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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;6.&amp;#160;&amp;#160;&amp;#160;

      &amp;#160;&amp;#160;Commitments and Contingent Liabilities&lt;/font&gt;

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

      Company and its subsidiaries are subject to a myriad of

      environmental laws, regulations and lease covenants with its

      landlords regarding air, water and land use, products for

      sale, and the use, storage and disposal of hazardous

      materials. The Company believes it substantially complies,

      and has in the past substantially complied, with applicable

      federal, state and local environmental laws and regulations

      and private covenants. The Company cannot, at this time,

      estimate the expense it ultimately may incur in connection

      with any current or future violations; however, it believes

      any such claims will not have a material effect upon either

      the Company&amp;#8217;s consolidated financial position, results

      of operations or cash flows.&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="PARA435"&gt;

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

      Company and its subsidiaries are defendants in a number of

      cases currently in litigation, being vigorously defended, in

      which the complainants seek monetary damages. As of the date

      hereof, no estimate of potential liability, if any, is

      possible. Based upon current information, management, after

      consultation with legal counsel defending the Company&amp;#8217;s

      interests in the cases, believes the ultimate disposition

      thereof will have no material effect upon either the

      Company&amp;#8217;s consolidated financial position, results of

      operations or cash flows.&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="PARA437"&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 Long Beach, California.

      Gelson&amp;#8217;s took possession of the property on March 1,

      2013. The terms of the lease require Gelson&amp;#8217;s to

      extensively remodel the existing store in 2013. In addition,

      Gelson&amp;#8217;s has committed to remodeling the exterior of

      its Sherman Oaks location.&lt;/font&gt;

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