Exhibit

10.15




 




NON-OFFICER AND

NON-DIRECTOR STOCK OPTION PLAN




 




OF




 




ARDEN GROUP, INC.




 




1.                                       Purpose




 




The purpose of this Non-Officer and Non-Director Stock

Option Plan of Arden Group, Inc. (the “Plan”) is to secure for Arden Group,

Inc. (the “Company”) the benefits arising from stock ownership by selected

employees of the Company and its subsidiary corporations, who are neither

executive officers nor directors of the Company and who are important to the

success and the growth of the business of the Company.  The Plan will provide a means whereby such

persons will be given an opportunity to purchase shares of the Common Stock of

the Company under stock options.




 




2.                                       Definitions




 




“Act” means the Securities Act of 1933, as amended.




 




“Board” means the Board of Directors of the Company.




 




“Committee” means the Compensation Committee of the

Board.




 




“Company” shall have the meaning set forth in Section

1 hereof.




 




“Common Stock” means shares of the Company’s Class A

Common Stock, $.25 par value.




 




“Fair Market Value” means (i) if the Common Stock is

then listed on a national securities exchange, the closing sales price of the

Common Stock on the day such value is determined on the principal securities

exchange on which such stock is then listed, or if there is no reported sale on

that day, the average of the bid and asked quotations on such exchange on that

day, or (ii) if the Common Stock is then publicly traded in the NASDAQ National

Market System, the closing sales price of the Common Stock as reported by the

NASDAQ National Market System on the day such value is determined, or if there

is no reported sale on that day, the average of the bid and asked quotations on

that day, or (iii) if the Common Stock is then publicly traded in the

over-the-counter market (other than the NASDAQ National Market System), the

mean between the closing bid and asked prices of the Common Stock in the

over-the-counter market on the day such value is determined or, if no shares

were traded that day, on the next preceding day on which there was such a

trade, or (iv) if the Common Stock is not then separately quoted or publicly

traded, the fair market value on the date such value is to be determined, as

determined in good faith by the Committee.




 




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“Grantee” means an employee of the Company or its

subsidiary corporations to whom an Option is granted.




 




“Internal Revenue Code” means the Internal Revenue

Code of 1986, as amended.




 




“Option” means any right to purchase, at a price and

for the Term fixed by the Committee in accordance with the Plan and subject to

such other limitations and restrictions as the Committee may impose, the number

of shares of Common Stock specified by the Committee.




 




“Option Agreement” means a written agreement in a form

approved by the Committee to be entered into by the Company and the Grantee.




 




“Plan” shall have the meaning set forth in Section 1

hereof.




 




“Subsidiary corporation” shall have the definition of

a subsidiary corporation contained in section 424 of the Internal Revenue Code.




 




“Successor” means the legal representative of the

estate of a deceased Grantee or the person or persons who shall acquire the

right to exercise an Option by bequest or inheritance or by reason of the death

of the Grantee.




 




“Term” means the period during which a particular

Option may be exercised.




 




3.                                       Administration

of the Plan




 




(a)                                  The

Plan shall be administered by the Committee.




 




(b)                                 The

Committee shall adopt such rules of procedure as it may deem proper; provided,

however, that it may only take action upon the agreement of a majority of the

whole Committee.  Any action which the

Committee shall take through a written instrument signed by all of its members

shall be as effective as though taken at a meeting duly called and held.




 




(c)                                  The

powers of the Committee shall include plenary authority to interpret the Plan,

and, subject to the provisions hereof, to determine when and to whom Options

shall be granted, the number of shares subject to each Option, the method and

medium of payment and the Term of each Option.




 




(d)                                 The

Committee’s determinations under the Plan need not be uniform and may be made

by it selectively among persons who receive, or are eligible to receive, grants

under the Plan (whether or not such persons are similarly situated).  Without limiting the generality of the

foregoing, the Committee shall be entitled, among other things, to make

non-uniform and selective determinations, and to enter into non-uniform and

selective Option Agreements as to the persons to receive Options under the

Plan.




 




4.                                       Grant

of Options: Number and Source of Shares Subject to the Plan




 




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(a)                                  The

Committee may from time to time grant Options under the Plan for not more than

Seventy Thousand (70,000) shares of Common Stock (subject to adjustment as

provided in Section 11 hereof) which will be provided from authorized and

unissued Common Stock and which are not reserved for some other purpose.




 




(b)                                 The

date of grant of an Option shall be the date specified by the Committee which

date shall not be earlier than the date the Committee action is final.




 




(c)                                  Shares

of Common Stock, as to which Options previously granted shall for any reason

lapse, shall be restored to the total number available for grant of Options.




 




5.                                       Persons

Eligible to Receive Options




 




Options may be granted under the Plan to selected

employees of the Company or one or more of its subsidiary corporations, if

any.  Executive officers or directors of

the Company shall not be eligible to receive Options under the Plan.  Eligibility shall be determined by the

Committee and such determination shall be final and conclusive upon all

persons.




 




6.                                       Option

Price, Payment, and Withholding




 




(a)                                  The

price per share to be paid by the Grantee to the Company upon exercise of an

Option shall be such price as determined by the Committee but shall not be less

than 100% of the Fair Market Value of the shares of Common Stock subject to the

Option on the date such Option is granted. 

The aggregate Option price shall be paid at the time of the exercise of

the Option in full in cash or by check. 

In the sole discretion of the Committee, payment of the aggregate Option

price may be made in whole or in part by delivery by Grantee of shares of

previously acquired Common Stock having a Fair Market Value (determined as of

the date such Option was exercised) equal to all or part of the aggregate

Option price and, if and to the extent applicable, cash or a check for any

remaining portion of the aggregate Option price.




 




(b)                                 In

connection with the exercise of an Option and as a condition of delivery of the

shares issuable upon exercise thereof, the Grantee shall remit or, in

appropriate cases agree to remit when due, an amount sufficient to satisfy all

current or estimated future federal, state and local withholding tax

requirements and any federal social security or other employment tax or other

tax requirements relating thereto.  If

permitted by the Committee in its sole discretion, the Grantee may satisfy, in

whole or in part, the foregoing withholding requirement by delivery of shares

of previously acquired Common Stock having a Fair Market Value (determined as

of the date such Option was exercised) equal to all or part of the aggregate

withholding taxes and, if permissible and applicable, cash or a check payable

to the Company for any remaining portion of the aggregate withholding taxes.




 




(c)                                  If

requested by the Committee, prior to the acceptance of shares of Common Stock

as provided in subparagraph (a) or (b) of this Section 6, the Grantee shall

supply the Committee with written representations and warranties, including

without limitation a representation and warranty that the Grantee has good and

marketable title to such shares free and clear of liens and encumbrances.




 




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(d)                                 The

Committee in its sole discretion may permit a Grantee to elect to pay the

Option price upon exercise of an Option by authorizing a third party to sell

shares of Common Stock (or a sufficient portion of the shares) acquired upon

exercise of such Option and remit to the Company a sufficient portion of the

sale proceeds to pay the entire Option price and any tax withholding resulting

from such exercise.




 




7.                                       Term

of Options; Exercise of Option During Life of Grantee




 




(a)                                  Each

Option granted under the Plan shall not be exercisable during the first year

from the date the Option was granted and shall be exercisable as to (i) no more

than twenty-five percent (25%) of the total number of shares subject to the

Option during the second year from the date the Option was granted, (ii) no

more than fifty percent (50%) of the total number of shares subject to the

Option during the third year from the date the Option was granted, (iii) no

more than seventy-five percent (75%) of the total number of shares subject to

the option during the fourth year from the date the Option was granted and (iv)

all shares subject to the Option from and after the fourth anniversary of the

date the Option was granted.  No Option

granted hereunder shall be for a Term exceeding five (5) years.




 




(b)                                 Subsequent

to the grant of an Option, the Committee may accelerate, at any time before

such Option becomes fully exercisable, the time or times at which such Option

may be exercised in whole or in part.




 




(c)                                  Options

shall be exercised by delivering or mailing to the Company, Attention: Chief

Financial Officer:




 




(i)                                     a

notice, in the form prescribed by the Committee, specifying the number of

shares to be purchased; and




 




(ii)                                  the

total consideration therefor, as specified in the Option Agreement relating

thereto.




 




(d)                                 Upon

receipt of such notice and payment, the Company shall promptly deliver to the

Grantee a certificate or certificates for the shares purchased, without charge

to the Grantee for any issue or transfer tax.




 




(e)                                  The

Committee may postpone any exercise of an Option for such time as the Committee

in its sole discretion may deem necessary or condition the exercise thereof in

such manner as the Committee may determine in order to permit the Company with

reasonable diligence (i) to effect or maintain the listing of such shares on

any securities exchanges or in the NASDAQ Stock Market, or (ii) to effect or

maintain registration or qualification under the Act, or any applicable state

statute, of the Plan or the shares issuable upon the exercise of the Option, or

(iii) to determine that the Plan and issuance of such shares are exempt from

registration or qualification and in connection therewith to require (x) as a

condition of the issuance of shares upon exercise of the Option, that the

Grantee represent and agree that the Grantee is acquiring shares of Common

Stock upon exercise of such Option for investment and without a view to the

distribution or resale thereof in violation of the Act and any applicable state

securities law and (y) that the certificates evidencing such shares bear a

legend setting forth such representation. 

The Company shall not be obligated by virtue of any Option Agreement or

any provision of the 




 




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Plan to recognize the exercise of an Option or to sell or issue shares

in violation of the Act or of the law of any state having jurisdiction

thereof.  Any such postponement shall

not extend the Term of an Option; and neither the Company nor its directors or

officers shall have any obligation or liability to the Grantee of an option, or

to the Grantee’s Successor, with respect to any shares as to which the Option

shall lapse because of such postponement.




 




(f)                                    Unless

the Committee, in its sole discretion, permits otherwise, Options granted under

the Plan shall be nontransferable other than by will or by the laws of descent

and distribution and an Option may be exercised during the lifetime of the

Grantee only by the Grantee.




 




(g)                                 Upon

the exercise of an Option by the Grantee, the stock certificate or certificates

may, at the request of the Grantee, be issued in the Grantee’s name and the

name of another person as joint tenants with right of survivorship.




 




(h)                                 An

Option may contain such other terms, provisions and conditions not inconsistent

with the Plan as may be determined by the Committee.




 




8.                                       Termination

of Option




 




The unexercised portion of any Option granted under

the Plan shall automatically and without notice terminate and become null and

void at the time of the earliest to occur of the following:




 




(a)                                  The

expiration of not more than five (5) years from the date on which such Option

was granted;




 




(b)                                 The

expiration of thirty (30) days from the date of termination (other than a

termination described in Sections 8(d) and (e) below or on account of death) of

the Grantee’s employment with the Company or its subsidiary corporations or

such shorter period as may be determined by the Committee upon the granting

thereof, provided that if the Grantee shall die during such thirty-day (or

shorter) period, the provisions of Section 8(c) below shall apply;




 




(c)                                  The

expiration of one (1) year or such shorter period as may be determined by the

Committee upon the granting thereof, following the date of the Grantee’s death

if such death occurs during his or her employment with the Company or its

subsidiary corporations;




 




(d)                                 The

expiration of one (1) year or such shorter period as may be determined by the

Committee upon the granting thereof, from the date of termination of the

Grantee’s employment with the Company or its subsidiary corporations if such

termination is attributable to a disability of the Grantee within the meaning

of Section 22(e)(3) of the Internal Revenue Code (the Committee shall have the right

to determine whether the Grantee’s termination is attributable to a disability

of the Grantee within the meaning of Section 22(e)(3) of the Internal Revenue

Code, such determination of the Committee to be final and conclusive);




 




(e)                                  Unless

otherwise determined by the Committee upon the granting thereof, the date of

termination of the Grantee’s employment with the Company or its subsidiary 




 




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corporations, if such termination constitutes or is attributable to a

breach by the Grantee of an employment agreement with the Company or its

subsidiary corporations or if the Grantee is discharged for cause (the

Committee shall have the right to determine whether the Grantee has been

discharged for cause and the date of such discharge, such determination of the

Committee to be final and conclusive); and




 




(f)                                    The

expiration of such period of time or the occurrence of such event as the

Committee in its sole discretion may provide upon the granting thereof.




 




9.                                       Right

to Terminate Employment or other Relationship




 




Nothing contained in the Plan or in any Option granted

pursuant to the Plan shall obligate the Company or its subsidiary corporations

to continue to employ or engage any employee in such or in any other capacity

with the Company or its subsidiary corporations, nor confer upon any employee,

any right to continue in the employ of or in any other capacity with the

Company or its subsidiary corporations, nor limit in any way the right of the

Company or its subsidiary corporations to amend, modify or terminate any

person’s compensation or employment agreement, if any, at any time.




 




10.                                 Stockholders’

Rights




 




No person shall have any rights of a stockholder by

virtue of a grant of an Option except with respect to shares actually issued to

that person upon the exercise thereof.




 




11.                                 Adjustments




 




In the event that the shares of stock subject to the

Plan shall be changed into or exchanged for a different number or kind of

shares of stock or other securities of the Company or of another corporation

(whether by reason of merger, consolidation, recapitalization,

reclassification, split-up, combination of shares, or otherwise) or if the

number of such shares of stock shall be increased solely through the payment of

a stock dividend, then there shall be substituted for, or added to, each share

of stock of the Company theretofore appropriated or thereafter subject or which

may become subject to an option under the Plan, the number and kind of shares

of stock or other securities into which each outstanding share of stock of the

Company shall be so changed, or for which each such share shall be exchanged,

or to which each such share shall be entitled, as the case may be.  Outstanding Options shall also be

appropriately amended as to price and other terms as may be necessary to

reflect the foregoing events.  In the

event there shall be any other change in the number or kind of the outstanding

shares of stock of the Company subject to the Plan, or of any stock or other

securities into which such stock shall have been changed, or for which it shall

have been exchanged, then if the Committee, in its sole discretion, determines

that such change equitably requires an adjustment in any Option theretofore

granted or which may be granted under the Plan or the terms, such adjustments

shall be made in accordance with such determination.




 




Fractional shares resulting from any adjustment in

Options pursuant to this Section 11 shall be eliminated.  Notice of any adjustment shall be given by

the Company to each holder of an Option which shall have been so adjusted and

such adjustment (whether or not such notice is given) shall be final and

conclusive for all purposes of the Plan.




 




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The Committee shall have the power, in the event of

any merger or consolidation of the Company with or into any other corporation,

the merger or consolidation of any other corporation into the Company, or the

sale of all or substantially all of the assets and business of the Company to

another corporation, to amend all outstanding Options to permit the exercise of

all such Options prior to the effectiveness of any such merger, consolidation

or sale of assets and to terminate such Options as of such effectiveness.  In such event, the Company shall give

written notice of such amendment and termination to the Grantees of such

Options and such Options shall terminate on such date as may be specified by

the Committee in its discretion, provided, however, that such date shall not be

less than fifteen (15) days after the date of such written notice.  If the Committee shall exercise such power,

all Options then outstanding and subject to such requirement shall be deemed to

have been amended to permit the exercise thereof in whole or in part by the

Grantee at any time or from time to time as determined by the Committee prior

to the effectiveness of such merger, consolidation or sale of assets and such

Options shall be deemed to terminate as specified in the preceding sentence.




 




12.                                 Proceeds

from Sale of Stock




 




Proceeds from the sale of stock pursuant to Options

granted under the Plan shall be added to the general funds of the Company.




 




13.                                 Termination,

Suspension or Modification of Plan




 




The Board may at any time terminate, suspend, or modify

the Plan.  No termination, suspension,

or modification of the Plan shall adversely affect any right acquired by any

Grantee or any Successor under the terms of an Option granted before the date

of such termination, suspension, or modification, unless such Grantee or

Successor shall consent; but it shall be conclusively presumed that any

adjustment for changes in capitalization as provided in Section 11 shall not

adversely affect any such right. 

Subject to the foregoing provisions of this Section 13, the Board

expressly reserves the right, in its sole discretion, to amend or modify the

terms and provisions of the Plan and of any outstanding Options thereunder to

the extent necessary to qualify any or all Options for such favorable federal

income tax treatment (including deferral of taxation upon exercise) as may be

afforded employee stock options under the Internal Revenue Code or any

amendment thereto or other statutes or regulations which become effective after

the effective date of the Plan.




 




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