On July 12, 2013, American Restaurant Concepts, Inc. entered into a voluntary resignation and compensation agreement with exclusive assignment with Michael P. Rosenberger, who is the company's Chief Executive Officer, and Moose River Management, Inc., a company that is wholly owned by Mr. Rosenberger. The separation agreement will become effective on July 31, 2013. Under the terms of the separation agreement, Mr. Rosenberger agreed to resign from his positions as the Chief Executive Officer, Chief Financial Officer and Secretary of the company, and from any and all other employment positions that he has with the company, and agreed to resign as a member of the board of directors of the company effective July 31, 2013.

As a result of the execution of the separation agreement, the employment agreement entered into by and between the company and Mr. Rosenberger on January 1, 2012 will terminate on July 31, 2013.