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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;8.&amp;#160;&amp;#160;&amp;#160;&amp;#160;

      &amp;#160;&amp;#160;Subsequent Events&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="PARA445"&gt;

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

      July 19, 2013, the Company paid a regular quarterly cash

      dividend of $0.25 per share on Class&amp;#160;A totaling

      approximately $768,000 to stockholders of record on June 28,

      2013.&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="PARA447"&gt;

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

      July 15, 2013, the Company announced that its Board of

      Directors had initiated a process to explore and evaluate

      strategic alternatives, which may include a possible sale of

      the Company. The Company has retained Moelis &amp;amp; Company as

      its exclusive financial advisor to assist the Company in

      connection with the strategic review process. The Company has

      not made a decision to pursue any specific strategic

      transaction or any other strategic alternative, and there is

      no defined timeline for this strategic review. There can be

      no assurance that the review of strategic alternatives will

      result in the consummation of any transaction. The Company

      does not intend to comment further regarding the evaluation

      of strategic alternatives until such time as the

      Company&amp;#8217;s Board of Directors has determined that

      further disclosure is appropriate or required.&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="PARA449"&gt;

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

      connection with the decision to explore strategic

      alternatives, the Board of Directors adopted the Arden Group,

      Inc. Change in Control Protection Plan (CIC Plan) to ensure a

      smooth transition in the event a qualifying change in control

      is consummated (Change in Control). Under the CIC Plan,

      certain employees of Arden and Gelson&amp;#8217;s are eligible to

      receive various retention and/or severance benefits upon or

      after a Change in Control. Employees eligible to participate

      in the CIC Plan must enter into a letter agreement with the

      Company that sets forth the terms, conditions and amount of

      the participant&amp;#8217;s CIC Plan benefits. Subject to the

      terms and conditions of the CIC Plan, upon a Change in

      Control, a participant under the CIC Plan who remains

      employed through the date of the Change in Control or who is

      terminated without cause or resigns for good reason prior

      thereto would be eligible to receive retention payments and,

      for one year thereafter if terminated without cause, would

      receive specified severance benefits. The Company&amp;#8217;s

      obligation to provide each of the retention and/or severance

      benefits under the CIC Plan is conditioned upon the

      participant providing a general release of claims and

      complying with certain nondisclosure covenants.&lt;/font&gt;

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