**Exhibit 10.24**

AGREEMENT

BETWEEN:

DUANE READE INC.

—and—

LOCAL 340A, NEW YORK JOINTBOARD, UNITE-HERE

*        *        *

April 1, 2006- March 31, 2009

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**CONTENTS**

| ARTICLE 1.   RECOGNITION  AND UNION SECURITY |   | 1  |   |
|--------------------------------------------------------|--------|----|--------|
| ARTICLE 2.   COLLECTIVE  BARGAINING UNIT     |   | 1  |   |
| ARTICLE 3.   TRIAL  PERIOD                   |   | 1  |   |
| ARTICLE 4.   SENIORITY                       |   | 2  |   |
| ARTICLE 5.   HOURS  OF WORK                  |   | 2  |   |
| ARTICLE 6.   HOLIDAY                         |   | 3  |   |
| ARTICLE 7.   LAYOFF  AND DISCHARGE           |   | 3  |   |
| ARTICLE 8.   VACATIONS                       |   | 3  |   |
| ARTICLE 9.   FAIR  TREATMENT AND RESPECT     |   | 4  |   |
| ARTICLE 10. CHECKOFF                                   |   | 4  |   |
| ARTICLE 11. MANAGEMENT  PREROGATIVE                    |   | 5  |   |
| ARTICLE 12. WAIVER AND  MODIFICATIONS                  |   | 5  |   |
| ARTICLE 13. STRIKES AND LOCKOUTS                       |   | 5  |   |
| ARTICLE 14. GRIEVANCES AND  ARBITRATION                |   | 5  |   |
| ARTICLE 15. BEREAVEMENT LEAVE                          |   | 6  |   |
| ARTICLE 16. SICK LEAVE                                 |   | 6  |   |
| ARTICLE 17. WELFARE                                    |   | 6  |   |
| ARTICLE 18. UNITE HERE  NATIONAL RETIREMENT FUND       |   | 7  |   |
| ARTICLE 19. NOTICES                                    |   | 7  |   |
| ARTICLE 20. UNION VISITATION                           |   | 7  |   |
| ARTICLE 21. INVALIDATION                               |   | 8  |   |
| ARTICLE 22. SUCCESSORS                                 |   | 8  |   |
| ARTICLE 23. TERM OF AGREEMENT                          |   | 8  |   |
| ARTICLE 24. COMPLETE AGREEMENT                         |   | 8  |   |
| ARTICLE 25. WAGE SCHEDULE                              |   | 8  |   |
| ARTICLE 26. MISCELLANEOUS                              |   | 9  |   |
| ARTICLE 27. HEALTH &  SAFETY ISSUES           |   | 9  |   |
| ARTICLE 28. JURY DUTY                                  |   | 9  |   |
| ARTICLE 29. NEWLY ACQUIRED  OR OPENED STORES           |   | 9  |   |
| ARTICLE 30. SHOP STEWARDS                              |   | 10 |   |
| ARTICLE 31. NO DISCRIMINATION                          |   | 10 |   |

 

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AGREEMENT made and enteredinto April 1, 2006 by and between DUANE READE, INC., 440 9th Avenue, New York,(hereafter called the “Employer”), and LOCAL 340A, New York, JOINT BOARD,UNITE-HERE, 31 West 15th Street, New York, New York 10011 (hereaftercalled the “Union”).

WITNESSETH:

WHEREAS, the parties hereto desire to cooperate inestablishing and maintaining proper and suitable conditions, and to secureuniform and equitable terms of employment and conditions of labor satisfactoryto Employer and employees;

NOW, THEREFORE, inconsideration of the mutual covenants and agreement hereinafter contained, itis mutually agreed as follows:

**ARTICLE 1. RECOGNITION AND UNIONSECURITY**

A.    TheEmployer recognizes the Union as the sole and exclusive bargaining agent for allclerks, cashiers, pharmacy clerks, pharmacy technicians, and photo techniciansemployed in the Employer’s stores.

B.     It shall be a condition of employment that all employees of theEmployer covered by this Agreement, who are members of the Union in goodstanding on the effective date of this Agreement shall remain members in goodstanding, and those who are not members on the effective date of this Agreementshall on the 45th day following the effective date of thisAgreement, or after the execution date of the Agreement, whichever is later,become and remain members in good standing in the Union. It shall also be acondition of employment that all employees covered by this Agreement and hiredon or after its effective date shall on the 45th day following the beginning of such employmentbecome and remain members in good standing in the Union.

**ARTICLE 2. COLLECTIVE BARGAININGUNIT**

A.    Thecollective bargaining unit covered by this Agreement shall consist of allCovered employees employed in the Employer’s Stores who are employed for twenty(20) hours or more per week, excluding store managers, assistant storemanagers, pharmacists, clericals, individuals supplied by contractors, guardsand supervisory employees as may be defined in the National labor RelationsAct, as amended.

B.     Seasonalemployees hired temporarily or supplied by a contractor for the Christmasseason no earlier than December 15th and terminated no later than the next January 5th in any year shall also be excluded from thecoverage of this Agreement.

C.     The Employer agrees to layoff sub part-time employees in a store(those who work less than 20 hours per week) before reducing the hours ofbargaining unit employees in the same store. The preceding sentence onlyapplies to situations when the Employer chooses to reduce the hours of abargaining unit employee by three (3) or more hours per week.

**ARTICLE 3. TRIAL PERIOD**

A.    A trial period of sixty (60) days shall be in effect for all newemployees hired by the Employer, during which period the employee may bedischarged with or without cause in the sole determination of the Employer, andsuch determination shall not be subject to the arbitration provisionhereinafter set forth. The trial period for any new employee will be extendedan additional sixty (60) days upon the Employer’s written request therefore.Employees retained in the employ of the Employer subsequent to the expirationof such trial period shall be deemed regular employees and placed on aseniority list of the employees of the Employer, such seniority to date back tothe beginning of their employment.

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**ARTICLE 4. SENIORITY**

A.    Seniorityfor entitlement purposes (such as vacation and benefit eligibility) shall bemeasured from date of hire by the Employer.

B.     Seniorityfor relative purposes (such as for layoff and recall) shall be recognized on astore by store basis. In no case shall seniority in one store be counted asseniority in another store.

C.     Seniorityon a single store basis shall govern in all layoffs and rehirings provided the mostsenior employee has the present ability to satisfactorily perform the availablework.

D.    An employee shall lose seniority in the event of the occurrenceof any one of the following events.

1.      Quit

2.                 Discharge forcause

3.                 After layoff theemployee is notified in writing to return to work and the employee fails toinform the Employer of his intention to so return within 48 hours after receiptof such notice.

4.                 The employee ison continuous layoff more than for six (6) months.

5*.**                *No show-no call. by failing toinform management of absences at least one hour before shift begins, except inemergencies. Informing management means speaking to the Store Manager or theShift management, not another employee.

E.     Employees will be covered without a waiting period, for medicalbenefits only, in a company acquired store, providing said employee was coveredby a previous medical plan at the time of acquisition.

**ARTICLE 5. HOURS OF WORK**

A.    The regularwork week for all full-time employees shall not exceed forty (40) hours perweek for any five (5) days out of a seven (7) day week in any storeregularly opened seven (7) days per week. A full-time employee is definedas an employee who averages a minimum of thirty (30) hours per week over aquarter.

B.     Overtimeshall be paid at the rate of time and one-half for all work over forty (40)hours per week.

C.     Part-timeemployees shall receive payment for vacations and holiday pay on a pro-ratabasis of a forty (40) hour work week.

D.    Allfull-time employees based on seniority shall have the ability to request allavailable hours in their home stores, in order to maintain their full-timestatus. Employees cannot claim hours that they are already working in anotherstore. It is understood that the employer will accommodate transfers, when thebusiness allows, in stores under the jurisdiction of the Union. The Employershall not involuntarily transfer an employee to a store outside this bargainingunit except as needed on a temporary basis.

E.     TheCompany shall make every reasonable commercial effort to maintain an employeeratio of 65% full time and 35% part time employees in all stores represented bythe Union.

F.     TheEmployer will provide a 10-minute paid break for each four-hour block ofwork time. The Employer will allow a one half hour unpaid meal break for eachsix hour block of work time.

G.    Considering the needs of the business and the requirement thatstores be staffed properly, work schedules shall be posted as far in advance asreasonably practicable before implementation.

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**ARTICLE 6. HOLIDAY**

A.    Eachemployee who has completed six (6) months of service, excluding absences,shall be paid for the holidays listed in Paragraph B below regardless ofwhether the employee works on the holiday.

B.     The holidays to which the employee shall beentitled hereunder shall be:

|   | Washington’s Birthday |   | Thanksgiving Day         |
|--------|----------------------------|--------|--------------------------|
|   | Memorial Day               |   | Christmas Day            |
|   | Fourth of July             |   | New Years Day            |
|   | Labor Day                  |   | Personal Days (as below) |

 

Employeeswill also be entitled to three (3) personal days each year. Personal daysmust be approved by the Store Manager, in advance, by giving forty eight (48)hours notice to the Store Manager in order to be paid. There will be no carryover of personal days. Eligible days not taken will be forfeited. Employees arenot entitled to pay for unused personal days upon separation of employment.

C.     Should anyof the aforementioned holidays to which an employee is entitled, fall on hisday off or during his vacation, such employee shall, in addition to his regularpay, be paid for such holiday. Should any employee be called in to work on anyholiday to which he is entitled, he shall receive holiday pay and straight-timepay for all hours worked on the holiday. Exclusive of holiday pay, if eligible,employees will only receive overtime pay if they actually work over forty (40)hours in a Holiday week.

D.    To beeligible for holiday pay, employees must work their scheduled day before andthe scheduled day after a paid holiday.

E.     Part-time employees shall be entitled to holidays (includingpersonal days) with pay on the same basis as herein above set forth butpro-rated in the proportion that their work hours bear to the full work week inthe category in which employed based on average hours worked for the precedingquarter.

**ARTICLE 7. LAYOFF AND DISCHARGE**

A.    TheEmployer shall have the right to determine the number of employees from time totime required in the operation of its business and to determine the necessityfor or extent of layoffs. The Employer will provide seven (7) days noticeto the Union of layoffs resulting from a store closing.

B.     Employees, after the expiration of their trial period, may bedischarged only for cause which includes but is not limited to reasons outlinedin the company’s Rules of Conduct and Orientation booklet. In the event ofany dispute as to the existence of cause for discharge, such dispute shall bedetermined in accordance with the grievance and arbitration provisionshereinafter contained. Unless the Employer receives a written claim of wrongfuldischarge within two (2) weeks of date of discharge, discharge shall bedeemed to be for good cause.

**ARTICLE 8. VACATIONS**

A.    The Companyagrees that, upon request, vacation pay shall be paid prior to the employee’sscheduled time off. All requests must be made on the pay period prior to thescheduled time off. It is understood that all eligible vacations must be takenin the calendar year or it will be forfeited. If an employee requests a delayand/or store management requests the vacation delay, it must be made in writingto the VP/Human Resources, who will respond within seven (7) days, inwriting, if the request for delay is rejected.

B.     A blackoutperiod will exist from November 1st each year until December 31st ofeach year where no vacation will be allowed. An employee will never be paid forvacation in lieu of time off. Employees 

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who qualify for vacationduring the blackout period, November 1st through December 31st, shall be eligible to take theirvacation after January 1st of the next calendar year.

C.     All full and part-time employees shall be eligible for vacationpay as follows:

1.                 Upon completingsix (6) months employment—one (1) week

2.                 Upon completingone (1) year employment—two (2) weeks

3.                 Upon completingseven (7) years employment—three (3) weeks

4.                 Upon completingfifteen (15) years employment—four (4) weeks

5.                 Upon completingtwenty (20) years employment—five (5) weeks

Part-timeemployees shall be entitled to vacation on the same basis as set forth herein,but pro-rated in the proportion that their work hours bear to the fullwork-week based on average hours worked for the preceding quarter.

**ARTICLE 9. FAIR TREATMENT ANDRESPECT**

A.    TheEmployer agrees that each employee should be treated with respect and dignity.The Employer will not tolerate verbal abuse or threats by managers. Correctivediscussions should not be administered in the store selling areas or in frontof other bargaining unit employees. The Union member may request the presenceof the Union Steward or other witness at any disciplinary meeting. Disciplineshall be administered in a professional, adult and non-confrontational manner.

B.     All written complaints regarding this section shall be addressedwithin ten (10) calendar days of receipt in the Company’s Human Resourcedepartment. Upon request, the Union will be provided a written summary of allactions resulting from such complaints.

**ARTICLE 10. CHECKOFF**

A.    During thesecond week of each and every month the Employer agrees to deduct and remit tothe Union the Union’s regular membership dues and initiation fees, uponcondition that the Union shall furnish the Employer with a lawful checkoffauthorization form executed by the employee.

B.     TheEmployer will notify the Union of any revocation of such authorization receivedby it.

C.     Thisauthorization shall automatically renew itself unless written authorization forrevocation is submitted as above directed.

D.    Any moniesdeducted, except monies deducted in error, from the employees are to remain theproperty of the Union, and in no event shall the Employer be permitted to usesaid monies for any other purpose, but as stipulated above.

E.     All moniesdeducted in accordance with the provisions of this section shall be promptlyremitted to the Union or its office with a list of all workers and the amountsof money deducted from each.

F.     The Employer agrees to deduct from the wage of its employees whoare members and who voluntarily authorize such contributions on formsdesignated for that purpose, contributions to UNITE HERE, campaign committee.The amounts deducted pursuant to the voluntary authorization shall be sent tothe treasurer of UNITE HERE on monthly intervals. These transmittals shall beaccompanied by a list of contributions made by those employees for whom suchdeductions have been made.

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**ARTICLE 11. MANAGEMENT PREROGATIVE**

A.    Any and allrights and prerogatives of the Employer in the operation and management of itsbusiness and the direction of its employees, including the making of work rules inconnection therewith, shall be and remain vested in the Employer, except asmodified by this Agreement. The Employer will notify the Union of changes inwork rules prior to implementation. The Union has the right to challengeany unreasonable changes in work rules.

B.     Except as limited by this agreement, the management of thebusiness and the direction of working forces is vested exclusively in theEmployer, and all employees shall perform any duties to which they may beassigned in the performance of their duties.

**ARTICLE 12. WAIVER ANDMODIFICATIONS**

A.    The failureof either party to enforce any term, condition, covenant, rule orregulation contained herein, shall not be deemed to be a waiver of these terms,conditions, covenants, rules or regulations, nor shall either party bestopped from demanding performance of those terms, conditions, covenants, rules orregulations.

B.     The Employer and Union cannot modify or waive any of theprovisions of this Agreement without the express written consent of the partieshereto.

**ARTICLE 13. STRIKES AND LOCKOUTS**

A.    There shall be no strike, picketing, slowdown, or work stoppage bythe Union or its members, or a refusal by any employee to cross a picket linein sympathy with the sponsors of such picket line, and there shall be no lockoutby the Employer of any kind whatsoever, during the life of this Agreement.

**ARTICLE 14. GRIEVANCES ANDARBITRATION**

A.    Anydisputes between the Union and the Employer arising out of or under thisAgreement shall be first taken up for amicable adjustment between thedisputants.

B.     If theparties to any such dispute shall be unable to adjust such dispute, then suchdispute shall be referred to arbitration. All complaints, disputes orgrievances of whatsoever kind or nature arising between the Union and the Employerconcerning any provision of this Agreement, shall be submitted for arbitrationto an arbitrator designated by mutual agreement of the parties. If within ten (10) daysthe parties fail to reach agreement on the designation of an arbitrator thematter shall be submitted to the next arbitrator on the below list: (1) MartyScheinman, (2) Elliot Schriftman, (3) Roger Maher and (4) EugeneCoughlin. The arbitration shall be brought on by written notice sent by theparty requesting the same addressed to the other party at the address set forthin this Agreement. Said notice shall not be required to set forth the issuesbut should state that a grievance or dispute exists between the parties. Thearbitrator shall upon such notice as he shall give to the parties, (whichnotice shall be deemed good and sufficient notice), proceed to a hearing at thetime and place fixed by him. If either party fails or refuses or neglects toappear, then the arbitrator shall hear the evidence of the party appearing andrender his decision as if both parties had appeared. The decision of thearbitrator shall be final and binding on the Employer, the Union and theemployee(s). In making his decision, the arbitrator shall not have the right toadd to, subtract from, alter, amend or modify any provision of this Agreement****The parties consent that any papers, notices, process,including subpoenas, necessary or appropriate to institute or continue anarbitration, or to enforce, confirm or vacate an award, shall be deemed dulyand sufficiently served if served by ordinary mail directed to the party’saddress as set forth in this Agreement, or to the party’s attorney. Thearbitrator is empowered to include in his award mandatory and injunctive reliefand to assess damages. The expenses of arbitration hereunder shall be borneequally by the parties hereto.

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C.     Time shallbe of the essence in any arbitration proceeding and both parties to the disputeshall exert their best efforts in obtaining a speedy determination. Grievancesregarding discipline/discharge disputes must be filed within fifteen (15) daysafter the event grieved. A subsequent demand for arbitration regarding thediscipline/discharge dispute must be filed within forty (45) days after theevent grieved or within ten (10) days after a final decision by theEmployer to deny the grievance, whichever is sooner. Grievances regardingnon-discipline/discharge disputes must be filed within forty-five (45) daysafter the event grieved or the date when the Union reasonably should have knownof the event grieved, whichever is later. A subsequent demand for arbitrationregarding the non-discipline/discharge dispute must be filed within forty-five(45) days after the grievance is filed. Failure to meet these time limits is awaiver of the dispute.

D.    Any claimfor unpaid compensation to which an employee may be entitled under theprovisions of this Agreement shall be deemed waived unless such claim is madewithin six (6) months from the date when such unpaid compensation may havebecome due and payable. Any such claim, made more than six (6) monthsafter it was allegedly due and payable, shall not be subject to the grievanceand arbitration provisions of this Agreement.

E.     The grievance and arbitration procedure set forth above shall bethe sole and exclusive means for the determination of all disputes, complaints,controversies, claims or grievances whatsoever, including unfair laborpractices, claims of discrimination or other****alleged breaches of this Agreement. Neither party shallinstitute any action, charge or proceeding in a court of law or equity orbefore an administrative agency, state or federal other than to compelarbitration as provided in this Agreement, or with respect to the Award of anarbitrator. This provision shall be a complete defense to and also grounds fora stay of any action or proceeding instituted to the contrary.

**ARTICLE 15. BEREAVEMENT LEAVE**

A.    All covered employees who have been employed six (6) monthsor more by the Employer shall receive a maximum of three (3) days bereavementleave in the event of the death of a father, mother, sister, brother, child,spouse, or legal guardian. Bereavement leave shall be counted starting with theday after death, and the employee shall be paid for any day he is regularlyscheduled to work during such three (3) days of leave. One additional paidday will be granted for deaths that require travel outside of the tri-statearea. Employees will be entitled to one (1) day bereavement leave for thedeath of a grandparent or grandchild. The Company reserves the right to requireproof of death.

**ARTICLE 16. SICK LEAVE**

A.    Full-timeemployees who have worked at least six (6) months, excluding absences,shall be entitled to receive five (5) days sick leave with pay eachcontract year. Sick leave shall not be cumulative, and unused sick leave dayswill be paid at the end of the contract year.

B.     An employee who claims sick leave pay for taking time off whensuch employee was not ill shall be subject to discharge for good cause. TheCompany reserves the right to verify all absences of more than one day due tosickness before payment.

**ARTICLE 17. WELFARE**

A.    TheEmployer agrees to pay the UNITE HERE National Health Fund $205 per month,effective on the first of the month following a full time employee’s completionof two hundred and ten (210) days of employment; effective April 1, 2007,the amount of contribution shall be increased to $220 per month. The Employeragrees, effective April 1, 2007, to pay $25 per month effective on thefirst of the month following a part time employee’s completion of two hundredand ten (210) days of employment.

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B.     Theparties agree that Duane Reade Inc. shall continue to make contributions to theUNITE HERE National Health Fund set forth in the supplemental agreementattached hereto entitled “UNITE HERE NATIONAL HEALTH FUND” already executed bythe parties, except as modified by the Collective Bargaining agreement and anyother agreements between the parties.

C.     TheCompany agrees to notify the Union within ten (10) calendar days ofterminating health contributions for eligible members. The Union and saidrespective Funds shall have the right at all times to examine the Employer’sbooks and records for the purpose of determining whether the Employer iscomplying with the provisions of this Agreement.

D.    DisabilityBenefit Law. The Employer shall, during the term of this Agreement, at its soleexpense and without deduction from its employees, fully cover its employeesunder the New York and New Jersey State Disability Benefits Law.

E.     All full-time employees, following the completion of two hundredand ten (210) days of employment will be eligible to participate in the DuaneReade Prescription Program. The employees will not be required to makecontributions to participate in the Duane Reade Prescription Program. DuaneReade shall continue the existing Duane Reade Prescription Program for theduration of this Agreement, however, effective January 1, 2007, theCompany has the right to change the co-pays provided it is done on a company-widebasis. Such changes may only be made once a year.

**ARTICLE 18. UNITE HERE NATIONALRETIREMENT FUND**

A.    TheEmployer agrees to contribute into the UNITE HERE NATIONAL RETIREMENT FUND onbehalf of all full-time employees who have completed ninety (90) days ofcontinuous service an amount as specified in the pension supplement to thiscontract.

B.     The parties agree that Duane Reade Inc. shall continue to makecontributions to the UNITE HERE National Retirement Fund as set forth in thepension supplemental agreement attached hereto entitled “UNITE HERE NATIONALRETIREMENT FUND” already executed by the parties, except as modified by theCollective Bargaining Agreement and any other agreements between the parties.

**ARTICLE 19. NOTICES**

A.    All notices required to be made hereunder must be made inwriting, by certified or registered mail or other means showing proof ofdelivery, and sent by each party hereto to the other to the addressesrespectively set forth herein above, unless similarly notified in writing of achange in address.

**ARTICLE 20. UNION VISITATION**

A.    Representativesof the Union shall be permitted to visit the stores of the Employer for areasonable period of time for the purpose of meeting with the employees and forthe purpose of observing whether or not the terms and conditions of thisAgreement are carried out. Union representatives agree to make their presenceknown to the Store Manager or Assistant Store Manager before speaking withemployees or within a reasonable period of time upon arriving at the store.Such visits shall not interfere with the normal operations of the store.

B.     The Union shall represent the employees of the Employer and theEmployer shall deal with the Union or its duly accredited representative withrespect to any matter affecting same.

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**ARTICLE 21. INVALIDATION**

A.    Should any section, or portion thereof, of this Agreement beheldunlawful and unenforceable by any tribunal of competent jurisdiction, suchdecision shall apply only to the specified section or portion thereof directlyspecified in the decision and not affect the validity or enforceability of theremainder of this Agreement, including but not limited to Article 13.

**ARTICLE 22. SUCCESSORS**

A.    This contract shall inure to the benefit of and be binding uponthe parties hereto, their successors and assigns.

**ARTICLE 23. TERM OF AGREEMENT**

A.    This Agreement shall be in full force and effect from April 1,2006 through and including March 31, 2009 and shall thereafter beautomatically renewed for one (1) year unless and until either party shallgive the other a written notice at least two (2) months prior to theexpiration of the Agreement of its intention to terminate the Agreement.

**ARTICLE 24. COMPLETE AGREEMENT**

A.    It is agreed that this Agreement is a complete agreement andcovers all subjects and matters negotiable between the parties. It may not bechanged orally, and may be amended only by a writing signed by the partieshereto.

**ARTICLE 25. WAGE SCHEDULE**

A.    Minimumstart rate: Minimum Wage:

Newly hired employees shall receive an increase of 25cents per hour after sixty (60) days of employment.

Employees shall receive a wage increase of 10 centsper hour commencing on such employee’s first anniversary date of employment.

B.     Employeeswho have passed their Trial Period as provided herein shall be paid no lessthan 25 cents per hour over any future legal minimum wage.

C.     GeneralWage Increase:

All employees on the payroll on the effective datesset forth below and who have passed their Trial Period as provided for hereinshall receive the following increases in their then present hourly wage:

Effective April 1, 2006—Twenty-five cents ($0.25)per hour

Effective April 1, 2007—Thirty-five cents ($0.35)per hour

Effective April 1, 2008—Thirty cents ($0.30) perhour

D.    Allemployees scheduled to work from midnight to 8:00 a.m. shall receive anadditional $1.50 per hour.

E.     Upon ratification of this Agreement, a bonus will be paid to allemployees with six (6) months or more of service on April 1, 2006.The bonus for each eligible employee will be calculated by multiplyingtwenty-five cents times all compensated hours paid to that employee during theperiod from April 1, 2005 to March 31, 2006.

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**ARTICLE 26. MISCELLANEOUS**

A.    Wherephysically possible, the Employer will provide a bulletin board for Company andUnion business in an employee gathering area (i.e. lounge, break room etc.) andwill provide space for Union literature.

B.     TheEmployer agrees to permit a fifteen (15) minute Union orientation at the startof employment for all new hires in stores represented by the Union conducted bythe store Union representative. The Employer shall include a union membership,dues check off and voluntary political action committee contribution cards inits new hire orientation materials.

C.     Employershall adjust the work schedule of a designated Union representative to enablehim or her to attend Union meetings once each quarter.

D.    All employees may elect to receive eligible pay through directdeposit.

**ARTICLE 27. HEALTH &SAFETY ISSUES**

A.    The Companyagrees to provide the following:

1.                 A re-usablecovering garment for use to protect employee’s clothes. A supply will be sentto each store and controlled by store management.

2.                 Clean restroomsand break rooms

3.                 Properlyventilated work areas

4.                 Access to clean drinkingwater

B.     The Company and Union agree to the creation of a five (5) memberHealth and Safety committee. This Committee shall meet at the Company’sheadquarters once each calendar quarter (four times a year). The committee willconsist of three (3) union store employees and two (2) managementemployees and a representative of the Union may attend. The purpose will be tobring environmental issues to the attention of management in the form ofrecommendations. Nothing in this paragraph shall obligate the Employer tofollow through on the committee’s recommendations.

**ARTICLE 28. JURY DUTY**

A.    The Company agrees to compensate employees for up to three (3) dayspay in conjunction with applicable court stipends for time lost while servingon jury duty.

**ARTICLE 29. NEWLY ACQUIRED OROPENED STORES**

A.    TheEmployer, including its management and supervisors, shall be neutral and shallnot oppose, directly or indirectly, the Union’s efforts to organize theemployees in any newly acquired or opened stores in which the bargaining unitemployees are not represented by a union.

B.     TheEmployer shall recognize the Union when it obtains majority support amongbargaining unit employees (as defined in Article I) in a store asevidenced through signed authorization cards.

C.     Anydispute arising under this Article shall be resolved pursuant to Grievanceand Arbitration Article 14, except that the Arbitrator shall be, based onearliest availability. Roger Maher, Eugene Coughlin or Steve Bluth.

D.    TheEmployer waives its right to seek an NLRB election to resolve representationalissues at newly acquired or opened stores.

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E.     The Union and its representatives will not coerce or threatenany employee in an effort to obtain authorization cards, nor will the Uniondisparage the Employer, its products, services, policies or practices, or theEmployer’s officers, management, agents or employees. If the Employer believesthat a statement by the Union during an organizational campaign violates thisParagraph E, it shall inform the Union of its allegation. If the parties cannotreach agreement on the content and form of the Employer’s statement in responsewithin six (6) hours, the Employer may issue its statement in response ina manner commensurate to the alleged violation. The Union may requestarbitration. The arbitrator is empowered to order an appropriate remedy.

**ARTICLE 30. SHOP STEWARDS**

The Employer recognizes the right of the Union todesignate a Shop Steward in each store that employs more than fifteen (15)bargaining unit employees. The Shop Steward shall enjoy top seniority forpurposes of layoff only.

The authority ofthe Shop Steward designated by the Union shall be limited to, and shall notexceed, the following activities:

1.      Theinvestigation and presentation of grievances in accordance with the provisionsof the collective bargaining agreement.

2.      Thetransmission of such messages and information which shall originate with andare authorized by the Union or its officers, provided such messages andinformation:

a.      have beenreduced to writing, or

b.      if notreduced to writing, are of a routine nature and do not involve work stoppages,slow downs, refusal to handle goods or assist customers, refusal to followinstructions, or any other interference with the Employer’s business.

Shop stewards are toperform the duties without unduly interfering with store operations includingtheir own job duties and responsibilities.

**ARTICLE 31. NO DISCRIMINATION**

TheEmployer agrees that it will not discriminate against employees because of suchemployee’s race, creed, color, national origin, age, disability, religion,veteran status, sex, sexual orientation, union affiliation, marital status, orother classifications protected by federal and/or state law. The use of thewords “his,” “him” or “he” in this Agreement are intended to be gender neutraland are intended to be used interchangeably with the words “hers,” “her” and “she”for purposes of this Agreement.
| Agreed:                                        | Agreed:           |   |
|------------------------------------------------|-------------------|--------|
| LOCAL 340A, NEW  YORK JOINT  BOARD, UNITE-HERE | DUANE READE, INC. |   |
| By:                                            |              |   | By: |   |   |
| Date Signed:                                   |              |   | Date Signed: |   |   |
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10

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