X0202 4 2003-11-10 0 0000895366 DUANE READE DRD 0001241792 CHARBONEAU GARY C/O DUANE READE INC 440 9TH AVENUE NEW YORK NY 10001 0 1 0 0 Senior VP - Sales & Marketing Common Stock 2003-11-10 4 X 0 98000 0 D 55237 D Prepaid Variable Forward Transaction 0 2003-11-10 4 X 0 0 D 2003-11-10 2003-11-10 Common Stock 98000 0 D The transactions reported on this Form 4 represent physical settlement of a Prepaid Variable Forward Transaction that was entered into by the Reporting Person on May 10, 2002 with an unrelated third party (the "Buyer") relating to 98,000 shares of the issuer's common stock and described in the Reporting Person's Form 4 filed via paper submission with the Securities and Exchange Commission on August 28, 2002. The Prepaid Variable Forward Transaction specified a "Floor Price" of $32.64 and a "Cap Price" of $45.70. At settlement, the Reporting Person (since he did not elect cash settlement and the closing price on November 10, 2003 was less than the Floor Price) was obligated to deliver to Buyer 98,000 shares of the issuer's common stock. Pursuant to the Prepaid Variable Forward Transaction, the Reporting Person received a prepayment from Buyer in the amount of $2,670,304 representing the purchase price of the shares subject to the Prepaid Variable Forward Transaction. /s/ Gary Charboneau 2004-11-03