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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;5.&amp;#160;&amp;#160;&amp;#160;

      &amp;#160;&amp;#160;Store Openings and Closings&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; MARGIN: 0pt 0pt 0pt 21.6pt" id="PARA425"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;In

      September 2012, Gelson&amp;#8217;s entered into a lease for a

      supermarket location in the marina area of Long Beach,

      California. Gelson&amp;#8217;s took possession of the property on

      March 1, 2013. Gelson&amp;#8217;s is in the process of

      extensively remodeling the site and currently anticipates

      opening a new Gelson&amp;#8217;s supermarket at that location in

      late 2013. The development and actual opening of the

      location, and the costs of remodeling, are subject to normal

      construction uncertainties and the ability to obtain

      necessary governmental approvals among other things.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; MARGIN: 0pt 0pt 0pt 21.6pt" id="PARA427"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;Gelson&amp;#8217;s

      closed its store located in Northridge, California after the

      close of business on February 25, 2012. Effective March 6,

      2012, Gelson&amp;#8217;s reached an agreement with the landlord

      and a third party to assign the lease of the Northridge store

      to the third party. Gelson&amp;#8217;s rent and all other

      obligations under the lease agreement ended May 1, 2012. In

      accordance with the assignment of the lease, various items of

      equipment were transferred by Gelson&amp;#8217;s to the assignee

      and Gelson&amp;#8217;s paid the assignee a lease assignment fee

      of $1,850,000 during the second quarter of 2012. In addition,

      Gelson&amp;#8217;s incurred other closing costs of approximately

      $393,000 during fiscal 2012 to transfer excess product and

      supplies to other Gelson&amp;#8217;s locations, to write off

      product which could not be transferred, to shut down and

      relocate or write off equipment and to maintain the store

      until Gelson&amp;#8217;s was released from its lease obligation.

      Anticipated exit activity costs were recorded on the

      Condensed Consolidated Statement of Comprehensive Income in

      the line titled Loss (Gain) from Exit Activity during 2012.

      These costs were net of the reversal in 2012 of a deferred

      rent liability of $331,000 previously recorded for the

      Northridge location.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; MARGIN: 0pt 0pt 0pt 21.6pt" id="PARA429"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;On

      March 18, 2013, the Company announced its decision to

      terminate the lease for its Gelson&amp;#8217;s location in

      Pasadena, California in accordance with the lease terms. The

      store was closed on June 15, 2013, and Gelson&amp;#8217;s rent

      and all other obligations under the lease agreement ended

      July 21, 2013. Gelson&amp;#8217;s transferred some of the

      fixtures and equipment from the Pasadena location to the new

      Long Beach store discussed above. Gelson&amp;#8217;s has recorded

      closing costs of approximately $170,000 to transfer excess

      product and supplies to other Gelson&amp;#8217;s locations, to

      write off product which could not be transferred, to shut

      down and relocate or dispose of equipment and to maintain the

      store until Gelson&amp;#8217;s was released from its lease

      obligation. These closing costs are included in the Loss

      (Gain) from Exit Activity line on the Condensed Consolidated

      Statement of Comprehensive Income. Active employees at the

      time of closure of the Pasadena store were offered employment

      at other Gelson&amp;#8217;s locations.&lt;/font&gt;

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