Document:

Exhibit 10.1

 

Execution Version

 

SENIOR SECURED LOAN AND SECURITY AGREEMENT

 

between

 

Crumbs Holdings LLC

 

and

 

Crumbs Bake Shop, Inc.

 

as Borrowers, and

 

Fischer Enterprises, L.L.C., 

as Lender

 

 

 

January 20, 2014

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	Definitions.	1
	 	 	 
	1.1	Defined Terms	1
	 	 	 
	Section 2.	The Loan.	7
	 	 	 
	2.1	Term Loan	7
	2.2	Notes	7
	 	 	 
	Section 3.	Interest.	7
	 	 	 
	Section 4.	Payment.	8
	 	 	 
	4.1	Payments of Obligations.	8
	4.2	Manner of Payments	8
	4.3	Payment Authorization	8
	4.4	Voluntary Prepayment	8
	4.5	Mandatory Prepayments.	8
	4.6	Fees	9
	4.7	Use of Proceeds	9
	4.8	Change in Law	9
	4.9	Nature and Extent of Each Borrower’s Liability.	10
	 	 	 
	Section 5.	Conversion.	11
	 	 	 
	5.1	Option to Convert	11
	5.2	Conversion Right	12
	5.3	Mechanics of Conversion	12
	5.4	Adjustment of Conversion Price	12
	5.5	Principal Market Regulation	12
	 	 	 
	Section 6.	Management Rights of Lender.	14
	 	 	 
	6.2	Executive Officer	14
	 	 	 
	Section 7.	Conditions Precedent.	15
	 	 	 
	7.1	Conditions to Tranche I Loan.	15
	7.2	Conditions to Tranche II Loan.	16
	 	 	 
	Section 8.	Collateral.	16
	 	 	 
	8.1	Grant of Security Interest	16
	8.2	No Assumption of Liability	16
	8.3	Agreements Regarding Accounts	17
	8.4	Cross Collateralization and Cross Default	17
	8.5	Financing Statement; Further Assurances	17
	8.6	Post-Funding Covenants	17
	 	 	 
	Section 9.	Representations and Warranties of Lender	17

 

    	 

    	 

    

 

	9.1	No Public Sale or Distribution	17
	9.2	Accredited Investor Status	17
	9.3	Information	18
	9.4	Transfer or Resale	18
	9.5	Legends	18
	 	 	 
	Section 10.	Representations and Warranties of Borrowers	19
	 	 	 
	10.1	Legal Status	19
	10.2	Subsidiaries	19
	10.3	Authorization and Validity	19
	10.4	No Conflict	19
	10.5	No Consents	20
	10.6	Indebtedness; Priority	20
	10.7	Title to Properties	20
	10.8	Taxes	20
	10.9	Litigation	20
	10.10	Compliance with Laws	20
	10.11	Compliance with Environmental Laws	20
	10.12	Locations of Collateral	20
	10.13	Financial Statements	21
	10.14	Liabilities	21
	10.15	Intellectual Property	21
	10.16	Capitalization	21
	10.17	Internal Controls and Procedures	22
	10.18	Complete Disclosure	22
	10.19	No Breaches	22
	 	 	 
	Section 11.	Affirmative Covenants	22
	 	 	 
	11.1	Payment of Indebtedness	22
	11.2	Cash Management System	22
	11.3	Existence	23
	11.4	Compliance with Laws; Licenses	23
	11.5	Taxes	23
	11.6	Collateral	23
	11.7	Inspection	24
	11.8	Insurance	24
	11.9	Maintenance of Employee Benefit Plans	24
	11.10	Reporting Obligations.	24
	 	 	 
	Section 12.	Negative Covenants	26
	 	 	 
	12.1	Existence of Liens	26
	12.2	Sale of Assets	26
	12.3	Changes in Structure	26
	12.4	Distributions	26
	12.5	Limitations on Other Indebtedness	27
	12.6	Loans and Investments	27
	12.7	Subsidiaries	27

 

    	ii

    	 

    

 

	12.8	Transactions with Affiliates	27
	12.9	Collection of Accounts	27
	12.10	Compensation	27
	12.11	Leases	27
	12.1	Change in Control	27
	 	 	 
	Section 13.	Omitted	28
	 	 	 
	Section 14.	Events of Default	28
	 	 	 
	14.1	Non-Payment of Loans	28
	14.2	Breach of Covenant	28
	14.3	Business Plan	28
	14.4	Failure to pay Taxes	28
	14.5	Guaranty	28
	14.6	Breach of Representation or Warranty	28
	14.7	Change in Control	28
	14.8	Destruction of Collateral	28
	14.9	Insolvency	28
	14.10	Dissolution	29
	14.11	Levy Judgment	29
	14.12	Cross-Default	29
	14.13	Failure of Perfection	29
	14.14	Nasdaq Delisting	29
	 	 	 
	Section 15.	Remedies	29
	 	 	 
	Section 16.	License	30
	 	 	 
	Section 17.	Miscellaneous.	30
	 	 	 
	17.1	Failure or Indulgence Not Waiver	30
	17.2	Modification	30
	17.3	Omitted	31
	17.4	Indemnification	31
	17.5	Notices	31
	17.6	Severability	32
	17.7	Construction	32
	17.8	Applicable Law	32
	17.9	Assignability	32
	17.10	Counterparts	32
	17.11	Further Assurances	32
	17.12	Attorneys’ Fees	32
	17.13	Usury	33
	17.14	Integration	33
	17.15	Time	33
	17.16	VENUE	33
	17.17	WAIVER OF JURY TRIAL	33

 

    	iii

    	 

    

 

	EXHIBITS	 	 
	 	 	 
	Exhibit A-1:	Tranche I Note	 
	Exhibit A-2:	Tranche II Note	 
	Exhibit B:	Form of Insurance Requirements	 
	Exhibit C:	Membership Interest Pledge Agreement	 
	Exhibit D:	Grant of Security Interest in Trademarks	 
	Exhibit E:	Deposit Account Control Agreement	 
	Exhibit F:	Conversion Notice	 
	Exhibit G:	Registration Rights Agreement	 
	 	 	 
	SCHEDULES	 	 
	 	 	 
	Schedule 1.1:	Existing Indebtedness	 
	Schedule 1.2:	Existing Liens	 
	Schedule 4.7:	Use of Proceeds	 
	Schedule 10.2:	Subsidiaries	 
	Schedule 10.4	No Conflict	 
	Schedule 10.5:	No Consents	 
	Schedule 10.7:	Leased Real Property	 
	Schedule 10.9:	Litigation	 
	Schedule 10.12:	Locations of Collateral	 
	Schedule 10.15:	Intellectual Property	 
	Schedule 10.16:	Capitalization	 
	Schedule 10.19:	No Breaches	 
	Schedule 11.1:	Payment of Indebtedness	 

 

    	iv

    	 

    

 

SENIOR SECURED LOAN AND SECURITY AGREEMENT

 

THIS SENIOR SECURED
LOAN AND SECURITY AGREEMENT (this “Agreement”) is made as of January 20, 2014, between Crumbs Holdings LLC,
a Delaware limited liability company (“Crumbs Holdings”), Crumbs Bake Shop, Inc., a Delaware corporation (“Crumbs,”
together with Crumbs Holding, collectively, the “Borrowers” and each a “Borrower”), and Fischer
Enterprises, L.L.C., an Oklahoma limited liability company (“Lender”), with respect to the following:

 

A.           Borrowers
have requested that Lender grant to Borrowers the credit accommodations set forth in this Agreement; and

 

B.           Lender
has agreed to grant such credit accommodations, subject to the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

In consideration of
the mutual covenants and agreements in this Agreement, and intending to be legally bound hereby, Lender and each Borrower jointly
and severally agree as follows:

 

Section 1.          Definitions.

 

1.1           Defined
Terms. Capitalized terms used in this Agreement (including all schedules and exhibits to this Agreement) and not otherwise
defined have the meanings set forth in this Section 1.

 

“Borrower”
and “Borrowers” have the meaning set forth in the preamble to this Agreement.

 

“Business
Combination Agreement” means that certain Business Combination Agreement dated as of January 9, 2011, by and among Crumbs,
57th Street Merger Sub LLC, Crumbs Holdings, the members of Crumbs Holdings set forth on the signature pages thereto, and the representatives
of Crumbs Holdings, as amended on each of February 18, 2011, March 17, 2011 and April 7, 2011.

 

“Business
Day” means any day other than a Saturday, Sunday, or a federal or state holiday or other day on which Lender or commercial
banks in Oklahoma are customarily closed or are required to close under federal Laws or the Laws of the State of Oklahoma.

 

“Business
Plan” means the 2014 business plan delivered by Borrowers to Lenders on the Tranche I Closing Date for the Borrowers’
operation of the Borrowers’ business, as may be modified from time to time by mutual consent of the Borrowers and Lender.

 

    	1

    	 

    

 

“Change in
Control” means (i) “person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the record or beneficial owner, directly or indirectly, of more than 50% of
the total voting power of the Voting Stock of Crumbs (or its successor by merger, consolidation, or purchase of all or substantially
all of its assets), (ii) the first day on which a majority of the seats on the board of directors (or similar governing body) of
any Borrower ceases to be occupied by Persons who were members of the board of directors on the Tranche I Closing Date, (iii) the
sale, lease, transfer or other disposition in one or a series of related transactions, of 50% or more of the assets of any Borrower,
(iv) a merger, consolidation or other business combination of Crumbs (or any Subsidiary or Subsidiaries that alone or together
represent all or substantially all of Crumb’s consolidated business at that time) or any successor or other entity holding
all or substantially all of the assets of Crumbs and its Subsidiaries that results in the stockholders of Crumbs (or such Subsidiary
or Subsidiaries) or any successor or other entity holding all or substantially all of the assets of Crumbs and its Subsidiaries
or the surviving entity thereof, as applicable, immediately before the consummation of such transaction or a series of related
transactions holding, directly or indirectly, less than 50% of the voting power of Crumb’s or any successor, other
entity or surviving entity thereof, as applicable, immediately following the consummation of the transaction or series of related
transactions, (iv) the first day Crumbs ceases to own, directly or indirectly, approximately 84% of the outstanding equity interests
of Crumbs Holdings (which may reduced below such amount in the event of the issuance of any Contingency Consideration under the
terms of the Business Combination Agreement and shall not constitute a Change of Control for purposes of this definition), or (v)
the first day Crumbs Holdings ceases to own, directly or indirectly, 100% of the outstanding equity interest of any Subsidiary.

 

“Change in
Law” means the occurrence, after the date hereof, of (a) the adoption, taking effect or phasing in of any Law, rule,
regulation or treaty; (b) any change in any Law, rule, regulation or treaty or in the administration, interpretation or application
thereof; or (c) the making, issuance or application of any request, guideline, requirement or directive (whether or not having
the force of law) by any governmental authority.

 

“Collateral”
means all of each Borrower’s Equipment, Inventory, Accounts, Chattel Paper, General Intangibles, Goods, Documents, Fixtures,
Deposit Accounts, Instruments, Investment Property, Letter of Credit Rights, Software, Commercial Tort Claims, money, Intellectual
Property, Incidental Rights, and all other property of each Borrower pledged as security for the Obligations in any Loan Document,
including, without limitation, the Borrowers’ equity interest in each of the Subsidiaries, in each case, whether owned now
or acquired after the date of this Agreement, and including all proceeds thereof, all substitutions therefor, and all books and
records related thereto; provided, however, the term “Collateral” shall not include the Southeastern CD.

 

“Control Agreement”
means an agreement among Lender, each Borrower and a third-party depository institution, in form and substance satisfactory to
Lender, granting Lender “control” (as such term is defined in the UCC) over the deposit accounts of such Borrower maintained
at such depository institution and in substantially the form attached at Exhibit E or in another form reasonably satisfactory
to Lender.

 

“Copyrights”
means all rights under applicable law associated with works of authorship, including but not limited to copyrights, moral rights,
mask-works, and computer software (excluding commercially available software).

 

    	2

    	 

    

 

“Environmental
Laws” means all federal, state, local or foreign laws relating to pollution or protection or human health or the environment
(including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without
limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or
toxic or hazardous substances or waste into the environment, or otherwise relating to the manufacture, processing, distribution,,
use, treatment, storage, disposal, transport or handling of hazardous substances or wastes.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“GAAP”
means generally accepted accounting principles in effect in the United States from time to time.

 

“Grant of
Security Interest in Trademarks” means that Grant of Security Interest in Trademarks in substantially the form at Exhibit
D.

 

“Guarantor”
means any existing or future Subsidiary of Borrower that executes a Guaranty and Security Agreement.

 

“Guaranty
and Security Agreement” means any Guaranty and Security Agreement executed in connection with this Agreement in favor
of Lender guarantying the Obligations and granting a security interest in the Guarantor’s collateral, as such agreement may
be amended from time to time.

 

"Incidental
Rights" means (a) all books and records relating to the Equipment, contracts, contract rights, licenses, sublicenses,
computer tapes, catalogues, advertisements, source codes, computer programs, computer cards and computer disks, Accounts, Inventory
and any of the other items or types of Collateral; (b) all indemnities, guaranties or warranties relating to the ownership, construction,
rental, operation, maintenance, use or repair of the Equipment or other items or types of Collateral, (c) all telephone numbers
assigned to Borrowers, (d) all governmental filings, permits, approvals or licenses relating to the ownership, use or operating
of the Equipment and Inventory; and (e) contract files, right-of-way files and engineering files relating primarily thereto.

 

“Indebtedness”
means (a) all items that would be included as liabilities on a balance sheet in accordance with GAAP, including capital leases,
but excluding trade payables incurred and being paid in the ordinary course of business, (b) all contingent obligations, and (c)
all reimbursement obligations in connection with letters of credit issued.

 

“Intellectual
Property” means the Copyrights, Know-How, Patents, and Trademarks.

 

“Know-How”
means all technical and business knowledge, proprietary information, data, processes, techniques, methods of manufacturing, methods
of operation, drawings, designs, blueprints, databases, draft patent applications, invention disclosures, research and development
projects, operating manuals, manufacturing and quality control procedures, non-commercial software, trade secrets, plans, accumulated
experience, plant and tool design, installation instructions and raw material specifications, formulations, techniques, drawings,
unpatented inventions (including inventions conceived prior to the date hereof but not documented as of the date hereof), advertising
procedures, sales promotion literature, customer lists, and price lists, in each case to the extent protectable under applicable
law.

 

    	3

    	 

    

 

“Laws”
means all statutes, laws, ordinances, regulations, orders, writs, injunctions, or decrees of the United States, any state or commonwealth,
any municipality, any foreign country, any territory or possession, or any municipal, state, commonwealth, federal, foreign, territorial
or other sovereign, governmental entity, governmental department, court, commission, board, bureau, agency or instrumentality.

 

“Leases”
means any lease agreements for the lease of real property by a Borrower or Subsidiary and each of the lease agreements set forth
on Schedule 10.7.

 

“Leasehold
Mortgages” means, in a form reasonable acceptable to Lender, leasehold mortgages for each of the Leases.

 

“Loan”
has the meaning set forth in Section 2.1.

 

“Loan Documents”
means this Agreement, the Notes, Guaranty and Security Agreement, Leasehold Mortgages, Grant of Security Interest in Trademarks,
Control Agreement, Membership Interest Pledge Agreement, Registration Rights Agreement, all financing statements perfecting a security
interest under the Uniform Commercial Code, each other agreement, document or instrument executed pursuant to any of the foregoing,
and all renewals and extensions of, or amendments or supplements to, or restatements of, any of the foregoing from time to time
in effect.

 

“Material
Adverse Effect” means any set of circumstances or events occurring after the date of this Agreement that (a) would have
any material adverse effect upon the validity or enforceability of any of the Loan Documents, (b) is or could reasonably be expected
to become material and adverse to the business condition (financial or otherwise), assets, properties, or operations of any Borrower,
(c) could reasonably be expected to materially impair the ability of any Borrower to fulfill its obligations under the Loan Documents,
or (d) causes an Event of Default or an event that with the giving of notice or passage of time, or both, would constitute an Event
of Default.

 

“Maturity
Date” means, unless and until Lender elects to convert the outstanding balance of the Loan to common equity, the earliest
to occur of: (a) acceleration of the Obligations due to the occurrence of an Event of Default, or (b) July 1, 2016.

 

“Membership
Interest Pledge Agreement” means the Membership Interest Pledge Agreement in substantially the form attached at Exhibit
C.

 

“Notes”
means the Tranche I Note and Tranche II Note.

 

“Obligations”
means all obligations, liabilities and indebtedness (monetary or otherwise, including post-petition and default interest, whether
allowed or not) of Borrowers arising under this Agreement or any other Loan Document and all other obligations of Borrowers to
Lender of any nature whatsoever, including, without limitation, for principal, interest, fees, costs, expenses, indemnification,
and legal fees, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due,
now existing or hereafter arising.

 

    	4

    	 

    

 

"Patents"
means all domestic and foreign letters design and utility patent and patent applications (including without limitation all provisional,
design, divisional, renewal, re-exam, reissue, substitute, continuation, continuations-in-part and convention applications, all
other patent applications or utility model applications or issued patents or utility models claiming priority therefrom or otherwise
related thereto, and any and all letters patent and utility models, reissues, reexaminations, and extensions of letters patent
and utility models granted thereon, and every priority right that is or may be predicted upon or arise from therefrom or based
thereon) (including, without limitation, patents and patent applications in the United States Patent and Trademark Office, or in
any similar office or agency of the United States or any other country or any political subdivision thereof).

 

“Permitted
Indebtedness” means the Obligations and each of the following:

 

(a)          trade
payables arising in the ordinary course of business;

 

(b)          purchase
money Indebtedness in an amount not exceeding $50,000.00 in the aggregate;

 

(c)          contingent
obligations (i) arising from endorsements of payment items for collection or deposit in the ordinary course of business or (ii)
incurred in the ordinary course of business with respect to surety, appeal or performance bonds or other similar obligations;

 

(d)          Indebtedness
disclosed in the SEC Documents; and

 

(e)          the
Indebtedness set forth on Schedule 1.1.

 

“Permitted
Liens” means liens in favor of Lender and each of the following:

 

(a)          liens
for purchase money Indebtedness not exceeding $50,000.00 in the aggregate;

 

(b)          liens
for taxes not yet due and payable, or which are being diligently contested in good faith by proper proceedings;

 

(c)          mechanics,
warehouseman’s, and other similar liens arising in the ordinary course of business for obligations not yet due and payable;

 

(d)          easements,
rights-of-way, restrictions, covenants and other agreements with respect to real property that do not secure any monetary obligation
and do not materially interfere with a Borrower’s business;

 

(e)          normal
and customary rights of setoff upon deposits in favor of depository institutions, and liens of a collecting bank on payment items
in the course of collection; and

 

(f)          the
liens set forth on Schedule 1.2.

 

    	5

    	 

    

 

“Person”
means, whether or not capitalized, any individual, partnership, corporation, business trust, joint stock company, trust, unincorporated
association, joint venture, limited liability company, governmental authority, or other entity of any nature.

 

“Principal
Market” means the Nasdaq Capital Market or such other exchange on which the shares of Common Stock of the Company are
listed.

 

“Registration
Rights Agreement” means that certain registration rights agreement, dated as of the date of this Agreement by and among
Crumbs and the Lender relating to, among other things, the registration of the Conversion Shares issuable upon conversion of the
Notes in the form attached at Exhibit G.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“SEC Documents”
means all reports, schedules, forms, statements and other documents filed by Crumbs with the SEC pursuant to the reporting requirements
of the 1934 Act prior to the date hereof.

 

“Southeastern
CD” means that certain Certificate of Deposit in the amount of $500,000.00 securing the obligations of Crumbs Holdings
under the Commercial Loan Agreement, between Southeastern Bank and Crumbs Holdings dated May 5, 2011, as amended from time to time.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability company, or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body
(other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly or indirectly, through one of more intermediaries, or both,
by such Person. Unless otherwise specified, all references in this Agreement to a “Subsidiary” or to “Subsidiaries”
shall refer to a Subsidiary or Subsidiaries of Borrowers.

 

“Tax Receivable
Agreement” means that certain Tax Receivable Agreement dated as of May 5, 2011, by and among Crumbs, Crumbs Holdings,
and the members of Crumbs Holdings set forth on the signature pages thereto and such other parties who have become members subsequent
thereto.

 

"Trademarks"
means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, dba's,
internet domain names, trade dress, trade styles, designs, logos and other source or business identifiers and all general intangibles
of like nature, now or hereafter owned, adopted, acquired or used by any Grantor (including, without limitation, all domestic and
foreign trademarks, service marks, collective marks, certification marks, trade names, business names, dba's, internet domain names,
trade dress, trade styles, designs, logos and other source or business identifiers), all applications, registrations and recordings
thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office
or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof),
and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized by such marks or associated
therewith.

 

    	6

    	 

    

 

“Tranche I
Loan” has the meaning set forth in Section 2.1.

 

“Tranche I
Note” means the convertible promissory note in the original principal amount of $3,500,000, plus the Lending Fee, in
the form attached at Exhibit A-1.

 

“Tranche II
Loan” has the meaning set forth in Section 2.1.

 

“Tranche II
Note” means the convertible promissory note in the original principal amount of $1,500,000, plus the Lending Fee if so
elected by Borrowers, in the form attached at Exhibit A-2.

 

“UCC”
means the Uniform Commercial Code, as amended and in effect in the State of Oklahoma.

 

(b)          UCC
Terms. The following capitalized terms shall have the meanings set forth in the UCC: Equipment, Inventory, Accounts, Chattel
Paper, General Intangibles, Goods, Documents, Fixtures, Deposit Accounts, Instruments, Investment Property, Letter-of-credit Rights,
and Commercial Tort Claims.

 

Section 2.          The
Loan.

 

2.1           Term
Loan. Subject to the terms and conditions of this Agreement, Lender agrees to make a term loan to Borrowers in the original
principal amount of $5,000,000.00 (the “Loan”). The Loan consists of two tranches. Subject to Section 7.1,
the first tranche (“Tranche I Loan”) shall be in the original principal amount of $3,500,000.00, plus the Lending
Fee, and shall be funded on January 21, 2014. Subject to Section 7.2, the second tranche (“Tranche II Loan”)
shall be in the original principal amount of $1,500,000.00, plus the Lending Fee if so elected by Borrowers, and shall be funded
on or before April 1, 2014. Principal amounts of the Loan that are repaid may not be reborrowed. Principal amounts of the Loan
that are repaid may not be reborrowed.

 

2.2           Notes.
The Loan shall be evidenced by the Tranche I Note and Tranche II Note.

 

Section 3.          Interest.

 

3.1           Subject
to Sections 3.2 and 17.13, the unpaid principal of the Loan shall bear interest at the rate of 7% per annum. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. Interest will be payable quarterly on January 1, April
1, July 1, and October 1 (each, an “Interest Payment Date”) either (a) entirely in cash, or (b) entirely by
increasing the principal amount of the outstanding Notes by the amount of interest due for such quarter (the “PIK Interest
Option”). Borrowers shall be deemed to have elected to pay interest by the PIK Interest Option (such interest shall be
referred to as “PIK Interest”) unless Lender has received a cash payment for the full amount of interest due
for such quarter by the Interest Payment Date. Borrowers shall make any amendment to the Notes requested in writing by Lender to
evidence such PIK Interest (it being understood that the lack of such amendment shall in no way affect the Notes being legal and
valid evidence of any such PIK Interest). Any PIK Interest shall constitute principal of the Notes and shall accrue interest as
such.

 

    	7

    	 

    

 

3.2           Subject
to Section 17.13, upon the occurrence and during the continuance of an Event of Default, the unpaid principal of the Loan
shall bear interest at the rate of 18% per annum.

 

Section 4.          Payment.

 

4.1           Payments
of Obligations.

 

(a)          Loan.
All outstanding Obligations owing with respect to the Loan shall be due and payable on the Maturity Date.

 

(b)          Other
Obligations. All other Obligations owing from Borrowers to Lender from time to time pursuant to the Loan Documents shall be
payable on demand, but in any event shall be due and payable on the Maturity Date.

 

4.2           Manner
of Payments

 

. All payments of Obligations shall be
made in United States Dollars, without offset, counterclaim or defense of any kind, free and clear of (and without any deduction
for) taxes in immediately available funds at the office specified by Lender not later than 12:00 p.m., Oklahoma City, Oklahoma
time on the date due. Funds received after such hour shall be deemed to have been received on the following Business Day.

 

4.3           Payment
Authorization

 

. In the event a payment is late or an
Event of Default occurs, each Borrower authorizes Lender, in its sole discretion, to charge such Borrower’s accounts to make
any payments of principal and interest.

 

4.4           Voluntary
Prepayment

 

. Borrowers may prepay the Obligations
in whole or in part and without penalty if Lender does not elect to convert the Loan after receiving at least 30 days prior written
notice from Borrower of its intent to prepay the Obligations (a “Voluntary Prepayment Notice”).

 

4.5           Mandatory
Prepayments.

 

(a)          Asset
Sale. On any date on which any Borrower receives proceeds from any sale of any of the Collateral (other than inventory in the
ordinary course of business), Borrowers shall apply an amount equal to 100% of such proceeds to the prepayment of the Loan, net
of any costs and expenses incurred by any such Borrower in connection with any such sale.

 

(b)          Casualty
Events. Not later than three Business Days following the receipt by any Borrower of the proceeds of insurance, any condemnation
award, or other compensation in respect of any loss or damage to, or any condemnation or other taking of property, Borrowers shall
apply an amount equal to 100% of such proceeds to the prepayment of the Loans; unless the Borrower or any Subsidiary of Borrower
is required to use such insurance proceeds by the terms of any real property lease to be used for the restoration of the location
subject to such lease or by any equipment lease for the repair or replacement of any personal property subject to such lease or
the payment of such insurance proceeds to the lessor under such lease.

 

    	8

    	 

    

 

4.6           Fees.
Borrowers shall pay to Lender:

 

(a)          a
lending fee as the Loan is funded in the amount equal to 1% of the Loan (the “Lending Fee”), such fee is payable
for the Tranche I Loan on the Tranche I Closing Date and for the Tranche II Loan on the Tranche II Closing Date, and the Lending
Fee shall, at the option of Borrowers, be capitalized, when earned, and added to the principal balance of the Loan; and

 

(b)          in
immediately available funds on the Tranche I Closing Date, all of the costs and expenses incurred by Lender in connection with
the execution and delivery of the Loan Documents, including applicable mortgage taxes and related closing charges and the fees
and expenses of Lender’s legal counsel and other professionals in connection with the negotiation, preparation, and closing
of the Loan, as such amounts can be estimated or ascertained at the Tranche I Closing Date; provided, however, any fees related
to the post-funding obligations described in Section 8.6 or otherwise accrued in connection with the closing of the Tranche II
Loan shall be paid on the Tranche II Closing Date, as such amounts can be estimated or ascertained at that time.

 

4.7           Use
of Proceeds. Borrowers shall use the proceeds of the Loan for the payment of operating expenses, working capital needs, and
other restructuring costs consistent with Schedule 4.7. The proceeds of the Loan shall not be used for payments to shareholders
of Crumbs or for distributions to members of Crumbs Holdings.

 

4.8           Change
in Law. If any Change in Law shall (a) subject Lender to any Tax with respect to any Loan or Loan Document, or change the
basis of taxation of payments to Lender in respect thereof; or (b) impose on Lender or any other condition, cost or expense affecting
the Loans or any Loan Document and the result thereof shall be to increase the cost to Lender of making or maintaining the Loans
or to reduce the amount of any sum received or receivable by Lender hereunder (whether of principal, interest or any other amount)
then, upon request by Lender, Borrowers will pay to Lender such additional amount or amounts as will compensate Lender for such
additional costs incurred or reduction suffered.

 

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4.9           Nature
and Extent of Each Borrower’s Liability.

 

(a)          Joint
and Several Liability. Each Borrower agrees that it is jointly and severally liable for, and absolutely and unconditionally
guarantees to Lender the prompt payment and performance of, all Obligations and all agreements under the Loan Documents. Each Borrower
agrees that its guaranty obligations hereunder constitute a continuing guaranty of payment and performance and not of collection,
that such obligations shall not be discharged until full payment of the Obligations, and that such obligations are absolute and
unconditional, irrespective of: (a) the genuineness, validity, regularity, enforceability, subordination or any future modification
of, or change in, any Obligations or Loan Document, or any other document, instrument or agreement to which any obligor is or may
become a party or be bound; (b) the absence of any action to enforce this Agreement (including this Section) or any other
Loan Document, or any waiver, consent or indulgence of any kind by Lender with respect thereto; (c) the existence, value or
condition of, or failure to perfect a lien or to preserve rights against, any security or guaranty for the Obligations or any action,
or the absence of any action, by Lender in respect thereof (including the release of any security or guaranty); (d) the insolvency
of any obligor; (e) any election by Lender in an Insolvency Proceeding for the application of Section 1111(b)(2) of the Bankruptcy
Code; (f) any borrowing or grant of a Lien by any other Borrower, as debtor-in-possession under Section 364 of the Bankruptcy
Code or otherwise; (g) the disallowance of any claims of Lender against any obligor for the repayment of any Obligations under
Section 502 of the Bankruptcy Code or otherwise; or (h) any other action or circumstances that might otherwise constitute
a legal or equitable discharge or defense of a surety or guarantor, except full payment of all Obligations.

 

(b)          Each
Borrower expressly waives all rights that it may have now or in the future under any statute, at common law, in equity or otherwise,
to compel Lender to marshal assets or to proceed against any obligor, other Person or security for the payment or performance of
any Obligations before, or as a condition to, proceeding against such Borrower. Each Borrower waives all defenses available to
a surety, guarantor or accommodation co-obligor other than full payment of all Obligations, including the benefit of 12 Okla. Stat.
§ 686 and 15 Okla. Stat. §§ 334,338, and 340, and any amendments thereof. It is agreed among each Borrower and Lender
that the provisions of this Section 4.9 are of the essence of the transaction contemplated by the Loan Documents and that,
but for such provisions, Lender would decline to make the Loans. Each Borrower acknowledges that its guaranty pursuant to this
Section is necessary to the conduct and promotion of its business, and can be expected to benefit such business.

 

(c)          Lender
may, in its discretion, pursue such rights and remedies as it deems appropriate, including realization upon Collateral by judicial
foreclosure or non judicial sale or enforcement, without affecting any rights and remedies under this Section 4.9. If, in
taking any action in connection with the exercise of any rights or remedies, Lender shall forfeit any other rights or remedies,
including the right to enter a deficiency judgment against any Borrower or other Person, whether because of any applicable Laws
pertaining to “election of remedies” or otherwise, each Borrower consents to such action and waives any claim based
upon it, even if the action may result in loss of any rights of subrogation that any Borrower might otherwise have had. Any election
of remedies that results in denial or impairment of the right of Lender to seek a deficiency judgment against any Borrower shall
not impair any other Borrower’s obligation to pay the full amount of the Obligations. Lender may bid all or a portion of
the Obligations at any foreclosure or trustee’s sale or at any private sale, and the amount of such bid need not be paid
by Lender but shall be credited against the Obligations. The amount of the successful bid at any such sale, whether Lender or any
other Person is the successful bidder, shall be conclusively deemed to be the fair market value of the Collateral, and the difference
between such bid amount and the remaining balance of the Obligations shall be conclusively deemed to be the amount of the Obligations
guaranteed under this Section 4.9, notwithstanding that any present or future Law or court decision may have the effect
of reducing the amount of any deficiency claim to which Lender might otherwise be entitled but for such bidding at any such sale.

 

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(d)          Notwithstanding
anything herein to the contrary, each Borrower’s liability under this Section 4.9 shall be limited to the greater
of (i) all amounts for which such Borrower is primarily liable, as described below, and (ii) such Borrower’s Allocable
Amount.

 

(e)          If
any Borrower makes a payment under this Section 4.9 of any Obligations (other than amounts for which such Borrower is primarily
liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments previously or concurrently
made by any other Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the aggregate
Obligations satisfied by such Guarantor Payments in the same proportion that such Borrower’s Allocable Amount bore to the
total Allocable Amounts of all Borrowers, then such Borrower shall be entitled to receive contribution and indemnification payments
from, and to be reimbursed by, each other Borrower for the amount of such excess, pro rata based upon their respective Allocable
Amounts in effect immediately prior to such Guarantor Payment. The “Allocable Amount” for any Borrower shall
be the maximum amount that could then be recovered from such Borrower under this Section 4.9 without rendering such payment
voidable under Section 548 of the Bankruptcy Code or under any applicable state fraudulent transfer or conveyance act, or similar
statute or common law.

 

(f)          Nothing
contained in this Section 4.9 shall limit the liability of any Borrower to pay Loans made directly or indirectly to that
Borrower (including Loans advanced to any other Borrower and then re-loaned or otherwise transferred to, or for the benefit of,
such Borrower), and all accrued interest, fees, expenses and other related Obligations with respect thereto, for which such Borrower
shall be primarily liable for all purposes hereunder. Lender shall have the right, at any time in its good faith credit judgment,
to condition Loans upon a separate calculation of the Borrowing Base and to restrict the disbursement and use of such Loans to
such Borrower.

 

(g)          Each
Borrower hereby subordinates any claims, including any rights at Law or in equity to payment, subrogation, reimbursement, exoneration,
contribution, indemnification or set off, that it may have at any time against any other obligor, howsoever arising, to the full
payment of all Obligations.

 

Section 5.          Conversion.

 

5.1           Option
to Convert. The Notes are convertible into validly issued, fully paid and non-assessable shares of Crumbs’ common stock,
par value $.0001 per share (the “Common Stock”) on the terms and conditions set forth in this Section 5.

 

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5.2           Conversion
Right. At any time or times on or after the date of the Notes, Lender shall be entitled to convert any portion of the outstanding
and unpaid principal and accrued and unpaid interest on the Notes into validly issued, fully paid and non-assessable shares of
Common Stock (“Conversion Shares”) in accordance with Section 5 at a rate of $.66 per share (the “Conversion
Rate”). Crumbs shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result
in the issuance of a fraction of a share of Common Stock, Crumbs shall round such fraction of a share of Common Stock up to the
nearest whole share. Crumbs shall pay any and all transfer, stamp, issuance and similar taxes that may be payable with respect
to the issuance and delivery of Common Stock upon conversion of any amount of the Notes.

 

5.3           Mechanics
of Conversion. To convert any amount of the Notes into shares of Common Stock on any date, Lender shall deliver (whether via
facsimile or otherwise), for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion
in the form attached hereto as Exhibit F (the “Conversion Notice”) to Crumbs. Within one (1) trading
days after its receipt of the Conversion Notice, Crumbs shall instruct its transfer agent to deliver to Lender certificates representing
the number of shares of Common Stock issuable by reason of such conversion in the name or names and such denomination or denominations
as the Lender may specify.

 

5.4           Adjustment
of Conversion Price. If Crumbs, at any time after the issuance of the Notes, subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the
conversion price in effect immediately prior to such subdivision will be proportionately reduced. If Crumbs, at any time after
the issuance of the Notes, combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares
of Common Stock into a smaller number of shares, the conversion price in effect immediately prior to such combination will be proportionately
increased.

 

5.5           Principal
Market Regulation.

 

(a)          Notwithstanding
the foregoing provisions of this Section 5, at no time may all or a portion of the Notes be converted if the number of shares
of Common Stock to be issued pursuant to such conversion would exceed, when aggregated with all other shares of Common Stock or
other voting stock owned by Lender at such time, the number of shares of Common Stock which would result in Lender beneficially
owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) more than 19.99% of all of
the Common Stock outstanding at such time (the “Exchange Cap”), except that such limitation shall not apply
in the event that Crumbs obtains the approval of its stockholders as required by the applicable rules of the NASDAQ Capital Market
for issuances of Common Stock in excess of such amount. Until such approval is obtained, Lender shall not be issued and Crumbs
shall not issue upon conversion of the Notes, shares of Common Stock which would result in Lender beneficially owning shares of
Common Stock in an amount in excess of the Exchange Cap. Additionally, pursuant to the NASDAQ Capital Market rules, Lender acknowledges
that the Conversion Shares acquired prior to Stockholder Approval (as defined below) may not be voted for the Resolutions at the
Stockholder Meeting (each as defined below). For the avoidance of doubt, the requirement to obtain Shareholder Approval as set
forth in this Section 5.5 to issue a number of shares of Common Stock which would result in Lender beneficially owning shares of
Common Stock in an amount in excess of the Exchange Cap shall apply irrespective of whether or not the Principal Market is the
NASDAQ Capital Market.

 

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(b)          Crumbs
shall provide each stockholder entitled to vote at the next annual meeting of stockholders of Crumbs (the “Stockholder
Meeting”), to be held on or about June 10, 2014, a proxy statement (the “Proxy Statement”) soliciting
each such stockholder’s affirmative vote at the Stockholder Meeting for adoption of resolutions (the “Resolutions”)
approving the issuance of all of the Conversion Shares in accordance with applicable law, the provisions of the Crumbs’ bylaws
and the rules and regulations of the Principal Market (the “Stockholder Approval”). Crumbs shall use its commercially
reasonable efforts to solicit its stockholders’ adoption of the Resolutions and to cause the Board of Directors of Crumbs
to recommend to the stockholders that they adopt the Resolutions. The Proxy Statement shall contain such disclosures relating to
the Resolutions and the issuance of the Conversion Shares required by the SEC’s Schedule 14A and reasonably acceptable to
the Lender after review by McAfee & Taft A Professional Corporation at the expense of Crumbs. If Stockholder Approval is required
pursuant to this Section 5.5(b) and, despite the Company’s reasonable best efforts, the Stockholder Approval is not
obtained at a Stockholder Meeting, then Crumbs shall cause an additional Stockholder Meeting to be held each calendar quarter thereafter
until Stockholder Approval is obtained.

 

(c)          Voting
Agreement. If Stockholder Approval is required pursuant to Section 5.5(b), then (i) Crumbs will execute, and will use
its reasonable best efforts to cause each of Stephen Z. Fass, Julian R. Geiger, John D. Ireland, Edwin H. Lewis, EHL Holdings LLC,
Mark D. Klein, Frederick G. Kraegel, Leonard O. Potter, Kirk Alan Rose, Jeffrey D. Roseman, Shanna Goldstone, Robin Sepe, Edwin
Leong, Barry Mirowsky and Eric Wesolowski (collectively, the “Principal Stockholders”) to execute, a voting
agreement, in form and substance satisfactory to Lender (the “Voting Agreement”), pursuant to which, among other
things, each Principal Stockholder will agree, from and after the date of this Agreement and until the Stockholder Approval is
obtained, to vote or cause to be voted (including by written consent, if applicable) at the Stockholder Meeting all of the voting
securities of Crumbs that are beneficially owned by such Principal Stockholder and entitled to vote thereon (A) in favor of the
adoption of the Resolutions and (B) against any resolution that, if adopted, would be inconsistent with the Resolutions, and (ii)
Crumbs (A) shall use its reasonable best efforts to effectuate the transactions contemplated by the Voting Agreement, (B) shall
not amend, waive or terminate any provision of the Voting Agreement, (C) and shall enforce the provisions of the Voting Agreement
in accordance with its terms, including, without limitation, by promptly using its best efforts to seek specific performance of
the terms of the Voting Agreement in accordance with the terms thereof upon the breach by any of the Principal Stockholders of
any provisions thereof. The Principal Stockholders hold approximately 27.87% of the issued and outstanding share of Common Stock
of the Company.

 

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(d)          Limitations
on Conversion. Notwithstanding anything to the contrary contained in this Agreement, prior to March 31, 2016 the Notes shall
not be convertible by the Lender, and Crumbs shall not effect any conversion of the Notes or otherwise issue any shares of Common
Stock pursuant hereto, to the extent (but only to the extent) that after giving effect to such conversion, the Lender (together
with its affiliates) would beneficially own in excess of 34.99% (the “Maximum Percentage Cap”) of the Common Stock;
provided, that, the Maximum Percentage Cap shall not apply following the receipt by Lender of a Voluntary Prepayment Notice or
a Change in Control Notice from Borrowers or following the acceleration of the maturity of the Obligations following an Event of
Default.

 

Section 6.          Management
Rights of Lender. 

 

6.1           Board
of Directors. Following the Tranche I Closing Date and for so long as any of the Notes remain outstanding (the “Representation
Period”), Lender shall have the right, at any time, to: (a) appoint a representative (the “Observer”)
to attend any and all meetings of the Board of Directors of Crumbs, and (b) subject to Lender’s satisfaction of the Ownership
Threshold (as defined below), designate one (1) director candidate for appointment to the Board of Directors of Crumbs. 
Following the Tranche II Closing Date and throughout the Representation Period, Lender shall have the right, at any time, to designate
a second director candidate for appointment to the Board of Directors of Crumbs; provided, that, the foregoing designation rights
shall be subject to the satisfaction of any applicable corporate governance standards and other legal requirements of the
Principal Market.  The audit, nomination and compensation committees of Crumbs may each exclude the Observer from their respective
proceedings at the discretion of the respective committee. The director candidates designated by Lender are referred to herein
individually as a “Lender Candidate.” Upon Lender’s designation of a Lender Candidate pursuant to this
Section 6.1, Crumb’s Board of Directors shall take all reasonably necessary action to appoint the Lender Candidate
to the Board of Directors of Crumbs, provided that in doing so the current size of the Board of Directors shall either be maintained
or reduced, to serve until the next annual meeting of Crumbs stockholders. The Nominating and Corporate Governance Committee of
the Board of Directors shall nominate each Lender Candidate for election to the Crumb’s Board of Directors at each meeting
of the Company’s stockholders held during the Representation Period at which directors are to be elected commencing with
the first annual meeting of Crumb’s stockholder after which a Lender Candidate has been designated by Lender, and the Board
shall recommend to the stockholders currently scheduled that such Lender Candidate be elected at such meeting. As used herein,
Lender shall be deemed to satisfy the “Ownership Threshold” if Lender or its affiliates (x) is a holder of a Note
and (y) beneficially owns (as defined in Rule 13d-3 of the Exchange Act) in excess of 5.0% of the Common Stock of the Company.
Any such Lender Candidate that becomes a member of the Board of Directors of Crumbs, shall also serve as a member of the Board
of Managers of Holdings.

  

6.2           Executive
Officer

 

. On or prior to Tranche II Closing Date,
Borrower shall hire an executive officer, on such terms as shall be mutually agreeable by Crumbs and Lender, to assist in Borrowers’
management relating to co-branding and franchising matters.

  

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Section 7.          Conditions
Precedent.

 

7.1           Conditions
to Tranche I Loan. The Lender shall not be required to make the Tranche I Loan until the date (the “Tranche I Closing
Date”) on which the following conditions have been satisfied or waived in writing by Lender:

 

(a)          No
Event of Default. No Event of Default shall exist or result from the making of the Loan, and no event shall have occurred,
or shall occur with the making of the Loan, that with the giving of notice or passage of time, or both, would constitute an Event
of Default.

 

(b)          Representations
and Warranties. The representations and warranties in this Agreement that are qualified by a reference to materiality or Material
Adverse Effect shall be true and accurate as of the Tranche I Closing Date, and the representations and warranties in this Agreement
that are not qualified by a reference to materiality or Material Adverse Effect shall be true and accurate in all material respects
as of the Tranche I Closing Date.

 

(c)          Documents.
This Agreement and the Tranche I Note, Guaranty and Security Agreement, Grant of Security Interest in Trademarks, Membership Interest
Pledge Agreement, and Registration Rights Agreement shall be duly authorized, executed, and delivered to Lender.

 

(d)          Certificates
of Insurance. Lender shall have received the certificates of insurance referred to in Section 11.8.

 

(e)          Financing
Statement. UCC-1 financing statements naming each Borrower as debtor and Secured Party as Lender shall be properly filed with
the Secretary of State of the State of Delaware, and each Borrower shall have provided to Lender such evidence as Lender may reasonably
require to evidence the first priority of Lender’s security interest.

 

(f)          Secretary’s
Certificate. Lender shall have received a certificate of the secretary, manager or other responsible officer of each Borrower
certifying (i) copies Borrower’s organizational documents, (ii) copies of resolutions of the members, managers, or directors,
as applicable, of each Borrower authorizing the transactions contemplated in this Agreement and the other Loan Documents, and (iii)
the title, name and signature of each person authorized to sign the Loan Documents on behalf of each Borrower.

 

(g)          Certificate
of Good Standing. Lender shall have received a certificate of the appropriate Secretary of State certifying the existence and
good standing of each Borrower in the state of such Borrower’s organization.

 

(h)          Fees
and Expenses. Borrowers shall have paid all fees and expenses required by Section 4.6 of this Agreement and any other
Loan Documents.

 

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(i)          Other
Documents. Lender shall have received such other agreements, documents, instruments and certificates as it may reasonably request.

 

7.2           Conditions
to Tranche II Loan. Lender shall not be required to make the Tranche II Loan or grant any other accommodation to Borrowers
until the date (the “Tranche II Closing Date”) on which the following conditions have been satisfied or waived
in writing by Lender:

 

(a)          No
Event of Default. No Event of Default shall exist or result from the making of the Loan and no event shall have occurred, or
occur with the making of the Loan, that with the giving of notice or passage of time, or both, would constitute an Event of Default.

 

(b)          Representations
and Warranties. The representations and warranties in this Agreement that are qualified by a reference to materiality or Material
Adverse Effect shall be true and accurate as of Tranche II Closing Date, and the representations and warranties in this Agreement
that are not qualified by a reference to materiality or Material Adverse Effect shall be true and accurate in all material respects
as of the Tranche II Closing Date.

 

(c)          Other
Documents. Lender shall have received the Tranche II Note and such other agreements, documents, instruments and certificates
as it may reasonably request.

 

(d)          Performance
Obligations. Borrowers shall have operated their business substantially in accordance with the Business Plan and shall have
hired an executive officer pursuant to Section 6.2 of this Agreement.

 

(e)          Material
Adverse Effect. No event shall have occurred or circumstance exist that has or could reasonably be expected to have a Material
Adverse Effect that were not previously disclosed to Lender by Borrower.

 

Section 8.          Collateral.

 

8.1           Grant
of Security Interest. To secure the prompt payment and performance of all Obligations, each Borrower hereby grants to Lender
a first priority lien and continuing security interest in all of such Borrower’s Collateral.

 

8.2           No
Assumption of Liability. The security interests granted by this Agreement are given as security only and shall not subject
Lender to, or in any way modify, any obligation or liability of any Borrower relating to any of the Collateral.

 

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8.3           Agreements
Regarding Accounts. Except as otherwise provided herein, the Borrower, at its own expense, will diligently attempt to collect
upon all sums due the Borrower upon its accounts and contract rights. At any time, regardless of the existence of a default and
without notice to Borrowers, Lender may give notice to account debtors of the assignment of a Borrower’s Accounts to Lender
and require that the Accounts be paid directly to Lender, whether or not the amounts owed to such Borrower by the account debtors
so notified exceed the amount of the Obligations. Borrower will from time to time and as often as requested by the Lender, promptly
execute and deliver to the Lender one or more specific written assignments of any one or more Accounts or contract rights Lender
may select or designate, assigning the same to Lender. In each instance in which Lender may elect hereunder to effect direct collection
of any one or more accounts or contract rights of the Borrower, Lender shall also be entitled to take possession of all books and
records of the Borrower relating to such Account(s) or contract rights and the Borrower will not in any manner take or suffer any
action to be taken to hinder, delay, or interfere with Lender 's attempts to effect collection.

 

8.4           Cross
Collateralization and Cross Default. Each of the Notes is cross-collateralized and cross-defaulted with the other to the fullest
extent permitted by applicable Law.

 

8.5           Financing
Statement; Further Assurances. Lender is authorized to file, and promptly on request, Borrowers shall deliver such financing
statements, assignments, notices and other documents and instruments as it shall deem necessary or appropriate to perfect and continue
the perfection of the security interests in the Collateral, or otherwise to give effect to the intent of this Agreement.

 

8.6           Post-Funding
Covenants. Promptly following the initial funding under the Tranche I Loan, Borrowers shall use their commercially reasonable
efforts, and shall cause their Subsidiaries, to (i) obtain all the necessary consents required for Lender and Borrower to execute
and record Leasehold Mortgages on each Borrower’s and each Subsidiary’s Leases, and (ii) to assist Lender in obtaining
Control Agreements for each Borrower’s Deposit Accounts. The failure to obtain any such consents shall not constitute an
Event of Default hereunder.

 

Section 9.          Representations
and Warranties of Lender. Lender represents and warrants to the Borrowers as follows:

 

9.1           No
Public Sale or Distribution. Lender (i) is acquiring the Notes, and (ii) upon conversion of the Notes will acquire the Conversion
Shares (and with the Notes, collectively, the “Securities”) issuable upon conversion of the Notes, in each case,
for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation
of applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making
the representations herein, Lender does not agree, or make any representation or warranty, to hold any of the Securities for any
minimum or other specific term and reserves the right to dispose of the Conversion Shares at any time in accordance with or pursuant
to a registration statement or an exemption under the 1933 Act.

 

9.2           Accredited
Investor Status. Lender is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D, as
amended, under the 1933 Act.

 

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9.3           Information.
Lender and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the
Borrowers which have been requested by Lender. Lender and its advisors, if any, have been afforded the opportunity to ask questions
of the Borrowers. Lender understands that its investment in the Notes and Conversion Shares involves a high degree of risk. Lender
has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect
to its acquisition of the Notes and Conversion Shares.

 

9.4           Transfer
or Resale. Lender understands that except as provided in the Registration Rights Agreement (i) the Securities have not been
and are not being registered under the 1933 Act or any state securities laws and, accordingly, are characterized as “restricted
securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Borrowers in a transaction
not involving a public offering and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered
thereunder, (B) Lender shall have delivered to Crumbs (if requested by Crumbs) an opinion of counsel to Lender, in a form reasonably
acceptable to Crumbs, to the effect that such Notes or Conversion Shares to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration, or (C) Lender provides Crumbs with reasonable assurance that such
Notes and Conversion Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act
(or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Notes and Conversion Shares made
in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable,
any resale of the Notes and Conversion Shares under circumstances in which the seller (or the Person (as defined below) through
whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with
some other exemption under the 1933 Act or the rules and regulations of the SEC promulgated thereunder.

 

9.5           Legends.
Lender understands that the Securities shall bear any legend as required by the “blue sky” laws of any state and a
restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of stock certificates
for the Conversion Shares):

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY),
IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE
TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

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Section 10.         Representations
and Warranties of Borrowers. Each Borrower jointly and severally represents and warrants to Lender as follows:

 

10.1         Legal
Status. Crumbs Holdings is a limited liability company duly formed and existing in good standing under the Laws of the State
of Delaware. Crumbs is a corporation duly incorporated and existing in good standing under the Laws of the State of Delaware. Each
Subsidiary is a limited liability company duly formed and existing in good standing under the Laws of such Subsidiary’s state
of incorporation. Each Borrower and Subsidiary is qualified or licensed to do business, and is in good standing as a foreign limited
liability company or corporation, as applicable, in each of the jurisdictions in which the failure to so qualify or to be so licensed
would reasonably be expected to have a Material Adverse Effect.

 

10.2         Subsidiaries.
Other than as set forth in Schedule 10.2, no Borrower or Subsidiary owns any voting or economic interests in any other Person.

 

10.3         Authorization
and Validity. The execution, delivery and performance of the Loan Documents have been duly authorized by all necessary organizational
action. Each Loan Document is an enforceable obligation of each Borrower in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency or similar Laws affecting the enforcement of creditors’ rights generally. The Board
of Director’s of Crumbs authorized and approved Lender becoming an interested stockholder under Section 203 of the Delaware
General Corporation Law as a result of Lender’s acquisition of the common stock of Crumbs through payment of PIK interest
or conversion of the Note.

 

10.4         No
Conflict. Except as set forth on Schedule 10.4, the execution, delivery, and performance by each Borrower of this Agreement
and the other Loan Documents, including the conversion of the Notes to common stock of Crumbs Bake Shop, Inc., do not and will
not:

 

(a)          conflict
with the terms of the certificate of formation or limited liability company agreement of each Borrower and Subsidiary;

 

(b)          violate
any provision of any judgment, decree, or order of any court or governmental authority by which any Borrower or Subsidiary is bound,
or any provision of any Law or regulation applicable to any Borrower or Subsidiary;

 

(c)          result
in a breach of, or constitute a default under, any contract, obligation, indenture, or other instrument to which any Borrower or
Subsidiary is a party or by which any Borrower or Subsidiary may be bound, except where such breach of or default under would not
reasonably be expected to have a Material Adverse Effect; or

 

(d)          result
in or require the imposition of any lien or encumbrance on any of any Borrower’s or Subsidiary’s property.

 

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10.5         No
Consents. Except as set forth on Schedule 10.5 or which have been obtained, the execution, delivery, and performance
by each Borrower and Subsidiary of this Agreement, including the conversion of the Notes to Common Stock of Crumbs, do not and
will not require any authorization, approval, or other action by, or notice to or filing with, any governmental authority, regulatory
body, or any other Person, except for any disclosure filing obligations Crumbs has to the SEC.

 

10.6         Indebtedness;
Priority. No Borrower or Subsidiary has any outstanding Indebtedness, except Permitted Indebtedness. Except for Permitted Liens,
No Borrower or Subsidiary has granted a lien or security interest in, or otherwise pledged, any of the Collateral to any third
party, and the Collateral is free and clear of all liens and encumbrances of any kind.

 

10.7         Title
to Properties. Each Borrower and Subsidiary has, as applicable, good, marketable and indefeasible title to (or valid leasehold
interests in) all of its material real and personal property free and clear of all liens, charges, security interests and other
encumbrances, except Permitted Liens. Schedule 10.7 sets forth a complete list of all real property owned or leased by Borrowers
or any Subsidiary.

 

10.8         Taxes.
Each Borrower and Subsidiary has filed all federal, state, and local tax returns and other reports that such Borrower or Subsidiary
is required by Law to file, and has paid, or made provision for the payment of, all taxes upon it, its income and its properties
that are due and payable, except to the extent (i) being contested diligently and in good faith by proper proceedings, (ii) that
would not have a Material Adverse Effect if such proceedings were to be adversely determined, and (iii) that such Borrower or Subsidiary
has delivered written notice thereof to Lender.

 

10.9         Litigation.
Except as set forth on Schedule 10.9 or as disclosed in the SEC Documents, there are no suits, proceedings, claims, or disputes
pending or, to the knowledge of any Borrower, threatened against or affecting any Borrower or Subsidiary or any of a Borrower’s
or Subsidiary’s assets or properties that (a) relate to any of the Loan Documents or the transactions contemplated thereby,
or (b) if adversely determined, could reasonably be expected to have a Material Adverse Effect.

 

10.10         Compliance
with Laws. Each Borrower and Subsidiary is in compliance in all material respects with all Laws and regulations applicable
to each Borrower and Subsidiary, and their business and properties.

 

10.11         Compliance
with Environmental Laws. Crumbs and its Subsidiaries (i) are in compliance with all Environmental Laws in all material respects,
(ii) have all permits, licenses or other approvals required of them under Environmental Laws to conduct their respective business,
and (iii) are in material compliance with the terms and conditions of any such permit, license or approval where, in each of the
foregoing clauses (i), (ii) and (iii), the failure to so comply would reasonably be expected to have a Material Adverse Effect.

 

10.12         Locations
of Collateral. Schedule 10.12 sets forth an accurate and complete list of each location where any Collateral is stored.

 

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10.13         Financial
Statements. The unaudited financial statements of Crumbs dated as of September 30, 2013 filed with the SEC, together with the
related notes, fairly present in all material respects the financial condition of Crumbs and its Subsidiaries as of the dates indicated
and the results of operations and changes in cash flows for the periods therein specified in conformity with GAAP consistently
applied throughout the periods involved, subject to year-end adjustments; and, except as disclosed therein, there are no material
off-balance sheet arrangements or any other relationships with unconsolidated entities or other Persons, that may have a material
current or, to Crumbs’ knowledge, material future effect on its financial condition, results of operations, liquidity, capital
expenditures, capital resources or significant components of revenue or expenses.

 

10.14         Liabilities.
No Borrower or Subsidiary has any material liabilities, fixed or contingent, that are not reflected in the financial statements
delivered to Lender or that have not otherwise been disclosed in writing to Lender or as disclosed in the SEC Documents.

 

10.15         Intellectual
Property. Except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect,
each Borrower and Subsidiary owns or has the right to use pursuant to a valid and enforceable written license, implied license
or other legally enforceable right, all of the Intellectual Property that is necessary to conduct its business as currently conducted
(the “Borrower Intellectual Property”). Except as disclosed in the Schedule 10.15, there is no outstanding
or pending, or, to the knowledge of Borrowers, threatened in writing action, suit, other proceeding or claim by any third Person
challenging or contesting the validity, scope, use, ownership, enforceability, or other rights of each Borrower in or to, (i) as
of the date of this Agreement, any Borrower Intellectual Property, and (ii) as of any other date, any material Borrower Intellectual
Property, and no Borrower or Subsidiary has received any written notice regarding, any such action, suit, or other proceeding.
No Borrower or Subsidiary has infringed or misappropriated any material rights of others, except as would not reasonably be expected
to have a Material Adverse Effect. As of the date of this Agreement, there is no pending or, to the knowledge of Borrowers, threatened
action, suit, other proceeding or claim by others that any Borrower or Subsidiary infringes upon, violates or uses the Intellectual
Property rights of others without authorization, and no Borrower or Subsidiary has received any written notice regarding, any such
action, suit, other proceeding or claim.

 

10.16         Capitalization.
Schedule 10.16 sets forth (i) the amounts of authorized, issued and outstanding shares of all capital stock of Crumbs, and
(ii) all outstanding warrants, options, rights, units, or other instruments exercisable or convertible into equity securities of
Crumbs. All of the issued and outstanding shares of capital stock of Crumbs are duly authorized and validly issued, fully paid
and nonassessable, have been issued in compliance with all federal and state and foreign securities laws, were not issued in violation
of or subject to any preemptive rights or other rights to subscribe for or purchase securities that have not been waived in writing;
the Notes and the Conversion Shares, have been duly authorized and the Conversion Shares, when issued, delivered and paid for in
accordance with the terms of the Notes will have been validly issued and will be fully paid and nonassessable. Except as set forth
on Schedule 10.16, there are no preemptive rights or other rights to subscribe for or to purchase, or any restriction upon
the voting or transfer of any shares of common stock issuable upon conversion of the Notes pursuant to the organizational documents
of Borrowers or its Subsidiaries or any agreement to which Crumbs or any of its Subsidiaries is a party or by which Crumbs or any
of its Subsidiaries is bound. As of the date of this Agreement, all of the issued and outstanding equity interests of each of Crumbs’
Subsidiaries have been duly and validly authorized and issued and are fully paid and nonassessable, and Crumbs owns of record and
beneficially, free and clear of any claims, Liens (other than Permitted Liens) and voting proxies, all of the issued and outstanding
equity interests of its Subsidiaries, other than Crumbs Holdings.

 

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10.17         Internal
Controls and Procedures. Crumbs maintains a system of internal accounting controls sufficient to provide reasonable assurances
that (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for
assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv)
the recorded accountability for material assets is compared with existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

 

10.18         Complete
Disclosure. No Loan Document contains any untrue statement of a material fact or fails to disclose any material fact. No Borrower
has failed to disclose to Lender in writing any fact or circumstance of which the Borrowers are aware, that could reasonably be
anticipated to have a Material Adverse Effect.

 

10.19         No
Breaches. Except as disclosed on Schedule 10.19, no event has occurred on the part of the Borrowers or any of their
respective Subsidiaries, which, with notice or lapse of time or both, would constitute such breach or other default in the performance
of any agreement or condition contained in any agreement under which each Borrower or any such Subsidiary may be bound, or to which
any of its assets is subject, including defaults in the payment of rent under certain of the real property leases of the Borrowers
or their respective Subsidiaries, except for such breaches or defaults as would not reasonably be expected to have a Material Adverse
Effect.

 

Section 11.         Affirmative
Covenants. Until all Obligations have been satisfied in full, each Borrower shall comply with the following covenants:

 

11.1         Payment
of Indebtedness. Except as set forth on Schedule 11.1, each Borrower shall, and shall cause each of its Subsidiaries
to, promptly pay all of its Indebtedness as it becomes due, except to the extent that any such Indebtedness (other than the Obligations)
is being contested diligently and in good faith and for which reserves or other provisions (if any) required by GAAP shall have
been made.

 

11.2         Cash
Management System. Each Borrower shall, and shall cause each of its Subsidiaries to, use a cash management system that is substantially
similar to the cash management system in place at the time of the Tranche I Closing Date.

 

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11.3         Existence.
Except with respect to the closing of certain locations at which certain Subsidiaries of the Borrower conducts business (the “Store
Closings”), each Borrower shall do or cause to be done, and shall cause each of its Subsidiaries to do or cause to be
done, all things necessary to preserve, renew, and keep in full force and effect its existence, continue to conduct and operate
its business as being conducted and operated presently, and comply with the provisions of its organizational documents. Each Borrower
will, and shall cause each of its Subsidiaries to, become and remain qualified to conduct business in each jurisdiction where the
nature of the business or ownership of property by the Borrower or Subsidiary may require such qualification.

 

11.4         Compliance
with Laws; Licenses. Each Borrower shall, and shall cause each of its Subsidiaries to, comply in all material respects with
all Laws, rules, regulations and orders applicable to such Borrower or Subsidiary, their business or their properties, where the
failure to do so would have a Material Adverse Effect. Each Borrower shall, and shall cause each of its Subsidiaries to, maintain
all licenses, permits, governmental approvals, rights, privileges, and franchises necessary for the conduct of its business. Upon
request by Lender, Borrower shall provide Lender with certificates of the appropriate Secretary of State certifying the existence
and good standing of each Subsidiary in its state of organization.

 

11.5         Taxes.
Each Borrower shall, and shall cause each of its Subsidiaries to, pay when due all federal, state and local taxes, assessments
and governmental charges or levies imposed upon it or upon its income or profits or upon any of its properties, except, to the
extent contested diligently and in good faith by proper proceedings that stay the imposition of any penalty, fine or lien resulting
from the non-payment thereof and with respect to which adequate reserves have been set aside for the payment thereof in accordance
with GAAP.

 

11.6         Collateral.
Except in the case of any Store Closings:

 

(a)          Location
of Collateral. Other than as set forth on Schedule 10.12, each Borrower shall, and shall cause each of its Subsidiaries
to, maintain all Collateral at a location that is either owned by such Borrower or Subsidiary or leased by such Borrower or Subsidiary.

 

(b)          Records
with respect to Collateral. Each Borrower shall, and shall cause each of its Subsidiaries to, keep accurate and complete records
of such Borrower’s or Subsidiary’s Collateral, including, acquisitions and dispositions of such Collateral, and shall
submit the records to Lender upon request.

 

(c)          Defense
of Title to Collateral. Each Borrower shall, and shall cause each of its Subsidiaries to, at all times, defend such Borrower’s
or Subsidiary’s title to the Collateral and the lien of Lender in such Collateral against all Persons, claims and demands.

 

(d)          Disposition
of Collateral. Except for the sale of inventory in the ordinary course of business, no Borrower shall, and shall cause each
of its Subsidiaries not to, sell, lease or otherwise dispose of any Collateral without the prior written consent of Lender, other
than replacement of Collateral that is worn, damaged or obsolete with items of like function and value, if the replacement Collateral
is acquired substantially contemporaneously with such disposition and is free of liens.

 

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(e)          Condition
of Collateral. Each Borrower shall, and shall cause each of its Subsidiaries to, maintain the Collateral in good operating
condition and repair, and make all necessary replacements and repairs so that the value and operating efficiency of such Collateral
shall be preserved at all times, reasonable wear and tear excepted. Each Borrower shall, and shall cause each of its Subsidiaries
to, keep all of its Collateral from being affixed to any real property.

 

(f)          Intellectual
Property. Each Borrower shall, and shall cause each of its Subsidiaries to, take all action necessary or advisable to maintain
and preserve all of the Intellectual Property.

 

(g)          Deposit
Accounts. Each Borrower shall, and shall cause each of its Subsidiaries to, maintain all of its Deposit Accounts in an insured
account at a commercial bank and is organized under the Laws of the United States of America or any state thereof. In addition,
if the funds in the Southeastern CD are released, Borrowers shall cause such funds to be deposited directly into a Deposit Account
that is covered by an existing Control Agreement.

 

11.7         Inspection.
Each Borrower shall, and shall cause each of its Subsidiaries to, permit Lender from time to time, subject (except where a default
exists) to reasonable notice, to visit and inspect the Collateral and the other properties and operations of such Borrower or Subsidiary,
inspect and audit such Borrower’s or Subsidiary’s books and records, and discuss with its officers, employees, agents,
accountants and advisors such Borrower’s or Subsidiary’s business, assets, prospects and results of operations. Borrowers
will reimburse Lender for all its reasonable charges, costs and expenses incurred in connection with any of the foregoing.

 

11.8         Insurance.
Each Borrower shall, and shall cause each of its Subsidiaries to, maintain and keep in force the insurance policies described on
Exhibit B or such other insurance policies as may be reasonably required by Lender from time to time. The insurance
policies of each Borrower and Subsidiary shall contain an endorsement, in form and substance satisfactory to Lender, describing
Lender as additional insured or loss payees, as applicable, and providing that the insurance company shall give Lender 30 days
prior written notice (10 days in the event of cancellation for non-payment of premiums) before such policies are altered, canceled
or expired.

 

11.9         Maintenance
of Employee Benefit Plans. Each Borrower will, and shall cause each of its Subsidiaries to, maintain each employee benefit
plan as to which it may have any material liability or responsibility in material compliance with ERISA and all other applicable
Laws.

 

11.10      Reporting
Obligations.

 

(a)          Monthly
Reports. Within 20 days after the close of each calendar month, Borrowers shall provide to Lender an unaudited balance sheet
of Crumbs on a consolidated basis and the related statements of income and shareholders’ equity for such month, together
with a certification by a responsible financial officer that such financial statements are complete and correct, present the financial
conditions at the end of such period and the results of its operation during such period in accordance with GAAP, consistently
applied, and certifying, in a form satisfactory to Lender, that Borrowers have not been and are not then in default as to any
of the covenants contained in this Agreement or any of the Loan Documents and that there was no known Event of Default (or specifying
those Events of Default of which he or she is aware).

 

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(b)          Quarterly
Reports. Within 45 days after the close of each fiscal quarter of Borrowers, Borrowers shall provide to Lender an unaudited
balance sheet of Crumbs on a consolidated basis and the related statements of income and shareholders’ equity for such fiscal
quarter, together with a certification by a responsible financial officer that such financial statements are complete and correct,
present the financial conditions at the end of such period and the results of its operation during such period in accordance with
GAAP, consistently applied, and certifying, in a form satisfactory to Lender, that Borrowers have not been and are not then in
default as to any of the covenants contained in this Agreement or any of the Loan Documents and there was no known Event of Default
(or specifying those Events of Default of which he or she is aware).

 

(c)          Annual
Reports. Within 90 days after the close of each fiscal year of each Borrower, Borrowers shall provide to Lender an audited
balance sheet of Crumbs on a consolidated basis and the related statements of income and shareholders’ equity for such fiscal
year, together with a certification by a responsible financial officer that such financial statements are complete and correct,
present the financial conditions at the end of such period and the results of its operation during such period in accordance with
GAAP, consistently applied, and certifying, in a form satisfactory to Lender, that such Borrowers have not been and are not then
in default as to any of the covenants contained in this Agreement or any of the Loan Documents and there was no known Event of
Default (or specifying those Events of Default of which he or she is aware).

 

(d)          Tax
Returns. Within 10 days of the filing of each of each Borrower’s annual state or federal tax returns, such Borrower
shall provide to Lender a true and correct copy of such tax return.

 

(e)          Notice
of Litigation. Immediately following any Borrower’s knowledge thereof, Borrowers shall deliver to Lender written notice
of any litigation that is pending or threatened against any Borrower or any Subsidiary that, if adversely determined, would (a)
materially impair the ability of the Borrower to carry on its business substantially as now conducted, (b) materially and adversely
affect the condition (financial or otherwise) of the Borrower, or (c) result in monetary damages in excess of $100,000, the Borrower
will give Lender a written notice specifying the nature thereof and what actions, if any, the Borrower is taking and proposes to
take with respect thereto.

 

(f)          Notice
of Default. Immediately following any Borrower’s knowledge of any default or Event of Default under any Loan Document,
Borrowers shall deliver to lender written notice of the default or Event of Default together with a reasonably detailed description
thereof and what actions, if any, the Borrower is taking and propose to take with respect thereto.

 

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(g)          Change
in Control Notice. Borrowers shall provide Lender with 30 day written notice prior to any Change in Control, specifying in
reasonable detail the event or transaction expected to cause such Change in Control (the “Change in Control Notice”).

 

(h)          Other
Information. Promptly upon request, each Borrower shall provide Lender with any other information or reports that Lender reasonably
requests.

 

Section 12.          Negative
Covenants. Each Borrower jointly and severally covenants and agrees with Lender, so long as the Obligations remain outstanding,
as follows:

 

12.1         Existence
of Liens. No Borrower shall, nor shall it cause any of its Subsidiaries to, create, assume or suffer to exist any mortgage,
pledge, security interest, encumbrance, lien, charge or deposit arrangement, or and other arrangement having the practical effect
of the foregoing on any of the assets of Borrowers or any Subsidiary, including any leasehold mortgage on the Leases, except for
(a) Permitted Liens, and (b) liens in favor of Lender securing the Indebtedness under the Loan.

 

12.2         Sale
of Assets. No Borrower shall, nor shall it cause any of its Subsidiaries to, sell, transfer, convey, or otherwise dispose of,
whether pursuant to a single transaction or a series of transactions, any of its material assets, other than in accordance with
the ordinary course of business and with respect to any Store Closings.

 

12.3         Changes
in Structure. Except as contemplated in the Business Plan, in the case of any Store Closings or as otherwise consented to in
writing by Lender, no Borrower shall, nor shall it cause any of its Subsidiaries to: (i) merge or consolidate with any Person (or
enter into any merger or consolidation agreement or plan), or permit any such merger or consolidation with it; (ii) sell all or
substantially all of its assets; (iii) make any material change in the nature of or manner in which it conducts its business; (iv)
amend its certificate of formation or limited liability company agreement or its certificate of incorporation or bylaws, as applicable;
(v) except pursuant to this Agreement, issue any Indebtedness convertible into any equity interest; (vi) issue any equity interests
or rights convertible into equity interests; or (vii) agree to do any of the foregoing.

 

12.4         Distributions.
Except for distributions or dividends paid (i) by any Subsidiary to Crumbs Holdings, (ii) by Crumbs Holdings to its members,
(iii) in accordance with the Tax Receivable Agreement, and (iv) required under Crumbs Holdings’ Third Amended and Restated
Operating Agreement, no Borrower shall, nor shall it cause any of its Subsidiaries to, pay any dividends, or make any distribution
of cash or property or similar payments, or incur or permit to exist and lien or restriction on any such payments (except for restrictions
and liens arising under the Loan Documents).

 

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12.5         Limitations
on Other Indebtedness. No Borrower shall, nor shall it cause any of its Subsidiaries to, create, incur, assume, become or be
liable in any manner in respect of, or suffer to exist, any Indebtedness whether evidenced by a note, bond, debenture, agreement,
letter of credit or similar or other obligation, or accept any deposits or advances of any kind, other than the Permitted Debt.

 

12.6         Loans
and Investments. No Borrower shall, nor shall it cause any of its Subsidiaries to, make any loans to, or investments in, any
Person, except for (a) advances to employees for travel expenses and similar items in the ordinary course of business and (b) extensions
of trade credit in the ordinary course of business.

 

12.7         Subsidiaries.
No Borrower shall, nor shall it cause any of its Subsidiaries to, form or acquire any Subsidiary.

 

12.8         Transactions
with Affiliates. No Borrower shall, nor shall it cause any of its Subsidiaries to, enter into or permit to exist any transaction
or series of transactions with any Subsidiary or an officer, director, or shareholder thereof, other than (i) payment of reasonable
compensation (including benefits) to and reimbursement of reasonable expenses of officers, directors and managers, including managers'
fees and managers' reimbursable expenses, and (ii) except as otherwise specifically limited in this Agreement, other transactions
which are entered into in the ordinary course of such Person's business and further provided that any such permitted affiliated,
inter-company or equity interest owner debt or receivables are and remain fully subordinate to the Indebtedness under the Loan
in written instruments reasonably acceptable to Lender.

 

12.9         Collection
of Accounts. Each Borrower shall, and shall cause its Subsidiaries to, collect its Accounts in the ordinary course of business,
and will not, nor shall it cause any of its Subsidiaries to, make any discount, credit, rebate or other reduction in the original
amount owing except, prior to an Event of Default, for ordinary course reductions in accordance with such Borrower’s or Subsidiary’s
existing policies.

 

12.10       Compensation.
No Borrower shall, and shall cause its Subsidiaries not to, without the prior written consent of Lender, increase the compensation
or salary of any director or officer of any Borrower or Subsidiary above the amount of such officer’s or director’s
compensation or salary at the time of the Tranche I Closing Date.

 

12.11       Leases.
No Borrower shall, and shall cause its Subsidiaries not to, without the prior written consent of Lender, enter into any lease or
real property with an annual obligation of more than $50,000.

 

12.12       Change
in Control. No Borrower shall, and shall cause its Subsidiaries not to, enter into any transaction or series of related
transactions that result in a Change in Control under this Agreement unless Borrowers shall have first delivered a Change of Control
Notice to Lender.

 

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Section
13.         Omitted.

 

Section 14.        Events of Default. The occurrence of any of the following shall constitute an “Event of Default:”

 

14.1         Non-Payment
of Loans. The failure of Borrowers to pay any principal, interest or other Obligation due under any of the Loan Documents when
due and payable, and such failure continues for ten days.

 

14.2         Breach
of Covenant. The failure of Borrowers or any Subsidiary to perform or observe in any material respect any other covenant or
agreement set forth herein or in any of the other Loan Documents for a period of 30 days after notice of such failure, or if the
Borrowers or any Subsidiary have commenced to diligently cure such default, within such additional time period as may be needed
to cure such default.

 

14.3         Business
Plan. A substantial failure by Borrowers to comply with a material term of the Business Plan for a period of 15 days after
notice of such failure or if the Borrowers have commenced to diligently cure such default, within such additional time period as
may be needed to cure such default; provided, that, if Borrowers fail to substantially comply with the material terms of the Business
Plan three times in any twelve-month period, Lender may declare an immediate default.

 

14.4         Failure
to pay Taxes. The failure of a Borrower or any Subsidiary to pay when due all federal, state and local taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or upon any of its properties, except, to the extent
contested diligently and in good faith by proper proceedings that stay the imposition of any penalty, fine or lien resulting from
the non-payment thereof.

 

14.5         Guaranty.
The occurrence of any default or breach under any Guaranty after the passage of any applicable notice and cure periods.

 

14.6         Breach
of Representation or Warranty. Any representation, statement, certificate, schedule, or report made or furnished to Lender
by or on behalf of Borrowers or any Subsidiary pursuant to the terms of this Agreement being false in any material respect at the
time it was made.

 

14.7         Change
in Control. The occurrence of any Change in Control or the failure to deliver the Change in Control Notice.

 

14.8         Destruction
of Collateral. A loss, theft, damage or destruction occurs with respect to any Collateral, and the amount not covered by insurance
exceeds $100,000.

 

14.9         Insolvency.
Any Borrower or Subsidiary shall make an assignment for the benefit of creditors, or if bankruptcy proceedings or other proceedings
for relief under any bankruptcy Law or any Law for the relief of debtors shall be instituted by or against it and, if instituted
against it, the same is not dismissed within 60 days of the filing thereof.

 

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14.10       Dissolution.
Any order, judgment, or decree shall be entered against any Borrower or Subsidiary decreeing its involuntary dissolution or split
up and such order shall remain undischarged and unstayed for a period in excess of 60 days; or any Borrower or Subsidiary shall
otherwise dissolve or cease to exist, except in connection with any Store Closings or any Subsidiary that no longer maintains any
operations or holds any assets.

 

14.11       Levy
Judgment. An attachment or garnishment writ, or the like, is levied against all or any portion of the assets of Borrower or
any Subsidiary or a judgment for the payment of money is rendered against any Borrower or Subsidiary and within 60 days from the
entry of judgment has not been discharged, bonded or stayed pending appeal or, if any such judgment is affirmed on appeal, has
not been discharged or bonded within 60 days from the entry of the final order of affirmance on appeal.

 

14.12       Cross-Default.
A default or event of default shall occur in any Indebtedness of any Borrower or a Guarantor in excess of $100,000.

 

14.13       Failure
of Perfection. The security interests granted by any Borrower to Lender shall for any reason fail or cease to create a valid
and perfected and, except to the extent otherwise permitted by this Agreement, first priority lien in favor of Lender.

 

14.14       Nasdaq
Delisting. The failure of the Common Stock to be listed on the Nasdaq Capital Market.

 

Section 15.         Remedies.
If an Event of Default shall occur, then during the continuance thereof:

 

15.1         All
Obligations, notwithstanding any term of this Agreement or the other Loan Documents to the contrary, shall at Lender’s option
and without further notice become immediately due and payable, without presentment, demand, protest or notice of dishonor, all
of which are hereby expressly waived by each Borrower;

 

15.2         Lender
shall have all rights, powers and remedies available under this Agreement and the other Loan Documents or accorded by Law, including,
without limitation, the right to resort to any or all security for the Obligations and to exercise any or all of the rights of
a beneficiary or secured party pursuant to applicable Law;

 

15.3         Lender
may require each Borrower to assemble Collateral at such Borrower’s expense, and make it available to Lender at a place designated
by Lender;

 

15.4         Lender
may enter any premises where Collateral is located and, without charge by Borrower, use the Collateral in the operation of Borrower’s
business or store Collateral on such premises until the sale or other disposition of the Collateral (which sale may be conducted
on such premises);

 

    	29

    	 

    

 

15.5         Each
Borrower agrees that 10 days’ notice of any proposed sale or other disposition of Collateral by Lender shall be reasonable.
Lender shall have the right to sell, lease or otherwise dispose of any Collateral for cash, credit or any combination thereof,
and Lender may purchase any Collateral at public or, if permitted by Law, private sale and, in lieu of actual payment of the purchase
price, may set off the amount of such price against the Obligations. All rights, powers and remedies of Lender in connection with
the Obligations may be exercised at any time by Lender and from time to time after the occurrence of an Event of Default, are cumulative
and not exclusive, and shall be in addition to any other rights, powers or remedies provided by Law or equity.

 

15.6         Notwithstanding
the forgoing provisions of this Section 15, upon the occurrence of any event that constitutes an Event of Default, Lender
agrees prior to exercising any of its remedies hereunder, to negotiate in good faith with Borrowers in an attempt to address such
Event of Default in a manner reasonably satisfactory to Lender and Borrowers so as to result in the Lender’s agreement to
forbear from the exercise of its remedies hereunder; provided, that, nothing contained herein shall obligate the Lender to forbear
from exercising such remedies, which shall only arise pursuant to a forbearance or similar agreement between the Lender and Borrowers.

 

Section 16.         License.
Each Borrower, on behalf of itself and its Subsidiaries, hereby irrevocably constitutes and appoints Lender and any officer or
agent of Lender, with full power of substitution, as such Borrower’s or its Subsidiary’s true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of such Borrower or Subsidiary or in Lender's own name, for the
purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents
and instruments that may be necessary or useful to accomplish the purposes of this Agreement and the other Loan Documents, and,
without limiting the generality of the foregoing, hereby gives such attorneys the power and right, on behalf of Borrower and Borrower’s
Subsidiaries, without notice to or assent by such Borrower or its Subsidiaries, to do the following: (i) to indorse and collect
any cash proceeds of the Collateral, (ii) to apply the proceeds of any Collateral received by Lender to the Obligations, and (iii)
to discharge past due taxes, assessments, charges, fees or liens on the Collateral. Borrowers shall reimburse Lender on demand
for any payment made or any expense incurred by Lender in connection therewith, provided that this authorization shall not relieve
Borrowers of any of their obligations under any of the Loan Documents.

 

Section 17.         Miscellaneous.

 

17.1         Failure
or Indulgence Not Waiver. No failure or delay on the part of Lender in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof or of any other right, power or privilege. All
rights and remedies existing under this Agreement and the other Loan Documents are cumulative, and not exclusive of any rights
or remedies otherwise available.

 

17.2         Modification.
No modification, amendment or waiver of any provision of this Agreement or the other Loan Documents, nor the consent to any departure
by Borrowers therefrom, shall in any event be effective unless the same shall have been approved by Lender and shall be in writing
signed by the Lender and, with respect to any amendment, the Borrowers. Such waiver or consent shall then be effective only in
the specific instance and for the purpose for which given. No notice to or demand on Borrowers in any case shall entitle Borrowers
to any other or further notice or demand in the same, similar or other circumstances.

 

    	30

    	 

    

 

17.3         Omitted.

 

17.4         Indemnification.
Borrowers shall indemnify Lender and all of its officers, employees, directors, attorneys, agents, affiliates, successors and assigns
(each, an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by
any Indemnitee or asserted against any Indemnitee by any third party or by Borrowers or any Guarantor arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or
the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom,
(iii) any actual or alleged presence or release of hazardous materials on or from any property owned or operated by Borrowers or
any of their subsidiaries, or any environmental liability related in any way to Borrowers or any of their subsidiaries, or (iv)
any actual or prospective claims, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract,
tort or any other theory, whether brought by a third party or by Borrowers or any Guarantor, and regardless of whether any Indemnitee
is party thereto..

 

17.5         Notices.
Except as otherwise expressly provided herein, any notice herein required or permitted to be given shall be in writing and shall
be deemed effective when delivered personally, by certified mail, return receipt requested, or by FedEx or other national overnight
courier to the appropriate party at the address set forth below (or at such other address as may be designated by either party
in a written notice sent in accordance with this section):

 

	If to Borrowers:	Crumbs Bake Shop, Inc.
	 	Crumbs Holdings LLC
	 	110 West 40th Street
	 	New York, NY 10018
	 	Attn: Ed Slezak
	 	 
	with a copy to:	Cole, Schotz, Meisel, Forman & Leonard, P.A.
	 	Court Plaza North
	 	25 Main Street
	 	Hackensack, NJ 07601
	 	Attn: Marc P. Press, Esq.
	 	 
	If to Lender:	Fischer Enterprises, L.L.C.
	 	15209 Grayson Drive
	 	Edmond, OK 73013
	 	Attn: S. Scott Fischer
	 	 
	With a copy to:	McAfee & Taft A Professional Corporation
	 	10th Floor, Two Leadership Square
	 	211 N. Robinson
	 	Oklahoma City, OK 73102
	 	Attn: Louis J. Price

 

    	31

    	 

    

 

17.6         Severability.
In case any provision in this Agreement or the other Loan Documents shall be invalid, illegal or unenforceable, such provision
shall be severable from the remainder of such contract and the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

 

17.7         Construction.
The rule of construction that a document is to be construed most strictly against the party who drafted the document shall not
be applicable because all parties participated in the preparation of this Agreement and the other Loan Documents. “Includes”
and “including” are not limiting. References to exhibits shall be to exhibits to this Agreement.

 

17.8         Applicable
Law. The Laws of the State of Oklahoma shall govern this Agreement and the other Loan Documents, and the legal relations between
the parties without giving effect to any conflict of Law provision (whether of the State of Oklahoma or any other jurisdiction)
that would cause the application of the Law of any other jurisdiction.

 

17.9         Assignability.
No Borrower may assign its rights or obligations under this Agreement or the other Loan Documents to any other Person without the
prior written consent of the other party, and any attempted assignment in violation hereof shall be null and void ab initio.

 

17.10       Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement
and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this
Agreement and of signature pages by facsimile transmission shall constitute effective execution and delivery of this Agreement
and may be used in lieu of the original Agreement for all purposes.

 

17.11       Further
Assurances. At any time or from time to time upon the request of Lender, each Borrower will, and will take affirmative steps
to cause third parties to, execute and deliver such further documents and do such other acts and things as Lender may reasonably
request in order to effect fully the purposes of this Agreement and the other Loan Documents and to provide for the payment of
the Obligations in accordance with the terms of this Agreement and the other Loan Documents.

 

17.12       Attorneys’
Fees. In the event any party institutes any action or proceeding to enforce the terms and conditions of this Agreement or the
other Loan Documents, the prevailing party shall be entitled to reasonable attorneys’ fees and costs.

 

    	32

    	 

    

 

17.13       Usury.
It is the intention of Borrowers and Lender to comply with applicable usury Laws. Therefore, notwithstanding any provisions to
the contrary in this Agreement or in any other Loan Document, neither this Agreement nor any other Loan Document shall require
the payment or permit the collection of interest in excess of the maximum amount permitted by Law. If compliance with this Agreement
or any other Loan Document would result in a violation of applicable usury Law, the amount of the payment obligation imposed by
this Agreement or any other Loan Document shall be reduced to the maximum amount permitted by Law. If Lender receives any payment
of interest, or receives any payment or transfer that is deemed to be interest by applicable Law, in an amount that exceeds applicable
Law, the amount in excess of the limit imposed by law shall be applied to reduce the principal amount owing under this Agreement
or the other Loan Document. If the amount received in excess of the limit imposed by Law exceeds the unpaid principal balance due
to Lender under this Agreement, the excess amount shall be refunded without interest to Borrowers.

 

17.14       Integration.
This Agreement and the other Loan Documents reflect the entire understanding of the parties with respect to the transactions contemplated
hereby and shall not be contradicted or qualified by any other agreement, oral or written, whether before or after the date hereof,
except in a writing executed by the parties hereto and referring specifically to this Agreement. From time to time prior to the
payment in full of the Obligations, Borrower and Lender may conduct discussions and negotiations with respect to Loans and the
Loan Documents. Borrower agrees that no part of such discussions or negotiations should be understood as an offer to contract or
to alter the terms of the Loan or the Loan Documents prior to the execution of a definitive written agreement. Prior to the execution
of a definitive written agreement, Borrower shall not act in reliance on any statement of Lender or its officers. No single officer
of Lender is authorized to approve any change to the terms of the Loans or the Loan Documents without prior approval in accordance
with Lender’s policies and procedures.

 

17.15       Time.
Time is of the essence of this Agreement and the Loan.

 

17.16       VENUE.
ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE DISTRICT COURT OF OKLAHOMA COUNTY, OKLAHOMA,
OR IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA. BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH
PARTY IRREVOCABLY ACCEPTS THE JURISDICTION OF SUCH COURTS. THIS AGREEMENT SHALL NOT AFFECT THE RIGHT OF LENDER TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY BORROWER IN ANY OTHER JURISDICTION ALLOWED BY LAW. EACH PARTY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE
OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

 

17.17       WAIVER
OF JURY TRIAL. EACH BORROWER AND LENDER VOLUNTARILY, KNOWINGLY, IRREVOCABLY, AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A
JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN ANY BORROWER AND LENDER ARISING
OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, THE LOAN DOCUMENTS, OR THE LOAN. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER
TO MAKE THE LOAN.

 

    	33

    	 

    

 

EXECUTED as of the
date first written above.

 

	“BORROWERS”	 
	 	CRUMBS BAKE SHOP, INC., a Delaware corporation
	 	 
	 	By:/s/Edward M. Slezak
	 	Name: Edward M. Slezak
	 	Title: Interim Chief Executive Officer
	 	 
	 	CRUMBS HOLDINGS LLC, a Delaware limited liability company
	 	 
	 	By:/s/Edward M. Slezak
	 	Name: Edward M. Slezak
	 	Title: Interim Chief Executive Officer
	 	 
	
        “LENDER”

        
	 
	 	 
	 	FISCHER ENTERPRISES, L.L.C., an Oklahoma limited liability company
	 	 
	 	By:/s/ Scott Fischer
	 	      S. Scott Fischer, Chief Operating Officer 

  

[Signature Page to Senior
Secured Loan and Security Agreement]

 

    	 

    	 

    

 

EXHIBIT A-1

 

TRANCHE I NOTE

(Convertible)

 

	$3,535,000.00	January 20, 2014
	 	Oklahoma City, Oklahoma

 

Each of the undersigned,
for value received jointly and severally promises to pay to the order of Fischer Enterprises, L.L.C. (“Lender”)
at 15209 Grayson Drive, Edmond, Oklahoma 73013, or such other office as Lender may designate from time to time, the aggregate principal
amount of $3,535,000.00, together with interest thereon at the rates set forth below.

 

This Note is the “Tranche
I Note” referred to in, and evidences indebtedness incurred under, and is subject to the terms and provisions of, the Senior
Secured Loan and Security Agreement, dated as of January 20, 2014 (as amended, restated, supplemented or otherwise modified from
time to time, the “Loan Agreement;” terms not otherwise defined have the meanings assigned to them in the Loan
Agreement), between the undersigned and Lender. Reference is made to the Loan Agreement for a statement of the terms and provisions
under which this Note may or must be paid prior to its due date or its due date accelerated.

 

Each of the undersigned
further jointly and severally promises to pay interest on the unpaid principal amount of the Loan from the date of such Loan until
the Loan is paid in full, payable at the rate of 7% per annum. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Interest will be payable quarterly on January 1, April 1, July 1 and October 1 (each, an “Interest Payment
Date”) either (a) entirely in cash, or (b) entirely by increasing the principal amount of the outstanding Notes by the
amount of interest due for such quarter (the “PIK Interest Option”). Borrowers shall be deemed to have elected
to pay interest by the PIK Interest Option unless Lender has received a cash payment for the full amount of interest due for such
quarter by the Interest Payment Date. During the continuance of an Event of Default, interest hereunder shall payable at the rate
of 18% per annum. Payments of both principal and interest are to be made in lawful money of the United States of America.

 

Borrowers shall make
any amendment to the Notes requested in writing by Lender to evidence such PIK Interest (it being understood that the lack of such
amendment shall in no way affect the Notes being legal and valid evidence of any such PIK Interest). Any PIK Interest shall constitute
principal of the Notes and shall accrue interest as such.

 

Except as otherwise
set forth in the Loan Agreement from time to time, all outstanding principal and accrued but unpaid interest shall be due and payable
on the earliest to occur of: (a) acceleration of the Obligations due to the occurrence of an Event of Default, or (b) July 1, 2016.
This Note is convertible into validly issued, fully paid and non-assessable shares of Crumbs’ common stock, par value $.0001
per share on the terms and conditions set forth in the Loan Agreement.

 

    	Exhibit A-1 to LSA
Tranche I Note

    	 

    

 

This Note is made under
and governed by the law of the State of Oklahoma applicable to contracts made and to be performed entirely within such state. Each
of the undersigned, any other party liable with respect to the Loan and any and all endorsers and accommodation parties, and each
one of them, if more than one, waive any and all presentment, demand, notice of dishonor, protest, and all other notices and demands
in connection with the enforcement of the Lender’s rights under this Note, the Loan Agreement and the other Loan Documents,
except as otherwise specifically provided for therein.

 

[Signature Page Follows]

 

    	2

    	 

    

 

EXECUTED as of the
date first written above.

 

	CRUMBS BAKE SHOP, INC., a Delaware corporation	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

	CRUMBS HOLDINGS LLC, a Delaware 

limited liability company	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	Exhibit A-1 to LSA
Tranche I Note

    	 

    

 

EXHIBIT A-2

 

TRANCHE II NOTE

(Convertible)

 

	$1,500,000.00	______________, 2014
	 	Oklahoma City, Oklahoma

 

Each of the undersigned,
for value received jointly and severally promises to pay to the order of Fischer Enterprises, L.L.C. (“Lender”)
at 15209 Grayson Drive, Edmond, Oklahoma 73013, or such other office as Lender may designate from time to time, the aggregate principal
amount of $1,500,000.00, together with interest thereon at the rates set forth below.

 

This Note is the “Tranche
II Note” referred to in, and evidences indebtedness incurred under, and is subject to the terms and provisions of, the Senior
Secured Loan and Security Agreement, dated as of January 20, 2014 (as amended, restated, supplemented or otherwise modified from
time to time, the “Loan Agreement;” terms not otherwise defined have the meanings assigned to them in the Loan
Agreement), between the undersigned and Lender. Reference is made to the Loan Agreement for a statement of the terms and provisions
under which this Note may or must be paid prior to its due date or its due date accelerated.

 

Each of the undersigned
further jointly and severally promises to pay interest on the unpaid principal amount of the Loan from the date of such Loan until
the Loan is paid in full, payable at the rate of 7% per annum. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Interest will be payable quarterly on January 1, April 1, July 1, and October 1 (each, an “Interest Payment
Date”) either (a) entirely in cash, or (b) entirely by increasing the principal amount of the outstanding Notes by the
amount of interest due for such quarter (the “PIK Interest Option”). Borrowers shall be deemed to have elected
to pay interest by the PIK Interest Option unless Lender has received a cash payment for the full amount of interest due for such
quarter by the Interest Payment Date. During the continuance of an Event of Default, interest hereunder shall payable at the rate
of 18% per annum. Payments of both principal and interest are to be made in lawful money of the United States of America.

 

Borrowers shall make
any amendment to the Notes requested in writing by Lender to evidence such PIK Interest (it being understood that the lack of such
amendment shall in no way affect the Notes being legal and valid evidence of any such PIK Interest). Any PIK Interest shall constitute
principal of the Notes and shall accrue interest as such.

 

Except as otherwise
set forth in the Loan Agreement from time to time, all outstanding principal and accrued but unpaid interest shall be due and payable
on the earliest to occur of: (a) acceleration of the Obligations due to the occurrence of an Event of Default, or (b) July 1, 2016.
This Note is convertible into validly issued, fully paid and non-assessable shares of Crumbs’ common stock, par value $.0001
per share on the terms and conditions set forth in the Loan Agreement.

 

    	Exhibit A-2 to LSA
Tranche II Note

    	 

    

 

This Note is made under
and governed by the law of the State of Oklahoma applicable to contracts made and to be performed entirely within such state. Each
of the undersigned, any other party liable with respect to the Loan and any and all endorsers and accommodation parties, and each
one of them, if more than one, waive any and all presentment, demand, notice of dishonor, protest, and all other notices and demands
in connection with the enforcement of the Lender’s rights under this Note, the Loan Agreement and the other Loan Documents,
except as otherwise specifically provided for therein.

 

[Signature Page
Follows]

 

    	2

    	 

    

 

EXECUTED as of the
date first written above.

 

	
        CRUMBS BAKE
SHOP, INC., a Delaware corporation
	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	
        CRUMBS HOLDINGS LLC, a Delaware

        limited liability company
	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	Exhibit A-2 to LSA
Tranche II Note

    	 

    

 

EXHIBIT B

 

INSURANCE REQUIREMENTS

 

		1.	Special Perils Insurance.

 

		(a)	Borrower will maintain property insurance against all
risks of loss customarily covered by “All Risk” or “Special Perils Form” policies as available in the
insurance market (the “Special Perils Insurance”).

 

		(b)	Each Special Perils Insurance policy shall cover at least
100% of the replacement value of all material properties of Borrower.

 

		(c)	Any Special Perils Insurance policy shall contain an
agreed amount endorsement or a coinsurance waiver and replacement cost value endorsement without reduction for depreciation.

 

		2.	Liability Insurance.

 

		(a)	Borrower shall maintain the following insurance for personal
injury, bodily injury, death, accident, and property damages (collectively, the “Liability Insurance”):

 

		(i)	Public liability insurance, including commercial general
liability insurance, and

 

		(ii)	Umbrella liability insurance as necessary.

 

		(b)	Liability Insurance shall provide coverage of at least
$1,000,000 per occurrence and $2,000,000 in annual aggregate.

 

		(c)	Liability Insurance shall include coverage for liability
arising from premises and operations, elevators, escalators, independent contractors, contractual liability, and products and
completed operations.

 

		3.	Statutory Employees’ Insurance.  Borrower
shall maintain workers’ compensation and disability insurance as required by law.

 

		4.	Policy Requirements.

 

		(a)	Borrower shall obtain all Required Insurance from domestic
carrier(s) authorized to do business in the State of Oklahoma and reasonably satisfactory to Lender with:

 

		(i)	A claims paying ability of not less than “A”
(or the equivalent) by S&P and one other rating agency satisfactory to Lender, and

 

		(ii)	“A X” or better financial strength rating
by AM Best.

 

    	Exhibit B to LSA
Insurance Requirements

    	 

    

 

		(b)	Borrower shall obtain Lender’s reasonable approval
of the amounts, deductibles, endorsements, form, insureds, loss payees, risk coverage, and sublimits for all required insurance.

 

		(c)	All required insurance shall contain such provisions
as are ordinary and customary in commercial loans similar to this Loan to protect Lender’s interest, including endorsements
to negate any coinsurance Borrower shall pay the premiums for all required insurance when due and payable. Borrower shall not
finance premiums under any arrangement that could, upon nonpayment, lead to premature cancellation of any required insurance.

 

		5.	Blanket Coverage. Borrower may provide any required
insurance under a blanket policy or policies provided that the blanket policy otherwise meets all requirements for required insurance
and is otherwise acceptable to Lender.

 

		6.	Protection of Lender’s Interest.

 

		(a)	Borrower shall cause its insurance carrier to give Lender
the following protections in each insurance policy (or an endorsement) as follows:

 

		(i)	an agreement not to change the deductible, coverage limit(s).
or other term(s) of the policy, if the policy would thereafter cease to comply with the Loan Agreement;

 

		(ii)	a waiver of any right to claim any premiums and commissions
against Lender; provided that the policy need not waive the requirement that the premium be paid in order for a claim to be paid
to the insured; and

 

		(iii)	an agreement to allow Lender to pay premiums to continue
the policy upon notice of cancellation for nonpayment.

 

		(b)	Every Property Insurance policy shall by its terms remain
valid and insure the Lender’s interest regardless of any:

 

		(i)	Named insured’s act, failure to act, negligence,
or violation of warranties, declarations, or conditions;

 

		(ii)	Occupancy of use of the property for purposes more hazardous
than those permitted; or

 

		(iii)	Exercise of any of Lender’s remedies.

 

    	Exhibit B to LSA
Insurance Requirements

    	 

    

   

Execution Version

 

EXHIBIT
C

 

MEMBERSHIP
INTEREST PLEDGE AGREEMENT

 

THIS MEMBERSHIP INTEREST
PLEDGE AGREEMENT (this "Agreement") is made as of January 20, 2014, between Crumbs Holdings LLC, a Delaware limited
liability company (“Pledgor”) and Fischer Enterprises, L.L.C., an Oklahoma limited liability company (“Lender”),
with reference to the following:

 

A.           Pledgor
owns one hundred percent (100%) of the issued and outstanding units of membership interests in each of the companies set forth
on Exhibit A (the “Pledged Entities”);

 

B.           Crumbs
Bake Shop, Inc., a Delaware corporation (“Crumbs”), and Pledgor, each as a borrower, and Lender are parties
to that certain Senior Secured Loan and Security Agreement, dated as of January 20, 2014 (such agreement, as amended, restated,
supplemented or otherwise modified from time to time, being hereinafter referred to as the "Loan Agreement"),
pursuant to which Lender has extended in favor of the Borrowers certain credit facilities;

 

C.           It
is a condition precedent to the obligations of Lender under the Loan Agreement that Pledgor shall have granted to Lender a first
priority security interest in and a lien on all of the outstanding membership units and interests of the Pledged Entities owned
by Pledgor and in which Pledgor have any interest at any time; and

 

D.           Pledgor
has determined that the execution, delivery and performance of this Agreement directly benefits and is in the best interest of
and supported by valuable consideration received by Pledgor.

 

NOW, THEREFORE, in
consideration of the credit to be extended pursuant to the Loan Agreement, and as a material inducement therefor, and for other
good and valuable consideration, the Pledgor hereby covenants and agrees with Lender as follows:

 

ARTICLE I

DEFINITIONS

 

1.1          Certain
Terms. Any capitalized terms used herein (including in the recitals hereto) and
not otherwise defined shall have the meaning assigned that term in the Loan Agreement. The following terms used herein shall have
the meanings indicated:

 

"Charter Documents"
means the (i) Articles or Organization or Certificate of Formation, as applicable, (ii) Operating Agreement, and (iii) all other
documents governing the formation and governance of each Pledged Entity.

 

"Collateral"
means (i) the Membership Interests, (ii) all of Pledgor's rights and benefits (but not any of Pledgor’s duties or obligations)
under any agreement (whether oral or written and whether now existing or hereafter entered into) for the sale of the Membership
Interests to the extent of the Obligations owed to Lender, (iii) all of Pledgor’s rights to payment arising from any sale,
transfer or other disposition of the Membership Interests to the extent of the Obligations owed to Lender, and (iv) all Proceeds
of the foregoing.

 

    	1

    	 

    

 

Execution Version

 

"Membership
Interests" means the entire interest of Pledgor in and to the Pledged Entities, including (i) the entire membership interest
of Pledgor in and to the Pledged Entities, including all common and preferred membership and equity ownership interest therein,
(ii) Pledgor’s share of the profits and losses of the Pledged Entities, (iii) Pledgor’s revenue interest in the Pledged
Entities, and all other associated rights to receive distributions from the Pledged Entities (whether in cash or in-kind and whether
ordinary, liquidating or otherwise), (iv) all payments and distributions (whether in cash or in-kind and whether ordinary, liquidating
or otherwise) from time to time made upon or with respect to Pledgor’s interest, and all other amounts due and payable, or
to become due and payable, on account of such interests, (v) Pledgor’s distributive share of assets of the Pledged Entities
upon liquidation or termination, (vi) Pledgor’s right to vote or participate in the management of the Pledged Entities, (vii)
Pledgor’s capital interest or capital account (however designated) in the Pledged Entities, and all rights of Pledgor with
respect thereto and all earnings, income and profits therefrom, (viii) any additional interests in the Pledged Entities, respectively,
from time to time acquired by Pledgor and all rights of Pledgor with respect to such additional interests and all earnings, income
and profits therefrom, and (ix) all other rights and interests of Pledgor in and to the Pledged Entities (whether arising under
the Charter Documents, by law or otherwise).

 

"Operating
Agreement" means the operating agreement or company agreement of each of the Pledged Entities.

 

"Proceeds"
means all proceeds of the Collateral, including (i) all amounts paid or payable to Pledgor upon any sale, transfer or other disposition
by Pledgor of all or any portion of the Membership Interests, and (ii) all proceeds in the form of accounts, collections, contract
rights, documents, instruments, chattel paper, general intangibles or payment intangibles relating in whole or in part to the Collateral.

 

1.2          Terms
Defined in UCC. Terms used herein that are defined in Article 9 of the UCC have
the respective meanings set forth therein.

 

ARTICLE II

GRANT AND CONTINUATION
OF SECURITY INTEREST

 

2.1          Security
Interest. To secure the Obligations, Pledgor does hereby pledge, transfer and assign
unto Lender, and grant to Lender a continuing, first priority security interest in, the Collateral. Such security interest is
granted as security only and shall not subject Lender or other holders from time to time of the Obligations to, or transfer or
in any way affect or modify, any obligation or liability of Pledgor with respect to the Membership Interests.

 

2.2          Obligations
Secured. The Collateral and the security interest therein created by this Agreement
shall secure the full and punctual payment of the Obligations, including the Notes, as well as all sums expended or advanced by
Lender pursuant to any term or provision of this Agreement.

 

    	2

    	 

    

 

Execution Version

 

ARTICLE III

REPRESENTATIONS AND
WARRANTIES

 

Pledgor represents
and warrants to Lender as follows:

 

3.1          Ownership.
Pledgor has good and indefeasible title to the Membership Interests owned by Pledgor, free and clear of any lien or encumbrance
of any kind, except for the security interest created by this Agreement or the Loan Agreement. The Membership Interests constitute
a one hundred percent (100%) unit ownership interest in the Pledged Entities and entitle Pledgor to receive one hundred percent
(100%) of the profits and losses of the Pledged Entities.

 

3.2          Charter
Documents. The Operating Agreement of each of the Pledged Entities is in full force
and effect and has not been amended or modified in any respect other than to the extent permitted by Section 4.1 of this Agreement.
Pledgor has made or paid all capital contributions required or requested to be made to the Pledged Entities contemplated by the
Charter Documents thereof. Pledgor is not in default in the payment or performance of Pledgor’s liabilities or obligations
under the Charter Documents, nor has Pledgor committed any material breach of the Charter Documents. No event of dissolution specified
in the Charter Documents has occurred, nor has any other action been taken to dissolve or terminate any of the Pledged Entities.

 

3.3          No
Prior Filings. No financing statement or other instrument similar in effect covering
all or any part of the Collateral is on file in any UCC filing office, except such as may have been filed in favor of Lender pursuant
to this Agreement and the Loan Agreement.

 

3.4          Certificates.
The Membership Interests in each of the Pledged Entities are not represented and evidenced by any form of certificate or other
similar instrument or writing; provided, however, in the event any such certificate or other instrument or writing hereafter evidences
or memorializes such Membership Interests in the Pledged Entities, they will be promptly delivered to the possession of Lender
within ten (10) days along with such executed membership powers in blank as requested by Lender.

 

3.5          Authorization.
This Agreement has been duly authorized, executed and delivered by Pledgor and constitutes the legal, valid and binding obligation
of Pledgor, enforceable in accordance with its terms except as (i) the enforceability thereof may be limited by bankruptcy, insolvency
or similar laws affecting creditors' rights generally, and (ii) rights of acceleration and the availability of equitable remedies
may be limited by equitable principles of general applicability.

 

3.6          Status
of Security Interest. Upon its execution of this Agreement and filing of an appropriate UCC financing statement authorized
to be filed by Pledgor and describing the Collateral, Lender will have a valid, first, and prior perfected security interest in
and to the Membership Interests and all other Collateral.

 

3.7          Approvals.
No authorization, approval or other action by, and no notice to or filing with, any Person is required which has not been taken
(i) for the grant by Pledgor of the security interest hereunder, (ii) for Pledgor’s execution, delivery or performance of
this Agreement, (iii) for the perfection of the security interest created hereunder, or (iv) except for such notices as are required
by the UCC or any other Loan Document, for the exercise by Lender of its rights and remedies hereunder. Following the occurrence
of any default of an Obligation, any transfer or proposed transfer of the Membership Interests by Lender, whether by public or
private sale of the Collateral, will not be subject to any restrictions on transfer or rights of first refusal, including any
which may be set forth in the Charter Documents.

 

    	3

    	 

    

 

Execution Version

 

ARTICLE IV

COVENANTS

 

Pledgor covenants and
agrees with Lender that, until the Obligations have been paid and satisfied in full:

 

4.1          Amendments
of Charter Documents. Pledgor will not, without the prior written consent of Lender
(which may be withheld by Lender in the exercise of its reasonable discretion), cause, permit or consent to any amendment or modification
of any Charter Document which would have the effect of reducing the Membership Interests.

 

4.2          Restriction
on Encumbrances. Pledgor will not create, incur, or permit to be placed, imposed,
or continued upon the Collateral any security interest, encumbrance, or other Lien of any type or nature whatsoever, other than
security interests in favor of Lender.

 

4.3          Transfer
of Membership Interests. Pledgor will not sell, transfer, pledge or otherwise encumber
the Membership Interests or any other property included in the Collateral unless in connection with such transfer the Obligations
are fully satisfied by Pledgor.

 

4.4          Further
Assurances. Pledgor will, at Pledgor’s sole expense and in such manner and
form as Lender may reasonably require, execute, deliver, file, and record any financing statement, specific assignment or other
paper and take any other action that may be necessary or commercially reasonable, or that Lender may reasonably request, in order
to create, preserve, perfect, or validate the security interest created hereunder or to enable Lender to exercise and enforce
its rights hereunder with respect to any of the Collateral. To the extent permitted by applicable law, Pledgor hereby authorizes
Lender to execute and file, in the name of Pledgor or otherwise, UCC financing statements which Lender in its sole discretion
may deem necessary or appropriate to further perfect the security interest created hereunder.

 

4.5          Perfection
Against Distributions. In the event Pledgor receives, by virtue of being or having
been an owner of any of the Collateral, any notes or other instruments or certificates with respect to the Membership Interests,
Pledgor will receive the same in trust for the benefit of Lender, will immediately notify Lender of such receipt, and will immediately
take all such actions and execute all such documents as Lender deems reasonably necessary or appropriate to continue or create
first and prior perfected Liens in favor of Lender covering such notes or other instruments or certificates.

 

4.6          Limitation
on Distributions. Pledgor agrees, covenants, and stipulates with Lender that Pledgor
will not, without the prior written consent of Lender, take any distributions from the Pledged Entities if and to the extent an
Event of Default has occurred under the Loan Agreement or any other Loan Document that remains uncured.

 

ARTICLE V

GENERAL AUTHORITY
AND POWERS AND REMEDIES UPON DEFAULT

 

5.1          Right
to Receive Distributions. If a default of any Obligation shall have occurred and
be continuing under this Agreement or the Loan Agreement, Lender shall have the right to receive all payments and distributions
made upon or with respect to the Collateral, and Pledgor agrees to take all such action as Lender may deem necessary or appropriate
to give effect to such right.

 

    	4

    	 

    

 

Execution Version

 

5.2          General
Authority. Pledgor hereby irrevocably appoints Lender as Pledgor’s true and
lawful attorney-in-fact, with full power of substitution, in the name of Pledgor, Lender or otherwise, for the sole use and benefit
of Lender and the holders of the Obligations, but at Pledgor’s expense, to the extent permitted by law, to exercise, at
any time and from time to time while a default of any Obligation has occurred and is continuing without timely cure under this
Agreement or the Loan Agreement, all or any of the following powers with respect to all or any of the Collateral:

 

(a)          to
ask, demand, sue for, collect, receive and give acquittance and receipts for any and all monies due or to become due upon or by
virtue thereof;

 

(b)          to
receive, endorse, and collect any drafts or other instruments, documents and chattel paper in connection with clause (a) preceding;
and

 

(c)          to
settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto.

 

5.3          Remedies
Upon Default. If a default of any Obligation shall have occurred and be continuing
without timely cure by Pledgor, Lender may exercise all the rights of a Lender under the UCC, including the right to sell the
Collateral or any part thereof at public or private sale or at any broker's board for cash, upon credit or for future delivery,
and at such price or prices as Lender may deem satisfactory. Lender, instead of exercising the power of sale herein conferred,
may proceed by a suit or suits at law or in equity to foreclose the security interest created hereunder and sell the Collateral,
or any portion thereof, under a judgment or decree of a court or courts of competent jurisdiction.

 

5.4          Provisions
Concerning Sale of Collateral. Lender or any other holder of the Obligations may
be the purchaser of any or all of the Collateral sold at any public sale (or, if the Collateral is of a type customarily sold
in a recognized market or is of a type which is the subject of widely distributed standard price quotations, at any private sale)
and thereafter hold the same absolutely, free from any right to claim of whatsoever kind. Lender is authorized, in connection
with any such sale, (i) to restrict the prospective bidders on or purchasers of any of the Collateral to a limited number of sophisticated
investors who will represent and agree that they are purchasing for their own account for investment and not with a view to the
distribution or sale of any of such Collateral and (ii) to impose other limitations or conditions in connection with any such
sale as Lender deems necessary or advisable in order to comply with law. Pledgor covenants and agrees that Pledgor will execute
and deliver such documents and take the other actions which Lender deems necessary or advisable in order that any such sale may
be made in compliance with law. Upon any such sale, Lender shall have the right to deliver, assign, and transfer to the purchaser
thereof the Collateral so sold. Each purchaser at any such sale shall hold the Collateral so sold absolutely free from any claim
or right of Pledgor of whatsoever kind, including any equity or right of redemption of Pledgor. Pledgor, to the extent permitted
by law, hereby specifically waive all rights of redemption, stay or appraisal which Pledgor have or may have under any law now
existing or hereafter enacted. Pledgor agrees that 10 days' written notice from Lender to Pledgor of Lender's intention to make
any such public or private sale shall constitute "reasonable authenticated notification" within the meaning of Section
9-611(b) of the UCC. At any such sale, the Collateral may be sold in one lot as an entirety or in separate parcels, as Lender
may determine reasonably appropriate. Lender shall not be obligated to make any such sale pursuant to any such notice. Lender
may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the same may be
so adjourned.

 

    	5

    	 

    

 

Execution Version

 

5.5          Waivers
by Pledgor. If a default of any Obligation shall have occurred and be continuing
beyond any applicable cure period, neither the Pledgor nor any Person claiming by, through or under Pledgor, to the extent Pledgor
may lawfully so agree, shall claim or seek to take advantage of any appraisement, valuation, stay, extension, or redemption law
now or hereafter in force in any locality where any of the Collateral is situated for purposes of applicable law, in order to
prevent or hinder the enforcement of this Agreement, or the absolute sale of the Collateral, or the final and absolute putting
into possession thereof, immediately after such sale, of the purchaser thereto; and Pledgor in Pledgor’s own right and for
all who may claim under them, hereby waives, to the full extent that they may lawfully do so, the benefit of all such laws and
any and all right to have the Collateral marshaled upon any enforcement of the security interest herein granted, and agrees that
Lender or any court having jurisdiction to enforce the security interest may sell the Collateral in parts or as an entirety.

 

5.6          Application
of Proceeds. Lender shall apply the proceeds of any foreclosure sale or other realization
upon the Collateral as follows (as modified, if necessary, by the requirements of applicable law):

 

(a)          First,
to the payment of all costs and expenses of any foreclosure and collection hereunder and all proceedings in connection therewith,
including reasonable fees and expenses of its agents and counsel;

 

(b)          Then,
to the reimbursement of Lender for all disbursements made by Lender for taxes, assessments or Liens superior to the security interest
and which Lender shall deem expedient to pay;

 

(c)          Then,
to the reimbursement of Lender for any other disbursements made by, or expenses incurred by, Lender in accordance with the terms
hereof;

 

(d)          Then,
to or among the amounts of fees, interest and principal then owing and unpaid in respect of the Obligations in accordance with
the provisions of the Notes and other Loan Documents; and

 

(e)          The
remainder of the proceeds, if any, shall be paid to Pledgor.

 

5.7          Enforcement
of Obligations. Nothing in this Agreement shall affect or impair the unconditional
and absolute right of Lender to enforce the Obligations as and when the same shall become due and payable in accordance with the
terms of the Notes or other Loan Documents, whether by acceleration or otherwise, and subject to any applicable Pledgor cure rights.

 

    	6

    	 

    

 

Execution Version

 

ARTICLE VI

MISCELLANEOUS

 

6.1          Amendments.
No change, amendment, modification, cancellation or discharge of any provision of this Agreement shall be valid unless consented
to in writing by Lender and Pledgor.

 

6.2          Assignment
of Rights. Lender shall have the right to assign all or any portion of its rights
in this Agreement to any subsequent holder or holders of the Notes or any portion thereof in accordance with the terms and provisions
of the Notes.

 

6.3          Parties
in Interest. As and when used herein, the term "Pledgor" shall
mean and include Pledgor’s successors and permitted assigns, and the term "Lender" shall mean and include
Lender's successors and assigns, and all covenants and agreements herein shall be binding upon and insure to the benefit of Pledgor
and Lender and their respective successors and assigns, provided that Pledgor shall not have any right to assign Pledgor’s
rights or duties hereunder to any other Person without the written consent of Lender.

 

6.4          GOVERNING
LAW. THIS AGREEMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY
THE INTERNAL LAWS OF THE STATE OF OKLAHOMA EXCEPT ONLY TO THE EXTENT THAT THE PERFECTION, EFFECT OF PERFECTION OR NONPERFECTION,
AND PRIORITY OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY
THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF OKLAHOMA.

 

6.5          Notices.
All notices, notifications, requests and demands required or authorized hereunder shall be made in accordance with and subject
to the notice provisions of the Loan Agreement. Notices served in person will be effective and deemed given when delivered; notices
sent by certified mail will be effective and deemed given three (3) Business Days after being deposited in the U.S. mail, postage
prepaid; notices sent by overnight courier for next day delivery will be effective and deemed given on the next Business Day after
being delivered to the courier service; and notices transmitted by fax will be deemed given when sent, as indicated by the sender's
written confirmation of transmission.         

 

6.6          Financing
Statement. Lender shall be entitled at any time to file a photographic or other reproduction of this Agreement as a financing
statement or otherwise file a UCC Financing Statement in accordance with the applicable provisions of the UCC.

 

6.7          Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall
constitute one and the same instrument.

 

[Signature Page Follows]

 

    	7

    	 

    

 

IN WITNESS WHEREOF,
Pledgor has executed and delivered this Membership Interest Pledge Agreement to and in favor of Lender, as of the date first stated
above.

 

	 	CRUMBS HOLDINGS LLC, a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Membership Pledge Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

Pledged Entities

 

		o	Crumbs 17th Street, LLC, a District of Columbia limited liability company

		o	Crumbs 42nd Street, LLC, a New York limited liability company

		o	Crumbs 92nd Street, LLC, a New York limited liability company

		o	Crumbs Americana, LLC, a California limited liability company

		o	Crumbs Beverly Hills, LLC, a California limited liability company

		o	Crumbs Broad Street, LLC, a New York limited liability company

		o	Crumbs Broadway LLC, a New York limited liability company

		o	Crumbs Brooklyn Heights LLC, a New York limited liability company

		o	Crumbs Calabasas, LLC, a California limited liability company

		o	Crumbs Catering LLC, a New York limited liability company

		o	Crumbs Clarendon LLC, a Virginia limited liability company

		o	Crumbs Columbia LLC, a New York limited liability company (f/k/a Crumbs 125th Street, LLC)

		o	Crumbs Columbus LLC, a New York limited liability company

		o	Crumbs Downtown II, LLC, a New York limited liability company

		o	Crumbs East Bakeshop II, LLC, a New York limited liability company

		o	Crumbs East End, LLC, a District of Columbia limited liability company

		o	Crumbs E-Commerce LLC, a New York limited liability company

		o	Crumbs Federal Street LLC, a Delaware limited liability company

		o	Crumbs Garment Center LLC, a New York limited liability company

		o	Crumbs Grand Central LLC, a New York limited liability company

		o	Crumbs Greenvale LLC, a New York limited liability company

		o	Crumbs Greenwich, LLC, a Connecticut limited liability company

		o	Crumbs Hoboken, LLC, a New Jersey limited liability company

		o	Crumbs Hollywood LLC, a California limited liability company

		o	Crumbs Huntington LLC, a New York limited liability company

		o	Crumbs II, LLC, a New York limited liability company

		o	Crumbs International Place, LLC, a Delaware limited liability company

		o	Crumbs L Street, LLC, a District of Columbia limited liability company

		o	Crumbs Larchmont, LLC, a California limited liability company

		o	Crumbs LaSalle, LLC, an Illinois limited liability company

		o	Crumbs L’Enfant Plaza, LLC, a District of Columbia limited liability company

		o	Crumbs Lexington LLC, a New York limited liability company

		o	Crumbs Madison LLC, a New York limited liability company

		o	Crumbs Malibu, LLC, a California limited liability company

		o	Crumbs Newark LLC, a New Jersey limited liability company

		o	Crumbs New Canaan, LLC, a California limited liability company

		o	Crumbs Oak Park, LLC, an Illinois limited liability company

		o	Crumbs Park Avenue LLC, a New York limited liability company

		o	Crumbs Park Avenue South, LLC, a New York limited liability company

		o	Crumbs Queens Center, LLC, a New York limited liability company

		o	Crumbs Retail Bake Shops, LLC, a Delaware limited liability company (f/k/a Crumbs Fulton Street, LLC

 

Exhibit A

Membership Interest Pledge Agreement

 

    	 

    	 

    

 

		o	Crumbs Ridgewood, LLC, a New Jersey limited liability company

		o	Crumbs Rittenhouse Square, LLC, a Delaware limited liability company

		o	Crumbs River North, LLC, an Illinois limited liability company

		o	Crumbs Sixth Avenue, LLC, a New York limited liability company

		o	Crumbs South Clark, LLC, an Illinois limited liability company

		o	Crumbs Stamford, LLC, a Connecticut limited liability company

		o	Crumbs Third Avenue LLC, a New York limited liability company

		o	Crumbs Times Square LLC, a New York limited liability company

		o	Crumbs Union Square LLC, a New York limited liability company

		o	Crumbs Union Station LLC, a District of Columbia limited liability company

		o	Crumbs Wall Street II, LLC, a New York limited liability company

		o	Crumbs West Madison, LLC, an Illinois limited liability company

		o	Crumbs Westfield LLC, a New Jersey limited liability company

		o	Crumbs Westport, LLC, a Connecticut limited liability company

		o	Crumbs Wholesale II, LLC, a New York limited liability company

		o	Crumbs Woodbury LLC, a New York limited liability company

 

Exhibit A

Membership Interest Pledge Agreement

 

    	 

    	 

    

      

Execution Version

 

EXHIBIT D

 

GRANT OF SECURITY INTEREST IN TRADEMARK

 

This GRANT OF SECURITY
INTEREST IN TRADEMARK (“Trademark Security Interest”) is made as of the 20th day of January, 2014 by and between
Crumbs Holdings LLC, a Delaware limited liability company (“Debtor”), and Fischer Enterprises, L.L.C., an Oklahoma
limited liability company (“Secured Party”).

 

RECITALS

 

A.           Secured
Party, Debtor and Crumbs Bake Shop, Inc. are parties to that certain Senior Secured Loan and Security Agreement dated concurrently
herewith (such agreement, as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”),
pursuant to which the Debtor has agreed to grant a security interest in the Collateral, including, without limitation, United States
Trademark Registration Nos. 3,696,945 for the mark SERVING SMILES DAILY filed October 30, 2008; 3,717,588 for the mark MADE BY
HAND. BAKED WITH LOVE filed October 24, 2008; 3,720,870 for the mark CRUMBS BAKE SHOP (and design) filed October 24, 2008; and
3,720,871 for the mark CRUMBS BAKE SHOP (and design) (collectively, the “Trademark Registrations”), as well
as United States Trademark Application Serial Nos. 85/826,907 for the mark CRUMBS BAKE SHOP (and design) filed January 18, 2013;
86/066,657 for the mark CRUMBS filed September 17, 2013; 86/066,667 for the mark CRUMBS BAKE SHOP filed September 17, 2013; and
86/072,025 for the mark CRUMBS GLUTEN FREE filed September 23, 2013 (collectively, the “Trademark Applications”);

 

B.           For
purposes of this Trademark Security Interest, capitalized terms used but not defined herein shall have the meanings set forth in
the Loan Agreement; and

 

C.           Secured
Party and Debtor desire to execute a separate Trademark Security Interest specifically directed to the Trademark Registrations
and Trademark Applications that is suitable for recordation in the Assignment Division of the U.S. Patent and Trademark Office.

 

NOW, THEREFORE, in
accordance with the Loan Agreement, and in consideration of the premises and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, it is hereby agreed that:

 

1.          Grant
of Security Interest. Debtor hereby assigns, grants, transfers and conveys to Secured Party a security interest in all of Debtor’s
right, title and interest in and to the Collateral, including but not limited to the Trademark Registrations and Trademark Applications,
together with the goodwill of the business connected with the use of and symbolized by the Trademark Registrations and Trademark
Applications, and all proceeds and products of the Trademark Registrations and Trademark Applications, and all causes of action
arising prior to or after the date hereof for infringement of the Trademark Registrations and Trademark Applications or unfair
competition regarding the same, to secure the prompt and complete payment and performance of Obligations under the Loan Agreement.
Debtor hereby irrevocably authorizes Secured Party at any time and from time to time to file in any filing office in any Uniform
Commercial Code jurisdiction, including but not limited to the Assignment Division of the U.S. Patent and Trademark Office, any
initial financing statements and amendments thereto that indicate the Collateral as all assets of Debtor or words of similar effect,
to the extent that a security interest in the Collateral can be perfected by such filing.

 

    	 

    	 

    

 

2.          Governing
Law. This Trademark Security Interest shall be governed by and construed under the laws of the State of Oklahoma, without regard
to the conflicts of law provisions thereof.

 

3.          Conflict.
The rights and remedies of the Secured Party with respect to the security interest granted herein are without prejudice and are
in addition to those set forth in the Loan Agreement, all terms and provisions of which are incorporated herein by reference. In
the event of a conflict between the terms and conditions of this Trademark Security Interest and the terms and conditions of the
Loan Agreement, the terms and conditions of the Loan Agreement shall govern, supercede, and prevail.

 

4.          Successors.
This Trademark Security Interest and the covenants and agreements herein contained shall inure to the benefit of Secured Party,
its successors, and assigns, and shall be binding upon Debtor, its successors, and assigns.

 

5.          Counterparts.
This Trademark Security Interest may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, Secured Party
and Debtor have caused this instrument to be executed as of the date first above written.

 

	SECURED PARTY:	 	 
	 	 	 
	 	Fischer Enterprises, L.L.C., an Oklahoma limited liability company 
	 	 	 
	 	By:	 
	 	Name:	S. Scott Fischer
	 	Title:	Chief Operating Officer
	 	 	 
	DEBTOR:	 	 
	 	 	 
	 	Crumbs Holdings LLC, a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

  

EXHIBIT E

 

DEPOSIT ACCOUNT CONTROL
AGREEMENT

 

Post Closing Delivery

 

    	Exhibit E to LSA
Deposit Account Control Agreement

    	 

    

 

EXHIBIT F

 

CONVERSION NOTICE

FOR CRUMBS BAKE SHOP, INC.

 

Reference is made to
that certain Senior Secured Loan and Security Agreement dated as of January ___, 2014 (the “Loan Agreement”),
between Crumbs Holdings LLC (“Crumbs Holdings”) and Crumbs Bake Shop, Inc. (the “Company”,
together with Crumbs Holdings, collectively, the “Borrowers”), and Fischer Enterprises, L.L.C. (“Lender”),
pursuant to which the Borrowers issued a Tranche I Promissory Note and a Tranche II Promissory Note, each in favor of Lender (collectively,
the “Notes” and each a “Note”). In accordance with the Loan Agreement and the Notes, the
Lender hereby elects to convert the Conversion Amount (as defined in the Loan Agreement) of the Note indicated below into shares
of Common Stock, $0.0001 par value per share (the “Common Stock”) of the Company, as of the date specified below:

 

	Date of Conversion:	 	 
	 	 	 
	Aggregate principal to be converted:	 	 
	 	 	 
	Aggregate accrued and unpaid Interest and accrued and unpaid late charges with respect to such portion of the aggregate principal and such aggregate interest to be converted:	 	 
	 	 	 
	AGGREGATE CONVERSION AMOUNT TO BE CONVERTED:	 	 
	 	 	 
	Please confirm the following information:	 	 
	 	 	 
	Conversion Price:	 	 
	 	 	 
	Number of shares of Common Stock to be issued:	 	 

 

    	Exhibit F to LSA
Conversion Notice

    	 

    

 

Please issue the Common Stock into which
the Note is being converted in the following name and to the following address:

 

	Issue to:	 
	 	 
	 	 
	 	 
	 	 
	 	 
	Facsimile Number:	 
	 	 
	Holder:	 
	 	 
	By:	 
	 	 
	Title:	 

  

	Dated:	 

 

	Account Number:	 

	(if electronic book entry transfer)	 
	 	 
	Transaction Code Number:	 
	 	(if electronic book entry transfer)

 

    	Exhibit F to LSA
Conversion Notice

    	 

    

 

EXHIBIT G

     

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights Agreement (the
“Agreement”) is made and entered into as of this 20th day of January, 2014 by and among Crumbs Bake Shop, Inc., a Delaware
corporation (the “Company”), and Fischer Enterprises, L.L.C., the “Lender” under that certain Senior Secured
Loan and Security Agreement, dated as of January 20, 2014, by and among the Company and Crumb Holdings LLC, as “Borrowers”,
and the Lender (the “Loan Agreement”).

 

RECITALS

 

A.           In
connection with the Loan Agreement, the Lender has agreed, upon the terms and subject to the conditions of the Loan Agreement to
make a Loan in an aggregate principal amount of $5,000,000 to the Borrowers that will be evidenced by a Tranche I Note and a Tranche
II Note (as each such term is defined in the Loan Agreement) which will be convertible into Conversion Shares (as defined in the
Loan Agreement) in accordance with the terms of the Loan Agreement.

 

B.           To
induce the Lender to make available the Loan under the Loan Agreement, the Company has agreed to provide certain registration rights
to Lender under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute
(collectively, the “ 1933 Act “), and applicable state securities laws.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and each of the Lender hereby agree as follows:

 

1.          Certain
Definitions.

 

In addition to those terms defined above
and elsewhere in this Agreement, the terms set forth below shall, for purposes of this Agreement, have the respective meanings
indicated. Capitalized terms used but not defined herein shall have the respective meanings specified in the Loan Agreement.

 

“Common Stock” means
the Company’s common stock, par value $0.0001 per share, and any securities into which such shares may hereinafter be reclassified.

 

“Prospectus” means (i)
the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to
the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in
such prospectus, and (ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act.

 

    	 

    	 

    

 

“Register,” “registered”
and “registration” refer to a registration made by preparing and filing a Registration Statement or similar
document in compliance with the 1933 Act (as defined below), and the declaration or ordering of effectiveness of such Registration
Statement or document.

 

“Registrable Securities”
means (i) the Conversion Shares, and (ii) any capital stock of the Company issued or issuable with respect to the Conversion Shares
or the Notes, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or
similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are converted or
exchanged and shares of capital stock of a successor entity into which the shares of Common Stock are converted or exchanged, in
each case, without regard to any limitations on conversion of the Notes; provided that a security shall cease to be a Registrable
Security upon (A) sale of such Registrable Security pursuant to a Registration Statement or Rule 144 under the 1933 Act, (B) with
respect to a Registrable Security held by any particular Person, when such Person is permitted to sell such Registrable Security
without restriction pursuant to Rule 144, (C) when the Registrable Security is resold to the Company for cash, or (D) when the
Registrable Security otherwise ceases to be outstanding.

 

“Registration Statement”
means any registration statement of the Company filed under the 1933 Act that covers the resale of any of the Registrable Securities
pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such Registration Statement.

 

“SEC” means the U.S.
Securities and Exchange Commission.

 

“Shelf Registration”
means an offering of Registrable Securities made on a delayed or continuous basis pursuant to Rule 415 under the 1933 Act.

 

“1934 Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

    	2

    	 

    

 

2.          Registration.

 

(a)          Demand
Registration Rights.

 

(i)          At
any time following the closing of the purchase and sale of the Notes contemplated by the Loan Agreement, the Company shall receive
a request (each such request shall be referred to herein as a “Demand Registration”) from the Lender that the Company
effect the registration under the Securities Act of the number of Registrable Securities designated by Lender but of not less than
10% of the outstanding Registrable Securities, and specifying the intended method of disposition thereof (which may include a Shelf
Registration provided that the Company is eligible to use Rule 415 for the purposes thereof), then the Company shall use its commercially
reasonable efforts to effect, as expeditiously as possible, the registration under the Securities Act of all Registrable Securities
for which Lender has requested registration under this Section 2(a)(i), all to the extent necessary to permit the disposition (in
accordance with the intended methods thereof as aforesaid) of the Registrable Securities to be registered. At any time prior to
the effective date of the registration statement relating to such registration, Lender may revoke such request by providing reasonable
written notice to the Company revoking such request.

 

(ii)         Demand
Registrations pursuant to this Section 2(a) are subject to the following limitations:

 

(A)         The
Lender shall be entitled to have a total of two (2) Demand Registrations effected on Form S-1 (including any successor form, “Form
S-1”) or Form S-3 (including any successor Form, “Form S-3”) at any time when the Company is eligible
to use such form. A Demand Registration effected on Form S-1 shall not reduce the number of available Demand Registrations pursuant
to the foregoing sentence if a registration statement with respect thereto does not become effective under the Securities Act and
remain effective for at least one hundred eighty (180) days; provided that such registration statement shall not be considered
a Demand Registration if, after such registration statement becomes effective, such registration statement is interfered with by
any stop order, injunction or other order or requirement of the SEC or other governmental agency or court.

 

(B)         Upon
notice to the Lender, the Company may postpone effecting a registration pursuant to this Section 2(a) on one occasion during any
period of six consecutive months for a reasonable time specified in the notice but not exceeding thirty (30) days (which period
may not be extended or renewed), if (i) an investment banking firm of recognized national standing shall advise the Company and
Lender in writing that effecting the registration would materially and adversely affect an offering of securities of the Company
the preparation of which had then been commenced or (ii) the Company is in possession of material non-public information the disclosure
of which would be required by the registration during the period specified in such notice the Company reasonably believes would
not be in the best interests of the Company.

 

(iii)        The
Company shall use its reasonable best efforts to have the Registration Statement declared effective as soon as practicable. The
Company shall notify the Lender by facsimile or e-mail as promptly as practicable, and in any event, within twenty-four (24) hours,
after any Registration Statement is declared effective and shall simultaneously provide the Lender with copies of any related Prospectus
to be used in connection with the sale or other disposition of the securities covered thereby.

 

    	3

    	 

    

 

(iv)        For
not more than twenty (20) consecutive days or for a total of not more than forty-five (45) days in any twelve (12) month period,
the Company may suspend the use of any Prospectus included in any Registration Statement contemplated by this Section in the event
that the Company determines in good faith that such suspension is necessary to (A) delay the disclosure of material non-public
information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the Company, in the
best interests of the Company or (B) amend or supplement the affected Registration Statement or the related Prospectus so that
such Registration Statement or Prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus in light of the circumstances
under which they were made, not misleading (an “Allowed Delay”); provided that the Company shall promptly (a) notify
Lender in writing of the commencement of an Allowed Delay, but shall not (without the prior written consent of Lender) disclose
to Lender any material non-public information giving rise to an Allowed Delay, (b) advise the Lender in writing to cease all sales
under the Registration Statement until the end of the Allowed Delay and (c) use its reasonable best efforts to terminate an Allowed
Delay as promptly as practicable.

 

(v)         If
at any time the SEC takes the position that the offering of some or all of the Registrable Securities in a Registration Statement
is not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under the 1933 Act or requires Lender
to be named as an “underwriter”, the Company shall use its best efforts to persuade the SEC that the offering contemplated
by the Registration Statement is a valid secondary offering and not an offering “by or on behalf of the issuer” as
defined in Rule 415 and that Lender is not an “underwriter”. The Lender shall have the right to participate or have
its counsel participate in any meetings or discussions with the SEC regarding the SEC’s position and to comment or have its
counsel comment on any written submission made to the SEC with respect thereto. No such written submission shall be made to the
SEC to which the Lender’s counsel reasonably objects. In the event that, despite the Company’s best efforts and compliance
with the terms of this Section 2(a)(v), the SEC refuses to alter its position, the Company shall (i) remove from the Registration
Statement such portion of the Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions
and limitations on the registration and resale of the Registrable Securities as the SEC may require to assure the Company’s
compliance with the requirements of Rule 415 (collectively, the “SEC Restrictions”); provided, however, that the Company
shall not agree to name Lender as an “underwriter” in such Registration Statement without the prior written consent
of Lender.

 

    	4

    	 

    

 

(b)          Right
to Piggyback Registration.

 

(i)          If
at any time following the date of this Agreement that any Registrable Securities remain outstanding (A) there is not one or more
effective Registration Statements covering all of the Registrable Securities and (B) the Company proposes for any reason to register
any shares of Common Stock under the 1933 Act (other than pursuant to a registration statement on Form S-4 or Form S-8 (or a similar
or successor form)) with respect to an offering of Common Stock by the Company for its own account or for the account of any of
its stockholders, it shall at each such time promptly give written notice to the Lender of its intention to do so (but in no event
less than thirty (30) days before the anticipated filing date) and, to the extent permitted under the provisions of Rule 415 under
the 1933 Act, include in such registration all Registrable Securities with respect to which the Company has received written request
from Lender for inclusion therein within fifteen (15) days after receipt of the Company’s notice (a Piggyback Registration”).
Such notice shall offer the Lender the opportunity to register such number of shares of Registrable Securities as Lender may request
and shall indicate the intended method of distribution of such Registrable Securities.

 

(ii)         Notwithstanding
the foregoing, (A) if such registration involves an underwritten public offering, the Lender must sell its Registrable Securities
to, if applicable, the underwriter(s) at the same price and subject to the same underwriting discounts and commissions that apply
to the other securities sold in such offering (it being acknowledged that the Company shall be responsible for other expenses as
set forth in Section 2(b)) and subject to the Lender entering into customary underwriting documentation for selling stockholders
in an underwritten public offering, and (B) if, at any time after giving written notice of its intention to register any Registrable
Securities pursuant to Section 2(b)(i) and prior to the effective date of the registration statement filed in connection with such
registration, the Company shall determine for any reason not to cause such registration statement to become effective under the
1933 Act, the Company shall deliver written notice to the Lender and, thereupon, shall be relieved of its obligation to register
any Registrable Securities in connection with such registration.

 

(iii)        If,
in connection with any underwritten public offering for the account of the Company or for stockholders of the Company that have
contractual rights to require the Company to register shares of Common Stock, the managing underwriter(s) thereof shall impose
a limitation on the number of shares of Common Stock which may be included in a Registration Statement because, in the judgment
of such underwriter(s), marketing or other factors dictate such limitation is necessary to facilitate such offering, then the Company
shall be obligated to include in the Registration Statement only such limited portion of the Registrable Securities with respect
to which each Lender has requested inclusion hereunder as such underwriter(s) shall permit; provided, however, that the Company
shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which
are not entitled to inclusion of such securities in the Registration Statement or are not entitled to pro rata inclusion with the
Registrable Securities; and provided further that, after giving effect to the immediately preceding proviso, any exclusion of Registrable
Securities shall be made pro rata with holders of other securities having the right to include such securities in the Registration
Statement.

 

    	5

    	 

    

 

3.          Company
Obligations. The Company will use its reasonable best efforts to effect the registration of the Registrable Securities in accordance
with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:

 

(a)          use
its reasonable best efforts to cause such Registration Statement to become effective and to remain continuously effective for a
period that will terminate upon the earlier of (i) the date on which all Registrable Securities covered by such Registration Statement
as amended from time to time, have been sold, and (ii) the date on which all Registrable Securities covered by such Registration
Statement may be sold without restriction pursuant to Rule 144 by the holders thereof (the “Effectiveness Period”)
and advise the Lender in writing when the Effectiveness Period has expired;

 

(b)          prepare
and file with the SEC such amendments and post-effective amendments to the Registration Statement and the Prospectus as may be
necessary to keep the Registration Statement effective for the Effectiveness Period and to comply with the provisions of the 1933
Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;

 

(c)          provide
copies to and permit counsel designated by Lender to review each Registration Statement and all amendments and supplements thereto
no fewer than seven (7) days prior to their filing with the SEC and not file any document to which such counsel reasonably objects;

 

(d)          furnish
to the Lender and its legal counsel (i) promptly after the same is prepared and publicly distributed, filed with the SEC, or received
by the Company (but not later than two (2) Business Days after the filing date, receipt date or sending date, as the case may be)
one (1) copy of any Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment
or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item
of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any portion
of any thereof which contains information for which the Company has sought confidential treatment), and (ii) such number of copies
of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as Lender
may reasonably request in order to facilitate the disposition of the Registrable Securities owned by Lender that are covered by
the related Registration Statement;

 

(e)          use
its reasonable best efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such
order is issued, obtain the withdrawal of any such order at the earliest possible moment;

 

    	6

    	 

    

 

(f)          prior
to any public offering of Registrable Securities, use its reasonable best efforts to register or qualify or cooperate with the
Lender and its counsel in connection with the registration or qualification of such Registrable Securities for offer and sale under
the securities or blue sky laws of such jurisdictions requested by the Lender and do any and all other commercially reasonable
acts or things necessary or advisable to enable the distribution in such jurisdictions of the Registrable Securities covered by
the Registration Statement; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3(f), (ii) subject itself to general taxation in any jurisdiction where it would not otherwise be so subject but for this Section
3(f), or (iii) file a general consent to service of process in any such jurisdiction;

 

(g)          use
its reasonable best efforts to cause all Registrable Securities covered by a Registration Statement to be listed on each securities
exchange, interdealer quotation system or other market on which similar securities issued by the Company are then listed;

 

(h)          immediately
notify the Lender, at any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of any
event as a result of which, the Prospectus includes an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing,
and promptly prepare, file with the SEC and furnish to such holder a supplement to or an amendment of such Prospectus as may be
necessary so that such Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

 

(i)          otherwise
use its reasonable best efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934
Act, including, without limitation, Rule 172 under the 1933 Act, file any final Prospectus, including any supplement or amendment
thereof, with the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Lender in writing if, at any time during the
Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Lender is
required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may
be reasonably necessary to facilitate the registration of the Registrable Securities hereunder; and make available to its security
holders, as soon as reasonably practicable, but not later than the Availability Date (as defined below), an earnings statement
covering a period of at least twelve (12) months, beginning after the effective date of each Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the 1933 Act, including Rule 158 promulgated thereunder (for the purpose
of this subsection 3(i), “Availability Date” means the 45th day following the end of the fiscal quarter that includes
the effective date of such Registration Statement, except that, if quarter is the last quarter of the Company’s fiscal year,
“Availability Date” means the 90th day after the end of such fiscal year);

 

    	7

    	 

    

 

(j)          with
a view to making available to the Lender the benefits of Rule 144 (or its successor rule) and any other rule or regulation of the
SEC that may at any time permit the Lender to sell Registrable Securities to the public without registration, the Company covenants
and agrees to: (i) make and keep public information available, as those terms are understood and defined in Rule 144, until the
earlier of (A) six months after the date all of the Registrable Securities may be sold without restriction by the holders thereof
pursuant to Rule 144 or any other rule of similar effect or (B) such date as all of the Registrable Securities shall have been
resold; (ii) file with the SEC in a timely manner all reports and other documents required of the Company under the 1934 Act; and
(iii) furnish to Lender upon request, as long as Lender owns any Registrable Securities, (A) a written statement by the Company
that it has complied with the reporting requirements of the 1934 Act, (B) a copy of the Company’s most recent Annual Report
on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be reasonably requested in order to avail
Lender of any rule or regulation of the SEC that permits the selling of any such Registrable Securities without registration.

 

(k)          The
Company will pay all expenses associated with effecting the registration of the Registrable Securities, including filing and printing
fees, the Company’s counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for
sale under applicable state securities laws, listing fees, and fees and expenses of one counsel to the Lender, but excluding discounts,
commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry professionals with respect to
the Rcgistrable Securities being sold.

 

4.            Due
Diligence Review; Information. The Company shall make available, during normal business hours, for inspection and review by
the Lender, advisors to and representatives of the Lender (who may or may not be affiliated with the Lender and who are reasonably
acceptable to the Company), all financial and other records, all SEC Filings (as defined in the Loan Agreement) and other filings
with the SEC, and all other corporate documents and properties of the Company as may be reasonably necessary for the purpose of
such review, and cause the Company’s officers, directors and employees, within a reasonable time period, to supply all such
information reasonably requested by the Lender or any such representative, advisor or underwriter in connection with such Registration
Statement (including, without limitation, in response to all questions and other inquiries reasonably made or submitted by any
of them), prior to and from time to time after the filing and effectiveness of the Registration Statement for the sole purpose
of enabling the Lender and such representatives, advisors and underwriters and their respective accountants and attorneys to conduct
initial and ongoing due diligence with respect to the Company and the accuracy of such Registration Statement; provided, however,
that the Company shall not disclose material nonpublic information to the Lender, or to advisors to or representatives of the Lender,
unless prior to disclosure of such information the Company identifies such information as being material nonpublic information
and provides the Lender, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic
information for review and any Lender wishing to obtain such information enters into an appropriate confidentiality agreement with
the Company with respect thereto.

 

    	8

    	 

    

 

5.           Obligations
of the Lender.

 

(a)          Lender
shall furnish in writing to the Company such information regarding itself, the Registrable Securities held by it and the intended
method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.
At least five (5) Business Days prior to the first anticipated filing date of any Registration Statement, the Company shall notify
Lender of the information the Company requires from Lender if Lender elects to have any of the Registrable Securities included
in the Registration Statement. Lender shall provide such information to the Company at least two (2) Business Days prior to the
first anticipated filing date of such Registration Statement if Lender elects to have any of the Registrable Securities included
in the Registration Statement.

 

(b)          Lender,
by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in
connection with the preparation and filing of a Registration Statement hereunder, unless Lender has notified the Company in writing
of its election to exclude all of its Registrable Securities from such Registration Statement.

 

(c)          Lender
agrees that, upon receipt of any notice from the Company of either (i) the commencement of an Allowed Delay pursuant to Section
2(a)(iv) or (ii) the happening of an event pursuant to Section 3(h) hereof, Lender will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such Registrable Securities, until the Lender is advised
by the Company that such dispositions may again be made.

 

    	9

    	 

    

 

6.           Indemnification.

 

(a)          Indemnification
by the Company. The Company will indemnify and hold harmless Lender and its officers, directors, members, employees and agents,
successors and assigns, and each other Person, if any, who controls Lender within the meaning of the 1933 Act, against any losses,
claims, damages or liabilities, joint or several, to which they may become subject under the 1933 Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement
or alleged untrue statement or omission or alleged omission of any material fact contained in any Registration Statement, any preliminary
Prospectus or final Prospectus, or any amendment or supplement thereof; (ii) any blue sky application or other document executed
by the Company specifically for that purpose or based upon written information furnished by the Company filed in any state or other
jurisdiction in order to qualify any or all of the Registrable Securities under the securities laws thereof (any such application,
document or information herein called a “Blue Sky Application”); (iii) the omission or alleged omission to state in
a Blue Sky Application a material fact required to be stated therein or necessary to make the statements therein not misleading;
(iv) any violation by the Company or its agents of any rule or regulation promulgated under the 1933 Act applicable to the Company
or its agents and relating to action or inaction required of the Company in connection with such registration; or (v) any failure
to register or qualify the Registrable Securities included in any such Registration Statement in any state where the Company or
its agents has affirmatively undertaken or agreed in writing that the Company will undertake such registration or qualification
on an Lender’s behalf and will reimburse such Lender, and each such officer, director or member and each such controlling
Person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company will not be liable in any such case if and to the extent
that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission so made in conformity with information furnished by Lender or any such controlling Person in writing
specifically for use in such Registration Statement or Prospectus.

 

(b)          Indemnification
by the Lender. Lender agrees to indemnify and hold harmless, to the fullest extent permitted by law, the Company, its directors,
officers, employees, stockholders and each Person who controls the Company (within the meaning of the 1933 Act) against any losses,
claims, damages, liabilities and expense (including reasonable attorney fees) resulting from any untrue statement of a material
fact or any omission of a material fact required to be stated in the Registration Statement or Prospectus or preliminary Prospectus
or amendment or supplement thereto or necessary to make the statements therein not misleading, to the extent, but only to the extent
that such untrue statement or omission is contained in any information furnished in writing by Lender to the Company specifically
for inclusion in such Registration Statement or Prospectus or amendment or supplement thereto. In no event shall the liability
of Lender be greater in amount than the dollar amount of the proceeds (net of all expenses paid by Lender in connection with any
claim relating to this Section 6 and the amount of any damages such Lender has otherwise been required to pay by reason of such
untrue statement or omission) received by Lender upon the sale of the Registrable Securities included in the Registration Statement
giving rise to such indemnification obligation.

 

    	10

    	 

    

 

(c)          Conduct
of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense
of such claim with counsel reasonably satisfactory to the indemnified party; provided that any Person entitled to indemnification
hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses
of such counsel shall be at the expense of such Person unless (a) the indemnifying party has agreed to pay such fees or expenses,
or (b) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory
to such Person or (c) in the reasonable judgment of any such Person, based upon written advice of its counsel, a conflict of interest
exists between such Person and the indemnifying party with respect to such claims (in which case, if the Person notifies the indemnifying
party in writing that such Person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying
party shall not have the right to assume the defense of such claim on behalf of such Person); and provided, further, that the failure
of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder,
except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of
any such claim or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding in the
same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified
parties. No indemnifying party will, except with the consent of the indemnified party, consent to entry of any judgment or enter
into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified
party of a release from all liability in respect of such claim or litigation.

 

(d)          Contribution.
If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an indemnified party
or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute to
the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well as any other relevant
equitable considerations. No Person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act
shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation. In no event shall the contribution
obligation of a holder of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all expenses
paid by such holder in connection with any claim relating to this Section 6 and the amount of any damages such holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon
the sale of the Registrable Securities giving rise to such contribution obligation.

 

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7.           Miscellaneous.

 

(a)          Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the Lender. Any amendment or waiver effected in accordance with this Section 7(a) shall be binding upon each holder of any
Registrable Securities at the time outstanding, each future holder of any Registrable Securities, and the Company. The Company
may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company shall
have obtained the written consent to such amendment, action or omission to act, of the Lender.

 

(b)          Notices.
All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 15.5 of the Loan
Agreement.

 

(c)          Assignments
and Transfers by Lender. The provisions of this Agreement shall be binding upon and inure to the benefit of the Lender and
its respective successors and assigns. Lender may transfer or assign, in whole or from time to time in part, to one or more Persons
its rights hereunder in connection with the transfer of Registrable Securities by Lender to such Person, provided that Lender complies
with all laws applicable thereto and provides written notice of assignment to the Company promptly after such assignment is effected.

 

(d)          Assignments
and Transfers by the Company. This Agreement may not be assigned by the Company (whether by operation of law or otherwise)
without the prior written consent of the Lender, provided, however, that in the event that the Company is a party to a merger,
consolidation, share exchange or similar business combination transaction in which the Common Stock is converted into the equity
securities of another Person, from and after the effective time of such transaction, such Person shall, by virtue of such transaction,
be deemed to have assumed the obligations of the Company hereunder, the term “Company” shall be deemed to refer to
such Person and the term “Registrable Securities” shall be deemed to include the securities received by the Lender
in connection with such transaction unless such securities are otherwise freely tradable by the Lender after giving effect to such
transaction.

 

(e)          Benefits
of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.

 

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(f)          Counterparts;
Facsimile. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages by
facsimile or PDF transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and
may be used in lieu of an original of this Agreement for all purposes. Signatures of the parties hereto transmitted by facsimile
or PDF transmission shall be deemed to be their original signatures for all purposes.

 

(g)          Titles
and Subtitles; Construction. The titles and subtitles used in this Agreement are used for convenience only. They form no part
of this Agreement and shall not affect its construction or interpretation. All references to Sections, subsections, paragraphs,
clauses or other subdivisions in this Agreement refer to the corresponding Sections, subsections, paragraphs, clauses or other
subdivisions of this Agreement. All words used in this Agreement shall be construed to be of such gender or number as the circumstances
require. As used in this Agreement, the words “hereby”, “herein”, hereof’, “hereunder”
and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

(h)          Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted
as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable
in any respect.

 

(i)          Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements
herein contained.

 

(j)          Entire
Agreement. This Agreement and the Loan Agreement, together with its Exhibits and Schedules, constitute the entire agreement
among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
both oral and written, between the parties with respect to the subject matter hereof and thereof.

 

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(k)          Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of Oklahoma without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of Oklahoma located in Oklahoma County and the United States District
Court for the Western District of Oklahoma for the purpose of any suit, action, proceeding or judgment relating to or arising out
of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding
may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this
Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding
and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such
suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL
BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

 

[Signature Page Follows]

 

    	14

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.

 

	The Company:	CRUMBS BAKE SHOP, INC.
	 	 	 
	 	By:	 
	 	 	Name: Edward M. Slezak
	 	 	Title:  Interim Chief Executive Officer

 

	The Lender:	FISCHER ENTERPRISES, L.L.C.
	 	 	 
	 	By:	 
	 	 	Name: S. Scott Fischer
	 	 	Title:  Chief Operating Officer

 

    	 

    	 

    

  

SCHEDULE
1

 

Existing
Indebtedness

 

1.          Pursuant
to Section 4.4 of Crumbs Holdings’ Third Amended and Restated Limited Liability Company Agreement, dated May 5, 2011 (the
“LLC Agreement”), Crumbs Holdings is obligated under certain circumstances to make pro rata quarterly Tax Distributions
(as defined in the LLC Agreement) to its members in an amount equal to the excess of (i) the Assumed Tax Liability (as defined
in the LLC Agreement) for the applicable quarterly estimated tax period over (ii) Tax Distributions (as defined in the LLC Agreement)
made by Crumbs with respect to the calendar year of which such quarterly estimated tax period is a part.

 

2.          Crumbs
entered into a Tax Receivable Agreement, dated as of May 5, 2011, with Crumbs Holdings and the Members (the “Tax Receivable
Agreement”) that provides for the payment by Crumbs to the Members (as defined in paragraph 1 of Schedule 10.16 below) of
up to 75% of the amount of the tax benefits, if any, that Crumbs is deemed to realize as a result of (i) the existing tax basis
in the assets of Crumbs Holdings on the date of the Merger (as defined in paragraph 1 of Schedule 10.16 below), (ii) any increases
in such tax basis and (iii) certain other tax benefits related to Crumbs Holdings entering into the Tax Receivable Agreement, including
tax benefits attributable to payments under the Tax Receivable Agreement. These payment obligations are obligations of Crumbs and
not of Crumbs Holdings. For purposes of the Tax Receivable Agreement, the benefit deemed realized by Crumbs will be computed by
comparing the actual income tax liability of Crumbs Holdings (calculated with certain assumptions) to the amount of such taxes
that Crumbs would have been required to pay had there been no increase to the tax basis of the assets of Crumbs Holdings as a result
of the purchase or exchanges, had there been no tax benefit from the tax basis in the intangible assets of Crumbs Holdings on the
date of the Merger and had Crumbs not entered into the Tax Receivable Agreement. The term of the Tax Receivable Agreement will
continue until all such tax benefits have been utilized or expired, unless Crumbs exercises its right to terminate the Tax Receivable
Agreement for an amount based on the agreed payments remaining to be made under the Tax Receivable Agreement or Crumbs breaches
any of its material obligations under the Tax Receivable Agreement, in which case all obligations will generally be accelerated
and due as if Crumbs had exercised its right to terminate the Tax Receivable Agreement.

 

3.          In
lieu of security deposits required pursuant to the terms of several operating leases, Crumbs Holdings has chosen to obtain letters
of credit issued by Southeastern Bank and JPMorganChase when such substitution is allowed by the landlords.

 

a.           JPMorganChase
has issued two letters of credit: (i) $68,000 (automatically renews each year through its expiration date of February 29, 2016);
and (ii) $30,000 (automatically renews each year through its expiration date of November 30, 2016).

 

    	 

    	 

    

 

b.           See
below schedule of letters of credit issued by Southeastern Bank.

 

	Issue Date	 	Expires
 Date	 	Auto
 Renew	 	Days
 Notice	 	Date
 Financials
 and
 Memo
 Needed
 for
 Renewal
 Decision	 	Type	 	Amt	 	 	Most Recent Fee
 Collected	 	 	Date Most Recent Fee
 Collected
	5/20/2008	 	5/20/2013	 	Y	 	60	 	02/19/13	 	F	 	$	27,000.00	 	 	$	400.00	 	 	3/29/2013
	6/11/2008	 	6/11/2013	 	Y	 	60	 	03/13/13	 	F	 	$	17,500.00	 	 	$	400.00	 	 	3/29/2013
	6/11/2008	 	6/11/2013	 	Y	 	60	 	03/13/13	 	F	 	$	42,917.00	 	 	$	435.00	 	 	3/29/2013
	6/18/2008	 	4/30/2013	 	N	 	60	 	01/30/13	 	F	 	$	45,600.00	 	 	$	456.00	 	 	3/26/2012
	6/19/2008	 	6/19/2013	 	Y	 	60	 	03/21/13	 	F	 	$	15,000.00	 	 	$	400.00	 	 	3/29/2013
	6/1/2008	 	6/1/2013	 	Y	 	60	 	03/03/13	 	F	 	$	28,144.00	 	 	$	400.00	 	 	3/29/2013
	6/1/2008	 	6/1/2013	 	Y	 	60	 	03/03/13	 	F	 	$	9,440.00	 	 	$	400.00	 	 	3/29/2013
	8/1/2008	 	8/1/2013	 	Y	 	30	 	06/02/13	 	F	 	$	62,500.00	 	 	$	625.00	 	 	5/22/2012
	8/1/2008	 	8/1/2013	 	Y	 	60	 	05/03/13	 	F	 	$	24,300.00	 	 	$	400.00	 	 	3/29/2013
	8/1/2008	 	8/1/2013	 	Y	 	60	 	05/03/13	 	F	 	$	50,000.00	 	 	$	500.00	 	 	3/29/2013
	*9/1/2008	 	9/1/2013	 	Y	 	60	 	06/03/13	 	F	 	$	15,750.00	 	 	$	400.00	 	 	5/22/2012
	5/4/2009	 	5/4/2013	 	Y	 	60	 	02/03/13	 	F	 	$	7,500.00	 	 	$	400.00	 	 	3/29/2013
	5/7/2009	 	5/7/2013	 	Y	 	60	 	02/06/13	 	F	 	$	29,287.50	 	 	$	400.00	 	 	3/29/2013
	5/13/2009	 	5/13/2013	 	Y	 	60	 	02/12/13	 	F	 	$	43,749.99	 	 	$	450.00	 	 	3/29/2013
	7/28/2009	 	7/28/2013	 	Y	 	60	 	04/29/13	 	F	 	$	18,750.00	 	 	$	400.00	 	 	3/29/2013
	3/3/2011	 	3/3/2014	 	Y	 	60	 	12/03/13	 	F	 	$	40,000.00	 	 	$	400.00	 	 	3/29/2013
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	$	477,438.49	 	 	 	 	 	 	 

 

*Letter of Credit to be cancelled prior
to or soon after the date hereof

 

4.          On
May 5, 2011, Crumbs Holdings entered into a Commercial Loan Agreement with Southeastern Bank in connection with the letters of
credit issued by Southeastern Bank in the form of a $575,000 revolving line of credit, with a variable rate based on the Wall Street
Journal Prime Rate and secured by a $575,000 Certificate of Deposit. On January 6, 2014, this Commercial Loan Agreement was amended
by that certain Loan Modification Agreement, reducing the revolving line of credit from $575,000 to $500,000. On or around January
15, 2014, the line was reduced by $20,062 from $500,000 to $479,938. The Loan Modification Agreement also replaced the $575,000
Certificate of Deposit with a $500,000 Certificate of Deposit. On or around January 15, 2014, the Certificate of Deposit was reduced
by $20,062 to $479,938, which amount represents the amount required to pay for the letter of credit calls from Americana at Brand
($10,416.67) and The Commons at Calabasas ($9,645.33). No amounts are outstanding on the line of credit. Letters of credit amounting
to $477,438.49 were reserved under this line of credit as of January 15, 2014.

 

    	2

    	 

    

 

SCHEDULE
1.2

 

Existing
Liens

 

1.          Any
liens filed in connection with any lease for any personal property of a Borrower or any Subsidiaries.

 

2.

 

	Jurisdiction	 	Debtor	 	
        Secured 

        Party
	 	Collateral	 	Type	 	
        Filing 

        Date
	 	
        Filing 

        Number

	DE	 	Crumbs Holdings, LLC	 	LCA Bank Corporation	 	All of the equipment referenced in the Lease Agreement #124246-001, which Equipment is generally described as: [Copier] and all proceeds (including cash, non-cash and insurance proceeds), all accessions, additions and attachments, and all substitutions and replacements.”	 	Original	 	01/06/2011	 	2011-0055288

 

    	3

    	 

    

 

SCHEDULE
4.7

 

Use
of Proceeds

 

Proceeds of the Loan will be used for
working capital purposes and to implement the Business Plan.

 

    	4

    	 

    

 

SCHEDULE
10.2

 

Subsidiaries

 

		o	Crumbs
                                         17th Street, LLC, a District of Columbia limited liability company

		o	Crumbs
                                         42nd Street, LLC, a New York limited liability company 

		o	Crumbs
                                         92nd Street, LLC, a New York limited liability company 

		o	Crumbs
                                         Americana, LLC, a California limited liability company

		o	Crumbs
                                         Beverly Hills, LLC, a California limited liability company

		o	Crumbs
                                         Broad Street, LLC, a New York limited liability company 

		o	Crumbs
                                         Broadway LLC, a New York limited liability company 

		o	Crumbs
                                         Brooklyn Heights LLC, a New York limited liability company 

		o	Crumbs
                                         Calabasas, LLC, a California limited liability company

		o	Crumbs
                                         Catering LLC, a New York limited liability company 

		o	Crumbs
                                         Clarendon LLC, a Virginia limited liability company 

		o	Crumbs
                                         Columbia LLC, a New York limited liability company (f/k/a Crumbs 125th Street,
                                         LLC)

		o	Crumbs
                                         Columbus LLC, a New York limited liability company 

		o	Crumbs
                                         Downtown II, LLC, a New York limited liability company 

		o	Crumbs
                                         East Bakeshop II, LLC, a New York limited liability company 

		o	Crumbs
                                         East End, LLC, a District of Columbia limited liability company

		o	Crumbs
                                         E-Commerce LLC, a New York limited liability company 

		o	Crumbs
                                         Federal Street LLC, a Delaware limited liability company

		o	Crumbs
                                         Garment Center LLC, a New York limited liability company 

		o	Crumbs
                                         Grand Central LLC, a New York limited liability company 

		o	Crumbs
                                         Greenvale LLC, a New York limited liability company 

		o	Crumbs
                                         Greenwich, LLC, a Connecticut limited liability company 

		o	Crumbs
                                         Hoboken, LLC, a New Jersey limited liability company 

		o	Crumbs
                                         Hollywood LLC, a California limited liability company 

		o	Crumbs
                                         Huntington LLC, a New York limited liability company 

		o	Crumbs
                                         II, LLC, a New York limited liability company 

		o	Crumbs
                                         International Place, LLC, a Delaware limited liability company

		o	Crumbs
                                         L Street, LLC, a District of Columbia limited liability company

		o	Crumbs
                                         Larchmont, LLC, a California limited liability company 

		o	Crumbs
                                         LaSalle, LLC, an Illinois limited liability company 

		o	Crumbs
                                         L’Enfant Plaza, LLC, a District of Columbia limited liability company

		o	Crumbs
                                         Lexington LLC, a New York limited liability company 

		o	Crumbs
                                         Madison LLC, a New York limited liability company 

		o	Crumbs
                                         Malibu, LLC, a California limited liability company 

		o	Crumbs
                                         Newark LLC, a New Jersey limited liability company 

		o	Crumbs
                                         New Canaan, LLC, a California limited liability company 

		o	Crumbs
                                         Oak Park, LLC, an Illinois limited liability company 

		o	Crumbs
                                         Park Avenue LLC, a New York limited liability company 

 

    	5

    	 

    

 

		o	Crumbs
                                         Park Avenue South, LLC, a New York limited liability company 

		o	Crumbs
                                         Queens Center, LLC, a New York limited liability company 

		o	Crumbs
                                         Retail Bake Shops, LLC, a Delaware limited liability company (f/k/a Crumbs Fulton Street,
                                         LLC

		o	Crumbs
                                         Ridgewood, LLC, a New Jersey limited liability company

		o	Crumbs
                                         Rittenhouse Square, LLC, a Delaware limited liability company

		o	Crumbs
                                         River North, LLC, an Illinois limited liability company

		o	Crumbs
                                         Sixth Avenue, LLC, a New York limited liability company

		o	Crumbs
                                         South Clark, LLC, an Illinois limited liability company

		o	Crumbs
                                         Stamford, LLC, a Connecticut limited liability company

		o	Crumbs
                                         Third Avenue LLC, a New York limited liability company 

		o	Crumbs
                                         Times Square LLC, a New York limited liability company

		o	Crumbs
                                         Union Square LLC, a New York limited liability company 

		o	Crumbs
                                         Union Station LLC, a District of Columbia limited liability company

		o	Crumbs
                                         Wall Street II, LLC, a New York limited liability company

		o	Crumbs
                                         West Madison, LLC, an Illinois limited liability company

		o	Crumbs
                                         Westfield LLC, a New Jersey limited liability company

		o	Crumbs
                                         Westport, LLC, a Connecticut limited liability company

		o	Crumbs
                                         Wholesale II, LLC, a New York limited liability company 

		o	Crumbs
                                         Woodbury LLC, a New York limited liability company 

 

    	6

    	 

    

 

SCHEDULE
10.4

 

No
Conflict

 

1.          Consents
required by the Buyers of those certain Notes purchased in accordance with that certain Securities Purchase Agreement dated April
29, 2013 and amended on May 9, 2013, by and among Crumbs and each of the Buyers (as such terms are defined in the Securities Purchase
Agreement).

 

2.          Any
consents of any landlord or other Person, if required, in connection with the Leasehold Mortgages.

 

3.          
Waiver of Southeastern Bank of the covenant against Crumbs Holdings incurring additional debt set forth in Section 6(F) of the
Commercial Loan Agreement (as more particularly defined in Paragraph 4 of Schedule1).

 

    	7

    	 

    

 

SCHEDULE
10.5

 

Consents

 

1.          See
Schedule 10.4

 

2.          NASDAQ
consent to the terms and conditions of the Agreement (see Sections 5.5 and 6.1 of Agreement).

 

    	8

    	 

    

 

SCHEDULE
10.7

 

Leased
Real Property

 

	17th Street	888 17th Street NW	 	Washington	DC	20006
	6th Avenue	655 6th Avenue	 	New York	NY	10011
	92nd Street	2476 Broadway	 	New York	NY	10025
	Americana	779 Americana Way	 	Glendale	CA	91210
	Beverly Hills	9465 Little Santa Monica Boulevard	 	Beverly Hills	CA	90210
	Bridgewater Commons	400 Commons Way	2480	Bridgewater	NJ	08807
	Broad Street	40 Broad Street	 	New York	NY	10004
	Broadway	1675 Broadway	 	New York	NY	10019
	Brooklyn Heights	109 Montague Street	 	Brooklyn Heights	NY	11201
	Bryant Park (42nd Street)	43 West 42nd Street	 	New York	NY	10036
	Burlington Mall	76 Middlesex Turnpike	2010	Burlington	MA	01803
	Calabasas	4799 Commons Way	E	Calabasas	CA	91302
	Cherry Hill Mall	2000 Route 38 Suite 514	1855	Cherry Hill	NJ	08002
	Christiana Mall	132 Christiana Mall	5900	Newark	DE	19702
	Clarendon	2839 Clarendon Boulevard	Market Common	Arlington	VA	22201
	Columbia	2814 Broadway	 	New York	NY	10025
	Columbia Mall	10300 Little Patuxent Parkway	5522	Columbia	MD	21044
	Columbus Avenue	775 Columbus Avenue	 	New York	NY	10025
	Danbury Fair Mall	7 Backus Ave	F-212	Danbury	CT	06810
	Deptford Mall	1750 Deptford Center Road	2090	Deptford	NJ	08096
	East End	604 11th Street NW	 	Washington	DC	20001
	Federal Street	176 Federal Street	3	Boston	MA	02110
	Freehold Raceway Mall	3710 Route 9	G-212	Freehold	NJ	07728
	Garden State Plaza	1 Garden State Plaza	1221A	Paramus	NJ	07652
	Garment Center	1385 Broadway	 	New York	NY	10018
	Grand Central	420 Lexington Avenue	 	New York	NY	10170
	Greenvale	5 Glen Cove Road	 	Greenvale	NY	11548
	Greenwich	48 West Putnam Avenue	 	Greenwich	CT	06830
	Hoboken	409 Washington Street	 	Hoboken	NJ	07030
	Hollywood	6801 Hollywood Boulevard	127	Hollywood	CA	90028
	King of Prussia	160 N Gulph Road	2154D	King of Prussia	PA	19406
	L Street	1107 19th Street NW	 	Washington	DC	20036
	Larchmont	216 N Larchmont Boulevard	 	Los Angeles	CA	90004
	L'Enfant Plaza	470 L'Enfant Plaza E SW	806	Washington	DC	20024
	Lexington Avenue	1418 Lexington Avenue	 	New York	NY	10128
	Mall at Rockingham Park	1 Rockingham Park Blvd	W115	Salem	NH	03079
	Natick Mall	1245 Worcester Street	2174	Natick	MA	01760
	Newark	Newark Airport	Terminal C	Newark	NJ	07114
	Northshore Mall	RT 128N & RT 114E	KI-15	Peabody	MA	01960
	Oak Park	1100 Lake Street	 	Oak Park	IL	60301
	Palisades Center	2502 Palisades Center Drive	Z-16	West Nyack	NY	10994
	Park Avenue	2 Park Avenue	 	New York	NY	10016
	Park City Center	142 Park City Center	J0501	Lancaster	PA	17601
	Pheasant Lane Mall	310 Daniel Webster Highway Suite 200	E153	Nashua	NH	03060

 

    	9

    	 

    

 

	Providence Place	One Providence Place	7510	Providence	RI	02903
	Prudential Center	800 Boylston	HC04	Boston	MA	02199
	Queens Center	90-15 Queens Boulevard	 	Elmhurst	NY	11373
	Ridgewood	123 East Ridgewood Avenue	 	Ridgewood	NJ	07450
	Rittenhouse Square	133 S 18th Street	 	Philadelphia	PA	19103
	River North	346 North Clark Street	 	Chicago	IL	60654
	Rockaway Mall	301 Mount Hope Avenue	2025	Rockaway	NJ	07866
	Roosevelt Field	630 Old Country Road	4024	Garden City	NY	11530
	South Shore Plaza	250 Granite Street	1076	Braintree	MA	02184
	Stamford	1067 High Ridge Road	 	Stamford	CT	06905
	Staten Island	2655 Richmond Ave	5513	Staten Island	NY	10314
	Suburban Square	32 Parking Plaza,suite 101	06-101	Ardmore	PA	19003
	The Village (Downtown)	37 East 8th Street	 	New York	NY	10003
	Third Avenue	880 Third Avenue	 	New York	NY	10022
	Times Square	261 West 42nd Street	 	New York	NY	10036
	Towson Town Center	825 Dulaney Valley Road	2080	Towson	MD	21204
	Tysons Corner Center	1961 Chain Bridge Road	KSK3L	McLean	VA	22102
	Union Square	124 University Place	 	New York	NY	10003
	Union Station	40 Massachusetts Avenue NW	 	Washington	DC	20002
	Upper East Side (East Bakeshop II)	1379 Third Avenue	 	New York	NY	10075
	Upper West Side (Crumbs II)	350 Amsterdam Avenue	 	New York	NY	10024
	Water Tower	835 N Michigan Ave	2C	Chicago	IL	60611
	West Madison	303 West Madison	 	Chicago	IL	60606
	Westfield	130 East Broad Street	 	Westfield	NJ	07090
	Westport	40-44 Post Road East	 	Westport	CT	06880
	White Marsh Mall	8200 Perry Hall Blvd	 	Baltimore	MD	21236
	Willowbrook Mall	1400 Willowbrook Mall	5537	Wayne	NJ	07470
	Woodbury	8285 Jericho Turnpike	 	Woodbury	NY	11797
	Maryland Corporate Office	147 Main Street	 	Preston	MD	21655
	New York Corporate Office	110 West 40th Street	Suite 2100, partial space on 2200	New York	NY	10018

 

    	10

    	 

    

 

SCHEDULE
10.9

 

Litigation

 

1.          Shaker
and Associates vs. Crumbs Oak Park, LLC d/b/a Crumbs Bake Shop, In the Circuit Court of Cook County, IL, Municipal Department,
First District, Case No, 13MI 730675. Eviction Summons for Trial. Trial scheduled for January 15, 2014, Rent amount claimed $59,676.91
(plus costs and attorneys’ fees).

 

2.          The
Americana At Brand, LLC vs. Crumbs Americana, LLC, Los Angeles Superior Court – Central District, Case No. BC529862 Unlawful
Detainer – Eviction. Rent amount claimed $21,339.75 (through December 1, 2013), with additional damages of $588.55 per day.

 

3.          The
Commons at Calabasas, LLC vs. Crumbs Calabasas, LLC, Los Angeles Superior Court – Central District, Case No. BC529863, Unlawful
Detainer – Eviction. Rent amount claimed $14,575.19 (through December 1, 2013), with additional damages of $447.84 per day.

 

4.          409
Washington Street, LLC vs. Crumbs Hoboken, Superior Court of New Jersey Law Division: Special Civil Part, Hudson County, Docket
No. Lt-. Rent and other costs and fees claimed is $21,824.76.

 

5.          The
Americana At Brand, LLC vs. Crumbs Americana, LLC and Crumbs Holdings, Los Angeles Superior Court – Central District, Case
No. BC532092. Complaint for Breach of Lease and Breach of Guaranty. Plaintiff claims damages of $1,500,000.

 

6.          The
Commons at Calabasas, LLC vs. Crumbs Calabasas, LLC and Crumbs Holdings LLC, Los Angeles Superior Court – Central District,
Case No. BC532611. Complaint for Breach of Lease and Breach of Guaranty. Plaintiff claims damages of $1,000,000.

 

7.          Jennifer
O’Reilly vs. Crumbs Holdings, LLC, Case No. 13-CV-2720, US District Court for the Southern District of New York. Class Action
Complaint, pursuant to which the Collective Action Members claim they were misclassified as “exempt” and were denied
overtime compensation and “spread of hours” compensation as required by federal and state wage and hour laws. On January
10, 2014, the parties jointly proposed to the Court an unspecified extension of the discovery cutoff, with a status letter due
to the Court within 60 days.

 

8.          Crumbs
Larchmont, LLC received a Three Business Day Notice to Pay Rent or Quit on January 10, 2014 from Larchmont Properties, Inc. The
amount of rent and other costs and fees claimed is $12,092.

 

    	11

    	 

    

 

9.          Crumbs
Rittenhouse Square LLC received a call from its landlord on January 13, 2014 that it will be proceeding with an eviction.

 

10.         Crumbs
Retail Bake Shops, LLC received a Notice of Default from Freehold Raceway Mall, Freemall Associates, LLC, dated January 9, 2014.
The amount of rent and other costs and fees claimed is $12,005.83.

 

11.         Crumbs
Union Square received a Notice of Default from University Place Assoc. LLC, dated January 8, 2014. The amount of rent and other
costs and fees claimed is $24,076.53.

 

12.         Crumbs
Holdings LLC received a Notice of Default from Bridgewater Commons Mall II, LLC, dated January 10, 2014. The amount of rent and
other costs and fees claimed is $24,372.01.

 

13.         Crumbs
Holdings LLC received a Notice of Default from Natick Mall, LLC, dated January 10, 2014. The amount of rent and other costs and
fees claimed is $25,670.91.

 

14.         Crumbs
Retail Bake Shops, LLC, located at Tyson’s Corner Center, received a Notice of Default from Tyson’s Corner Holdings
LLC, dated January 9, 2014. The amount of rent and other costs and fees claimed is $12,093.60.

 

15.         Crumbs
Retail Bake Shops, LLC, located at Palisades Center, West Nyack NY, received a Notice of Lease Termination from Eklecco Newco LLC,
dated January 13, 2013. Demand is made therein for the sum of $704,528.67. A notice of default had been sent on December 6, 2013.

 

16.         Crumbs
92nd Street received notice from 214 West 92nd Street Assoc, LLC of default, dated January 8, 2014. The amount
of rent and other costs and fees claimed is $34,490.05.

 

    	12

    	 

    

 

SCHEDULE
10.12

 

Locations
of Collateral

 

1.          See
Schedule 10.7

 

2.          Vendor
who stores certain fixtures: Pride Inc Heating & Air, 71 Winant Place Unit C, Staten Island NY 10309. This is not a leased
property

 

3.          NJ
Warehouse: MPD Logistics Inc., 5 Dwight Place, Fairfield NJ 07004. This is not a leased property.

 

    	13

    	 

    

 

SCHEDULE
10.15

 

Intellectual
Property

 

None.

 

    	14

    	 

    

 

SCHEDULE
10.16

 

Capitalization

 

Capitalization of Crumbs:

 

	Series
    A Voting Preferred Stock, $0.0001 per share	 	Shares
	Authorized	 	1,000,000
	Issued	 	234,000
	Outstanding	 	234,000
	 	 	 
	Potentially Dilutive
    Securities:	 	 
	Reserved
    for issuance to members if Contingency Consideration were to vest	 	440,000
	 	 	 
	Common Stock, $0.0001 per share	 	 
	Authorized	 	100,000,000
	Issued	 	13,577,437
	Outstanding	 	12,251,802
	 	 	 
	Potential for
    Additional Issuance of Securities:	 	 
	Authorized
    for issuance pursuant to Equity Incentive Plan	 	578,295
	Issuable
    upon exercise of outstanding warrants	 	5,456,300
	Reserved
    for conversion of New Crumbs Class B Exchangeable Units by Crumbs Holdings’ Members	 	2,340,000
	Reserved
    for issuance to members upon exchange of Contingency Consideration that could be paid to members if such Contingency Consideration
    were to vest	 	4,400,000
	Reserved for senior
    convertible note holders	 	8,448,107

 

1.          The
outstanding shares of Series A Voting Preferred Stock (“Series A Stock”) of Crumbs are held by the persons who were
members of Crumbs Holdings immediately prior to Crumbs’ 2011 merger transaction (the “Merger”) and Julian Geiger,
as a substituted member (collectively, the “Members”). The outstanding shares of Series A Stock were issued contemporaneously
with the issuance by Crumbs Holdings of New Crumbs Class B Exchangeable Units (“Class B Units”) to its Members. Each
share of Series A Stock entitles its holder to cast 10 votes on any matter submitted to the Crumbs’ stockholders. The Class
B Units are exchangeable for shares of Common Stock on a one-for-one basis. Upon the exchange of a Class B Unit, the holder must
also surrender 0.1 share of Series A Stock for redemption by Crumbs at its then par value. 

 

    	15

    	 

    

 

2.          Contingency
Consideration includes 440,000 shares of Series A Stock of Crumbs and 4,400,000 Class B Units. Contingency Consideration will vest
upon satisfaction of certain stock price and/or EBIDTA targets as provided in that certain Business Combination Agreement, dated
as of January 9, 2011, as amended on each of February 18, 2011, March 17, 2011 and April 7, 2011 (the “Business Combination
Agreement”), by and among Crumbs, 57th Street Merger Sub LLC, Crumbs Holdings, the members of Crumbs Holdings set forth on
the signature pages thereto (the “Members”), and the representatives of Crumbs Holdings and the Members.

 

3.          In
addition to vesting upon reaching the stock price and/or EBIDTA targets, all unvested Contingency Consideration will immediately
vest if there is a “Change of Control” of Crumbs or Crumbs Holdings. A “Change of Control” will occur if,
among other things, a person or group (within the meaning of Rules 13d-3 and 13d-5 under the 1934 Act) (other than any combination
of the Permitted Holders or, in the case of Crumbs Holdings, Crumbs) shall obtain beneficial ownership (as defined in Rules 13d-3
and 13d-5 under the 1934 Act) or the voting stock of Crumbs or Crumbs Holdings representing more than 35% of the voting power of
the capital stock of Crumbs or Crumbs Holdings entitled to vote for the election of directors of Crumbs or Crumbs Holdings other
than directly from a Permitted Holder in a transaction where the ultimate purchaser is known to the Permitted Holder.

 

4.          Pursuant
that certain Exchange and Support Agreement, dated as of May 5, 2011, by and among Crumbs, Crumbs Holdings, and the other parties
thereto, as modified by that certain Accession Agreement, dated as of November 14, 2011, by and among Crumbs, Crumbs Holdings and
Julian R. Geiger, (a) Crumbs is entitled to receive New Crumbs Class A Voting Units upon the exchange of the New Crumbs Class B
Units by the holders thereof, (b) the holders of Common Stock will be entitled to certain adjustments in respect of the Common
Stock in the event of certain dilutive actions, issuances or fundamental transactions described therein by Crumbs Holdings in respect
of its New Crumbs Class B Units, and (c) the holders of New Crumbs Class B Units of Crumbs Holdings will be entitled to certain
adjustments in respect of the New Crumbs Class B Units in the event of certain dilutive actions, issuances or fundamental transactions
described therein by Crumbs in respect of the Common Stock.

 

5.          Pursuant
to the Amended and Restated Certificate of Designation in respect of the Company’s Series A Stock, the holders of shares
of Series A Stock will be entitled to certain dividends and distributions in respect of the Series A Stock in the event Crumbs
declares any dividend or distribution on the Common Stock in shares of Common Stock, Preferred Stock or securities convertible,
exercisable or exchangeable for Common Stock or Preferred Stock, unless such dividend or distribution is approved by the written
consent or affirmative vote of the holders of at least two-thirds of the then outstanding shares of Series A Stock.

 

    	16

    	 

    

 

6.          Crumbs’
warrants provide that the number of shares covered thereby and the exercise prices thereof shall be subject to adjustment in the
event of certain changes in the Common Stock by way of stock dividends, split-ups, extraordinary dividends or other similar events.
The strike price of the warrants is $11.50.

 

7.          Crumbs’
Equity Incentive Plan, as amended (the “Amended Plan”) contemplates that, in the event
of any change in Crumbs’ corporate capitalization, then the Compensation Committee,
in its sole discretion, may make substitutions or adjustments to the number of shares reserved for issuance under the Amended Plan,
the number of shares covered by awards then outstanding under the Amended Plan, the limitations on awards under the Amended Plan,
the exercise price of outstanding options and such other equitable substitution or adjustments as it may determine appropriate
the Compensation Committee may make substitutions or adjustments to the number of shares of Common Stock reserved for issuance
thereunder, the number of shares covered by awards then outstanding thereunder, the limitations on awards thereunder, the exercise
price of outstanding options and such other equitable substitution or adjustments as it may determine appropriate. There
are no options to acquire shares of Common Stock issued under the Amended Plan; only shares of restricted stock have been granted.

 

8.          Pursuant
to that certain Securities Purchase Agreement dated April 29, 2013 and amended on May 9, 2013, Crumbs authorized the issuance of
senior convertible notes, which notes are convertible into shares of Crumbs’ Common Stock, in accordance with the terms of
such notes.

 

    	17

    	 

    

 

SCHEDULE
10.19

 

No
Breaches

 

Certain of the Subsidiaries have failed
to pay under the lease agreements they are party to. A list of the store and location follows:

 

	STORE	 	LANDLORD
	17th STREET	 	888 17th Street Corp
	92ND ST	 	C. Gershon & Company
	AMERICANA	 	The Americana at Brand LLC
	BEVERLY HILLS	 	Sunvic Properties
	BRIDGEWATER	 	Bridgewater Commons Mall II LLC
	BROOKLYN HEIGHTS	 	Italian Art Iron Works, Inc.
	BURLINGTON	 	Bellwether Properties of Massachusetts LP
	CALABASAS	 	The Commons at Calabasas, LLC
	CHERRY HILL MALL	 	Cherry Hill Center LLC
	CHRISTIANA MALL	 	Christiana Mall, LLC
	CLARENDON	 	TIAA - CREF Market Commons
	COLUMBIA	 	Larstrand Corporation
	COLUMBIA MALL	 	The Mall in Columbia Business Trust
	COLUMBUS AVE	 	775 Columbus LLC
	DANBURY MALL	 	Danbury Mall, LLC
	DEPTFORD MALL	 	Deptford Mall - Macerich Deptford LLC
	DOWNTOWN	 	Uniway Partners, LP
	EAST (NEW 1379 3rd)	 	GMAC Commercial Mortgage
	EAST END	 	Jemal's Square 320 LLC
	FEDERAL STREET	 	Federal Street 176 Holdings LLC
	FREEHOLD RACEWAY	 	Freehold Raceway Mall/Freemall Associates LLC
	GARDEN STATE	 	Westland Garden State Plaza LP
	GRAND CENTRAL	 	SL Green Management
	GREENWICH	 	Paradigm Realty
	GREENVALE	 	Town Path Corner, LLC
	HOLLYWOOD	 	CIM/H&H Retail, LP fbo Key Corp
	KING OF PRUSSIA	 	King of Prussia Associates
	LARCHMONT	 	Larchmont Properties, Ltd.
	L STREET	 	1899 L Street Towers, LLC
	LaSALLE	 	134 N. LaSalle LLC
	L'ENFANT PLAZA	 	Potomac Creek Associates
	LEXINGTON	 	134 East 93rd Street Associates
	NATICK	 	Natick Mall, LLC
	NEW CANAAN	 	The Town of New Canaan
	NORTHSHORE MALL	 	Mall at Northshore, LLC
	OAK PARK	 	Shaker Management Company
	PALISADES CENTER	 	EklecCo NewCo LLC
	PARK AVENUE	 	PPF Off Two Park Ave Owner LLC
	PARK CITY CENTER	 	Park City Center Business Trust
	PHEASANT LANE	 	Pheasant Lane Realty Trust

 

    	18

    	 

    

 

	PROVIDENCE PLACE	 	GGP - Providence Place LLC
	PRUDENTIAL CENTER	 	Boston Properties Limited Partnership
	QUEENS CENTER	 	Queens Mall Limited Partnership
	RIDGEWOOD	 	Caterina-Ridgewood, LLC
	RITTENHOUSE SQUARE	 	ADR 18th & Sansom, LLC
	RIVER NORTH	 	Friedman Properties Ltd.
	ROCKAWAY 	 	Rockaway Center Associates
	ROCKINGHAM	 	Mall at Rockingham LLC
	SIXTH AVENUE	 	Olympic Funding, LLC
	STAMFORD	 	Samuel Lotstein Realty Company, LLC
	STATEN ISLAND	 	GGP Staten Island Mall, LLC
	SUBURBAN SQUARE	 	Amerishop Suburban L.P.
	TIMES SQUARE	 	Dream Team Associates
	TOWSON TOWN CENTER	 	GGP
	THIRD AVE	 	Vandergrand Properties Co.
	TYSONS CORNER	 	Tysons Corner Holdings LLC
	UNION SQUARE	 	University Place Associates
	UNION STATION	 	Union Station Investco, LLC
	WALL STREET	 	67 Wall Street Associates
	WATER TOWER	 	Water Tower Place LLC
	WEST MADISON	 	303 Madison Chicago, LLC
	WESTPORT	 	Win Properties, Inc.
	WHITE MARSH	 	White Marsh Mall, LLC
	WILLOWBROOK MALL	 	Willowbrook Mall, LLC
	WOODBURY 	 	Kabro Assoc. of Woodbury LLC
	HOLDINGS-NY OFFICE	 	Adams & Co. Real Estate LLC
	HOLDINGS-MD OFFICE	 	Preston Strategies, LLC

 

    	19

    	 

    

 

SCHEDULE
11.1

 

Payment
of Indebtedness

 

See Schedule 10.19; provided, however, that
Borrowers will pay all amounts due and owing with respect to the Hoboken lease. Note that there may be additional locations of
the Subsidiaries which will be closed after the date hereof for which lease payments would no longer be paid.

 

    	20Exhibit 10.2

 

Execution Version

 

GUARANTY
AND SECURITY AGREEMENT

 

THIS GUARANTY AND SECURITY
AGREEMENT (as amended, supplemented, restated or otherwise modified from time to time, this "Agreement") is made
and entered into effective as of January 20, 2014, by the guarantors listed on Exhibit A (collectively, jointly and severally,
“Guarantors” and each a "Guarantor"), for the benefit of FISCHER ENTERPRISES, L.L.C., an Oklahoma
limited liability company ("Lender"), with reference to the following:

 

A.           Crumbs
Bake Shop, Inc., a Delaware corporation (“Crumbs”), and Crumbs Holdings LLC, a Delaware limited liability company
(“Crumbs Holdings,” together with Crumbs, collectively, "Borrowers" and each a “Borrower”),
each as a borrower, and Lender are parties to that certain Senior Secured Loan and Security Agreement, dated as of January 20,
2014 (such agreement, as amended, restated, supplemented or otherwise modified from time to time, being hereinafter referred to
as the "Loan Agreement"), pursuant to which the Lender has extended in favor of the Borrowers certain credit facilities,
as evidenced by Borrowers’ convertible promissory notes in the aggregate original principal amount of $5,000,000 payable
to the order of the Lender (as amended, extended, renewed, restated, replaced, substituted, rearranged, changed in form, consolidated
or otherwise modified from time to time, collectively, the "Notes").

 

B.           Each
Guarantor, as a wholly owned subsidiary of Crumbs Holdings, will receive substantial and valuable consideration and economic benefit
from the extension of credit by the Lender to Borrowers. The managers or board of directors, as applicable, of each
Guarantor has determined that the incurrence of such obligations is in the best interest of Guarantor.

 

C.           It
is a condition precedent to the obligations of the Lender under the Loan Agreement that this Agreement be executed by each Guarantor
and delivered to the Lender.

 

NOW, THEREFORE, in
consideration of the credit to be extended pursuant to the Loan Agreement, and as a material inducement therefor, and for other
good and valuable consideration, each Guarantor hereby covenants and agrees with Lender as follows:

 

1.            Definitions.
Capitalized terms used herein (including capitalized terms used in the recitals hereto) and not otherwise defined have the respective
meanings assigned to them in the Loan Agreement.

 

2.            Guaranty
of Payment. Each Guarantor hereby guarantees to Lender, absolutely, unconditionally and irrevocably, the prompt performance
and payment when due (whether at a stated maturity or earlier by reason of acceleration or otherwise) of the Obligations, including
the Notes and all other direct, indirect, primary or secondary liabilities and obligations now or hereafter owing by Borrowers
to Lender pursuant to the Notes and the other Loan Documents, including, without limitation, principal, interest, commitment fees,
agency fees, attorney’s fees, filing, recording and other perfection costs, out-of-pocket expenses, court costs and collection
expenses and costs (all of the foregoing being hereinafter collectively referred to as the "Guaranteed Obligations").

 

    	 

    	 

    

 

3.            Primary
and Direct Obligations. Each Guarantor agrees that its liability under this Guaranty shall be primary and direct, and that
Lender shall not be required, before enforcing this Agreement against any Guarantor: (a) to pursue any right or remedy it may have
against Borrowers or any other guarantor or other Person liable for any portion of the Guaranteed Obligations (hereinafter referred
to as a "Co-Obligor"), whether under the Loan Agreement or otherwise; (b) to commence any action or obtain any
judgment against Borrowers, any other guarantor or any Co-Obligor; or (c) to foreclose or realize any security interest in, or
otherwise to exercise rights and remedies against, any property of Borrowers, Guarantors or any other Person in which Lender holds
a security interest.

 

4.            Continuing
Guaranty. This Agreement is an absolute, unconditional and continuing guaranty of payment and performance of the Guaranteed
Obligations and shall continue to be in force and be binding upon each Guarantor until the Guaranteed Obligations have been paid
and performed in full. Each Guarantor hereby acknowledges and agrees that such Guarantor’s liability hereunder is joint and
several with the other Guarantors and any other Person(s) who may guarantee the Obligations under and in respect of the Notes and
the Loan Agreement. No notice of the Guaranteed Obligations to which this Agreement may apply, or of any renewal or extension thereof,
need be given to Guarantors, and none of the foregoing acts shall release Guarantors from liability hereunder. Each Guarantor hereby
expressly waives (a) demand of payment or performance, presentment, protest, notice of dishonor, nonpayment or nonperformance on
any and all forms of the Guaranteed Obligations; (b) notice of acceptance of this Agreement and notice of any liability to which
it may apply; (c) all other notices and demands of any kind and description relating to the Guaranteed Obligations now or hereafter
provided for by any statute, law, rule or regulation; and (d) any right Guarantor may have, whether under Title 12, Okla. Stat.
§686, Title 15, Okla. Stat. Sections 334, 337, 338, 341 and 344, or otherwise, to set-off of any other collateral or security
given to secure the Guaranteed Obligations, against the Guaranteed Obligations or receive or assert the reduction of Guarantor's
obligations in the same measure or amount afforded to Borrowers, as principal or otherwise. Each Guarantor hereby acknowledges
that Lender may obtain other guaranties to secure payment of the Guaranteed Obligations, and each Guarantor expressly agrees that
Guarantor’s liability hereunder shall not in any way be affected or impaired by the existence of such other guaranties and
that Guarantor’s liability hereunder will be joint and several with all other Co-Obligors.

 

5.            Obligations
Absolute. Each Guarantor agrees that its obligations are irrevocable, absolute, independent, and unconditional and shall not
be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in
full and satisfaction of the Obligations. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor
agrees that none of its obligations hereunder shall be affected or impaired by any of the following acts or things: (a) any acceptance
of collateral security, guarantors, accommodation parties or sureties for any or all of the Guaranteed Obligations; (b) one or
more extensions or renewals of the Guaranteed Obligations (whether or not for longer than the original period) or any modification
of the interest rates, maturities, if any, or other contractual terms applicable to any of the Guaranteed Obligations or any amendment
or modification of any of the terms or provisions of any of the Loan Documents; (c) any waiver or indulgence granted to Borrowers,
any delay or lack of diligence in the enforcement of the Guaranteed Obligations, or any failure to institute proceedings, file
a claim, give any required notices or otherwise protect any of the Guaranteed Obligations; (d) any full or partial release of,
compromise or settlement with, or agreement not to sue, Borrowers, any Co-Obligors, or any other Person liable in respect of any
of the Guaranteed Obligations; (e) any release, surrender, cancellation, or other discharge of any evidence of the Guaranteed Obligations
or the acceptance of any instrument in renewal or the substitution therefore; (f) any failure to obtain collateral security (including
rights of setoff) for the Guaranteed Obligations, or to see to the proper or sufficient creation and perfection of a security interest
in the Collateral, or to establish the priority thereof, or to preserve, protect, insure, care for, exercise or enforce any collateral
security, or any modification, alternation, substitution, exchange, surrender, cancellation, termination, release or other change,
impairment, limitation, loss or discharge of any Collateral; (g) any collection, sale lease, or disposition of, or any other foreclosure
or enforcement of or realization on, any collateral security; (h) any assignment, pledge, or other transfer of any of the Guaranteed
Obligations or any evidence thereof; or (i) any manner, order, or method of application of any payments or credits upon the Guaranteed
Obligations.

 

    	2

    	 

    

 

6.            Other
Transactions. Lender is expressly authorized to (a) exchange, surrender or release, with or without consideration, any and
all collateral or security which may at any time be placed with it by Borrowers or by any other Person, or to forward or deliver
any or all such collateral or security directly to Borrowers for collection and remittance or for credit, or to collect the same
in any other manner without notice to Guarantor; and (b) amend, modify, extend or supplement the Loan Agreement or other agreement
with respect to the Guaranteed Obligations in accordance with the terms thereof, waive compliance by Borrowers with the respective
terms thereof and settle or compromise any of the Guaranteed Obligations without notice to any Guarantor and without in any manner
affecting the absolute liability of Guarantors hereunder.

 

7.            Subordination
and Assignment. Upon the occurrence and during the continuation of any Event of Default, each Guarantor hereby subordinates
in favor of Lender any claims of such Guarantor against any Borrower or in or to any property of any Borrower, to the extent that
any such claims arise hereafter by reason of payments made by such Guarantor upon any item or items of the Guaranteed Obligations,
and each Guarantor hereby assigns to Lender any such claim hereafter arising and authorizes Lender to apply any payments thereon
upon such item or items of the Guaranteed Obligations as Lender may determine. Upon the termination of this Agreement as herein
provided, Lender agrees to reassign to Guarantors any claim which is assigned pursuant to this Section.

 

8.            Application
of Payments. Any and all payments upon the Guaranteed Obligations made by any Borrower, Guarantor or Co-Obligor, and/or the
proceeds of any or all collateral or security for any of the Guaranteed Obligations, may be applied by Lender on such items of
the Guaranteed Obligations in accordance with the terms and provisions of the Loan Agreement. Any payment made by any Guarantor
under this Agreement shall be effective to reduce or discharge the liability of Guarantors hereunder only if accompanied by an
advice received by Lender advising Lender that such payment is made under this Agreement for such purpose.

 

9.            Application
of Set Offs. To the extent a Guarantor is ultimately determined to be entitled to any statutory set off against liability hereunder,
notwithstanding the foregoing contractual waivers and releases herein fully and voluntarily provided to Lender, the fair market
value or net sale proceeds of any collateral now or hereafter held by Lender as security for the Guaranteed Obligations, the liability
of such Guarantor will be computed by first applying such set off to that portion of the Guaranteed Obligations for which Guarantor
is not liable, if any, and by then applying the balance of such set off, if any, to that portion of the Guaranteed Obligations
absolutely and unconditionally guaranteed hereby.

 

    	3

    	 

    

 

10.          Grant
of Security Interest. To secure the prompt payment and performance of the Guaranteed Obligations, each Guarantor hereby grants
to Lender a first priority lien and continuing security interest in all of the collateral described on Exhibit B to this
Agreement (the “Collateral”).

 

11.          Financing
Statement; Further Assurances. Lender is authorized to file, and promptly on request, Guarantors shall deliver such financing
statements, assignments, notices and other documents and instruments as it shall deem necessary or appropriate to perfect and continue
the perfection of the security interests in the Collateral, or otherwise to give effect to the intent of this Agreement.

 

12.          Collateral.

 

12.1.          Post-Funding
Covenants. Promptly following the initial funding under the Tranche I Loan, Guarantors shall use commercially reasonable efforts
to (i) obtain all the necessary consents required for Lender and Borrower to execute and record Leasehold Mortgages on each Borrower’s
and each Subsidiary’s Leases, and (ii) to assist Lender in obtaining Control Agreements for each Borrower’s and Subsidiary’s
Deposit Accounts. The failure to obtain any such consents shall not constitute an Event of Default hereunder.

 

12.2.          Location
of Collateral. Each Guarantor shall maintain all Collateral at a location that is either owned by such Guarantor or leased
by such Guarantor pursuant to a valid and existing lease agreement.

 

12.3.          Records
with respect to Collateral. Each Guarantor shall keep accurate and complete records of such Guarantor’s Collateral, including,
acquisitions and dispositions of such Collateral, and shall submit the records to Lender upon request.

 

12.4.          Defense
of Title to Collateral. Each Guarantor shall at all times, defend such Guarantor’s title to the Collateral and the lien
of Lender in such Collateral against all Persons, claims and demands.

 

12.5.          Disposition
of Collateral. Except for the sale of inventory in the ordinary course of business and as permitted in Section 12.2 of the
Loan Agreement, no Guarantor shall sell, lease or otherwise dispose of any Collateral without the prior written consent of Lender,
other than replacement of Collateral that is worn, damaged or obsolete with items of like function and value, if the replacement
Collateral is acquired substantially contemporaneously with such disposition and is free of liens. If Collateral is sold, leased,
or otherwise disposed pursuant to this Section 12.5 and the net proceeds of such sale, lease or disposition are applied
to repayment of the Loan, then Lender shall take all steps reasonably necessary to terminate and release Lender’s security
interest in any such disposed Collateral by filing a UCC-3 Financing Statement Amendment.

 

    	4

    	 

    

 

12.6.          Condition
of Collateral. Each Guarantor shall insure the Collateral in amounts and with insurance carriers that are consistent with the
insurance requirements set forth on Exhibit B of the Loan Agreement, and maintain the Collateral in good operating condition
and repair, and make all necessary replacements and repairs so that the value and operating efficiency of such Collateral shall
be preserved at all times, reasonable wear and tear excepted. Each Guarantor shall keep all of its Collateral from being affixed
to any real property.

 

12.7.          Deposit
Accounts. Each Borrower shall, and shall cause each of its Subsidiaries to, maintain all of its Deposit Accounts
in an insured account at a commercial bank and is organized under the Laws of the United States of America or any state thereof.

 

13.         Representations
and Warranties. Each Guarantor represents and warrants to Lender that:

 

13.1.          Benefit.
Each Guarantor has a substantial economic interest in Borrowers and/or expects to derive benefits from transactions resulting in
the creation of the Guaranteed Obligations hereby. Lender may rely conclusively on a continuing warranty hereby made, that each
Guarantor continues to be benefited by the Lender's establishment of credit to Borrowers, and Lender shall have no duty to inquire
into or confirm the receipt of any such benefits, and this Agreement shall be effective and enforceable by Lender without regard
to the receipt, nature or value of any such benefits.

 

13.2.          Receipt
of Loan Agreement. Each Guarantor has received a full and complete executed copy of the Loan Agreement.

 

13.3.          Financial
Statements. All financial statements or documents presented to Lender are accurate in all respects. As soon as available and
in any event within thirty (30) days after the final filing deadline for same, each Guarantor shall provide Lender with full and
complete copies of its federal and state tax returns. Guarantor shall provide Lender with annual and quarterly consolidated financial
statements in accordance with the terms and provisions of the Loan Agreement.

 

14.         Recovery
of Payment. If any payment received by Lender from any Borrower and applied to the Guaranteed Obligations is subsequently set
aside, recovered, rescinded or required to be returned for any reason (including, without limitation, the bankruptcy, insolvency
or reorganization of a Borrower or other Co-Obligor), the Guaranteed Obligations to which such payment was applied shall for the
purposes of this Agreement be deemed to have continued in existence, notwithstanding such application, and this Agreement shall
be enforceable against such Guarantor as to such Guaranteed Obligations as fully as if such application had never been made.

 

    	5

    	 

    

 

15.         Discharge.
Until each and every one of the Guaranteed Obligations is paid and performed in full, the obligations of Guarantors hereunder shall
not be released, in whole or in part, by any action or thing which might, but for this provision of this Agreement, be deemed a
legal or equitable discharge of a surety or Guarantors, or by reason of any waiver, extension, modification, forbearance or delay
or other act or omission of Lender or its failure to proceed promptly or otherwise, or by reason of any action taken or omitted
by Lender whether or not such action or failure to act varies or increases the risk of, or affects the rights or remedies of Guarantors,
nor shall any modification of any of the obligations of Borrowers or the release of any security therefor by operation of law or
by the action of any third party affect in any way the obligations of Guarantors hereunder, and Guarantors hereby expressly waives
and surrenders any defense to its liability hereunder based upon any of the foregoing acts, omissions, things, agreements or waivers
or any of them, it being the purpose and intent of the parties hereto that the Guaranteed Obligations of Borrowers constitute the
direct and primary obligations of Guarantor and that the covenants, agreements and all obligations of Guarantors hereunder be absolute,
unconditional and irrevocable.

 

16.         Event
of Default.

 

16.1.          Default
under the Loan Agreement. The occurrence or existence of any Event of Default under the Loan Agreement, unless waived in writing
by Lender, shall constitute an Event of Default under this Agreement.

 

16.2.          Other
Defaults. The failure of any Guarantor to perform or observe any other covenant or agreement set forth in this Agreement for
a period of 30 days after notice of such failure.

 

17.         Remedies.
If an Event of Default shall occur, then during the continuance thereof:

 

17.1.          All
Guaranteed Obligations, notwithstanding any term of this Agreement to the contrary, shall at Lender’s option and without
further notice become immediately due and payable, without presentment, demand, protest or notice of dishonor, all of which are
hereby expressly waived by each Guarantor.

 

17.2.          Lender
shall have all rights, powers and remedies available under this Agreement or accorded by Law, including, without limitation, the
right to resort to any or all security for the Guaranteed Obligations and to exercise any or all of the rights of a beneficiary
or secured party pursuant to applicable Law.

 

17.3.          Lender
may require each Guarantor to assemble Collateral at such Guarantor’s expense, and make it available to Lender at a place
designated by Lender;

 

17.4.          Lender
may enter any premises where Collateral is located and, without charge by Guarantor, use the Collateral in the operation of Guarantor’s
business or store Collateral on such premises until the sale or other disposition of the Collateral (which sale may be conducted
on such premises).

 

17.5.          Each
Guarantor agrees that 10 days’ notice of any proposed sale or other disposition of Collateral by Lender shall be reasonable.
Lender shall have the right to sell, lease or otherwise dispose of any Collateral for cash, credit or any combination thereof,
and Lender may purchase any Collateral at public or, if permitted by Law, private sale and, in lieu of actual payment of the purchase
price, may set off the amount of such price against the Guaranteed Obligations. All rights, powers and remedies of Lender in connection
with the Guaranteed Obligations may be exercised at any time by Lender and from time to time after the occurrence of an Event of
Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by Law or
equity.

 

    	6

    	 

    

 

17.6.          All
remedies afforded to Lender by reason of this Agreement are separate and cumulative remedies, and it is agreed that not one of
such remedies, whether or not exercised by Lender, shall be deemed to be in exclusion of any of the other remedies available to
Lender and shall in no way limit or prejudice any other legal or equitable remedy which Lender may have hereunder and with respect
to the Guaranteed Obligations. Each Guarantor agrees that included within the equitable remedies available to Lender hereunder
is the right of Lender to elect to have any and all of the obligations and agreements of such Guarantor hereunder specifically
performed.

 

17.7.          Notwithstanding
the forgoing provisions of this Section 17, upon the occurrence of any event that constitutes an Event of Default, Lender agrees
prior to exercising any of its remedies hereunder, to negotiate in good faith with Guarantors in an attempt to address such Event
of Default in a manner reasonably satisfactory to Lender and Guarantors so as to result in the Lender’s agreement to forbear
from the exercise of its remedies hereunder; provided, that, nothing contained herein shall obligate the Lender to forbear from
exercising such remedies, which shall only arise pursuant to a forbearance or similar agreement between the Lender and Guarantors.

 

18.         Judicial
Actions. Each Guarantor hereby waives any and all right to cause a marshaling of the assets of Borrowers or any other action
by any court or other governmental body with respect thereto, or to cause Lender to proceed against any security for the Guaranteed
Obligations or any other recourse which Lender may have with respect thereto or to set off the value of any such security, and
further waives any and all requirements that Lender institute any action or proceeding at law or in equity against Borrowers, or
any other guarantor, or any Co-Obligor with respect to the Loan Agreement or the Notes, or any collateral or security therefor,
as a condition precedent to making demand on or bringing an action or obtaining and/or enforcing a judgment against any Guarantor
upon this Agreement. Each Guarantor further waives any requirement that Lender seek performance by Borrowers, any other guarantor
or any Co-Obligor of any obligation under the Loan Agreement, the Notes, or any collateral or security therefor as a condition
precedent to making a demand on, or bringing any action or obtaining and/or enforcing a judgment against, any Guarantor upon this
Agreement, it being agreed that upon the occurrence of an Event of Default (as such term is defined in the Loan Agreement) and
acceleration of the Guaranteed Obligations, the obligations of Guarantors hereunder shall without further act mature immediately
and automatically, without further notice or demand or any other action by Lender.

 

19.         Bankruptcy
of Borrower. Each Guarantor expressly agrees that the liability and obligations of such Guarantor under this Agreement shall
not in any way be affected by the institution by or against any Borrower, any other guarantor or any Co-Obligor of any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or any other similar proceedings for relief under any bankruptcy
law or similar law for the relief of debtors, and that any discharge of any of the Guaranteed Obligations pursuant to any such
bankruptcy or similar law or other law shall not discharge or otherwise affect in any way the obligations of any Guarantor under
this Agreement, and that upon the institution of any of the above actions, at the sole discretion of Lender, such obligations shall
be enforceable against Guarantors.

 

    	7

    	 

    

 

20.         Termination.
Upon the occurrence of the expiration or termination of the Loans and the payment in full of the Guaranteed Obligations and the
repayment of all fees due and payable under the Loan Agreement, this Agreement and all obligations of Guarantors hereunder shall
terminate, without delivery of any instrument or performance of any act by any party.

 

21.         Severability.
Any remedy or right hereby granted which shall be found to be unenforceable as to any Person or under any circumstance, for any
reason, shall in no way limit or prevent the enforcement of such remedy or right as to any other Person or circumstances, nor shall
such unenforceability limit or prevent enforcement of any other remedy or right hereby granted.

 

22.         General.

 

22.1.          Collection
Costs. Each Guarantor agrees to reimburse Lender upon demand for all reasonable out-of-pocket costs, fees, and expenses (including
reasonable attorneys’ fees and legal expenses), and post-petition bankruptcy or other liquidation proceeding costs, fees
and expenses incurred by Lender arising out of or in connection with the enforcement of the Guaranteed Obligations or arising out
of or in connection with any failure of any Guarantor to fully and timely perform its obligations hereunder to the fullest extent
Borrowers would be required to do so under the Loan Agreement or any of the other Loan Documents or Security Instruments.

 

22.2.          No
Waiver. No delay on the part of Lender in the exercise of any power or right shall operate as a waiver thereof, nor shall any
single or partial exercise of any power or right preclude other or further exercise thereof or the exercise of any other power
or right.

 

22.3.          Obligations
Absolute. No invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or of any security
therefor or other recourse with respect thereto shall affect, impair or be a defense to this Agreement, and this Agreement is a
primary obligation of each Guarantor.

 

22.4.          Notices.
Any notice, demand, request or consent required or authorized hereunder shall be served in Person, delivered by U.S. mail, or sent
by fax, addressed as follows:

 

	If to Guarantor:	Crumbs Bake Shop, Inc.
	 	Crumbs Holdings LLC
	 	110 West 40th Street
	 	New York, NY 10018
	 	Attn:  Ed Slezak
	 	 
	With a copy to:	Cole, Schotz, Meisel, Forman & Leonard, P.A.
	 	Court Plaza North
	 	25 Main Street
	 	Hackensack, NJ 07601
	 	Attn: Marc P. Press, Esq.

 

    	8

    	 

    

 

	If to Lender:	Fischer Enterprises, L.L.C.
	 	15209 Grayson Drive
	 	Edmond, OK 73103
	 	Attention:  S. Scott Fischer
	 	 
	With a copy to:	McAfee & Taft A Professional Corporation
	 	10th Floor, Two Leadership Square
	 	211 N. Robinson
	 	Oklahoma City, OK 73102
	 	Attn: Louis J. Price

 

or at such other address as either
party hereto shall designate for such purpose in a written notice to the other. Notices served in person shall be effective and
deemed given when delivered; notices sent by fax shall be effective and deemed given when transmitted, as evidenced by the sender’s
confirmation thereof; and notices sent by mail shall be effective and deemed given three (3) Business Days after being deposited
in the U.S. mail, postage prepaid.

 

22.5.          Governing
Law. This Agreement will be deemed to be a contract made under and governed by the laws of the State of Oklahoma.

 

22.6.          Jurisdiction
and Venue. All actions or proceedings with respect to this Agreement may be instituted in any state or federal court sitting
in Oklahoma County, Oklahoma, and by execution and delivery of this Agreement, each Guarantor irrevocably and unconditionally (i)
submits to the nonexclusive jurisdiction (both subject matter and Person) of such court, and (ii) waives (a) any objection that
such Guarantor may now or hereafter have to the laying of venue in any of such courts, and (b) any claim that any action or proceeding
brought in any such court has been brought in an inconvenient forum.

 

22.7.          Waiver
of Jury Trial. Each Guarantor hereby voluntarily, knowingly, irrevocably and unconditionally waives any right to have a jury
participate in resolving any dispute (whether based upon contract, tort or otherwise) between or among Borrowers, Guarantors and
Lender arising out of or in any way related to this Agreement. This Subsection is a material inducement to Lender to provide the
financing described herein or in the other Loan Documents.

 

22.8.          Section
Headings. Section headings herein are for convenience only and shall not be deemed part of this Agreement.

 

22.9.          Successors
and Assigns. This Agreement shall be binding upon Guarantor and its successors and assigns and shall inure to the benefit of
Lender and its successors and assigns.

 

    	9

    	 

    

 

22.10.         Time
of the Essence. Each Guarantor acknowledges that time is of the essence with respect to its obligations under this Agreement.

 

[Signature Page Follows]

 

    	10

    	 

    

 

IN WITNESS WHEREOF,
this Agreement as been duly executed by each Guarantor as of the date first set forth above.

 

	 	CRUMBS HOLDINGS LLC, as sole member of, and for and on behalf of, each of the Guarantors listed on Exhibit A
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Guaranty and Security
Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

SUBSIDIARIES OF CRUMBS HOLDINGS LLC

 

		o	Crumbs 17th Street, LLC, a District of Columbia limited liability company

		o	Crumbs 42nd Street, LLC, a New York limited liability company

		o	Crumbs 92nd Street, LLC, a New York limited liability company

		o	Crumbs Americana, LLC, a California limited liability company

		o	Crumbs Beverly Hills, LLC, a California limited liability company

		o	Crumbs Broad Street, LLC, a New York limited liability company

		o	Crumbs Broadway LLC, a New York limited liability company

		o	Crumbs Brooklyn Heights LLC, a New York limited liability company

		o	Crumbs Calabasas, LLC, a California limited liability company

		o	Crumbs Catering LLC, a New York limited liability company

		o	Crumbs Clarendon LLC, a Virginia limited liability company

		o	Crumbs Columbia LLC, a New York limited liability company (f/k/a Crumbs 125th Street, LLC)

		o	Crumbs Columbus LLC, a New York limited liability company

		o	Crumbs Downtown II, LLC, a New York limited liability company

		o	Crumbs East Bakeshop II, LLC, a New York limited liability company

		o	Crumbs East End, LLC, a District of Columbia limited liability company

		o	Crumbs E-Commerce LLC, a New York limited liability company

		o	Crumbs Federal Street LLC, a Delaware limited liability company

		o	Crumbs Garment Center LLC, a New York limited liability company

		o	Crumbs Grand Central LLC, a New York limited liability company

		o	Crumbs Greenvale LLC, a New York limited liability company

		o	Crumbs Greenwich, LLC, a Connecticut limited liability company

		o	Crumbs Hoboken, LLC, a New Jersey limited liability company

		o	Crumbs Hollywood LLC, a California limited liability company

		o	Crumbs Huntington LLC, a New York limited liability company

		o	Crumbs II, LLC, a New York limited liability company

		o	Crumbs International Place, LLC, a Delaware limited liability company

		o	Crumbs L Street, LLC, a District of Columbia limited liability company

		o	Crumbs Larchmont, LLC, a California limited liability company

		o	Crumbs LaSalle, LLC, an Illinois limited liability company

		o	Crumbs L’Enfant Plaza, LLC, a District of Columbia limited liability company

		o	Crumbs Lexington LLC, a New York limited liability company

		o	Crumbs Madison LLC, a New York limited liability company

		o	Crumbs Malibu, LLC, a California limited liability company

		o	Crumbs Newark LLC, a New Jersey limited liability company

		o	Crumbs New Canaan, LLC, a California limited liability company

		o	Crumbs Oak Park, LLC, an Illinois limited liability company

		o	Crumbs Park Avenue LLC, a New York limited liability company

		o	Crumbs Park Avenue South, LLC, a New York limited liability company

		o	Crumbs Queens Center, LLC, a New York limited liability company

 

Exhibit A

Guaranty & Security Agreement

 

    	 

    	 

    

 

		o	Crumbs Retail Bake Shops, LLC, a Delaware limited liability company (f/k/a Crumbs Fulton Street, LLC

		o	Crumbs Ridgewood, LLC, a New Jersey limited liability company

		o	Crumbs Rittenhouse Square, LLC, a Delaware limited liability company

		o	Crumbs River North, LLC, an Illinois limited liability company

		o	Crumbs Sixth Avenue, LLC, a New York limited liability company

		o	Crumbs South Clark, LLC, an Illinois limited liability company

		o	Crumbs Stamford, LLC, a Connecticut limited liability company

		o	Crumbs Third Avenue LLC, a New York limited liability company

		o	Crumbs Times Square LLC, a New York limited liability company

		o	Crumbs Union Square LLC, a New York limited liability company

		o	Crumbs Union Station LLC, a District of Columbia limited liability company

		o	Crumbs Wall Street II, LLC, a New York limited liability company

		o	Crumbs West Madison, LLC, an Illinois limited liability company

		o	Crumbs Westfield LLC, a New Jersey limited liability company

		o	Crumbs Westport, LLC, a Connecticut limited liability company

		o	Crumbs Wholesale II, LLC, a New York limited liability company

		o	Crumbs Woodbury LLC, a New York limited liability company

 

Exhibit A

Guaranty & Security Agreement

 

    	 

    	 

    

 

EXHIBIT B

 

Description of Collateral

 

1.          “Collateral”
means all of each Guarantor’s Equipment, Inventory, Accounts, Chattel Paper, General Intangibles, Goods, Documents, Fixtures,
Deposit Accounts, Instruments, Investment Property, Letter of Credit Rights, Software, Commercial Tort Claims, money, Intellectual
Property, Incidental Rights, and all other property of each Guarantor, whether owned now or acquired after the date of this Agreement,
and including all proceeds thereof, all substitutions therefor, and all books and records related thereto.

 

2.          Definitions.
For the purpose of this Agreement, the following terms have the meanings set forth below:

 

“Copyrights”
means all rights under applicable law associated with works of authorship, including but not limited to copyrights, moral rights,
mask-works, and computer software (excluding commercially available software).

 

"Incidental Rights" means
(a) all books and records relating to the Equipment, contracts, contract rights, licenses, sublicenses, computer tapes, catalogues,
advertisements, source codes, computer programs, computer cards and computer disks, Accounts, Inventory and any of the other items
or types of Collateral; (b) all indemnities, guaranties or warranties relating to the ownership, construction, rental, operation,
maintenance, use or repair of the Equipment or other items or types of Collateral, (c) all telephone numbers assigned to Borrowers,
(d) all governmental filings, permits, approvals or licenses relating to the ownership, use or operating of the Equipment and Inventory;
and (e) contract files, right-of-way files and engineering files relating primarily thereto.

 

“Intellectual
Property” means the Copyrights, Know-How, Patents, and Trademarks.

 

“Know-How”
means all technical and business knowledge, proprietary information, data, processes, techniques, methods of manufacturing, methods
of operation, drawings, designs, blueprints, databases, draft patent applications, invention disclosures, research and development
projects, operating manuals, manufacturing and quality control procedures, non-commercial software, trade secrets, plans, accumulated
experience, plant and tool design, installation instructions and raw material specifications, formulations, techniques, drawings,
unpatented inventions (including inventions conceived prior to the date hereof but not documented as of the date hereof), advertising
procedures, sales promotion literature, customer lists, and price lists, in each case to the extent protectable under applicable
law.

 

"Patents"
means all domestic and foreign letters design and utility patent and patent applications (including without limitation all provisional,
design, divisional, renewal, re-exam, reissue, substitute, continuation, continuations-in-part and convention applications, all
other patent applications or utility model applications or issued patents or utility models claiming priority therefrom or otherwise
related thereto, and any and all letters patent and utility models, reissues, reexaminations, and extensions of letters patent
and utility models granted thereon, and every priority right that is or may be predicted upon or arise from therefrom or based
thereon) (including, without limitation, patents and patent applications in the United States Patent and Trademark Office, or in
any similar office or agency of the United States or any other country or any political subdivision thereof).

 

Exhibit B

Guaranty & Security Agreement

 

    	 

    	 

    

 

"Trademarks"
means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, dba's,
internet domain names, trade dress, trade styles, designs, logos and other source or business identifiers and all general intangibles
of like nature, now or hereafter owned, adopted, acquired or used by any Grantor (including, without limitation, all domestic and
foreign trademarks, service marks, collective marks, certification marks, trade names, business names, dba's, internet domain names,
trade dress, trade styles, designs, logos and other source or business identifiers), all applications, registrations and recordings
thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office
or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof),
and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized by such marks or associated
therewith.

 

“UCC”
means the Uniform Commercial Code, as amended and in effect in the State of Oklahoma.

 

3.          UCC
Terms. The following capitalized terms shall have the meanings set forth in the UCC: Equipment, Inventory, Accounts, Chattel
Paper, General Intangibles, Goods, Documents, Fixtures, Deposit Accounts, Instruments, Investment Property, Letter-of-credit Rights,
and Commercial Tort Claims.

 

Exhibit B

Guaranty & Security Agreement

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