Document:

Intercreditor and Collateral Agency Agreement

 Exhibit 4.6 
 EXECUTION COPY 
  
  
  
 INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT

 dated as of August 7, 2009 
 among 
 DUANE READE HOLDINGS, INC., 
 DUANE READE INC., 
 DUANE READE (a New York general partnership), 

 DRI I, INC., 
 DUANE
READE INTERNATIONAL, LLC, 
 and 
 DUANE READE REALTY, INC., 
 U.S. BANK NATIONAL ASSOCIATION, 
 as Indenture Trustee, 
 and 
 U.S. BANK NATIONAL ASSOCIATION, 
 as
Collateral Agent 
  
  
  

 TABLE OF CONTENTS* 
  

					
	 	  	 	  	Page
	 ARTICLE I DEFINITIONS
	  	4
	 Section 1.01
	  	Definitions	  	4
	 Section 1.02
	  	Rules of Interpretation	  	11
		
	 ARTICLE II OBLIGATIONS AND POWERS OF THE COLLATERAL AGENT
	  	11
	 Section 2.01
	  	Appointment of the Collateral Agent	  	11
	 Section 2.02
	  	Actions under Collateral Documents	  	11
	 Section 2.03
	  	Instructions of Directing Creditors	  	13
	 Section 2.04
	  	Certain Actions under the Collateral Documents and Intercreditor Agreement	  	13
	 Section 2.05
	  	Other Actions by the Collateral Agent	  	14
	 Section 2.06
	  	Nature of Duties	  	14
	 Section 2.07
	  	No Obligations Imposed	  	14
	 Section 2.08
	  	Inspection	  	15
		
	 ARTICLE III ACTIONS BY CREDITORS; VOTING
	  	15
	 Section 3.01
	  	Directing Creditors Defined	  	15
	 Section 3.02
	  	Exceptional Decisions	  	15
	 Section 3.03
	  	Certificates of the Trustee, a Term Loan Agent and Swap Representative	  	16
	 Section 3.04
	  	Calculations Binding	  	16
	 Section 3.05
	  	Directing Creditors Held Harmless	  	16
		
	 ARTICLE IV EXERCISE OF REMEDIES; APPLICATION OF COLLATERAL PROCEEDS
	  	17
	 Section 4.01
	  	General Limitation on Exercise of Remedies	  	17
	 Section 4.02
	  	Notices of Events of Default	  	17
	 Section 4.03
	  	Notices of Acceleration	  	17
	 Section 4.04
	  	Remedies	  	18
	 Section 4.05
	  	No Inconsistent Actions	  	18
	 Section 4.06
	  	Application of Proceeds	  	18
	 Section 4.07
	  	Sharing of Asset Sale Proceeds and Event of Loss Proceeds	  	19
	 Section 4.08
	  	Credit Bid Rights	  	19
		
	 ARTICLE V CERTAIN OBLIGATIONS ENFORCEABLE BY THE LOAN PARTIES
	  	20
	 Section 5.01
	  	Release of Liens	  	20

  

	*	The Table of Contents is not a part of the Intercreditor and Collateral Agency Agreement. 

  

 i 

					
	 Section 5.02
	  	Delivery of Copies to the Trustee, a Term Loan Agent and Swap Representative	  	21
	 Section 5.03
	  	Collateral Agent Not required to Make Filings or Recordations	  	21
	 Section 5.04
	  	No Actions to Address Exceptions	  	21
		
	 ARTICLE VI THE COLLATERAL AGENT
	  	21
	 Section 6.01
	  	No Implied Duty	  	21
	 Section 6.02
	  	Appointment of Co-Agents and Sub-Agents	  	22
	 Section 6.03
	  	Other Agreements	  	22
	 Section 6.04
	  	Solicitation of Instructions	  	22
	 Section 6.05
	  	Limitation of Liability	  	22
	 Section 6.06
	  	Documents in Satisfactory Form	  	22
	 Section 6.07
	  	Entitled to Rely	  	22
	 Section 6.08
	  	Events of Default	  	23
	 Section 6.09
	  	Actions by Collateral Agent	  	23
	 Section 6.10
	  	Security or Indemnity in Favor of the Collateral Agent	  	23
	 Section 6.11
	  	Resignation or Removal of the Collateral Agent	  	24
	 Section 6.12
	  	Appointment of Successor Collateral Agent	  	24
	 Section 6.13
	  	Succession	  	24
		
	 ARTICLE VII MISCELLANEOUS
	  	24
	 Section 7.01
	  	Amendment	  	24
	 Section 7.02
	  	Further Assurances	  	25
	 Section 7.03
	  	Successors and Assigns; Term Loan Agent Joinder	  	26
	 Section 7.04
	  	Delay and Waiver	  	26
	 Section 7.05
	  	Notices	  	27
	 Section 7.06
	  	Entire Agreement	  	28
	 Section 7.07
	  	Compensation and Expenses	  	28
	 Section 7.08
	  	Indemnity	  	29
	 Section 7.09
	  	Obligations Secured	  	30
	 Section 7.10
	  	Severability	  	30
	 Section 7.11
	  	Governing Law; Submission to Jurisdiction	  	30
	 Section 7.12
	  	Waiver of Right to Trial by Jury	  	31
	 Section 7.13
	  	Section Titles	  	31
	 Section 7.14
	  	Counterparts; Effectiveness	  	32

  

 ii 

 Schedules: 
  

					
	Schedule 2.02	  	-  	  	Issue Date Collateral Documents

 Exhibits: 
  

					
	Exhibit A	  	-  	  	Form of Security Agreement
	Exhibit B	  	-  	  	Form of Pledge Agreement
	Exhibit C	  	-  	  	Intercreditor Agreement

  

 iii 

 INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT 
 This Intercreditor and Collateral Agency Agreement (this “Agreement”) is entered into as of August 7, 2009 among DUANE READE
HOLDINGS, INC., a Delaware corporation (“Holdings”), DUANE READE INC., a Delaware corporation (“DRI”), DUANE READE, a New York general partnership (“Duane Reade”), DRI I, Inc., a Delaware
corporation (“DRI I”), DUANE READE INTERNATIONAL, LLC, a Delaware limited liability company (“DR International”), DUANE READE REALTY, INC., a Delaware corporation (“DR Realty”), U.S. BANK NATIONAL
ASSOCIATION, as Trustee for the Noteholders under the Indenture (as defined below) (together with its successor or successors in such capacity, the “Trustee”), and U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent (together with
its successor or successors in such capacity, the “Collateral Agent”). 
 DRI and Duane Reade issued Senior Secured Floating
Rate Notes due 2010 (as amended, restated, supplemented or modified from time to time, the “Existing Senior Secured Notes”) pursuant to an Indenture dated as of December 20, 2004 (as amended, restated, supplemented or modified
from time to time, the “Existing Indenture”) among DRI, Duane Reade and U.S. Bank National Association, as Trustee (the “Existing Trustee”). The obligations of DRI and Duane Reade under and in respect of the
Existing Senior Secured Notes were guaranteed by Holdings, DRI I, DR International and DR Realty. 
 Holdings, Duane Reade, DRI, DRI I, DR
International and DR Realty are also parties to (i) a Credit Agreement dated as of July 21, 2003 (as amended by a First Amendment to Credit Agreement dated as of July 22, 2004, a Second Amendment to Credit Agreement dated as of
August 4, 2005, a Third Amendment to Credit Agreement dated as of July 7, 2006, a Fourth Amendment to Credit Agreement dated as of September 28, 2007 and a Fifth Amendment to Credit Agreement dated as of August 7, 2009, and as
the same may be further amended, modified, supplemented, extended, restated, renewed or replaced from time to time in accordance with the terms thereof, the “Revolving Credit Agreement”) with the lenders from time to time party
thereto (the “Revolving Lenders”), Bank of America, N.A. (f/k/a Fleet National Bank), as issuing bank for certain letters of credit, Bank of America, N.A. (f/k/a Fleet National Bank), as Administrative Agent for the Revolving
Lenders (together with its successor or successors in such capacity, the “Revolving Credit Administrative Agent”) and as Collateral Agent for the Revolving Lenders (together with its successor or successors in such capacity, the
“Revolving Credit Collateral Agent”), and (ii) a Security Agreement dated as of July 21, 2003 (as amended by the Collateral Release Agreement dated as of July 30, 2004 and the First Amendment to Security Agreement
dated as of July 30, 2004 and as the same may be further amended, modified, supplemented, extended, restated, renewed or replaced from time to time in accordance with the terms thereof, the “Revolving Security Agreement”).
Holdings, Duane Reade, DRI, DRI I, DR International, DR Realty and each other Person now or hereafter becoming a guarantor of the obligations under the Revolving Credit Agreement are herein collectively referred to as the “Revolving Loan
Parties.” Revolving loans (collectively, “Revolving Loans”) are 

 
now and may hereafter be outstanding under the Revolving Credit Agreement. The payment of the principal of and interest on the Revolving Loans and all other
Obligations (as defined in the Revolving Credit Agreement and the Revolving Security Agreement, the “Revolving Loan Obligations”) are secured pursuant to the Revolving Security Agreement and various other security documents by
security interests and other liens held by the Revolving Credit Collateral Agent in the Revolving Loan Parties’ right, title and interest in all present and future (i) accounts, inventory, chattel paper, instruments, and documents,
(ii) prescription files and books, records, electronically stored data and information relating to prescription files and all rights of access to such books, records and information, (iii) tax refunds and abatements, and rights to payment
for credit extended (iv) deposit accounts, (v) all letter of credit rights and supporting obligations relating to Revolving Lender Priority Collateral, (vi) all books and records of the Revolving Loan Parties relating to any of the
foregoing, (vii) all payment intangibles constituting proceeds of the foregoing and (viii) all products and proceeds of the foregoing (including, without limitation, insurance proceeds related thereto) (collectively, the “Revolving
Lender Priority Collateral”). 
 The Revolving Credit Collateral Agent and U.S. Bank National Association (as successor to Bank of
America, N.A.), as Collateral Agent are parties to an Intercreditor Agreement dated as of July 30, 2004 (as amended, restated, supplemented or modified from time to time, the “Intercreditor Agreement”) which provides among
other things that: (i) the Revolving Loan Obligations (up to an amount (the “Maximum Revolving Debt Amount”) equal to the greater of (A) $275,000,000 and (B) the sum of the Borrowing Base, exclusive of Reserves, plus
Permitted Overadvances (as such terms are defined in the Revolving Credit Agreement as in effect as of July 30, 2004) plus in each case all accrued and unpaid interest, fees, expense reimbursements and other charges then due to the Revolving
Lenders) are secured on a first priority basis by all Revolving Lender Priority Collateral; (ii) the Note/Term Obligations (as defined below) are secured by substantially all of the Loan Parties’ personal property and all proceeds thereof
(the “Note/Term Collateral”) (which includes all Revolving Lender Priority Collateral); (iii) the Revolving Loan Obligations are not secured by any Note/Term Collateral except that portion of the Note/Term Collateral which
constitutes Revolving Lender Priority Collateral; (iv) the portion of the Note/Term Collateral that does not constitute Revolving Lender Priority Collateral constitutes “Note/Term Priority Collateral”; and (v) the security
interest securing the Note/Term Obligations: (A) in the Note/Term Priority Collateral is of a first priority; and (B) in that portion of the Note/Term Collateral which is Revolving Lender Priority Collateral is (x) of a second
priority subject only to a first priority security interest securing an amount of the Revolving Loan Obligations that does not exceed the Maximum Revolving Debt Amount and (y) is of a first priority with respect to that portion of the Revolving
Loan Obligations which exceeds the Maximum Revolving Debt Amount. 
 DRI and Duane Reade intend to issue 11.75% Senior Secured Notes due 2015
(together with any Additional Notes referred to below and any Exchange Notes (as defined in the Indenture), and as amended, restated, supplemented or modified from time to time, the “Senior Secured Notes”) pursuant to an Indenture
dated as of the date hereof (as amended, restated, supplemented or modified from time to time and including any 

  

 2 

 
agreement extending the maturity of, refinancing or otherwise restructuring all or any portion of the obligations of DRI and Duane Reade under such Indenture
or any successor agreement, the “Indenture”) among DRI, Duane Reade and U.S. Bank National Association, as Trustee (together with its successor or successors in such capacity, the “Trustee”). The obligations of DRI
and Duane Reade under and in respect of the Senior Secured Notes will be guaranteed by Holdings and by DRI, DR International, DR Realty and all other direct and indirect domestic subsidiaries of DRI that become a party to the Security Agreement and
the Pledge Agreement pursuant to Section 7.10 and Section 8.10 thereto, respectively (collectively with DRI I, DR International and DR Realty, the “Subsidiary Guarantors” and, together with Holdings, the
“Guarantors”). Holdings, DRI, Duane Reade, and the Subsidiary Guarantors are herein referred to individually as a “Loan Party” and, collectively, as the “Loan Parties”. The proceeds of the Senior
Secured Notes will be used to refinance the Existing Senior Secured Notes, to pay accrued interest on the Existing Senior Secured Notes, to refinance other indebtedness of DRI and Duane Reade and to pay related transaction fees and expenses.

 Without providing any commitments to any Loan Party as to the funding of future indebtedness, the Indenture permits, and a Term Loan
Agreement (as defined below) may permit, DRI, Duane Reade and other Loan Parties from time to time to incur Indebtedness which it is otherwise permitted to incur under the Indenture and a Term Loan Agreement (as defined below) in the form of
additional loans or other debt financing (“Additional Term Loans”) pursuant to a Term Loan Agreement or additional senior secured notes issued under the Indenture (such notes being herein collectively referred to herein as the
“Additional Notes”) (or both) and to secure such additional Note/Term Obligations (as defined below) equally and ratably with the other Finance Obligations (as defined below); provided that the borrowing of any Additional
Term Loans and the issuance of any Additional Notes is subject to the limitations set forth in the Indenture and any Term Loan Agreement. 
 Holdings, DRI and Duane Reade may, from time to time, borrow Additional Term Loans or refinance all or a portion of the Note/Term Obligations by borrowing revolving credit loans, term loans, notes, debentures, bonds, receivables financing
or letters of credit, including arrangements and agreements relating to the sale of debt securities or other forms of debt financing (and together with any Additional Term Loans, “Term Loans”) from one or more banks or other
institutional lenders (together with the lenders of any Additional Term Loans, each a “Term Lender” and, collectively, “Term Lenders”) in each case pursuant to a Term Loan Agreement (as defined below) designated as
such by the Secured Debt Designation (as defined below) and with respect to which a Term Loan Agent (as defined below) thereunder has delivered the Joinder (as defined below). 
 The Loan Parties and the Collateral Agent will enter into a Security Agreement, a Pledge Agreement and certain other Collateral Documents referred to
therein equally and ratably securing the Senior Secured Notes, any Term Loans and certain Swap Obligations and all related obligations with security interests and other liens in the Note/Term Collateral. This Agreement sets forth the terms on which
the Collateral 

  

 3 

 
Agent has undertaken to accept, hold and enforce such security interests and all related rights, interests and powers as agent for, and for the benefit
exclusively of, the present and future holders of the Senior Secured Notes, any Term Lenders and Swap Creditors and describes the relative rights and obligations of the Trustee on behalf of the holders of the Senior Secured Notes, a Term Loan Agent
on behalf of Term Lenders and the representatives of one or more Swap Creditors with respect to the Note/Term Collateral. 
 Accordingly, in
consideration of the mutual agreements set forth herein, the Trustee and the Collateral Agent hereby agree as follows: 
 ARTICLE I 

 DEFINITIONS 
 Section
1.01 Definitions. Capitalized terms defined in the introductory paragraphs hereof have the respective meanings provided for therein. In addition, as used in this Agreement, the following terms have the following meanings: 
 “Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified. 
 “Aggregate Voting Credit” means at any date the
sum of: 
 (i) the aggregate outstanding principal amount of the Senior Secured Notes; plus 
 (ii) the aggregate outstanding principal amount of any Term Loans; 
 outstanding at such time; provided that after the date on which all Note/Term Obligations have been paid in full and all commitments (if any) with respect thereto have been terminated, the “Aggregate
Voting Credit” means the aggregate amount of all Swap Obligations (valued at their then Swap Termination Value) of all Loan Parties permitted under the Indenture and all Term Loan Agreements, if any, owed or owing to one or more Swap
Creditors. Noteholders, Term Lenders or Swap Creditors that are Affiliates of Holdings and any of its Subsidiaries and any Senior Secured Notes, Term Loans or Swap Obligations held by any such Noteholder, Term Lender or Swap Creditor shall not be
included in the determination of the Aggregate Voting Credit. 
 “Agreement” means this Intercreditor and Collateral Agency
Agreement, as amended, modified or supplemented from time to time. 
 “Business Day” means any day other than a Saturday, a
Sunday or a day which banking institutions in New York, New York or San Francisco, California or at a place of payment are authorized by law, regulation or executive order to remain closed. 
  

 4 

 “Collateral” means all of the property which is subject or is purported to be subject to
the Liens granted by the Collateral Documents. 
 “Collateral Agent” means U.S. Bank National Association, as collateral
agent, and its successor or successors in such capacity. 
 “Collateral Documents” means, collectively, this Agreement, the
Security Agreement, the Pledge Agreement, the Depositary Bank Agreements, each Perfection Certificate (as defined in the Security Agreement), any mortgage or deed of trust and all other pledges, agreements, financing statements, filings or other
documents that grant or evidence the Lien in the Collateral in favor of the Collateral Agent for the benefit of the Finance Parties, as they may be amended from time to time. 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
such Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
 “Credit Class” means (i) the Noteholders, (ii) any Term Lenders or (iii) the Swap Creditors, as the context may require.

 “Creditor” means any Noteholder, any Term Lender and any Swap Creditor, and “Creditors” means two or
more of them, collectively. 
 “Debtor Relief Laws” means Title 11, United States Bankruptcy Code of 1978, as amended, or
any similar United States federal or state law or foreign law relating to bankruptcy, insolvency, receivership, winding up, liquidation, reorganization or relief of debtors or any amendment to, succession to or change in any such law. 
 “Depositary Bank Agreement” means, with respect to any deposit account, an agreement between a Loan Party and any bank or other
depositary institution, substantially in the form of Exhibit C-1 or Exhibit C-2, as applicable, to the Security Agreement or such other form as to which an opinion of counsel is delivered to the Collateral Agent opining that such agreement
is sufficient to grant the Collateral Agent a perfected security interest by control under the UCC in the deposit account named therein, as the same may be amended, modified or supplemented from time to time. 
 “Directing Creditors” means at any time Creditors holding more than 50% of the then Aggregate Voting Credit (including, without
limitation, Noteholders providing consents obtained in connection with a tender offer or exchange offer for, or purchase of, Senior Secured Notes); provided that, solely for purposes of directing a release of Collateral pursuant to
Section 7.11(c)(A) of the Security Agreement and Section 8.11(c)(A) of the Pledge Agreement, the “Directing Creditors” means at any time Creditors holding at least 75% of the then Aggregate Voting Credit (including,
without limitation, Noteholders providing consents obtained in connection with a tender offer or exchange offer for, or purchase of, Senior Secured Notes). 
  

 5 

 “equally and ratably” means, in reference to sharing of any Liens or proceeds thereof as
among the Credit Classes, that such Liens or proceeds shall be allocated and distributed to the Trustee for the account of the Noteholders, to a Term Loan Agent for the account of Term Lenders and to the Swap Representative for the account of the
Swap Creditors on a pro-rata basis, as provided in the definition of “pro-rata basis” and in Section 4.07. 
 “Event
of Default” means an “Event of Default” as defined in the Indenture or any Term Loan Agreement. 
 “Exceptional Decisions” has the meaning set forth in Section 3.02. 
 “Finance
Document” means each Note Document, each Swap Agreement between one or more Loan Parties and a Swap Creditor evidencing Swap Obligations permitted under the Indenture and all Term Loan Agreements, if any, each Term Loan Document and this
Agreement, and “Finance Documents” means any two or more of them, collectively. 
 “Finance Obligations”
means: 
 (i) all Note/Term Obligations; and 
 (ii) all Swap Obligations of all Loan Parties permitted under the Indenture and all Term Loan Agreements, if any, owed or owing to one or
more Swap Creditors; 
 in each case whether now or hereafter due, owing or incurred in any manner, whether actual or contingent, whether incurred solely or
jointly with any other person and whether as principal or surety, together in each case with all renewals, modifications, refinancings, replacements, consolidations or extensions thereof. 
 “Finance Party” means each Noteholder, the Trustee, each Term Lender, a Term Loan Agent, each Swap Creditor, each Swap Representative,
the Collateral Agent and each Indemnitee (as defined in the Security Agreement) and “Finance Parties” means any two or more of them, collectively. 
 “Insolvency Proceeding” means (i) any voluntary or involuntary case or proceeding under any Debtor Relief Law with respect to any Loan Party, (ii) any other voluntary or involuntary
insolvency, reorganization or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or other similar case or proceeding, with respect to any Loan Party or with respect to any of their respective assets, (iii) any
liquidation, dissolution, reorganization or winding up of any Loan Party, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy and (iv) any assignment for the benefit of creditors or any other marshaling of
assets and liabilities of any Loan Party. 
 “Joinder” has the meaning set forth in Section 7.03(d). 

 

 6 

 “Lien” means any mortgage or deed of trust, charge, pledge, lien (statutory or
otherwise), privilege, security interest, assignment, deposit, arrangement, easement, hypothecation, claim, preference, priority or other encumbrance upon or with respect to any property of any kind (including any conditional sale, capital lease or
other title retention agreement, any leases in the nature thereof, and any agreement to give any security interest), real or personal, movable or immovable, now owned or hereafter acquired. A Person will be deemed to own subject to a Lien any
property which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, Capital Lease Obligation or other title retention agreement. 
 “Note Documents” means the Indenture, the Senior Secured Notes and the Registration Rights Agreement related thereto and the Collateral
Documents, in each case including all exhibits and schedules thereto, and all other agreements, documents and instruments relating to the Senior Secured Notes, in each case as the same may be amended, modified or supplemented from time to time in
accordance with the provisions thereof. 
 “Noteholders” means the holders from time to time of the Senior Secured Notes.

 “Note/Term Obligations” means: 
 (i) all principal of and interest (including, without limitation, any interest which accrues after the commencement of any Insolvency
Proceeding with respect to any Loan Party, whether or not allowed or allowable as a claim in any such proceeding) on any Senior Secured Note or Term Loan; 
 (ii) all fees, expenses, indemnification obligations and other amounts of whatever nature now or hereafter payable by any Loan Party (including, without limitation, any amounts which accrue after the commencement of
any Insolvency Proceeding with respect to any Loan Party, whether or not allowed or allowable as a claim in any such proceeding) pursuant to the Indenture, the Senior Secured Notes, any Term Loan Agreement, the Intercreditor Agreement or any
Collateral Document; 
 (iii) all expenses of the Trustee, the Collateral Agent or any Term Loan Agent as to which one or more
of such agents has a right to reimbursement under the Indenture, any Term Loan Agreement or under any other similar provision of any Collateral Document or the Intercreditor Agreement, including, without limitation, any and all sums advanced by the
Collateral Agent to preserve the Collateral or preserve its security interest in the Collateral; and 
 (iv) in the case of
Holdings and each Subsidiary Guarantor, all amounts now or hereafter payable by Holdings or such Subsidiary Guarantor and all other obligations or liabilities now existing or hereafter arising or incurred (including, without limitation, any amounts
which accrue after the commencement of any Insolvency Proceeding with respect to DRI, Duane Reade, Holdings or such Subsidiary Guarantor, whether or not allowed or allowable as a claim in any such proceeding) on the part of Holdings or such
Subsidiary Guarantor pursuant to the Indenture, the Senior Secured Notes, the Guarantees, any Term Loan Agreement, the Intercreditor Agreement or any Collateral Document; 
  

 7 

 together in each case with all renewals, modifications, refinancings, consolidations or extensions thereof. 

“Officer’s Certificate” has the meaning set forth in Section 5.01. 
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
governmental authority or other entity. 
 “Pledge Agreement” means the Pledge Agreement, substantially in the form of
Exhibit B hereto, dated as of the date hereof among the Loan Parties and the Collateral Agent, as the same may be amended, modified or supplemented from time to time 
 “Proceeds” has the meaning specified for such term in the Uniform Commercial Code as in effect from time to time in the State of
New York. 
 “pro-rata” means at any date, as among the Noteholders, any Term Lenders and the Swap Creditors, in
proportion to the then aggregate outstanding amounts of (i) the principal outstanding under the Senior Secured Notes, (ii) principal outstanding under any Term Loans and (iii) Swap Obligations (valued at the then Swap Termination
Value of all related Swap Agreements). 
 “Responsible Officer” means the chief executive officer, president, chief
financial officer, treasurer or assistant treasurer or secretary or assistant secretary of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized
by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 
 “Secured Debt Designation” means, as to any Term Loan Agreement, a written certification signed by a Responsible Officer of DRI to the
effect that such Term Loan Agreement (a) constitutes “Term Loan Agreement” within the meaning of this Agreement and (b) is intended to be secured equally and ratably with all other then outstanding Finance Obligations with
security interests and other liens in the Collateral granted pursuant to the Collateral Documents. 
 “Security Agreement”
means the Security Agreement, substantially in the form of Exhibit A hereto, dated as of the date hereof among the Loan Parties and the Collateral Agent, as the same may be amended, modified or supplemented from time to time. 

 

 8 

 “Sharing Confirmation” means, as to any Swap Agreement, the written agreement of the
related Swap Creditor as set forth in such Swap Agreement, for the enforceable benefit of the Collateral Agent, the Trustee and a Term Loan Agent, that: (i) all Finance Obligations shall be and are secured equally and ratably by all Liens at
any time granted by the Loan Parties to secure any Finance Obligations, whether or not upon property otherwise constituting Collateral; (ii) all such Liens shall be enforceable by the Collateral Agent for all holders of Finance Obligations
equally and ratably; (iii) such Swap Creditor consents to and will be bound by the provisions of this Agreement relating to the order of application of proceeds from enforcement of the Collateral Agent’s Liens upon the Collateral;
(iv) such Swap Creditor consents to and directs the Collateral Agent to perform its obligations under this Agreement; (v) such Swap Creditor agrees to appoint or consent to the appointment of a single Swap Representative for all Swap
Creditors from time to time outstanding selected by the holders of more than 50% of the aggregate Swap Obligations (valued at their then Swap Termination Values) at the time such Swap Representative is selected and (vi) such Swap Creditor will
notify the Swap Representative if an Early Termination Date (a “Swap Termination Date”) occurs under one or more of its Swap Agreement or Swap Obligation resulting from (i) any event of default under such Swap Agreement or Swap
Obligation as to which any Loan Party is the Defaulting Party (as defined in such Swap Agreement or Swap Obligation) or (ii) any Termination Event (as so defined) as to which any Loan Party is the Affected Party (as so defined). 
 “Subsidiary” has the meaning set forth in the Indenture. 
 “Swap Agreement” means an agreement between a Loan Party and any Swap Creditor with respect to one or more Swap Obligations. 
 “Swap Creditor” means any Person from time to time party to one or more Swap Agreements with a Loan Party permitted by the Indenture and
all Term Loan Agreements, if any, and that has also executed a Sharing Confirmation, and its successors and assigns, and “Swap Creditors” means any two or more of such Swap Creditors, collectively. 
 “Swap Obligations” of any Person means all obligations (including, without limitation, any amounts which accrue after the commencement
of any Insolvency Proceeding) of such Person in respect of any rate swap transaction, basis swap, forward rate transaction, forward contract, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with
respect to any of the foregoing transactions) or any combination of the foregoing transactions, excluding any amounts which such Person is entitled to set-off against its obligations under applicable Law. 
 “Swap Representative” means, with respect to one or more Swap Creditors, it or its or their trustee, paying agent or other similar
representative. 
  

 9 

 “Swap Termination Date” has the meaning set forth in the definition of “Sharing
Confirmation” in this Section 1.01. 
 “Swap Termination Value” means, at any date and in respect of
any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreements relating to such Swap Agreements, (i) for any date on or after the date such Swap Agreements have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (ii) for any date prior to the date referenced in clause (i), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as
determined by the applicable Swap Creditor based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements (which may include the Collateral Agent). 
 “Term Loan Agent” mean an administrative agent (or an agent, trustee or other representative acting in similar capacity) under a Term
Loan Agreement that has executed and delivered a Joinder, and its successor or successors in such capacity. 
 “Term Loan
Agreement” means one or more debt facilities with banks or other institutional lenders providing for revolving credit loans, term loans, notes, debentures, bonds, receivables financing or letters of credit, including arrangements and
agreements relating to the sale of debt securities or other forms of debt financing, in each case, as any of the foregoing, in whole or in part, in one or more instances, may be amended, renewed, extended, substituted, refinanced, restructured,
replaced, supplemented or otherwise modified from time to time (including, without limitation, any successive renewals, extensions, substitutions, refinancings, restructurings, replacements, supplementations or other modifications of the foregoing
and including, without limitation, any amendment increasing the amount of Indebtedness incurred or available to be borrowed thereunder, extending the maturity of any Indebtedness incurred thereunder or contemplated thereby or deleting, adding or
substituting one or more parties thereto (whether or not such added or substituted parties are banks or other institutional lenders)), including into one or more debt facilities, commercial paper facilities or other debt instruments, indentures or
agreements (including in the form of Additional Notes), providing for revolving credit loans, term loans, letters of credit or other debt obligations, whether any such extension, replacement or refinancing (1) occurs simultaneously or not with
the termination or repayment of a prior Term Loan Agreement or (2) occurs on one or more separate occasions, in each case, which was or were designated as such by DRI pursuant to the Secured Debt Designation and with respect to which a Term
Loan Agent thereunder has delivered the Joinder. 
 “Term Loan Document” means any Term Loan Agreement, any promissory
notes, guaranties, the Collateral Documents and other documents entered into in connection therewith and as may be designated “Term Loan Documents” in any such Term Loan Agreement, in each case as the same may be amended, modified
or supplemented from time to time in accordance with the provisions thereof. 
 “Threshold Amount” means the lower of the
Dollar amounts set forth in Section 6.01(4) of the Indenture and any similar provision in any Term Loan Agreement. 
  

 10 

 “Trust Indenture Act” means Trust Indenture Act of 1939, as amended, and rules and
regulations promulgated thereunder and interpretations thereof. 
 “Uniform Commercial Code” or “UCC” means
the Uniform Commercial Code as in effect from time to time in the State of New York; provided that if by reason of mandatory provisions of law, the perfection, the effect of perfection or non-perfection or the priority of a Lien in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof
relating to such perfection, effect of perfection or non-perfection or priority. 
 Section 1.02 Rules of Interpretation. Terms
defined in the introductory paragraphs hereof and the definitions in Section 1.01 shall apply equally to both the singular and plural forms of the terms defined. Wherever the context may require, any pronouns shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. All references herein to Articles,
Sections, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement unless otherwise stated herein or the context shall otherwise require. Unless otherwise
expressly provided herein, the word “day” means a calendar day. 
 ARTICLE II 
 OBLIGATIONS AND POWERS OF THE COLLATERAL AGENT 
 Section 2.01 Appointment of the Collateral Agent. The Collateral Agent is hereby appointed by the Trustee as collateral agent hereunder (and upon execution and delivery of a Joinder by a Term Loan Agent, such
Term Loan Agent shall confirm and acknowledge such appointment pursuant to the Joinder), and the Collateral Agent hereby agrees to act as Collateral Agent pursuant to the terms of this Agreement. The Trustee on behalf of itself and on behalf of the
Noteholders directs the Collateral Agent to enter into the Collateral Documents listed on Schedule 2.02. 
 Section 2.02
Actions under Collateral Documents. The Collateral Agent hereby irrevocably undertakes and agrees, on the terms and conditions set forth in this Agreement, to act as agent for the benefit exclusively of the present and future Noteholders,
Term Lenders, Swap Creditors and any other holders from time to time of the Finance Obligations and in such capacity to accept, hold, administer and enforce all collateral security at any time delivered to it by any Loan Party as security for the
Finance Obligations and all rights, interests and powers at any time granted or enforceable in respect of such collateral security under the Collateral Documents listed on Schedule 2.02 and, subject to Section 7.01(b), all
other Collateral Documents, or applicable law. Without limiting the generality of the foregoing, the Collateral Agent agrees that it will, as agent for the benefit exclusively of the present and future Noteholders, Term Lenders, Swap Creditors and
the other holders from time to time of the Finance Obligations, but subject to the terms and conditions hereof: 
 (i) enter
into the Collateral Documents, receive, hold, administer and enforce the security interests granted to it thereunder, perform its obligations thereunder and protect, exercise and enforce the interests, rights, powers and remedies granted or
available to it thereunder or pursuant thereto or in connection therewith; 
  

 11 

 (ii) comply with the obligations of the “Term Loan Agent” under the
Intercreditor Agreement; 
 (iii) take all lawful and commercially reasonable actions that it may deem necessary or advisable
to protect or preserve its interest in the Collateral; 
 (iv) establish the Cash Proceeds Account, the Reinvestment Funds
Account and the Prepayment Account as contemplated by the Security Agreement, and maintain sole dominion and control over such accounts and all deposits therein and investments thereof; 
 (v) deliver and receive notices pursuant to the Collateral Documents and the Intercreditor Agreement; 
 (vi) sell, assign, collect, assemble, foreclose on, institute legal proceedings with respect to, or otherwise exercise or enforce the
rights and remedies of a secured party (including a mortgagee, trust deed beneficiary and insurance beneficiary or loss payee) with respect to the Collateral and its other interests, rights, powers and remedies; 
 (vii) remit to the Trustee, any Term Loan Agent and one or more Swap Representative as required by Section 4.07 all cash
proceeds received by the Collateral Agent from the collection, foreclosure or enforcement of its interest in the Collateral or any of its other interests, rights, powers or remedies; 
 (viii) subject to Section 3.02 and Section 7.01(b), amend the Collateral Documents as from time to time authorized
and directed by the Directing Creditors, and amend the Collateral Documents as required by Section 3.02(d); and 
 (ix) release any Lien granted to it by any Collateral Document upon any Collateral if and as required by Section 2.04 and Section 5.01. 
 The Collateral Agent is irrevocably authorized and empowered to enter into and perform its obligations under, and to protect, perfect, exercise and enforce its interest, rights, powers and remedies, in each case under
and pursuant to the Collateral Documents and applicable law and to act as set forth in this Article II or as requested in any lawful directions given to it from time to time in respect of any matter by the Directing Creditors.

  

 12 

 The Loan Parties acknowledge and consent to the undertakings of the Collateral Agent set forth in this
Article II, and agree to each of the other provisions of this Agreement applicable to them. 
 Section 2.03 Instructions of
Directing Creditors. Subject to the terms and conditions of this Agreement, the Collateral Agent shall follow the instructions of the Directing Creditors from time to time conveyed to it by the representative or representatives of one or more
Credit Classes pursuant to this Agreement, subject to and consistent with the Collateral Agent’s rights and obligations expressed in the Collateral Documents and in accordance with applicable law. The Noteholders’ representative for
purposes of delivering notices and instructions to the Collateral Agent shall be the Trustee, the Term Lenders’ representative for purposes of delivering notices and instructions to the Collateral Agent shall be a Term Loan Agent and each Swap
Creditor’s representative for purposes of delivering notices and instructions to the Collateral Agent shall be its applicable Swap Representative. The Collateral Agent shall disregard notices and instructions from any other Person in respect of
the applicable Credit Class. No direction given to the Collateral Agent (whether given by the Directing Creditors through the representative or representatives of the applicable Credit Classes or by the Trustee, a Term Loan Agent or any Swap
Representative or otherwise by any Person) which imposes, or purports to impose, upon the Collateral Agent any obligation not set forth in this Agreement or any other Collateral Document shall be binding upon the Collateral Agent unless the
Collateral Agent elects, at its sole option, to accept direction (i) pursuant to the instructions of the Directing Creditors or (ii) from the Trustee or a Term Loan Agent and, after the date on which all Note/Term Obligations have been
paid in full and all commitments (if any) with respect thereto have been terminated, the Swap Representative, as required or permitted by the Indenture, a Term Loan Agreement and the Swap Agreements. No instruction of the Directing Creditors shall
be effective to impose any obligation or liability upon the Trustee, a Term Loan Agent or any Swap Representative, as applicable, unless it is a signatory party thereto. 
 Section 2.04 Certain Actions under the Collateral Documents and Intercreditor Agreement. Without limiting the provisions of Section 2.02, the Collateral Agent is hereby authorized and directed, and
agrees for the benefit of the Loan Parties, without notice to or consent from any Creditor: (i) to release (upon receipt of a written certification of a responsible officer of DRI and Duane Reade that the Trustee has received all documents, if
any, required by the Trust Indenture Act and the Indenture) one or more Loan Parties from their obligations under, and the Liens of, the Collateral Documents, and to release the Collateral or any portion thereof, as required by Section 7.11 of
the Security Agreement, Section 8.11 of the Pledge Agreement and Section 2.8 of the Intercreditor Agreement or any other pertinent provision of any Finance Document; (ii) to comply with the obligations imposed on the Term Loan Lenders
(as defined and specified in Sections 2.10 and 2.11 of the Intercreditor Agreement); (iii) to receive or execute perfection certificates, control agreements and other Loan Party deliverables as contemplated by the Collateral Documents;
(iv) to release funds deposited in the Cash Proceeds Account, the Reinvestment Funds Account and the Prepayment Account established and maintained under the Security Agreement 
  

 13 

 
as required by Sections 2.04(b), 2.05(b) and 2.06 of the Security Agreement (upon receipt of an Officer’s Certificate); (v) to make available
to each Loan Party any Instrument or Certificated Security pledged by such Loan Party for the purposes set forth in, and as required by, Section 4.01 of the Pledge Agreement; and (vi) to deliver such instruments as may be required from
time to time to enable each Loan Party to exercise the voting and other rights which it is entitled to exercise under Section 5.01(a)(i) of the Pledge Agreement. 
 Section 2.05 Other Actions by the Collateral Agent. The Collateral Agent shall provide the Trustee, any Term Loan Agent and each Swap
Representative requesting the same with a copy of all notices received from the Loan Parties under the Collateral Documents and from the Revolving Credit Collateral Agent under the Intercreditor Agreement. The Collateral Agent shall timely file
Uniform Commercial Code continuation statements to continue the perfection of the security interests under the Collateral Documents. During any period when the Collateral Agent is exercising remedies against any Loan Party or the Collateral, the
Collateral Agent shall furnish the Trustee, a Term Loan Agent and any Swap Representative requesting the same with reports of its activities in connection therewith upon the occurrence of significant events and upon the request of the Trustee or a
Term Loan Agent. 
 Section 2.06 Nature of Duties. Except to the extent otherwise provided in Section 2.05, the duties of
the Collateral Agent hereunder and under the Collateral Documents shall be ministerial and administrative in nature. The Collateral Agent shall not have by reason of this Agreement or the Collateral Documents a fiduciary or trust relationship with
respect to the Trustee, any Noteholder, a Term Loan Agent, any Term Lender, any Swap Representative, any Swap Creditor or any other holder from time to time of Finance Obligations, and nothing in this Agreement, expressed or implied, is intended to
or shall be so construed as to imply such obligations or impose, upon the Collateral Agent, any obligations whatsoever arising under this Agreement, the Indenture, a Term Loan Agreement, any Swap Agreement, any Collateral Document or the
Intercreditor Agreement, except as expressly set forth herein or in the Collateral Documents. For the limited purpose of holding and distributing or applying Proceeds of Collateral and Cash Equivalents, the Collateral Agent shall hold such Proceeds
and Cash Equivalents in trust for the benefit of the Trustee, a Term Loan Agent and the Swap Representative in accordance with their rights and priorities provided for herein. 
 Section 2.07 No Obligations Imposed. None of the Trustee, a Term Loan Agent, any Swap Representative, any Creditor or any other holder of Finance
Obligations shall have: (i) except in connection with the instructions of the Directing Creditors to which it is a signatory party, any responsibility or duty whatsoever in respect of the Collateral or the Collateral Documents or any other
interest, right, power or remedy granted to or enforceable by the Collateral Agent, it being understood and agreed by the Collateral Agent and by each Loan Party that, except in connection with the instructions of the Directing Creditors to which it
is a signatory party, only the Collateral Agent shall be bound by, or liable for breach of, the obligations of the Collateral Agent set forth in or arising under the Collateral Documents, including all obligations imposed 
  

 14 

 
by law upon a secured party relating to the protection, maintenance, release or enforcement of any security interest in any Collateral or any other interest,
right, power or remedy of the Collateral Agent; or (ii) except in connection with the instructions of the Directing Creditors to which it is a signatory party, any liability whatsoever for any act or omission of the Collateral Agent, whether or
not constituting a breach of its undertaking and obligations under this Agreement or otherwise constituting wrongful conduct. 
 Section 2.08
Inspection. The Collateral Agent will permit the Trustee, a Term Loan Agent, any Swap Representative or any Noteholder, Term Lender or Swap Creditor at any time or from time to time, during normal business hours, to inspect and copy any and
all Collateral Documents and other documents, notices, certificates, instructions or communications received by the Collateral Agent in its capacity as such. 
 ARTICLE III 
 ACTIONS BY CREDITORS; VOTING 
 Section 3.01 Directing Creditors Defined. Except with respect to Exceptional Decisions as defined in Section 3.02, all instructions to
the Collateral Agent (including, without limitation, delivery of a notice of foreclosure, foreclosure and appointment of a receiver), shall be given by the Directing Creditors to the Collateral Agent through their applicable representatives. For
purposes of calculation of the Directing Creditors, any Credit Class at the time comprising part of the Aggregate Voting Credit may, by the requisite vote of its Credit Class, delegate instructional authority to any subset of such Credit Class, in
which event the Persons having been granted such instructional authority shall be deemed to represent 100% of the members of their respective Credit Class. Any such delegation of authority may be rescinded at any time by the requisite vote of the
applicable Credit Class. 
 Section 3.02 Exceptional Decisions. Certain of circumstances set forth in Section 3.02(b) and
(c) shall call for “Exceptional Decisions”, as such term is used herein, and instruction to the Collateral Agent in connection with such circumstances shall be effected as provided below: 
 (a) Amendment of Collateral Documents. The Collateral Agent shall not agree to any amendment of the Collateral Documents except
upon instructions given by the Directing Creditors in accordance with Section 3.01; provided that no agreement of any Creditor or notice of the concurrence of any Credit Class shall be required for (A) any amendment,
modification or supplement to the Collateral Documents (1) to cure any ambiguity, typographical error, defect or inconsistency if such amendment, modification or supplement does not adversely affect the rights of any Credit Class or
(2) pursuant to Section 9.01 of the Indenture and the equivalent provision of any Term Loan Agreement or (B) such amendments to financing statements or other Collateral Documents as permitted by Section 2.02(iii);
and, provided, further, that any amendment to the provisions of the Collateral Documents that releases any Collateral shall be governed by Section 3.02(c). 
  

 15 

 (b) Amendment of this Agreement. The Collateral Agent shall not agree to any
amendment of this Agreement except upon instructions given by the Directing Creditors in accordance with Section 3.01; provided that no agreement of any Creditor nor notice of the concurrence of any Credit Class shall be required
for any amendment, modification or supplement to this Agreement (x) to cure any ambiguity, typographical error, defect or inconsistency if such amendment, modification or supplement does not adversely affect the rights of any Credit Class or
(y) pursuant to Section 9.01 of the Indenture or the equivalent provision of any Term Loan Agreement; and, provided, further, that any amendment to the definitions of “Aggregate Voting Credit” and
“Directing Creditors” and any amendment to Sections 3.01, 3.02, 4.06, 4.07 and 7.01 will require notice to the Collateral Agent by the representative of each Credit Class at the time
comprising part of the Aggregate Voting Credit of the concurrence of such Credit Class, determined by the applicable vote solely within such class. 
 (c) Release of All or Substantially All Collateral. The Collateral Agent shall not release all or substantially all Collateral from the lien and security interests created by the Collateral Documents except as
expressly provided therein (including, without limitation, Section 7.11(c)(A) of the Security Agreement and Section 8.11(c)(A) of the Pledge Agreement) or in Article V hereof or except upon notice to the
Collateral Agent by the representative of each Credit Class at the time comprising part of the Aggregate Voting Credit of the concurrence of such Credit Class, determined by the applicable vote solely within such class. 
 (d) Amendments to Other Collateral Documents. Subject to Section 7.01(b), The Collateral Agent agrees for the benefit
of the Loan Parties that it shall execute any amendment, modification or supplement to any Collateral Document approved in accordance with Article IX of the Indenture and in accordance with any equivalent provision of all Term Loan Agreements,
if any. 
 Section 3.03 Certificates of the Trustee, a Term Loan Agent and Swap Representative. Concurrently with any calculation of
Directing Creditors or any Exceptional Decision requiring the concurrence of all Credit Classes then comprising part of the Aggregate Voting Credit, the Trustee, a Term Loan Agent, and, following the payment in full of all Note/Term Obligations, the
Swap Representative shall certify to the Collateral Agent (i) the aggregate principal amount of the Aggregate Voting Credit held by the Noteholders, any Term Lenders, or the Swap Creditors, as the case may be, and (ii) the votes cast by
the members of the applicable Credit Class. 
 Section 3.04 Calculations Binding. All calculations regarding satisfaction of
compliance with the definition of the Directing Creditors shall be made by the Collateral Agent upon receipt of and in exclusive reliance upon the certificates described in Section 3.03, and shall be binding upon each Credit Class.

 Section 3.05 Directing Creditors Held Harmless. In considering how to pursue creditor remedies against any Loan Party or against
the Collateral and before initiating any such creditor remedies, the Directing Creditors shall first determine whether any proposed creditor remedies or other actions create a risk that the remaining 
  

 16 

 
interests of the Noteholders, any Term Lenders or the Swap Creditors (including, without limitation, the right to seek a deficiency judgment against the Loan
Parties or the right to pursue other collateral) will be impaired or prejudiced. To the greatest extent possible, all instructions given or actions taken concerning the exercise of creditor remedies or other actions under this Agreement shall
attempt to maximize the return for all Creditors and attempt to minimize (to the greatest extent possible) the risk that the rights and interests of some of the Creditors (including, without limitation, the ability to seek and enforce a deficiency
judgment against any Loan Party or the right to pursue other collateral) may be diminished or impaired following the exercise of such creditor remedies or actions. Each Creditor agrees that it shall not provide or cause or vote to be provided any
instruction to the Collateral Agent which would cause or result in disproportionate prejudice or impairment to the other Creditors hereunder. However, subject to the previous sentence, the Directing Creditors shall be entitled to provide any
instruction and take any action which they in good faith believe is in the interest of the Noteholders and any Term Lenders. 
 ARTICLE IV

 EXERCISE OF REMEDIES; APPLICATION OF COLLATERAL PROCEEDS 
 Section 4.01 General Limitation on Exercise of Remedies. None of the Trustee, a Term Loan Agent nor the Swap Representative shall be entitled to
exercise any remedies directly under the Collateral Documents, but only by providing instructions to the Collateral Agent in accordance with this Agreement. 
 Section 4.02 Notices of Events of Default. The Trustee shall notify the Collateral Agent (with a copy to a Term Loan Agent) if an Event of Default has occurred under (and as defined in) the Indenture of which
it has actual knowledge and of the forbearance, waiver or other termination, if any, of such Event of Default. A Term Loan Agent shall notify the Collateral Agent (with a copy to the Trustee) if an Event of Default has occurred under (and as defined
in) a Term Loan Agreement and of the forbearance, waiver or other termination, if any, of such Event of Default. The Swap Representative shall notify the Collateral Agent (with a copy to the Trustee and a Term Loan Agent) if it receives notice from
one or more Swap Creditors that one or more Swap Termination Dates or Termination Events have occurred and of the forbearance, waiver or other termination, if any, of such Swap Termination Date or Termination Event. 
 Section 4.03 Notices of Acceleration. If (i) an Event of Default occurs and any Note/Term Obligations are accelerated or (ii) one or
more Swap Termination Dates occur and the aggregate Swap Termination Value under the applicable Swap Agreement as to which such Swap Termination Dates have occurred owed by one or more Loan Parties as a result thereof is greater than the Threshold
Amount, the Trustee, a Term Loan Agent and/or the Swap Representative, as the case may be, shall notify the others and the Collateral Agent of such acceleration or the occurrence of such Swap Termination Dates, as applicable, certifying:
(i) that such acceleration or Swap Termination Dates has or have occurred and (ii) the principal, interest, fees and other amounts owed by the Loan Parties (such certification being herein referred to as a “Notice of
Acceleration”). 
  

 17 

 Section 4.04 Remedies. Upon receipt by the Collateral Agent of a Notice of Acceleration from or on
behalf of one or more Credit Classes, or upon receipt by the Collateral Agent of notice of the commencement by or against one or more Loan Parties of an Insolvency Proceeding and subject to the provisions of this Agreement, including
Section 6.10, the Collateral Agent shall retain legal counsel acceptable to the Trustee, a Term Loan Agent and the Swap Representative, and shall exercise such remedies under the Collateral Documents as it shall be instructed by the
Directing Creditors. 
 Section 4.05 No Inconsistent Actions. Each of the Trustee, a Term Loan Agent and the Swap Representative agree
to take no action in an Insolvency Proceeding with respect to any Loan Party or the Collateral which is inconsistent with the terms of this Agreement. 
 Section 4.06 Application of Proceeds. In the event of the realization of Proceeds of any collection or disposition of Collateral pursuant to the exercise of remedies under the Collateral Documents, the
Collateral Agent shall distribute such Proceeds to the specified Persons in the following order of priority: 
 FIRST, to the
payment of advances made and liabilities incurred by the Collateral Agent in order to protect the Liens granted by the Collateral Documents or the Collateral, with interest thereon at the rate that would then be applicable to the Senior Secured
Notes, and the payment of all reasonable costs and expenses incurred by the Collateral Agent, the Trustee or a Term Loan Agent in connection with the preservation, collection, foreclosure or enforcement of the Liens granted by the Collateral
Documents or any interest, right, power or remedy of the Collateral Agent or in connection with the collection or enforcement of any of the Finance Obligations in any Insolvency Proceeding, including all reasonable fees and disbursements of
attorneys, accountants, consultants, appraisers and other professionals engaged by the Collateral Agent, the Trustee or a Term Loan Agent and reasonable compensation of the Collateral Agent, the Trustee or a Term Loan Agent for services rendered in
connection therewith; 
 SECOND, to the payment of accrued and unpaid interest on the Senior Secured Notes, on any applicable
Term Loans and on any applicable Swap Obligations, on a pro-rata basis (to the extent the remaining Proceeds are not sufficient to make the distribution referred to in this clause in full); 
 THIRD, to the payment of any due and unpaid premium, if any, in respect of the prepayment or payment of the Senior Secured Notes and any
Term Loans, on a pro-rata basis (to the extent the remaining Proceeds are not sufficient to make the distribution referred to in this clause in full); 
 FOURTH, to the payment of the due and unpaid principal of the Senior Secured Notes and any Term Loans and the then unpaid amount of the Swap Obligations, on a pro-rata basis (to the extent the remaining Proceeds are
not sufficient to make the distribution referred to in this clause in full); 
  

 18 

 FIFTH, to any remaining unpaid amounts of the Note/Term Obligations (other than amounts
described in clause SIXTH below) and of the Swap Obligations, on a pro-rata basis (to the extent the remaining Proceeds are not sufficient to make the distribution referred to in this clause in full); 
 SIXTH, to the payment of the fees of legal counsel for each Term Lender, if applicable, on a pari passu basis in accordance with the terms
of a Term Loan Agreement and any Term Loan Documents; and 
 SEVENTH, to other Persons as their interests may appear or as
instructed by a court of competent jurisdiction. 
 No party hereto shall be entitled to a distribution on any lower priority pursuant to
clauses FIRST through SEVENTH above unless and until all higher priorities have been paid in full. 
 Section 4.07 Sharing
of Asset Sale Proceeds and Event of Loss Proceeds. In any circumstance when the Collateral Agent receives Excess Proceeds or Excess Loss Proceeds (as such terms or any substantially similar terms are defined in the Indenture and a Term Loan
Agreement) pursuant to any Note Document or Term Loan Document and the Indenture and a Term Loan Agreement each specifies that all or a portion of such proceeds are to be applied to an “Asset Sale Proceeds Offer” or “Loss
Proceeds Offer” (as such terms or any substantially similar terms are defined in the Indenture and a Term Loan Agreement), as the case may be, the Collateral Agent shall divide such proceeds between the Noteholders and any Term Lenders
entitled to such right in proportion to the principal amounts of the Senior Secured Notes and Term Loans tendered. The parties acknowledge that the Indenture provides, and a Term Loan Agreement may provide that if the Noteholders and/or Term Lenders
do not accept Excess Proceeds or Excess Loss Proceeds (as such terms or any substantially similar terms are defined in the Indenture and a Term Loan Agreement), as the case may be, or Net Cash Proceeds of an Asset Sale or Net Loss Proceeds of an
Event of Loss (as such terms or any substantially similar terms are defined in the Indenture and a Term Loan Agreement) in the full amount to which they are entitled, the portion thereof which would otherwise have been applied to the redemption of
Senior Secured Notes or to the prepayment of any Term Loans in accordance herewith will be paid to DRI. 
 Section 4.08 Credit Bid
Rights. 
 (a) If, during the continuance of an Event of Default, the Collateral Agent forecloses any of its Liens upon
any Collateral, whether by public sale or private sale or judicial foreclosure or otherwise, and if directed by the Directing Creditors to exercise its credit bid rights as provided in this Section 4.08, the Collateral Agent, acting for
and on behalf of the holders of Finance Obligations, shall be entitled (to the fullest extent it may lawfully do so) to use and apply then due and payable Finance 

  

 19 

 
Obligations as a credit on account of the purchase price payable by the Collateral Agent for any Collateral sold to the Collateral Agent at the corresponding
foreclosure sale for all purposes related to bidding and making settlement or payment of the purchase price at such foreclosure sale. 
 (b) If, in connection with or, during the continuance of an Event of Default, in anticipation of any foreclosure of any of the Collateral Agent’s Liens upon any Collateral, Term Loans, Swap Obligations and Senior
Secured Notes representing at least a majority in outstanding principal amount of Term Loans, Swap Obligations and Senior Secured Notes then outstanding are transferred to and registered in the name of a single transferee for purposes of
facilitating or executing a bid for such Collateral at the corresponding foreclosure sale, such transferee shall be entitled (to the fullest extent it may lawfully do so) to use and apply all then due and payable Finance Obligations outstanding to
such transferee as a credit on account of the purchase price payable by such transferee for any Collateral sold to such transferee at such foreclosure sale, for all purposes related to bidding and making settlement or payment of the purchase price
at such foreclosure sale, but only if all Noteholders, Term Lenders and Swap Creditors consent thereto or if: 
 (i) each
Creditor has been offered the opportunity to transfer to such transferee any or all of the Senior Secured Notes, any Term Loans and any Swap Obligations outstanding held by such Creditor on terms equivalent to the most favorable terms offered by
such transferee to any Creditor for or in connection with any transfer of Term Loans, Swap Obligations or Senior Secured Notes to such transferee; and 
 (ii) effective provision is made (or found by order of a court of competent jurisdiction to have been made) for the pro-rata sharing among the Credit Classes of proceeds of the Collateral, even if the proceeds
received by Creditors other than such transferee are different in kind (if reasonably equivalent in value with at least equivalent liquidity) from the proceeds to be realized by such transferee if it is the successful bidder at the foreclosure sale.

 (c) Each of the Loan Parties hereby grants, confirms and agrees to cooperate with and permit the exercise and enforcement
of the rights set forth in this Section 4.08. 
 ARTICLE V 
 CERTAIN OBLIGATIONS ENFORCEABLE BY THE LOAN PARTIES 
 Section 5.01 Release of
Liens. 
 (a) The Collateral Agent agrees for the benefit of the Loan Parties that if the Collateral Agent at any time
receives a written certification signed by a Responsible Officer (an “Officer’s Certificate”) stating that the Collateral Agent is permitted or required (x) by the Indenture and each Term Loan Agreement, if any,
(y) by 

  

 20 

 
Section 7.11 of the Security Agreement or Section 8.11 of the Pledge Agreement or (z) pursuant to the instructions of the Directing Creditors,
to release any property of any Loan Party described in such Officer’s Certificate from any Lien granted by a Collateral Document specified in such Officer’s Certificate, accompanied by the proposed instrument releasing such Lien as to such
property, then, subject to Article VI, the Collateral Agent will (upon receipt of a written certification of a Responsible Officer of DRI and Duane Reade that the Trustee has received all documents, if any, required by the Trust
Indenture Act and the Indenture) within three Business Days thereafter, release such Lien upon such property by executing (and if necessary acknowledging in recordable form) such proposed instrument reasonably requested by the Loan Parties and
delivering it to the applicable Loan Party requesting the same. Any such document shall be without recourse to or warranty by the Collateral Agent or the other Finance Parties. 
 (b) Any Collateral that is released automatically pursuant to Section 7.11 of the Security Agreement, Section 8.11 of the Pledge
Agreement or any other Collateral Document shall be deemed to be automatically released under this Agreement without any action on the part of the Collateral Agent. 
 Section 5.02 Delivery of Copies to the Trustee, a Term Loan Agent and Swap Representative. The applicable Loan Party shall deliver to the Trustee, a Term Loan Agent and any Swap Representative requesting the
same a copy of each Officer’s Certificate delivered to the Collateral Agent pursuant to Section 5.01, together with copies of all documents delivered to the Collateral Agent with such Officer’s Certificate. The Trustee, a Term
Loan Agent and the Swap Representative shall not be obligated to take notice thereof or to act thereon. 
 Section 5.03 Collateral Agent
Not Required to Make Filings or Recordations. The Collateral Agent is not required to file, register or record any instrument releasing or subordinating its security interest in any Collateral. 
 Section 5.04 No Actions to Address Exceptions. Each Creditor acknowledges that actions will not be taken to address the exceptions noted in
Section 3.04 of the Security Agreement and that the Collateral Agent may not have a perfected security interest with respect to the matters specified therein. 
 ARTICLE VI 
 THE COLLATERAL AGENT 
 Section 6.01 No Implied Duty. The Collateral Agent shall not have any duties or responsibilities except those expressly assumed by it in this
Agreement and the other Collateral Documents and shall not be required to take any action which is contrary to applicable law or any provision of this Agreement or the other Collateral Documents. Where the Collateral Agent is permitted but not
required to take any action pursuant to any Collateral Document, the Collateral Agent may take any such action but shall have no obligation to take any such action without the direction of the Directing Creditors and the Collateral Agent shall not
be liable to any party for not taking such action if the 
  

 21 

 
Directing Creditors have not directed the Collateral Agent to take such action. The Collateral Agent makes no representation as to the existence, validity,
value, genuineness, perfection, priority or the collectibility of any security or other document or other instrument held by or delivered to the Collateral Agent. The Collateral Agent shall not be called upon to advise any party as to the wisdom in
taking or refraining to take any action with respect to the Collateral. 
 Section 6.02 Appointment of Co-Agents and Sub-Agents. The
Collateral Agent may employ agents and appoint sub-agents or co-collateral agents as it determines appropriate in the performance of its duties hereunder. The Collateral Agent will exercise reasonable care in selecting any such agent, sub-agent or
co-collateral agent but shall not otherwise be responsible or liable for any act or omission of any such agent, sub-agent or co-collateral agent. 
 Section 6.03 Other Agreements. The Collateral Agent has accepted and is bound by the Collateral Documents delivered to it as of the date of this Agreement and listed on Schedule 2.02 and, subject to
Section 7.01(b) and this Article VI, shall accept and be bound by all Collateral Documents delivered to it at any time after the date of this Agreement. The Collateral Agent shall not otherwise be bound by, or obligated to
take cognizance of the provisions of, any agreement to which it is not a party, including a Term Loan Agreement, any Swap Agreements and the Indenture. The Collateral Agent shall not be responsible for compliance with the terms of any Finance
Document by any Loan Party and shall have no duty to monitor any such compliance. 
 Section 6.04 Solicitation of Instructions. The
Collateral Agent may at any time solicit confirmatory instructions, including from the Directing Creditors or an order of a court of competent jurisdiction, as to any action which it may be requested or required to take, or which it may propose to
take, in the performance of any of its obligations under this Agreement. 
 Section 6.05 Limitation of Liability. The Collateral Agent
shall not be responsible or liable for any action taken or omitted to be taken by it hereunder or under any Collateral Document, except for its own gross negligence or willful misconduct. 
 Section 6.06 Documents in Satisfactory Form. The Collateral Agent shall be entitled to require that all agreements, certificates, opinions,
instruments and other documents at any time submitted to it, including those expressly provided for in this Agreement, be delivered to it in a form and upon substantive provisions reasonably satisfactory to it. 
 Section 6.07 Entitled to Rely. The Collateral Agent may rely conclusively upon any certificate, notice or other document (including any electronic
transmission) reasonably believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper Person or Persons and need not investigate any fact or matter stated in any such document. The Collateral Agent may seek
and rely upon any judicial order or judgment, upon any advice, opinion or statement of legal counsel, independent consultants and other experts selected by it in good faith and upon any 
  

 22 

 
certification, instruction, notice or other writing delivered to it by any Loan Party in compliance with the provisions of this Agreement or delivered to it
by the Trustee, a Term Loan Agent or the Swap Representative as to the Creditors whose action or consent is required for an instruction of Directing Creditors, without being required to determine the authenticity thereof or the correctness of any
fact stated therein or the propriety or validity of service thereof. The Collateral Agent may act in reliance upon any instrument comporting with the provisions of this Agreement or any signature reasonably believed by it to be genuine and may
assume that any Person purporting to give notice or receipt or advice or make any statement or execute any document in connection with the provisions hereof has been duly authorized to do so. To the extent an officers’ certificate or an opinion
of counsel is required or permitted under this Agreement to be delivered to the Collateral Agent in respect of any matter, the Collateral Agent may rely conclusively on such officers’ certificate or opinion of counsel as to such matter. The
Collateral Agent may request an opinion of counsel, a certificate of a Responsible Officer, or both, at any time when it is required or requested to take any action (other than pursuant to Sections 2.04, 3.02, 5.01,
6.03, and 7.03(d) hereof or any similar provision of any Collateral Document) hereunder or under any Collateral Document stating the such action is permitted or authorized pursuant to the terms hereof and of the Finance Documents and
that all conditions precedent to the taking of such action have been complied with and the Collateral Agent may rely conclusively on such officer’s certificate or opinion of counsel with respect thereto. 
 Section 6.08 Events of Default. The Collateral Agent shall not be required to inquire as to the occurrence or absence of any Event of Default
under the Indenture, a Term Loan Agreement, the Swap Agreements or any other Finance Document and shall not be affected by or required to act upon any notice or knowledge as to the occurrence of any Event of Default unless and until it receives a
notice pursuant to Section 4.02. 
 Section 6.09 Actions by Collateral Agent. As to any matter not expressly provided for
by this Agreement, the Collateral Agent shall act or refrain from acting as directed by the Directing Creditors and shall be fully protected in doing so. 
 Section 6.10 Security or Indemnity in Favor of the Collateral Agent. The Collateral Agent shall not be required to advance or expend any funds or otherwise incur any financial liability in the performance of
its duties or the exercise of its powers or rights hereunder unless it has been provided with security or indemnity which it, in its discretion, deems sufficient against any and all liability or expense which may be incurred by it by reason of
taking or continuing to take such action. The Loan Parties hereby jointly and severally agree to provide such security or indemnity to the Collateral Agent promptly upon request by the Collateral Agent therefor. The Collateral Agent shall be under
no obligation to exercise any of the rights or powers vested in it by this Agreement unless the Finance Parties have offered to the Collateral Agent security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that
might be incurred by it in compliance with such request or direction. 
  

 23 

 Section 6.11 Resignation or Removal of the Collateral Agent. Subject to the appointment of a
successor Collateral Agent as provided in Section 6.12 and the acceptance of such appointment by the successor Collateral Agent, (i) the Collateral Agent may resign at any time by giving not less than 45 days’ notice of
resignation to the Trustee, a Term Loan Agent, the Swap Representative known to it, and DRI, and (ii) the Collateral Agent may be removed at any time, with or without cause, pursuant to the instructions of the Directing Creditors. 

Section 6.12 Appointment of Successor Collateral Agent. Upon any such resignation or removal, a successor Collateral Agent may be appointed by
the Trustee, a Term Loan Agent and the Swap Representative, acting jointly, or by the instructions of the Directing Creditors, in each case with the consent of DRI. If no successor Collateral Agent shall have been so appointed and shall have
accepted such appointment within 45 days after the predecessor Collateral Agent gave notice of resignation or was removed, the retiring Collateral Agent may appoint a successor Collateral Agent, or petition a court of competent jurisdiction for
appointment of a successor Collateral Agent, which shall be a bank or trust company (i) authorized to exercise corporate trust powers, (ii) acceptable to the Trustee and a Term Loan Agent (or, if the Note/Term Obligations have been repaid
in full, the Swap Representative), (iii) having a combined capital and surplus of at least $50,000,000 and (iv) maintaining an office in New York, New York. 
 Section 6.13 Succession. When the Person so appointed as successor Collateral Agent accepts such appointment: 
 (i) such Person shall succeed to and become vested with all the rights, powers, privileges and duties of the predecessor Collateral Agent,
and the predecessor Collateral Agent shall be discharged from its duties and obligations hereunder, and 
 (ii) the
predecessor Collateral Agent, upon payment of all amounts owed to it, shall promptly transfer all Collateral within its possession or control to the possession or control of the successor Collateral Agent and shall execute and deliver such notices,
instructions and assignments as may be necessary or desirable or reasonably requested by the successor Collateral Agent to transfer to the successor Collateral Agent all Liens, interests, rights, powers and remedies of the predecessor Collateral
Agent in respect of the Collateral or under the Collateral Documents. 
 Thereafter the predecessor Collateral Agent shall remain entitled to
enforce the immunities granted to it in this Article VI. 
 ARTICLE VII 
 MISCELLANEOUS 
 Section 7.01
Amendment. 
  

 24 

 (a) This Agreement may be amended or supplemented from time to time by the written
agreement of the Loan Parties and the Collateral Agent, acting pursuant to the instructions of the Directing Creditors if so required pursuant to Article III and in compliance with Section 3.02. 
 (b) Notwithstanding anything contained herein or in any Collateral Document, any (x) Collateral Document entered into after the Issue
Date that is not in the form attached to any Collateral Document entered into on the Issue Date or (y) amendment or supplement to any Collateral Document that, in each case, imposes any obligation upon the Collateral Agent not contemplated by
this Agreement or the other Collateral Documents in effect on the Issue Date or adversely affects the rights of the Collateral Agent in its individual capacity will become effective only with the consent of the Collateral Agent in its individual
capacity. The Collateral Agent shall promptly receive copies of all Collateral Documents executed after the Issue Date. 
 Section 7.02
Further Assurances. 
 (a) At any time or from time to time, each Loan Party will, at its expense, promptly execute,
acknowledge and deliver such further documents and do such other acts and things as may be necessary or appropriate, and such other instruments, acts or things as the Collateral Agent may reasonably request, in order to assure and confirm that each
Subsidiary required by the Indenture or a Term Loan Agreement to guarantee payment of the Finance Obligations has duly guaranteed payment of all the Finance Obligations and that the Collateral Agent holds, for the exclusive benefit of all present
and future holders of Finance Obligations, duly created, enforceable and perfected first priority Liens (subject only to Permitted Liens (as defined in the Security Agreement)) upon all interests in Collateral at any time owned or acquired by the
Loan Parties or any of such Subsidiary or as the Collateral Agent, the Trustee, a Term Loan Agent or any Swap Representative otherwise may reasonably request in order to carry out and give full effect to the intents and purposes of the Term Loan
Documents and the Note Documents. 
 (b) Upon request of the Collateral Agent at any time and from time to time, each of the
Loan Parties will, and will cause each of its Subsidiaries to, promptly execute, acknowledge and deliver such security documents, instruments, certificates, notices and other documents and take such other actions as shall be required or which the
Collateral Agent may reasonably request to create, perfect, protect, assure or enforce the Liens and benefits intended to be conferred, as contemplated by the Indenture, a Term Loan Agreement and the Collateral Documents, upon the Collateral Agent
for the exclusive benefit of the holders of the Finance Obligations. If any Loan Party or such Subsidiary fails to do so, the Collateral Agent is hereby irrevocably authorized and empowered, with full power of substitution, to execute, acknowledge
and deliver such security documents, instruments, certificates, notices and other documents and, subject to the provisions of the Collateral Documents, take such other actions in the name, place and stead of the Loan Parties or such Subsidiary, but
the Collateral Agent will have no obligation to do so and no liability for any action taken or omitted by it in good faith in connection therewith. 
  

 25 

 Section 7.03 Successors and Assigns; Term Loan Agent Joinder. 
 (a) This Agreement is legally binding upon and enforceable against the Collateral Agent. Except as provided in Section 6.02 or
in any Collateral Document, the Person acting as Collateral Agent may not, in its individual capacity, delegate any of its duties or assign any of its rights hereunder, and any attempted delegation or assignment of any such duties or rights shall be
void. All obligations of the Collateral Agent hereunder shall inure to the benefit of, and be enforceable by, the Trustee, a Term Loan Agent, the Swap Representative and each present and future holder of Finance Obligations, each of whom shall be
entitled to enforce this Agreement as a third party beneficiary hereof, and all of their respective successors and assigns. 
 (b) This Agreement is further binding upon each of the Loan Parties and their respective successors. No Loan Party may delegate any of its duties or assign any of its rights hereunder, and any attempted delegation or assignment of any such
duties or rights shall be void. 
 (c) The obligations of the Collateral Agent set forth in Sections 5.01 and
5.02 of this Agreement shall also be enforceable by the Loan Parties directly affected by any breach thereof and their respective successors and assigns. 
 (d) Upon the Loan Parties’ entering into a Term Loan Agreement, a Term Loan Agent shall become a party to this Agreement by executing
and delivering its written agreement (the “Joinder”), for the enforceable benefit of the Collateral Agent, the Swap Creditors and the Trustee, that: (i) all Finance Obligations shall be and are secured equally and ratably by
all Liens at any time granted by the Loan Parties to secure any Finance Obligations, whether or not upon property otherwise constituting Collateral; (ii) all such Liens shall be enforceable by the Collateral Agent for all holders of Finance
Obligations equally and ratably; (iii) such Term Loan Agent on behalf of the applicable Term Lenders consents to and will be bound by the provisions of this Agreement including those relating to the order of application of proceeds from
enforcement of the Collateral Agent’s Liens upon the Collateral; (iv) a Term Loan Agent consents to and directs the Collateral Agent to perform its obligations under this Agreement and (v) such Term Loan Agent is authorized by the
requisite Term Lenders (which authorization may be set forth in a Term Loan Agreement) to execute the Joinder. Upon execution of the Joinder, a Term Loan Agent shall automatically become a party to this Agreement with the same force and effect as if
an original party hereunder. The execution and delivery of such Joinder shall not require the consent of any other Finance Party hereunder. 
 Section 7.04 Delay and Waiver. No failure to exercise, no course of dealing with respect to the exercise of, and no delay in exercising, any right, power or remedy arising under this Agreement or any of the other Collateral Documents
shall impair any such right, power or remedy or operate as a waiver thereof. No single or partial exercise of any such right, power or remedy shall preclude any other or future exercise thereof or the exercise of any other right, power or remedy.
The remedies herein are cumulative and are not exclusive of any remedies provided by law. 
  

 26 

 Section 7.05 Notices. Any communications, including notices and instructions, between the parties
hereto or notices provided herein to be given may be given to the following addresses: 
 If to the Collateral Agent: 
 U.S. Bank National Association 
 225 Asylum
Street 
 23rd Floor 
 Hartford,
CT 06103 
 Attn: Susan C. Merker 
 Telephone: 860-241-6815 
 Facsimile: 860- 241-6897 
 If to a Term Loan Agent: 
 At its address in the Joinder 
 If to the Trustee: 
 U.S. Bank National
Association 
 225 Asylum Street 
 23rd Floor 
 Hartford, CT 06103 
 Attn: Susan C. Merker 
 Telephone: 860-241-6815 
 Facsimile: 860- 241-6897 
 If to the Swap Representative: 
 At is address in the Sharing Confirmation 
 If to any Loan Party: 
 Duane Reade Inc. 
 440 Ninth Avenue, 6th Floor 
 New York, NY 10001 
 Attn: John K. Henry 
 Telephone: 212-273-5700

 Facsimile: 212-244-6525 
 Unless it has
received a signed Joinder from a Term Loan Agent, the Collateral Agent, in acting hereunder, shall be entitled to assume that no Term Loan Agreements are in existence. Unless it has actual knowledge (including by way of written notice from a Swap
Creditor or any Swap Representative) to the contrary, the Collateral Agent, in acting hereunder, shall be entitled to assume that no Swap Agreements are in existence. Each notice hereunder shall be in writing and may be personally served, telexed or
sent by facsimile or United States mail or courier service and shall be deemed to have been 

  

 27 

 
given when delivered in person or by courier service and signed for against receipt thereof, upon receipt of facsimile or telex, or three Business Days after
depositing it in the United States mail with postage prepaid and properly addressed; provided, no notice to the Collateral Agent, the Trustee or a Term Loan Agent shall be effective unless and until received by its officer responsible for the
administration of the transaction contemplated hereby. Each party may change its address for notice hereunder to any other location within the continental United States by giving written notice thereof to the other parties as set forth in this
Section 7.05. 
 Section 7.06 Entire Agreement. This Agreement states the complete agreement of the parties relating to
the undertaking of the Collateral Agent set forth herein and supersedes all oral negotiations and prior writings in respect of such undertaking. 
 Section 7.07 Compensation and Expenses. Whether or not the transactions contemplated hereby shall be consummated, each of the Loan Parties jointly and severally agrees to pay, promptly within 30 days following demand: 
 (i) reasonable compensation to the Collateral Agent and its agents, co-agents and sub-agents; 
 (ii) all reasonable costs and expenses incurred in the preparation, execution, delivery, filing, recordation, administration or
enforcement of this Agreement or any other Collateral Document or any consent, amendment, waiver or other modification relating thereto; 
 (iii) all reasonable fees, expenses and disbursements of legal counsel and any auditors, accountants, consultants or appraisers or other professional advisors and agents engaged by the Collateral Agent in connection
with the negotiation, preparation, closing, administration, performance or enforcement of this Agreement and the other Collateral Documents or any consent, amendment waiver or other modification relating thereto and any other document or matter
requested by one or more Loan Parties; 
 (iv) all reasonable costs and expenses of creating, perfecting, releasing or
enforcing the Collateral Agent’s security interests in the Collateral, including filing and recording fees, expenses and taxes, stamp or documentary taxes, search fees, title insurance premiums; 
 (v) all reasonable costs of any opinion of counsel required hereby to be delivered to the Collateral Agent or requested by the Collateral
Agent in connection herewith; 
 (vi) all other reasonable costs and expenses incurred by the Collateral Agent in connection
with the negotiation, preparation and execution of the Collateral Documents and any consents, amendments, waivers or other modifications thereto and the transactions contemplated thereby or the exercise of its rights or performance of its
obligations by the Collateral Agent thereunder; and 
  

 28 

 (vii) all reasonable costs and expenses incurred by the Collateral Agent in connection
with the preservation, collection, foreclosure or enforcement of the Liens granted by the Collateral Documents or any interest, right, power or remedy of the Collateral Agent or in connection with the collection or enforcement of any of the Finance
Obligations or the proof, protection, administration or resolution of any claim based upon the Finance Obligations in any Insolvency Proceeding, including all reasonable fees and disbursements of attorneys, accountants, auditors, consultants,
appraisers and other professionals engaged by the Collateral Agent, the Trustee, a Term Loan Agent or the Swap Representative. 
 The agreements in this
Section 7.07 shall survive repayment of the Senior Secured Notes, any Term Loans and the Swap Obligations and all other amounts payable hereunder. 
 Section 7.08 Indemnity. 
 (a) In addition to the payment of costs and expenses
pursuant to Section 7.07, whether or not the transactions contemplated hereby shall be consummated, each of the Loan Parties jointly and severally agrees to defend (subject to the Indemnitees’ selection of counsel), indemnify, pay
and hold harmless, the Collateral Agent, the Trustee, a Term Loan Agent and the Swap Representative and each of their respective Affiliates and each and all of the directors, officers, partners, trustees, employees, attorneys and agents, and in each
case their respective heirs, representatives, successors and assigns (each of the foregoing, an “Indemnitee”) from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, suits,
judgments, costs and expenses of any kind, including, without limitation, the reasonable fees and disbursements of counsel, which may be incurred by, imposed on or asserted against such Indemnitee in connection with any investigation or
administrative or judicial proceeding (whether or not such Indemnitee shall be designated a party thereto) brought or threatened relating to or arising out of this Agreement or in any other way connected with the enforcement of any of the terms of,
or the preservation of any rights hereunder (“Indemnified Liabilities”); provided, no Indemnitee shall be entitled to indemnification hereunder with respect to any Indemnified Liability to the extent such Indemnified Liability is
found by a final and nonappealable decision of a court of competent jurisdiction to have resulted directly and primarily from the gross negligence or willful misconduct of such Indemnitee. 
 (b) All amounts due under Section 7.08(a) shall be payable not later than 10 days after written demand therefor. 

(c) To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in Section 7.08(a) may be
unenforceable in whole or in part because they are violative of any law or public policy, each of the Loan Parties shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of
all Indemnified Liabilities incurred by Indemnitees or any of them. 
  

 29 

 (d) No Loan Party shall ever assert any claim against any Indemnitee, on any theory of
liability, for any lost profits or special, indirect or consequential damages or (to the fullest extent lawful) any punitive damages arising out of, in connection with, or as a result of, this Agreement or any other Term Loan Document or Note
Document or any agreement or instrument or transaction contemplated hereby or relating in any respect to any Indemnified Liability, and each Loan Party hereby forever waives, releases and agrees not to sue upon any claim for any such lost profits or
special, indirect, consequential or (to the fullest extent lawful) punitive damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
 (e) No Finance Party shall ever assert any claim against the Collateral Agent each of its Affiliates and each and all of the directors,
officers, partners, trustees, employees, attorneys and agents, and in each case their respective heirs, representatives, successors and assigns, on any theory of liability, for any lost profits or special, indirect or consequential damages or (to
the fullest extent lawful) any punitive damages arising out of, in connection with, or as a result of, this Agreement or any other Term Loan Document or Note Document or any agreement or instrument or transaction contemplated hereby or relating in
any respect to any Indemnified Liability, and each Finance Party hereby forever waives, releases and agrees not to sue upon any claim for any such lost profits or special, indirect, consequential or (to the fullest extent lawful) punitive damages,
whether or not accrued and whether or not known or suspected to exist in its favor. 
 (f) The agreements in this
Section 7.08 shall survive repayment of the Term Loan and the Senior Secured Notes and all other amounts payable hereunder. 
 Section 7.09 Obligations Secured. All obligations of the Loan Parties set forth in or arising under this Agreement shall be Finance Obligations and are secured by all Liens granted by the Collateral Documents. 
 Section 7.10 Severability. If any provision of this Agreement is invalid, illegal or unenforceable in any respect or in any jurisdiction, the
validity, legality and enforceability of such provision in all other respects and of all remaining provisions, and of such provision in all other jurisdictions, shall not in any way be affected or impaired thereby. 
 Section 7.11 Governing Law; Submission to Jurisdiction. 
 (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 
  

 30 

 (b) Any legal action or proceeding with respect to this Agreement or any other Collateral
Document may be brought in the courts of the State of New York in New York County, or of the United States for the Southern District of New York, and, by execution and delivery of this Agreement, each Loan Party hereby irrevocably
accepts for itself and in respect of its property, generally and unconditionally, the nonexclusive jurisdiction of such courts. Each Loan Party irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of the venue of any such proceeding brought in such court and any claim that any such proceeding brought in any such court has been brought in an inconvenient forum. 
 (c) Each Loan Party hereby consents to process being served in any such suit, action or proceeding by the mailing of a copy thereof by
registered or certified mail, postage prepaid, return receipt requested, to Holdings’ or such Borrower’s address referred to in Section 7.05, as the case may be. Each Loan Party agrees that such service (i) shall be deemed
in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by law, be taken and held to be valid personal service upon and personal delivery to it. Nothing in
this Section 7.11 shall affect the right of the Collateral Agent, the Trustee, a Term Loan Agent or the Swap Representative to serve process in any manner permitted by law or limit the right of any of them to bring proceedings against
one or more Loan Parties in the courts of any jurisdiction or jurisdictions. 
 Section 7.12 Waiver of Right to Trial by Jury. EACH
PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY TERM LOAN DOCUMENT OR ANY NOTE DOCUMENT IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS
OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY TERM LOAN DOCUMENT OR NOTE DOCUMENT OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH
PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 Section 7.13
Section Titles. The section titles contained in this Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of this Agreement, except when used to reference such sections. 

 

 31 

 Section 7.14 Counterparts; Effectiveness. This Agreement may be executed in one or more
counterparts, each of which shall be an original and all of which shall together constitute one and the same document. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature
pages are attached to the same document. Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission shall be as effective as delivery of a manually executed counterpart thereof. This Agreement shall become
effective upon the execution of a counterpart hereof by each of the parties hereto and receipt by each party of written or telephonic notification of such execution and authorization of delivery thereof. 
 [Signature Pages Follow] 
  

 32 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written
above. 
  

					
	DUANE READE HOLDINGS, INC.
		
	By: 	 	/s/ John K. Henry
		 	Name:	 	John K. Henry
		 	Title:	 	 Senior Vice President and
 Chief Financial Officer

	
	DUANE READE INC.
		
	By:	 	/s/ John K. Henry
		 	Name:	 	John K. Henry
		 	Title:	 	 Senior Vice President and
 Chief Financial Officer

	
	DUANE READE
		
	By:	 	Duane Reade Inc., a General Partner
		
	By:	 	/s/ John K. Henry
		 	Name:	 	John K. Henry
		 	Title:	 	 Senior Vice President and
 Chief Financial Officer

		
	By:	 	DRI I Inc., a General Partner
		
	By: 	 	/s/ John K. Henry
		 	Name:	 	John K. Henry
		 	Title:	 	Treasurer
	
	DRI I INC.
		
	By: 	 	/s/ John K. Henry
		 	Name:	 	John K. Henry
		 	Title:	 	Treasurer

					
	DUANE READE INTERNATIONAL, LLC
		
	By: 	 	/s/ Joseph C. Magnacca
		 	Name:	 	Joseph C. Magnacca
		 	Title:	 	Manager
	
	DUANE READE REALTY, INC.
		
	By: 	 	/s/ John K. Henry
		 	Name:	 	John K. Henry
		 	Title:	 	Treasurer

					
	 U.S. BANK NATIONAL ASSOCIATION,
 as Trustee

		
	By: 	 	/s/ Susan C. Merker
		 	Name:	 	Susan C. Merker
		 	Title:	 	Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Collateral Agent

		
	By: 	 	/s/ Susan C. Merker
		 	Name:	 	Susan C. Merker
		 	Title:	 	Vice President

 Schedule 2.02 – Collateral Documents 
  

	1.	Pledge Agreement, dated of the date hereof (including all exhibits and annexes thereto), among the Loan Parties from time to time party thereto and U.S. Bank National Association,
as Collateral Agent. 

  

	2.	Security Agreement, dated as of the date hereof (including all exhibits and annexes thereto), among the Loan Parties from time to time party thereto and U.S. Bank National
Association, as Collateral Agent. 

  

	3.	Letter agreement, dated as of the date hereof, regarding the Blocked Account Service Agreement dated as of July 30, 2004 (including all exhibits and annexes thereto), among
Duane Reade, Duane Reade International, LLC, U.S. Bank National Association, as Collateral Agent, Bank of America, N.A., as Revolving Credit Agent, Bank of America, N.A., as depository bank, and U.S. Bank National Association, as the collateral
agent for the Existing Senior Secured Notes. 

  

	4.	Notice of Grant of Security Interest in United States Patents and Trademarks, dated as of the date hereof, by Duane Reade International, LLC in favor of U.S. Bank National
Association, as Collateral Agent. 

  

	5.	Intercreditor and Collateral Agency Agreement, dated as of the date hereof (including all exhibits and annexes thereto), by and among Holdings, DRI, Duane Reade, DRI I, DR
International, DR Realty and U.S. Bank National Association, as Trustee and Collateral Agent. 

  

	6.	Perfection Certificate of the Loan Parties, dated as of the date hereof. 

 Schedule 2.02 – Page 1Dealer Managers Agreement

 Exhibit 10.1 
 DEALER MANAGERS AGREEMENT 
 July 8, 2009 
 Goldman, Sachs & Co. 
 Banc of America
Securities LLC 
 c/o Goldman, Sachs & Co., 
 As Dealer Managers, 
 85 Broad Street 
 New York, New York 10004 
 Ladies and Gentlemen: 
 Duane Reade Inc., a Delaware corporation (the “Company”), and Duane Reade, a New York general partnership and subsidiary of the
Company (“Duane Read GP” and, together with the Company, the “Issuers”), plan to (a) commence a tender offer for any and all of their outstanding Senior Secured Floating Rate Notes due 2010 (the “Floating Rate
Notes”) and engage in a related solicitation of consents from holders of Floating Rate Notes to certain amendments to the indenture under which the Floating Rate Notes were issued (the “FRN Indenture”) (such tender offer and consent
solicitation being collectively referred to herein as the “FRN Tender Offer”); and (b) commence a tender offer for any and all of their outstanding Senior Subordinated Notes due 2011 (“Senior Subordinated Notes” and,
together with the Floating Rate Notes, the “Securities”) and engage in a related solicitation of consents from holders of the Senior Subordinated Notes to certain amendments to the indenture under which the Senior Subordinated Notes were
issued (the “Sub Note Indenture” and, together with the FRN Indenture, the “Indentures”) (such tender offer and consent solicitation being collectively referred to herein as the “Senior Subordinated Tender Offer” and,
together with the FRN Tender Offer, the “Tender Offers”), upon the terms and subject to the conditions set forth in the tender offer and consent solicitation material (the “Offer Material”) which the Company has caused to be
prepared and furnished to you on or prior to the date hereof for use in connection with the Tender Offers, including (a) the offer to purchase and solicitation of consents dated the date hereof (the “Offer to Purchase”), (b) the
letter of transmittal to be used by holders to tender Securities and grant consents pursuant to the Tender Offers (the “Letter of Transmittal”) and (c) the press release dated the date hereof relating to the Tender Offers. Any other
offering materials and information relating to the Tender Offers that the Issuers or any of their affiliates may prepare or approve shall be called “Additional Material”. 
  

	 	1.	Appointment of Dealer Managers 

 The Issuers hereby appoint Goldman, Sachs & Co. (“GS”) and Banc of America Securities LLC (“BAS”) as dealer managers in connection with the Tender Offers (the “Dealer
Managers”) and authorize each of GS and BAS to act on their behalf in accordance with this agreement and the terms of the Offer Material and Additional Material. The Issuers have prepared and approved the Offer Material and authorize the Dealer
Managers and any other securities dealer or any commercial bank or trust company to use the Offer Material and Additional

 
Material in connection with the solicitation of tenders and consents. You agree to furnish no written material to holders of Securities in connection with
the Tender Offers other than the Offer Material and Additional Material. It is understood that nothing in this agreement nor the nature of your services shall be deemed to create a fiduciary or agency relationship between you and the Issuers.

  

	 	2.	Transmission of Offer Material 

 The Issuers
shall cause to be delivered to each registered holder of any Securities, to each participant in The Depository Trust Company (“DTC”) appearing in the most recent available DTC securities position listing as a holder of Securities and to
each Non Objecting Beneficial Owner (“NOBO”) appearing in the most recent available NOBO list as an owner of Securities (each such registered holder, participant or owner, a “Registered or Beneficial Owner”), as soon as
practicable, copies of appropriate Offer Material and Additional Material. Thereafter, to the extent practicable until the expiration of the Tender Offers, the Issuers shall use their commercially reasonable efforts to cause copies of such material
to be mailed to each person who becomes a Registered or Beneficial Owner of Securities. 
  

	 	3.	Solicitation of Tenders 

  

	 	(a)	You agree to use commercially reasonable efforts to solicit tenders of Securities and consents pursuant to the Tender Offers. Neither you nor any of your affiliates, nor any
partners, directors, officers, agents, employees or controlling persons (if any) of you or any of your affiliates, shall have any liability to the Issuers or any other person for any act or omission on the part of any securities broker or dealer
(other than yourselves), commercial bank or trust company that solicits tenders and consents, and neither you nor any of such persons or entities referred to above shall have any liability to the Issuers or any person asserting claims on behalf of
or in right of the Issuers in connection with or as a result of either your engagement or any matter referred to in this agreement except to the extent that such liability results from your own gross negligence, willful misconduct or bad faith in
performing the services that are the subject of this agreement. In soliciting tenders, no securities broker or dealer (other than yourselves), commercial bank or trust company shall be deemed to act as your agent or the agent of the Issuers, and
each of the Dealer Managers, in their respective capacities as Dealer Managers, shall not be deemed the agent of any other securities broker or dealer or of any commercial bank or trust company. 

  

	 	(b)	The Issuers agree to furnish to each of the Dealer Managers as many copies as any Dealer Manager may reasonably request of the Offer Material and Additional Material in final form
for use by such Dealer Manager in connection with the Tender Offers. Except as required by applicable law or regulation, the Issuers shall not amend or supplement the Offer Material, or prepare or approve any Additional Material for use in
connection with the Tender Offers, without the consent of the Dealer Managers, which consent shall not be unreasonably withheld. 

  

 -2- 

	 	(c)	The Issuers agree to advise you promptly of (i) the occurrence of any event which could cause the Issuers to withdraw, rescind, terminate or modify the Tender Offers,
(ii) any proposal or requirement to amend or supplement the Offer Material or Additional Material or (iii) any other information relating to the Tender Offers which the Dealer Managers may from time to time reasonably request.

  

	 	(d)	Except as required by applicable law or regulation, the Issuers will not use or publish any material in connection with the Tender Offers, or refer to any Dealer Manager in any such
material, without such Dealer Manager’s consent, which consent shall not be unreasonably withheld. The Issuers will promptly inform the Dealer Managers of any litigation or administrative action or claim with respect to the Tender Offers.

  

	 	(e)	The Issuers agree to furnish to the Dealer Managers, to the extent the same is available to the Issuers, cards or lists or copies thereof showing the names and addresses of, and
principal amount of Securities held by, the Registered or Beneficial Owners of Securities as of a recent date, and shall use commercially reasonable efforts to advise the Dealer Managers from day to day during the period of the Tender Offers as to
any changes in identity of the Registered or Beneficial Owners of Securities. The Dealer Managers agree to use such information only in connection with the Tender Offers and not to furnish such information to any other person except in connection
with the Tender Offers. 

  

	 	(f)	The Issuers shall arrange for the depositary named in the Letter of Transmittal orally to inform you during each business day during the Tender Offers (to be followed on a daily
basis by written confirmation) as to the principal amount of Securities which have been tendered pursuant to the Tender Offers during the interval since its previous daily report to you under this provision, and the names and addresses of any
registered holder tendering $100,000 or more aggregate principal amount of Securities. 

  

	 	4.	Compensation and Expenses 

  

	 	(a)	The Issuers shall pay to the Dealer Managers, as compensation for their services as Dealer Managers, the fees as set forth on Annex I. Such fee shall be payable concurrently with
the payment for Securities under the Tender Offers. 

  

	 	(b)	 Whether or not any Securities are tendered pursuant to the Tender Offers, the Issuers shall pay all expenses of the preparation, printing, mailing and publishing of
the Offer Material and Additional Material, all fees payable to securities dealers (including yourselves), commercial banks, trust 

  

 -3- 

	 	 
companies and nominees as reimbursement of their customary mailing and handling expenses incurred in forwarding the Offer Material and Additional Material to
their customers, all fees and expenses of the depositary referred to above, the trustees under the Indentures and any information agent, any applicable transfer taxes payable in connection with the Tender Offers and all other expenses in connection
with the Tender Offers and shall reimburse the Dealer Managers for all reasonable and documented expenses incurred by the Dealer Managers in connection with their services under this agreement, including, without limitation, the fees and the
reasonable and documented disbursements of counsel to the Dealer Managers. 

  

	 	5.	Representations and Warranties by the Issuers 

 The Issuers jointly and severally represent and warrant to, and agree with, the Dealer Managers that: 
  

	 	(a)	The Company has been duly incorporated and validly exists in good standing under the laws of the State of Delaware. Duane Reade GP is a general partnership in good standing under
the laws of the State of New York. 

  

	 	(b)	The Company has all necessary corporate and Duane Reade GP has all necessary general partnership power and authority and has duly taken or will take prior to the consummation of the
Tender Offers all necessary corporate or general partnership, as applicable, action to authorize the making and consummation of the Tender Offers (including any related borrowings or other provisions for the payment for Securities by the Issuers),
the execution and delivery of (x) the supplemental indenture enacting the proposed amendments to the FRN Indenture described in the Offer Material (the “FRN Supplemental Indenture”), (y) the supplemental indenture enacting the
proposed amendments to the Sub Note Indenture described in the Offer Material (the “Sub Note Supplemental Indenture” and, together with the FRN Supplemental Indenture, the “Supplemental Indentures”), the performance of each of
the Indentures as supplemented thereby, the execution, delivery and performance of this agreement and the consummation of the transactions contemplated hereby; and this agreement has been duly executed and delivered by the Issuers; and each of the
Indentures, as supplemented by the Supplemental Indentures, upon execution and delivery of the Supplemental Indentures by the parties thereto, and assuming receipt of the requisite consents to the proposed amendments to the Indentures as set forth
in the Offer Materials, will constitute a valid and binding agreement of, the Issuers, enforceable in accordance with their terms, except that the enforceability of the Supplemental Indentures may be subject to bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at
law). 

  

 -4- 

	 	(c)	The Offer Material and Additional Material comply and (as amended or supplemented, if amended or supplemented) will comply in all material respects with all applicable requirements
of the federal securities laws; and the Offer Material and Additional Material do not and (as amended or supplemented, if amended or supplemented) will not contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, except that no representation or warranty is made as to any Dealer Manager Information (as
defined herein). 

  

	 	(d)	The making and consummation of the Tender Offers, the execution and delivery of the Supplemental Indentures and, upon receipt of the requisite consents to the proposed
amendments to the Indentures as set forth in the Offer Materials, the performance of the Indentures as supplemented thereby, the execution, delivery and performance by any of the Issuers of this agreement and the consummation of the transactions
contemplated hereby do not and will not (i) conflict with, or result in the acceleration of any obligation under or in a breach of, or constitute a default under, any of the provisions of any indenture, agreement or undertaking that is filed as
an exhibit to the annual report on Form 10-K for the year ended December 27, 2008 of Duane Reade Holdings, Inc. to which any of the Issuers is a party or by which any Issuer is bound or to which any of their respective property or assets is
subject, (ii) result in any violation of its Certificate of Incorporation (or other formation document, as applicable) or By-laws, as amended, or (iii) contravene any federal, state or local law, rule or regulation applicable to any of the
Issuers, or any order applicable to the Issuers of any court or of any other governmental agency or instrumentality having jurisdiction over it or any of their respective properties, except for conflicts, breaches, defaults or contraventions
described in clauses (i) and (iii) that would not reasonably be expected to have a material adverse effect on the business, business prospects, financial conditions or results of operations of the Issuers and their subsidiaries, taken as a
whole, or adversely affect the ability of the Issuers to consummate the Tender Offers or perform their obligations hereunder (a “Material Adverse Effect”). 

  

	 	(e)	 No consent, approval, authorization or order of, or registration, qualification or filing with, any court or regulatory authority or other governmental agency or
instrumentality is required in connection with the making and consummation of the Tender Offers, the execution and delivery of the FRN Supplemental Indenture and the performance of the FRN Indenture as supplemented thereby, the execution, delivery
and performance of this agreement or the consummation of the transactions contemplated hereby, 

  

 -5- 

	 	 
except for such consents, approvals, authorizations, orders, registrations, qualifications or filings, the failure to make or obtain which would not
reasonably be expected to have a Material Adverse Effect. 

  

	 	(f)	Assuming the satisfaction of the conditions to consummation of the Tender Offers (as set forth in the Offer Material), the Issuers have or will have available funds, and are
authorized to use such funds under applicable law, to pay the full consideration (including any consent fee) for the Securities that it may become committed to purchase pursuant to the Tender Offers and all related fees and expenses.

  

	 	(g)	Each of the Issuers, jointly and severally, agrees to pay promptly, in accordance with the terms and subject to the conditions of the Offer Material and Additional Material, such
full consideration for the Securities to be purchased pursuant to the Tender Offers. 

  

	 	(h)	The Issuers have made or will make appropriate arrangements with DTC to allow for the book-entry movement of tendered Securities between depository participants and the depositary
referred to above. 

  

	 	6.	Conditions of Obligation 

 Your obligation to
act as Dealer Managers hereunder shall at all times be subject, in your discretion, to the conditions that: 
  

	 	(a)	All representations, warranties and other statements of the Issuers contained herein are now, and at all times during the Tender Offers will be, true and correct in all material
respects; provided that, any such representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification
therein) in all respects as of such times. 

  

	 	(b)	The Issuers at all times during the Tender Offers shall have performed in all material respects all of their obligations hereunder theretofore required to have been performed.

  

	 	(c)	(x) Paul, Weiss, Rifkind, Wharton & Garrison LLP, Counsel of the Issuers, shall have furnished to you, as Dealer Managers: (i) an opinion letter, dated as of the date
of commencement of the Tender Offers, to the effect set forth in Exhibit A hereto and (ii) an opinion letter and a disclosure letter, each dated as of the date of payment for the Securities, to the effect set forth in Exhibit B hereto.

 (y) The Dealer Managers shall have received opinions dated the date of payment for the Securities from special counsel to the
Issuers with respect to certain matters of health care and labor law as the Dealer Managers shall reasonably request, such opinions to be in a form and substance reasonably satisfactory to the Dealer Managers. 
  

 -6- 

	 	7.	Indemnity and Survival of Certain Provisions 

  

	 	(a)	 The Issuers, jointly and severally, agree (i) to indemnify and hold each of the Dealer Managers harmless against any and all losses, damages, liabilities or
claims (or actions in respect thereof) (A) that arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Offer Material or any Additional Material or any of the documents referred to
therein or in any amendment or supplement to any of the foregoing, or that arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, except, in the case of this clause (A), solely with respect to information relating to Dealer Manager Information (as defined below), (B) that arise out of or are based
upon any breach by any of the Issuers of any representation or warranty or failure by any of the Issuers to comply with any obligation set forth herein or (C) that arise out of or are based upon a withdrawal, rescission, termination or
modification of or a failure to make or consummate the Tender Offers; and (ii) to indemnify and hold each of the Dealer Managers harmless against any and all other losses, damages, liabilities or claims (or actions in respect thereof) that
otherwise arise out of or are based upon or asserted against any Dealer Manager by any person, including stockholders of any of the Issuers, in connection with or as a result of your acting as Dealer Managers or rendering financial advisory services
in connection with the Tender Offers or that arise in connection with any other matter referred to in this agreement, except (A) to the extent such other matter is a related financing and there is a purchase agreement or other similar
agreement, then the indemnification provisions in such purchase agreement or similar agreement shall govern and (B) to the extent that any such losses, damages, liabilities or claims referred to in this clause (ii) result from the gross
negligence, willful misconduct or bad faith of such Dealer Manager in performing the services that are the subject of this agreement. As used herein, the term “Dealer Manager Information” means the written information furnished to the
Issuers by the Dealer Managers expressly for use in the Offer Material or Additional Material, which in this case, shall be solely the name and address of each Dealer Manager as provided on the back cover of the Offer Material or Additional
Material. Subject to Section 7(b), in the event that any Dealer Manager becomes involved in any capacity in any action, proceeding or investigation brought by or against any person, including stockholders of any of the Issuers, in connection
with any matter referred to in this agreement, each of the Issuers also, jointly and severally, agrees periodically to reimburse the Dealer Managers for their legal and other expenses (including the cost of 

  

 -7- 

	 	 
any investigation and preparation) incurred in connection therewith. The Issuers also agree that neither the Dealer Managers nor any of their respective
affiliates, nor any partners, directors, officers, agents, employees or controlling persons (if any), as the case may be, of the Dealer Managers or any such affiliates, shall have any liability to the Issuers or any person asserting claims on behalf
of or in right of the Issuers for or in connection with any matter referred to in this agreement except (A) to the extent such other matter is a related financing and there is a purchase agreement or other similar agreement, then the
indemnification provisions in such purchase agreement or similar agreement shall govern and (B) to the extent that any loss, damage, expense, liability or claim incurred by the Issuers results from the gross negligence, willful misconduct or
bad faith of such Dealer Manager in performing the services that are the subject of this agreement. 

  

	 	(b)	 Promptly after receipt by the Dealer Managers of notice of their involvement in any action, proceeding or investigation, the Dealer Managers shall, if a claim in
respect thereof is to be made against the Issuers under subsection (a) of this Section 7, notify the Issuers in writing of such involvement, but the failure to so notify the Issuers shall not relieve them from any liability which they may
otherwise have to the Dealer Managers under subsection (a) of this Section 7 except to the extent that the Issuers suffer actual prejudice as a result of such failure, and in no event shall such failure relieve the Issuers from any
obligation to provide reimbursement and contribution to the Dealer Managers. If the Dealer Managers are entitled to indemnification under this Section 7 with respect to any action or proceeding brought by a third party that is also brought
against the Issuers, the Issuers shall be entitled to assume the defense of any such action or proceeding with counsel reasonably satisfactory to the Dealer Managers. Upon assumption by the Issuers of the defense of any such action or proceeding,
the Dealer Managers shall have the right to participate in such action or proceeding and to retain its own counsel but the Issuers shall not be liable for any legal fees and expenses of other counsel subsequently incurred by the Dealer Managers in
connection with the defense thereof unless (i) the Issuers have agreed to pay such fees and expenses, (ii) the Issuers shall have failed to employ counsel reasonably satisfactory to the Dealer Managers in a timely manner, or (iii) the
Dealer Managers shall have been advised by counsel that there are actual or potential conflicting interests between the Issuers and the Dealer Managers, including situations in which there are one or more legal defenses available to the Dealer
Managers that are inconsistent with or additional to those available to the Issuers, provided, however, that the Issuers shall not, in connection with any one such action or proceeding or separate but substantially similar actions or
proceedings arising out of the same general allegations, be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Dealer Managers except to the extent that local counsel, in 

  

 -8- 

	 	 
addition to regular counsel, is required in order to effectively defend against such action or proceeding. The Issuers shall not consent to the terms of any
compromise or settlement of any action defended by the Issuers in accordance with the foregoing without the prior written consent of the Dealer Managers unless such compromise or settlement (i) includes an unconditional release of the Dealer
Managers from all liability arising out of such action and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of the Dealer Managers. The Issuers shall not be required to indemnify
the Dealer Managers under this Section 7 for any amount paid or payable by the Dealer Managers in connection with the settlement of any action, proceeding or investigation without the written consent of the Issuers, which consent shall not be
unreasonably withheld. 

  

	 	(c)	If for any reason the indemnification provided for in subsection (a) of this Section 7 is unavailable or insufficient to hold you harmless, then the Issuers shall
contribute to the amount paid or payable by you as a result of such loss, damage, expense, liability or claim (or action in respect thereof) referred to therein in such proportion as is appropriate to reflect the relative benefits of the Issuers and
their stockholders on the one hand and you on the other hand in the matters contemplated by this agreement as well as the relative fault of the Issuers and you with respect to such loss, damage, expense, liability or claim (or action in respect
thereof) and any other relevant equitable considerations. The relative benefits of the Issuers and their stockholders on the one hand and you on the other hand in the matters contemplated by this agreement shall be deemed to be in the same
proportion as the maximum aggregate value of the consideration proposed to be paid by the Issuers to acquire Securities pursuant to the Tender Offer bears to the maximum aggregate fee proposed to be paid to you pursuant to Section 4(a) of this
agreement as a result of such acquisition of Securities. The relative fault of the Issuers and you shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by, or relating to, the Issuers and their affiliates or you and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Issuers and you agree that it would not be just and equitable if contribution pursuant to this subsection (c) were determined by pro rata allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in this subsection (c). 

  

	 	(d)	The agreements contained in Section 4 and in this Section 7 and the representations and warranties of the Issuers set forth in Section 5 hereof shall survive any
termination or cancellation of this agreement, any completion of the engagement provided by this agreement, any investigation made by or on behalf of you, any of your officers or partners or any person controlling you, any termination or expiration
of the Tender Offer and any acquisition of Securities, whether pursuant to the Tender Offer or otherwise. 

  

 -9- 

	 	(e)	The reimbursement, indemnity and contribution obligations of the Issuers under this Section 7 shall be in addition to any liability that the Issuers may otherwise have, shall
extend upon the same terms and conditions to your affiliates and the partners, directors, officers, agents, employees and controlling persons (if any), as the case may be, of you and any such affiliate, and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the Issuers, you, any such affiliate and any such other person referred to above. 

  

	 	8.	Miscellaneous 

  

	 	(a)	This agreement is made solely for the benefit of you, the Issuers and any partner, director, officer, agent, employee, controlling person or affiliate referred to in Section 7
hereof, and their respective successors, assigns, and legal representatives, and no other person shall acquire or have any right under or by virtue of this agreement. 

  

	 	(b)	In the event that any provision hereof shall be determined to be invalid or unenforceable in any respect, such determination shall not affect such provision in any other respect or
any other provision hereof, which shall remain in full force and effect. 

  

	 	(c)	Except as otherwise expressly provided in this agreement, whenever notice is required by the provisions of this agreement to be given to (i) the Issuers, such notice shall be
in writing addressed to the Issuers at 440 Ninth Avenue, New York, New York 10001, facsimile number (212) 594-0832, Attention: Phillip A. Bradley, Esq., General Counsel, with a copy to Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285
Avenue of the Americas, New York, New York 10019, facsimile number (212) 492-0052, Attention: Lawrence G. Wee, Esq.; and (ii) you, such notice shall be in writing addressed to you, at 85 Broad Street, New York, New York 10004,
facsimile number (212) 902-3000, Attention: Registration Department. 

  

	 	(d)	This agreement contains the entire understanding of the parties with respect to your acting as Dealer Managers for the Tender Offer, superseding any prior agreements with respect
thereto and may not be modified or amended except in writing executed by the parties hereto. This agreement may be executed in any number of separate counterparts, each of which shall be an original, but all such counterparts shall together
constitute one and the same agreement. 

  

	 	(e)	 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW 

  

 -10- 

	 	 
YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS THAT WOULD INDICATE THE APPLICABILITY OF THE LAWS OF ANY OTHER JURISDICTION. Any right to trial by jury
with respect to any action or proceeding arising in connection with or as a result of either your engagement or any matter referred to in this agreement is hereby waived by the parties hereto. The Issuers agree that any suit or proceeding arising in
respect of this agreement or our engagement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in The City of
New York, Borough of Manhattan and each of the Issuers agrees to submit to the jurisdiction of, and to venue in, such courts. 

  

	 	(f)	The Dealer Managers do not provide accounting, tax or legal advice. The Issuers are authorized, subject to applicable law, to disclose any and all aspects of this potential
transaction that are necessary to support any U.S. federal income tax benefits expected to be claimed with respect to such transaction, without the Dealer Managers imposing any limitation of any kind. 

 [Remainder of page intentionally left blank] 
  

 -11- 

 Please sign and return to us a duplicate of this letter, whereupon it will become a binding agreement.

  

					
	Very truly yours,
	
	DUANE READE INC.
		
	By:	 	/s/ JOHN HENRY
		 	Name:	 	John K. Henry
		 	Title:	 	Senior Vice President and Chief Financial Officer

  

					
	DUANE READE
	
	By: Duane Reade Inc., its general partner
		
	By:	 	/s/ JOHN HENRY
		 	Name:	 	John K. Henry
		 	Title:	 	Senior Vice President and Chief Financial Officer

  

	
	The undersigned hereby confirms that the foregoing letter, as of the date thereof, correctly sets forth the agreement between the Issuers and the undersigned.
	
	GOLDMAN, SACHS & CO.
	
	/s/ GOLDMAN, SACHS & CO.
	(Goldman, Sachs & Co.)

  

					
	BANC OF AMERICA SECURITIES LLC
		
	By:	 	/s/ SHELLI A. MERRITT
		 	Name:	 	Shelli Merritt
		 	Title:	 	Managing Director

 Annex I 
 The Issuers shall pay the Dealer Managers a fee equal to 0.50% of the aggregate principal amount of the Senior Subordinated Notes purchased by the Issuers in the Senior Subordinated Tender Offer. No separate fee shall be payable to the
Dealer Managers in connection with the amount of Floating Rate Notes purchased by the Issuers in the FRN Tender Offer. 
 The Dealer Managers will be
entitled to their full fees described in this Annex I if at any time prior to three months after the termination by the Issuers of this Agreement, the Issuers (or any of the Issuers’ affiliates) consummates an offer, offers or consent
solicitation with respect to the Securities in a form similar to the Tender Offers in a transaction or series of transactions in which GS and BAS did not act as dealer managers or solicitation agents for the Issuers or the Issuers’ affiliates,
as applicable. 

 Exhibit A 
 [Opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP] 
 212-373-3000 
 212-757-3990 
 July [    ], 2009

 Goldman, Sachs & Co. 
 Banc of America Securities LLC

 c/o Goldman, Sachs & Co. 
 85 Broad Street 

New York, New York 10004 
 Duane Reade Inc. and Duane
Reade 
 Ladies and Gentlemen: 
 We have
acted as counsel to Duane Reade Inc., a Delaware corporation (the “Company”), and Duane Reade, a New York general partnership and a subsidiary of the Company (“Duane Reade” and, together with the Company, the
“Issuers”), in connection with the Dealer Managers Agreement (the “Dealer Managers Agreement”), dated as of July [    ], 2009, among Goldman, Sachs & Co. and Banc of America Securities LLC (the
“Dealer Managers”) and the Issuers, relating to the tender offers for cash for (a) any and all of the Issuers’ 

 
outstanding Senior Secured Floating Rate Notes due 2010 (the “Floating Rate Notes”) and the related consent solicitation (such tender offer and
consent solicitation is referred to as the “FRN Tender Offer”) and (b) any and all of the Issuers’ outstanding Senior Subordinated Notes due 2011 (the “Senior Subordinated Notes” and, together with the FRN Notes, the
“Securities”) and the related consent solicitation (such tender offer and consent solicitation is referred to as the “Senior Subordinated Notes Tender Offer” and, together with the FRN Tender Offer, the “Tender
Offers”). The Tender Offers are being launched by the Issuers on July [    ], 2009 upon the terms and subject to the conditions set forth in the Offer to Purchase and Solicitation of Consents dated July
[    ], 2009 (the “Offer to Purchase”), the form of letter of transmittal and the press release dated July [ ], 2009 relating to the Tender Offers (collectively with the Offer to Purchase, the “Offer
Materials”). This opinion is being furnished to you at the request of the Issuers as contemplated by Section 6(c) of the Dealer Managers Agreement. Capitalized terms used and not otherwise defined in this opinion shall have the respective
meanings given those terms in the Dealer Managers Agreement. 
 In connection with this opinion, we have examined originals, or copies
certified or otherwise identified to our satisfaction, of the following documents: 
 1. the Offer Materials; 
 2. the Dealer Managers Agreement; 
 3. the
Indenture, dated as of December 20, 2004 (the “FRN Indenture”), by and among the Issuers, the guarantors party thereto (“FRN Guarantors”) and U.S. Bank National Association, as trustee (the “Trustee”); and

 4. the Indenture, dated as of July 30, 2004 (and as supplemented on July 30, 2004) (the “Subordinated Notes Indenture”
and, together with the FRN Indenture, the “Indentures”), by and among the Issuers, the guarantors party thereto (“Subordinated Notes Guarantors”) and the Trustee. 
  

 -2- 

 In addition, we have examined: (i) such corporate records of the Company and such partnership
records of Duane Reade we have considered appropriate, including the certificate of incorporation, as amended, and by-laws of the Company, as amended, and the partnership agreement, as amended, of Duane Reade, certified by the Company or Duane
Reade, as applicable, as in effect on the date of this opinion (collectively, the “Charter Documents”) and copies of resolutions of the board of directors of the Company and copies of the resolutions of the general partners of Duane Reade
in each case relating to the Tender Offers and Supplemental Indentures (as defined in the Offer Materials), certified by the Company or Duane Reade, as applicable; and (ii) such other certificates, agreements and documents as we deemed relevant
and necessary as a basis for the opinions and beliefs expressed below. We have also relied upon oral and written statements of officers and representatives of the Issuers, the factual matters contained in the representations and warranties of the
Issuers and the Dealer Managers made in the Dealer Managers Agreement and upon certificates of public officials and officers of the Issuers. 
 In rendering the opinion set forth below, we have assumed, without independent investigation, (i) the enforceability of the Dealer Managers Agreement against the Dealer Managers, (ii) that when executed and delivered, the
Supplemental Indentures will be on substantially the terms and conditions described in the Offer Materials, (iii) the Issuers and the Dealer Managers will conduct the Tender Offers in the manner described in the Offer Materials and the Dealer
Managers Agreement, (iv) the Indentures will be amended to effect the Proposed Amendments and the Proposed Amendments will become operative as set forth in the Offer Materials concurrently with the consummation of the Tender Offers,
(v) all validly tendered Securities will be 

  

 -3- 

 
accepted for purchase pursuant to the Tender Offers concurrently with the consummation of the Tender Offers, (vi) the genuineness of all signatures,
(vii) the authenticity of all documents submitted to us as originals, (viii) the conformity to originals of all documents submitted to us as certified, photostatic, reproduced or conformed copies of valid and existing agreements or other
documents, (ix) the authenticity of all the latter documents, (x) the legal capacity of all individuals who have executed any of the documents reviewed by us, and (xi) that the statements regarding matters of fact in the certificates,
records, agreements, instruments and documents that we have examined are accurate and complete. 
 Whenever we indicate that our opinion is
based upon our knowledge or words of similar import, our opinion is based solely on the actual knowledge of the attorneys in this firm who are representing the Issuers in connection with the Dealer Managers Agreement and without any independent
verification. 
 Based upon the above, and subject to the stated assumptions, exceptions and qualifications set forth in this letter, we are
of the opinion that: 
 1. The Company has been duly incorporated and is validly existing and in good standing under the laws of the State of
Delaware. Duane Reade is a general partnership in good standing under the laws of the State of New York. 
 2. The Company has all
necessary corporate, and Duane Reade has all necessary general partnership, power and authority to execute, deliver and perform their respective obligations under the Dealer Managers Agreement. 
 3. The Dealer Managers Agreement has been duly authorized, executed and delivered by the Issuers. 
  

 -4- 

 4. The making (but not the consummation) of the Tender Offers and the execution,
delivery or performance by the Issuers of the Dealer Managers Agreement do not and will not (i) result in a violation of the Charter Documents, (ii) breach or result in a default under any agreement, indenture or instrument to which either
of the Issuers is a party or is bound or to which any of the properties or assets of the Issuers is subject, each as in effect after the completion of the Tender Offers, that is filed as an exhibit to Duane Reade Holdings, Inc. Annual Report on Form
10-K for the year ended December 27, 2008, filed on March 25, 2009 (“Form 10-K”), or (iii) violate Applicable Law or any judgment, order or decree of any court or arbitrator known to us, except, in the case of clauses
(ii) or (iii) above where the breach, default or violation would not reasonably be expected to have a material adverse effect on the Issuers and their subsidiaries, taken as a whole. For purposes of this opinion, the term “Applicable
Law” means the General Corporation Law of the State of Delaware (the “GCL”) and those laws, rules and regulations of the United States of America and the State of New York, in each case which in our experience are normally
applicable to the transactions of the type contemplated by the Dealer Managers Agreement (including, without limitation, Rule 14e-1 under the Securities Exchange Act of 1934, as amended), except that “Applicable Law” does not include
(i) the anti-fraud provisions of the securities laws of any applicable jurisdiction, (ii) any state securities or Blue Sky laws of the various states or (iii) any Healthcare Laws or Labor Laws, as to which we express no opinion. For
purposes of this opinion, the term “Healthcare Laws” means the laws, rules, regulations and policies described in the statements incorporated by reference in the Offer to Purchase from Item 1 of the Form 10-K under the caption
“Government Regulation,” and the term “Labor Laws” means the laws, rules, regulations and policies relating to labor employment matters 

  

 -5- 

 
described in the statements incorporated by reference in the Offer to Purchase from Item 3 of the Form 10-K under the caption “Legal
Proceedings.” 
 5. No consent, approval, authorization, or order of, or filing, registration or qualification with any Governmental
Authority, which has not been obtained, taken or made is required by the Issuers under Applicable Law in connection with the making of the Tender Offers and the execution, delivery or performance of the Dealer Managers Agreement by the Issuers
except where the failure to obtain or make such consent, approval, authorization, order, registration, qualification or filing would not reasonably be expected to adversely affect the ability of the Issuers to commence and perform their respective
obligations under the Tender Offers and to execute, deliver and perform the Dealer Managers Agreement. For purposes of this opinion, the term “Governmental Authority” means any executive, legislative, judicial, administrative or regulatory
body of the State of New York, the State of Delaware or the United States of America. 
 *   *   * 
 The opinions expressed above are limited to the laws of the State of New York, the GCL and the federal laws of the United States of America (in each
case, other than Healthcare Laws or Labor Laws). Our opinions are rendered only with respect to the laws, and the rules, regulations and orders under those laws, that are currently in effect. Please be advised that no member of this firm is admitted
to practice in the State of Delaware. 
 This opinion is furnished by us solely for your benefit in connection with the transactions referred
to in the Dealer Managers Agreement and may not be circulated to, or relied upon by, any other person or entity. 
 Very
truly yours, 
 PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 
  

 -6- 

 Exhibit B 
 [Opinion letter of Paul, Weiss, Rifkind, Wharton & Garrison LLP] 
 212-373-3000 
 212-757-3990 
 August [    ], 2009

 Goldman, Sachs & Co. 
 Banc of America Securities LLC

 c/o Goldman, Sachs & Co. 
 85 Broad Street 

New York, New York 10004 
 Duane Reade Inc. and Duane
Reade 
 Ladies and Gentlemen: 
 We have
acted as counsel to Duane Reade Inc., a Delaware corporation (the “Company”), and Duane Reade, a New York general partnership and a subsidiary of the Company (“Duane Reade” and, together with the Company, the
“Issuers”), in connection with the Dealer Managers Agreement (the “Dealer Managers Agreement”), dated as of July [    ], 2009, among Goldman, Sachs & Co. and Banc of America Securities LLC (the
“Dealer Managers”) and the Issuers, relating to the tender offers for cash for (a) any and all of the Issuers’ outstanding Senior Secured Floating Rate Notes due 2010 (the “Floating Rate Notes”) and the related consent
solicitation (such tender offer and consent solicitation is referred to as the “FRN 

 
Tender Offer”) and (b) any and all of the Issuers’ outstanding Senior Subordinated Notes due 2011 (the “Senior Subordinated Notes”
and, together with the FRN Notes, the “Securities”) and the related consent solicitation (such tender offer and consent solicitation is referred to as the “Senior Subordinated Notes Tender Offer” and, together with the FRN Tender
Offer, the “Tender Offers”). The Tender Offers were launched by the Issuers on July [    ], 2009 upon the terms and subject to the conditions set forth in the Offer to Purchase and Solicitation of Consents dated July
[    ], 2009 (the “Offer to Purchase”), the Letter of Transmittal and the press release dated July [    ], 2009 relating to the Tender Offers (collectively with the Offer to Purchase, the “Offer
Materials”). This opinion is being furnished to you at the request of the Issuers as contemplated by Section 6(c) of the Dealer Managers Agreement. Capitalized terms used and not otherwise defined in this opinion shall have the respective
meanings given those terms in the Dealer Managers Agreement. 
 In connection with this opinion, we have examined originals, or copies
certified or otherwise identified to our satisfaction, of the following documents: 
 1. the Offer Materials; 
 2. the Dealer Managers Agreement; 
 3. the
Indenture, dated as of December 20, 2004 (the “FRN Indenture”), by and among the Issuers, the guarantors party thereto (“FRN Guarantors”) and U.S. Bank National Association, as trustee (the “Trustee”);

 4. the Supplemental Indenture, dated as of July [ ], 2009, by and among the Issuers, the FRN Guarantors and the Trustee relating to the
Floating Rate Notes (the “FRN Supplemental Indenture”); 
  

 -2- 

 5. the Indenture, dated as of July 30, 2004 (and as supplemented on July 30, 2004) (the
“Subordinated Notes Indenture” and, together with the FRN Indenture, the “Indentures”), by and among the Issuers, the guarantors party thereto (“Subordinated Notes Guarantors”) and the Trustee; 
 6. the Supplemental Indenture, dated as of July [    ], 2009, by and among the Issuers, the Subordinated Notes Guarantors and the
Trustee relating to the Senior Subordinated Notes (the “Subordinated Notes Supplemental Indenture” and, together with the FRN Supplemental Indenture, the “Supplemental Indentures”); 
 7. the certificate of Global Bondholder Corporation, as depository, dated July [    ], 2009, setting forth the results of the
consent solicitation relating to the Floating Rate Notes; and 
 8. the certificate of Global Bondholder Corporation, as depository, dated
July [    ], 2009, setting forth the results of the consent solicitation relating to the Senior Subordinated Notes. 
 In
addition, we have examined: (i) such corporate records of the Company and such partnership records of Duane Reade we have considered appropriate, including the certificate of incorporation, as amended, and by-laws of the Company, as amended,
and the partnership agreement, as amended, of Duane Reade certified by the Company or Duane Reade, as applicable, as in effect on the date of this opinion (collectively, the “Charter Documents”) and copies of resolutions of the board of
directors of the Company and copies of the resolutions of the general partners of Duane Reade in each case relating to the Tender Offers and Supplemental Indentures, certified by the Company or Duane Reade, as applicable; and (ii) such other
certificates, agreements and documents as we deemed relevant and necessary as a basis for the opinions and 

  

 -3- 

 
beliefs expressed below. We have also relied upon oral and written statements of officers and representatives of the Issuers, the factual matters contained
in the representations and warranties of the Issuers and the Dealer Managers made in the Dealer Managers Agreement and upon certificates of public officials and officers of the Issuers. 
 In rendering the opinion set forth below, we have assumed, without independent investigation, (i) the enforceability of the Dealer Managers
Agreement against the Dealer Managers, (ii) the due authorization and execution of the Supplemental Indentures by the Trustee, (iii) that the Supplemental Indentures represent valid and legally binding obligations of the Trustee,
(iv) the Issuers and the Dealer Managers have conducted the Tender Offers in the manner described in the Offer Materials and the Dealer Managers Agreement, (v) the Requisite Consents (as defined in the Offer Materials) required to be
obtained to effect the Proposed Amendments (as defined in the Offer Materials) have been duly authorized and validly received and not withdrawn prior to the applicable Consent Payment Deadline (as defined in the Offer Materials), (vi) the
Indentures have been amended to effect the Proposed Amendments and the Proposed Amendments have become operative as set forth in the Offer Materials concurrently with the consummation of the Tender Offers, (vii) all validly tendered Securities
have been accepted for purchase pursuant to the Tender Offers concurrently with the consummation of the Tender Offers, (viii) the genuineness of all signatures, (ix) the authenticity of all documents submitted to us as originals,
(x) the conformity to originals of all documents submitted to us as certified, photostatic, reproduced or conformed copies of valid and existing agreements or other documents, (xi) the authenticity of all the latter documents,
(xii) the legal capacity of all individuals who have executed any of the documents reviewed by us, and (xiii) that the statements regarding matters of fact in the certificates, records, agreements, instruments and documents that we have
examined are accurate and complete. 
  

 -4- 

 Whenever we indicate that our opinion is based upon our knowledge or words of similar import, our opinion
is based solely on the actual knowledge of the attorneys in this firm who are representing the Issuers in connection with the Dealer Managers Agreement or who are otherwise responsible for the representation of the Issuers and without any
independent verification. 
 Based upon the above, and subject to the stated assumptions, exceptions and qualifications set forth in this
letter, we are of the opinion that: 
 6. The Company has been duly incorporated and is validly existing and in good standing under the laws
of the State of Delaware. Duane Reade is a general partnership in good standing under the laws of the State of New York. 
 7. The
Company has all necessary corporate, and Duane Reade has all necessary general partnership, power and authority to execute, deliver and perform their respective obligations under the Dealer Managers Agreement and the Supplemental Indentures.

 8. The Dealer Managers Agreement has been duly authorized, executed and delivered by the Issuers. 
 9. The consummation of the Tender Offers, the execution and delivery of the Supplemental Indentures by the Issuers and the performance of the Indentures
by the Issuers as supplemented thereby do not and will not (i) result in a violation of the Charter Documents, (ii) breach or result in a default under any agreement, indenture or instrument to which either of the Issuers is a party or is
bound or to which any of the properties or assets of the Issuers is subject, each as in effect after the completion of the Tender Offers, that is filed as an exhibit to Duane Reade 

  

 -5- 

 
Holdings, Inc. Annual Report on Form 10-K for the year ended December 27, 2008, filed on March 25, 2009 (“Form 10-K”), or
(iii) violate Applicable Law or any judgment, order or decree of any court or arbitrator known to us, except, in the case of clauses (ii) or (iii) above where the breach, default or violation would not reasonably be expected to have a
material adverse effect on the Issuers and their subsidiaries, taken as a whole. For purposes of this opinion, the term “Applicable Law” means the General Corporation Law of the State of Delaware (the “GCL”) and those laws, rules
and regulations of the United States of America and the State of New York, in each case which in our experience are normally applicable to the transactions of the type contemplated by the Dealer Managers Agreement (including, without
limitation, Rule 14e-1 under the Securities Exchange Act of 1934, as amended), except that “Applicable Law” does not include (i) the anti-fraud provisions of the securities laws of any applicable jurisdiction, (ii) any state
securities or Blue Sky laws of the various states or (iii) any Healthcare Laws or Labor Laws, as to which we express no opinion. For purposes of this opinion, the term “Healthcare Laws” means the laws, rules, regulations and policies
described in the statements incorporated by reference in the Offer to Purchase from Item 1 of the Form 10-K under the caption “Government Regulation,” and the term “Labor Laws” means the laws, rules, regulations and policies
relating to labor employment matters described in the statements incorporated by reference in the Offer to Purchase from Item 3 of the Form 10-K under the caption “Legal Proceedings.” 
 10. No consent, approval, authorization, or order of, or filing, registration or qualification with any Governmental Authority, which has not been
obtained, taken or made is required by the Issuers under Applicable Law in connection with the consummation of the Tender Offers, the execution and delivery of the Supplemental Indentures by the Issuers and the performance of the Indentures as
supplemented thereby except where the failure to obtain or make such consent, 

  

 -6- 

 
approval, authorization, order, registration, qualification or filing would not reasonably be expected to adversely affect the ability of the Issuers to
commence and perform their obligations under the Tender Offers, to execute and deliver the Supplemental Indentures and perform the Indentures as supplemented thereby and the ability of the Issuers to execute, deliver and perform the Dealer Managers
Agreement. For purposes of this opinion, the term “Governmental Authority” means any executive, legislative, judicial, administrative or regulatory body of the State of New York, the State of Delaware or the United States of America.

 11. The Supplemental Indentures have been duly authorized, executed and delivered by the Issuers and constitute the valid and legally
binding obligations of the Issuers, enforceable against them in accordance with their terms, except that enforceability may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws
affecting creditors’ rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law). 
 *   *   * 
 The opinions expressed above are limited to the laws of
the State of New York, the GCL and the federal laws of the United States of America (in each case, other than Healthcare Laws or Labor Laws). Our opinions are rendered only with respect to the laws, and the rules, regulations and orders under
those laws, that are currently in effect. Please be advised that no member of this firm is admitted to practice in the State of Delaware. 
 This opinion is furnished by us solely for your benefit in connection with the transactions referred to in the Dealer Managers Agreement and may not be circulated to, or relied upon by, any other person or entity. 
 Very truly yours, 
 PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 
  

 -7- 

 [Disclosure letter of Paul, Weiss, Rifkind, Wharton & Garrison LLP] 
 212-373-3000 
 212-757-3990 
 August [    ], 2009 
 Goldman,
Sachs & Co. 
 Banc of America Securities LLC 
 c/o
Goldman, Sachs & Co. 
 85 Broad Street 
 New York, New
York 10004 
 Ladies and Gentlemen: 
 We have
acted as counsel to Duane Reade Inc., a Delaware corporation (the “Company”), and Duane Reade, a New York general partnership and a subsidiary of the Company (“Duane Reade” and, together with the Company, the
“Issuers”), in connection with the Dealer Managers Agreement (the “Dealer Managers Agreement”), dated as of July [__], 2009, among Goldman, Sachs & Co. and Banc of America Securities LLC (the “Dealer Managers”)
and the Issuers, relating to (a) the tender offer for cash for any and all of the Issuers’ outstanding Senior Secured Floating Rate Notes due 2010 (the “Floating Rate Notes”) and the related consent solicitation (such tender
offer and consent solicitation is referred to as the “FRN Tender Offer”) and (b) the tender offer for any and all of the Issuers’ outstanding Senior Subordinated Notes due 

 
2011 (the “Senior Subordinated Notes” and, together with the Floating Rate Notes, the “Securities”) and the related consent solicitation
(such tender offer and consent solicitation is referred to as the “Senior Subordinated Tender Offer” and, together with the FRN Tender Offer, the “Tender Offers”). The Tender Offers were launched by the Issuers on July
[    ], 2009 upon the terms and subject to the conditions set forth in the Offer to Purchase and Solicitation of Consents dated July [__], 2009 (the “Offer to Purchase”), the Letter of Transmittal and the press release
dated July [    ], 2009 relating to the Tender Offers (collectively with the Offer to Purchase, the “Offer Materials”). This letter is being furnished to you at the request of the Issuers as provided by
Section 6(c) of the Dealer Managers Agreement and in connection with the delivery of our opinion to you of even date herewith (the “Opinion”) under the Dealer Managers Agreement. Capitalized terms used and not otherwise defined in
this letter have the respective meanings given those terms in the Dealer Managers Agreement. 
 The primary purpose of our professional
engagement was not to establish factual matters or financial, accounting or statistical information. In addition, many determinations involved in the preparation of the Offer Materials and the documents incorporated by reference therein are of a
wholly or partially non-legal character or relate to legal matters outside the scope of the Opinion. Furthermore, the limitations inherent in the independent verification of factual matters and in the role of outside counsel are such that we have
not undertaken to independently verify, and cannot and do not assume responsibility for the accuracy, completeness or fairness of, the statements contained in the Offer Materials or the documents incorporated by reference therein. 
 In the course of acting as counsel to the Issuers in connection with the Tender Offers, we have participated in conferences and telephone conversations
with officers and other 

  

 -2- 

 
representatives of the Issuers during which conferences and conversations the contents of the Offer Materials and related matters were discussed. Based upon
such participation (and relying as to factual matters on officers, employees and other representatives of the Issuers and their subsidiaries, our understanding of the U.S. federal securities laws and the experience we have gained in our practice
thereunder, we hereby advise you that our work in connection with this matter did not disclose any information that gave us reason to believe that as of the date hereof, the Offer Materials (except for the financial statements, financial statement
schedules and other financial data included or incorporated by reference therein or omitted therefrom or from those documents incorporated by reference, in each case, as to which we express no such belief), included an untrue statement of a material
fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, we express no views regarding any statements
made in the Offer Materials or those documents incorporated by reference therein insofar as they relate to the Healthcare Laws or Labor Laws. For the purposes of this letter, the terms “Healthcare Laws” and “Labor Laws” have the
respective meanings assigned to them in the Opinion. 
 This letter is furnished by us solely for your benefit in connection with the
transactions referred to in the Dealer Managers Agreement and may not be circulated to, or relied upon by, any other person without our prior written consent. 
 Very truly yours, 
 PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 
  

 -3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}]]