Document:

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                                                                   Exhibit 10.25

                    SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

            THIS AMENDMENT (the "AMENDMENT") is made as of the 1st day of May,
2001 and shall hereby constitute the second amendment to the employment
agreement, dated October 27, 1997, and effective as of June 18, 1997, as amended
on March 13, 2000 (the "AGREEMENT"), and is made by and among Duane Reade Inc.,
a Delaware corporation (the "COMPANY"), and Anthony Cuti (the "EXECUTIVE").
Capitalized terms that are not otherwise defined in this Amendment shall have
the meanings assigned to them in the Agreement.

                                   WITNESSETH:

            WHEREAS, the Executive and the Company entered into the Agreement,
effective June 18, 1997 and Executive is currently employed by the Company under
the Agreement; and

            WHEREAS, pursuant to Section 34 of the Agreement (as numbered prior
to this Amendment), the Company and the Executive may amend the Agreement by an
instrument in writing, signed by the Executive and the Chairman of the Board of
Directors of the Company; and

            WHEREAS, the parties desire to enter into this Amendment, which
Amendment shall, be effective as of the date first set forth above;

            NOW THEREFORE, and in consideration of the foregoing and the mutual
agreements set forth herein, the parties, intending to be legally bound, agree
as follows:

            1. ADDITIONAL RESTRICTIVE COVENANT. in addition to the restrictive
covenants set forth in Section 20 of the Agreement, the Executive hereby agrees
that, during the Tenn of Employment, he will not solicit an invitation for
employment in the food and drug industry from any employer other than the
Company unless he first receives a written waiver of the restriction set forth
in this Section I signed by either David Jaffe, the Chairman of the Compensation
Committee of the Company's Board of Directors (the "BOARD"), or his successor,
or a majority of the members of the Board. The Executive further agrees that if
he receives an unsolicited formal offer of employment in the food and drug
industry from any employer other than the Company, he shall inform either David
Jaffe, the Chairman of the Compensation Committee of the Board, or his
successor, or the Board of his receipt of such offer.

            2. DEFINITION OF "SALE OF THE COMPANY." The definition of Sale of
the Company as set forth in Section 1 of the Agreement is hereby deleted in its
entirety and replaced by the following:

            "SALE OF THE COMPANY" shall mean the consummation of one of the
following events:

            (i) any independent Third Party Is or becomes the Beneficial Owner
      (as defined below), directly or indirectly, of securities of the Company
      representing 30% or more of the combined voting power of the Company's
      then outstanding securities. For purposes of this Agreement, the term
      "BENEFICIAL OWNER" shall have the meaning given to such terms in Rule
      13d-3 under the Exchange Act;
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            (ii) the stockholders of the Company approve a merger or
      consolidation of the Company with any other corporation (or other entity),
      other than a merger or consolidation which would result in the voting
      securities of the Company outstanding immediately prior thereto continuing
      to represent (either by remaining outstanding or by being converted into
      voting securities of the surviving entity) more than 50% of the combined
      voting power of the voting securities of the Company or such surviving
      entity outstanding immedietely after such merger or consolidation;
      PROVIDED, HOWEVER, that a merger or consolidation effected to implement a
      recapitalization of the Company (or similar transaction) in which no
      person acquires more than 25% of the combined voting power of the
      Company's then outstanding securities shall not constitute a Sale of the
      Company;

            (iii) the stockholders of the Company approve a plan of complete
      liquidation of the Company or an agreement for the sale or disposition by
      the Company of all or substantially all of the Company's assets; or

            (iv) DLJ ceases to own at least 1,200,000 shares of Common Stock. A
      Sale of the Company as defined in this subsection (iv) shall hereinafter
      be referred to as a "DLJ Sale".

            3. DEFINITION OF GOOD REASON. The definition of Good Reason, as set
forth in Section 1 of the Employment Agreement, is hereby deleted in its
entirety and replaced by the following:

            "GOOD REASON" shall mean the occurrence of the following:

            (i) a reduction, without the Executive's written consent, in the
      Executive's then current Base Salary, unless such reduction is generally
      applicable to all executives of the Company;

            (ii) removal, without his consent, of the Executive from the
      position of President. Chief Executive Officer or Chairman of the Company
      or assignment, without his consent, to the Executive of any duties
      materially and adversely inconsistent with THE EXECUTIVE'S position as
      President, Chief Executive Officer or Chairman of the Company or any other
      action which results in a material and adverse change in such status,
      offices, titles or responsibilities;

            (iii) the creation of any position within the Company equal to or
      superior to that of the Executive or which does not report to the
      Executive;

            (iv) the failure of the Executive to be reelected as Chairman of the
      Board;

            (v) the relocation of the offices at which the Executive is
      principally employed to a location which requires a commute which is more
      than five miles longer than the commute from the Executive's current home
      in Saddle River, New Jersey to 440 Ninth Avenue, New York, New York, which
      relocation is not approved by the Executive;

            (vi) any material breach by the Company or DLJ of the Employment
      Related Agreements;

            (vii) any voluntary resignation by the Executive for any reason or
      for no stated reason (unless the Company shall then have a basis to
      terminate the Executive for Cause) during the 30-day period beginning six
      months following a Sale of the Company, other than a DLJ Sale; or

            (viii) any voluntary resignation by the Executive FOR any reason or
      FOR no stated reason (unless the Company shall then have a basis to
      terminate the Executive FOR Cause) at any time beginning either (A)
      eighteen months following a DLJ Sale that occurs on or before December 31,
      2001, or (B) twelve months following a DLJ Sale that occurs after December
      31, 2001, PROVIDED, HOWEVER, that at the written request of the Board,
      which request shall be provided to the Executive at least six months prior
      to the end of the

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      applicable eighteen or twelve month period, (A) the Executive shall work
      with his successor to expedite a successful transition and (B) continue to
      serve as Chairman of the Board until the earlier of the end of the
      Continuation period and the date upon which the Board elects to remove him
      from such position.

            4. SETTLEMENT OF DLJ NOTE/FORGIVENESS OF COMPANY NOTE. (a) PRIOR TO
DECEMBER 31, 2001. In the event that on or before December 31, 2001, either (i)
Executive's employment is terminated by the Company without Cause, due to the
Executive's death or Disability or by the Executive with Good Reason or (ii) a
Sale of the Company occurs (either (i) or (ii), a "FORGIVENESS EVENT"), the
Company will:

            (A) pay, on behalf of the Executive, or assume 50% of any interest
and principal balance owed by the Executive with respect to the DLJ Note as of
either the Termination Date or the date of the Sale of the Company, as
applicable; and

            (B) forgive 50% of any interest and principal balance owed by the
Executive with respect to the Company Note as of either the Termination Date or
the date of the Sale of the Company, as applicable.

            (b) AFTER DECEMBER 31, 2001. In the event that either (i) a
Forgiveness Event occurs at any time after December 31, 2001 or (ii) the
Executive's employment is terminated by the Company by reason of notice from the
Company of non-renewal of the Employment Term, the Company will:

            (A) pay, on behalf of the Executive, or assume 100% of any interest
and principal balance owed by the Executive with respect to the DLJ Note as of
either the Termination Date or the date of the Sale of the Company, as
applicable; and

            (B) forgive 100% of any interest and principal balance owed by the
Executive with respect to the Company Note as of either the Termination Date or
the date of the Sale of the Company, as applicable.

            5. Section 15(c) of the Agreement is hereby deleted in its entirety
and replaced by the following:

            (c) The Company will be under no obligation to set aside any funds
with respect to the benefit obligations accruing under the SERP; PROVIDED,
HOWEVER, that the Company agrees that prior to or simultaneous with the first
occurrence, if any, of any of the following:

            (i) any Sale of the Company;

            (ii) the termination of the Executive's employment BY the Company
      without Cause, BY the Executive for Good Reason, or BY reason of the
      Executive's death or Disability;

            (iii) the nonrenewal of this Agreement pursuant to notice
      of nonrenewal by the Company; or

            (iv) the Executive's 65th birthday;

at the Executive's election, one of the following shall occur:

            (A) The Company will establish an irrevocable grantor trust (the
"TRUST") pursuant to a trust

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agreement and fully fund the SERP in an amount equal to the Actuarial Present
Value as of the date of such funding (the "FUNDED AMOUNT"), based on a Term of
Employment which will be deemed to equal 20 years. The amount of interest earned
by the funded Amount will be evaluated annually on or before March 15. In the
event that the Funded Amount has not earned interest during the past year in an
amount equal to or greater than the prevailing rate for ten-year treasury bonds
on the Start Date (the "TREASURY RATE"), the Company will deposit an additional
amount into the grantor trust equal to (i) the amount of interest the Funded
Amount would have earned during the last calendar year at the Treasury Rate,
(ii) less the interest actually earned by the Funded Amount during such period.
The trust agreement WILL provide for a return to the Company of all assets that
remain in the trust after satisfaction of all obligations of the SERP; or

            (B) The Company shall implement such other alternative arrangement
that does not result in a total after-tax economic impact to the Company that is
materially greater than the alternative described in (A) above.

            6. CONTINUING EFFECT OF THE AGREEMENT. The Agreement shall continue
in full force and effect as amended herein.

            7. ATTORNEYS FEES. The Company shall pay or reimburse Executive for
all reasonable legal fees and costs incurred in the drafting, negotiation and
execution of this Amendment. 8. COUNTERPARTS. This Amendment may be executed by
the parties hereto in counterparts, each of which shall be deemed an original,
but both such counterparts shall together constitute one and the same document.

            8. COUNTERPARTS. This Amendment may be executed by the parties
hereto in counterparts, each of which shall be deemed an original, but both
such counterparts shall together constitute one and the same document.

            IN WITNESS WHEREOF, the parties have executed this Amendment as of
the date and year first above written.

                                  THE EXECUTIVE

                                  ---------------------------------------------
                                  Anthony Cuti
                                  440 Ninth Avenue
                                  New York, New York 10001

                                  DUANE READE INC.

                                  By:
                                     ------------------------------------------
                                     Name: Anthony Cuti
                                     Title: Chairman of the Board
                                     (In compliance with the employment
                                     agreement, dated October 27, 1997, and
                                     effective as of June 18, 1997)

                                  By:
                                     ------------------------------------------
                                  Name: David Jaffe
                                  Title: Chairman of the Compensation Committee
                                         of the Board of Directors

                                       4EXHIBIT 4.1

                             (ON COMPANY LETTERHEAD)

                             SUBSCRIPTION AGREEMENT

Ladies and Gentlemen:

     The  undersigned  hereby  subscribes  for o shares of the common stock (the
"Shares") of Second Stage  Ventures,  Inc.  (the  "Corporation")  for a purchase
price of $0.10 per Share (the "Purchase Price").

     The  undersigned  subscriber  (sometimes  hereinafter  referred  to as  the
"Subscriber")  agrees to pay an aggregate of $o as a subscription for the Shares
being purchased hereunder. The entire Purchase Price is due and payable upon the
execution of this subscription agreement, and shall be paid by check, subject to
collection, cashiers check, money order or by wire transfer, made payable to the
order of [Name and  instruction re Agent to receive funds o] trust account,  for
[Name of the  Issuer  o]. The  Corporation  shall have the right to reject  this
subscription in whole or in part.

     The  undersigned  acknowledges  that  the  Shares  being  purchased  are  a
security, and that such security has been registered under the Securities Act of
1933 pursuant to an SB-2 filing with the Securities and Exchange Commission. The
undersigned  represents,  warrants, and agrees as follows:

     (A)  This subscription agreement is and shall be irrevocable.

     (B)  The undersigned has carefully read this  subscription  agreement.  The
          undersigned   has  received  the   accompanying   prospectus   on  the
          Corporation and exhibits  thereto (the  "Disclosure  Materials").  The
          undersigned  has been given the  opportunity  to ask questions of, and
          receive  answers  from,  the  Corporation  concerning  the  terms  and
          conditions of this offering.  The  undersigned has been able to obtain
          such  additional  written  information,  to the extent the Corporation
          possesses such  information  or could acquire it without  unreasonable
          effort or expense,  necessary to verify the accuracy of the  offering,
          as the undersigned  desired in order to evaluate the  investment.  The
          undersigned further  acknowledges that the undersigned has received no
          representations or warranties from the Corporation, the issuers agent,
          or their  respective  employees  or agents in making  this  investment
          decision other than as set forth in the Disclosure Materials.

     (C)  The  undersigned  is  aware  that  the  purchase  of the  Shares  is a
          speculative  investment involving a high degree of risk and that there
          is no guarantee that the  undersigned  will realize any gain from this
          investment,  and  that  the  entire  investment  could  be  lost.

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          (D)  The undersigned  understands that the Shares have been registered
               with the Securities and Exchange Commission.  However, no federal
               or state agency has made any finding or  determination  regarding
               the fairness of this  offering of the Shares for  investment,  or
               any recommendation or endorsement of this offering.

          (E)  The  undersigned,   if  an  individual,  has  adequate  means  of
               providing   for  his  current   needs  and  personal  and  family
               contingencies and has no need for liquidity in this investment in
               the  Shares.  The  undersigned  has no reason to  anticipate  any
               material  change in this  personal  financial  condition  for the
               foreseeable future.

          (F)  The undersigned is financially  able to bear the economic risk of
               this  investment,  including  the  ability  to  hold  the  Shares
               indefinitely  or to afford a complete  loss of the  undersigned's
               investment.

          (G)  The undersigned's  overall  commitment to investments,  which are
               not  readily   marketable,   is  not   disproportionate   to  the
               undersigned's  net worth,  and the  investment in the Shares will
               not cause such overall commitment to become excessive.

          (H)  The  funds  provided  for this  investment  are  either  separate
               property of the  undersigned,  community  property over which the
               undersigned  has the right of control,  or are otherwise funds as
               to which the undersigned has the sole right of management.

          (I)  The address shown under the undersigned's signature at the end of
               this  subscription  agreement  is  the  undersigned's   principal
               residence  if he is an  individual,  or  its  principal  business
               address if a corporation or other entity.

1.   The undersigned  acknowledges that the undersigned  understands the meaning
     and legal  consequences  of the  representations  and warranties  which are
     contained herein.

2.   The undersigned  expressly  acknowledges and agrees that the Corporation is
     relying   upon  the   undersigned's   representations   contained  in  this
     subscription agreement.

3.   The Corporation  represents  that: (a) it is duly and validly  incorporated
     and is validly  existing and in good  standing as a  corporation  under the
     laws of the State of Nevada;  (b) it has all requisite power and authority,
     and all necessary  authorizations,  approvals and orders required as of the
     date hereof, to own its properties and conduct its business as described in
     the  Disclosure  Materials;  (c) it has the  authority  to enter  into this
     subscription  agreement and to be bound by the  provisions  and  conditions
     hereof;  and (d) it is in good  standing  in any other  states  which would
     impose  requirements  as a result  of the  amount of  business  done by the
     Corporation in that state.

                                                                             -2-
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4.   Except as otherwise specifically provided for hereunder,  no party shall be
     deemed to have waived any of his or its rights hereunder or under any other
     agreement,  instrument  or papers signed by any of them with respect to the
     subject  matter hereof unless such waiver is in writing signed by the party
     waiving  said  right.  A waiver on any one  occasion  with  respect  to the
     subject matter hereof shall not be construed as a bar to, or waiver of, any
     right or remedy on any  future  occasion.  All  rights  and  remedies  with
     respect to the subject matter hereof,  whether  evidenced  hereby or by any
     other  agreement,  instrument,  or paper,  will be  cumulative,  and may be
     exercised separately or concurrently.

5.   The parties have not made any representations or warranties with respect to
     the  subject  matter  hereof not set forth  herein,  and this  subscription
     agreement,  together with any instruments executed simultaneously herewith,
     constitutes the entire  agreement  between them with respect to the subject
     matter hereof. All understandings and agreements heretofore had between the
     parties  with  respect  to the  subject  matter  hereof  are merged in this
     subscription  agreement  and any such  instrument,  which  alone  fully and
     completely expresses their agreement.

6.   This  agreement  may not be  changed,  modified,  extended,  terminated  or
     discharged orally, but only by an agreement in writing,  which is signed by
     all of the parties to this agreement.

7.   The parties agree to execute any and all such other and further instruments
     and  documents,  and to take any and all such  further  actions  reasonably
     required  to  effectuate  this  subscription  agreement  and the intent and
     purposes hereof and the betterment of the Corporation.

8.   This  subscription   agreement  shall  be  governed  by  and  construed  in
     accordance   with  the  laws  of  the  State  of  Nevada  the   appropriate
     jurisdiction  within the United States of America.  The undersigned  hereby
     consents to this jurisdiction.

                [THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK]

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Execution by Subscriber

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(Exact name in which title is to held)

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(Signature of Subscriber or authorized signatory of Subscriber)

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Name (please print)

Address:

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(Street Number)           (Street Name)             (Apt. No.)

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(City)                    (State)                   (Zip Code)

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(Social Security Number)

                                                                             -4-

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