Document:

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                                                                     EXHIBIT 4.4

                       THIRD AMENDMENT TO RIGHTS AGREEMENT

                  Third Amendment, dated as of March 18, 2001 (this
"Amendment"), to the Rights Agreement, dated as of November 4, 1998, amended as
of April 12, 1999 and as of March 18, 2001 (the "Rights Agreement"), between
True North Communications Inc., a Delaware corporation (the "Company"), and
First Chicago Trust Company of New York, a New York limited trust company (the
"Rights Agent"). Capitalized terms used in this Amendment shall have the
meanings ascribed to them in the Rights Agreement.

                  WHEREAS, the Company and the Rights Agent entered into the
Rights Agreement which, among other things, governs the terms and conditions
under which Rights are exercisable by the holders of Common Stock; and

                  WHEREAS, pursuant to Section 27 of the Rights Agreement, the
Company may from time to time supplement or amend the Rights Agreement in
accordance with the provisions of Section 27 thereof.

                  NOW, THEREFORE, in consideration of the premises and mutual
agreements hereinafter set forth, the parties hereto agree as follows:

                  1.       AMENDMENT OF SECTION 1(a). Section 1(a) of the Rights
Agreement is hereby amended and restated in its entirety as follows:

                           (a) "Acquiring Person" shall mean any Person who or
                  which, together with all Affiliates and Associates of such
                  Person, shall be the Beneficial Owner of 15% or more of the
                  shares of Common Stock then outstanding, but shall not include
                  (i) the Company, (ii) any Subsidiary of the Company, (iii) any
                  employee benefit plan of the Company or of any Subsidiary of
                  the Company or (iv) any Person organized, appointed or
                  established by the Company for or pursuant to the terms of any
                  such plan. Notwithstanding the foregoing, no Person shall
                  become an "Acquiring Person" as the result of an acquisition
                  of shares of Common Stock by the Company which, by reducing
                  the number of shares outstanding, increases the proportionate
                  number of shares beneficially owned by such Person to 15% or
                  more of the shares of Common Stock then outstanding; PROVIDED,
                  HOWEVER, that if a Person, other than those persons excepted
                  in clauses (i), (ii), (iii) or (iv) of the preceding sentence,
                  shall become the Beneficial Owner of 15% or more of the shares
                  of Common Stock then outstanding by reason of purchases of
                  Common Stock by the Company and shall, after such purchases by
                  the Company, become the Beneficial Owner of any additional
                  shares of Common Stock, then such

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                  Person shall be deemed to be an "Acquiring Person".
                  Notwithstanding the foregoing, if the Board of Directors of
                  the Company determines in good faith that a Person who would
                  otherwise be an "Acquiring Person" (as defined pursuant to
                  the foregoing provisions of this paragraph (a)) has become
                  such inadvertently, and such Person divests as promptly as
                  practicable a sufficient number of shares of Common Stock so
                  that such Person would no longer be an "Acquiring Person"
                  (as defined pursuant to the foregoing provisions of this
                  paragraph (a)), then such Person shall not be deemed to be
                  an "Acquiring Person" for any purposes of this Agreement.
                  Notwithstanding anything in this Agreement to the contrary,
                  none of IPG (as hereinafter defined) nor any of its
                  Affiliates or Associates shall be deemed to be an "Acquiring
                  Person" solely as a result of the approval, execution or
                  delivery of, or consummation of the transactions
                  contemplated under, the Agreement and Plan of Merger dated
                  as of March 18, 2001 (as the same may be amended from time
                  to time, the "Merger Agreement"), among The Interpublic
                  Group of Companies, Inc., a Delaware corporation ("IPG"),
                  Veritas Acquisition Corp., a Delaware corporation and a
                  direct wholly owned subsidiary of Parent ("Sub"), and the
                  Company, in the manner provided for therein, including
                  without limitation, the Merger (as defined in the Merger
                  Agreement).

                  2.       AMENDMENT TO SECTION 3(a).  The first  sentence of
Section 3(a) of the Rights Agreement is hereby amended by deleting the sentence
in its entirety and inserting in lieu thereof the following:

                  Until the earliest of (i) the Close of Business on the tenth
                  day after the Stock Acquisition Date (or, if the tenth day
                  after the Stock Acquisition Date occurs before the Record
                  Date, the Close of Business on the Record Date), or (ii) the
                  Close of Business on the tenth Business Day (or such later
                  date as may be determined by action of the Board of Directors
                  of the Company prior to such time as any Person becomes an
                  Acquiring Person) after the date that a tender or exchange
                  offer by any Person (other than the Company, any Subsidiary of
                  the Company, any employee benefit plan of the Company or of
                  any Subsidiary of the Company, or any Person organized,
                  appointed or established by the Company for or pursuant to the
                  terms of any such plan) is first published or sent or given
                  within the meaning of Rule 14d-2(a) of the General Rules and
                  Regulations under the Exchange Act, if upon consummation
                  thereof, such Person would be the Beneficial Owner of 15% or
                  more, (including any such date which is after the date of this

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<PAGE>

                  Agreement and prior to the issuance of the Rights; the
                  earliest of the dates referred to in clauses (i) and (ii)
                  being herein referred to as the "Distribution Date"), (x) the
                  Rights will be evidenced (subject to the provisions of
                  paragraph (b) of this Section 3) by the certificates for the
                  Common Stock registered in the names of the holders of the
                  Common Stock (which certificates for Common Stock shall be
                  deemed also to be certificates for Rights) and not by separate
                  certificates and (y) the Rights will be transferable only in
                  connection with the transfer of the underlying shares of
                  Common Stock (including a transfer to the Company).

                  3. The Summary of Rights to Purchase Preferred Stock attached
to the Rights Agreement as Exhibit C is hereby amended by deleting such exhibit
in its entirety and inserting in lieu thereof Exhibit C attached hereto.

                  4.       EFFECTIVENESS.   This  Amendment  shall  be  deemed
effective immediately after the effectiveness of the Second Amendment, dated
March 18, 2001, to the Rights Agreement. Except as amended hereby, the Rights
Agreement shall remain in full force and effect and shall be otherwise
unaffected hereby.

                  5.       GOVERNING  LAW. This  Amendment  shall be governed by
and construed in accordance with the laws of the State of Delaware.

                  6.       COUNTERPARTS.  This  Amendment may be executed in any
number of counterparts, and each of such counterparts shall be deemed to be an
original, and all such counterparts shall together constitute but one and the
same agreement.

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<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to the Rights Agreement to be duly executed, all as of the date and
year first above written.

                                  TRUE NORTH COMMUNICATIONS INC.

                                  By: /s/ Kevin J. Smith
                                     ------------------------------------
                                     Name:  Kevin J. Smith
                                     Title: Executive Vice President and
                                               Chief Financial Officer

                                  FIRST CHICAGO TRUST COMPANY OF NEW YORK

                                  By: /s/ Lawrence A. Woods
                                     -----------------------------------
                                     Name:  Lawrence A. Woods
                                     Title: Senior Account Manager

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<PAGE>

                                                                       EXHIBIT C

                  SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

                  On November 4, 1998, the Board of Directors of True North
Communications Inc. (the "Company") declared a dividend distribution of one
Right for each outstanding share of the Company's common stock, $.33-1/3 par
value per share ("Common Stock"), to stockholders of record at the close of
business on November 30, 1998. Each Right entitles the registered holder to
purchase from the Company a unit consisting of one two-thousandth of a share (a
"Unit") of Series B Junior Participating Preferred Stock, par value $1.00 per
share (the "Preferred Stock"), of the Company at a price of $100 per Unit (the
"Purchase Price"), subject to adjustment. The description and terms of the
Rights are set forth in a Rights Agreement, dated as of November 4, 1998, as
amended (the "Rights Agreement"), between the Company and First Chicago Trust
Company of New York, as Rights Agent.

                  Initially, the Rights will be attached to all Common Stock
certificates representing shares then outstanding, and no separate Rights
certificates will be distributed. The Rights will separate from the Common Stock
and the Distribution Date will occur upon the earliest of (i) 10 days following
a public announcement that a person or group of affiliated or associated persons
(an "Acquiring Person") has acquired, or obtained the right to acquire,
beneficial ownership of 15% or more of the outstanding shares of Common Stock
(the "Stock Acquisition Date") or (ii) 10 business days (or such later date as
may be determined by action of the Board of Directors prior to such time as any
person or group becomes an Acquiring Person) following the commencement of a
tender offer or exchange offer which, if consummated, would result in a person
or group beneficially owning 15% or more of the outstanding shares of Common
Stock.

                  Until the Distribution Date, (i) the Rights will be evidenced
by the Common Stock certificates and will be transferred with and only with such
Common Stock certificates, (ii) new Common Stock certificates issued on or after
November 30, 1998 will contain a notation incorporating the Rights Agreement by
reference and (iii) the surrender for transfer of any certificates for Common
Stock outstanding will also constitute the transfer of the Rights associated
with the Common Stock represented by such certificate.

                  Pursuant to the Rights Agreement, the Company reserves the
right to require prior to the occurrence of a Triggering Event (as defined
below) that, upon any exercise of Rights, a number of Rights be exercised so
that only whole shares of Preferred Stock will be issued.

                  The Rights are not exercisable until the Distribution Date and
will expire at the close of business on November 30, 2008, unless earlier
redeemed by the Company as described below.

                  As soon as practicable after the Distribution Date, Rights
certificates will be mailed to holders of record of the Common Stock as of the
close of business on the Distribution Date and, thereafter, the separate Rights
certificates alone will represent the Rights. Except as

                                      C-1

<PAGE>

otherwise provided in the Rights Agreement, only shares of Common Stock issued
prior to the Distribution Date will be issued with Rights.

                  In the event that, at any time following the Distribution
Date, a person or group becomes an Acquiring Person, each holder of a Right will
thereafter have the right to receive, upon exercise, Common Stock having a value
equal to two times the exercise price of the Right. If an insufficient number of
shares of Common Stock is authorized for issuance, then the Board would be
required to substitute cash, property or other securities of the Company for the
Common Stock. Notwithstanding any of the foregoing, following the occurrence of
the event set forth in this paragraph, all Rights that are, or (under certain
circumstances specified in the Rights Agreement) were, beneficially owned by any
Acquiring Person will be null and void. However, Rights are not exercisable
following the occurrence of the event set forth in this paragraph until such
time as the Rights are no longer redeemable by the Company as set forth below.

                  For example, at an exercise price of $100 per Right, each
Right not owned by an Acquiring Person (or by certain related parties) following
an event set forth in the preceding paragraph would entitle its holder to
purchase $200 worth of Common Stock (or other consideration, as noted above) for
$100. Assuming that the Common Stock had a per share value of $25 at such time,
the holder of each valid Right would be entitled to purchase eight shares of
Common Stock for $100.

                  In the event that, at any time following the Stock Acquisition
Date, (i) the Company is acquired in a merger or other business combination
transaction in which the Company is not the surviving corporation, (ii) the
Company is acquired in a merger or other business combination transaction in
which the Company is the surviving corporation and all or part of the Common
Stock is converted into securities of another entity, cash or other property, or
(iii) 50% or more of the Company's assets or earning power is sold or
transferred, each holder of a Right (except Rights which previously have been
voided as set forth above) shall thereafter have the right to receive, upon
exercise, common stock of the acquiring company having a value equal to two
times the exercise price of the Right. The events set forth in this paragraph
and in the second preceding paragraph are referred to as the "Triggering
Events."

                  The purchase price payable, and the number of Units of
Preferred Stock or other securities or property issuable, upon exercise of the
Rights are subject to adjustment from time to time to prevent dilution (i) in
the event of a stock dividend on, or a subdivision, combination or
reclassification of, the Preferred Stock, (ii) if holders of the Preferred Stock
are granted certain rights, options or warrants to subscribe for Preferred Stock
or convertible securities at less than the current market price of the Preferred
Stock, or (iii) upon the distribution to holders of the Preferred Stock of
evidences of indebtedness or assets (excluding regular quarterly cash dividends)
or of subscription rights or warrants (other than those referred to above).

                  With certain exceptions, no adjustment in the Purchase Price
will be required until cumulative adjustments amount to at least 1% of the
Purchase Price. No fractional Units will be

                                      C-2

<PAGE>

issued and, in lieu thereof, an adjustment in cash will be made based on the
market price of the Preferred Stock on the last trading day prior to the date of
exercise.

                  At any time after any person or group becomes an Acquiring
Person and prior to the acquisition by such person or group of 50% or more of
the outstanding shares of Common Stock, the Board of Directors of the Company
may exchange the Rights (other than Rights owned by such person or group which
will have become void), in whole or in part, at an exchange ratio of one share
of Common Stock, or one two-thousandth of a share of Preferred Stock (or of a
share of a class or series of the Company's preferred stock having equivalent
rights, preferences and privileges), per Right (subject to adjustment).

                  In general, the Company may redeem the Rights in whole, but
not in part, at a price of $.01 per Right (subject to adjustment and payable in
cash, Common Stock or other consideration deemed appropriate by the Board of
Directors) at any time until ten days following the Stock Acquisition Date.
Immediately upon the action of the Board of Directors authorizing any
redemption, the Rights will terminate and the only right of the holders of
Rights will be to receive the redemption price.

                  Until a Right is exercised, the holder thereof, as such, will
have no rights as a stockholder of the Company, including, without limitation,
the right to vote or to receive dividends. While the distribution of the Rights
will not result in the recognition of taxable income by stockholders or the
Company, stockholders may, depending upon the circumstances, recognize taxable
income after a Triggering Event.

                  The terms of the Rights may be amended by the Board of
Directors of the Company without the consent of the holders of the Rights,
including an amendment to lower certain thresholds described above to not less
than the greater of (i) the sum of .001% and the largest percentage of the
outstanding shares of Common Stock then known to the Company to be beneficially
owned by any person or group of affiliated or associated persons and (ii) 10%,
except that from and after such time as any person or group of affiliated or
associated persons becomes an Acquiring Person no such amendment may adversely
affect the interests of the holders of the Rights.

                  A copy of the Rights Agreement is available free of charge
from the Rights Agent. This description of the Rights does not purport to be
complete and is qualified in its entirety by reference to the Rights Agreement,
which is incorporated herein by reference.

                                      C-3Prepared by MERRILL CORPORATION www.edgaradvantage.com

 
[LOGO] 

Exhibit 4.2.2  

AMENDED AND RESTATED LOAN AGREEMENT  

    THIS AMENDED AND RESTATED LOAN AGREEMENT ("Agreement") is made and entered into as of July 7, 2000 by
and between ARDEN GROUP, INC. a Delaware Corporation ("Borrower") and UNION BANK OF CALIFORNIA,
N.A., ("Bank"). This Agreement amends and restates in its entirety that certain Loan Agreement dated December 23, 1993 and all its amendments including that certain
First Amendment dated October 31, 1994, and that certain Second Amendment dated December 20, 1995, and that certain Third Amendment dated December 18, 1996 and that certain Fourth
Amendment dated January 13, 1997 and that certain Fifth Amendment dated April 30, 1998 (collectively the "Old Agreement") between Bank and Borrower. 

 SECTION 1. THE LOAN  

    1.1.1  The Revolving Loan.  Bank will loan to Borrower an amount not to exceed
Five Million Dollars ($5,000,000) outstanding in the aggregate at any one time (the "Revolving Loan"). Borrower may borrow, repay and reborrow all or part of the Revolving Loan in accordance with the
terms of the Revolving Note. All borrowings of the Revolving Loan must be made on or before July 31, 2002 at which time all unpaid principal and interest of the Revolving Loan shall be due and
payable. The Revolving Loan shall be evidenced by a promissory note (the "Revolving Note") on the standard form used by Bank for commercial loans. Bank shall enter each amount borrowed and repaid in
Bank's records and such entries shall be deemed to be the amount of the Revolving Loan outstanding absent any manifest errors. Omission of Bank to make any such entries shall not discharge Borrower of
its obligation to repay in full with interest all amounts borrowed. 

    1.1.1.2  The Standby L/C Sublimit.  As a sublimit to the Revolving Loan, Bank
shall issue, for the account of Borrower, one or more irrevocable, standby letters of credit (individually, an "L/C" and collectively, the "L/Cs"). All such standby L/Cs shall be drawn on such terms
and conditions as are acceptable to Bank. The aggregate amount available to be drawn under all outstanding L/Cs and the aggregate amount of unpaid reimbursement obligations under drawn L/Cs shall not
exceed Five Million Dollars ($5,000,000) and shall reduce, dollar for dollar, the maximum amount available under the Revolving Loan. No standby L/C shall have an expiry date more than twelve
(12) months from its date of issuance and each L/C shall be governed by the terms of (and Borrower agrees to execute) Bank's standard form for standby L/C applications and reimbursement
agreements. No L/C shall expire after July 31, 2003. 

    1.1.2  Term Loans.  Bank previously made three term loans ("Term Loans") to
Borrower, with maturity dates of December 27, 2000, December 31, 2002, and November 1, 2004. The current outstanding principal amount of the December 27, 2000 Term Loan is
Two Hundred Seventy Five Thousand Dollars and Eighteen Cents ($275,000.18). The current outstanding principal amount of the December 31, 2002 Term Loan is One Million Two Hundred
Ninety-One Thousand Six Hundred Sixty-Six Dollars and Fifty-Seven Cents ($1,291,666.57). The current outstanding principal amount of the November 1, 2004 Term Loan is
Four Million One Hundred Ninety-Five Thousand Eighth Hundred Thirty-Three Dollars and Thirty Eight Cents ($4,195,833.38). Each of 

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these Term Loans are evidenced by an individual promissory note ("Term Note") on the standard form used by Bank for commercial loans. In the event of a prepayment of principal and any resulting fees,
any prepaid amounts shall be applied to the scheduled principal payments in the reverse order of their maturity. 

    1.2  Terminology.  

    As
used herein the word "Loan" shall mean, collectively, all the credit facilities described above. 

    As
used herein the word "Note" shall mean, collectively, all the promissory notes described above. 

    As
used herein, the words "Loan Documents" shall mean all documents executed in connection with this Agreement. 

    1.3  Purpose of Loan.  The proceeds of the Revolving Loan shall be used for
working capital or other internal business needs while the proceeds of the Term Loans were used for fixture financing, equipment purchases and leasehold improvements. 

    1.4  Interest.  The unpaid principal balance of the Revolving Loan and Term Loans
shall bear interest at the rate or rates provided in the Revolving Note and the Equipment Notes selected by Borrower. The Revolving Loan may be prepaid in full or in part only in accordance with the
terms of the Revolving Note and any such prepayment under the Equipment Notes shall be subject to the prepayment fee provided for therein. 

    1.5  Documentation Fee.  The borrower will pay a documentation fee of $1,000. 

    1.6  Balances.  Borrower shall maintain significant depository accounts with Bank
until the Note and all sums payable pursuant to this Agreement have been paid in full. 

    1.7  Disbursement.  Upon execution hereof, Bank shall disburse the proceeds of
the Loan as provided in Bank's standard form Authorization executed by Borrower. 

    1.8  Controlling Document.  In the event of any inconsistency between the terms
of this Agreement and any Note or any of the other Loan Documents, the terms of such Note or other Loan Documents will prevail over the terms of this Agreement. 

 SECTION 2. CONDITIONS PRECEDENT  

    Bank shall not be obligated to disburse all or any portion of the proceeds of the Loan unless at or prior to the time for the making of such disbursement, the
following conditions have been fulfilled to Bank's satisfaction: 

    2.1  Compliance.  Borrower shall have performed and complied with all terms and
conditions required by this Agreement to be performed or complied with by it prior to or at the date of the making of such disbursement and shall have executed and delivered to Bank the Note and other
documents deemed necessary by Bank. 

    2.2  Guaranties.  AMG Holding, Inc., a Virginia Corporation,
Arden-Mayfair, Inc., a Delaware Corporation, and Gelson's Markets, a California Corporation ("Guarantors") shall have executed and delivered to Bank in a form and amount satisfactory to Bank. 

    2.3  Borrowing Resolution.  Borrower shall have provided Bank with certified
copies of resolutions duly adopted by the Board of Directors of Borrower, authorizing this Agreement and the Loan Documents. Such resolutions shall also designate the persons who are authorized to act
on Borrower's behalf in connection with this Agreement and to do the things required of Borrower pursuant to this Agreement. 

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    2.4  Continuing Compliance.  At the time any disbursement is to be made, there
shall not exist any event, condition or act which constitutes an event of default under Section 6 hereof or any event, condition or act which with notice, lapse of time or both would constitute
such event of default; nor shall there be any such event, condition, or act immediately after the disbursement were it to be made. 

 SECTION 3. REPRESENTATIONS AND WARRANTIES  

    Borrower represents and warrants that: 

    3.1  Business Activity.  The Borrower is engaged primarily in the operation of
retail supermarkets through its indirect subsidiary, Gelson's Markets. 

    3.2  Affiliates and Subsidiaries.  Borrower's affiliates and subsidiaries (those
entities in which Borrower has either a controlling interest or at least a 25% ownership interest) and their addresses, and the names of Borrower's principal shareholders, are as provided on a
schedule delivered to Bank on or before the date of this Agreement. 

    3.3  Authority to Borrow.  The execution, delivery and performance of this
Agreement, the Note and all other agreements and instruments required by Bank in connection with the Loan are not in contravention of any of the terms of any indenture, agreement or undertaking to
which Borrower is a party or by which it or any of its property is bound or affected. 

    3.4  Financial Statements.  The financial statements of Borrower, including both
a balance sheet at December 31, 1999, together with supporting schedules, and an income statement for the twelve (12) months ended December 31, 1999, have heretofore been
furnished to Bank, and are true and complete in all material respects and fairly represent the financial condition of Borrower during the period covered thereby. Since December 31, 1999, there
has been no material adverse change in the financial condition or operations of Borrower. 

    3.5  Title.  Except for assets which may have been disposed of in the ordinary
course of business, Borrower has good and marketable title to all of the property reflected in its financial statements delivered to Bank and to all property acquired by Borrower since the date of
said financial statements, free and clear of all liens, encumbrances, security interests and adverse claims except those specifically referred to in said financial statements. 

    3.6  Litigation.  There is no litigation or proceeding pending or threatened
against Borrower or any of its property which is reasonably likely to affect the financial condition, property or business of Borrower in a materially adverse manner or result in liability in excess
of Borrower's insurance coverage. 

    3.7  Default.  Borrower is not now in default in the payment of any of its
material obligations, and there exists no event, condition or act which constitutes an event of default under Section 6 hereof and no condition, event or act which with notice or lapse of time,
or both, would constitute an event of default. 

    3.8  Organization.  Borrower is duly organized and existing under the laws of the
state of its organization, and has the power and authority to carry on the business in which it is engaged and/or proposes to engage. 

    3.9  Power.  Borrower has the power and authority to enter into this Agreement
and to execute and deliver the Note and all of the other Loan Documents. 

    3.10  Authorization.  This Agreement and all things required by this Agreement
have been duly authorized by all requisite action of Borrower. 

3

 

    3.11  Qualification.  Borrower is duly qualified and in good standing in any
jurisdiction where such qualification is required. 

    3.12  Compliance With Laws.  Borrower is not in violation with respect to any
applicable laws, rules, ordinances or regulations which materially affect the operations or financial condition of Borrower. 

    3.13  ERISA.  Any defined benefit pension plans as defined in the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), of Borrower meet, as of the date hereof, the minimum funding standards of Section 302 of ERISA, and no Reportable Event or
Prohibited Transaction as defined in ERISA has occurred with respect to any such plan. 

    3.14  Regulation U.  No action has been taken or is currently planned by
Borrower, or any agent acting on its behalf, which would cause this Agreement or the Note to violate Regulation U or any other regulation of the Board of Governors of the Federal Reserve System
or to violate the Securities and Exchange Act of 1934, in each case as in effect now or as the same may hereafter be in effect. Borrower is not engaged in the business of extending credit for the
purpose of purchasing or carrying margin stock as one of its important activities and none of the proceeds of the Loan will be used directly or indirectly for such purpose. 

    3.15  Continuing Representations.  These representations shall be considered to
have been made again at and as of the date of each disbursement of the Loan and shall be true and correct as of such date or dates. 

 SECTION 4. AFFIRMATIVE COVENANTS  

    Until the Note and all sums payable pursuant to this Agreement or any other of the Loan Documents have been paid in full, unless Bank waives compliance in
writing, Borrower agrees that: 

    4.1  Use of Proceeds.  Borrower will use the proceeds of the Loan only as
provided in subsection 1.3 above. 

    4.2  Payment of Obligations.  Borrower will pay and discharge promptly all taxes,
assessments and other governmental charges and claims levied or imposed upon it or its property, or any part thereof, provided, however, that Borrower shall have the right in good faith to contest any
such taxes, assessments, charges or claims and, pending the outcome of such contest, to delay or refuse payment thereof provided that adequately funded reserves are established by it to pay and
discharge any such taxes, assessments, charges and claims. 

    4.3  Maintenance of Existence.  Borrower will maintain and preserve its existence
and assets and all rights, franchises, licenses and other authority necessary for the conduct of its business and will maintain and preserve its property, equipment and facilities in good order,
condition and repair. Bank may, at reasonable times, visit and inspect any of the properties of Borrower. 

    4.4  Records.  Borrower will keep and maintain full and accurate accounts and
records of its operations according to generally accepted accounting principles and will permit Bank to have access thereto, to make examination and photocopies thereof, and to make audits during
regular business hours. Costs for such audits shall be paid by Borrower. 

    4.5  Information Furnished.  Borrower will furnish to Bank: 

    (a) Within
sixty (60) days after the close of each fiscal quarter, except for the final quarter of each fiscal year, its unaudited balance sheet as of the close
of such fiscal quarter, its unaudited income and expense statement with supportive schedules and 

4

 

statement of retained earnings for that fiscal quarter, prepared in accordance with generally accepted accounting principles; 

    (b) Within
One Hundred and Twenty (120) days after the close of each fiscal year, a copy of its statement of financial condition including at least its balance
sheet as of the close of such fiscal year, its income and expense statement and retained earnings statement for such fiscal year, examined and prepared on an audited basis by independent certified
public accountants selected by Borrower and reasonably satisfactory to Bank, in accordance with generally accepted accounting principles applied on a basis consistent with that of the previous year; 

    (c) Any
other financial statements and information as Bank may reasonably request from time to time; 

    (d) In
connection with each financial statement provided hereunder, a certification of compliance with all the covenants under this Agreement, executed by the chief
financial officer of Borrower, certifying that no default has occurred and no event exists which with notice or the lapse of time, or both, would result in a default hereunder; 

    (e) In
connection with each fiscal year-end statement required hereunder, any management letter of Borrower's certified public accountants; 

    (f)  Prompt
written notice to Bank of all events of default under any of the terms or provisions of this Agreement or of any other agreement, contract, document or
instrument entered, or to be entered into with Bank; and of any litigation which, if decided adversely to Borrower, would have a material adverse effect on Borrower's financial condition; and of any
other matter which has resulted in, or is likely to result in, a material adverse change in its financial condition or operations; and 

    (g) Prior
written notice to Bank of any changes in Borrower's officers, directors, and other senior management; Borrower's name; and location of Borrower's assets,
principal place of business or chief executive office. 

    4.6  Current Ratio.  Borrower will at all times maintain a ratio of current
assets to current liabilities of at least 1.00 to 1.00, as such terms are defined by generally accepted accounting principles. 

    4.7  Tangible Net Worth.  Borrower will at all times maintain Tangible Net Worth
of not less than Fifty Five Million Dollars ($55,000,000). "Tangible Net Worth" shall mean net worth increased by indebtedness of Borrower subordinated to Bank and decreased by prepaid expenses, lease
deposits, liquor licenses, patents, licenses, trademarks, trade names, goodwill and other similar intangible assets, organizational expenses, and monies due from affiliates (including officers,
shareholders and directors). 

    4.8  Debt to Tangible Net Worth.  Borrower will at all times maintain a ratio of
total liabilities to tangible net worth of not greater than 1.75 to 1.00. 

    4.9  Profitability.  Borrower will maintain its net profit, after provision for
income taxes, at not less than One Dollars ($ 1) for any six-month period, as reported at the end of each fiscal quarter. 

    4.10  Insurance.  Borrower will keep at its expense, all of its insurable
property as insured by responsible insurance companies approved by Bank at the appraised values of such property against fire and such other hazards and risks, and with such loss deductible amounts as
are customarily carried by businesses with similar properties in Borrower's line of business; 

5

 

and maintain adequate public liability, business interruption, and worker's compensation insurance with responsible insurance carriers as is maintained by such businesses. 

    4.11  Additional Requirements.  Borrower will promptly, upon demand by Bank, take
such further action and execute all such additional documents and instruments in connection with this Agreement as Bank in its reasonable discretion deems necessary, and promptly supply Bank with such
other information concerning its affairs as Bank may request from time to time. 

    4.12  Litigation and Attorneys' Fees.  Borrower will pay promptly to Bank upon
demand, reasonable attorneys' fees (including but not limited to the reasonable estimate of the allocated costs and expenses of in-house legal counsel and legal staff) and all costs and
other expenses paid or incurred by Bank in collecting, modifying or compromising the Loan or in enforcing or exercising its rights or remedies created by, connected with or provided for in this
Agreement or any of the Loan Documents, whether or not an arbitration, judicial action or other proceeding is commenced. If such proceeding is commenced, only the prevailing party shall be entitled to
attorneys' fees and court costs. 

    4.13  Bank Expenses.  Borrower will pay or reimburse Bank for all costs, expenses
and fees incurred by Bank in preparing and documenting future amendments and modifications to this Agreement and the Loan, including but not limited to all filing and recording fees, costs of
appraisals, insurance and attorneys' fees, including the reasonable estimate of the allocated costs and expenses of in-house legal counsel and legal staff. 

    4.14  Reports Under Pension Plans.  Borrower will furnish to Bank, as soon as
possible and in any event within 15 days after Borrower knows or has reason to know that any event or condition with respect to any defined benefit pension plans of Borrower described in
Section 3 above has occurred, a statement of an authorized officer of Borrower describing such event or condition and the action, if any, which Borrower proposes to take with respect thereto. 

 SECTION 5. NEGATIVE COVENANTS  

    Until the Note and all other sums payable pursuant to this Agreement or any other of the Loan Documents have been paid in full, unless Bank waives compliance
in writing, Borrower agrees that: 

    5.1  Encumbrances and Liens.  Except to the extent set forth in the next
sentence, Borrower will not create, assume or suffer to exist any mortgage, pledge, security interest, encumbrance, or lien (other than for taxes not delinquent and for taxes and other items being
contested in good faith) on property of any kind, whether real, personal or mixed, now owned or hereafter acquired, or upon the income or profits thereof, except to Bank and except for minor
encumbrances and easements on real property which do not affect its market value, and except for existing liens on Borrower's personal property and future purchase money security interests encumbering
only the personal property purchased. All of such permitted property liens shall not exceed, in the aggregate, Ten Million Dollars ($10,000,000) at any time. 

    5.2  Borrowings.  Borrower will not sell, discount or otherwise transfer any
account receivable or any note, draft or other evidence of indebtedness, except to Bank or except to a financial institution at face value for deposit or collection purposes only and without any fee
other than fees normally charged by the financial institution for deposit or collection services. Borrower will not borrow any money, become contingently liable to borrow money, nor enter any
agreement to directly or indirectly obtain borrowed money, except (a) pursuant to agreements made with Bank; (b) an unsecured line of credit with City National Bank which is not to
exceed Three Million Dollars ($3,000,000); and (c) other Encumbrances and Liens as referenced in Section 5.1. 

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    5.3  Sale of Assets, Liquidation or Merger.  Borrower will neither liquidate nor
dissolve nor enter into any consolidation, merger, partnership or other combination, nor convey, nor sell, nor lease all or the greater part of its assets or business, nor purchase or lease all or the
greater part of the assets or business of another that, in any of the above circumstances, would materially affect its ability to repay the Revolving Loan. 

    5.4  Loans, Advances and Guaranties.  Borrower will not, except in the ordinary
course of business as currently conducted, make any loans or advances, become a guarantor or surety, pledge its credit or properties in any manner or extend credit that, in the aggregate, exceeds Ten
Million Dollars ($10,000,000) at any time. 

 SECTION 6. EVENTS OF DEFAULT  

    The occurrence of any of the following events ("Events of Default") shall terminate any obligation on the part of Bank to make or continue the Loan and
automatically, unless otherwise provided under the Note, shall make all sums of interest and principal and any other amounts owing under the Loan immediately due and payable, without notice of
default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or any other notices or demands: 

    6.1 Borrower
shall default in the due and punctual payment of the principal of or the interest on the Note or any of the other Loan Documents; or 

    6.2 Any
default shall occur under the Note; or 

    6.3 Borrower
shall default in the due performance or observance of any covenant or condition of the Loan Documents; or 

    6.4 Any
guaranty or subordination agreement required hereunder is breached or becomes ineffective, or any Guarantor or subordinating creditor dies, disavows or attempts
to revoke or terminate such guaranty or subordination agreement; or 

    6.5 Any
change in ownership or control which results in the aggregate ownership of voting power of less than 51% of Arden Group, Inc. by Bernard Briskin or his
trust. 

 SECTION 7. MISCELLANEOUS PROVISIONS  

    7.1  Additional Remedies.  The rights, powers and remedies given to Bank
hereunder shall be cumulative and not alternative and shall be in addition to all rights, powers and remedies given to Bank by law against Borrower or any other person, including but not limited to
Bank's rights of setoff or banker's lien. 

    7.2  Nonwaiver.  Any forbearance or failure or delay by Bank in exercising any
right, power or remedy hereunder shall not be deemed a waiver thereof and any single or partial exercise of any right, power or remedy shall not preclude the further exercise thereof. No waiver shall
be effective unless it is in writing and signed by an officer of Bank. 

    7.3  Inurement.  The benefits of this Agreement shall inure to the successors and
assigns of Bank and the permitted successors and assignees of Borrower, and any assignment by Borrower without Bank's consent shall be null and void. 

    7.4  Applicable Law.  This Agreement and all other agreements and instruments
required by Bank in connection therewith shall be governed by and construed according to the laws of the State of California. 

    7.5  Severability.  Should any one or more provisions of this Agreement be
determined to be illegal or unenforceable, all other provisions nevertheless shall be effective. In the event 

7

 

of any conflict between the provisions of this Agreement and the provisions of any note or reimbursement agreement evidencing any indebtedness hereunder, the provisions of such note or reimbursement
agreement shall prevail. 

    7.6  Integration Clause.  Except for documents and instruments specifically
referenced herein, this Agreement constitutes the entire agreement between Bank and Borrower regarding the Loan and all prior communications verbal or written between Borrower and Bank shall be of no
further effect or evidentiary value. 

    7.7  Construction.  The section and subsection headings herein are for
convenience of reference only and shall not limit or otherwise affect the meaning hereof. 

    7.8  Amendments.  This Agreement may be amended only in writing signed by all
parties hereto. 

    7.9  Counterparts.  Borrower and Bank may execute one or more counterparts to
this Agreement, each of which shall be deemed an original, but when together shall be one and the same instrument. 

 SECTION 8. SERVICE OF NOTICES  

    8.1 Any
notices or other communications provided for or allowed hereunder shall be effective only when given by one of the following methods and addressed to the
respective party at its address given with the signatures at the end of this Agreement and shall be considered to have been validly given: (a) upon delivery, if delivered personally;
(b) upon receipt, if mailed, first class postage prepaid, with the United States Postal Service; (c) on the next business day, if sent by overnight courier service of recognized
standing; and (d) upon telephoned confirmation of receipt, if telecopied. 

    8.2 The
addresses to which notices or demands are to be given may be changed from time to time by notice delivered as provided above. 

8

 

    THIS AGREEMENT is executed on behalf of the parties by duly authorized officers as of the date first above written. 

	ARDEN GROUP, INC. ("BORROWER")	 	 
	By:	
	 	 
	

Title:	

	
 	

 
	

By:	

	
 	

 
	

Title:	

	
 	

 
	

2020 South Central Avenue

Compton, CA 90220

Fax (310)631-0950	
 	

 
	
UNION BANK OF CALIFORNIA, N.A. ("BANK")	
 	

 
	
By:	

 Gail Boyle
 Vice President	
 	

 
	

By:	

 Gregory Dubansky
 Credit Officer	
 	

 
	

445 South Figueroa Street, 10th Floor

Los Angeles, CA 90071

Fax (310)236-7637

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