Document:

Security Agreement

 Exhibit 4.4 
 EXECUTION COPY 
  
  
  
 SECURITY AGREEMENT 
 dated as of August 7, 2009 
 among 
 THE LOAN PARTIES FROM TIME TO TIME PARTY HERETO 
 and 
 U.S. BANK NATIONAL ASSOCIATION, 
 as Collateral Agent 
  
  
  

 TABLE OF CONTENTS* 
  

					
	 	  	 	  	Page
	 ARTICLE I DEFINITIONS
	  	4
	 Section 1.01
	  	Defined Terms	  	4
	 Section 1.02
	  	Terms Defined in the UCC	  	4
	 Section 1.03
	  	Additional Definitions	  	4
	 Section 1.04
	  	Terms Generally	  	18
		
	 ARTICLE II SECURITY INTERESTS
	  	18
	 Section 2.01
	  	Grant of Security Interests	  	18
	 Section 2.02
	  	Continuing Liability of Each Loan Party	  	20
	 Section 2.03
	  	Security Interests Absolute	  	20
	 Section 2.04
	  	Segregation of Proceeds; Cash Proceeds Account	  	22
	 Section 2.05
	  	Reinvestment Funds Account	  	23
	 Section 2.06
	  	Prepayment Account	  	25
	 Section 2.07
	  	Investment of Funds in Collateral Accounts	  	26
	 Section 2.08
	  	Collateral Agent Not Responsible	  	26
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES
	  	26
	 Section 3.01
	  	Title to Collateral	  	26
	 Section 3.02
	  	Validity, Perfection and Priority of Security Interests	  	27
	 Section 3.03
	  	Fair Labor Standards Act	  	27
	 Section 3.04
	  	No Consents	  	27
	 Section 3.05
	  	Deposit and Securities Accounts	  	28
	 Section 3.06
	  	Insurance	  	28
		
	 ARTICLE IV COVENANTS
	  	28
	 Section 4.01
	  	Delivery of Perfection Certificate; Initial Perfection and Delivery of Search Reports	  	28
	 Section 4.02
	  	Change of Name, Identity, Structure or Location; Subjection to Other Security Agreements	  	29
	 Section 4.03
	  	Further Actions	  	29
	 Section 4.04
	  	Collateral in Possession of Other Persons, Leased Real Property Locations	  	30
	 Section 4.05
	  	Books and Records	  	30
	 Section 4.06
	  	Delivery of Instruments, Etc.	  	30
	 Section 4.07
	  	Notification to Account Debtors	  	31
	 Section 4.08
	  	Certificates of Title	  	31
	 Section 4.09
	  	Disposition of Collateral	  	31
	 Section 4.10
	  	Insurance	  	31
	 Section 4.11
	  	Information Regarding Collateral	  	32
	 Section 4.12
	  	Covenants Regarding Intellectual Property	  	32
	 Section 4.13
	  	Deposit Accounts and Securities Accounts	  	34
	 Section 4.14
	  	Electronic Chattel Paper	  	34

  

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	 Section 4.15
	  	Claims	  	35
	 Section 4.16
	  	After-Acquired Property	  	35
		
	 ARTICLE V GENERAL AUTHORITY; REMEDIES
	  	35
	 Section 5.01
	  	General Authority	  	35
	 Section 5.02
	  	Remedies upon Event of Default	  	36
	 Section 5.03
	  	Limitation on Duty of Collateral Agent in Respect of Collateral	  	40
	 Section 5.04
	  	Application of Proceeds	  	40
		
	 ARTICLE VI COLLATERAL AGENT
	  	41
	 Section 6.01
	  	[Reserved]	  	41
	 Section 6.02
	  	Concerning the Collateral Agent	  	41
	 Section 6.03
	  	Appointment of Co-Collateral Agent	  	41
		
	 ARTICLE VII MISCELLANEOUS
	  	42
	 Section 7.01
	  	Notices	  	42
	 Section 7.02
	  	No Waivers; Non-Exclusive Remedies	  	42
	 Section 7.03
	  	Compensation and Expenses of the Collateral Agent; Indemnification	  	43
	 Section 7.04
	  	Enforcement	  	45
	 Section 7.05
	  	Amendments and Waivers	  	45
	 Section 7.06
	  	Successors and Assigns	  	45
	 Section 7.07
	  	Governing Law	  	45
	 Section 7.08
	  	Limitation of Law; Severability	  	45
	 Section 7.09
	  	Counterparts; Effectiveness	  	46
	 Section 7.10
	  	Additional Loan Parties	  	46
	 Section 7.11
	  	Termination; Release of Loan Parties	  	47
	 Section 7.12
	  	Entire Agreement	  	48
	 Section 7.13
	  	Existing Senior Secured Notes	  	48
	 Section 7.14
	  	Revolving Credit Collateral Agent	  	49

  

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 Schedules: 
  

					
	 Schedule 1.01A
	  	-  	  	Claims
	 Schedule 1.01B
	  	-  	  	Excluded Deposit Accounts and Restricted Deposit Accounts
	 Schedule 3.04
	  	-  	  	Consents
	 Schedule 3.05
	  	-  	  	Deposit Accounts and Securities Accounts
	 Schedule 4.01
	  	-  	  	Filings to Perfect Security Interests

 Exhibits: 
  

					
	 Exhibit A
	  	-  	  	Form of Notice of Grant of Security Interest in United States Patents and Trademarks
	 Exhibit B
	  	-  	  	Form of Notice of Grant of Security Interest in United States Copyrights
	 Exhibit C-1
	  	-  	  	Form of Blocked Account Service Agreement
	 Exhibit C-2
	  	-  	  	Form of Deposit Account Control Agreement
	 Exhibit D
	  	-  	  	[Reserved]
	 Exhibit E
	  	-  	  	Form of Description of Collateral
	 Exhibit F
	  	-  	  	Form of Perfection Certificate
	 Exhibit G
	  	-  	  	Form of Accession Agreement

  

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 SECURITY AGREEMENT dated as of August 7, 2009 (as amended, modified or supplemented from time
to time, this “Agreement”) among the LOAN PARTIES from time to time party hereto and U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent for the benefit of the Finance Parties referred to herein (together with its successor or
successors in such capacity, the “Collateral Agent”). 
 Duane Reade Inc., a Delaware corporation (“DRI”),
and Duane Reade, a New York general partnership (“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 Duane Reade Holdings, Inc., a Delaware corporation (“Holdings”),
and by DRI I, Inc., a Delaware corporation (“DRI I”), Duane Reade International, LLC (f/k/a Duane Reade International, Inc.), a Delaware limited liability company (“DR International”), and Duane Reade Realty, Inc.,
a Delaware corporation (“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 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 

  

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“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 hereto pursuant to Section 7.10 hereof (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 in the Collateral Agency Agreement referred to 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 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 designated as such by the Secured Debt Designation (as defined in the Collateral Agency Agreement referred to below) and with respect to which a Term Loan Agent (as defined in the
Collateral Agency Agreement referred to below) thereunder has delivered the Joinder (as defined in the Collateral Agency Agreement referred to below). 
 The Indenture requires the Loan Parties to secure their obligations under the Senior Secured Notes together with all Swap Obligations and their obligations under any guaranties thereof, equally and ratably, with
security interests or other liens on the Note/Term Collateral. The Indenture further requires that such security interests in the Note/Term Collateral be granted pursuant to security documents to a collateral agent acting for the benefit of the Swap
Creditors, the holders from time to time of the Senior Secured Notes and any Term Lenders. Consequently, in contemplation of the incurrence of any Term Loans, the Trustee and the Collateral Agent have entered into an Intercreditor and Collateral
Agency Agreement dated as of the date hereof (as amended, 

  

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modified or supplemented from time to time, the “Collateral Agency Agreement”) which, among other things, governs certain actions of the
Trustee, any Term Loan Agent, the Swap Representative and the Collateral Agent in connection with the Senior Secured Notes, any Term Loans, Swap Obligations and the Note/Term Collateral, respectively. 
 Accordingly, the parties hereto hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01 Defined Terms. Terms defined in the introductory section hereof have the respective meanings set forth therein. Capitalized terms
defined in the Collateral Agency Agreement and not otherwise defined herein have, as used herein, the respective meanings provided for therein. 
 Section 1.02 Terms Defined in the UCC. Unless otherwise defined herein or the context otherwise requires, the following terms, together with any uncapitalized terms used herein which are defined in the UCC, have the respective
meanings provided in the UCC: (i) As-Extracted Collateral; (ii) Certificated Security; (iii) Chattel Paper; (iv) Documents; (v) Goods; (vi) Financial Asset; (vii) Instruments; (viii) Inventory;
(ix) Investment Property; (x) Payment Intangibles; (xi) Proceeds; (xii) Securities Account; (xiii) Securities Intermediary; (xiv) Security; (xv) Security Certificate; (xvi) Security Entitlements; and
(xvii) Uncertificated Security. 
 Section 1.03 Additional Definitions. The following additional terms, as used herein, have the
following respective meanings: 
 “Account Control Agreement” means (i) with respect to a Deposit Account, a deposit
account control agreement, substantially in the form of Exhibit C-1 or Exhibit C-2 hereto (or in 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 under the UCC in such Deposit Account and which is reasonably acceptable to the Collateral Agent), among one or more Loan Parties, the Collateral Agent, the bank which maintains such Deposit
Account, and in the case of a deposit account control agreement in the form of Exhibit C-1, the Revolving Credit Administrative Agent, and (ii) with respect to a Securities Account, a securities account control agreement,
substantially in the form of Exhibit B to the Pledge Agreement, among one or more Loan Parties, the Collateral Agent and the Securities Intermediary which maintains such Securities Account, in each case as the same may be amended,
modified or supplemented from time to time. 
 “Accounts” means (i) all “accounts” (as defined in the UCC),
(ii) all of the rights of any Loan Party in, to and under all purchase orders for goods, services or other property, (iii) all of the rights of any Loan Party to any goods, services or other property represented by any of the foregoing
(including returned or repossessed goods and unpaid seller’s rights of rescission, replevin, reclamation and rights to stoppage in transit) and 

  

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(iv) all monies due to or to become due to any Loan Party under any and all contracts for any of the foregoing (in each case, whether or not yet earned
by performance on the part of such Loan Party), including, without limitation, the right to receive the Proceeds of said purchase orders and contracts, all Supporting Obligations of any kind given by any Person with respect to all or any of the
foregoing. 
 “Account Debtor” means an “account debtor” (as defined in the UCC), and also means and includes
Persons obligated to pay negotiable instruments and other Receivables. 
 “Assigned Agreements” means with respect to each
Loan Party those contracts and agreements, if any, of such Loan Party identified in or pursuant to Section VI of such Loan Party’s Perfection Certificate, as the same may be amended, modified or supplemented from time to time, and
all Supporting Obligations of any kind given by any Person with respect to all or any of the foregoing. 
 “Capital Lease
Obligations” of any Person means any obligation of such Person and its Restricted Subsidiaries on a consolidated basis under any capital lease of (or other agreement conveying the right to use) real or personal property which, in accordance
with GAAP, is required to be capitalized on a balance sheet. 
 “Capital Stock” has the meaning given to it in the
Indenture. 
 “Cash Equivalents” means: 
 (i) any evidence of Indebtedness issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof; 
 (ii) deposits, time deposit accounts, certificates of deposit, money market deposits or acceptances of any financial institution having capital and
surplus in excess of $500 million that is a member of the Federal Reserve System and whose senior unsecured debt is rated at least “A-1” by S&P, or at least “P-1” by Moody’s; 
 (iii) commercial paper with a maturity of 365 days or less issued by a corporation (other than an Affiliate or Subsidiary of DRI) organized and existing
under the laws of the United States of America, any state thereof or the District of Columbia and rated at least “A-1” by S&P or at least “P-1” by Moody’s; 
 (iv) repurchase agreements and reverse repurchase agreements relating to marketable direct obligations issued or unconditionally guaranteed by the United
States or issued by any agency thereof and backed by the full faith and credit of the United States maturing within 365 days from the date of acquisition; and 
 (v) money market funds which invest substantially all of their assets in securities described in the foregoing clauses (i) through (iv). 
  

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 “Cash Proceeds Account” has the meaning set forth in Section 2.04(a) of this
Agreement. 
 “Claims” means all “commercial tort claims” (as defined in the UCC), including, without
limitation, each of the claims described on Schedule Section 1.01 hereto, as such Schedule may be amended, modified or supplemented from time to time, and also means and includes all claims, causes of action and similar rights and
interests (however characterized) of a Loan Party, whether arising in contract, tort or otherwise, and whether or not subject to any action, suit, investigation or legal, equitable, arbitration or administrative proceedings. 
 “Collateral” has the meaning set forth in Section 2.01 of this Agreement. 
 “Collateral Accounts” means one or more of the Cash Proceeds Account, the Reinvestment Funds Account, the Prepayment Account and any
other Securities Accounts or Deposit Accounts established with or in the possession or under the control of the Collateral Agent into which cash or cash Proceeds (including cash Proceeds of insurance policies, awards of condemnation or other
compensation) of any Collateral are deposited from time to time, collectively. 
 “Collateral Agent” means U.S. Bank
National Association, in its capacity as collateral agent for the Finance Parties, and its successor or successors in such capacity. 
 “Computer Hardware” means all computer and other electronic data processing hardware of a Loan Party, whether now or hereafter owned, licensed or leased by such Loan Party, including, without limitation, all integrated
computer systems, central processing units, memory units, display terminals, printers, features, computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical supply hardware, generators, power equalizers, accessories,
peripheral devices and other related computer hardware, all documentation, flowcharts, logic diagrams, manuals, specifications, training materials, charts and pseudo codes associated with any of the foregoing and all options, warranties, services
contracts, program services, test rights, maintenance rights, support rights, renewal rights and indemnifications relating to any of the foregoing. 
 “Copyright” means any of the following, whether now existing or hereafter arising, created or acquired: 
 (i) the
United States and foreign copyrights described on Schedule V to any Loan Party’s Perfection Certificate (as each such schedule may be amended, modified or supplemented from time to time) and any renewals thereof; 
 (ii) all other common law and/or statutory rights in all copyrightable subject matter under the Laws of the United States or any other country (whether
or not the underlying works of authorship have been published); 
  

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 (iii) all registrations and applications for registration of any such copyright in the United States or
any other country, including registrations, recordings, supplemental, derivative or collective work registrations and pending applications for registrations in the United States Copyright Office or any other country; 
 (iv) all tangible property embodying or incorporating any or all of the foregoing, whether in completed form or in some lesser state of completion, and
all masters, duplicates, drafts, versions, variations and copies thereof, in all formats; 
 (v) all claims for, and rights to sue for, past,
present and future infringement of any of the foregoing; 
 (vi) all income, royalties, damages and payments now or hereafter due or payable
with respect to any of the foregoing, including, without limitation, damages and payments for past, present or future infringements thereof and payments and damages under all Copyright Licenses in connection therewith; and 
 (vii) all rights in any of the foregoing, whether arising under the Laws of the United States or any foreign country or otherwise, to copy, record,
synchronize, broadcast, transmit, perform and/or display any of the foregoing or any matter which is the subject of any of the foregoing in any manner and by any process now known or hereafter devised. 
 “Copyright Security Agreement” means a Notice of Grant of Security Interest in United States Copyrights, substantially in the form of
Exhibit B to this Agreement, between one or more Loan Parties and the Collateral Agent, as the same may be amended, modified or supplemented from time to time. 
 “Copyright License” means any agreement now or hereafter in existence granting to any Loan Party any rights, whether exclusive or non-exclusive, to use another Person’s copyrights or copyright
applications, or pursuant to which any Loan Party has granted to any other Person, any right, whether exclusive or non-exclusive, with respect to any Copyright, whether or not registered, including, without limitation, the Copyright Licenses
described on Schedule V to any Loan Party’s Perfection Certificate (as each such schedule may be amended, modified or supplemented from time to time). 
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 
 “Deposit Accounts” means all “deposit accounts” (as defined in the UCC) and also means and includes all demand, time, savings, passbook or similar accounts maintained by a Loan Party with a
bank or other financial institution, whether or not evidenced by an Instrument, all cash and other funds held therein and all passbooks related thereto and all certificates and Instruments, if any, from time to time representing, evidencing or
deposited into such deposit accounts. 
  

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 “Equipment” means all “equipment” (as defined in the UCC), including all items
of machinery, equipment, Computer Hardware, furnishings and fixtures of every kind, whether or not affixed to real property, as well as all motor vehicles, automobiles, trucks, trailers, railcars, barges and vehicles of every description, handling
and delivery equipment, all additions to, substitutions for, replacements of or accessions to any of the foregoing, all attachments, components, parts (including spare parts) and accessories whether installed thereon or affixed thereto and all fuel
for any thereof and all options, warranties, service contracts, program services, test rights, maintenance rights, support rights, improvement rights and indemnifications relating to any of the foregoing. 
 “ERISA Group” means Holdings and its Subsidiaries and each business or entity which is a member of a “controlled group of
corporations”, under “common control” or an “affiliated service group” with Holdings or any Subsidiary within the meaning of Section 414(b), (c) or (m) of the Internal Revenue Code of 1986, as amended, or
required to be aggregated with Holdings or any Subsidiary under Section 414(o) of the Internal Revenue Code of 1986, as amended, or is under “common control” with Holdings or any Subsidiary, within the meaning of
Section 4001(a)(14) of Employee Retirement Income Security Act of 1974, as amended. 
 “Event of Default” means an
“Event of Default” as defined in the Indenture or any Term Loan Agreement. 
 “Excluded Contract” means at any
date any rights or interest of a Loan Party in, to or under any agreement, contract, license, instrument, document or other general intangible (referred to solely for purposes of this definition as a “Contract”) (i) to the
extent that such Contract by the express terms of a valid and enforceable restriction in favor of a Person who is not DRI, Duane Reade or any Guarantor, or any requirement of Law, prohibits, or requires any consent or establishes any other condition
for, an assignment thereof or a grant of a security interest therein by a Loan Party and (ii) which, if in existence or the subject of rights in favor of a Loan Party as of the Issue Date and with respect to which a contravention or other
violation caused or arising by its inclusion as Collateral under this Agreement could reasonably be expected to have a Material Adverse Effect, is listed and designated as such on Schedule VI to any Loan Party’s Perfection
Certificate or individually or collectively is not material to the conduct of the business of a Loan Party; provided that: (i) rights to payment under any such Contract otherwise constituting an Excluded Contract by virtue of this definition
shall be included in the Collateral to the extent permitted thereby or by Section 9-406 or Section 9-408 of the UCC and (ii) all Proceeds paid or payable to any Loan Party from any sale, transfer or assignment of such Contract and all
rights to receive such Proceeds shall be included in the Collateral. 
 “Excluded Deposit Accounts” means each of the
Deposit Accounts that are listed under the heading “Excluded Deposit Accounts” on Schedule 1.01B hereto; provided that if the Revolving Credit Collateral Agent and the relevant Loan Party enter into a deposit account
control agreement with respect to such Excluded Deposit Account, such Deposit Account shall no longer be an “Excluded Deposit Account” and the 

  

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requirements of Section 4.01 and 4.13 shall apply thereto, including, without limitation, the requirement that the applicable Loan Party deliver to the
Collateral Agent a fully executed Account Control Agreement with respect to such Deposit Account; provided further that if any of the Deposit Accounts labeled as “Main Operating Account,” “Duane Reade International Operating
Account” and “Duane Reade Holdings, Inc. funding account” on Schedule 3.05 are used for purposes other than the purpose described on Schedule 3.05 with respect to such Deposit Account, or any similar or related purpose,
such Deposit Account shall cease to be an Excluded Deposit Account. 
 “Excluded Equipment” means at any date any Equipment
of a Loan Party which is subject to, or secured by, a Capital Lease Obligation or Purchase Money Obligation if and to the extent that (i) the express terms of a valid and enforceable restriction in favor of a Person who is not DRI, Duane Reade
or any Guarantor contained in the agreements or documents granting or governing such Capital Lease Obligation or Purchase Money Obligation prohibits, or requires any consent or establishes any other conditions for, an assignment thereof, or a grant
of a security interest therein, by a Loan Party and (ii) such restriction relates only to the asset or assets acquired by a Loan Party with the Proceeds of such Capital Lease Obligation or Purchase Money Obligation and attachments thereto or
substitutions therefor; provided that all Proceeds paid or payable to any Loan Party from any sale, transfer or assignment or other voluntary or involuntary disposition of such Equipment and all rights to receive such Proceeds shall be included in
the Collateral to the extent not otherwise required to be paid to the holder of the Capital Lease Obligation or Purchase Money Obligation secured by such Equipment. 
 “Exempt Deposit Accounts” means (i) Deposit Accounts the balance of which consists exclusively of (A) withheld income taxes and federal, state or local employment taxes in such amounts as
are required in the reasonable judgment of a Loan Party to be paid to the Internal Revenue Service or state or local government agencies within the following two months with respect to employees of any of the Loan Parties and (B) amounts
required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3-102 on behalf of or for the benefit of employees of one or more Loan Parties, and (ii) all segregated Deposit Accounts constituting (and the balance of which
consists solely of funds set aside in connection with) taxes accounts, payroll accounts and trust accounts. 
 “Fair Market
Value” has the meaning given to it in the Indenture. 
 “Finance Document” means each Term Loan Document, each Swap
Agreement evidencing Swap Obligations of a Loan Party permitted under all Term Loan Agreements, if any, and the Indenture to be secured hereby, each Note Document between one or more Loan Parties and a Finance Party and the Collateral Agency
Agreement, and “Finance Documents” means any two or more of them, collectively. 
 “Finance Obligations”
means: 
 (i) all Note/Term Obligations; and 
  

 9 

 (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, each Indemnitee and their respective successors and assigns, and “Finance Parties” means any two or more of them, collectively. 
 “Foreign Subsidiary” means with respect to any Person at any date any Subsidiary of such Person which is not a US Subsidiary of such Person. 
 “GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board, the Public Company Accounting Oversight Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which were in effect on July 30, 2004. 
 “General
Intangibles” means all “general intangibles” (as defined in the UCC) and also means and includes (i) all Payment Intangibles and other obligations and indebtedness owing to any Loan Party (other than Accounts), from
whatever source arising, (ii) all Claims, Judgments and/or Settlements, (iii) all rights or claims in respect of refunds for taxes paid, (iv) all rights in respect of any pension plans or similar arrangements maintained for employees
of any Loan Party or any member of the ERISA Group, (v) all interests in limited liability companies and/or partnerships which interests do not constitute Securities and (vi) all Supporting Obligations of any kind given by any Person with
respect to all or any of the foregoing. 
 “Governmental Authority” means any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government. 
 “Group Company” means any of Holdings, DRI or their respective Subsidiaries
(regardless of whether or not consolidated with Holdings or DRI for purposes of GAAP), and “Group Companies” means all of them, collectively. 
 “Guarantee” means the guarantee by any Guarantor of the Note/Term Obligations. 
  

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 “Indebtedness” has the meaning set forth in the Indenture and any Term Loan Agreement.

 “Indemnitee” has the meaning set forth in Section 7.03(c) of this Agreement. 
 “Individual Store Accounts” means Deposit Accounts, the balance of which consists exclusively of a single retail store’s receipts
in the ordinary course of business swept daily into a concentration account. 
 “Intellectual Property” means all Patents,
Trademarks, Copyrights, Software, Licenses, rights in intellectual property, goodwill, trade secrets, confidential or proprietary technical and business information, know-how, show-how, domain names, mask works, customer lists, vendor lists,
subscription lists, data bases and related documentation, registrations, franchises and all other intellectual or other similar property rights. 
 “Intercreditor Agreement” has the meaning set forth in the introductory paragraphs hereof. 
 “Issue
Date” means August 7, 2009. 
 “Judgments” means all judgments, decrees, verdicts, decisions or orders issued
in resolution of or otherwise in connection with a Claim, whether or not final or subject to appeal, and including all rights of enforcement relating thereto and any and all Proceeds thereof. 
 “Law” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations,
ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law. 
 “License” means any Patent License, Trademark License, Copyright License, Software License or other license or sublicense as to which
any Loan Party is a party (other than those license agreements constituting Excluded Contracts; provided that rights to payments under any such license shall be included in the Collateral to the extent permitted thereby or by Section 9-406 and
9-408 of the UCC). 
 “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 

  

 11 

 
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. 
 “Liquid Investments” has the
meaning set forth in Section 2.07 of this Agreement. 
 “Loan Party” has the meaning set forth in the
introductory paragraphs hereof. 
 “Material Adverse Effect” means (i) any material adverse effect upon the business,
assets, properties, liabilities, results of operations or condition (financial or otherwise) of Holdings, DRI, Duane Reade and the Restricted Subsidiaries, taken as a whole, (ii) a material adverse effect on the ability of a Loan Party to
consummate the transactions contemplated by the Note Documents to occur on the Issue Date, (iii) a material impairment of the ability of any Loan Party to perform any of its obligations under any Finance Document to which it is a party or
(iv) a material impairment of the rights and benefits of the Finance Party under any Finance Document. 
 “Moody’s” means Moody’s Investors Service, Inc., and its successors. 
 “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, without duplication: 
 (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; 
  

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 (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; 
 together in each case with all renewals, modifications, refinancings, consolidations or extensions thereof. 
 “Operating
Account” means an operating account that is used for the payment of operating costs and expenses of a Loan Party incurred in the ordinary course of business and that is funded on a periodic basis either by borrowings under the Revolving
Credit Agreement or by fundings from a Loan Party’s operating account; provided that if any such operating account is used for purposes other than the purpose described above, or any similar or related purpose, such operating account
shall cease to be an Operating Account. 
 “Patent” means any of the following: 
 (i) the United States and foreign patents described on Schedule V to any Loan Party’s Perfection Certificate (as each such schedule may
be amended, modified or supplemented from time to time) and any renewals thereof; 
 (ii) all other letters patent and design letters patent
of the United States or any other country; 
 (iii) all applications filed or in preparation for filing for letters patent and design letters
patent of the United States or any other country including, without limitation, applications in the United States Patent and Trademark Office or in any similar office or agency of the United States or any other country or political subdivision
thereof; 
 (iv) all reissues, divisions, continuations, continuations-in-part, revisions, renewals or extensions thereof; 
 (v) all claims for, and rights to sue for, past, present or future infringement of any of the foregoing; 
  

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 (vi) all income, royalties, damages and payments now or hereafter due or payable with respect to any of
the foregoing, including, without limitation, damages and payments for past, present or future infringements thereof and payments and damages under all Patent Licenses in connection therewith; and 
 (vii) all rights corresponding to any of the foregoing whether arising under the Laws of the United States or any foreign country or otherwise.

 “Patent and Trademark Security Agreement” means a Notice of Grant of Security Interest in United States Patents and
Trademarks, substantially in the form of Exhibit A to this Agreement, between one or more Loan Parties and the Collateral Agent, as the same may be amended, modified or supplemented from time to time. 
 “Patent License” means any agreement now or hereafter in existence granting to any Loan Party any right, whether exclusive or
non-exclusive, with respect to any Person’s patent or any invention now or hereafter in existence, whether or not patentable, or pursuant to which any Loan Party has granted to any other Person, any right, whether exclusive or non-exclusive,
with respect to any Patent or any invention now or hereafter in existence, whether or not patentable and whether or not a Patent or application for Patent is in or hereafter comes into existence on such invention, including, without limitation, the
Patent Licenses described on Schedule V to any Loan Party’s Perfection Certificate (as each such schedule may be amended, modified or supplemented from time to time). 
 “Perfection Certificate” means with respect to each Loan Party a certificate, substantially in the form of Exhibit F hereto,
completed and supplemented with the schedules and attachments contemplated thereby to the reasonable satisfaction of the Collateral Agent. 
 “Permitted Lien” means any Lien permitted by both (a) the Indenture and (b) all Term Loan Agreements, if any. 
 “Prepayment Account” has the meaning set forth in Section 2.06 of this Agreement. 
 “Purchase
Money Obligation” means Indebtedness of DRI or any of its Restricted Subsidiaries incurred for the purpose of financing all or any part of the purchase price of property, plant or equipment used in the business of DRI or any Restricted
Subsidiary or the cost of installation, construction or improvement thereof, and the payment of any sales or other taxes associated therewith; provided, however, that (i) the amount of such Indebtedness shall not exceed such
purchase price or cost and payment plus applicable taxes, and (ii) such Indebtedness shall be incurred within one year of such acquisition of such asset by DRI or such Restricted Subsidiary or such installation, construction or improvement.

  

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 “Receivables” means all Accounts, all Payment Intangibles, all Instruments, all Chattel
Paper and all Supporting Obligations supporting or otherwise relating to any of the foregoing. 
 “Recordable Intellectual
Property” means Intellectual Property the transfer of which is required to be recorded in the United States Patent and Trademark Office or the United States Copyright Office in order to be effective against subsequent third party
transferees; provided that the following shall not be considered “Recordable Intellectual Property” hereunder: (i) unregistered United States Copyrights and (ii) non-exclusive Licenses. 
 “Reinvestment Funds” has the meaning set forth in Section 2.05(a) of this Agreement. 
 “Reinvestment Funds Account” has the meaning set forth in Section 2.05(a) of this Agreement. 
 “Restricted Deposit Accounts” means each Deposit Account restricted pursuant to Section 4.13 and listed under the heading
“Restricted Deposit Accounts” on Schedule 1.01B hereto. 
 “Restricted Subsidiary” has the meaning set
forth in the Indenture. 
 “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.,
and its successors. 
 “Security Interests” means the security interests in the Collateral granted under this Agreement
securing the Finance Obligations. 
 “Settlements” means all right, title and interest of a Loan Party in, to and under any
settlement agreement or other agreement executed in settlement or compromise of any Claim, including all rights to enforce such agreements and all payments thereunder or arising in connection therewith. 
 “Software” means all “software” (as defined in the UCC), and also means and includes all software programs, whether now or
hereafter owned, licensed or leased by a Loan Party, designed for use on Computer Hardware, including, without limitation, all operating system software, utilities and application programs in whatever form and whether or not embedded in goods, all
source code and object code in magnetic tape, disk or hard copy format or any other listings whatsoever, all firmware associated with any of the foregoing, all documentation, flowcharts, logic diagrams, web pages, manuals, specifications, training
materials, charts and pseudo codes associated with any of the foregoing, and all options, warranties, services contracts, program services, test rights, maintenance rights, support rights, renewal rights and indemnifications relating to any of the
foregoing. 
  

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 “Software License” means any agreement (including any agreement constituting a Copyright
License, Patent License and/or Trademark License) now or hereafter in existence granting to any Loan Party any right, whether exclusive or non-exclusive, to use another Person’s Software, or pursuant to which any Loan Party has granted to any
other Person, any right, whether exclusive or non-exclusive, to use any Software, whether or not subject to any registration. 
 “Supporting Obligation” means a “supporting obligation” (as defined in the UCC) and also means a guarantee or other secondary obligation supporting, or any Lien securing, the payment or performance of one or more
Receivables, General Intangibles, Documents, Assigned Agreements or Investment Property. 
 “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 (as defined in the Collateral Agency Agreement),
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. 
 “Term Loan Documents” 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. 
 “Trademark” means any of the following: 
 (i) the United States and foreign trademarks described on Schedule V to any Loan Party’s Perfection Certificate (as each such schedule may be amended, modified or supplemented from time to time) and
any renewals thereof; 
 (ii) all other trademarks, trade names, corporate names, company names, business names, fictitious business names,
trade styles, service marks, logos, certification marks, collective marks, brand names and trade dress which are or have been 

  

 16 

 
used in the United States or in any state, territory or possession thereof, or in any other place, nation or jurisdiction, along with all prints and labels
on which any of the foregoing have appeared or appear, package and other designs, and any other source or business identifiers, and general intangibles of like nature, and the rights in any of the foregoing which arise under applicable Law;

 (iii) the goodwill of the business symbolized thereby or associated with each of the foregoing; 
 (iv) all registrations and applications in connection therewith, including, without limitation, registrations and applications in the United States
Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof, but excluding in all cases all intent-to-use United States trademark applications for
which an amendment to allege use or statement of use has not been filed under 15 U.S.C. § 1051(c) or 15 U.S.C. § 1051(d), respectively, or if filed, has not been deemed in conformance with 15 U.S.C.
§ 1051(a) or examined and accepted, respectively, by the United States Patent and Trademark Office provided that upon such filing and acceptance, such intent-to-use applications shall be included in the definition of Trademark; 

(v) all reissues, extensions and renewals thereof; 
 (vi) all claims for, and rights to sue for, past, present or future infringements of any of the foregoing; 
 (vii) all income, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including, without limitation, damages and payments for past, present or future infringements thereof and payments and
damages under all Trademark Licenses in connection therewith; and 
 (viii) all rights corresponding to any of the foregoing whether arising
under the Laws of the United States or any foreign country or otherwise. 
 “Trademark License” means any agreement now or
hereafter in existence granting to any Loan Party any right, whether exclusive or non-exclusive, to use another Person’s trademarks or trademark applications, or pursuant to which any Loan Party has granted to any other Person, any right,
whether exclusive or non-exclusive, to use any Trademark, whether or not registered, including, without limitation, the Trademark Licenses described on Schedule V to any Loan Party’s Perfection Certificate (as each such schedule may
be amended, modified or supplemented from time to time) and the rights to prepare for sale, sell and advertise for sale, all of the inventory now or hereafter owned by any Loan Party and now or hereafter covered by such license agreements.

 “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 the Security Interests in any Collateral is governed by the Uniform Commercial Code as in 

  

 17 

 
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. 
 “US
Subsidiary” means with respect to any Person each Subsidiary of such Person which, at the time of determination, is incorporated in or organized under the Laws of the United States of America, any State thereof or the District of Columbia,
and “US Subsidiaries” means all of them, collectively. 
 Section 1.04 Terms Generally. Terms defined in the
introductory paragraphs hereof and the definitions in Section 1.03 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 
 SECURITY INTERESTS 
 Section 2.01 Grant of Security Interests. To secure
the due and punctual payment of all Finance Obligations, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing or due or to become due, in accordance with the terms thereof and to
secure the performance of all of the obligations of each Loan Party hereunder and the other Loan Parties hereunder and under the other Finance Documents, each Loan Party hereby grants to the Collateral Agent for the benefit of the Finance Parties a
security interest in, and each Loan Party hereby pledges and assigns to the Collateral Agent for the benefit of the Finance Parties, all of such Loan Party’s right, title and interest in, to and under the following, whether now owned or
existing or hereafter acquired, created or arising, whether tangible or intangible, and regardless of where located (other than any item which on any date constitutes an Excluded Contract or Excluded Equipment) (all of which are herein collectively
called the “Collateral”): 
 (i) all Receivables; 
 (ii) all Inventory; 
 (iii) all General
Intangibles; 
 (iv) all Intellectual Property; 
  

 18 

 (v) all Documents and all Supporting Obligations of any kind given by any Person with respect thereto;

 (vi) all Equipment; 
 (vii)
all Investment Property and all Supporting Obligations of any kind given by any Person with respect thereto; 
 (viii) all Assigned
Agreements; 
 (ix) all Deposit Accounts; 
 (x) the Collateral Accounts, all cash and other property deposited therein or credited thereto from time to time, the Liquid Investments made pursuant to Section 2.07 and other monies and property of any kind of
any Loan Party maintained with or in the possession of or under the control of the Collateral Agent; 
 (xi) all books and records
(including, without limitation, customer lists, credit files, computer programs, printouts and other computer materials and records) of each Loan Party pertaining to any of the Collateral; and 
 (xii) all Proceeds of all or any of the Collateral described in clauses (i) through (xi) hereof; 
 provided, however, that, the Collateral shall not include (i) any property or assets owned by any Loan Party that is a Foreign Subsidiary,
(ii) any voting security that is issued by a Foreign Subsidiary (that is a corporation for United States federal income tax purposes) and owned by any Loan Party, if and to the extent that the inclusion of such voting security in the Collateral
would cause the Collateral pledged by such Loan Party hereunder or under any other Finance Document to include in the aggregate more than 65% of the total combined voting power of all classes of voting securities of such Foreign Subsidiary,
(iii) assets securing Purchase Money Obligations or Capital Lease Obligations permitted to be incurred pursuant to the Indenture and all Term Loan Agreements, if any, (iv) any Capital Stock and other securities of each Subsidiary of DRI to
the extent that the pledge of such Capital Stock or other securities to secure the Finance Obligations would cause such Subsidiary to be required to file separate financial statements with the Securities and Exchange Commission pursuant to Rule 3-16
of Regulation S-X (as in effect from time to time) of the Securities and Exchange Commission, (v) any Capital Stock or other securities of any Person that becomes a Guarantor after the Issue Date that, together with all other such Guarantors
created, acquired or invested in after the Issue Date, have a collective Fair Market Value of less than $30,000,000 and (vi) any proceeds or products from any and all of the foregoing unless such proceeds or products would otherwise constitute
Collateral. 
 Notwithstanding the foregoing, if granting or perfecting any Lien to secure the Finance Obligations on any Collateral
(i) cannot be granted or perfected under applicable law, none of DRI, Duane Reade or the Guarantors will be required to grant or 

  

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perfect, as applicable, such Lien and (ii) that consists of personal property rights that are licensed or leased from a third-party requires the consent
of such third party pursuant to the terms of an applicable license or lease agreement, and such terms are enforceable under applicable law, DRI, Duane Reade or the Guarantors, as the case may be, will use all commercially reasonable efforts to
obtain such consent with respect to the granting or perfecting of such Lien, but if the third party does not consent to the granting or perfecting of such Lien after the use of commercially reasonable efforts, none of DRI, Duane Reade or the
Guarantors will be required to do so. 
 Section 2.02 Continuing Liability of Each Loan Party. Anything herein to the contrary
notwithstanding, each Loan Party shall remain liable to observe and perform all the terms and conditions to be observed and performed by it under any contract, agreement, warranty or other obligation with respect to the Collateral. Neither the
Collateral Agent nor any Finance Party shall have any obligation or liability under any such contract, agreement, warranty or obligation by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any Finance Party of any
payment relating to any Collateral, nor shall the Collateral Agent or any Finance Party be required to perform or fulfill any of the obligations of any Loan Party with respect to any of the Collateral, to make any inquiry as to the nature or
sufficiency of any payment received by it or the sufficiency of the performance of any party’s obligations with respect to any Collateral. Furthermore, neither the Collateral Agent nor any Finance Party shall be required to file any claim or
demand to collect any amount due or to enforce the performance of any party’s obligations with respect to the Collateral. 
 Section
2.03 Security Interests Absolute. All rights of the Collateral Agent, all security interests hereunder and all obligations of each Loan Party hereunder are unconditional and absolute and independent and separate from any other security for or
guaranty of the Finance Obligations, whether executed by such Loan Party, any other Loan Party or any other Person. Without limiting the generality of the foregoing, the obligations of each Loan Party hereunder shall not be released, discharged or
otherwise affected or impaired by: 
 (i) any extension, renewal, settlement, compromise, acceleration, waiver or release in respect of any
Finance Obligation under any other Finance Document or any other agreement or instrument evidencing or securing any Finance Obligation, by operation of Law or otherwise; 
 (ii) any change in the manner, place, time or terms of payment of any Finance Obligation or any other amendment, supplement or modification to any Finance Document or any other agreement or instrument evidencing or
securing any Finance Obligation; 
 (iii) any release, non-perfection or invalidity of any direct or indirect security for any Finance
Obligation, any sale, exchange, surrender, realization upon, offset against or other action in respect of any direct or indirect security for any Finance Obligation or any release of any other obligor or Loan Parties in respect of any Finance
Obligation; 
  

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 (iv) any change in the existence, structure or ownership of any Loan Party, or any insolvency,
bankruptcy, reorganization, arrangement, readjustment, composition, liquidation or other similar proceeding affecting a Loan Party or its assets or any resulting disallowance, release or discharge of all or any portion of any Finance Obligation;

 (v) the existence of any claim, set-off or other right which any Loan Party may have at any time against any other Loan Party, any Finance
Party or any other Person, whether in connection herewith or any unrelated transaction; provided that nothing herein shall prevent the assertion of any such claim by separate suit or compulsory counterclaim; 
 (vi) any invalidity or unenforceability relating to or against any Loan Party for any reason of any Finance Document or any other agreement or instrument
evidencing or securing any Finance Obligation or any provision of applicable Law or regulation purporting to prohibit the payment by any Loan Party of any Finance Obligation; 
 (vii) any failure by any Finance Party: (A) to file or enforce a claim against any Loan Party or its estate (in a bankruptcy or other proceeding);
(B) to give notice of the existence, creation or incurrence by any Loan Party of any new or additional indebtedness or obligation under or with respect to the Finance Obligations; (C) to commence any action against any Loan Party;
(D) to disclose to any Loan Party any facts which such Finance Party may now or hereafter know with regard to any Loan Party; or (E) to proceed with due diligence in the collection, protection or realization upon any collateral securing
the Finance Obligations; 
 (viii) any direction as to application of payment by any Loan Party or any other Person; 
 (ix) any subordination by any Finance Party of the payment of any Finance Obligation to the payment of any other liability (whether matured or unmatured)
of any Loan Party to its creditors; 
 (x) any act or failure to act by the Collateral Agent or any other Finance Party under this Agreement
or otherwise which may deprive any Loan Party of any right to subrogation, contribution or reimbursement against any other Loan Party or any right to recover full indemnity for any payments made by such Loan Party in respect of the Finance
Obligations; or 
 (xi) any other act or omission to act or delay of any kind by any Loan Party or any Finance Party or any other Person or
any other circumstance whatsoever which might, but for the provisions of this clause, constitute a legal or equitable discharge of any Loan Party’s obligations hereunder (other than final payment in full of the Finance Obligations). 

 

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 Each Loan Party has irrevocably and unconditionally delivered this Agreement to the Collateral Agent, for
the benefit of the Finance Parties, and the failure by any other Person to sign this Agreement or a security agreement similar to this Agreement or otherwise shall not discharge the obligations of any Loan Party hereunder. 
 This Agreement shall remain fully enforceable against each Loan Party irrespective of any defenses that any other Loan Party may have or assert in
respect of the Finance Obligations, including, without limitation, failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury, except that a Loan Party may assert the defense
of final payment in full of the Finance Obligations. 
 Section 2.04 Segregation of Proceeds; Cash Proceeds Account. 
 (a) Creation of Cash Proceeds Account. There is hereby established with the Collateral Agent a Securities Account (the “Cash Proceeds
Account”) entitled “Duane Reade Senior Cash Collateral Account” and under the exclusive control of the Collateral Agent, into which there shall be deposited from time to time the cash Proceeds of the Collateral required to be
delivered to the Collateral Agent pursuant to subsection (b) of this Section. Any income received by the Collateral Agent with respect to the balance from time to time standing to the credit of the Cash Proceeds Account, including
any interest or capital gains on Liquid Investments, shall remain, or be deposited, in the Cash Proceeds Account. All right, title and interest in and to the cash amounts on deposit from time to time in the Cash Proceeds Account together with any
Liquid Investments from time to time made pursuant to Section 2.07 and any other property or assets from time to time deposited in or credited to the Cash Proceeds Account shall, subject to the Intercreditor Agreement, vest in and be
under the sole dominion and control of the Collateral Agent for the benefit of the Finance Parties, shall constitute part of the Collateral hereunder and shall not constitute payment of the Finance Obligations until applied thereto as hereinafter
provided. 
 (b) Deposits to Cash Proceeds Account. Upon the occurrence and during the continuance of an Event of Default, except as
otherwise provided in Section 2.05 or 2.06 hereof and subject to the provisions of the Intercreditor Agreement, each Loan Party shall upon the instruction of the Collateral Agent instruct all Account Debtors and other Persons
obligated in respect of its Receivables and other Collateral to make all payments in respect of its Receivables and other Collateral (other than Revolving Lender Priority Collateral if any Revolving Loan Obligation is at the time outstanding or any
commitment of one or more Revolving Lenders remains in effect under the Revolving Credit Agreement) either (i) directly to the Collateral Agent (by instructing that such payments be remitted by direct wire transfer to the Collateral Agent at
its address referred to in Section 7.01 or to a post office box which shall be in the name and under the control of the Collateral Agent) or (ii) to one or more other banks in the United States (by instructing that such payments be
remitted by direct wire transfer to, or to a post office box which shall be in the name and under the control of, such bank) under an Account Control Agreement duly executed by each relevant Loan Party and such bank or under other arrangements, in
form and substance satisfactory to the Collateral Agent, pursuant 

  

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to which each relevant Loan Party shall have irrevocably instructed such other bank (and such other bank shall have agreed) to remit all proceeds of such
payments directly to the Collateral Agent for deposit into the Cash Proceeds Account or as the Collateral Agent may otherwise instruct such bank. All such payments made to the Collateral Agent shall be deposited in the Cash Proceeds Account. In
addition to the foregoing, each Loan Party agrees that, subject to the Intercreditor Agreement, if the Proceeds of any Collateral hereunder (other than Revolving Lender Priority Collateral if any Revolving Loan Obligation is at the time outstanding
or any commitment of one or more Revolving Lenders remains in effect under the Revolving Credit Agreement) (including the payments made in respect of Receivables) shall be received by it after the occurrence and during the continuance of an Event of
Default and the receipt of such instructions, such Loan Party shall as promptly as possible deposit such Proceeds into the Cash Proceeds Account. Until so deposited, all such Proceeds shall be held in trust by the relevant Loan Party for and as the
property of the Collateral Agent for the benefit of the Finance Parties and shall not be commingled with any other funds or property of any Loan Party; provided, however, that after an Event of Default that gave rise to the application of
this Section has been cured or waived and until another Event of Default shall occur, all collected funds on deposit in the Cash Proceeds Account, or so much thereof as is not required to make payment of the Finance Obligations which have
become due and payable (whether by scheduled maturity, acceleration or otherwise), shall be withdrawn by the Collateral Agent on the next Business Day following the day on which the Collateral Agent considers the funds deposited therein to be
collected funds and disbursed to the applicable Loan Party or its order. Each Loan Party hereby irrevocably consents and agrees to such disbursement. Each Loan Party hereby irrevocably authorizes and empowers the Collateral Agent, its officers,
employees and authorized agents during the continuance of an Event of Default and subject to the Intercreditor Agreement, to endorse and sign its name on all checks, drafts, money orders or other media of payment so delivered, and such endorsements
or assignments shall, for all purposes, be deemed to have been made by the relevant Loan Party prior to any endorsement or assignment thereof by the Collateral Agent. The Collateral Agent may use any convenient or customary means for the purpose of
collecting such checks, drafts, money orders or other media of payment. 
 Section 2.05 Reinvestment Funds Account. 
 (a) Creation of and Deposits to the Reinvestment Funds Account. Promptly upon and at all times after the receipt by any Loan Party of any Net Loss
Proceeds (as defined in the Indenture) or other amounts required to be paid to the Collateral Agent pursuant to Section 4.15(b) of the Indenture, Section 4.10 hereof or pursuant to any similar provision of any Term Loan
Agreement or other Finance Document (in each case other than proceeds in respect of the Revolving Lender Priority Collateral if any Revolving Loan Obligation is at the time outstanding or any commitment of one or more Revolving Lenders remains in
effect under the Revolving Credit Agreement) (collectively, “Reinvestment Funds”) and subject to the Intercreditor Agreement, such Loan Party shall establish and shall thereafter (i) maintain an additional Securities Account
(the “Reinvestment Funds Account”) at the offices of the Collateral Agent or such other bank or other financial institution as such Loan Party and the 
  

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Collateral Agent may agree, in the name and under the exclusive control of the Collateral Agent or (ii) pay over such proceeds to the Revolving Credit
Administrative Agent in accordance with the Indenture or the applicable provision of any Term Loan Agreement. If the Reinvestment Funds Account is not maintained at an office of the Collateral Agent, then forthwith upon the establishment of such
account, the applicable Loan Party shall notify the Collateral Agent of the location, account name and account number of such account and shall, subject to the Intercreditor Agreement, deliver to the Collateral Agent an Account Control Agreement
with respect to such Reinvestment Funds Account duly executed by such Loan Party and the Securities Intermediary maintaining such Reinvestment Funds Account. Each Loan Party hereby agrees to cause any Reinvestment Funds received from time to time
after the establishment of the Reinvestment Funds Account to be deposited therein as set forth in this paragraph. Any Net Loss Proceeds (other than proceeds in respect of the Revolving Lender Priority Collateral if any Revolving Loan Obligation is
at the time outstanding or any commitment of one or more Revolving Lenders remains in effect under the Revolving Credit Agreement) exceeding $10,000,000 in respect of one or a series of related events or conditions giving rise thereto received from
time to time by the Collateral Agent in respect of which the Collateral Agent is an insured party and loss payee shall be promptly deposited in the Reinvestment Funds Account as set forth in this paragraph to be applied in accordance with the terms
of this Agreement and the Finance Documents, subject to the provisions of clause (ii) above. Any income received with respect to the balance from time to time standing to the credit of the Reinvestment Funds Account, including any
interest or capital gains on Liquid Investments, shall remain, or be deposited, in the Reinvestment Funds Account to be applied in accordance with the terms of this Agreement and the Finance Documents. All right, title and interest in and to the
cash amounts on deposit from time to time in the Reinvestment Funds Account together with any Liquid Investments from time to time made pursuant to Section 2.07 hereof and any other property or assets from time to time deposited in or
credited to the Reinvestment Funds Account shall vest in the Collateral Agent for the benefit of the Finance Parties, shall constitute part of the Collateral hereunder and shall not constitute payment of the Finance Obligations until applied thereto
as hereinafter provided. The Collateral Agent shall apply to repayment of the Finance Obligations those amounts on deposit in the Reinvestment Funds Account which are required to be applied to the repayment of the Senior Secured Notes in accordance
with the Indenture, and to the repayment of any Term Loans in accordance with the relevant provisions of any Term Loan Agreement or, in each case, any other applicable term of any Finance Document at the times expressly provided for in such
documents, and, unless an Event of Default shall have occurred and be continuing, shall promptly in accordance with subsection (b) below release to, or upon the order of the Loan Party in respect of which such Reinvestment Funds were delivered,
those amounts on deposit in the Reinvestment Funds Account which are not required to be so applied or retained in the Reinvestment Funds Account pursuant to any other provision of any Finance Document for application as provided in subsection
(b) below. 
  

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 (b) Withdrawals from Reinvestment Funds Account. The balance from time to time standing to the
credit of the Reinvestment Funds Account (to the extent not applied pursuant to the last sentence of Section 2.05(a)) shall be subject to withdrawal only upon the instructions of the Collateral Agent. Except upon the occurrence and
continuation of an Event of Default, the Collateral Agent agrees to give instructions to distribute such amounts to the applicable Loan Party at such times and in such amounts as such Loan Party shall request for the purpose of repairing,
reconstructing or replacing the property in respect of which such Reinvestment Funds were received or for the purpose of repaying indebtedness secured by a Permitted Lien on, or meeting other liabilities in respect of, the property in respect of
which such Reinvestment Funds were received. Each Loan Party hereby irrevocably consents and agrees to such distribution. To the extent required by any Finance Document, any such request shall be accompanied by a certificate of the chief executive
officer or chief financial officer of such Loan Party setting forth in detail the repair, reconstruction or replacement for which such funds will be expended. If immediately available cash on deposit in the Reinvestment Funds Account is not
sufficient to make any distribution to a Loan Party referred to in the previous sentence of this Section 2.05(b), the Collateral Agent shall cause to be liquidated as promptly as practicable such Liquid Investments in the Reinvestment
Funds Account designated by such Loan Party as are required to obtain sufficient cash to make such distribution and, notwithstanding any other provision of this Article II, such distribution shall not be made until such liquidation has taken
place. Upon the occurrence and continuation of an Event of Default, the Collateral Agent may apply or cause to be applied (subject to collection) any or all of the balance from time to time standing to the credit of the Reinvestment Funds Account in
the manner specified in Section 5.04 hereof. 
 Section 2.06 Prepayment Account. Subject to the Intercreditor Agreement,
all amounts that may be required to be deposited by the Loan Parties as cash collateral pursuant to the Indenture or any Term Loan Agreement and any other Finance Document shall be deposited in a Securities Account (the “Prepayment
Account”) established and maintained by the Loan Parties at the offices of the Collateral Agent or such other bank or other financial institution as the Loan Parties and the Collateral Agent may agree, in the name and under the exclusive
control of the Collateral Agent. If the Prepayment Account is not maintained at an office of the Collateral Agent, then forthwith upon the establishment of such account, the Loan Party so required to make such deposit shall notify the Collateral
Agent of the location, account name and account number of such account and shall deliver to the Collateral Agent an Account Control Agreement with respect to such Prepayment Account duly executed by the applicable Loan Party or Loan Parties and the
Securities Intermediary maintaining such Prepayment Account. Any income received with respect to the balance from time to time standing to the credit of the Prepayment Account, including any interest or capital gains on Liquid Investments, shall
remain, or be deposited, in the Prepayment Account. All right, title and interest in and to the cash amounts on deposit from time to time in the Prepayment Account, together with any Liquid Investments from time to time deposited in or credited to
the Prepayment Account, shall vest in and be under the sole dominion and control of the Collateral Agent for the benefit of the Finance Parties, shall constitute part of the Collateral hereunder and shall not constitute payment of the Finance
Obligations until applied thereto as hereinafter provided. The Collateral Agent shall from time to time pay to (i) the Trustee for application to repayment of the Senior Secured Notes those amounts 
  

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on deposit in the Prepayment Account which may be required to be applied to the repayment of the Senior Secured Notes in accordance with the Indenture upon
receipt of an Officer’s Certificate thereunder, and (ii) a Term Loan Agent for application to repayment of any Term Loans those amounts on deposit in the Prepayment Account which may be required to be applied to the repayment of any Term
Loans in accordance with such Term Loan Credit Agreement upon receipt of written direction from such Term Loan Agent. If immediately available cash on deposit in the Prepayment Account is not sufficient to make any distribution referred to in this
Section 2.06, the Collateral Agent shall cause to be liquidated as promptly as practicable such Liquid Investments in the Prepayment Account designated by the Loan Parties as are required to obtain sufficient cash to make such
distribution and, notwithstanding any other provision of this Section 2.06, such distribution shall not be made until such liquidation has taken place. 
 Section 2.07 Investment of Funds in Collateral Accounts. Amounts on deposit in the Collateral Accounts shall be invested and reinvested from time to time in such Liquid Investments as the Loan Parties shall
determine, which Liquid Investments shall be held under the control of the Collateral Agent; provided that, if an Event of Default has occurred and is continuing, the Collateral Agent may liquidate any such Liquid Investments and apply or
cause to be applied the proceeds thereof in the manner specified in Section 5.04 hereof. For this purpose, “Liquid Investments” means any Cash Equivalent maturing within 30 days after such Cash Equivalent is acquired by
the Collateral Agent. 
 Section 2.08 Collateral Agent Not Responsible. The Collateral Agent shall not be responsible for proper
application by any Loan Party of any amount distributed pursuant to this Article II. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 Each
Loan Party represents and warrants that: 
 Section 3.01 Title to Collateral. Such Loan Party has good and marketable title to, or
valid license or leasehold interests in, all of the Collateral in which it has granted a security interest hereunder, free and clear of any Liens other than Permitted Liens. Other than financing statements or other similar or equivalent documents or
instruments with respect to the Liens in favor of the Collateral Agent, the Security Interests and Permitted Liens, no financing statement, mortgage, security agreement or similar or equivalent document or instrument covering all or any part of the
Collateral is on file or of record in any jurisdiction in which such filing or recording would be effective to perfect a Lien on such Collateral. No Collateral having a value individually or collectively in excess of $500,000 (other than Inventory
in transit or Inventory in the possession of a carrier or similar bailee as to which the provisions of Section 4.04 of this Agreement have been complied with) is in the possession or control of any Person (other than the Revolving Credit
Administrative Agent or a Loan Party) asserting any claim thereto or security interest therein, except that the Collateral Agent or its designee may have possession and/or control of Collateral as contemplated hereby and by the other Finance
Documents. 
  

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 Section 3.02 Validity, Perfection and Priority of Security Interests. 
 (a) The Security Interests constitute valid security interests under the UCC securing the Finance Obligations. 
 (b) When UCC-1 financing statements naming the Collateral Agent as secured party and containing a description of the Collateral in the form specified in
Exhibit E hereto shall have been filed in the respective offices specified in Schedule 4.01 hereto, the Security Interests will constitute perfected security interests in all right, title and interest of each Loan Party in
the Collateral to the extent that a security interest therein may be perfected by filing pursuant to the UCC, prior to all other Liens and rights of others therein except for Permitted Liens. 
 (c) When each Patent and Trademark Security Agreement has been filed with the United States Patent and Trademark Office and each Copyright Security
Agreement has been filed with the United States Copyright Office, the Security Interests will (assuming that the financing statements referred to in paragraph (b) above have been filed in the appropriate filing offices) constitute
perfected security interests in all right, title and interest of such Loan Party in the Recordable Intellectual Property therein described to the extent that a security interest therein may be perfected by filing in such office, prior to all other
Liens and rights of others therein except for Permitted Liens. 
 (d) When each Account Control Agreement has been executed and delivered to
the Collateral Agent, the Security Interests will constitute perfected security interests in all right, title and interest of the Loan Parties in the Deposit Accounts and Securities Accounts, as applicable, subject thereto, prior to all other Liens
and rights of others therein and subject to no adverse claims except for Permitted Liens. 
 (e) So long as such Loan Party is in compliance
with the provisions of Section 4.14 hereof, the Security Interests shall constitute perfected security interests in all right, title and interest of such Loan Party in all electronic Chattel Paper, prior to all other Liens and rights of others
therein except for Permitted Liens. 
 Section 3.03 Fair Labor Standards Act. The hours worked by and payments made to employees of
the Loan Parties have not been in violation of the Fair Labor Standards Act or any other applicable federal, state or foreign Law dealing with such matters to the extent that any such violation could reasonably be expected to have a Material Adverse
Effect. 
 Section 3.04 No Consents. No consent of any other Person (including, without limitation, any stockholder or creditor of
such Loan Party or any of its Subsidiaries) and no order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any Governmental Authority is required to be obtained by the Loan Party
in connection with the execution, delivery or 
  

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performance of this Agreement, or in connection with the exercise of the rights and remedies of the Collateral Agent pursuant to this Agreement, except
(i) as may be required to perfect (as described in Schedule 4.01 hereto) and maintain the perfection of the security interests created hereby, (ii) with respect to vehicles represented by a certificate of title, (iii) with
respect to Receivables subject to the Federal Assignment of Claims Act, (iv) in connection with the disposition of the Collateral by Laws affecting the offering and sale of securities generally or as described in Schedule 3.04
hereto, (v) as provided in the Intercreditor Agreement, (vi) certain remedial actions may be limited by pharmacy and related Laws or (vii) as contemplated by the definition of Excluded Contracts; provided, however, that
(i) the registration of Copyrights in the United States Copyright Office may be required to obtain a security interest therein that is effective against subsequent transferees under United States Federal copyright law and (ii) to the
extent that recordation of the Security Interests in the United States Patent and Trademark Office or the United States Copyright Office is necessary to perfect the Security Interests or to render the Security Interests effective against subsequent
third parties, such recordations will not have been made with respect to the items that are not Recordable Intellectual Property. 
 Section
3.05 Deposit and Securities Accounts. Schedule 3.05 hereto sets forth as of the date hereof a complete and correct list of each Loan Party’s Deposit Accounts and Securities Accounts, the name and address of the financial
institution which maintains each such account and the purpose for which such account is used. 
 Section 3.06 Insurance. On the Issue
Date, each Loan Party’s insurance complies with the provisions of Section 4.10. 
 ARTICLE IV 
 COVENANTS 
 Each Loan Party covenants
and agrees that until the payment in full of all Finance Obligations and until there is no commitment by any Finance Party to make further advances, incur obligations or otherwise give value, such Loan Party will comply with the following:

 Section 4.01 Delivery of Perfection Certificate; Initial Perfection and Delivery of Search Reports. On or prior to the Issue Date,
such Loan Party shall (i) deliver its Perfection Certificate to the Collateral Agent, and (ii) cause all filings and recordings specified in Schedule 4.01 hereto to be made within the time periods specified in such schedule.
The information set forth in the Perfection Certificate shall be correct and complete as of the Issue Date. The Loan Parties represent and warrant that duly executed Account Control Agreements with respect to each of the Loan Parties’ Deposit
Accounts (other than Exempt Deposit Accounts, Operating Accounts, Individual Store Accounts and Excluded Deposit Accounts, with respect to which no Account Control Agreements shall be required hereunder) and Securities Accounts are in full force and
effect as if they were delivered hereunder. 
  

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 Section 4.02 Change of Name, Identity, Structure or Location; Subjection to Other Security
Agreements. Such Loan Party will not change its name, identity, structure or location (determined as provided in Section 9-307 of the UCC) in any manner, and shall not become bound, as provided in Section 9-203(d) of the UCC, by a
security agreement entered into by another Person, in each case, unless it shall have given the Collateral Agent not less than 20 days’ prior notice thereof and such Loan Party shall take all action necessary or advisable to maintain the
perfection and priority of the Collateral Agent’s security interest in the Collateral of such Loan Party. Such Loan Party shall not in any event change the location of its place or places of business, its chief executive office or any
Collateral or its name, identity, structure or location (determined as provided in Section 9-307 of the UCC), or become bound, as provided in Section 9-203(d) of the UCC, by a security agreement entered into by another Person, if such
change would cause the Security Interests in any Collateral to lapse or cease to be perfected unless such Loan Party has taken on or before the date of lapse all actions necessary to ensure that the Security Interests in the Collateral do not lapse
or cease to be perfected. Such Loan Party shall promptly notify the Collateral Agent in writing of the specific actions taken by such Loan Party pursuant to this section. 
 Section 4.03 Further Actions. Each Loan Party will, from time to time at its expense and in such manner and form as the Collateral Agent may reasonably request, execute, deliver, file and record any financing
statement, instrument, document, agreement or other paper and take any other action (including, without limitation, any filings of financing or continuation statements under the UCC and any filings with the United States Patent and Trademark Office
and the United States Copyright Office) that from time to time may be reasonably necessary or advisable under the UCC or with respect to Recordable Intellectual Property, or that the Collateral Agent may reasonably request, in order to create,
preserve, perfect, confirm or validate the Security Interests or to enable the Collateral Agent and the Finance Parties to obtain the full benefit of this Agreement or to exercise and enforce any of its rights, powers and remedies created hereunder
or under applicable Law with respect to any of the Collateral. To the extent permitted by applicable Law but without limiting such Loan Party’s obligations to itself comply with the first sentence of this Section 4.03, such Loan
Party hereby authorizes the Collateral Agent to file, in the name of such Loan Party or otherwise and without the signature or other separate authorization or authentication of such Loan Party appearing thereon, such UCC financing statements or
continuation statements as the Collateral Agent may reasonably deem necessary or appropriate to further perfect or maintain the perfection of the Security Interests. Such Loan Party hereby authorizes the Collateral Agent to file financing and
continuation statements describing as the Collateral covered thereby “all of the debtor’s personal property and assets” or words to similar effect, notwithstanding that such description may be broader in scope than the Collateral
described in this Agreement. Such Loan Party agrees that a carbon, photographic, photostatic or other reproduction of this Agreement or of a financing statement is sufficient as a financing statement. The Loan Parties shall pay the costs of, or
incidental to, any recording or filing of any financing or continuation statements or other assignment documents concerning the Collateral. 
  

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 Section 4.04 Collateral in Possession of Other Persons, Leased Real Property Locations. If any of
such Loan Party’s Collateral having a value individually or collectively in excess of $1,000,000 is at any time in the possession or control of any warehouseman, vendor, bailee or any agents or processors of any Loan Party, such Loan Party
shall (i) notify such warehouseman, vendor, bailee, agent or processor of the Security Interests created hereby, (ii) instruct such warehouseman, vendor, bailee, agent or processor to hold all such Collateral for the Collateral
Agent’s account and subject to the Collateral Agent’s instructions, (iii) use commercially reasonable efforts (without incurring material obligations or foregoing material rights) to cause such warehouseman, vendor, bailee, agent or
processor to authenticate a record acknowledging that it holds possession of such Collateral for the benefit of the Collateral Agent and the Finance Parties and (iv) make such authenticated record available to the Collateral Agent. Such Loan
Party agrees that if any warehouse receipt or receipt in the nature of a warehouse receipt is issued with respect to any of its Inventory, such warehouse receipt or receipt in the nature thereof shall not be “negotiable” (as such
term is used in Section 7-104 of the Uniform Commercial Code as in effect in any relevant jurisdiction or under other relevant Law). 
 Section 4.05 Books and Records. Such Loan Party shall keep full and accurate books and records relating to the Collateral and such Loan Party will make the same available to the Collateral Agent for inspection, at such Loan
Party’s own cost and expense, at any and all reasonable times upon demand. Upon direction by the Collateral Agent, such Loan Party shall stamp or otherwise mark such books and records in such manner as the Collateral Agent may reasonably
require in order to reflect the Security Interests. 
 Section 4.06 Delivery of Instruments, Etc. Subject to the Intercreditor
Agreement (including the obligation to deliver any Instrument or Certificated Security to the Revolving Credit Administrative Agent) such Loan Party will promptly deliver each Instrument and each Certificated Security (other than (i) Cash
Equivalents held in a Deposit Account or a Securities Account and subject to an effective Account Control Agreement unless maintained with the Collateral Agent or as otherwise required by Section 4.13 hereof and (ii) Instruments or
Certificated Securities received in connection with bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers in the ordinary course of business having
individually, a face amount of less than $1,000,000 in the case of Instruments or Certificated Securities subject to this clause (ii)) to the Collateral Agent, appropriately indorsed to the Collateral Agent; provided that so long as no Event
of Default shall have occurred and be continuing, and except as required by any other Finance Document, such Loan Party may (unless otherwise provided in Section 2.04(b)) retain for collection in the ordinary course of business any
checks, drafts and other Instruments received by it in the ordinary course of business, and the Collateral Agent shall, promptly upon request of such Loan Party, make appropriate arrangements for making any other Instrument or Certificated Security
pledged by such Loan Party available to it for purposes of presentation, collection or renewal (any such arrangement to be effected, to the extent deemed appropriate to the Collateral Agent, against a trust receipt or like document). 
  

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 Section 4.07 Notification to Account Debtors. Upon the occurrence and during the continuance of
any Event of Default and if so requested by the Collateral Agent, but in all cases subject to the Intercreditor Agreement, such Loan Party will promptly notify (and such Loan Party hereby authorizes the Collateral Agent so to notify) each Account
Debtor in respect of any Receivable that such Collateral has been assigned to the Collateral Agent hereunder for the benefit of the Finance Parties, and that any payments due or to become due in respect of such Collateral are to be made directly to
the Collateral Agent or its designee in accordance with Section 2.04 hereof. 
 Section 4.08 Certificates of Title. Upon
the occurrence and during the continuance of an Event of Default and if requested by the Collateral Agent, such Loan Party shall in the case of Equipment constituting one or more titled vehicles deliver to the Collateral Agent any and all
certificates of title, applications for title or similar evidence of ownership of such Equipment and shall cause the Collateral Agent to be named as lienholder on any such certificate of title or other evidence of ownership. 
 Section 4.09 Disposition of Collateral. Without the prior written consent of the Collateral Agent, such Loan Party will not sell, lease, exchange,
assign or otherwise dispose of, or grant any option with respect to, any Collateral or create or suffer to exist any Lien (other than the Security Interests and Permitted Liens) on any Collateral except that, subject to the rights of the Collateral
Agent and the Finance Parties hereunder if a Default or an Event of Default shall have occurred and be continuing, such Loan Party may sell, lease, license, assign, exchange or otherwise dispose of, or grant options with respect to, Collateral to
the extent permitted by the Indenture and all Term Loan Agreements, if any, whereupon, in the case of any such disposition, the Security Interests created hereby in such item (but not in any Proceeds arising from such disposition) shall cease
immediately without any further action on the part of the Collateral Agent. 
 Section 4.10 Insurance. On or prior to the Issue Date,
such Loan Party will cause the Collateral Agent to be named as an insured party and loss payee, effective at all times on and after the Issue Date, on each insurance policy covering risks relating to any of its Inventory and Equipment. Each such
insurance policy shall include effective waivers by the insurer of all claims for insurance premiums against the Collateral Agent and the Finance Parties and provide that no cancellation, termination or material modification thereof shall be
effective until at least 30 days after receipt by the Collateral Agent of notice thereof. Such Loan Party hereby appoints the Collateral Agent as its attorney-in-fact, effective during the continuance of an Event of Default, to make proof of loss,
claims for insurance and adjustments with insurers, and to execute or endorse all documents, checks or drafts in connection with payments made as a result of any insurance policies. 
  

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 Such Loan Party assumes all liability and responsibility in connection with the Collateral acquired by it
and the liability of such Loan Party to pay the Finance Obligations shall in no way be affected or diminished by reason of the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable to such Loan
Party. 
 Section 4.11 Information Regarding Collateral. Such Loan Party will, promptly upon request, provide to the Collateral Agent
all information and evidence it may reasonably request concerning the Collateral to enable the Collateral Agent to enforce the provisions of this Agreement. 
 Section 4.12 Covenants Regarding Intellectual Property. Except in respect of subparagraphs (a), (b), (c), (e) and (f) below where the failure to do so could not
reasonably be expected to have a Material Adverse Effect: 
 (a) Such Loan Party (either itself or through licensees) will, for each Patent,
not do any act, or omit to do any act, whereby any Patent that is material to the conduct of such Loan Party’s business may become invalidated or dedicated to the public, and shall continue to mark any products covered by a Patent as required
by the patent laws. 
 (b) Such Loan Party (either itself or, if permitted by Law, through its licensees or its sublicensees) will, for each
Trademark material to the conduct of such Loan Party’s business, (i) maintain such Trademark in full force free from any claim of abandonment or invalidity from non-use, material alteration, naked licensing or genericide,
(ii) maintain the quality of products and services offered under such Trademark in a manner substantially consistent with or better than the quality of such products and services as of the date hereof, (iii) display such Trademark with
proper notice, including notice of federal registration to the extent permitted by applicable Law and consistent with past practice, (iv) not knowingly use or knowingly permit the use of such Trademark in violation of any third party rights,
(v) not permit any assignment in gross of such Trademark and (vi) allow the Collateral Agent and its designees the right, at any time and from time to time, to inspect such Loan Party’s premises and to examine and observe such Loan
Party’s books, records and operations, including, without limitation, its quality control processes, upon reasonable notice and at such reasonable times and as often as may be reasonably requested. 
 (c) Such Loan Party (either itself or through licensees) will, for each work covered by a Copyright material to the conduct of its business, continue to
publish, reproduce, display, adopt and distribute the work with appropriate copyright notice. 
 (d) Such Loan Party shall promptly notify
the Collateral Agent if it knows or has reason to know that any Patent, Trademark or Copyright (or any application or registration relating thereto) material to the conduct of its business may become abandoned or dedicated to the public, or of any
adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court,
other than ordinary course United States Patent and Trademark Office actions) regarding such Loan Party’s ownership of any Patent, Trademark, Copyright or Software material to the conduct of its business, its right to register the same or to
keep, use or maintain the same. 
  

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 (e) Such Loan Party will take all commercially reasonable steps to file, maintain and pursue each
application relating to the Patents, Trademarks and/or Copyrights (and to obtain the relevant grant or registration) material to the conduct of its business and to preserve and maintain all common law rights in any Trademarks and each registration
of the Patents, Trademarks and Copyrights material to the conduct of its business, including filing and paying fees for applications for renewal, reissues, divisions, continuations, continuations-in-part, affidavits of use, affidavits of
incontestability and maintenance, and, unless such Loan Party shall reasonably determine that any such action would be of negligible economic value, to initiate opposition, interference, reexamination and cancellation proceedings against third
parties. 
 (f) If any rights to any Patent, Trademark, Copyright, Software or License relating thereto material to the conduct of its
business is believed infringed, misappropriated, breached or diluted by a third party, such Loan Party shall notify the Collateral Agent promptly after it learns thereof and shall, unless such Loan Party shall reasonably determine that any such
action would be of negligible economic value, promptly take such action as is consistent with past practice of such Loan Party to enforce its rights and to recover any and all damages for such infringement, misappropriation or dilution, and take
such other actions as such Loan Party shall reasonably deem appropriate under the circumstances to protect such Patent, Trademark, Copyright, Software or License. 
 (g) Within 45 days after the end of each fiscal quarter of DRI, each Loan Party will (i) inform the Collateral Agent of all applications for Patents, Trademarks or Copyrights filed during such fiscal quarter by
such Loan Party or by any agent, employee, licensee or delegate on its behalf with the United States Patent and Trademark Office or the United States Copyright Office or any office or agency in any political subdivision of the United States or in
any other country or any political subdivision thereof and (ii) upon request of the Collateral Agent, execute any and all agreements, instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Security
Interests in such application, any resulting Patent, Trademark or Copyright and the goodwill or accounts and general intangibles of such Loan Party relating thereto or represented thereby, and such Loan Party hereby appoints the Collateral Agent its
attorney-in-fact to execute and file such writings for the foregoing purposes. 
 (h) As to all material Licenses (excluding non-exclusive
Licenses of Software) entered into after the date hereof with any third party licensor, such Loan Party will use commercially reasonable and good faith efforts to obtain all requisite consents or approvals by the licensor to effect the grant of
security interest in all of such Loan Party’s right, title and interest thereunder to the Collateral Agent or its designee and to effect the sub-license contemplated under Section 5.02(e) hereof upon and during the continuance of an
Event of Default, and such Loan Party shall provide immediate written notice to the Collateral Agent upon failure to obtain any such consent or approval. 
  

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 (i) Such Loan Party shall take all actions (and cause all other Persons, including licensees, to the
extent such other Persons are subject to its control) which are necessary or advisable to protect, preserve and confirm the validity, priority, perfection or enforcement of the rights granted to the Collateral Agent under this Agreement and give the
Collateral Agent prompt written notice if, after the date hereof, such Loan Party shall obtain rights to any Trademarks, Patents or Copyrights, or enter into any new license agreements material to the conduct of its business, regarding any of the
foregoing, and such Loan Party hereby agrees that the provisions of this Agreement shall automatically apply thereto. Such Loan Party will use commercially reasonable efforts so as not to permit the inclusion in any contract or agreement governing
or relating to any Trademarks, Patents or Copyrights obtained after the date hereof or any license agreements entered into after the date hereof relating to any of the foregoing of any provisions that would impair or prevent the creation of a
security interest in, or the assignment of, such Loan Party’s rights and interests therein. Such Loan Party will, upon request of the Collateral Agent, execute and file any and all agreements, instruments, documents and papers as the Collateral
Agent may reasonably request to evidence or perfect the Security Interests in any Patent, Trademark or Copyright (or application therefor) and the goodwill or accounts and general intangibles of such Loan Party relating thereto or represented
thereby, and such Loan Party, without limiting its obligation to itself take such action, hereby appoints the Collateral Agent its attorney-in-fact to execute and file such writings for the foregoing purposes. 
 Section 4.13 Deposit Accounts and Securities Accounts. No Loan Party shall establish after the date hereof or permit to exist any Deposit Account
(other than Exempt Deposit Accounts, Operating Accounts, Individual Store Accounts or Excluded Deposit Accounts) or any Securities Account (except any such account maintained with the Collateral Agent or constituting Collateral Accounts) without
promptly delivering to the Collateral Agent a fully executed Account Control Agreement with respect to such account. Subject to Section 2.04(b) hereof and the rights of the Collateral Agent under Article V hereof, each Loan
Party shall cause all Proceeds of Collateral hereunder to be deposited in a Deposit Account maintained with the Collateral Agent or with respect to which an effective Account Control Agreement has been delivered to the Collateral Agent. No Loan
Party shall permit the aggregate amount of overnight funds on deposit in all Individual Store Accounts to exceed $500,000 at any time. The Collateral Agent shall not give notice and take sole possession and control of any amounts on deposit in or
credited to any Deposit Account or Securities Account pursuant to the related Account Control Agreement until an Event of Default shall have occurred and be continuing. 
 Section 4.14 Electronic Chattel Paper. Such Loan Party shall create, store and otherwise maintain all records comprising electronic Chattel Paper in a manner such that: (i) a single authoritative copy of
each such record exists which is unique, identifiable and, except as provided in clause (iv) below, unalterable, (ii) the authoritative copy of each such record shall identify the Collateral Agent as the assignee thereof,
(iii) the authoritative copy of each such record is communicated to and maintained by the Collateral Agent or its designee, (iv) copies or revisions that add or change any assignees of such record can be made only with the participation of
the Collateral Agent, (v) each copy (other than the authoritative copy) of such record is readily identifiable as a copy and (vi) any revision of the authoritative copy of such record is readily identifiable as an authorized or
unauthorized revision. 
  

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 Section 4.15 Claims. In the event any Claim in excess of $1,000,000 arises or otherwise becomes
known after the date hereof, the applicable Loan Party will deliver to the Collateral Agent a supplement to Schedule 1.01 hereto describing such Claim and expressly subjecting such Claim, all Judgments and/or Settlements with respect
thereto and all Proceeds thereof to the Security Interests hereunder. 
 Section 4.16 After-Acquired Property. Such Loan Party will
use all commercially reasonable efforts to ensure that any material contract or agreement entered into after the Issue Date relating to any Collateral will not contain provisions that would impair or prevent the creation of a Security Interest
therein or result in such contract or agreement being an Excluded Contract. 
 ARTICLE V 
 GENERAL AUTHORITY; REMEDIES 
 Section
5.01 General Authority. Each Loan Party hereby irrevocably appoints the Collateral Agent and any officer or agent thereof as its true and lawful attorney-in-fact, with full power of substitution, in the name of such Loan Party, the Collateral
Agent, the Finance Parties or otherwise, for the sole use and benefit of the Collateral Agent and the Finance Parties, but at such Loan Party’s expense, to the extent permitted by Law and subject to the Intercreditor Agreement and the
Collateral Agency Agreement, to exercise at any time and from time to time while an Event of Default has occurred and is continuing all or any of the following powers with respect to all or any of the Collateral, all acts of such attorney being
hereby ratified and confirmed; such power, being coupled with an interest, is irrevocable until the Finance Obligations are paid in full and until there is no commitment by any Finance Party to make further advances, incur obligations or otherwise
give value: 
 (i) to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or
desirable to carry out the terms of this Agreement; 
 (ii) to receive, take, endorse, assign and deliver any and all checks, notes, drafts,
acceptances, documents and other negotiable and non-negotiable Instruments taken or received by such Loan Party as, or in connection with, Collateral; 
 (iii) to accelerate any Receivable which may be accelerated in accordance with its terms, and to otherwise demand, sue for, collect, receive and give acquittance for any and all monies due or to become due on or by
virtue of Collateral; 
  

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 (iv) to commence, settle, compromise, compound, prosecute, defend or adjust any Claim, suit, action or
proceeding with respect to, or in connection with, the Collateral; 
 (v) to sell, transfer, assign or otherwise deal in or with the
Collateral or the Proceeds or avails thereof, including, without limitation, for the implementation of any assignment, lease, License, sublicense, grant of option, sale or other disposition of any Patent, Trademark, Copyright or Software or any
action related thereto, as fully and effectually as if the Collateral Agent were the absolute owner thereof; 
 (vi) to extend the time of
payment of any or all of the Collateral and to make any allowance and other adjustments with respect thereto; and 
 (vii) to do, at its
option, but at the expense of such Loan Party, at any time or from time to time, all acts and things which the Collateral Agent deems necessary to protect or preserve the Collateral and to realize upon the Collateral. 
 Section 5.02 Remedies upon Event of Default. 
 (a) If any Event of Default has occurred and is continuing, the Collateral Agent may, subject to the Intercreditor Agreement and the Collateral Agency Agreement, in addition to all other rights and remedies granted to it in this Agreement
and any other agreement securing, evidencing or relating to the Finance Obligations: (i) exercise on behalf of the Finance Parties all rights and remedies of a secured party under the UCC (whether or not in effect in the jurisdiction where such
rights are exercised) and, in addition, (ii) without demand of performance or other demand or notice of any kind (except as herein provided or as may be required by mandatory provisions of Law) to or upon any Loan Party or any other Person (all
of which demands and/or notices are hereby waived by each Loan Party), (A) withdraw all cash and Liquid Investments in the Collateral Accounts and apply such cash and Liquid Investments and other cash, if any, then held by it as Collateral as
specified in Section 5.04, (B) give notice and take sole possession and control of all amounts on deposit in or credited to any Deposit Account or Securities Account pursuant to the related Account Control Agreement and apply all
such funds as specified in Section 5.04 hereof and (C) if there shall be no such cash, Liquid Investments or other amounts or if such cash, Liquid Investments and other amounts shall be insufficient to pay all the Finance
Obligations in full or cannot be so applied for any reason or if the Collateral Agent determines to do so, collect, receive, appropriate and realize upon the Collateral and/or sell, assign, give an option or options to purchase or otherwise dispose
of and deliver the Collateral (or contract to do so) or any part thereof at public or private sale, at any office of the Collateral Agent or elsewhere in such manner as is commercially reasonable and as the Collateral Agent may deem best, for cash,
on credit or for future delivery, without assumption of any credit risk and at such price or prices as the Collateral Agent may deem satisfactory. 
  

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 (b) The Collateral Agent shall give each Loan Party not less than 10 days’ prior notice of the time
and place of any sale or other intended disposition of any of the Collateral, except any Collateral which is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market. Any such notice shall
(i) in the case of a public sale, state the time and place fixed for such sale, (ii) in the case of a private sale, state the day after which such sale may be consummated, (iii) contain the information specified in UCC
Section 9-613, (iv) be authenticated and (v) be sent to the parties required to be notified pursuant to Section 9-611(c) of the UCC; provided that, if the Collateral Agent fails to comply with this sentence in any respect, its
liability for such failure shall be limited to the liability (if any) imposed on it as a matter of law under the UCC. The Collateral Agent and each Loan Party agree that such notice constitutes reasonable notification within the meaning of
Section 9-611 of the UCC. Except as otherwise provided herein, each Loan Party hereby waives, to the extent permitted by applicable Law, notice and judicial hearing in connection with the Collateral Agent’s taking possession or disposition
of any of the Collateral. 
 (c) The Collateral Agent or any Finance Party may be the purchaser of any or all of the Collateral so sold at
any public sale (or, if the Collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations, at any private sale). Each Loan Party will execute and deliver such
documents and take such other action as the Collateral Agent deems necessary or advisable in order that any such sale may be made in compliance with Law. Upon any such sale, the Collateral Agent shall have the right to deliver, assign and transfer
to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the Collateral so sold to it absolutely and free from any claim or right of whatsoever kind. Any such public sale shall be held at such time or times within
ordinary business hours and at such place or places as the Collateral Agent may fix in the notice of such sale. At any such sale, the Collateral may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may determine. The
Collateral Agent shall not be obligated to make any such sale pursuant to any such notice. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the same may be so adjourned without further notice. In the case of any sale of all or any part of the Collateral on credit or for future
delivery, the Collateral so sold may be retained by the Collateral Agent until the selling price is paid by the purchaser thereof, but the Collateral Agent shall not incur any liability in the case of the failure of such purchaser to take up and pay
for the Collateral so sold and, in the case of any such failure, such Collateral may again be sold upon like notice. 
 (d) For the purpose
of enforcing any and all rights and remedies under this Agreement, the Collateral Agent may, subject to the Intercreditor Agreement, if any Event of Default has occurred and is continuing, (i) require each Loan Party to, and each Loan Party
agrees that it will, at its expense and upon the request of the Collateral Agent, forthwith assemble, store and keep all or any part of the Collateral as directed by the Collateral Agent and make it available at a place designated by the Collateral
Agent which is, in the Collateral Agent’s opinion, reasonably convenient to the Collateral Agent 

  

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and such Loan Party, whether at the premises of such Loan Party or otherwise, it being understood that such Loan Party’s obligation so to deliver the
Collateral is of the essence of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction, the Collateral Agent shall be entitled to a decree requiring specific performance by such Loan Party of such obligation;
(ii) to the extent permitted by applicable Law, enter, with or without process of law and without breach of the peace, any premise where any of the Collateral is or may be located, and without charge or liability to any Loan Party, seize and
remove such Collateral from such premises; (iii) have access to and use such Loan Party’s books and records relating to the Collateral; and (iv) prior to the disposition of the Collateral, store or transfer it without charge in or by
means of any storage or transportation facility owned or leased by such Loan Party, process, repair or recondition it or otherwise prepare it for disposition in any manner and to the extent the Collateral Agent deems appropriate and, in connection
with such preparation and disposition, use without charge any Intellectual Property or technical process used by such Loan Party. The Collateral Agent may also render any or all of the Collateral unusable at any Loan Party’s premises and may
dispose of such Collateral on such premises without liability for rent or costs. 
 (e) Without limiting the generality of the foregoing, if
any Event of Default has occurred and is continuing: 
 (i) the Collateral Agent may (subject to the express terms of any
valid and enforceable restriction in favor of a Person who is not a Group Company that prohibits, requires any consent, or establishes any other conditions for, a license thereof) license, or sublicense, whether general, special or otherwise, and
whether on an exclusive (if consistent with past business practices) or non-exclusive basis, any Patents, Trademarks or Copyrights included in the Collateral throughout the world for such term or terms, on such conditions and in such manner as the
Collateral Agent shall in its sole and commercially reasonable discretion determine; 
 (ii) the Collateral Agent may (without
assuming any obligations or liability thereunder), at any time and from time to time, enforce (and shall have the exclusive right to enforce) against any Licensee or sublicensee all rights and remedies of any Loan Party in, to and under any License
and take or refrain from taking any action under any provision thereof, and each Loan Party hereby releases the Collateral Agent and each of the Finance Parties from, and agrees to hold the Collateral Agent and each of the Finance Parties free and
harmless from and against any claims arising out of, any lawful action so taken or omitted to be taken with respect thereto; 
 (iii) upon request by the Collateral Agent, each Loan Party will use its commercially reasonable efforts to obtain all requisite consents or approvals by the licensor or sublicensor of each License to effect the assignment of all of such
Loan Party’s right, title and interest thereunder to the Collateral Agent or its designee and will execute and deliver to the Collateral Agent a power of attorney, in form and substance reasonably satisfactory to the Collateral Agent, for the
implementation of any lease, assignment, License, sublicense, grant of option, sale or other disposition of a Patent, Trademark or Copyright; and 
  

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 (iv) the Collateral Agent may direct each Loan Party to refrain, in which event each such
Loan Party shall refrain, from using or practicing any Trademark, Patent or Copyright in any manner whatsoever, directly or indirectly, and shall, if requested by the Collateral Agent, change such Loan Party’s name to eliminate therefrom any
use of any Trademark and will execute such other and further documents as the Collateral Agent may request to further confirm this change and transfer ownership of the Trademarks, Patents, Copyrights and registrations and any pending applications
therefor to the Collateral Agent. 
 (f) In the event of any disposition following the occurrence and during the continuance of any Event of
Default of any Patent, Trademark or Copyright pursuant to this Article V, each Loan Party shall supply its know-how and expertise relating to the manufacture and sale of the products or services bearing Trademarks or the products,
services or works made or rendered in connection with or under Patents, Trademarks or Copyrights, and its customer lists and other records relating to such Patents, Trademarks or Copyrights and to the distribution of said products, services or
works, to the Collateral Agent. 
 (g) If any Event of Default has occurred and is continuing, the Collateral Agent, instead of exercising
the power of sale conferred upon it pursuant to this Section 5.02, may proceed by a suit or suits at law or in equity to foreclose the Security Interests and sell the Collateral, or any portion thereof, under a judgment or decree of a
court or courts of competent jurisdiction, and may in addition institute and maintain such suits and proceedings as the Collateral Agent may deem appropriate to protect and enforce the rights vested in it by this Agreement. 
 (h) If any Event of Default has occurred and is continuing, the Collateral Agent shall, to the extent permitted by applicable Law, without notice to any
Loan Party or any party claiming through any Loan Party, without regard to the solvency or insolvency at such time of any Person then liable for the payment of any of the Finance Obligations, without regard to the then value of the Collateral and
without requiring any bond from any complainant in such proceedings, be entitled as a matter of right to the appointment of a receiver or receivers (who may be the Collateral Agent) of the Collateral or any part thereof, and of the profits, revenues
and other income thereof, pending such proceedings, with such powers as the court making such appointment shall confer, and to the entry of an order directing that the profits, revenues and other income of the property constituting the whole or any
part of the Collateral be segregated, sequestered and impounded for the benefit of the Collateral Agent and the Finance Parties, and each Loan Party irrevocably consents to the appointment of such receiver or receivers and to the entry of such
order. 
 (i) Each Loan Party agrees, to the extent it may lawfully do so, that it will not at any time in any manner whatsoever claim or
take the benefit or advantage of, any appraisal, valuation, stay, extension, moratorium, turnover or redemption law, or any Law permitting it to direct the order in which the Collateral shall be sold, now or at any time hereafter in force which may
delay, prevent or otherwise affect the performance or enforcement of this Agreement, and each Loan Party hereby waives all benefit or advantage of all such Laws. Each Loan Party covenants that it will not hinder, delay or impede the execution of any
power granted to the Collateral Agent or any other Finance Party in any Finance Document. 
  

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 (j) Each Loan Party, to the extent it may lawfully do so, on behalf of itself and all who claim through
or under it, including, without limitation, any and all subsequent creditors, vendees, assignees and lienors, waives and releases all rights to demand or to have any marshalling of the Collateral upon any sale, whether made under any power of sale
granted herein or pursuant to judicial proceedings or under any foreclosure or any enforcement of this Agreement, and consents and agrees that all of the Collateral may at any such sale be offered and sold as an entirety. 
 (k) Each Loan Party waives, to the extent permitted by Law, presentment, demand, protest and any notice of any kind (except the notices expressly
required hereunder or in the other Finance Documents) in connection with this Agreement and any action taken by the Collateral Agent with respect to the Collateral. 
 Section 5.03 Limitation on Duty of Collateral Agent in Respect of Collateral. Beyond the exercise of reasonable care in the custody thereof, neither the Collateral Agent nor the Finance Parties shall have any
duty to exercise any rights or take any steps to preserve the rights of any Loan Party in the Collateral in its or their possession or control or in the possession or control of any agent or bailee or any income thereon or as to the preservation of
rights against prior parties or any other rights pertaining thereto, nor shall the Collateral Agent or any Finance Party be liable to any Loan Party or any other Person for failure to meet any obligation imposed by Section 9-207 of the UCC or
any successor provision. Each Loan Party agrees that the Collateral Agent shall at no time be required to, nor shall the Collateral Agent be liable to any Loan Party for any failure to, account separately to any Loan Party for amounts received or
applied by the Collateral Agent from time to time in respect of the Collateral pursuant to the terms of this Agreement. Without limiting the foregoing, the Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property, and shall not be liable or responsible for any loss or damage to any of the
Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee selected by the Collateral Agent in good faith. 
 Section 5.04 Application of Proceeds. 
 (a) Priority of Distributions. The proceeds of any sale of, or other realization upon, all or any part of the Collateral and any cash held in the Collateral Accounts shall be applied as set forth in Section 4.06 of the
Collateral Agency Agreement, subject in all cases to the priorities set forth in the Intercreditor Agreement. The Collateral Agent may make distributions hereunder in cash or in kind or, on a ratable basis, in any combination thereof. 
  

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 (b) Deficiencies. It is understood that the Loan Parties shall remain liable to the extent of any
deficiency between the amount of the proceeds of the Collateral and the amount of the Finance Obligations. 
 ARTICLE VI 
 COLLATERAL AGENT 
 Section 6.01
[Reserved]. 
 Section 6.02 Concerning the Collateral Agent. The provisions of Article VI of the Collateral Agency
Agreement shall inure to the benefit of the Collateral Agent in respect of this Agreement and shall be binding upon all Loan Parties, all Finance Parties and upon the parties hereto in such respect. In furtherance and not in derogation of the
rights, privileges and immunities of the Collateral Agent therein set forth: 
 (i) The Collateral Agent is authorized to take all such
action as is provided to be taken by it as Collateral Agent hereunder and all other action reasonably incidental thereto. As to any matters not expressly provided for herein or as to any matters which permit but do not require action by the
Collateral Agent (including, without limitation, the timing and methods of realization upon the Collateral), the Collateral Agent shall act or refrain from acting in accordance with written instructions from the Directing Creditors as contemplated
by the Collateral Agency Agreement or, in the absence of such instructions or provisions, subject to the terms of the Collateral Agency Agreement, in accordance with its discretion. 
 (ii) The Collateral Agent shall not be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection,
priority or enforceability of the Security Interests in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder unless such action or omission constitutes gross negligence or
willful misconduct. The Collateral Agent shall have no duty to ascertain or inquire as to the performance or observance of any of the terms of this Agreement or any Finance Document by any Loan Party. 
 Section 6.03 Appointment of Co-Collateral Agent. At any time or times, in order to comply with any legal requirement in any jurisdiction, the
Collateral Agent may in consultation with DRI and, unless an Event of Default shall have occurred and be continuing, with its consent (not to be unreasonably withheld or delayed) appoint another bank or trust company or one or more other persons,
either to act as co-agent or co-agents, jointly with the Collateral Agent, or to act as separate agent or agents on behalf of the Finance Parties with such power and authority as may be necessary for the effectual operation of the provisions hereof
and may be specified in the instrument of appointment (which may, in the discretion of the Collateral Agent, include provisions for the protection of such co-agent or separate agent). Notwithstanding any such appointment but only to the extent not
inconsistent with such legal requirements or, in the reasonable 
  

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judgment of the Collateral Agent, not unduly burdensome to it or any such co-agent, such Loan Party shall, so long as no Event of Default shall have occurred
and be continuing, be entitled to deal solely and directly with the Collateral Agent rather than any such co-agent in connection with the Collateral Agent’s rights and obligations under this Agreement. 
 ARTICLE VII 
 MISCELLANEOUS 

 Section 7.01 Notices. (a) Unless otherwise specified herein, all notices, requests or other communications to any party
hereunder shall be in writing (including by facsimile transmission) and mailed, faxed or delivered to the address or facsimile number: (i) in the case of Holdings, DRI, Duane Reade, any Subsidiary Guarantor or any Noteholder or the Trustee, as
set forth in Section 13.02 of the Indenture, (ii) in the case of any Term Loan Agent or Term Lender named in any Term Loan Agreement, as set forth in the relevant provision of any such Term Loan Agreement, (iii) in the case of
the Collateral Agent, as set forth on the signature pages hereof, (iv) in the case of any Swap Creditor, as set forth in the applicable Swap Agreement or (v) in the case of any party, to such other address, facsimile number or electronic
mail address as such party shall hereafter specify for the purpose of communications hereunder by notice to the other parties hereto. Each such notice, request or other communication shall be effective upon the earlier to occur of (i) actual
receipt by the intended recipient and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the intended recipient, (B) if delivered by mail, four Business Days after deposit in the mails, postage prepaid and
(C) if delivered by facsimile, when sent and receipt has been confirmed electronically. Rejection or refusal to accept, or the inability to deliver because of a changed address of which no notice was given shall not affect the validity of
notice given in accordance with this Section. 
 (b) This Agreement may be transmitted and/or signed by facsimile and, if so transmitted or
signed shall, subject to requirements of Law, have the same force and effect as a manually-signed original and shall be binding on all Loan Parties and the Finance Parties. The Collateral Agent may also require that this Agreement be confirmed by a
manually-signed original hereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. 
 Section 7.02 No Waivers; Non-Exclusive Remedies. No failure or delay on the part of any Finance Party to exercise, no course of dealing with
respect to, and no delay in exercising, any right, power or privilege under this Agreement or any other Finance Document or any other document or agreement contemplated hereby or thereby and no course of dealing between any Finance Party and any of
the Loan Parties shall operate as a waiver thereof nor shall any single or partial exercise of any such right, power or privilege hereunder or under any Finance Document preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder or thereunder. The rights and remedies provided herein and in the other Finance Documents 
  

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are cumulative and are not exclusive of any other remedies provided by Law. Without limiting the foregoing, nothing in this Agreement shall impair the right
of any Finance Party to exercise any right of set-off or counterclaim it may have and to apply the amount subject to such exercise to the payment of indebtedness of any Loan Party other than its indebtedness under the Finance Documents. Each Loan
Party agrees, to the fullest extent it may effectively do so under applicable Law, that any holder of a participation in a Finance Obligation, whether or not acquired pursuant to the terms of any applicable Finance Document, may exercise rights of
set-off or counterclaim or other rights with respect to such participation as fully as if such holder of a participation were a direct creditor of the Loan Party in the amount of such participation. 
 Section 7.03 Compensation and Expenses of the Collateral Agent; Indemnification. 
 (a) Expenses. The Loan Parties, jointly and severally, agree to pay (i) all reasonable out-of-pocket expenses of the Collateral Agent,
including fees and disbursements of special and local counsel for the Collateral Agent, in connection with the preparation and administration of this Agreement or any document or agreement contemplated hereby, any waiver or consent hereunder or any
amendment hereof or any Default or alleged Default, (ii) all taxes which the Collateral Agent or any other Finance Party may be required to pay by reason of the security interests granted in the Collateral (including any applicable transfer
taxes) or to free any of the Collateral from the lien thereof, and (iii) if an Event of Default or any payment default (after the expiration of any applicable grace period) under any Swap Agreement occurs, all out-of-pocket expenses incurred by
the Trustee under the Indenture, a Term Loan Agent under any Term Loan Agreement and, in the case of a Swap Agreement, the relevant Finance Party, including (without duplication) the fees and disbursements of counsel, in connection with such Event
of Default and collection, bankruptcy, insolvency and other enforcement proceedings resulting therefrom. 
 (b) Protection of
Collateral. If any Loan Party fails to comply with the provisions of any Finance Document, such that the value of any Collateral or the validity, perfection, rank or value of any Security Interest is thereby diminished or potentially diminished
or put at risk, after notice to such Loan Party (unless in the reasonable judgment of the Collateral Agent, the giving of such notice would be impractical) the Collateral Agent may, but shall not be required to, effect such compliance on behalf of
such Loan Party, and the Loan Parties shall reimburse the Collateral Agent for the costs thereof within 30 days of receipt of a reasonably detailed written invoice therefor. All insurance expenses and all expenses of protecting, storing,
warehousing, appraising, handling, maintaining and shipping the Collateral, or in respect of the sale or other disposition thereof, including any and all excise, property, sales and use taxes imposed by any state, federal or local authority on any
of the Collateral, or in respect of periodic appraisals and inspections of the Collateral, shall be borne and paid by the Loan Parties. If any Loan Party fails to promptly pay any portion thereof when due, the Collateral Agent may, at its option,
but shall not be required to, after notice to such Loan Party (unless in the reasonable judgment of the Collateral Agent, the giving of such notice would be impractical) pay the same and charge the Loan Parties’ account therefor, 

  

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and the Loan Parties agree to reimburse the Collateral Agent therefor on demand. All sums so paid or incurred by the Collateral Agent for any of the
foregoing and any and all other sums for which any Loan Party may become liable hereunder and all costs and expenses (including attorneys’ fees, legal expenses and court costs) reasonably incurred by the Collateral Agent or any Finance Party in
enforcing or protecting the Security Interests or any of their rights or remedies under this Agreement, shall, together with interest thereon from demand and until paid at the rate applicable to interest at the highest rate applicable under the
Finance Documents in respect of overdue obligations, be additional Finance Obligations hereunder. 
 (c) Indemnification. Each Loan
Party agrees to indemnify the Collateral Agent, each other Finance Party and their respective Affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact and their respective successors and assigns (each, an
“Indemnitee” and, collectively, “Indemnitees”) and hold each Indemnitee harmless 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 any other Collateral Document or in any other way connected with the enforcement of any of the
terms of, or the preservation of any rights under, this Agreement or any other Collateral Document or in any way relating to or arising out of the manufacture, ownership, ordering, purchasing, delivery, control, acceptance, lease, financing,
possession, operation, condition, sale, return or other disposition or use of the Collateral (including, without limitation, latent or other defects, whether or not discoverable), the violation of the Laws of any country, state or other Governmental
Authority, or any tort (including, without limitation, any claims, arising or imposed under the doctrine of strict liability, or for or on account of injury to or the death of any Person (including any Indemnitee), or property damage) or contract
claim; provided that no Indemnitee shall have the right to be indemnified hereunder for such Indemnitee’s own gross negligence or willful misconduct or that of its affiliates, directors, trustees, agents or employees as determined by a court of
competent jurisdiction in a final, non-appealable judgment or order. Each Loan Party agrees that upon written notice by any Indemnitee of the assertion of such a liability, obligation, loss, damage, penalty, claim, demand, action, judgment or suit,
such Loan Party shall assume full responsibility for the defense thereof. Each Indemnitee agrees to use its best efforts to notify the Loan Parties of any such assertion of which such Indemnitee has knowledge. 
 (d) Contribution. If and to the extent that the obligations of any Loan Party under this Section 7.03 are unenforceable for any
reason, each Loan Party hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable Law. 
 (e) Obligations; Survival. Any amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Finance Obligations. The indemnity obligations of the Loan Parties
contained in this Section 7.03 shall continue in full force and effect notwithstanding the full payment of all Finance Obligations and notwithstanding the discharge thereof. 
  

 44 

 Section 7.04 Enforcement. The Finance Parties agree that this Agreement may be enforced only by
the action of the Collateral Agent, acting upon the instructions of the Directing Creditors, if so required under the Collateral Agency Agreement, and that no other Finance Party shall have any right individually to seek to enforce this Agreement or
to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Collateral Agent for the benefit of the Finance Parties upon the terms of this Agreement and the Collateral
Agency Agreement. 
 Section 7.05 Amendments and Waivers. Any provision of this Agreement may be amended, changed, discharged,
terminated or waived if, but only if, such amendment or waiver is in writing and is signed by each Loan Party affected by such amendment, change, discharge, termination or waiver (it being understood that the addition or release of any Loan Party
hereunder shall not constitute an amendment, change, discharge, termination or waiver affecting any Loan Party other than the Loan Party so added or released and it being further understood and agreed that any supplement to Schedule 1.01
delivered pursuant to Section 4.15 hereof shall not require the consent of any Loan Party) and by the Collateral Agent (with the consent of the Directing Creditors, the applicable Swap Representative, the Trustee, or a Term Loan Agent as
the case may be, to the extent required by the Collateral Agency Agreement). 
 Section 7.06 Successors and Assigns. This Agreement
shall be binding upon each of the parties hereto and inure to the benefit of the Collateral Agent and the Finance Parties and their respective successors and assigns. In the event of an assignment of all or any of the Finance Obligations, the rights
hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness. No Loan Party shall assign or delegate any of its rights and duties hereunder without the prior written consent of all of the Finance
Parties. 
 Section 7.07 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED 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, EXCEPT AS OTHERWISE REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE
EXTENT THAT REMEDIES PROVIDED BY THE LAWS OF ANY JURISDICTIONS OTHER THAN NEW YORK ARE GOVERNED BY THE LAWS OF SUCH JURISDICTIONS. 
 Section
7.08 Limitation of Law; Severability. 
 (a) All rights, remedies and powers provided in this Agreement may be exercised only to the
extent that the exercise thereof does not violate any applicable provision of Law, and all the provisions of this Agreement are intended to be subject to 

  

 45 

 
all applicable mandatory provisions of Law which may be controlling and be limited to the extent necessary so that they will not render this Agreement
invalid, unenforceable in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable Law. 
 (b) If any provision hereof is invalid or unenforceable in any jurisdiction, then, to the fullest extent permitted by Law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be
liberally construed in favor of the Finance Parties in order to carry out the intentions of the parties hereto as nearly as may be possible; and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not
affect the validity or enforceability of such provisions in any other jurisdiction. 
 Section 7.09 Counterparts; Effectiveness. This
Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective with respect to each Loan
Party when the Collateral Agent shall receive counterparts hereof executed by itself and such Loan Party. 
 Section 7.10 Additional Loan
Parties. It is understood and agreed that any Affiliate of DRI that is required by any Finance Document to execute a counterpart of this Agreement after the date hereof shall automatically become a Loan Party hereunder with the same force and
effect as if originally named as a Loan Party hereunder by executing an instrument of accession or joinder substantially in the form of Exhibit G hereto and delivering the same to the Collateral Agent. Concurrently with the execution and
delivery of such instrument of accession or joinder, such Affiliate shall take all such actions and deliver to the Collateral Agent all such documents and agreements as such Affiliate would have been required to deliver to the Collateral Agent on or
prior to the date of this Agreement had such Affiliate been a party hereto on the date of this Agreement. Such additional materials shall include, among other things, an opinion of counsel to the extent required under the Indenture or any Term Loan
Agreement and supplements to Schedules 1.01, 3.06 and 4.01 hereto (which Schedules shall thereupon automatically be amended and supplemented to include all information contained in such supplements) such that, after
giving effect to the joinder of such Affiliate, each of Schedules 1.01, 3.06 and 4.01 hereto is true, complete and correct with respect to such Affiliate as of the effective date of such accession or joinder. The execution
and delivery of any such instrument of accession or joinder, and the amendment and supplementation of the Schedules hereto as provided in the immediately preceding sentence, shall not require the consent of any other Loan Party or Finance Party
hereunder. The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party as a party to this Agreement. 
  

 46 

 Section 7.11 Termination; Release of Loan Parties. 
 (a) Termination. Upon the full payment and performance of all Finance Obligations (other than contingent indemnification obligations), the
cancellation or expiration of all outstanding Swap Agreements (or the provision of cash collateral in an amount equal to 100% of the Swap Termination Value thereunder) and the termination of all commitments under the Finance Documents, the Security
Interests shall terminate and all rights to the Collateral shall revert to the Loan Parties. In addition, at any time and from time to time prior to such termination of the Security Interests, the Collateral Agent may release any of the Collateral
or subordinate its Security Interests therein to Liens in favor of certain third parties with the prior written consent of the Directing Creditors or as provided in Article V of the Collateral Agency Agreement. Upon any such termination
of the Security Interests or release of Collateral, the Collateral Agent will, upon request by and at the expense of any Loan Party (and, in the case of a release of Collateral, 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) execute and deliver to such Loan Party such documents as such Loan Party shall reasonably request to evidence the termination
of the Security Interests or the release of such Collateral, as the case may be. Any such documents shall be without recourse to or warranty by the Collateral Agent or the other Finance Parties. The Collateral Agent shall have no liability
whatsoever to any other Finance Party as a result of any release of Collateral by it as permitted by this Section 7.11. Upon any release of Collateral pursuant to this Section 7.11, none of the Finance Parties shall have any
continuing right or interest in such Collateral or the Proceeds thereof. Upon satisfaction and discharge of the Indenture as provided in Article 12 of the Indenture or any similar provision of any other Term Loan Agreement, or legal defeasance
or covenant defeasance of the Indenture as provided in Article 8 of the Indenture or any similar provision of any other Term Loan Agreement, the Note/Term Obligations under the Note Documents and/or the relevant Term Loan Documents, as
applicable, shall be deemed to be paid in full for purposes of Sections 7.04, 7.05 and this Section 7.11(a). 
 (b) Release of Loan Parties. If any part of the Collateral (x) is taken by eminent domain, condemnation or other similar circumstances, or (y) is sold, transferred, otherwise disposed of (other than any such disposition to
another Loan Party) or liquidated in compliance with the requirements of the Finance Documents (or such sale, transfer, other disposition or liquidation has been approved in writing by the Directing Creditors), then in each such case, such
Collateral shall be automatically released from the Security Interests created hereby and the Collateral Agent, at the request and expense of such Loan Party, 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) assign, transfer and deliver to such Loan Party (without recourse and without representation or warranty) such of the Collateral as is
then being (or has been) so taken, sold, transferred, disposed of or liquidated as may be in the possession or control of the Collateral Agent and has not theretofore been released pursuant to this Agreement. Further, upon the release of a Guarantor
from its obligations under all guaranties of the Finance Obligations in accordance with the provisions thereof and the other Finance Documents, such Guarantor (and the Collateral assigned by such Guarantor pursuant hereto) shall be automatically
released from this Agreement and the Collateral Agent will, upon request by and at the expense of such Guarantor, execute and deliver to such Guarantor such documents as such Guarantor shall reasonably request to evidence the release of such
Guarantor and such Collateral. 
  

 47 

 (c) Other Releases. If property that constitutes either (A) all or substantially all of the
Collateral securing Finance Obligations or (B) less than all or substantially all of the Collateral securing Finance Obligations is released with the consent of the Directing Creditors in accordance with the Collateral Agency Agreement, then in
each such case, the Collateral Agent, at the request and expense of such Loan Party, 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) duly release from the security interest created hereby and assign, transfer and deliver to such Loan Party (without recourse and without representation or warranty) such of the Collateral as is then being (or
has been) so released as may be in the possession or control of the Collateral Agent and has not theretofore been released pursuant to this Agreement, and execute and deliver to such Loan Party such documents as such Loan Party may reasonably
request to evidence the release of such Collateral. If, in the case of any or all of the Revolving Lender Priority Collateral, a first priority Lien thereon is released by the Revolving Credit Collateral Agent or as otherwise authorized or directed
by the Revolving Credit Collateral Agent (provided, however, that if a Lien securing obligations under the Revolving Credit Agreement is reinstated on any or all of the Revolving Lender Priority Collateral upon which the Lien securing
Finance Obligations has been released pursuant to this sentence then, the Lien securing the Finance Obligations on such Revolving Lender Priority Collateral will also be deemed reinstated on a second priority basis), such Revolving Lender Priority
Collateral shall be automatically released from the Security Interests created hereby and the Collateral Agent, at the request and expense of such Loan Party, 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) execute and deliver to such Loan Party such documents as such Loan Party may reasonably request to evidence the release of such
Revolving Lender Priority Collateral. In addition, if any Capital Stock or other securities shall, after the Issue Date, meet the criteria of any of clauses (ii), (iv) or (v) of the proviso of Section 2.01,
such Capital Stock or other securities shall automatically be deemed to be released from the Collateral and the Lien of this Agreement and the Collateral Agent shall promptly after receipt of an Officer’s Certificate deliver such Capital Stock
or other securities then in its possession to the applicable Loan Party together with such releases and other documents as may be reasonably requested by such Loan Party. 
 Section 7.12 Entire Agreement. This Agreement and the other Collateral Documents constitute the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and
understandings, oral or written, and any contemporaneous oral agreements and understandings relating to the subject matter hereof and thereof. 
 Section 7.13 Existing Senior Secured Notes. For the avoidance of doubt, this Agreement and the security interest granted herein shall not be construed to secure the Existing Senior Secured Notes. 
  

 48 

 Section 7.14 Revolving Credit Collateral Agent. Notwithstanding anything herein to the contrary,
until such time as the Revolving Loan Obligations have been irrevocably paid in full and all commitments thereunder terminated, the requirements of this Agreement to endorse, assign, deliver or grant control over Revolving Lender Priority Collateral
to the Collateral Agent shall be deemed satisfied by endorsement, assignment, delivery or granting of control of such Revolving Lender Priority Collateral to the Revolving Credit Collateral Agent for all purposes hereunder. 
 [Signature Pages Follow] 
  

 49 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first written above. 
  

			
	LOAN PARTIES:
	
	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, a New York General Partnership
		
	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:	 	Senior Vice President and Chief Financial Officer

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

					
	COLLATERAL AGENT:
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Collateral Agent

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

					
			
		 	Attention:	 	Susan C. Merker
		 	Telephone:	 	(860) 241-6815
		 	Telecopier:	 	(860) 241-6897

 Schedule 1.01A to Security Agreement 
 SCHEDULE OF CLAIMS 
 Commercial Tort Claims 
 None. 

 Schedule 1.01B to Security Agreement 
 EXCLUDED DEPOSIT ACCOUNTS 
  

			
	 Name of Financial Institution
	  	Account Number:
	 Bank of America
	  	9427728720
	 Bank of America
	  	80241276
	 Bank of America
	  	94277 24201
	 Bank of America
	  	46259 75273
	 Bank of America
	  	4627185139
	 Bank of America
	  	9405189009
	 Bank of America
	  	9427728739

 RESTRICTED DEPOSIT ACCOUNTS 
  

			
	 Name of Financial Institution
	  	Account Number:
	 Bank of America
	  	93928532801

	 Bank of America
	  	93928533872

	 Bank of America
	  	46287 893273

  

	1
	 Blocked Deposit Account for Cash and Currency for the Stores. 

  

	2
	 Blocked Deposit Account for Credit Card Sales from the Stores for Duane Reade. 

  

	3
	 Blocked Deposit Account for third party pharmacy receipts. 

 Schedule 3.04 to Security Agreement 
 CONSENTS 
 A change of ownership or control of Duane Reade, Inc., Duane Reade or other
affiliated entities that hold permits, licenses or registrations with Governmental Authorities or that are parties to provider agreements with Governmental Authorities may trigger reporting obligations. Specifically, the occurrence of a change of
ownership or control (the definitions of which vary pursuant to applicable statutes and regulations) may require the filing of appropriate notifications and applications with Governmental Authorities, including, but not limited to, the following:

  

	 	1.	The Centers for Medicare and Medicaid Services – Medicare Provider Agreement; 

  

	 	2.	The U.S. Drug Enforcement Administration – DEA Registration; 

  

	 	3.	The State of New Jersey Department of Human Services, Division of Medical Assistance and Health Services – Medicaid Provider Agreement; 

  

	 	4.	The State of New Jersey, Department of Law and Public Safety, Division of Public Affairs, Board of Pharmacy – Licensure; 

  

	 	5.	The New York State Medicaid Department – Medicaid Provider Agreement; and 

  

	 	6.	The New York State Education Department, Office of the Professions – Licensure. 

 Schedule 3.05 to Security Agreement 
 SCHEDULE OF DEPOSIT ACCOUNTS 
 AND SECURITIES ACCOUNTS

 Deposit Accounts: 
  

							
	 Entity
	  	 Name of Financial Institution
	  	Account Numbers	  	 Description of Purpose for
 Which Account Is Used

	Duane Reade	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	94051 89009	  	Main Operating Account4
				
	Duane Reade	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	93928 53387	  	Blocked Deposit Account for Credit Card Sales from the Stores*
				
	Duane Reade	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	93928 53280	  	Blocked Deposit Account for Cash and Currency for the Stores*
				
	Duane Reade	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	94277 24201	  	Payroll Controlled Disbursement Account
				
	 Duane Reade
 International, LLC
	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	94277 28739	  	Duane Reade International Operating Account5
				
	Duane Reade	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	8024 1276	  	Accounts Payable Controlled Disbursement Account

  

	4
	 This account is used for payment of the operating costs and expenses of the Loan Parties incurred in the ordinary course of business. The account is funded on a
daily basis by borrowings under the Revolving Loans, and Duane Reade borrows the amount that it estimates the Loan Parties will require on such day plus or minus the amount necessary to maintain a $500,000 cushion in the account to cover the margin
of error on the estimates. After all operating costs and expenses are paid on any given day, the account is expected to contain $500,000 on average. 

  

	5
	 This account is used for payment of the operating costs and expenses of DR International incurred in the ordinary course of business. The account is funded on a
periodic basis through a transfer of funds from the Duane Reade operating account. A minimal balance (less than $50,000) is maintained in this account. 

							
	Duane Reade	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	46259 75273	  	EEOC Settlement Account
				
	Duane Reade	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	46287 89327	  	Blocked Deposit Account for third party pharmacy receipts*
				
	 Duane Reade Realty,
 Inc.
	  	 Bank of America
 101 S. Tryon Street
 Charlotte, NC 28255-0001
	  	94277 287206	  	Account created in connection with creation of Duane Reade Realty, Inc.
				
	 Duane Reade Holdings,
 Inc.
	  	 Bank of America
 Massachusetts
	  	4627185139	  	Duane Reade Holdings, Inc. funding account7

  

	*	Restricted Deposit Account. 

 Securities Accounts: 
 None. 
  

	6
	 No activity on this account since creation in August 1999. 

  

	7
	 This account may be used to hold the proceeds of the equity issuance by Holdings on the senior subordinated notes due 2011 and to make payments on the senior
subordinated notes under the Indenture. This account is expected to be used to receive distributions from Holdings’ subsidiaries and other sources to pay the operating costs and expenses of Holdings incurred in the ordinary course of business.

  

 2 

 Schedule 4.01 to Security Agreement 
 SCHEDULE OF FILINGS TO BE MADE 
 TO PERFECT SECURITY INTERESTS

  

													
	 Name of Debtor
	  	 Filing Type
	  	 Finance Document
	  	 State
	  	 Filing Office
	  	Filing Date	  	File Number
	Legal Name of Debtor	  	UCC-1 / UCC-2 / UCC-3: General / ILO / Fixture Filing / Assignment / Name Change / Termination	  	Security/Pledge Agreement (If doing an ILO/ Assignment/Name Change/Termination, put Original File Date and Number here)	  		  		  		  	
							
	DUANE READE HOLDINGS, INC.	  	UCC-1	  	Security Agreement and Pledge Agreement	  	DE	  	Secretary of State	  		  	
							
	DUANE READE, INC.	  	UCC-1	  	Security Agreement and Pledge Agreement	  	DE	  	Secretary of State	  		  	
							
	DUANE READE, a New York general partnership	  	UCC-1	  	Security Agreement and Pledge Agreement	  	NY	  	Department of State of New York	  		  	
							
	DRI I INC.	  	UCC-1	  	Security Agreement and Pledge Agreement	  	DE	  	Secretary of State	  		  	
							
	DUANE READE INTERNATIONAL, LLC	  	UCC-1	  	Security Agreement and Pledge Agreement	  	DE	  	Secretary of State	  		  	
							
	DUANE READE REALTY, INC.	  	UCC-1	  	Security Agreement and Pledge Agreement	  	DE	  	Secretary of State	  		  	

 Exhibit A to Security Agreement 
 Form of Notice of Grant of Security Interest 
 in United States
Patents and Trademarks 
 FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged, [Loan Party
Name], [Loan Party Description] (the “Grantor”), having its chief executive office at [Loan Party Notice Address], hereby grants to [Collateral Agent Name], as Collateral Agent, (the “Grantee”), with offices at
[Collateral Agent Notice Address], a security interest in all of the Grantor’s right, title and interest in, to and under the following (all of the following items or types of property being herein collectively referred to as the
“Patent and Trademark Collateral”), whether presently existing or hereafter arising or acquired: 
 (i) each United States
patent and patent application, including each Patent and Patent Application referred to on Schedule A hereto; 
 (ii) each United States
trademark, trademark registration and trademark application, and all of the goodwill of the business connected with the use of, and symbolized by, each trademark, trademark registration and trademark application, including each Trademark, Trademark
Registration and Trademark Application referred to in Schedule B hereto, but excluding in all cases all intent-to-use United States trademark applications for which an amendment to allege use or statement of use has not been filed under
15 U.S.C. § 1051(c) or 15 U.S.C. § 1051(d), respectively, or if filed, has not been deemed in conformance with 15 U.S.C. § 1051(a) or examined and accepted, respectively, by the United States Patent and Trademark Office provided that
upon such filing and acceptance, such intent-to-use applications shall be included in the definition of Trademark; 
 (iii) all of the
goodwill of the business connected with the use of, and symbolized by, each Trademark; and 
 (iv) all products and proceeds of the
foregoing, including any claim by the Assignor against third parties for past, present or future infringement of any Patent, or past, present or future infringement or dilution of any Trademark or Trademark registration, including any Patent or
Trademark listed on Schedule A or B hereto, or under any Patent or Trademark licensed under any Patent License or Trademark License, including any such License listed on Schedule A or B hereto, or for injury to
the goodwill associated with any Trademark, Trademark registration or Trademark License. 
 This NOTICE OF GRANT OF SECURITY INTEREST (this
“Notice”) is granted in conjunction with the security interests granted to the Grantee pursuant to the Security Agreement among the Grantor, the Grantee and certain other parties dated as of August 7, 2009, as amended,
restated, modified or supplemented from time to time (the “Security Agreement”). Capitalized terms used herein but not otherwise defined herein shall have the meanings set forth in the Security Agreement. 

 This Notice has been granted in conjunction with the security interest granted to the Grantee under the
Security Agreement. The rights and remedies of the Grantee with respect to the security interest granted herein are without prejudice to, and are in addition to those set forth in the Security Agreement, all terms and provisions of which are
incorporated herein by reference. In the event that any provisions of this Notice of Grant of Security Interest are deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall govern. 
  

 2 

 IN WITNESS WHEREOF, the undersigned have executed this Notice of Grant of Security Interest as of the
           day of                 , 20__. 
  

			
	[LOAN PARTY NAME],
		 	as Grantor
		
	By:	 	 
		 	Name:
		 	Title:
	
	[COLLATERAL AGENT NAME],
		 	as Collateral Agent, as Grantee
		
	By:	 	 
		 	Name:
		 	Title:

 STATE OF                 )

                                    : ss. 
             OF                  ) 
 The foregoing instrument was acknowledged before me this
                 day of                 , 20    
by                          as
                 of [LOAN PARTY NAME], [LOAN PARTY DESCRIPTION], on behalf of [LOAN PARTY NAME]. 
 My commission expires: 
 Notarial Seal 
  

	
	  
	Notary Public

  

 3 

 Schedule A to Patent and Trademark Notice of Grant of Security Interest 
 PATENTS AND PATENT APPLICATIONS 
  

											
	 Serial No. or
 Patent No.
	  	Date	  	Issue Title	  	Inventor	  	Country	  	Patent Holder
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	

 Schedule B to Patent and Trademark Notice of Grant of Security Interest 
 TRADEMARKS 
  

							
	 Registration No.
	  	Country	  	Issue Date	  	Mark
		  		  		  	
		  		  		  	
		  		  		  	

 TRADEMARK APPLICATIONS 
  

							
	 Serial No.
	  	Country	  	Filing Date	  	Mark
		  		  		  	
		  		  		  	
		  		  		  	

 Exhibit B to Security Agreement 
 Form of Notice of Grant of Security Interest 
 in United States
Copyrights 
 FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged, [Loan Party Name], [Loan
Party Description] (the “Grantor”), having its chief executive office at [Loan Party Notice Address], hereby grants to [Collateral Agent Name], as Collateral Agent, (the “Grantee”), with offices at [Collateral Agent
Notice Address], a security interest in all of the Grantor’s right, title and interest in, to and under the following (all of the following items or types of property being herein collectively referred to as the “Copyright
Collateral”), whether presently existing or hereafter arising or acquired: 
 (i) the United States and foreign
copyrights and any renewals thereof, including each Copyright listed on Schedule A hereto; 
 (ii) all other United
States and foreign copyrights and any renewals thereof; 
 (iii) all registrations and applications for registration of any
such copyright in the United States or any other country, including registrations, recordings, supplemental, derivative or collective work registrations and pending applications for registrations in the United States Copyright Office; and

 (iv) all products, proceeds and related accounts of the foregoing, including any claim by the Assignor against third
parties for past, present or future infringement of any copyright or any copyright licensed under any copyright license, whether registered or not. 
 THIS NOTICE OF GRANT OF SECURITY INTEREST (this “Notice”) is granted in conjunction with the security interests granted to the Grantee pursuant to the Security Agreement among the Grantor, the Grantee and certain other
parties dated as of August 7, 2009, as amended, restated, modified or supplemented from time to time (the “Security Agreement”). Capitalized terms used herein but not otherwise defined herein shall have the meanings set forth
in the Security Agreement. 
 THIS NOTICE has been granted in conjunction with the security interest granted to the Grantee under the
Security Agreement. The rights and remedies of the Grantee with respect to the security interest granted herein are without prejudice to, and are in addition to those set forth in the Security Agreement, all terms and provisions of which are
incorporated herein by reference. In the event that any provisions of this Notice of Grant of Security Interest are deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall govern. 

 IN WITNESS WHEREOF, the undersigned have executed this Notice of Grant of Security Interest as of the
             day of                 , 20__. 
  

			
	[LOAN PARTY NAME],
		 	as Grantor
		
	By:	 	 
		 	Name:
		 	Title:
	
	[COLLATERAL AGENT NAME],
		 	as Collateral Agent, as Grantee
		
	By:	 	 
		 	Name:
		 	Title:

 STATE OF                 )

                                    : ss. 
             OF                  ) 
 The foregoing instrument was acknowledged before me this
                 day of                 , 20    
by                          as
                 of [LOAN PARTY NAME], [LOAN PARTY DESCRIPTION], on behalf of [LOAN PARTY NAME]. 
 My commission expires: 
 Notarial Seal 
  

	
	  
	Notary Public

  

 2 

 Schedule A to Copyright Notice of Grant of Security Interest 
 COPYRIGHTS AND COPYRIGHT APPLICATIONS 
  

							
	 Serial No. or Registration
 No.
	  	Country	  	Issue or Filing Date	  	Description
		  		  		  	
		  		  		  	
		  		  		  	

 Exhibit C-1 to Security Agreement 
 Blocked Account Service Agreement 
 [See attached.] 

 Exhibit C-2 to Security Agreement 
 Form of Deposit Account Control Agreement 
 [Bank Name] (together with it
successors and assigns, the “Bank”) [has entered] [intends to enter] into arrangements with [Loan Party Name], [Loan Party Description] (together with its successors and permitted assigns, the “Loan Party”), [to
provide lockbox processing services for the Loan Party (the “Lockbox”) and, in connection therewith,] the Bank [maintains] [will maintain] for the use of the Loan Party the deposit account listed on Schedule I hereto as the
“Collection Account” (the “Collection Account”). [In addition, the Bank maintains the other deposit accounts used by or on behalf of [the Loan Party] listed on Schedule I hereto as “Operating
Accounts” (collectively, the “Operating Accounts”] and, together with the Collection Account and any other deposit accounts at any time established or maintained at the Bank by or for the benefit of the Loan Party or to
which any funds of the Loan Party are at any time remitted or deposited, but excluding any deposit accounts specifically and exclusively used for payroll, payroll taxes or other employee wage and benefit payments, each a “Deposit
Account” and, collectively, the “Deposit Accounts”). 
 The Loan Party and [Collateral Agent Name]. (together with
its successor or successors in such capacity, the “Collateral Agent”) entered into a Security Agreement dated as of August 7, 2009 (as the same may be amended, supplemented or modified from time to time, the “Security
Agreement”), under which the Loan Party granted a security interest in favor of the Collateral Agent in all right, title and interest of the Loan Party in, to and under: (i) the Deposit Accounts; (ii) all checks, money orders,
drafts, instruments, electronic funds transfers and other items and forms of remittance and all funds and other amounts at any time paid, deposited or credited (whether for collection, provisionally or otherwise), held or otherwise in the possession
or under the control of, or in transit to, the Bank or any agent or custodian thereof for credit to or to be deposited in any Deposit Account; (iii) all funds and cash balances or other amounts in or attributable to any Deposit Account; and
(iv) any and all proceeds of any of the foregoing (the Deposit Accounts and all of such other items of collateral being herein referred to collectively as the “Deposit Account Collateral”) to secure the payment and performance
of the Finance Obligations (as defined in the Security Agreement). Capitalized terms defined or used in the Security Agreement and not otherwise defined herein have, as used herein, the respective meanings provided for therein. 
 The Loan Party desires that the Bank enter into this Deposit Account Control Agreement (as amended, supplemented or modified from time to time, this
“Agreement”) to perfect the security interest of the Collateral Agent in the Deposit Account Collateral, to vest in the Collateral Agent control of the Deposit Accounts and to provide for the rights of the parties under this
Agreement. 

 Accordingly, the parties hereto agree as follows: 
 Section 1. Control by the Collateral Agent. (a) Notwithstanding any other term or provision of this Agreement or any other agreement
between the Bank and the Loan Party or otherwise, the Bank is hereby authorized and directed by the Loan Party to, and the Bank agrees that, until the payment in full of all Finance Obligations and until (i) there is no commitment by any
Finance Party to make further advances, incur obligations or otherwise give value or, if sooner, (ii) the termination of this Agreement in accordance with the terms hereof, the Bank will comply with instructions (within the meaning of
Section 8-102(a)(12) of the UCC) originated by the Collateral Agent directing the disposition of funds from time to time in any Deposit Account or as to any other matters relating to any Deposit Account or any of the other Deposit Account
Collateral without further consent by the Loan Party (which instructions may include the giving of stop payment orders for any items being presented to a Deposit Account for payment). The Bank is hereby irrevocably authorized by the Loan Party to
change the designation of the customer on any Deposit Account to the Collateral Agent upon the request of the Collateral Agent, and the Bank shall so change the customer designation promptly upon such request by the Collateral Agent. 
 (a) In addition, effective upon the receipt by the Bank of written notice from the Collateral Agent that the Collateral Agent is exercising exclusive
control over the Operating Accounts (such notice being referred to as a “Notice of Exclusive Control”), the Bank shall not permit the Loan Party or any of its Affiliates to withdraw any amounts from, to draw upon or to otherwise
exercise any authority or powers with respect to the Operating Accounts and all Deposit Account Collateral related thereto, and the Bank shall not at any such time honor any instructions of the Loan Party or any of its Affiliates with respect to the
Operating Accounts, other than those approved in writing by the Collateral Agent or a court of competent jurisdiction. Until the receipt by the Bank of a Notice of Exclusive Control, the Loan Party shall be entitled to present items drawn on and
otherwise to withdraw or direct the disposition of funds from the Operating Accounts. 
 (b) Upon receipt of notice from the Collateral Agent
from time to time, the Bank shall transfer collected funds from the Deposit Accounts and the Operating Accounts, at the Loan Party’s cost and expense, by wire transfer or by the ACH method (or other means acceptable to the Collateral Agent)
solely to the Collateral Agent’s account, Account No. [INSERT CASH PROCEEDS ACCOUNT NUMBER], Attn: [Agency Services], at the Collateral Agent’s office located at [INSERT COLLATERAL AGENT NOTICE ADDRESS], ABA No. [INSERT CASH PROCEEDS
ACCOUNT ABA NUMBER] or otherwise to the order of the Collateral Agent. 
 Section 2. Maintenance of Deposit Accounts: In addition
to, and not in lieu of, the obligations of the Bank to honor instructions of the Collateral Agent, etc. as agreed in Section 1 hereof, the Bank agrees to maintain the Deposit Accounts as follows: 
 (a) Maintenance of Deposit Accounts Generally. The Bank shall follow its usual operational procedures for the handling of any checks, money
orders, drafts, instruments, electronic funds transfers or other forms of remittance and all funds of the Loan Party received in or for credit or deposit to a Deposit Account and shall maintain a record of all such Deposit Account Collateral.

  

 1 

 (b) Interest. Until such time as the Bank receives a Notice of Exclusive Control delivered by the
Collateral Agent in accordance with Section 1(b) above, the Loan Party may direct the Bank with respect to the retention and/or distribution of interest and other payments on Deposit Account Collateral deposited in or credited to the
Operating Accounts. All interest and other payments on Deposit Account Collateral deposited in or credited to the Collection Account shall be deposited and retained in the Collection Account or otherwise distributed as instructed by the Collateral
Agent. 
 (c) Statements and Confirmations. At such time or times as the Collateral Agent may request, the Bank will promptly report
to the Collateral Agent the amounts received in the Lockbox and amounts held in the Deposit Accounts. Copies of all statements of account, reports, deposit tickets, deposited items, debit and credit advices and records and communications concerning
the Deposit Accounts and/or any Deposit Account Collateral deposited therein or credited thereto shall be sent by the Bank to each of the Loan Party and the Collateral Agent at their respective addresses referred to in Section 6 below.

 (d) Tax Reporting. All items of income, gain, expense and loss recognized in the Deposit Accounts shall be reported to the Internal
Revenue Service and all state and local taxation authorities under the name and taxpayer identification number of the Loan Party. 
 (e)
Notices of Adverse Claims. Upon receipt of notice of any lien, charge or other adverse claim against any Deposit Account Collateral (including any writ, garnishment, judgment, warrant of attachment, execution or similar process), the Bank
will promptly notify the Collateral Agent and the Loan Party thereof. 
 Section 3. No Liability of Bank. This Agreement shall
not subject the Bank to any obligation or liability except as expressly set forth herein. In particular, the Bank shall have no duty to investigate whether the obligations of the Loan Party to the Collateral Agent or any other Finance Party are in
default or whether the Collateral Agent is entitled under the Security Agreement or otherwise to give any instructions or Notice of Exclusive Control. The Bank is fully entitled to rely upon such instructions as it believes in good faith to have
originated from the Collateral Agent (even if such instructions are contrary to or inconsistent with any instructions or demands given by the Loan Party). 
 Section 4. Subordination of Lien; Waiver of Set-Off. If the Bank has or subsequently obtains by agreement, operation of law or otherwise a security interest or other Lien in any Deposit Account or any
Deposit Account Collateral deposited therein or credited thereto, the Bank hereby agrees that such security interest or other Lien shall be subordinate to the security interest of the Collateral Agent. The Deposit Account Collateral will not be
subject to deduction, set-off, banker’s lien or any other right in 

  

 2 

 
favor of any other Person other than the Collateral Agent, except that the Bank may set off (i) all amounts due to the Bank in respect of its customary
fees and expenses for the Deposit Accounts, (ii) the amount of any checks, automated clearinghouse transfers or other forms of remittance that have been credited to any Deposit Account and subsequently returned unpaid and (iii) any
overdrafts arising as a result thereof; provided that the Bank shall first set off for such amounts due to it against funds held in the Operating Accounts before setting off against the Collection Account. 
 Section 5. Representations, Warranties and Covenants of the Bank. The Bank hereby represents, warrants and covenants that: 
 (a) The Bank has established [the Lockbox and] the Deposit Accounts in the name of the Loan Party. [Effective as of the date of this Agreement, the title
of the Collection Account shall be changed to “[Loan Party Name] — [Collateral Agent Name] Collection Account”. Except as provided in the foregoing sentence, the] [The] Bank shall not change the name or account number of any
Deposit Account without the prior written consent of the Collateral Agent. 
 (b) Each Deposit Account is a “deposit
account” as defined in the UCC. 
 (c) Except for the claims and interest of the Collateral Agent and of the Loan Party in the
Deposit Account Collateral, the Bank does not know of any claim to, interest in or adverse claim to, the Lockbox, any Deposit Account or any Deposit Account Collateral deposited therein or credited thereto. 
 (d) There are no other agreements entered into between the Bank and the Loan Party with respect to any Deposit Account or any Deposit Account Collateral
deposited therein or credited thereto, and the Bank has not entered into, and until the termination of this Agreement will not enter into, any agreement with any other Person relating to any Deposit Account and/or any Deposit Account Collateral
deposited therein or credited thereto pursuant to which it has agreed or will agree to comply with instructions originated by such other Person as to the disposition of funds in or from the Deposit Accounts or with respect to any other dealings with
any of the Deposit Account Collateral. 
 (e) The Bank will not agree that any Person other than the Loan Party or the Collateral Agent is
the Bank’s customer with respect to any Deposit Account. 
 (f) This Agreement constitutes a valid and binding agreement of the Bank,
enforceable against the Bank in accordance with its terms. 
 (g) The Bank acknowledges that it holds and will hold possession of the Deposit
Account Collateral consisting of instruments and money as bailee for the Collateral Agent and for the benefit of the Collateral Agent and the Finance Parties. 
  

 3 

 Section 6. Notices. All notices, requests or other communications to any party hereunder
shall be in writing (including facsimile transmission or similar writing) and shall be given to such party: 
  

	 	(i)	in the case of the Collateral Agent, at: 

  

	 	 	[Collateral Agent Notice Address]; 

  

	 	(ii)	in the case of the Loan Party, at: 

  

	 	 	[Loan Party Notice Address]; and 

  

	 	(iii)	in the case of the Bank, at: 

  

	 	 	[Bank Notice Address]. 

 Each such notice, request or
other communication shall be effective (i) if given by facsimile transmission, when transmitted to the facsimile number specified in this paragraph and electronic confirmation of receipt is received, (ii) if given by mail, 48 hours after
such communication is deposited, certified mail, return receipt requested, in the mails with appropriate first class postage prepaid, addressed as aforesaid, or (iii) if given by other means, when delivered at the address specified in this
paragraph. Rejection or refusal to accept, or the inability to deliver because of a changed address of which no notice was given shall not affect the validity of notice given in accordance with this paragraph. 
 Section 7. Indemnification of the Bank. The Loan Party agrees that (i) the Bank is released from any and all liabilities to the Loan
Party arising from the terms of this Agreement and the compliance by the Bank with the terms hereof, except to the extent that such liabilities arise from the Bank’s bad faith, willful misconduct or gross negligence, (ii) neither the Bank
nor the Collateral Agent shall have any liability to the Loan Party for wrongful dishonor of any items as a result of any instructions of the Collateral Agent and (iii) the Loan Party, its successors and permitted assigns shall at all times
indemnify the Bank, its affiliates and the respective directors, officers, trustees, agents and employees of the foregoing (each an “Indemnitee”) and hold each Indemnitee harmless 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, or in any way relating to or arising out of the maintenance, delivery, control, acceptance, possession, return or other disposition of any
Deposit Account or any Deposit Account Collateral on deposit therein or credited thereto, the violation of the Laws of any country, state or other governmental body or unit, or any tort or contract claim; provided that no Indemnitee shall
have the right to be indemnified hereunder for such Indemnitee’s own gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment or order. 
  

 4 

 Section 8. Conflicts with Other Agreements. In the event of any conflict between this
Agreement (or any portion hereof) and any other agreement (including any other agreement between the Bank and the Loan Party with respect to the Deposit Accounts) now existing or hereafter entered into, the terms of this Agreement shall control.

 Section 9. Amendments and Waivers. Any provision of this Agreement may be amended, modified or waived if, but only if, such
amendment or waiver is in writing and is signed by the Loan Party, the Collateral Agent and the Bank. 
 Section 10. Successors and
Assigns. This Agreement shall be binding upon each of the parties hereto and inure to the benefit of the Collateral Agent and the Finance Parties and their respective successors and permitted assigns. In the event of an assignment of all or any
of the Finance Obligations, the rights hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness. 
 Section 11. Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, except as otherwise required by mandatory provisions of Law.
Notwithstanding any provision in any other agreement, for purposes of the UCC, New York shall be deemed to be the Bank’s “jurisdiction” within the meaning of Section 9-304 of the UCC. 
 Section 12. Severability. 
 (a)
All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of Law, and all the provisions of this Agreement are intended to be subject to all
applicable mandatory provisions of Law which may be controlling and be limited to the extent necessary so that they will not render this Agreement invalid, unenforceable in whole or in part, or not entitled to be recorded, registered or filed under
the provisions of any applicable Law. 
 (b) If any provision hereof is invalid or unenforceable in any jurisdiction, then, to the fullest
extent permitted by Law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Collateral Agent and the other Finance Parties in order to carry out the
intentions of the parties hereto as nearly as may be possible; and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provisions in any other jurisdiction.

 Section 13. Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This 

  

 5 

 
Agreement shall become effective when the Collateral Agent shall receive counterparts hereof executed by itself, the Bank and the Loan Party. Delivery of an
executed counterpart of this Agreement by facsimile shall have the same force and effect as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by facsimile shall also
deliver an original executed counterpart, but failure to do so shall not affect the validity, enforceability or binding effect of this Agreement. 
 Section 14. Termination. Except as hereinafter set forth, the obligations of the Bank to the Collateral Agent pursuant to this Agreement shall continue in effect until the Security Interests of the Collateral Agent in the
Deposit Accounts have been terminated pursuant to the terms of the Security Agreement and the Collateral Agent has notified the Bank of such termination in writing. The Collateral Agent agrees to provide such notice of termination upon the request
of the Loan Party on or after the termination of the Collateral Agent’s Security Interest in the Deposit Accounts pursuant to the terms of the Security Agreement. The Bank may terminate this Agreement only upon 30 days’ notice to the
Collateral Agent, by canceling the Deposit Accounts and transferring all funds, if any, deposited in or credited to the Deposit Accounts to another deposit account with another bank to be designated by the Collateral Agent or otherwise to the order
of the Collateral Agent. After any such termination, the Bank shall nonetheless be obligated promptly to transfer to such other bank anything from time to time received in or for credit to the Deposit Account. The termination of this Agreement shall
not terminate any Deposit Account or the Lockbox or alter the obligations of the Bank to the Loan Party pursuant to any other agreement with respect to the Deposit Accounts. 
 [Signature Pages Follow] 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first written above. 
  

									
	LOAN PARTY:	 		 	[LOAN PARTY NAME]
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
				
		 		 		 	[Address]
		 		 		 	Attention:
		 		 		 	Telephone:
		 		 		 	Telecopier:
			
	COLLATERAL AGENT:	 		 	[COLLATERAL AGENT NAME], as Collateral Agent
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
				
		 		 		 	[Address]
		 		 		 	Attention:
		 		 		 	Telephone:
		 		 		 	Telecopier:
			
	DEPOSITARY BANK:	 		 	[DEPOSITARY BANK NAME]
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
				
		 		 		 	[Address]
		 		 		 	Attention:
		 		 		 	Telephone:
		 		 		 	Telecopier:

  

 7 

 Exhibit D to Security Agreement 
 [Reserved] 

 Exhibit E to Security Agreement 
 Form of Description of Collateral 
 Description for Face of UCC-1: 
 All assets now owned or hereafter acquired by Debtor. 

 Exhibit F to Security Agreement 
 Form of Perfection Certificate 
 DUANE READE INC. 
 DUANE READE 
 DRI I INC. 
 DUANE READE REALTY, INC. 
 DUANE READE INTERNATIONAL, LLC 
 DUANE READE HOLDINGS, INC. 
 PERFECTION CERTIFICATE 
 Duane Reade Inc., a Delaware corporation,
(the “Company”), through its chief financial officer and its general counsel, hereby certifies with reference to the Security Agreement dated as of August , 2009 among the Company, Duane Reade Holdings, Inc., Duane Reade, DRI I
Inc., Duane Reade International, LLC, Duane Reade Realty, Inc. and U.S. Bank National Association as Collateral Agent (the “Collateral Agent”) (terms defined therein being used herein as therein defined) to the Collateral Agent and
the Finance Parties as follows: 
  

	I.	Names. 

  

	 	(A)	The exact corporate name of the Company and each other Loan Party as it appears in its certificate of incorporation or other equivalent formation document, is as
follows: 

 Duane Reade Inc. 
 Duane Reade 
 Duane Reade Holdings, Inc. 
 DRI I Inc. 
 Duane
Reade International, LLC 
 Duane Reade Realty, Inc. 
  

	 	(B)	Set forth in Schedule I.B. is each other corporate name the Company and each other Loan Party has had in the past five years, together with the date of the
relevant change. 

  

	 	(C)	 Set forth in Schedule I.C. is a list of all other names (including trade names or similar appellations) used by the Company and each other Loan
Party or any of their divisions, or other business units at any time during the past five years.1 

  

	 	(D)	Except as set forth on Schedule I.D. hereto or Section I(B) or I(C) above, neither the Company nor any of the other Loan Parties have changed their identity or
corporate structure in any way within the past five years. 

  
  

	1	 In the ordinary course of business, upon purchasing a pharmacy, the Company has, and may continue to, use the business name of the acquired entity for
a short period of time after the acquisition. 

  

 2 

	II.	Business Locations/Jurisdiction of Organization. 

  

	 	(A)	The jurisdiction of organization and organization number of the Company and each other Loan Party is set forth in Schedule II.A. 

  

	 	(B)	The chief executive office of the Company and each of the other Loan Parties are located at the address shown on Schedule II.B. hereto.

  

	 	(C)	Each of the Company’s and each of the other Loan Parties’ other places of business are set forth on Schedule II.C. hereto. 

  

	 	(D)	Each other chief executive office and/or location or place(s) of business (other than stores) maintained by the Company and each of the other Loan Parties at any time
during the past five years are set forth on Schedule II.D. hereto. 

  

	III.	Locations and Other Information Regarding Collateral. 

  

	 	(A)	Listed on Schedule III.A. hereto is each address where any of the Company’s and any of the other Loan Parties’ Equipment (other than mobile goods),
Inventory, Instruments, securities certificates (as defined in the UCC), Documents, books or records relating to Accounts or other tangible Collateral are located. 

  

	 	(B)	Listed on Schedule III.B. hereto is the name and address of each Person other than the Company and any of the other Loan Parties which has possession of any of
the Company’s or any of the other Loan Parties’ Equipment (other than mobile goods), Inventory, Instruments, securities certificates (as defined in the UCC), Documents, books and records relating to Accounts or other tangible Collateral.

  

	 	(C)	Listed on Schedule III.C. hereto is the address of each location or bailee where or with whom any of the Company’s and any of the other Loan Parties’
Equipment, Inventory, Instruments, securities certificates (as defined in the UCC), Documents, books and records relating to Accounts or other tangible Collateral has been lodged at any time during the past four months. 

  

	 	(D)	The Company has no interests in unextracted minerals or the like (including oil and gas), assets consisting of timber to be cut or equipment used in farming operations,
farm products, grain or crops growing or to be grown. 

  

	 	(E)	Listed on Schedule III.E. hereto is the name and jurisdiction of organization of each company with respect to which the Company and each of the other Loan
Parties hold securities. 

  

	 	(F)	Listed on Schedule III.F. hereto is the name of each company with respect to which the Company and each of the other Loan Parties hold partnership interests,
limited liability company membership interests or other equity interests not constituting securities (as defined in the UCC). 

  

	 	(G)	The Company and each of the other Loan Parties maintain no Securities Accounts. 

  

	 	(H)	 Listed on Schedule III.H. hereto is the bank or other financial institution and account number of each Deposit Account or other bank account
maintained by the

  

 3 

	 	 
Company and each of the other Loan Parties, together with a description of the purpose for which each such account is used. 

  

	 	(I)	The Company and each of the other Loan Parties have no Inventory consigned to third parties. 

  

	 	(J)	The Company and each of the other Loan Parties have no Inventory located outside of the United States of America. 

  

	 	(K)	Listed on Schedule III.K. hereto are all of the commercial tort claims in favor of the Company and each of the other Loan Parties, including the identity of each
Person party or potentially party to each such claim, the approximate dollar value of each such claim, the nature of the events or circumstances giving rise to each such claim, the date each such claim arose and the history and status of any related
court proceedings and/or settlement negotiations. 

  

	IV.	Unusual Transactions. Except as set forth on Schedule IV hereto, since the date three years prior to the date of the
perfection certificate, all Accounts with a fair market value at the time of origination in excess of $5,000,000 and all Inventory and Equipment with a fair market value at the time of acquisition in excess of $5,000,000 have been originated or
acquired by the Company and each of the other Loan Parties in the ordinary course of business or consist of goods which have been acquired by such Company or a Loan Party in the ordinary course of business from a person in the business of selling
goods of that kind. 

  

	V.	Patents, Trademarks and Copyrights. Listed on Schedule V. hereto is each U.S. and foreign patent and patent application, U.S.
and foreign registered or pending trademark and trademark application, and U.S. and foreign registered copyright and copyright application owned or applied for by the Company and each of the other Loan Parties. 

  

	VI.	Material Contracts. The contracts and agreements specified in Schedule VI hereto are identified as “Assigned
Agreements” under the Security Agreement. 

  

	VII.	Taxpayer Identification Number. The taxpayer identification number for the Company and each of the other Loan Parties are as follows:

  

			
	 Duane Reade Inc.
	  	04-3164702
	 Duane Reade
	  	11-2731721
	 DRI I Inc.
	  	04-3166107
	 Duane Reade Realty, Inc.
	  	13-4074383
	 Duane Reade International, LLC
	  	22-3672347
	 Duane Reade Holdings, Inc.
	  	05-0599589

  

	VIII.	Existing Liens. As of the date hereof, there are no (i) Uniform Commercial Code financing statements naming the Company or any
of the other Loan Parties as debtor or seller and covering any of the Collateral, (ii) notices of the filing of any federal tax lien (filed pursuant to section 6323 of the Code) or any lien of the PBGC (filed pursuant to Section 4068 of
ERISA) covering any of the Collateral or (iii) judgment liens filed against the Company or any of the other Loan Parties, except as set forth on the UCC Search Reports attached hereto as Exhibit A. 

  

 4 

 Date: August     , 2009 
  

			
	DUANE READE INC.
		
	By:	 	 /s/    John K. Henry

	Name:	 	John K. Henry
	Title:	 	 Senior Vice President and
 Chief Financial Officer

		
	By:	 	 /s/    Phillip A. Bradley

	Name:	 	Phillip A. Bradley
	Title:	 	Senior Vice President, General Counsel and Secretary
	
	DUANE READE, a New York general partnership
		
	By:	 	DUANE READE INC., a general partner of Duane Reade
		
	By:	 	 /s/    John K. Henry

	Name:	 	John K. Henry
	Title:	 	Senior Vice President and
		 	Chief Financial Officer
		
	By:	 	 /s/    Phillip A. Bradley

	Name:	 	Phillip A. Bradley
	Title:	 	Senior Vice President, General Counsel and Secretary
		
	By:	 	DRI I INC., a general partner of Duane Reade
		
	By:	 	 /s/    John K. Henry

	Name:	 	John K. Henry
	Title:	 	Treasurer
		
	By:	 	 /s/    Phillip A. Bradley

	Name:	 	Phillip A. Bradley
	Title:	 	Secretary

  

 5 

			
	DUANE READE REALTY, INC.
		
	By:	 	 /s/    John K. Henry

	Name:	 	John K. Henry
	Title:	 	Treasurer
		
	By:	 	 /s/    Phillip A. Bradley

	Name:	 	Phillip A. Bradley
	Title:	 	Secretary
	
	DUANE READE INTERNATIONAL, LLC
		
	By:	 	 /s/    Phillip A. Bradley

	Name:	 	Phillip A. Bradley
	Title:	 	Manager
		
	By:	 	 /s/    Joseph C. Magnacca

	Name:	 	Joseph C. Magnacca
	Title:	 	Manager
	
	DRI I INC.
		
	By:	 	 /s/    John K. Henry

	Name:	 	John K. Henry
	Title:	 	Treasurer
		
	By:	 	 /s/    Phillip A. Bradley

	Name:	 	Phillip A. Bradley
	Title:	 	Secretary
	
	DUANE READE HOLDINGS, INC.
		
	By:	 	 /s/    John K. Henry

	Name:	 	John K. Henry
	Title:	 	 Senior Vice President and
 Chief Financial Officer

		
	By:	 	 /s/    Phillip A. Bradley

	Name:	 	Phillip A. Bradley
	Title:	 	Senior Vice President, General Counsel and
Secretary

  

 6 

 Exhibit G to Security Agreement 
 Form of Loan Party Accession Agreement 
 LOAN PARTY ACCESSION AGREEMENT dated as of                 ,
         among DUANE READE INC, DUANE READE, the NEW LOAN PARTY referred to herein, and U.S. Bank National Association, as Collateral Agent. 
 Duane Reade Inc., a Delaware corporation (together with its successors and permitted assigns, “DRI”), and Duane Reade, a
New York general partnership (together with its successors and permitted assigns, “Duane Reade”), have issued Senior Secured Notes due 2015 (together with any Exchange Notes or any Additional Notes referred to below, the
“Senior Secured Notes”) pursuant to an Indenture dated as of August 7, 2009 (as amended, restated, supplemented or modified from time to time and including any 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 have been guaranteed by Duane Reade Holdings, Inc., a Delaware corporation (together with its successors and permitted assigns, “Holdings”), DRI I Inc., a Delaware corporation (“DRI
I”), Duane Reade International, LLC, a Delaware limited liability company (“DR International”) and Duane Reade Realty, Inc., a Delaware corporation (“DR Realty”), and all other direct and indirect domestic
subsidiaries of Holdings pursuant to the Indenture and the Guaranties and have been secured pursuant to (i) the Security Agreement, dated as of August 7, 2009 among the Loan Parties (as defined below) and U.S. Bank National Association, as
Collateral Agent (the “Security Agreement”) and (ii) the Pledge Agreement, dated as of August 7, 2009, among the Loan Parties and U.S. Bank National Association, as Collateral Agent (the “Pledge
Agreement”). Each of Holdings, DRI, Duane Reade, DRI I, DR International and DR Realty are referred to in the Security Agreement and the Pledge Agreement individually as a “Loan Party” and, collectively, as the
“Loan Parties”). Capitalized terms defined in the Security Agreement and not otherwise defined herein have, as used herein, the respective meanings provided for them therein. 
 [New Loan Party Name], [New Loan Party Description] (the “New Loan Party”), was [formed] [acquired] by [Borrower] [[Name of
Immediate Parent Company], [Description of Immediate Parent Company] and a [Wholly-Owned] Subsidiary of Borrower], [DESCRIBE FORMATION OR ACQUISITION TRANSACTION, AS APPLICABLE]. 
 Section 4.12 of the Indenture requires DRI to cause each Restricted Subsidiary (as such term is defined in the Indenture) formed
or acquired after the Issue Date to become a party to the Security Agreement as an additional “Loan Party” and to become a party to the Pledge Agreement as an additional “Loan Party”. The Security

 
Agreement and the Pledge Agreement specify that such additional Subsidiaries may become “Loan Parties” under each of the Security Agreement and the Pledge Agreement by execution
and delivery of a counterpart of each such Document. From time to time, DRI and Duane Reade may incur additional Indebtedness which it is otherwise permitted to incur under the Indenture in the form of loans or other debt financing pursuant to a
Term Loan Agreement (as defined in the Security Agreement) and, to induce the Noteholders under the Indenture and lenders under the Term Loan Agreement, and as consideration for extensions of credit previously made to, and/or Swap Agreements
previously entered into with, the Loan Parties, the New Loan Party has agreed to execute and deliver this Loan Party Accession Agreement (as the same may be amended, supplemented or modified from time to time, this “Agreement”) in
order to evidence its agreement to become a “Loan Party” under each of the Security Agreement and the Pledge Agreement. Accordingly, the parties hereto agree as follows: 
 Section 1. Security Agreement. In accordance with Section 7.10 of the Security Agreement, the New Loan Party hereby
(i) agrees that, by execution and delivery of a counterpart signature page to the Security Agreement in the form attached hereto as Exhibit A, the New Loan Party shall become a “Loan Party” under the Security
Agreement with the same force and effect as if originally named therein as a Loan Party (as defined in the Security Agreement), (ii) acknowledges receipt of a copy of and agrees to be obligated and bound as a “Loan Party” by
all of the terms and provisions of the Security Agreement, (iii) grants to the Collateral Agent for the benefit of the Finance Parties a continuing security interest in the Collateral (as defined in the Security Agreement), in each case to
secure the full and punctual payment of the Finance Obligations (as defined in the Security Agreement) in accordance with the terms thereof and to secure the performance of all of the obligations of each Loan Party under the Indenture and the other
Finance Documents, (iv) represents and warrants that each of Schedules 1.01, 3.06 and 4.01 to the Security Agreement, as amended, supplemented and modified as set forth on Schedules 1.01, 3.06 and 4.01 hereto, is complete and accurate
with respect to the New Loan Party as of the date hereof after giving effect to the New Loan Party’s accession to the Security Agreement as an additional Loan Party thereunder and (v) acknowledges and agrees that, from and after the date
hereof, each reference in the Security Agreement to a “Loan Party” or the “Loan Parties” shall be deemed to include the New Loan Party. 
 Section 2. Pledge Agreement. In accordance with Section 8.10 of the Pledge Agreement, the New Loan Party hereby (i) agrees that, by execution and delivery of a counterpart signature
page to the Pledge Agreement in the form attached hereto as Exhibit B, the New Loan Party shall become a “Loan Party” under the Pledge Agreement with the same force and effect as if originally named therein as a Loan
Party (as defined in the Pledge Agreement), (ii) acknowledges receipt of a copy of and agrees to be obligated and bound as a “Loan Party” by all of the terms and provisions of the Pledge Agreement, (iii) grants to the
Collateral Agent for the benefit of the Finance Parties a continuing security interest in the Collateral (as defined in the Pledge Agreement), in each case to secure the full and punctual payment of the Finance Obligations (as defined in the Pledge
Agreement) in accordance with the terms thereof and to secure the

  

 2 

 
performance of all of the obligations of each Loan Party under the Indenture and the other Finance Documents, (iv) represents and warrants that each of Schedules I, II, III,
IV, and V to the Pledge Agreement, as amended, supplemented and modified as set forth on Schedules I, II, III, IV, and V hereto, is complete and accurate with respect to the New Loan Party as of the date hereof after giving effect to
the New Loan Party’s accession to the Pledge Agreement as an additional Loan Party thereunder and (v) acknowledges and agrees that, from and after the date hereof, each reference in the Pledge Agreement to a “Loan Party”
or the “Loan Parties” shall be deemed to include the New Loan Party. 
 Section 3. Representations and
Warranties. The New Loan Party hereby represents and warrants that: 
 (a) This Agreement has been duly authorized, executed
and delivered by the New Loan Party, and each of this Agreement and the Security Agreement and the Pledge Agreement, as acceded to hereby by the New Loan Party, constitutes a valid and binding agreement of the New Loan Party, enforceable against the
New Loan Party in accordance with its terms, except in each case as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforceability of creditors’ rights generally and by
equitable principles of general applicability (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 (b) Each of the representations and warranties contained in the Indenture, the Security Agreement, the Pledge Agreement and each of the other Finance Documents applicable to the New Loan Party is true and
correct in all material respects as of the date hereof, with the same effect as though such representations and warranties had been made on and as of the date hereof after giving effect to the accession of the New Loan Party as an additional
“Loan Party” under each of the Security Agreement and the Pledge Agreement. 
 (c) Attached hereto as
Exhibit C is a correct and complete Perfection Certificate relating to the New Loan Party and its Collateral. 
 Section 4. Effectiveness. This Agreement and the accession of the New Loan Party to the Security Agreement and the Pledge Agreement as provided herein shall become effective with respect to the New Loan Party when (i) the
Collateral Agent shall have received a counterpart of this Agreement duly executed by such New Loan Party and (ii) the Collateral Agent, as applicable, shall have received duly executed counterpart signature pages to each of the Security
Agreement and the Pledge Agreement as contemplated hereby. 
 Section 5. Integration; Confirmation. On and after the
date hereof, each of the Security Agreement and the Pledge Agreement and the respective Schedules thereto shall be supplemented as expressly set forth herein; all other terms and provisions of each of the Security Agreement, the Pledge
Agreement, the other Finance Documents and the respective Schedules thereto shall continue in full force and effect and unchanged and are hereby confirmed in all respects. 
  

 3 

 Section 6. Expenses. The New Loan Party agrees to pay (i) all reasonable
out-of-pocket expenses of the Collateral Agent, including reasonable fees and disbursements of special and local counsel for the Collateral Agent, in connection with the preparation, execution and delivery of this Agreement and any document or
agreement contemplated hereby and (ii) all taxes which the Collateral Agent or any Finance Party may be required to pay by reason of the security interests granted in the Collateral (including any applicable transfer taxes). 
 Section 7. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE 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, EXCEPT AS
OTHERWISE REQUIRED BY MANDATORY PROVISIONS OF LAW. 
 Section 8. Counterparts. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may be transmitted and/or signed by facsimile and if so transmitted or signed,
shall, subject to requirements of law, have the same force and effect as a manually signed original and shall be binding on the New Loan Party, the Collateral Agent and the other Finance Parties. The Collateral Agent may also require that this
Agreement be confirmed by a manually signed original hereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. 
 [Signature Page Follows] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

			
	DUANE READE INC.
		
	By:	 	 
		 	Name:
		 	Title:
	
	DUANE READE, a New York General Partnership
		
	By:	 	DUANE READE INC., a General Partner
		
	By:	 	 
		 	Name:
		 	Title:
		
	By:	 	DRI I INC., a General Partner
		
	By:	 	 
		 	Name:
		 	Title:
	
	[NEW LOAN PARTY NAME]
		
	By:	 	 
		 	Name:
		 	Title:
	
	U.S. Bank National Association as Collateral Agent
		
	By:	 	 
		 	Name:
		 	Title:

  

 5 

 EXHIBIT A 
 COUNTERPART TO SECURITY AGREEMENT 
 The undersigned hereby executes this
counterpart to the Security Agreement dated as of August 7, 2009 by the Loan Parties party thereto from time to time in favor of U.S. Bank National Association, as Collateral Agent, and, as of the date hereof, assumes all of the rights and
obligations of a “Loan Party” thereunder. 
 Date:
                 
  

			
	[NEW LOAN PARTY NAME]
		
	By:	 	 
		 	Name:
		 	Title:

  

 6 

 EXHIBIT B 
 COUNTERPART TO PLEDGE AGREEMENT 
 The undersigned hereby executes this counterpart
to the Pledge Agreement dated as of August 7, 2009 by Loan Parties party thereto from time to time in favor of U.S. Bank National Association, as Collateral Agent, and, as of the date hereof, assumes all of the rights and obligations of a
“Loan Party” thereunder. 
 Date:
                 
  

			
	[NEW LOAN PARTY NAME]
		
	By:	 	 
		 	Name:
		 	Title:

  

 7 

 EXHIBIT C 
 PERFECTION CERTIFICATE 
  

 8 

 SCHEDULE 1.01 
 CLAIMS 
  

 9 

 SCHEDULE 3.06 
 DEPOSIT ACCOUNTS AND SECURITIES ACCOUNTS 
 Deposit Accounts:

  

							
	 Name of Loan Party
	  	Name of Financial
Institution	  	Account Number	  	Purpose
		  		  		  	
		  		  		  	
		  		  		  	

 Securities Accounts: 
  

							
	 Name of Loan Party
	  	Name of Financial
Institution	  	Account Number	  	Purpose
		  		  		  	
		  		  		  	
		  		  		  	

  

 10 

 SCHEDULE 4.01 
 SCHEDULE OF FILINGS TO PERFECT SECURITY INTERESTS 
  

													
	 Name of Debtor
	  	Filing Type	  	 Finance Document
	  	State	  	Filing Office	  	Filing Date	  	File Number
	Legal Name of Debtor	  	UCC-1/UCC-2/UCC-3:
General/ILO/Fixture
Filing/Assignment/
Name Change/
Termination	  	Security/Pledge Agreement (If doing an ILO/Assignment/Name Change/Termination, put Original File Date and Number here)	  		  		  		  	

  

 11 

 SCHEDULE I 
 LIST OF PLEDGED SHARES 
 [NEW LOAN PARTY NAME] 
  

													
	 Issuer
	  	Class of Stock	  	Certificate
Number, if
Applicable	  	Par Value	  	Number of
Shares	  	Percentage of
Class
Represented
By Pledged
Shares	  	Type of
Investment
Property
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	

  

 12 

 SCHEDULE II 
 LIST OF PLEDGED NOTES 
 [NEW LOAN PARTY NAME] 
  

									
	 Issuer
	  	Original Principal
Amount	  	Date	  	Maturity Date	  	Type of Investment
Property
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

 13 

 SCHEDULE III 
 LIST OF PLEDGED LLC INTERESTS 
 [NEW LOAN PARTY NAME] 
  

									
	 Issuer
	  	Class of Interest	  	Certificate Numbers, if
Applicable	  	Percentage of Class
Represented by
Pledged LLC Interests	  	Type of Investment
Property
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

 14 

 EXHIBIT G 
 LIST OF PLEDGED PARTNERSHIP INTERESTS 
 [NEW LOAN PARTY NAME] 
  

									
	 Issuer
	  	Class of Interest	  	Certificate Numbers,
if Applicable	  	Percentage of Class
Represented by
Pledged Partnership
Interests	  	Type of Investment
PropertyPledge Agreement

 Exhibit 4.5 
 EXECUTION COPY 
 PLEDGE AGREEMENT 
 dated as of August 7, 2009 
 among 
 THE LOAN PARTIES FROM TIME TO TIME PARTY HERETO 
 and 
 U.S. BANK NATIONAL ASSOCIATION, 
 as Collateral Agent 

 TABLE OF CONTENTS* 
  

					
	  	  	 	  	Page(s)
		
	 ARTICLE I DEFINITIONS
	  	4
			
	 Section 1.01
	  	Defined Terms	  	4
	 Section 1.02
	  	Terms Defined in the UCC	  	4
	 Section 1.03
	  	Additional Definitions	  	4
	 Section 1.04
	  	Terms Generally	  	13
		
	 ARTICLE II THE SECURITY INTERESTS
	  	13
			
	 Section 2.01
	  	Grant of Security Interests	  	13
	 Section 2.02
	  	Security Interests Absolute	  	15
	 Section 2.03
	  	Continuing Liability of the Loan Parties	  	16
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES
	  	17
			
	 Section 3.01
	  	Title to Collateral	  	17
	 Section 3.02
	  	Validity, Perfection and Priority of Security Interests	  	17
	 Section 3.03
	  	Collateral	  	17
	 Section 3.04
	  	No Consents	  	18
		
	 ARTICLE IV COVENANTS
	  	19
			
	 Section 4.01
	  	Delivery of Collateral	  	19
	 Section 4.02
	  	Delivery of Perfection Certificate; Filing of Financing Statements and Delivery of Search Reports	  	19
	 Section 4.03
	  	Change of Name, Identity, Structure or Location; Subjection to Other Security Agreements; Locations of Places of Business and Chief Executive Office	  	19
	 Section 4.04
	  	Further Assurances	  	20
	 Section 4.05
	  	Disposition of Collateral	  	20
	 Section 4.06
	  	Additional Collateral	  	21
	 Section 4.07
	  	Information Regarding Collateral	  	21
		
	 ARTICLE V DISTRIBUTIONS ON COLLATERAL; VOTING
	  	21
			
	 Section 5.01
	  	Right to Receive Distributions on Collateral; Voting	  	21
		
	 ARTICLE VI GENERAL AUTHORITY; REMEDIES
	  	24
			
	 Section 6.01
	  	General Authority	  	24
	 Section 6.02
	  	Remedies upon Event of Default	  	25
	 Section 6.03
	  	Securities Act; Registration Rights	  	26
	 Section 6.04
	  	Other Rights of the Collateral Agent	  	28

  

	*	The Table of contents is not a part of the Pledge Agreement. 

  

 i 

					
	  	  	 	  	Page(s)
			
	 Section 6.05
	  	Limitation on Duty of Collateral Agent in Respect of Collateral	  	29
	 Section 6.06
	  	Waiver and Estoppel	  	29
	 Section 6.07
	  	Application of Proceeds	  	30
		
	 ARTICLE VII THE COLLATERAL AGENT
	  	30
			
	 Section 7.01
	  	[Reserved]	  	30
	 Section 7.02
	  	Concerning the Collateral Agent	  	30
	 Section 7.03
	  	Appointment of Co-Collateral Agent	  	31
	 Section 7.04
	  	Appointment of Sub-Agents	  	31
		
	 ARTICLE VIII MISCELLANEOUS
	  	31
			
	 Section 8.01
	  	Notices	  	31
	 Section 8.02
	  	No Waivers; Non-Exclusive Remedies	  	32
	 Section 8.03
	  	Compensation and Expenses of the Collateral Agent; Indemnification	  	32
	 Section 8.04
	  	Enforcement	  	34
	 Section 8.05
	  	Amendments and Waivers	  	34
	 Section 8.06
	  	Successors and Assigns	  	34
	 Section 8.07
	  	Governing Law	  	35
	 Section 8.08
	  	Limitation of Law; Severability	  	35
	 Section 8.09
	  	Counterparts; Effectiveness	  	35
	 Section 8.10
	  	Additional Loan Parties	  	35
	 Section 8.11
	  	Termination; Release of Loan Parties	  	36
	 Section 8.12
	  	Entire Agreement	  	38
	 Section 8.13
	  	Existing Senior Secured Notes	  	38
	 Section 8.14
	  	Revolving Credit Collateral Agent	  	38

 Schedules: 
  

					
	Schedule I	  	–	  	    List of Pledged Shares
	Schedule II	  	–	  	    List of Pledged Notes
	Schedule III	  	–	  	    List of Pledged LLC Interests
	Schedule IV	  	–	  	    List of Pledged Partnership Interests
	Schedule 3.04	  	–	  	    Consents

 Exhibits: 
  

					
	Exhibit A	  	–	  	    Form of Securities Account Control Agreement

  

 ii 

 PLEDGE AGREEMENT dated as of August 7, 2009 (as amended, modified or supplemented from time
to time, this “Agreement”) among the LOAN PARTIES from time to time party hereto and U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent for the benefit of the Finance Parties referred to herein (together with its successor or
successors in such capacity, the “Collateral Agent”). 
 Duane Reade Inc., a Delaware corporation (“DRI”),
and Duane Reade, a New York general partnership (“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 Duane Reade Holdings, Inc., a Delaware corporation (“Holdings”),
and by DRI I, Inc., a Delaware corporation (“DRI I”), Duane Reade International, LLC (f/k/a Duane Reade International, Inc.), a Delaware limited liability company (“DR International”), and Duane Reade Realty, Inc.,
a Delaware corporation (“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 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 

  

 2 

 
“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 hereto pursuant to Section 8.10 hereof (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 in the Collateral Agency Agreement referred to 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 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 designated as such by the Secured Debt Designation (as defined in the Collateral Agency Agreement referred to below) and with respect to which a Term Loan Agent (as defined in the
Collateral Agency Agreement referred to below) thereunder has delivered the Joinder (as defined in the Collateral Agency Agreement referred to below). 
 The Indenture requires the Loan Parties to secure their obligations under the Senior Secured Notes together with all Swap Obligations and their obligations under any guaranties thereof, equally and ratably, with
security interests or other liens on the Note/Term Collateral. The Indenture further requires that such security interests in the Note/Term Collateral be granted pursuant to security documents to a collateral agent acting for the benefit of the Swap
Creditors, the holders from time to time of the Senior Secured Notes and any Term Lenders. Consequently, in contemplation of the incurrence of any Term Loans, the Trustee and the Collateral Agent have entered into an Intercreditor and Collateral
Agency Agreement dated as of the date hereof (as amended, 

  

 3 

 
modified or supplemented from time to time, the “Collateral Agency Agreement”) which, among other things, governs certain actions of the
Trustee, any Term Loan Agent, the Swap Representative and the Collateral Agent in connection with the Senior Secured Notes, any Term Loans, Swap Obligations and the Note/Term Collateral, respectively. 
 Accordingly, the parties hereto hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01 Defined Terms. Terms defined in the introductory section hereof have the respective meanings set forth therein. Capitalized terms
defined in the Collateral Agency Agreement and not otherwise defined herein have, as used herein, the respective meanings provided for therein. 
 Section 1.02 Terms Defined in the UCC. Unless otherwise defined herein or the context otherwise requires, the following terms, together with any uncapitalized terms used herein which are defined in the UCC have the respective
meanings provided for in the UCC: (i) Certificated Security; (ii) Financial Asset; (iii) Investment Property; (iv) Payment Intangibles; (v) Proceeds; (vi) Securities Account; (vii) Securities Intermediary;
(viii) Security; (ix) Security Certificate; and (x) Uncertificated Security. 
 Section 1.03 Additional Definitions.
The following additional terms, as used herein, have the following respective meanings: 
 “Capital Stock” has the meaning
given to it in the Indenture. 
 “Collateral” has the meaning set forth in Section 2.01. 
 “Collateral Agent” means U.S. Bank National Association, in its capacity as collateral agent for the Finance Parties, and its successor
or successors in such capacity. 
 “Default” means any event which is, or after notice or passage of time or both would be,
an Event of Default. 
 “Delivery” when used with respect to Collateral means: 
 (i) in the case of Collateral constituting Certificated Securities, transfer thereof to the Collateral Agent or its nominee or custodian
by physical delivery to the Collateral Agent or its nominee or custodian, such Collateral to be in suitable form for transfer by delivery, or accompanied by duly executed instruments of transfer or assignment in blank; 
  

 4 

 (ii) in the case of Collateral constituting Uncertificated Securities,
(A) registration thereof on the books and records of the issuer thereof in the name of the Collateral Agent or its nominee or custodian (who may not be a Securities Intermediary) or (B) the execution and delivery by the issuer thereof of
an effective agreement, substantially in the form of Exhibit A hereto, pursuant to which such issuer agrees that it will comply with instructions originated by the Collateral Agent or such nominee or custodian without further consent of
the registered owner of such Collateral or any other Person; 
 (iii) in the case of Collateral constituting Security
Entitlements or other Financial Assets deposited in or credited to a Securities Account, (A) completion of all actions necessary to constitute the Collateral Agent or its nominee or custodian the entitlement holder with respect to each such
Security Entitlement or (B) the execution and delivery by the relevant Securities Intermediary of an effective agreement, substantially in the form of Exhibit B hereto, pursuant to which such Securities Intermediary agrees to comply
with all entitlement orders originated by the Collateral Agent or such nominee or custodian without further consent by the relevant entitlement holder or any other Person; 
 (iv) in the case of LLC Interests and Partnership Interests issued by one or more Loan Parties which do not constitute Securities,
(A) compliance with the provisions of clause (i) above for each such item of Collateral which is represented by a certificate or (B) compliance with the provisions of clause (ii) above for each such item of
Collateral which is not evidenced by a certificate; 
 (v) in the case of Collateral which constitute Instruments, subject to
the Intercreditor Agreement, transfer thereof to the Collateral Agent or its nominee or custodian by physical delivery to the Collateral Agent or its nominee or custodian indorsed to, or registered in the name of, the Collateral Agent or its nominee
or custodian or indorsed in blank; 
 (vi) in the case of cash, transfer thereof to the Collateral Agent or its nominee or
custodian by physical delivery to the Collateral Agent or its nominee or custodian; and 
 (vii) in each case such additional
or alternative procedures as may hereafter become appropriate to grant control of, or otherwise perfect a security interest in, any Collateral in favor of the Collateral Agent or its nominee or custodian, consistent with changes in applicable law or
regulations or the interpretation thereof. 
 “Event of Default” means an “Event of Default” as defined in the
Indenture or any Term Loan Agreement. 
 “Fair Market Value” has the meaning given to it in the Indenture. 
 “Federal Securities Laws” has the meaning set forth in Section 6.03(a) of this Agreement. 
  

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 “Finance Document” means each Term Loan Document, each Swap Agreement evidencing Swap
Obligations of a Loan Party permitted under all Term Loan Agreements, if any, and the Indenture to be secured hereby, each Note Document between one or more Loan Parties and a Finance Party and the Collateral Agency 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, each Indemnitee and their respective
successors and assigns, and “Finance Parties” means any two or more of them, collectively. 
 “Foreign
Subsidiary” means, with respect to any Person at any date, any Subsidiary of such Person which is not a US Subsidiary of such Person. 
 “General Intangibles” means all “general intangibles” (as defined in the UCC), including, without limitation, (i) all Payment Intangibles and other obligations and indebtedness owing to any Loan Party in
respect of Collateral and (ii) all interests in limited liability companies and/or partnerships which interests do not constitute Securities. 
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central bank or other
entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
 “Guarantee” means the guarantee by any Guarantor of the Note/Term Obligations. 
 “Indemnitee” has
the meaning set forth in Section 8.03(c) of this Agreement. 
  

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 “Instruments” means: 
 (i) the promissory notes described on Schedule II hereto, as such Schedule may be amended, supplemented or modified from
time to time (the “Pledged Notes”), and all interest, distributions, cash, instruments and other property, income, profits and proceeds from time to time received or receivable or otherwise made upon or distributed in respect of or
in exchange for any or all of the Pledged Notes; 
 (ii) all additional or substitute promissory notes from time to time
issued to or otherwise acquired by any Loan Party in any manner in respect of Pledged Notes, and all interest, distributions, cash, instruments and other property, income, profits and proceeds from time to time received or receivable or otherwise
made upon or distributed in respect of such additional or substitute notes; 
 (iii) all promissory notes, bankers’
acceptances, commercial paper, negotiable certificates of deposit and other obligations constituting “instruments” within the meaning of the UCC; and 
 (iv) to the extent not otherwise included in the foregoing, all cash and non-cash Proceeds thereof. 
 “Issue Date” means August 7, 2009. 
 “Law” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or
authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law. 
 “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. 
 “LLC Interests” means: 
 (i) the limited liability company membership interests described on Schedule III hereto, as such Schedule may be amended,
supplemented or modified from time to time (the “Pledged LLC Interests”), and all dividends, distributions, cash, instruments and other property, income, profits and proceeds from time to time received or receivable or otherwise
made upon or distributed in respect of or in exchange for any or all of the Pledged LLC Interests; 
  

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 (ii) all additional or substitute limited liability company membership interests from
time to time issued to or otherwise acquired by any Loan Party in any manner in respect of Pledged LLC Interests, and all dividends, distributions, cash, instruments and other property, income, profits and proceeds from time to time received or
receivable or otherwise made upon or distributed in respect of such additional or substitute membership interests; 
 (iii)
all right, title and interest of any Loan Party in each limited liability company to which any Pledged LLC Interest relates, including, without limitation: 
 (A) all interests of such Loan Party in the capital of such limited liability company and in all profits, losses and assets, whether tangible or intangible and whether real, personal or mixed, of such limited
liability company, and all other distributions to which such Loan Party shall at any time be entitled in respect of such Pledged LLC Interests; 
 (B) all other payments due or to become due to such Loan Party in respect of Pledged LLC Interests, whether under any limited liability company agreement or operating agreement or otherwise and whether as contractual
obligations, damages, insurance proceeds or otherwise; 
 (C) all of such Loan Party’s claims, rights, powers,
privileges, authority, options, security interests, liens and remedies, if any, under any limited liability company agreement or operating agreement, or at law or otherwise in respect of such Pledged LLC Interests; 
 (D) all present and future claims, if any, of such Loan Party against any such limited liability company for moneys loaned or advanced,
for services rendered or otherwise (exclusive of claims for salary and other employee compensation); and 
 (E) all of such
Loan Party’s rights under any limited liability company agreement or operating agreement or at law to exercise and enforce every right, power, remedy, authority, option and privilege of such Loan Party relating to such Pledged LLC Interests,
including any power to terminate, cancel or modify any limited liability company agreement or operating agreement, to execute any instruments and to take any and all other action on behalf of and in the name of such Loan Party in respect of such
Pledged LLC Interests and any such limited liability company, to make determinations, to exercise any election (including, without limitation, election of remedies) or option to give or receive any notice, consent, amendment, waiver or approval,
together with full power and authority to demand, receive, enforce, collect or give receipt for any of the foregoing or for any assets of any such limited liability company, to enforce or execute any checks or other instruments or orders, to file
any claims and to take any other action in connection with any of the foregoing; and 
  

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 (iv) to the extent not otherwise included in the foregoing, all cash and non-cash
Proceeds thereof. 
 “Loan Party” has the meaning set forth in the introductory paragraphs hereof. 
 “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; together in each case with all renewals, modifications, refinancings,
consolidations or extensions thereof. 
  

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 “Partnership Interests” means: 
 (i) the partnership interests described on Schedule IV hereto, as such Schedule may be amended, supplemented or modified
from time to time (the “Pledged Partnership Interests”), and all dividends, distributions, cash, instruments and other property, income, profits and proceeds from time to time received or receivable or otherwise made upon or
distributed in respect of or in exchange for any or all of the Pledged Partnership Interests; 
 (ii) all additional or
substitute partnership interests from time to time issued to or otherwise acquired by any Loan Party in any manner in respect of Pledged Partnership Interests, and all dividends, distributions, cash, instruments and other property, income, profits
and proceeds from time to time received or receivable or otherwise made upon or distributed in respect of such additional or substitute partnership interests; 
 (iii) all right, title and interest of any Loan Party in each partnership to which any Pledged Partnership Interest relates, including,
without limitation: 
 (A) all interests of such Loan Party in the capital of such partnership and in all profits, losses and
assets, whether tangible or intangible and whether real, personal or mixed, of such partnership, and all other distributions to which such Loan Party shall at any time be entitled in respect of such Pledged Partnership Interests; 
 (B) all other payments due or to become due to such Loan Party in respect of Pledged Partnership Interests, whether under any partnership
agreement or otherwise and whether as contractual obligations, damages, insurance proceeds or otherwise; 
 (C) all of such
Loan Party’s claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under any partnership agreement, or at law or otherwise in respect of such Pledged Partnership Interests; 
 (D) all present and future claims, if any, of such Loan Party against any such partnership for moneys loaned or advanced, for services
rendered or otherwise (exclusive of claims for salary and other employee compensation); and 
 (E) all of such Loan
Party’s rights under any partnership agreement or at law to exercise and enforce every right, power, remedy, authority, option and privilege of such Loan Party relating to such Pledged Partnership Interests, including any power to terminate,
cancel or modify 

  

 10 

 
any partnership agreement, to execute any instruments and to take any and all other action on behalf of and in the name of such Loan Party in respect of such
Pledged Partnership Interests and any such partnership, to make determinations, to exercise any election (including, without limitation, election of remedies) or option to give or receive any notice, consent, amendment, waiver or approval, together
with full power and authority to demand, receive, enforce, collect or give receipt for any of the foregoing or for any assets of any such partnership, to enforce or execute any checks or other instruments or orders, to file any claims and to take
any other action in connection with any of the foregoing; and 
 (iv) to the extent not otherwise included in the foregoing,
all cash and non-cash Proceeds thereof. 
 “Perfection Certificate” means with respect to each Loan Party a certificate,
substantially in the form of Exhibit F to the Security Agreement, completed and supplemented with the schedules and attachments contemplated thereby. 
 “Permitted Lien” means any Lien permitted by both (a) the Indenture and (b) all Term Loan Agreements, if any. 
 “Pledge Agreement” means this Agreement, as the same may be amended, supplemented or modified from time to time. 
 “Pledged LLC Interests” has the meaning set forth in clause (i) of the definition of “LLC Interests”. 
 “Pledged Notes” has the meaning set forth in clause (i) of the definition of “Instruments”. 
 “Pledged Partnership Interests” has the meaning set forth in clause (i) of the definition of “Partnership
Interests”. 
 “Pledged Shares” has the meaning set forth in clause (i) of the definition of
“Stock”. 
 “Security Entitlements” means all “security entitlements” (as defined in the UCC), including
all rights and property interests with respect to Financial Assets deposited in or credited to Securities Accounts. 
 “Security
Interests” means the security interests in the Collateral granted under this Agreement securing the Finance Obligations. 
 “Stock” means: 
 (i) the shares of stock and other Securities described on Schedule I
hereto, as such Schedule may be amended, supplemented or modified from time to time (the “Pledged Shares”), and all dividends, interest, distributions, cash, instruments and other property, income, profits and proceeds from
time to time received, receivable or otherwise made upon or distributed in respect of or in exchange for any or all of the Pledged Shares; 
  

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 (ii) all additional or substitute shares of capital stock or other equity interests of
any class of any issuer from time to time issued to or otherwise acquired by any Loan Party in any manner in respect of Pledged Shares, the certificates representing such additional or substitute shares, and all dividends, interest, distributions,
cash, instruments and other property, income, profits and proceeds from time to time received, receivable or otherwise made upon or distributed in respect of or in exchange for any or all of such additional or substitute shares; and 
 (iii) to the extent not otherwise included in the foregoing, all cash and non-cash proceeds thereof. 
 “Supporting Obligation” means a “supporting obligation” (as defined in the UCC) and also means a guaranty or other secondary
obligation supporting, or any Lien securing, the payment or performance of one or more Instruments, Investment Property or other item of Collateral. 
 “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. 
 “Term Loan Documents” 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. 
  

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 “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 the Security Interests 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. 
 “US Subsidiary” means with respect to any Person each Subsidiary of such Person which, at the
time of determination, is incorporated in or organized under the law of the United States of America, any State thereof or the District of Columbia, and “US Subsidiaries” means all of them, collectively. 
 “US Subsidiary Guarantor” means each Subsidiary Guarantor which, at the time of determination, is incorporated in or organized under the
laws of the United States of America, any State thereof or the District of Columbia, and “US Subsidiary Guarantors” means all of them, collectively. 
 Section 1.04 Terms Generally. Terms defined in the introductory paragraphs hereof and the definitions in Section 1.03 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 
 THE SECURITY INTERESTS 
 Section 2.01 Grant of Security Interests. To secure the due and punctual payment of all Finance Obligations, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing or due or to become due, in accordance with the terms thereof and to secure the performance of all of the obligations of each Loan Party and the other Loan Parties hereunder and under the other Finance Documents, each Loan Party
hereby grants to the Collateral Agent for the benefit of the Finance Parties a security interest in, and each Loan Party hereby pledges and collaterally assigns to the Collateral Agent for the benefit of the Finance Parties, all of such Loan
Party’s right, title and interest in, to and under the following, whether now owned or existing or hereafter acquired, created or arising, whether tangible or intangible, and regardless of where located (all of which are herein collectively
called the “Collateral”): 
 (i) Stock; 
 (ii) Instruments; 
  

 13 

 (iii) LLC Interests; 
 (iv) Partnership Interests; 
 (v) Investment Property; 
 (vi) Financial Assets; and 
 (vii) all Proceeds of all or any of the Collateral described in clauses (i) through (vi) hereof; 
 provided, however, that the Collateral shall not include (u) any property or assets owned by any Loan Party that is a Foreign Subsidiary,
(v) cash or other distributions in respect of federal, state and/or local income taxes payable by any Loan Party or any direct or indirect equity holder of any Loan Party in respect of the income and profits of any limited liability company,
partnership or other entity which is not a corporation for United States federal income tax purposes, (w) any Security owned by any Loan Party which constitutes a voting equity Security issued by a Foreign Subsidiary of such Loan Party that is
a corporation for United States Federal Income tax purposes, in each case if and to the extent that the inclusion of such Security in the Collateral would cause the Collateral pledged by such Loan Party hereunder or under any other Finance Document
to include in the aggregate more than 65% of the total combined voting power of all classes of voting securities of such Foreign Subsidiary, (x) any Capital Stock and other securities of each Subsidiary of DRI to the extent that the pledge of
such Capital Stock or other securities to secure the Finance Obligations would cause such Subsidiary to be required to file separate financial statements with the Securities and Exchange Commission pursuant to Rule 3-16 of Regulation S-X (as in
effect from time to time) of the Securities and Exchange Commission, (y) any Capital Stock or other securities of any Person that becomes a Guarantor after the Issue Date that, together with all other such Guarantors created, acquired or
invested in after the Issue Date, have a collective Fair Market Value of less than $30,000,000 and (z) any proceeds or products from any and all of the foregoing unless such proceeds or products would otherwise constitute Collateral.

 Notwithstanding the foregoing, if granting or perfecting any Lien to secure the Finance Obligations on any Collateral (i) cannot be granted or
perfected under applicable law, none of DRI, Duane Reade or the Guarantors will be required to grant or perfect, as applicable, such Lien and (ii) that consists of personal property rights that are licensed or leased from a third-party requires
the consent of such third party pursuant to the terms of an applicable license or lease agreement, and such terms are enforceable under applicable law, DRI, Duane Reade or the Guarantors, as the case may be, will use all commercially reasonable
efforts to obtain such consent with respect to the granting or perfecting of such Lien, but if the third party does not consent to the granting or perfecting of such Lien after the use of commercially reasonable efforts, none of DRI, Duane Reade or
the Guarantors will be required to do so. 
  

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 Section 2.02 Security Interests Absolute. All rights of the Collateral Agent, all security
interests hereunder and all obligations of each Loan Party hereunder are unconditional and absolute and independent and separate from any other security for or guaranty of the Finance Obligations, whether executed by such Loan Party, any other Loan
Party or any other Person. Without limiting the generality of the foregoing, the obligations of each Loan Party hereunder shall not be released, discharged or otherwise affected or impaired by: 
 (i) any extension, renewal, settlement, compromise, acceleration, waiver or release in respect of any obligation of any Loan Party under
any Finance Document or any other agreement or instrument evidencing or securing any Finance Obligation, by operation of law or otherwise; 
 (ii) any change in the manner, place, time or terms of payment of any Finance Obligation or any other amendment, supplement or modification to any Finance Document or any other agreement or instrument evidencing or
securing any Finance Obligation; 
 (iii) any release, non-perfection or invalidity of any direct or indirect security for any
Finance Obligation, any sale, exchange, surrender, realization upon, offset against or other action in respect of any direct or indirect security for any Finance Obligation or any release of any other obligor in respect of any Finance Obligation;

 (iv) any change in the existence, structure or ownership of any Loan Party, or any insolvency, bankruptcy, reorganization,
arrangement, readjustment, composition, liquidation or other similar proceeding affecting any Loan Party or its assets or any resulting disallowance, release or discharge of all or any portion of any Finance Obligation; 
 (v) the existence of any claim, set-off or other right which any Loan Party may have at any time against any other Loan Party or any
Finance Party or any other Person, whether in connection herewith or any unrelated transaction; provided that nothing herein shall prevent the assertion of any such claim by separate suit or compulsory counterclaim; 
 (vi) any invalidity or unenforceability relating to or against any Loan Party for any reason of any Finance Document or any other
agreement or instrument evidencing or securing any Finance Obligation or any provision of applicable law or regulation purporting to prohibit the payment by any Loan Party of any Finance Obligation; 
 (vii) any failure by any Finance Party: (A) to file or enforce a claim against any Loan Party or its estate (in a bankruptcy or other
proceeding); (B) to give notice of the existence, creation or incurrence by any Loan Party of any new or additional indebtedness or obligation under or with respect to the Finance Obligations; (C) to commence any action against any Loan
Party; (D) to disclose to any Loan Party any facts which such Finance Party may now or hereafter know with regard to any Loan Party; or (E) to proceed with due diligence in the collection, protection or realization upon any collateral
securing the Finance Obligations; 
  

 15 

 (viii) any direction as to application of payment by any Loan Party or any other Person;

 (ix) any subordination by any Finance Party of the payment of any Finance Obligation to the payment of any other liability
(whether matured or unmatured) of any Loan Party to its creditors; 
 (x) any act or failure to act by the Collateral Agent or
any other Finance Party under this Agreement or otherwise which may deprive any Loan Party of any right to subrogation, contribution or reimbursement against any other Loan Party or any right to recover full indemnity for any payments made by such
Loan Party in respect of the Finance Obligations; or 
 (xi) any other act or omission to act or delay of any kind by any Loan
Party or any Finance Party or any other Person or any other circumstance whatsoever which might, but for the provisions of this clause, constitute a legal or equitable discharge of any Loan Party’s obligations hereunder (other than final
payment in full of the Finance Obligations). 
 Each Loan Party has irrevocably and unconditionally delivered this Agreement to the
Collateral Agent, for the benefit of the Finance Parties, and the failure by any other Person to sign this Agreement or a pledge agreement similar to this Agreement or otherwise shall not discharge the obligations of any Loan Party hereunder.

 This Agreement shall remain fully enforceable against each Loan Party irrespective of any defenses that any other Loan Party may have or
assert in respect of the Finance Obligations, including, without limitation, failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury, except that a Loan Party may assert the
defense of final payment in full of the Finance Obligations. 
 Section 2.03 Continuing Liability of the Loan Parties. The Security
Interests are granted as security only and shall not subject the Collateral Agent or any Finance Party to, or transfer or in any way affect or modify, any obligation or liability of any Loan Party with respect to any of the Collateral or any
transaction in connection therewith. 
  

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 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 Each Loan Party represents and warrants that: 
 Section 3.01 Title to Collateral. Such Loan Party is the legal, record and beneficial owner of, and has good and marketable title to, all of the
Collateral pledged by it hereunder, free and clear of any Liens other than Permitted Liens. Other than financing statements or other similar or equivalent documents or instruments with respect to the security interests of the Collateral Agent, the
Security Interests and Permitted Liens, no financing statement, mortgage, security agreement or similar or equivalent document or instrument covering all or any part of the Collateral is on file or of record in any jurisdiction in which such filing
or recording would be effective to perfect a Lien on such Collateral. Subject to the Intercreditor Agreement, no Collateral is in the possession or control of any Person asserting any claim thereto or security interest therein, except that the
Collateral Agent or its nominee, custodian or a Securities Intermediary acting on its behalf may have possession and/or control of Collateral as contemplated hereby and by the other Finance Documents. 
 Section 3.02 Validity, Perfection and Priority of Security Interests. The Security Interests constitute valid security interests under the UCC
securing the Finance Obligations. Upon Delivery of all Collateral to the Collateral Agent in accordance with the provisions hereof and when UCC-1 financing statements naming the Collateral Agent as secured party and containing a description of
the Collateral in the form specified in Exhibit E to the Security Agreement shall have been filed in the respective offices specified in Schedule 4.01 to the Security Agreement, the Security Interests shall constitute
perfected security interests in all right, title and interest of such Loan Party in the Collateral (subject to the requirements of Section 9-315 of the UCC with respect to any proceeds of Collateral and to the further requirement that
additional steps may be necessary to perfect the Security Interests in dividends or other distributions in kind), in each case prior to all other Liens and rights of others therein except for Permitted Liens, and, to the extent control of such
Collateral may be obtained pursuant to Article 8 and/or 9 of the UCC, the Collateral Agent will, subject to the Intercreditor Agreement, have control of the Collateral subject to no adverse claims of any other Person. 
 Section 3.03 Collateral. 
 (a)
Schedules I, II, III and IV hereto (as such schedules may be amended, supplemented or modified from time to time by delivery of such amended, supplemented or modified Schedules to the Collateral Agent in compliance with
this Agreement) set forth (i) the name and jurisdiction of organization of, and the ownership interest (including percentage owned and number of shares, units or other equity interests) of such Loan Party in the Stock, LLC Interests and
Partnership Interests issued by each of such Loan Party’s direct Subsidiaries which are required to be included in the Collateral and pledged hereunder, (ii) all other Stock, LLC Interests and Partnership 

  

 17 

 
Interests directly owned by such Loan Party that are required to be included in the Collateral and pledged hereunder and (iii) the issuer, date and
amount of all notes having a face value in excess of $500,000 directly owned or held by such Loan Party that are required to be included in the Collateral and pledged hereunder. Such Loan Party holds all such Collateral directly unless otherwise
indicated on such Schedule (i.e., not through a Subsidiary, Securities Intermediary or any other Person). 
 (b) All Collateral
consisting of Pledged Shares, Pledged LLC Interests and Pledged Partnership Interests has been duly authorized and validly issued, is fully paid and non-assessable and is subject to no options to purchase or similar rights of any Person. Except as
set forth on Schedules I, III and IV hereto, and, in the case of clause (i) below, except as excluded from the Collateral by the proviso to Section 2.01, (i) such Collateral constitutes 100% of the issued and
outstanding shares of capital stock or other equity interests of the respective issuers thereof, (ii) no issuer of Collateral has outstanding any security convertible into or exchangeable for any shares of its capital stock or other equity
interests or any warrant, option, convertible security, instrument or other interest entitling the holder thereof to acquire any such shares or any security convertible into or exchangeable for such shares, (iii) there are no voting trusts,
stockholder agreements, proxies or other agreements in effect with respect to the voting or transfer of such shares of its capital stock and (iv) there are no Liens or agreements, arrangements or obligations to create or give any Lien relating
to any such shares of capital stock. Except as otherwise permitted by the Finance Documents, no Loan Party is now and or will become a party to or otherwise bound by any agreement, other than this Agreement, the Finance Documents and the documents
evidencing the security interest of the Revolving Credit Collateral Agent which restricts in any manner the rights of the Collateral Agent or any other present or future holder of any Collateral to transfer or otherwise dispose of Pledged Shares.

 Section 3.04 No Consents. No consent of any other Person (including, without limitation, any stockholder or creditor of such Loan
Party or any of its Subsidiaries) and no order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any Governmental Authority is required to be obtained by the Loan Party in
connection with the execution, delivery or performance of this Agreement, or in connection with the exercise of the rights and remedies of the Collateral Agent pursuant to this Agreement, except as may be required under the Collateral Agency
Agreement or in connection with the disposition of the Collateral by laws affecting the offering and sale of securities generally or as described in Schedule 3.04 hereto. 
  

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 ARTICLE IV 
 COVENANTS 
 Each Loan Party covenants and agrees that until the payment in full of all Finance
Obligations and until there is no commitment by any Finance Party to make further advances, incur obligations or otherwise give value, such Loan Party will comply with the following: 
 Section 4.01 Delivery of Collateral. All Collateral (other than Revolving Lender Priority Collateral) shall be Delivered to and held by or on
behalf of the Collateral Agent pursuant hereto; provided that so long as no Event of Default shall have occurred and be continuing, and except as required by any other Finance Document, each Loan Party may retain any Collateral
(i) consisting of checks, drafts and other Instruments (other than Pledged Notes and any additional or substitute promissory notes issued to or otherwise acquired by such Loan Party in respect of Pledged Notes) received by it in the ordinary
course of business or (ii) which it is otherwise entitled to receive and retain pursuant to Section 5.01 hereof, and the Collateral Agent shall, promptly upon request of any Loan Party, make appropriate arrangements for making any
Collateral consisting of an Instrument or a Certificated Security pledged by such Loan Party available to it for purposes of presentation, collection or renewal (any such arrangement to be effected, to the extent deemed appropriate to the Collateral
Agent, against a trust receipt or like document). All Collateral Delivered hereunder and shall be accompanied by any required transfer tax stamps. The Collateral Agent shall have the right at any time upon the request of the Directing Creditors, and
upon notice to any Loan Party, to cause any or all of the Collateral (other than Revolving Lender Priority Collateral) to be transferred of record into the name of the Collateral Agent or its nominee. The Collateral Agent shall not give notice and
take sole possession and control of any Collateral Delivered pursuant to clauses (ii)(B) or (iii)(B) of the definition of “Delivery” contained herein pursuant to the related control agreement until an Event of Default shall have occurred
and be continuing. Each Loan Party will promptly give the Collateral Agent copies of any notices or other communications received by it with respect to Collateral registered in the name of such Loan Party, and the Collateral Agent will promptly give
each Loan Party copies of any notices and communications received by the Collateral Agent with respect to Collateral registered in the name of the Collateral Agent or its nominee or custodian. 
 Section 4.02 Delivery of Perfection Certificate; Filing of Financing Statements and Delivery of Search Reports. On or prior to the Issue Date,
such Loan Party shall deliver its Perfection Certificate to the Collateral Agent and shall cause all filings and recordings and other actions specified in Schedule 4.01 to the Security Agreement to have been completed as required by the
Security Agreement. The information set forth in the Perfection Certificate shall be correct and complete. 
 Section 4.03 Change of Name,
Identity, Structure or Location; Subjection to Other Security Agreements; Locations of Places of Business and Chief Executive Office. Such Loan Party will not change its name, identity, structure or location (determined as provided in
Section 9-307 of the UCC) in any manner, and shall not become bound, as provided in Section 9-203(d) of the UCC, by a security agreement entered into by another Person, in each case unless it shall have given the Collateral Agent not less
than 20 days’ prior notice thereof and each such Loan Party shall take all action necessary or advisable to maintain the perfection and priority of the Collateral 
  

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Agent’s security interest in the Collateral of such Loan Party. Such Loan Party shall not in any event change the location of its place or places of
business, its chief executive office or any Collateral or its name, identity, structure or location (determined as provided in Section 9-307 of the UCC), or become bound, as provided in Section 9-307 of the UCC, by a security agreement
entered into by another Person, if such change would cause the Security Interests in any Collateral to lapse or cease to be perfected unless such Loan Party has taken on or before the date of lapse all actions necessary to ensure that the Security
Interests in all Collateral do not lapse or cease to be perfected. Such Loan Party shall promptly notify the Collateral Agent in writing of the specific actions taken by such Loan Party pursuant to this Section. 
 Section 4.04 Further Assurances. Such Loan Party will, from time to time at its expense at the request of the Collateral Agent and in such manner
and form as the Collateral Agent may require, execute, deliver, file and record any financing statement, specific assignment, instrument, document, agreement or other paper and take any other action (including, without limitation, any filings of
financing or continuation statements under the UCC) that from time to time may be reasonably necessary or desirable, or that the Collateral Agent may reasonably request, in order to create, preserve, perfect, confirm or validate the Security
Interests or to enable the Collateral Agent and the Finance Parties to obtain the full benefit of this Agreement or to exercise and enforce any of its rights, powers and remedies created hereunder or under applicable law with respect to any of the
Collateral. To the extent permitted by applicable law but without limiting such Loan Party’s obligations to itself comply with the first sentence of this Section 4.04, such Loan Party hereby authorizes the Collateral Agent to
execute and file, in the name of such Loan Party or otherwise and without the signature or other separate authorization or authentication of such Loan Party appearing thereon, such UCC financing statements or continuation statements as the
Collateral Agent in its reasonably discretion may deem necessary or appropriate to further perfect or maintain the perfection of the Security Interests. Such Loan Party agrees that a carbon, photographic, photostatic or other reproduction of this
Agreement or of a financing statement is sufficient as a financing statement. The Loan Parties shall pay the costs of, or incidental to, any recording or filing of any financing or continuation statements concerning the Collateral. 
 Section 4.05 Disposition of Collateral. Such Loan Party will not sell, exchange, assign or otherwise dispose of, or grant any option with respect
to, any Collateral or create or suffer to exist any Lien (other than the Security Interests and Permitted Liens) on any Collateral except that, subject to the rights of the Collateral Agent and the Finance Parties hereunder if a Default or an Event
of Default shall have occurred and be continuing, such Loan Party may sell, exchange, assign or otherwise dispose of, or grant options with respect to, Collateral to the extent permitted by the Indenture and all Term Loan Agreements, if any,
whereupon, in the case of any such disposition, the Security Interests created hereby in such item (but not in any Proceeds arising from such disposition) shall cease immediately without any further action on the part of the Collateral Agent.

  

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 Section 4.06 Additional Collateral. Except as otherwise permitted by any Finance Document, such
Loan Party will cause each issuer of the Collateral that is a Subsidiary of such Loan Party not to issue any stock, other securities, limited liability company membership interests, partnership interests, promissory notes or other instruments in
addition to or in substitution for the Pledged Shares, Pledged LLC Interests, Pledged Partnership Interests and Pledged Notes issued by such issuer, except to a Loan Party, and, in the event that any issuer of Collateral at any time issues any
additional or substitute stock, other securities, limited liability company membership interests, partnership interests, promissory notes or other instruments to a Loan Party, such Loan Party will (subject to the proviso to Section 2.01)
immediately Deliver all such items (other than Revolving Lender Priority Collateral) to the Collateral Agent to hold as Collateral hereunder and will promptly thereafter deliver to the Collateral Agent a certificate executed by an authorized officer
of such Loan Party describing such Pledged Shares, Pledged LLC Interests, Pledged Partnership Interests and/or Pledged Notes, attaching such supplements to Schedules I through IV hereto as are necessary to cause such Schedules to be
complete and accurate at such time and certifying that such Pledged Shares, Pledged LLC Interests, Pledged Partnership Interests and/or Pledged Notes have been duly pledged with the Collateral Agent hereunder. 
 Section 4.07 Information Regarding Collateral. Such Loan Party will, promptly upon request, provide to the Collateral Agent all information and
evidence it may reasonably request concerning the Collateral to enable the Collateral Agent to enforce the provisions of this Agreement. 
 ARTICLE V 
 DISTRIBUTIONS ON COLLATERAL; VOTING 
 Section 5.01 Right to Receive Distributions on Collateral; Voting. 
 (a) Unless and until (i) an Event of Default shall have occurred and be continuing and (ii) written notice thereof shall have been given by the Collateral Agent to the relevant Loan Party (provided
that if an Event of Default specified in Section 6.01(7) or Section 6.01(8) of the Indenture, or an Event of Default under any Term Loan Agreement in connection with an Insolvency Event (as such term may be defined or further
described therein), shall occur, no such notice shall be required): 
 (i) Each Loan Party shall be entitled to exercise any
and all voting, management, administration and other consensual rights pertaining to the Collateral or any part thereof for any purpose not inconsistent with the terms of this Agreement and the other Finance Documents; provided,
however, that (A) each Loan Party shall give the Collateral Agent prior written notice of the manner in which it intends to exercise, or the reasons for refraining from exercising, any such right to the extent that the exercise of such
right or the refraining from exercising such right could reasonably be expected to materially effect the position or interests of the Collateral Agent or any other Finance Party hereunder or thereunder, and (B) no Loan Party shall 

  

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exercise or refrain from exercising any such right if such action would violate or be inconsistent with any of the terms of this Agreement or any other
Finance Document, or would have the effect of impairing the position or interests of the Collateral Agent or any other Finance Party hereunder or thereunder. 
 (ii) Each Loan Party shall be entitled to receive and retain any and all dividends, interest, distributions, cash, instruments and other
payments and distributions made upon or in respect of the Collateral; provided, however, that any and all: 
 (A) dividends, interest and other payments and distributions paid or payable other than in cash in respect of, and instruments and other property other than in cash received, receivable or otherwise distributed in respect of, or in exchange
for, any Collateral; 
 (B) dividends and other payments and distributions paid or payable in cash in respect of any
Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus; 
 (C) additional stock, other securities, limited liability company membership interests, partnership interests, promissory notes or other
instruments or property paid or distributed in respect of any Pledged Shares, Pledged LLC Interests or Pledged Partnership Interests by way of share-split, spin-off, split-up, reclassification, combination of shares or similar rearrangement;

 (D) all other or additional stock, other securities, limited liability company membership interests, partnership interests,
promissory notes or other instruments or property which may be paid in respect of the Collateral by reason of any consolidation, merger, exchange of shares, conveyance of assets, liquidation or similar reorganization; and 
 (E) cash paid, payable or otherwise distributed in respect of principal of, in redemption of, or in exchange for, any Collateral;

 shall, except for the Revolving Lender Priority Collateral, be forthwith (i) Delivered to the Collateral Agent or its nominee or custodian to hold as
Collateral hereunder or (ii) in the case of any amount referred to in the proviso of this Section 5.01(a)(ii) paid or distributed in cash, forthwith deposited in a Deposit Account maintained with the Collateral Agent or with respect
to which an effective Account Control Agreement as contemplated by Section 4.13 of the Security Agreement has been delivered to the Collateral Agent and shall, if received by any Loan Party, be received in trust for the benefit of the
Collateral Agent and the Finance Parties, be segregated from the other property or funds of such Loan Party and be forthwith Delivered, in the same form as so received, to the Collateral Agent or its nominee or custodian to hold as Collateral or
deposited in a Deposit Account as contemplated by clause (ii) above. 
  

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 (iii) The Collateral Agent shall, upon receiving a written request from any Loan Party
accompanied by a certificate signed by an authorized officer of such Loan Party stating that no Event of Default has occurred and is continuing, execute and deliver (or cause to be executed and delivered) to such Loan Party or as specified in such
request all proxies, powers of attorney, consents, ratifications and waivers and other instruments as such Loan Party may reasonably request for the purpose of enabling such Loan Party to exercise the voting and other rights which it is entitled to
exercise pursuant to paragraph (i) above and to receive the dividends, interest, distributions, cash, instruments or other payments or distributions which it is authorized to receive and retain pursuant to paragraph (ii)
above in respect of any of the Collateral which is registered in the name of the Collateral Agent or its nominee. 
 (b) Upon the occurrence
and during the continuance of an Event of Default and written notice thereof shall have been given by the Collateral Agent to the relevant Loan Party (provided that if an Event of Default specified in Section 6.01(7) or
Section 6.01(8) of the Indenture, or an Event of Default under any Term Loan Agreement in connection with an Insolvency Event (as such term may be defined or further described therein), shall occur, no such notice shall be required):

 (i) All rights of each Loan Party to receive the dividends, interest, distributions, cash, instruments and other payments
and distributions which it would otherwise be authorized to receive and retain pursuant to Section 5.01(a)(ii) above shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have
the sole right to receive and hold as Collateral such dividends, interest, distributions, cash, instruments and other payments and distributions; provided that all cash dividends and other cash distributions in respect of federal, state
and/or local income taxes payable by any Loan Party or any direct or indirect equity holder of any Loan Party in respect of income and profits of any limited liability company, partnership or other entity which is not a corporation for United States
federal income tax purposes shall be paid to the respective Loan Party free and clear of any Liens created hereby regardless of whether an Event of Default shall have occurred and be continuing. 
 (ii) All dividends, interest, distributions, cash, instruments and other payments and distributions which are received by any Loan Party
contrary to the provisions of paragraph (i) of this Section 5.01(b) shall be received in trust for the benefit of the Collateral Agent and the Finance Parties, shall be segregated from other property or funds of such Loan Party and
shall be forthwith Delivered, in the same form as so received to the Collateral Agent or its nominee or custodian to hold as Collateral. 
 (c) Upon the occurrence and during the continuance of an Event of Default and upon notice by the Collateral Agent to a Loan Party, all rights of such Loan Party to exercise the voting, management, administration and other consensual rights
which it would otherwise be entitled to exercise pursuant to Section 5.01(a)(i) above shall cease, all such rights shall thereupon become vested in the Collateral Agent, who shall thereupon have the sole right to exercise such voting and
other consensual rights, and such Loan Party shall take all actions as may be necessary or appropriate to effect such right of the Collateral Agent. 
  

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 ARTICLE VI 
 GENERAL AUTHORITY; REMEDIES 
 Section 6.01 General Authority. Each Loan Party hereby
irrevocably appoints the Collateral Agent and any officer or agent thereof as its true and lawful attorney-in-fact, with full power of substitution, in the name of such Loan Party, the Collateral Agent, the Finance Parties or otherwise, for the sole
use and benefit of the Collateral Agent and the Finance Parties, but at such Loan Party’s expense, to the extent permitted by law, to exercise at any time and from time to time while an Event of Default has occurred and is continuing, all or
any of the following powers with respect to all or any of the Collateral, all acts of such attorney being hereby ratified and confirmed; such power, being coupled with an interest, is irrevocable until the Finance Obligations (excluding contingent
indemnification obligations) are paid in full and until there is no commitment by any Finance Party to make further advances, incur obligations or otherwise give value: 
 (i) to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to
carry out the terms of this Agreement; 
 (ii) to receive, take, endorse, assign and deliver any and all checks, notes,
drafts, acceptances, documents and other negotiable and non-negotiable instruments taken or received by such Loan Party as, or in connection with, the Collateral; 
 (iii) to accelerate any Pledged Note which may be accelerated in accordance with its terms, and to otherwise demand, sue for, collect,
receive and give acquittance for any and all monies due on or by virtue of any Collateral; 
 (iv) to commence, settle,
compromise, compound, prosecute, defend or adjust any claim, suit, action or proceeding with respect to, or in connection with, the Collateral; 
 (v) to sell, transfer, assign or otherwise deal in or with the Collateral or the proceeds or avails thereof, as fully and effectually as if the Collateral Agent were the absolute owner thereof; 
 (vi) to extend the time of payment of any or all of the Collateral and to make any allowance and other adjustments with respect thereto;

 (vii) subject to the giving of notice to the relevant Loan Party in accordance with Section 5.01(a) hereof, to
vote all or any part of the Pledged Shares, Pledged LLC Interests, Pledged Partnership Interests and/or Pledged Notes (whether or not transferred into the name of the Collateral Agent) and give all consents, waivers and ratifications in respect of
the Collateral; and 
  

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 (viii) to do, at its option, but at the expense of such Loan Party, at any time or from
time to time, all acts and things which the Collateral Agent deems necessary to protect or preserve the Collateral and to realize upon the Collateral. 
 Section 6.02 Remedies upon Event of Default. 
 (a) If an Event of Default shall have occurred and be
continuing, the Collateral Agent may, in addition to all other rights and remedies granted to it in this Agreement and in any other agreement securing, evidencing or relating to the Finance Obligations: (i) exercise on behalf of the Finance
Parties all rights and remedies of a secured party under the UCC (whether or not in effect in the jurisdiction where such rights are exercised) and, in addition, (ii) without demand of performance or other demand or notice of any kind (except
as herein provided or as may be required by mandatory provisions of law) to or upon any Loan Party or any other Person (all of which demands and/or notices are hereby waived by each Loan Party), (A) apply all cash, if any, then held by it as
Collateral as specified in Section 6.07 hereof and (B) if there shall be no such cash or if such cash shall be insufficient to pay all the Finance Obligations in full or cannot be so applied for any reason or if the Collateral Agent
determines to do so, collect, receive, appropriate and realize upon the Collateral and/or sell, assign, give an option or options to purchase or otherwise dispose of and deliver the Collateral (or contract to do so) or any part thereof in one or
more parcels (which need not be in round lots) at public or private sale or at broker’s board or on any securities exchange, at any office of the Collateral Agent or elsewhere in such manner as is commercially reasonable and as the Collateral
Agent may deem best, for cash, on credit or for future delivery without assumption of any credit risk and at such price or prices as the Collateral Agent may deem satisfactory. 
 (b) The Collateral Agent shall give each Loan Party not less than 10 days’ prior notice of the time and place of any sale or other intended
disposition of any of the Collateral, except any Collateral which threatens to decline speedily in value or is of a type customarily sold on a recognized market. Any such notice shall (i) in the case of a public sale, state the time and place
fixed for such sale, (ii) in the case of a sale at a broker’s board or on a securities exchange, state the board or exchange at which such sale is to be made and the day on which the Collateral, or the portion thereof being sold, will
first be offered for sale, (iii) in the case of a private sale, state the day after which such sale may be consummated, (iv) contain the information specified in Section 9-613 of the UCC, (v) be authenticated and (vi) be
sent to the parties required to be notified pursuant to Section 9-611(c) of the UCC; provided that, if the Collateral Agent fails to comply with this sentence in any respect, its liability for such failure shall be limited to the
liability (if any) imposed on it as a matter of law under the UCC. The Collateral Agent and each Loan Party agree that such notice constitutes reasonable notification within the meaning of Section 9-611 of the UCC. Except as otherwise provided
herein, each Loan Party hereby waives, to the extent permitted by applicable law, notice and judicial hearing in connection with the Collateral Agent’s taking possession or disposition of any of the Collateral. 
  

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 (c) The Collateral Agent or any Finance Party may be the purchaser of any or all of the Collateral so
sold at any public sale (or, if the Collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations, at any private sale). Each Loan Party will execute and deliver
such documents and take such other action as the Collateral Agent deems necessary or advisable in order that any such sale may be made in compliance with law. Upon any such sale, the Collateral Agent shall have the right to deliver, assign and
transfer to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the Collateral so sold to it absolutely and free from any claim or right of whatsoever kind. Any such public sale shall be held at such time or
times within ordinary bankers hours and at such place or places as the Collateral Agent may fix in the notice of such sale. At any such sale, the Collateral may be sold in one lot as an entirety or in such parcels, as the Collateral Agent may
determine. The Collateral Agent shall not be obligated to make any such sale pursuant to any such notice. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time
by announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the same may be so adjourned without further notice. In the case of any sale of all or any part of the Collateral on credit or for
future delivery, the Collateral so sold may be retained by the Collateral Agent until the selling price is paid by the purchaser thereof, but the Collateral Agent shall not incur any liability in case of the failure of such purchaser to take up and
pay for the Collateral so sold and, in the case of such failure, such Collateral may again be sold upon like notice. 
 Section 6.03
Securities Act; Registration Rights. 
 (a) Securities Act. In view of the position of the Loan Parties in relation to
the Collateral, or because of other present or future circumstances, a question may arise under the Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted analogous in purpose or effect (such Act and any such
similar statute as from time to time in effect being herein called the “Federal Securities Laws”) with respect to any disposition of the Collateral permitted hereunder. Each Loan Party understands that compliance with the Federal
Securities Laws might very strictly limit the course of conduct of the Collateral Agent if the Collateral Agent were to attempt to dispose of all or any part of the Collateral, and might also limit the extent to which or the manner in which any
subsequent transferee of any Collateral could dispose of the same. Similarly, there may be other legal restrictions or limitations affecting the Collateral Agent in any attempt to dispose of all or part of the Collateral under applicable Blue Sky or
other state securities laws or similar laws analogous in purpose or effect. Without limiting the generality of the foregoing, the provisions of this Section 6.03 would apply if, for example, the Collateral Agent were to place all or any
part of the Collateral for private placement by an investment banking firm, or if such investment banking firm purchased all or any part of the Collateral for its own account, or if the Collateral Agent placed all or any part of the Collateral
privately with a purchaser or purchasers. 
  

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 Accordingly, each Loan Party expressly agrees that the Collateral Agent is authorized, in connection with
any sale of any Collateral, if it deems it advisable so to do, (i) to restrict the prospective bidders on or purchasers of any of the Collateral to a limited number of sophisticated investors who will represent and agree that they are
purchasing for their own account for investment and not with a view to the distribution or sale of any of such Collateral, (ii) to cause to be placed on certificates for any or all of the Collateral or on any other securities pledged hereunder
a legend to the effect that such security has not been registered under the Securities Act of 1933 and may not be disposed of in violation of the provision of said Act and (iii) to impose such other limitations or conditions in connection with
any such sale as the Collateral Agent deems necessary or advisable in order to comply with said Act or any other law. Each Loan Party covenants and agrees that it will execute and deliver such documents and take such other action as the Collateral
Agent deems reasonably necessary or advisable in order that any such sale may be made in compliance with the Securities Act of 1933 and all other applicable laws. Each Loan Party acknowledges and agrees that such limitations may result in prices and
other terms less favorable to the seller than if such limitations were not imposed, and, notwithstanding such limitations, agrees that any such sale shall be deemed to have been made in a commercially reasonable manner, it being the agreement of the
Loan Parties and the Collateral Agent that the provisions of this Section 6.03 will apply notwithstanding the existence of a public or private market upon which the quotations or sales prices may exceed substantially the price at which
the Collateral Agent sells the Collateral. The Collateral Agent shall be under no obligation to delay a sale of any Collateral for a period of time necessary to permit the issuer of any securities contained therein to register such securities under
the Federal Securities Laws, or under applicable state securities laws, even if the issuer would agree to do so. Furthermore, each Loan Party acknowledges that it is aware that Section 9-610 of the UCC provides that the Collateral Agent or a
Finance Party may purchase Collateral if it is sold at a public sale. 
 (b) Registration Rights. If the Collateral Agent shall
determine to exercise its right to sell all or any of the Collateral and if in the opinion of counsel for the Collateral Agent it is necessary, or if in the opinion of the Collateral Agent it is advisable, to have all or any of the securities
included in the Collateral or the portion thereof to be sold registered under the provisions of the Federal Securities Laws, each Loan Party agrees, at its own expense (including, without limitation, expenses relating to brokers commissions),
(i) to execute and deliver, and to use its commercially reasonable efforts to cause each corporation whose securities are to be sold and their respective directors and officers to execute and deliver, all such instruments and documents, and to
do or cause to be done all other such acts and things, as may be necessary or, in the opinion of the Collateral Agent, advisable to register such securities under the provisions of the Federal Securities Laws and to cause the registration statement
relating thereto to become effective and to remain effective for such period as prospectuses are required by law to be furnished, and to make or cause to be made all amendments and supplements thereto and to the related prospectus which, in the
opinion of the Collateral Agent, are necessary or advisable, all in conformity with the requirements of the Securities Act of 1933 and the rules and regulations of the Securities and Exchange Commission thereunder, (ii) to use 

  

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its best efforts to cause the corporation whose securities are to be sold to agree to prepare, and to make available to its security holders as soon as
practicable, an earnings statement (which need not be audited) covering the period of at least 12 months beginning with the first month after the effective date of any such registration statement, which earning statement will satisfy the provisions
of Section 11(a) of the Securities Act of 1933, (iii) to use its commercially reasonable efforts to qualify such securities under state Blue Sky or securities laws and to obtain the approval of any Governmental Authorities for the sale of
such securities as requested by the Collateral Agent and (iv) at the request of the Collateral Agent, to indemnify and hold harmless the Collateral Agent and any underwriters (and any person controlling any of the foregoing) from and against
any loss, liability, claim, damage and expense (and reasonable counsel fees incurred in connection therewith) under the Securities Act of 1933 or otherwise insofar as such loss, liability, claim, damage or expense arises out of or is based upon any
untrue statement or alleged untrue statement of a material fact contained in such registration statement or prospectus or in any preliminary prospectus or any amendment or supplement thereto, or arises out of or is based upon any omission or alleged
omission to state therein a material fact required to be stated or necessary to make the statements therein not misleading, such indemnification to remain operative regardless of any investigation made by or on behalf of the Collateral Agent or any
underwriters (or any person controlling any of the foregoing); provided that no Loan Party shall be liable in any case to the extent that any such loss, liability, claim, damage or expense arises out of or is based on an untrue statement or
alleged untrue statement or an omission or an alleged omission made in reliance upon and in conformity with written information furnished to such Loan Party by the Collateral Agent or any underwriter expressly for use in such registration statement
or prospectus. 
 Section 6.04 Other Rights of the Collateral Agent. 
 (a) The Collateral Agent, instead of exercising the power of sale conferred upon it pursuant to Section 6.02, may proceed by a suit or suits
at law or in equity to foreclose the Security Interests and sell the Collateral, or any portion thereof, under a judgment or decree of a court or courts of competent jurisdiction, and may in addition institute and maintain such suits and proceedings
as the Collateral Agent may deem appropriate to protect and enforce the rights vested in the Collateral Agent by this Agreement. 
 (b) The
Collateral Agent shall, to the extent permitted by applicable law, without notice to any Loan Party or any party claiming through any Loan Party, without regard to the solvency or insolvency at such time of any Person then liable for the payment of
any of the Finance Obligations, without regard to the then value of the Collateral and without requiring any bond from any complainant in such proceedings, be entitled as a matter of right to the appointment of a receiver or receivers (who may be
the Collateral Agent) of the Collateral or any part thereof, and of the profits, revenues and other income thereof, pending such proceedings, with such powers as the court making such appointment shall confer, and to the entry of an order directing
that the profits, revenues and other income of the property constituting the whole or any part of the Collateral be segregated, sequestered and impounded for the benefit of the Collateral Agent and the Finance Parties, and each Loan Party
irrevocably consents to the appointment of such receiver or receivers and to the entry of such order. 
  

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 Section 6.05 Limitation on Duty of Collateral Agent in Respect of Collateral. Beyond the exercise
of reasonable care in the custody thereof, neither the Collateral Agent nor any Finance Party shall have any duty to exercise any rights or take any steps to preserve the rights of any Loan Party in the Collateral in its or their possession or
control or in the possession or control of any agent or bailee or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. Each Loan Party agrees that the Collateral Agent shall at no time
be required to, nor shall the Collateral Agent be liable to any Loan Party for any failure to, account separately to any Loan Party for amounts received or applied by the Collateral Agent from time to time in respect of the Collateral pursuant to
the terms of this Agreement. Without limiting the foregoing, the Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the UCC or
otherwise, shall be (and in so doing shall be deemed to have exercised reasonable care in respect thereof) to accord the Collateral treatment substantially equal to that which the Collateral Agent accords its own property, and (i) shall not be
liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any agent or bailee selected by the Collateral Agent in good faith or (ii) shall not have any
duty or responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such
matters. 
 Section 6.06 Waiver and Estoppel. 
 (a) Each Loan Party agrees, to the extent it may lawfully do so, that it will not at any time in any manner whatsoever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, moratorium,
turnover or redemption law, or any law permitting it to direct the order in which the Collateral shall be sold, now or at any time hereafter in force which may delay, prevent or otherwise affect the performance or enforcement of this Agreement, and
each Loan Party hereby waives all benefit or advantage of all such laws. Each Loan Party covenants that it will not hinder, delay or impede the execution of any power granted to the Collateral Agent or any other Finance Party in any Finance
Document. 
 (b) Each Loan Party, to the extent it may lawfully do so, on behalf of itself and all who claim through or under it, including
without limitation any and all subsequent creditors, vendees, assignees and lienors, waives and releases all rights to demand or to have any marshalling of the Collateral upon any sale, whether made under any power of sale granted herein or pursuant
to judicial proceedings or under any foreclosure or any enforcement of this Agreement, and consents and agrees that all of the Collateral may at any such sale be offered and sold as an entirety. 
 (c) Each Loan Party waives, to the extent permitted by law, presentment, demand, protest and any notice of any kind (except the notices expressly
required hereunder) in connection with this Agreement and any action taken by the Collateral Agent with respect to the Collateral. 
  

 29 

 Section 6.07 Application of Proceeds. 
 (a) Priority of Distributions. The proceeds of any sale of, or other realization upon, all or any part of the Collateral (including any
proceeds received and held pursuant to Section 5.01) and any cash held by the Collateral Agent or its nominee or custodian hereunder shall be applied as provided in Section 4.06 of the Collateral Agency Agreement, subject in
all cases to the priorities set forth in the Intercreditor Agreement. The Collateral Agent may make distributions hereunder in cash or in kind or, on a ratable basis, in any combination thereof. 
 (b) Deficiencies. It is understood that the Loan Parties shall remain jointly and severally liable to the extent of any deficiency between
the amount of the proceeds of the Collateral and the amount of the Finance Obligations. 
 ARTICLE VII 
 THE COLLATERAL AGENT 
 Section 7.01
[Reserved]. 
 Section 7.02 Concerning the Collateral Agent. The provisions of Article VI of the Collateral Agency
Agreement shall inure to the benefit of the Collateral Agent in respect of this Agreement and shall be binding upon all Loan Parties and all Finance Parties and upon the parties hereto in such respect. In furtherance and not in derogation of the
rights, privileges and immunities of the Collateral Agent therein set forth: 
 (i) The Collateral Agent is authorized to take
all such actions as are provided to be taken by it as Collateral Agent hereunder and all other action reasonably incidental thereto. As to any matters not expressly provided for herein or as to any matters which permit but do not require action by
the Collateral Agent (including, without limitation, the timing and methods of realization upon the Collateral) the Collateral Agent shall act or refrain from acting in accordance with written instructions from the Directing Creditors as
contemplated by the Collateral Agency Agreement or, in the absence of such instructions, subject to the terms of the Collateral Agency Agreement, in accordance with its discretion. 
 (ii) The Collateral Agent shall not be responsible for the existence, genuineness or value of any of the Collateral or for the validity,
perfection, priority or enforceability of the Security Interests in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder unless such action or omission constitutes gross
negligence or willful misconduct. The Collateral Agent shall have no duty to ascertain or inquire as to the performance or observance of any of the terms of this Agreement or any Finance Document by any Loan Party. 
  

 30 

 Section 7.03 Appointment of Co-Collateral Agent. At any time or times, in order to comply with any
legal requirement in any jurisdiction, the Collateral Agent may, in consultation with DRI and, unless an Event of Default shall have occurred and be continuing, with its consent (not to be unreasonably withheld or delayed), appoint another bank or
trust company or one or more other persons, either to act as co-agent or co-agents, jointly with the Collateral Agent, or to act as separate agent or agents on behalf of the Finance Parties with such power and authority as may be necessary for the
effectual operation of the provisions hereof and may be specified in the instrument of appointment (which may, in the discretion of the Collateral Agent, include provisions for the protection of such co-agent or separate agent). Notwithstanding any
such appointment but only to the extent not inconsistent with such legal requirements or, in the reasonable judgment of the Collateral Agent, not unduly burdensome to it or any such co-agent, each Loan Party shall, so long as no Event of Default
shall have occurred and be continuing, be entitled to deal solely and directly with the Collateral Agent rather than any such co-agent in connection with the Collateral Agent’s rights and obligations under this Agreement. 
 Section 7.04 Appointment of Sub-Agents. The Collateral Agent shall have the right to appoint one or more sub-agents for the purpose of retaining
physical possession of the Pledged Shares, Pledged LLC Interests, Pledged Partnership Interests and Pledged Notes, which may be held (in the discretion of the Collateral Agent) in the name of the relevant Loan Party, endorsed or assigned in blank or
in favor of the Collateral Agent or any nominee or custodian of the Collateral Agent or a sub-agent appointed by the Collateral Agent. 
 ARTICLE VIII 
 MISCELLANEOUS 
 Section 8.01 Notices. 
 (a) Unless otherwise specified herein, all notices, requests or other
communications to any party hereunder shall be in writing (including by facsimile transmission) and mailed, faxed or delivered to the address or facsimile number: (i) in the case of Holdings, DRI, Duane Reade, any Subsidiary Guarantor or any
Noteholder or the Trustee, as set forth in Section 13.02 of the Indenture, (ii) in the case of any Term Loan Agent or Term Lender named in any Term Loan Agreement, as set forth in the relevant notice provision of any such Term Loan
Agreement, (iii) in the case of the Collateral Agent, as set forth on the signature pages hereof, (iv) in the case of any Swap Creditor, as set forth in the applicable Swap Agreement or (v) in the case of any party, to such other
address, facsimile number or electronic mail address as such party shall hereafter specify for the purpose of communications hereunder by notice to the other parties hereto. Each such notice, request or other communication shall be effective upon

  

 31 

 
the earlier to occur of (i) actual receipt by the intended recipient and (ii) (A) if delivered by hand or by courier, when signed for by or on
behalf of the intended recipient, (B) if delivered by mail, four Business Days after deposit in the mails, postage prepaid and (C) if delivered by facsimile, when sent and receipt has been confirmed electronically. Rejection or refusal to
accept, or the inability to deliver because of a changed address of which no notice was given shall not affect the validity of notice given in accordance with this Section. 
 (b) This Agreement may be transmitted and/or signed by facsimile and, if so transmitted or signed shall, subject to requirements of Law, have the same
force and effect as a manually-signed original and shall be binding on all Loan Parties, the Collateral Agent and the Finance Parties. The Collateral Agent may also require that this Agreement be confirmed by a manually-signed original hereof;
provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. 
 Section 8.02 No Waivers; Non-Exclusive Remedies. No failure or delay on the part of the Collateral Agent or any Finance Party to exercise, no course of dealing with respect to, and no delay in exercising, any
right, power or privilege under this Agreement or any other Finance Document or any other document or agreement contemplated hereby or thereby shall operate as a waiver thereof nor shall any single or partial exercise of any such right, power or
privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies provided herein and in the other Finance Documents are cumulative and are not exclusive of any other remedies
provided by law. Without limiting the foregoing, nothing in this Agreement shall impair the right of any Finance Party to exercise any right of set-off or counterclaim it may have and to apply the amount subject to such exercise to the payment of
indebtedness of any Loan Party other than its indebtedness under the Finance Documents. Each Loan Party agrees, to the fullest extent it may effectively do so under applicable law, that any holder of a participation in a Finance Obligation, whether
or not acquired pursuant to the terms of any applicable Finance Document, may exercise rights of set-off or counterclaim or other rights with respect to such participation as fully as if such holder of a participation were a direct creditor of the
Loan Party in the amount of such participation. 
 Section 8.03 Compensation and Expenses of the Collateral Agent; Indemnification.

 (a) Expenses. The Loan Parties, jointly and severally, agree to pay (i) all reasonable out-of-pocket expenses of the
Collateral Agent, including fees and disbursements of special and local counsel for the Collateral Agent, in connection with the preparation and administration of this Agreement or any document or agreement contemplated hereby, any waiver or consent
hereunder or any amendment hereof or any Default or alleged Default, (ii) all taxes which the Collateral Agent or any other Finance Party may be required to pay by reason of the security interests granted in the Collateral (including any
applicable transfer taxes) or to free any of the Collateral from the lien thereof, and (iii) if an Event of Default or any payment default (after the expiration of any 

  

 32 

 
applicable grace period) under any Swap Agreement occurs, all out-of-pocket expenses incurred by the Trustee with respect to the Indenture, a Term Loan Agent
with respect to any Term Loan Agreement, in the case of a Swap Agreement, the relevant Finance Party, including (without duplication) the fees and disbursements of counsel, in connection with such Event of Default and collection, bankruptcy,
insolvency and other enforcement proceedings resulting therefrom. 
 (b) Protection of Collateral. If any Loan Party fails to
comply with the provisions of any Finance Document, such that the value of any Collateral or the validity, perfection, rank or value of any Security Interest is thereby diminished or potentially diminished or put at risk, after notice to such Loan
Party (unless in the reasonable judgment of the Collateral Agent, notice is impractical) the Collateral Agent if requested by the Directing Creditors may, but shall not be required to, effect such compliance on behalf of such Loan Party, and the
Loan Parties shall reimburse the Collateral Agent for the costs thereof on demand. Any and all excise, property, sales and use taxes imposed by any state, federal or local authority on any of the Collateral, or in respect of periodic appraisals of
the Collateral, or in respect of the sale or other disposition thereof shall be borne and paid by the Loan Parties. If any Loan Party fails to promptly pay any portion thereof when due, the Collateral Agent may, at its option, but shall not be
required to, pay the same and charge the Loan Parties’ account therefor, and the Loan Parties agree to reimburse the Collateral Agent therefor on demand. All sums so paid or incurred by the Collateral Agent for any of the foregoing and any and
all other sums for which any Loan Party may become liable hereunder and all costs and expenses (including attorneys’ fees, legal expenses and court costs) reasonably incurred by the Collateral Agent or any Noteholder or Term Lender in enforcing
or protecting the Security Interests or any of their rights or remedies under this Agreement, shall, together with interest thereon from demand and until paid at the rate applicable to interest at the highest rate applicable under the Finance
Documents in respect of overdue obligations, be additional Finance Obligations hereunder. 
 (c) Indemnification. Each Loan
Party agrees to indemnify the Collateral Agent, each other Finance Party and their respective Affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact and their respective successors and assigns (each, an
“Indemnitee” and, collectively, “Indemnitees”) and hold each Indemnitee harmless 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 any other Collateral Document or in any other way connected with the enforcement of any of the
terms of, or the preservation of any rights hereunder, or in any way relating to or arising out of the ownership, purchasing, delivery, control, acceptance, financing, possession, sale, return or other disposition of the Collateral, the violation of
the laws of any country, state or other governmental body or unit, or any tort or contract claim; provided that no Indemnitee shall have the right to be indemnified hereunder for such Indemnitee’s own gross negligence or willful
misconduct as 

  

 33 

 
determined by a court of competent jurisdiction in a final, non-appealable judgment or order. Each Loan Party agrees that upon written notice by any
Indemnitee of the assertion of such a liability, obligation, loss, damage, penalty, claim, demand, action, judgment or suit, such Loan Party shall assume full responsibility for the defense thereof. Each Indemnitee agrees to use its best efforts to
notify the Loan Parties of any such assertion of which such Indemnitee has knowledge. 
 (d) Contribution. If and to the extent
that the obligations of any Loan Party under this Section 8.03 are unenforceable for any reason, each Loan Party hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible
under applicable law. 
 (e) Obligations; Survival. Any amounts paid by any Indemnitee as to which such Indemnitee has the
right to reimbursement shall constitute Finance Obligations. The indemnity obligations of the Loan Parties contained in this Section 8.03 shall continue in full force and effect notwithstanding the full payment of all Finance Obligations
and notwithstanding the discharge thereof. 
 Section 8.04 Enforcement. The Finance Parties agree that this Agreement may be enforced
only by the action of the Collateral Agent, acting upon the instructions of the Directing Creditors, if so required under the Collateral Agency Agreement, and that no other Finance Party shall have any right individually to seek to enforce this
Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Collateral Agent for the benefit of the Finance Parties upon the terms of this Agreement and the
Collateral Agency Agreement. 
 Section 8.05 Amendments and Waivers. Any provision of this Agreement may be amended, changed,
discharged, terminated or waived if, but only if, such amendment or waiver is in writing and is signed by each Loan Party affected by such amendment, change, discharge, termination or waiver (it being understood that the addition or release of any
Loan Party hereunder shall not constitute an amendment, change, discharge, termination or waiver affecting any Loan Party other than the Loan Party so added or released and it being further understood and agreed that any supplement to
Schedules I, II, III and IV hereto shall not require the consent of any Loan Party) and by the Collateral Agent (with the consent of the Directing Creditors, the applicable Swap Representative, the Trustee or a Term
Loan Agent as the case may be, to the extent required by the Collateral Agency Agreement). 
 Section 8.06 Successors and Assigns.
This Agreement shall be binding upon each of the parties hereto and inure to the benefit of the Collateral Agent and the Finance Parties and their respective successors and assigns. In the event of an assignment of all or any of the Finance
Obligations, the rights hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness. No Loan Party shall assign or delegate any of its rights and duties hereunder without the prior written consent
of all of the Finance Parties. 
  

 34 

 Section 8.07 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED 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, EXCEPT AS OTHERWISE REQUIRED BY MANDATORY
PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED BY THE LAWS OF ANY JURISDICTIONS OTHER THAN NEW YORK ARE GOVERNED BY THE LAWS OF SUCH JURISDICTIONS. 
 Section 8.08 Limitation of Law; Severability. 
 (a) All rights, remedies and powers provided in this
Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Agreement are intended to be subject to all applicable mandatory provisions of law which may be
controlling and be limited to the extent necessary so that they will not render this Agreement invalid, unenforceable in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law. 
 (b) If any provision hereof is invalid or unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions
hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Collateral Agent and the Finance Parties in order to carry out the intentions of the parties hereto as nearly as may be possible and
(ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provisions in any other jurisdiction. 
 Section 8.09 Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the
same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective with respect to each Loan Party when the Collateral Agent shall receive counterparts hereof executed by itself and such Loan
Party. 
 Section 8.10 Additional Loan Parties. It is understood and agreed that any Affiliate of DRI that is required by any Finance
Document to execute a counterpart of this Agreement after the date hereof shall automatically become a Loan Party hereunder with the same force and effect as if originally named as a Loan Party hereunder by executing an instrument of accession or
joinder substantially in the form of Exhibit G to the Security Agreement and delivering the same to the Collateral Agent. Concurrently with the execution and delivery of such instrument of accession or joinder, such Affiliate shall take
all such actions and deliver to the Collateral Agent all such documents and agreements as such Affiliate would have been required to deliver to the Collateral Agent on or prior to the date of this Agreement had such Affiliate been a party hereto on
the date of this Agreement. Such additional materials shall include, among other things, an opinion of counsel to the extent required under the Indenture or any Term Loan Agreement and supplements to Schedules I, II, III
and IV hereto and to 
  

 35 

 
Schedule 4.01 of the Security Agreement (which Schedules shall thereupon automatically be amended and supplemented to include all
information contained in such supplements) such that, after giving effect to the accession or joinder of such Affiliate, each of Schedules I, II, III and IV hereto and Schedule 4.01 to the Security
Agreement is true, complete and correct with respect to such Affiliate as of the effective date of such accession or joinder. The execution and delivery of any such instrument of accession or joinder, and the amendment and supplementation of the
Schedules hereto as provided in the immediately preceding sentence, shall not require the consent of any other Loan Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding
the addition of any new Loan Party as a party to this Agreement. 
 Section 8.11 Termination; Release of Loan Parties. 
 (a) Termination. Upon the full payment and performance of all Finance Obligations (other than contingent indemnification obligations), the
cancellation or expiration of all outstanding Swap Agreements (or the provision of cash collateral in an amount equal to 100% of the Swap Termination Value thereunder) and the termination of all commitments under the Finance Documents, the Security
Interests shall terminate and all rights to the Collateral shall revert to the Loan Parties. In addition, at any time and from time to time prior to such termination of the Security Interests, the Collateral Agent may release any of the Collateral
or subordinate its Security Interests therein to Liens in favor of certain third parties with the prior written consent of the Directing Creditors or as provided in Article V of the Collateral Agency Agreement. Upon any such termination
of the Security Interests or release of Collateral, the Collateral Agent will, upon request by and at the expense of any Loan Party (and, in the case of a release of Collateral, 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) execute and deliver to such Loan Party such documents as such Loan Party shall reasonably request to evidence the termination
of the Security Interests or the release of such Collateral, as the case may be. Any such documents shall be without recourse to or warranty by the Collateral Agent or the other Finance Parties. The Collateral Agent shall have no liability
whatsoever to any other Finance Party as a result of any release of Collateral by it as permitted by this Section 8.11. Upon any release of Collateral pursuant to this Section 8.11, none of the Finance Parties shall have any
continuing right or interest in such Collateral or the Proceeds thereof. Upon satisfaction and discharge of the Indenture as provided in Article 12 of the Indenture or any similar provision of any other Term Loan Agreement, or legal defeasance
or covenant defeasance of the Indenture as provided in Article 8 of the Indenture or any similar provision of any other Term Loan Agreement, the Note/Term Obligations under the Note Documents and/or the relevant Term Loan Documents, as
applicable, shall be deemed to be paid in full for purposes of Section 8.04, 8.05 and this Section 8.11(a). 
 (b) Release of Loan Parties. If any part of the Collateral (x) is taken by eminent domain, condemnation or other similar circumstances or (y) is sold, transferred, otherwise disposed of (other than any such
disposition to another Loan Party) or liquidated in compliance with the requirements of the Finance Documents (or such 

  

 36 

 
sale, transfer, other disposition or liquidation has been approved in writing by the Directing Creditors), then in each such case, such Collateral shall be
automatically released from the Security Interests created hereby and the Collateral Agent, at the request and expense of such Loan Party, 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) assign, transfer and deliver to such Loan Party (without recourse and without representation or warranty) such of the Collateral as is then being (or has
been) so taken, sold, transferred, disposed of or liquidated as may be in the possession or control of the Collateral Agent and has not theretofore been released pursuant to this Agreement. Further, upon the release of a Guarantor from its
obligations under all guaranties of the Finance Obligations in accordance with the provisions thereof and the other Finance Documents, such Guarantor (and the Collateral assigned by such Guarantor pursuant hereto) shall be automatically released
from this Agreement and the Collateral Agent will, upon request by and at the expense of such Guarantor, execute and deliver to such Guarantor such documents as such Guarantor shall reasonably request to evidence the release of such Guarantor and
such Collateral. 
 (c) Other Releases. If property that constitutes either (A) all or substantially all of the Collateral
securing Finance Obligations or (B) less than all or substantially all of the Collateral securing Finance Obligations is released with the consent of the Directing Creditors in accordance with the Collateral Agency Agreement, then in each such
case, the Collateral Agent, at the request and expense of such Loan Party, 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) duly release from the security interest created hereby and assign, transfer and deliver to such Loan Party (without recourse and without representation or warranty) such of the Collateral as is then being (or has
been) so released as may be in the possession or control of the Collateral Agent and has not theretofore been released pursuant to this Agreement, and execute and deliver to such Loan Party such documents as such Loan Party may reasonably request to
evidence the release of such Collateral. If, in the case of any or all of the Revolving Lender Priority Collateral, a first priority Lien thereon is released by the Revolving Credit Collateral Agent or as otherwise authorized or directed by the
Revolving Credit Collateral Agent (provided, however, that if a Lien securing obligations under the Revolving Credit Agreement is reinstated on any or all of the Revolving Lender Priority Collateral upon which the Lien securing Finance
Obligations has been released pursuant to this sentence then, the Lien securing the Finance Obligations on such Revolving Lender Priority Collateral will also be deemed reinstated on a second priority basis), such Revolving Lender Priority
Collateral shall be automatically released from the Security Interests created hereby and the Collateral Agent, at the request and expense of such Loan Party, 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) execute and deliver to such Loan Party such documents as such Loan Party may reasonably request to evidence the release of such
Revolving Lender Priority Collateral. In addition, if any Capital Stock or other securities shall, after the Issue Date, meet the criteria of any of clauses (w), (x) or (y) of the proviso of 

  

 37 

 
Section 2.01, such Capital Stock or other securities shall automatically be deemed to be released from the Collateral and the Lien of this
Agreement and the Collateral Agent shall promptly after receipt of an Officer’s Certificate deliver such Capital Stock or other securities then in its possession to the applicable Loan Party together with such releases and other documents as
may be reasonably requested by such Loan Party. 
 Section 8.12 Entire Agreement. This Agreement and the other Collateral Documents
constitute the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, and any contemporaneous oral agreements and understandings relating to the subject matter
hereof and thereof. 
 Section 8.13 Existing Senior Secured Notes. For the avoidance of doubt, this Agreement and the security
interest granted herein shall not be construed to secure the Existing Senior Secured Notes. 
 Section 8.14 Revolving Credit Collateral
Agent. Notwithstanding anything herein to the contrary, until such time as the Revolving Loan Obligations have been irrevocably paid in full and all commitments thereunder terminated, the requirements of this Agreement to endorse, assign,
deliver or grant control over Revolving Lender Priority Collateral to the Collateral Agent shall be deemed satisfied by endorsement, assignment, delivery or granting of control of such Revolving Lender Priority Collateral to the Revolving Credit
Collateral Agent for all purposes hereunder. 
 [Signature Pages Follow] 
  

 38 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

									
	LOAN PARTIES:	 	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., its General Partner
				
		 		 	By:	 	/s/ John K. Henry
		 		 		 	Name:	 	John K. Henry
		 		 		 	Title:	 	 Senior Vice President and
 Chief Financial Officer

			
		 		 	By: DRI I Inc., its 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

									
	COLLATERAL AGENT:	 		 	 U.S. BANK NATIONAL ASSOCIATION,
 as
Collateral Agent

				
		 		 	By:	 	/s/ Susan C. Merker
		 		 		 		 	Name: Susan C. Merker
		 		 		 		 	Title:   Vice President
				
		 		 		 	 Attention:     Susan C. Merker
 Telephone:   (860) 241-6815
 Telecopier:   (860) 241-6897

 SCHEDULE I 
 LIST OF PLEDGED SHARES 
 HOLDINGS 
  

															
	 Issuer
	  	Class
of Stock	  	Certificate
Number, if
Applicable	  	Par
Value	  	Number
of Shares	  	Percentage
of Class
Represented
By Pledged
Shares	 	 	Type of
Investment
Property
	 Duane Reade Inc.
	  	Common Stock	  	002	  	$	.01/share	  	100	  	100	% 	 	Certificated Security
							
	DRI	  		  		  			  		  			 	
							
	 Issuer
	  	Class
of Stock	  	Certificate
Number, if
Applicable	  	Par
Value	  	Number
of Shares	  	Percentage
of Class
Represented
By Pledged
Shares	 	 	Type of
Investment
Property
	 DRI I Inc.
	  	Common Stock	  	2	  	$	.01/share	  	1,000 Common Shares	  	100	% 	 	Certificated Security
	 Duane Reade Realty, Inc.
	  	Common Stock	  	5	  	$	.01/share	  	1,000 Common Shares	  	100	% 	 	Certificated Security

 SCHEDULE II 
 LIST OF PLEDGED NOTES 
 Revolving Credit Agreement, dated as of January 1, 2000, by and between Duane
Reade and Duane Reade International, LLC (formerly Duane Reade International, Inc.), as amended pursuant to a First Amendment to Revolving Credit Agreement dated as of January 1, 2005 and a Second Amendment to Revolving Credit Agreement dated
as of July 1, 2008. 

 SCHEDULE III 
 LIST OF PLEDGED LLC INTERESTS 
 DRI: 
 Limited liability company interests of Duane Reade International, LLC, pursuant to the Limited Liability Company Agreement of Duane Reade International, LLC, dated as of July 23, 2009. 

 SCHEDULE IV 
 LIST OF PLEDGED PARTNERSHIP INTERESTS 
 DRI 
  

										
	 Issuer
	  	Class of
Interest	  	Certificate
Numbers,
if
Applicable	  	Percentage
of Class
Represented
by Pledged
LLC
Interests	 	 	Type of Investment
Property
	 Duane Reade
	  	partnership	  	n/a	  	99	% 	 	General Intangible

 DRI I 
  

										
	 Issuer
	  	Class of
Interest	  	Certificate
Numbers,
if
Applicable	  	Percentage
of Class
Represented
by Pledged
LLC
Interests	 	 	Type of Investment
Property
	 Duane Reade
	  	partnership	  	n/a	  	1	% 	 	General Intangible

 Schedule 3.04 to the Pledge Agreement 
 CONSENTS 
 A change of ownership or control of Duane Reade, Inc., Duane Reade or other
affiliated entities that hold permits, licenses or registrations with Governmental Authorities or that are parties to provider agreements with Governmental Authorities may trigger reporting obligations. Specifically, the occurrence of a change of
ownership or control (the definitions of which vary pursuant to applicable statutes and regulations) may require the filing of appropriate notifications and applications with Governmental Authorities, including, but not limited to, the following:

  

	 	1.	The Centers for Medicare and Medicaid Services – Medicare Provider Agreement; 

  

	 	2.	The U.S. Drug Enforcement Administration – DEA Registration; 

  

	 	3.	The State of New Jersey Department of Human Services, Division of Medical Assistance and Health Services – Medicaid Provider Agreement; 

  

	 	4.	The State of New Jersey, Department of Law and Public Safety, Division of Public Affairs, Board of Pharmacy – Licensure; 

  

	 	5.	The New York State Medicaid Department – Medicaid Provider Agreement; and 

  

	 	6.	The New York State Education Department, Office of the Professions – Licensure. 

 EXHIBIT A 
 to 
 PLEDGE AGREEMENT 
 Form of Issuer Control Agreement 
 CONTROL AGREEMENT dated as of
[As of DATE] among [LOAN PARTY NAME], [COLLATERAL AGENT NAME], as Collateral Agent, and [ISSUER NAME]. 
 [Loan Party Name], [Loan Party
Description] (together with its successors and permitted assigns, the “Loan Party”), and [Collateral Agent Name], as Collateral Agent (together with its successor or successors in such capacity, the “Collateral
Agent”), propose to enter into a Pledge Agreement dated as of August 7, 2009 (as the same may be amended, supplemented or modified from time to time, the “Pledge Agreement”), under which the Loan Party will pledge to
the Collateral Agent, and will grant a security interest in favor of the Collateral Agent in, all right, title and interest of the Loan Party in, to and under any and all (i) Uncertificated Securities (as defined in the Pledge Agreement),
(ii) Partnership Interests (as defined in the Pledge Agreement) and (iii) LLC Interests (as defined in the Pledge Agreement), in each case issued from time to time by [Issuer Name], [Issuer Description] (together with its successors, the
“Issuer”), whether now existing or hereafter from time to time acquired by the Loan Party (all of such Uncertificated Securities, Partnership Interests and LLC Interests being herein collectively referred to as the “Pledged
Interests”) to secure the payment and performance of the Finance Obligations (as defined in the Pledge Agreement). Capitalized terms defined or otherwise used in the Pledge Agreement and not otherwise defined herein have, as used herein,
the respective meanings provided for therein. 
 The Loan Party desires that the Issuer enter into this Agreement to perfect the security
interest of the Collateral Agent in the Pledged Interests, to vest in the Collateral Agent control of the Pledged Interests and to provide for the rights of the parties under this Control Agreement. 
 Accordingly, the parties hereto agree as follows: 
 1. Control by the Collateral Agent. The Loan Party hereby irrevocably agrees that, for so long as this Control Agreement remains in effect, the Collateral Agent shall have exclusive control of the Pledged Interests. In
furtherance of such agreement, the Loan Party hereby irrevocably authorizes and directs the Issuer, and the Issuer hereby agrees, (i) to comply with any and all instructions (within the meaning of Section 8-102(a)(12) of the UCC)
originated by the Collateral Agent regarding any or all of the Pledged Interests without further consent by the Loan Party or any other Person, and (ii) subject to the provisions of Section 2 of this Control Agreement, (A) not
to comply with any instructions regarding any or all of the Pledged Interests originated by any Person other than the Collateral Agent or a court of competent jurisdiction and (B) to distribute as instructed by the Collateral Agent all
interest, redemptions, distributions, dividends and other payments from time to time paid with respect to any Pledged Interests. In the case of any conflict between any instruction originated by the Collateral Agent and any instruction originated by
any other Person, the Issuer shall comply only with the instruction originated by the Collateral Agent. 

 2. Maintenance of Pledged Interests. In addition to, and not in lieu of, the obligation of
the Issuer to honor instructions and entitlement orders as agreed in Section 1 hereof, the Issuer agrees follows: 
 (a) Subject
to the rights of the Loan Party described herein, the Issuer agrees that, from and after the date hereof, the Pledged Interests shall be under the exclusive dominion and control of the Collateral Agent. 
 (b) Upon notice by the Collateral Agent, the Issuer shall notify the Loan Party that the Pledged Interests are subject to the sole control of the
Collateral Agent and, thereafter, the Issuer will not accept any direction or instructions with respect to the Pledged Interests from any Person other than the Collateral Agent, unless otherwise ordered by a court of competent jurisdiction.

 (c) Until such time as the Issuer receives a notice of sole control delivered by the Collateral Agent in accordance with
Section 2(b) above, the Loan Party may exercise all voting rights pertaining to the Pledged Interests. 
 (d) Until such time as
the Issuer receives a notice of sole control delivered by the Collateral Agent in accordance with Section 2(b) above, the Loan Party may direct the Issuer with respect to the distribution of interest, redemptions, distributions,
dividends and other payments on Pledged Interests. 
 (e) All material notices, statements of accounts, reports, prospectuses, financial
statements and other communications to be sent to the Loan Party by the Issuer in respect of the Issuer will also be sent to the Collateral Agent at the following address: 
 [COLLATERAL AGENT NOTICE ADDRESS] 
 3. No Liability of Issuer. This Control Agreement shall
not subject the Issuer to any obligation or liability except as expressly set forth herein. In particular, the Issuer need not investigate whether the Collateral Agent is entitled under the Pledge Agreement or otherwise to give an instruction or
notice of sole control. 
 4. Representations and Warranties of the Issuer. The Issuer hereby represents and warrants that:

 (a) Except for the claims and interests of the Collateral Agent and the Loan Party in the Pledged Interests, the Issuer does not know of
any claim to, or interest in, any Pledged Interests. If any Person asserts any Lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against any Pledged Interest, the
Issuer will promptly notify the Collateral Agent and the Loan Party thereof. 
  

 2 

 (b) The security interest of the Collateral Agent in the Pledged Interests has been registered on the
books and records of the Issuer. 
 (c) There are no other agreements entered into between the Issuer and the Loan Party with respect to the
Pledged Interests, and the Issuer has not entered into, and until the termination of this Control Agreement will not enter into, any agreement with any other Person relating to the Pledged Interests pursuant to which it has agreed or will agree to
comply with instructions originated by such other Person. 
 (d) This Control Agreement constitutes a valid and binding agreement of the
Issuer, enforceable against the Issuer in accordance with its terms. 
 (e) The pledge by the Loan Party of, and the granting by the Loan
Party of a security interest in, the Pledged Interests to the Collateral Agent does not violate the charter, by-laws, partnership agreement, operating agreement or any other agreement governing the Issuer or the Pledged Interests. 
 (f) The Pledged Interests are fully-paid and nonassessable. 
 5. Notices. All notices, requests or other communications to any party hereunder shall be in writing (including bank wire, telex, facsimile transmission or similar writing) and shall be given to such
party: 
 (i) in the case of the Collateral Agent, at: 
 [Collateral Agent Notice Address]; 
 (ii) in the case of the Loan Party, at: 
 [Loan Party Notice Address]; and 
 (iii) in the case of the Issuer, at: 
 [Issuer Notice Address]. 
 Each such notice, request or other communication shall be effective (i) if given by telex,
when such telex is transmitted to the telex number specified in this paragraph and the appropriate answerback is received, (ii) if given by facsimile transmission, when transmitted to the facsimile number specified in this paragraph and
confirmation of receipt is received, (iii) if given by mail, 48 hours after such communication is deposited, certified mail, return receipt requested, in the mails with appropriate first class postage prepaid, addressed as aforesaid or
(iv) if given by other means, when delivered at the address specified in this paragraph. Rejection or refusal to accept, or the inability to deliver because of a changed address of which no notice was given shall not affect the validity of
notice given in accordance with this paragraph. 
  

 3 

 6. Conflict with Other Agreements. In the event of any conflict between this Control
Agreement (or any portion hereof) and any other agreement now existing or hereafter entered into, the terms of this Control Agreement shall prevail. 
 7. Amendments and Waivers. Any provision of this Control Agreement may be amended, changed, discharged, terminated or waived if, but only if, such amendment, change, discharge, termination or waiver is
in writing and is signed by the Collateral Agent, the Issuer and the Loan Party. 
 8. Successors and Assigns. This Control
Agreement shall be binding upon each of the parties hereto and inure to the benefit of the Collateral Agent and the other Finance Parties and their respective successors and assigns. In the event of an assignment of all or any of the Finance
Obligations, the rights hereunder, to the extent applicable to the Indebtedness so assigned, may be transferred with such indebtedness. 
 9.
Governing Law. This Control Agreement shall be governed by and construed in accordance with the Laws of the State of New York, except as otherwise required by mandatory provisions of Law. 
 10. Severability. 
 (a) All
rights, remedies and powers provided in this Control Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Control Agreement are intended to be
subject to all applicable mandatory provisions of law which may be controlling and be limited to the extent necessary so that they will not render this Control Agreement invalid, unenforceable in whole or in part, or not entitled to be recorded,
registered or filed under the provisions of any applicable law. 
 (b) If any provision hereof is invalid or unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Collateral Agent and the Finance Parties in
order to carry out the intentions of the parties hereto as nearly as may be possible; and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provisions in
any other jurisdiction. 
 11. Counterparts; Effectiveness. This Control Agreement may be executed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Control Agreement shall become effective when the Collateral Agent shall have received counterparts
hereof executed by itself, the Issuer and the Loan Parties. 
 [Signature Pages Follow] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Control Agreement to be duly executed by their
respective authorized officers as of the day and year first written above. 
  

									
	LOAN PARTY:	 		 	[LOAN PARTY NAME]
				
		 		 	By:	 	 
		 		 		 		 	 Name:
 Title:

			
	ISSUER:	 		 	[ISSUER NAME]
				
		 		 	By:	 	 
		 		 		 		 	 Name:
 Title:

			
		 		 	 [COLLATERAL AGENT NAME],
 as Collateral Agent

				
		 		 	By:	 	 
		 		 		 		 	 Name:
 Title:

 EXHIBIT B to 
 PLEDGE AGREEMENT 
 Account Control Agreement 
 ACCOUNT CONTROL AGREEMENT dated as of [As of Date] among [LOAN PARTY NAME], [COLLATERAL AGENT NAME], as Collateral Agent, and [SECURITIES
INTERMEDIARY NAME]. 
 [Loan Party Name], [Loan Party Description] (together with its successors and permitted assigns, the “Loan
Party”), and [Collateral Agent Name], as Collateral Agent (together with its successor or successors in such capacity, the “Collateral Agent”), propose to enter into a Pledge Agreement dated as of August 7, 2009 (as
the same may be amended, supplemented or modified from time to time, the “Pledge Agreement”), under which the Loan Party will pledge to the Collateral Agent, and will grant a security interest in favor of the Collateral Agent in,
all right, title and interest of the Loan Party in, to and under (i) securities account number [Account Number] (the “Account”) maintained by [Securities Intermediary Name], [Securities Intermediary Description] (together with
its successors and assigns, the “Securities Intermediary”), for the Loan Party, together with (ii) any and all (A) Security Entitlements (as defined in the Pledge Agreement), (B) Investment Property (as defined in the
Pledge Agreement) and (C) other Financial Assets (as defined in the Pledge Agreement), in each case from time to time deposited in or credited to the Account (the Account and all of such Security Entitlements, Investment Property and Financial
Assets being herein collectively referred to as the “Pledged Interests”) to secure the payment and performance of the Finance Obligations (as defined in the Pledge Agreement). Capitalized terms defined or otherwise used in the
Pledge Agreement and not otherwise defined herein have, as used herein, the respective meanings provided for therein. 
 The Loan Party
desires that the Securities Intermediary enter into this Account Control Agreement to perfect the security interest of the Collateral Agent in the Pledged Interests, to vest in the Collateral Agent control of the Pledged Interests and to provide for
the rights of the parties under this Account Control Agreement. 
 Accordingly, the parties hereto agree as follows: 
 1. Control by the Collateral Agent. The Loan Party hereby irrevocably agrees that, for so long as this Account Control Agreement remains in
effect, the Collateral Agent shall have exclusive control of the Account and all Pledged Interests deposited therein or credited thereto. In furtherance of such agreement, the Loan Party hereby irrevocably authorizes and directs the Securities
Intermediary, and the Securities Intermediary hereby agrees, (i) to comply with any and all instructions (within the meaning of Section 8-102(a)(12) of the UCC) and entitlement orders (within the meaning of Section 8-102(a)(8) of the
UCC) originated by the Collateral Agent regarding any or all of the Pledged Interests without further consent by the Loan Party or any other Person, and (ii) subject to the provisions of Section 2 of this Account Control Agreement,
(A) not to comply with any instructions or entitlement orders regarding any or all of the Pledged 

  

 2 

 
Interests originated by any Person other than the Collateral Agent or a court of competent jurisdiction and (B) to deposit or retain in the Account, or
to distribute as otherwise instructed by the Collateral Agent, all interest, redemptions, distributions, dividends and other payments from time to time received or paid with respect to any Pledged Interests deposited in or credited to the Account.
In the case of any conflict between any instruction or entitlement order originated by the Collateral Agent and any instruction or entitlement order originated by any other Person, the Securities Intermediary shall comply only with the instruction
or entitlement order originated by the Collateral Agent. 
 2. Maintenance of Account. In addition to, and not in lieu of, the
obligation of the Securities Intermediary to honor instructions and entitlement orders as agreed in Section 1 hereof, the Securities Intermediary agrees to maintain the Account as follows: 
 (a) Maintenance of Account Generally. Subject to the rights of the Loan Party described herein, the Securities Intermediary agrees that,
from and after the date hereof, the Account shall be under the exclusive dominion and control of the Collateral Agent and all Financial Assets of the Loan Party, whether or not deposited in or credited to the Account, shall be held by the Securities
Intermediary solely for the benefit of the Collateral Agent. The Securities Intermediary shall follow its usual operational procedures for the handling of any Financial Assets or other property of the Loan Party received in the Account and shall
maintain a record of all Financial Assets or other property received in the Account. 
 (b) Notice of Sole Control. Upon notice
by the Collateral Agent, the Securities Intermediary shall notify the Loan Party that the Account is subject to the sole control of the Collateral Agent and, thereafter, the Securities Intermediary will not accept any direction, instructions or
entitlement orders with respect to the Account or the Pledged Interests on deposit therein or credited thereto from any Person other than the Collateral Agent, unless otherwise ordered by a court of competent jurisdiction. 
 (c) Registration of Securities, Etc. All Securities or other property underlying any Financial Assets deposited in or credited to the
Account shall be registered in the name of the Securities Intermediary, endorsed to the Securities Intermediary or in blank or credited to another Securities Account or Securities Accounts maintained in the name of the Securities Intermediary, and
in no case will any Financial Asset deposited in or credited to the Account be registered in the name of the Loan Party, payable to the order of the Loan Party or specially indorsed to the Loan Party, except to the extent the foregoing have been
specially indorsed by the Loan Party to the Securities Intermediary or in blank. 
 (d) Voting Rights. Until such time as the
Securities Intermediary receives a notice of sole control delivered by the Collateral Agent in accordance with Section 2(b) above, the Loan Party may direct the Securities Intermediary with respect to the voting of any Pledged Interests
deposited in or credited to the Account. 
  

 3 

 (e) Permitted Investments. Until such time as the Securities Intermediary receives a notice
of sole control delivered by the Collateral Agent in accordance with Section 2(b) above, the Loan Party may direct the Securities Intermediary with respect to the selection of Investments to be made in the Account; provided,
however, that the Securities Intermediary shall not honor any instruction to purchase any Investments other than those permitted pursuant to the Indenture and all Term Loan Agreements, if any. 
 (f) Interest and Dividends. Until such time as the Securities Intermediary receives a notice of sole control delivered by the Collateral
Agent in accordance with Section 2(b) above, the Loan Party may direct the Securities Intermediary with respect to the retention and/or distribution of interest, redemptions, distributions, dividends and other payments on Pledged
Interests deposited in or credited to the Account. 
 (g) Statements and Confirmations. Copies of all notices, statements of
accounts, reports, confirmations, prospectuses, financial statements and other communications concerning the Account and/or any Pledged Interests deposited therein or credited thereto shall be sent by the Securities Intermediary to each of the Loan
Party and the Collateral Agent at their respective addresses referred to in Section 7 below. 
 (h) Tax Reporting.
All items of income, gain, expense and loss recognized in the Account shall be reported to the Internal Revenue Service and all state and local taxation authorities under the name and taxpayer identification number of the Loan Party. 
 3. Financial Assets Election. The Securities Intermediary and each other party hereto hereby agrees that each item of property (whether
Investment Property, Financial Asset, Security, Instrument or cash) deposited in or credited to the Account shall constitute a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC. 
 4. No Liability of Securities Intermediary. This Account Control Agreement shall not subject the Securities Intermediary to any obligation
or liability except as expressly set forth herein. In particular, the Securities Intermediary need not investigate whether the Collateral Agent is entitled under the Pledge Agreement or otherwise to give an entitlement order, instructions or notice
of sole control. 
 5. Subordination of Lien; Waiver of Set-Off. If the Securities Intermediary has or subsequently obtains by
agreement, operation of law or otherwise a security interest in the Account or any Pledged Interest deposited therein or credited thereto, the Securities Intermediary hereby agrees that such security interest shall be subordinate to the Security
Interest of the Collateral Agent. The Pledged Interests and other items deposited in or credited to the Account will not be subject to deduction, set-off, banker’s lien or any other right in favor of any other Person other than the Collateral
Agent (except that the Securities Intermediary may set off (i) all amounts due to the Securities Intermediary in respect of customary fees and expenses for the routine maintenance and operation of the Account, (ii) the face amount of any
checks which have been credited to the Account but are subsequently returned unpaid because of uncollected or insufficient funds and (iii) the purchase price of any property purchased for the Account). 
  

 4 

 6. Representations and Warranties of the Securities Intermediary. The Securities
Intermediary hereby represents and warrants that: 
 (a) The Securities Intermediary has established the Account in the name of
“[Collateral Agent Name], as Collateral Agent”, and the Securities Intermediary shall not change the name or account number of the Account without the prior written consent of the Collateral Agent. 
 (b) The Account is a “securities account” as defined in Section 8-501(a) of the UCC, and the Securities Intermediary is a “securities
intermediary” as defined in Section 8-102(a)(14) of the UCC and is acting in such capacity in connection with the Account and this Account Control Agreement. 
 (c) Except for the claims and interest of the Collateral Agent and of the Loan Party in the Pledged Interests, the Securities Intermediary does not know of any claim to, or interest in, the Account or in any Pledged
Interest deposited therein or credited thereto. If any Person asserts any Lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Account or any Pledged Interest
deposited therein or credited thereto, the Securities Intermediary will promptly notify the Collateral Agent and the Loan Party thereof. 
 (d) There are no other agreements entered into between the Securities Intermediary and the Loan Party with respect to the Account or any Pledged Interest deposited therein or credited thereto, and the Securities Intermediary has not entered
into, and until the termination of this Account Control Agreement will not enter into, any agreement with any other Person relating to the Account and/or any Pledged Interests deposited therein or credited thereto pursuant to which it has agreed or
will agree to comply with instructions or entitlement orders originated by such other Person. 
 (e) This Account Control Agreement
constitutes a valid and binding agreement of the Securities Intermediary, enforceable against the Securities Intermediary in accordance with its terms. 
 7. Notices. All notices, requests or other communications to any party hereunder shall be in writing (including bank wire, telex, facsimile transmission or similar writing) and shall be given to such
party: 
 (i) in the case of the Collateral Agent, at: 
 [Collateral Agent Notice Address]; 
  

 5 

 (ii) in the case of the Loan Party, at: 
 [Loan Party Notice Address]; and 
 (iii) in the case of the Issuer, at: 
 [Issuer Notice Address]. 
 Each such notice, request or other communication shall be effective (i) if given by telex, when such telex is transmitted to the telex number specified in this
paragraph and the appropriate answerback is received, (ii) if given by facsimile transmission, when transmitted to the facsimile number specified in this paragraph and confirmation of receipt is received, (iii) if given by mail, 48 hours
after such communication is deposited, certified mail, return receipt requested, in the mails with appropriate first class postage prepaid, addressed as aforesaid or (iv) if given by other means, when delivered at the address specified in this
paragraph. Rejection or refusal to accept, or the inability to deliver because of a changed address of which no notice was given shall not affect the validity of notice given in accordance with this paragraph. 
 8. Indemnification of Securities Intermediary. The Loan Party agrees that (i) the Securities Intermediary is released from any and all
liabilities to the Loan Party arising from the terms of this Account Control Agreement and the compliance by the Securities Intermediary with the terms hereof, except to the extent that such liabilities arise from the Securities Intermediary’s
bad faith, willful misconduct or gross negligence and (ii) the Loan Party, its successors and permitted assigns shall at all times indemnify the Securities Intermediary, its affiliates and the respective directors, officers, trustees, agents
and employees of the foregoing (each an “Indemnitee”) and hold each Indemnitee harmless 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 Account Control Agreement or in any other way connected with the enforcement of any of the terms of, or the
preservation of any rights hereunder, or in any way relating to or arising out of the maintenance, delivery, control, acceptance, possession, return or other disposition of the Account or any Pledged Interests on deposit therein or credited thereto,
the violation of the laws of any country, state or other governmental body or unit, or any tort or contract claim; provided that no Indemnitee shall have the right to be indemnified hereunder for such Indemnitee’s own gross negligence or
willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable judgment or order. In performing its duties hereunder, the Securities Intermediary shall be entitled to rely upon notices and other communications it
believes in good faith to have been originated by the appropriate party. 
  

 6 

 9. Conflicts with Other Agreements. In the event of any conflict between this Account
Control Agreement (or any portion hereof) and any other agreement now existing or hereafter entered into, the terms of this Account Control Agreement shall prevail. 
 10. Amendments and Waivers. Any provision of this Account Control Agreement may be amended, modified or waived if, but only if, such amendment or waiver is in writing and is signed by the Loan Party, the
Collateral Agent and the Securities Intermediary. 
 11. Successors and Assigns. This Account Control Agreement shall be
binding upon each of the parties hereto and inure to the benefit of the Collateral Agent and the Finance Parties and their respective successors and permitted assigns. In the event of an assignment of all or any of the Obligations, the rights
hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness. 
 12. Governing
Law. This Account Control Agreement shall be governed by and construed in accordance with the laws of the State of New York, except as otherwise required by mandatory provisions of law. Notwithstanding any provision in any other
agreement, for purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction and the Account (as well as the Security Entitlements related thereto) shall be governed by the laws of the State of
New York. 
 13. Severability. 
 (a) All rights, remedies and powers provided in this Account Control Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of
this Account Control Agreement are intended to be subject to all applicable mandatory provisions of law which may be controlling and be limited to the extent necessary so that they will not render this Account Control Agreement invalid,
unenforceable in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law. 
 (b) If
any provision hereof is invalid or unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in
favor of the Collateral Agent and the Finance Parties in order to carry out the intentions of the parties hereto as nearly as may be possible; and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not
affect the validity or enforceability of such provisions in any other jurisdiction. 
 14. Counterparts; Effectiveness. This
Account Control Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Account Control Agreement shall become
effective when the Collateral Agent shall receive counterparts hereof executed by itself, the Securities Intermediary and the Loan Party. 
  

 7 

 15. Termination. Except as hereinafter set forth, the obligations of the Securities
Intermediary to the Collateral Agent pursuant to this Account Control Agreement shall continue in effect until the Security Interests of the Collateral Agent in the Account have been terminated pursuant to the terms of the Pledge Agreement and the
Collateral Agent has notified the Securities intermediary of such termination in writing. The Collateral Agent agrees to provide such notice of termination upon the request of the Loan Party on or after the termination of the Collateral Agent’s
Security Interest in the Account pursuant to the terms of the Pledge Agreement. The Securities Intermediary may terminate this Account Control Agreement only upon 30 days’ notice to the Collateral Agent, by canceling the Account and
transferring all funds, if any, deposited in or credited to the Account to another Securities Account with another securities intermediary to be designated by the Collateral Agent. After any such termination, the Securities Intermediary shall
nonetheless be obligated promptly to transfer to such other securities intermediary anything from time to time received in the Account. The termination of this Account Control Agreement shall not terminate the Account or alter the obligations of the
Securities Intermediary to the Loan Party pursuant to any other agreement with respect to the Account. 
 [Signature Pages Follow] 

 

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Control Agreement to be duly executed by their
respective authorized officers as of the day and year first written above. 
  

									
	LOAN PARTY:	 		 	[LOAN PARTY NAME]
				
		 		 	By:	 	 
		 		 		 		 	 Name:
 Title:

			
	SECURITIES INTERMEDIARY:	 		 	[SECURITIES INTERMEDIARY NAME]
				
		 		 	By:	 	 
		 		 		 		 	 Name:
 Title:

			
	COLLATERAL AGENT:	 		 	 [COLLATERAL AGENT NAME],
 as Collateral Agent

				
		 		 	By:	 	 
		 		 		 		 	 Name:
 Title:

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