----------------------|------------|-------------------|------------|----------------|------------|-------------------------------------------------------------|------------|--------------------------------------------------------------------------------------|
| Duane Reade           |       | 12052/2001        |       | 09/10/03       |       | Great Atlantic & Pacific Tea Co. Inc                    |       | Supreme Court, Richmond County, New York                                             |
| Duane Reade           |       | 814873-01         |       | 09/02/03       |       | The City of New York Law Department                         |       | Queens County, New York                                                              |
| Duane Reade           |       | 815198-01         |       | 09/02/03       |       | The City of New York Law Department                         |       | Queens County, New York                                                              |
| Duane Reade           |       | 808849-01         |       | 09/25/03       |       | Criminal Court of the City of New York                      |       | Queens County, New York                                                              |
| Duane Reade           |       | 001827734-01      |       | 05/20/02       |       | Criminal Court of the City of New York                      |       | Kings County, New York                                                               |
| Duane Reade           |       | 001856693-01      |       | 08/30/02       |       | Criminal Court of the City of New York                      |       | Kings County, New York                                                               |
| Duane Reade           |       | 001856691-01      |       | 08/30/02       |       | Criminal Court of the City of New York                      |       | Kings County, New York                                                               |
| Duane Reade           |       | 001905162-01      |       | 02/10/03       |       | Criminal Court of the City of New York                      |       | Kings County, New York                                                               |
| Duane Reade           |       | 001910263-01      |       | 03/03/03       |       | Criminal Court of the City of New York                      |       | Kings County, New York                                                               |
| Duane Reade           |       | 001920035-01      |       | 03/31/03       |       | Criminal Court of the City of New York                      |       | Kings County, New York                                                               |
| Duane Reade           |       | 00-CV-253         |       | 12/31/03       |       | Ansoumana, et al                                            |       | U.S. Southern District Court—New York City                                      |
| Duane Reade           |       | 24848 1991        |       | 09/27/91       |       | Johnny Seitz and Chris Rials-Seitz                          |       | New York Supreme Court                                                               |
| Duane Reade           |       | 111150  2001 |       | 06/04/01       |       | Ellen Kleinberg                                             |       | New York Supreme Court                                                               |
| Duane Reade           |       | 98-46468-ALG      |       | 09/09/98       |       | The Pharmacy Fund, Inc. and Pharmacy Fund Receivables, Inc. |       | U.S. Bankruptcy Court—Southern District of New York—Chapter 11  Bankruptcy |
| Duane Reade           |       | 01-41432-AJG      |       | 05/21/01       |       | Lechters N.Y.C., Inc., et al                                |       | U.S. Bankruptcy Court—Southern District of New York—Chapter 11  Bankruptcy |
| Duane Reade           |       | 001343156-01      |       | 11/14/00       |       | Criminal Court of the City of New York                      |       | New  York County, New York                                                      |
| Duane Reade           |       | 001602751-01      |       | 09/16/02       |       | Criminal Court of the City of New York                      |       | New  York County, New York                                                      |
| Duane Reade           |       | 001642240-01      |       | 12/17/02       |       | Criminal Court of the City of New York                      |       | New  York County, New York                                                      |
| Duane Reade           |       | 001696245-01      |       | 04/28/03       |       | Criminal Court of the City of New York                      |       | New  York County, New York                                                      |
| Duane Reade           |       | 001696246-01      |       | 04/28/03       |       | Criminal Court of the City of New York                      |       | New  York County, New York                                                      |
| Duane Reade           |       | 001708856-01      |       | 05/13/03       |       | Criminal Court of the City of New York                      |       | New  York County, New York                                                      |
| Duane Reade           |       | 001745201-01      |       | 09/02/03       |       | The City of New York Law Department                         |       | New  York County, New York                                                      |
| Duane Reade           |       | 001745202-01      |       | 09/02/03       |       | The City of New York Law Department                         |       | New  York County, New York                                                      |
| Duane Reade           |       | 001751583-01      |       | 09/23/03       |       | Tishman Speyer Properties L.P.                              |       | New  York County, New York                                                      |
| Duane Reade           |       | 001751583-02      |       | 09/23/03       |       | Turner Construction Company                                 |       | New  York County, New York                                                      |

 

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**SCHEDULE6.04**

 

**INVESTMENTS(as of the Closing Date)**

 

PromissoryNote from DRI Investment Group, LLC in favor of Duane Reade Inc. in an amountnot to exceed $200,000.00.

 
| **Entity**       | ** ** | **Entity Holds Interests in the Following:** |
|------------------|------------|----------------------------------------------|
| Duane Reade Inc. |       | 1.                                           | Investment in Arclight  Systems LLC, a Delaware limited liability company pursuant to the Arclight  Systems LLC Limited Liability Company Agreement, dated February 26, 2001 |
|             |       |                                         |   |
|             |       | 2.                                           | Investment in Chain  Drug Consortium LLC, a Delaware limited liability company pursuant to the Chain  Drug Consortium Operating Agreement, dated August 1, 2000, as amended June 7,  2003 |
|             |       |                                         |   |
|             |       | 3.                                           | Partnership interest in  Duane Reade |

 

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**SCHEDULE6.07**

 

**TRANSACTIONSWITH AFFILIATES**

 
| **Loan Party**                 | ** ** | **Description**                                                                                                                                                                                                                                              |
|--------------------------------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Amended and Restated  Employment Agreement dated August 12, 2002, with Anthony J. Cuti.                                                                                                                                                                      |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Executive Life Program  Split Dollar Agreement between Anthony J. Cuti and Duane Reade, Inc., dated  January 25, 2002.                                                                                                                                       |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Employment Letter,  dated June 10, 1999, with John K. Henry .                                                                                                                                                                                                |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Employment Agreement,  dated October 9, 1996, as amended, with Jerry M. Ray.                                                                                                                                                                                 |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Employment Agreement,  dated February 22, 1993, as amended, with Gary Charboneau.                                                                                                                                                                            |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Split Dollar Life  Insurance Policies covering Messrs. Cuti, Charboneau, Henry & Ray.                                                                                                                                                                    |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Long-term cash target  awards applicable to Messrs. Charboneau, Ray & Henry.                                                                                                                                                                             |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Employment Agreement,  dated June 25, 2003, with Timothy R. LaBeau.                                                                                                                                                                                          |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Consulting Agreement  with Transportation Services International, an entity operated by Joseph  Cuti.                                                                                                                                                        |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Inc.               |       | Relationship with DRI  Investment Group, LLC, as more fully described in the Company’s most recent  Proxy Statement dated June 30, 2004.                                                                                                                |
|                           |       |                                                                                                                                                                                                                                                         |
| Duane Reade Acquisition  Corp. |       | Management Services  Agreement, dated as of July 30, 2004, between Oak Hill Capital Management,  Inc. and Duane Reade Acquisition Corp., as the same may be amended, modified  or supplemented from time to time in accordance with the provisions thereof.* |

 

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*              Effective forpurposes of the schedule upon closing of the Rex Transaction.

 

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| Duane Reade Holdings  and Subsidiaries |   | Tax Sharing Agreement,  dated as of July 30, 2004, among Duane Reade Holdings, Inc. and its  Subsidiaries as amended, restated or modified from time to time.*                                                                                                                                                  |
|----------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |   |                                                                                                                                                                                                                                                                                                            |
|                                   |   | Stockholders and  Registration Rights Agreement, dated as of July 30, 2004, between Duane Reade  Holdings, Inc., Duane Reade Shareholders, LLC, and certain members of the  management of Duane Reade Inc., as amended, restated or modified from time to  time, and the transactions contemplated thereunder.* |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
| Duane Reade Acquisition  Corp.         |   | Employment Agreement,  dated as of March 19, 2004, and amended on June 18, 2004, between Anthony J.  Cuti and Duane Reade Acquisition Corp. and all transactions contemplated  thereunder.*                                                                                                                     |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
| Duane Reade Acquisition  Corp.         |   | Employment Agreement,  dated as of March 16, 2004, between Gary Charboneau and Duane Reade  Acquisition Corp. and all transactions contemplated thereunder.*                                                                                                                                                    |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
| Duane Reade Acquisition  Corp.         |   | Employment Agreement,  dated as of March 16, 2004, between Jerry Ray and Duane Reade Acquisition  Corp. and all transactions and payments contemplated thereunder*                                                                                                                                              |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
| Duane Reade Acquisition  Corp.         |   | Employment Agreement,  dated as of March 16, 2004, between Timothy LaBeau and Duane Reade  Acquisition Corp. and all transactions and payments contemplated thereunder*                                                                                                                                         |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
| Duane Reade Acquisition  Corp          |   | Employment Agreement,  dated as of March 16, 2004, between John K. Henry and Duane Reade Acquisition  Corp. and all transactions and payments contemplated thereunder*                                                                                                                                          |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
| Duane Reade Holdings,  Inc.            |   | The Duane Reade  Holdings, Inc. 2004 Management Stock Option Plan*                                                                                                                                                                                                                                              |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
|                                   |   | option agreement under  the Non-Qualified Stock Option Agreement (under the 2004 Management Stock  Option Plan) to Anthony J. Cuti*                                                                                                                                                                             |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
|                                   |   | option agreement under  the Non-Qualified Stock Option Agreement (under the 2004 Management Stock  Option Plan) to Gary Charboneau*                                                                                                                                                                             |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
|                                   |   | option agreement under  the Non-Qualified Stock Option Agreement (under the 2004 Management Stock  Option Plan) to Jerry Ray*                                                                                                                                                                                   |
|                                   |   |                                                                                                                                                                                                                                                                                                            |
|                                   |   | option agreement under  the Non-Qualified Stock Option Agreement (under the 2004 Management Stock  Option Plan) to Timothy LaBeau*                                                                                                                                                                              |

 

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*              Effective forpurposes of the schedule upon closing of the Rex Transaction.

 

----

 
|             |   | option agreement under  the Non-Qualified Stock Option Agreement (under the 2004 Management Stock  Option Plan) to John K. Henry*                                                                                                                                                                                                                                         |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                                                                                                                                                                      |
| Duane Reade Inc. |   | Duane Reade Inc.  Phantom Stock Plan*                                                                                                                                                                                                                                                                                                                                     |
|             |   |                                                                                                                                                                                                                                                                                                                                                                      |
| Duane Reade Inc. |   | Phantom Stock Award  Agreement between Duane Reade Inc. and Gary Charboneau*                                                                                                                                                                                                                                                                                              |
|             |   |                                                                                                                                                                                                                                                                                                                                                                      |
| Duane Reade Inc. |   | Phantom Stock Award  Agreement between Duane Reade Inc. and John K. Henry*                                                                                                                                                                                                                                                                                                |
|             |   |                                                                                                                                                                                                                                                                                                                                                                      |
| Duane Reade Inc. |   | Phantom Stock Award  Agreement between Duane Reade Inc. and Timothy LaBeau*                                                                                                                                                                                                                                                                                               |
|             |   |                                                                                                                                                                                                                                                                                                                                                                      |
| Duane Reade Inc. |   | Phantom Stock Award  Agreement between Duane Reade Inc. and Jerry Ray*                                                                                                                                                                                                                                                                                                    |
|             |   |                                                                                                                                                                                                                                                                                                                                                                      |
|             |   | Preemptive Rights  Agreement, dated as July 30, 2004, by and among Oak Hill Capital Partners,  L.P., Oak Hill Capital Management Partners, L.P., OHCP DR Co-Investors, LLC,  Duane Reade Shareholders, LLC, Duane Reade Holdings, Inc., Duane Reade Inc.,  Anthony J. Cuti and certain other members of the management of Duane Reade  Inc. listed on Schedule 1 thereto* |

 

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*              Effective for purposes of the schedule upon closing ofthe Rex Transaction.

 

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