On April 1, 2014, Leonard A. Potter resigned from the Board of Directors of Crumbs Bake Shop, Inc. and from the Board of Managers of Holdings. Mr. Potter's notification to the Boards did not indicate that he was resigning due to any disagreement with the company on any matter relating to its operations, policies or practices. On April 1, 2014, at the recommendation of its Nominating and Governance Committee, the Board of Directors of Crumbs elected Mark Liebel and Scott Fischer to serve as directors of Crumbs until the 2014 annual meeting of stockholders and until their successors are duly elected and qualified.

Messrs. Liebel and Fischer, who will fill the vacancies created by Mr. Potter's resignation and the previously-announced resignation of Mark A. Klein, were designated for election by the Lender and elected by the Board pursuant to the terms of the Loan Agreement.