Document:

EX-10.5

 Exhibit 10.5 
 AMENDMENT NO. 2 
 TO 

CREDIT AGREEMENT 
 THIS AMENDMENT NO. 2 TO CREDIT AGREEMENT (this “Amendment”) is entered into as of August 20, 2013 among POTBELLY SANDWICH WORKS, LLC, an Illinois limited liability
company (“Borrower”), the other Loan Parties (as such term is defined in the Credit Agreement), the financial institutions listed on the signature pages hereto as lenders (the “Lenders”), and JPMORGAN CHASE BANK,
N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  

W I T N E S S E T H: 
 WHEREAS, the Loan Parties, the Lenders and the Administrative Agent have entered into that certain Credit Agreement dated as of September 21, 2012 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”); and 
 WHEREAS, the Loan Parties desire to amend
the Credit Agreement as set forth herein, and the Administrative Agent and the Lenders are willing to do so on the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows: 
 1. Definitions. Terms defined in the Credit
Agreement that are used herein shall have the same meanings as are set forth in the Credit Agreement for such terms unless otherwise defined herein. 
 2. Amendment to Credit Agreement. Upon the occurrence of the Effective Time (as hereinafter defined), the Credit Agreement is hereby amended as follows: 

(a) Clause (v) of Section 6.08(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 (v) so long as the Distribution Conditions have been satisfied (as determined by the Administrative Agent in its reasonable
discretion) at the time of, and with respect to, any Restricted Payment not otherwise permitted by the foregoing clauses (i) through (iv), the Borrower may make such Restricted Payment to Holdings and Holdings may make (x) a one-time
special dividend in the amount of up to $55,000,000 out of the net proceeds of the initial Public Offering of Holdings, provided that such dividend shall be permitted only if the net cash proceeds received by Holdings from the initial Public
Offering of Holdings are at least $65,000,000, and (y) such Restricted Payment to holders of Equity 

 
Interests in Holdings in an aggregate amount (but excluding from such amount the amount of the special dividend referred to in the preceding clause (x)) not to exceed (I) $20,000,000 in any
trailing twelve month period ending on the date such Restricted Payment is made, or (II) $40,000,000 after the date hereof, 

3. Conditions. When each of the following conditions has been completely satisfied as determined by the Administrative
Agent in its reasonable discretion, the amendments set forth in Section 2 of this Amendment shall become effective (the time of such satisfaction being hereinafter referred to as the “Effective Time;” the Effective Time shall
be deemed to occur on the date of this Amendment (the “Effective Date”) unless the Administrative Agent provides written notice to the contrary to the Loan Parties): 

(a) Documents. The Administrative Agent shall have received each of the following agreements, instruments and other
documents, in each case in form and substance reasonably satisfactory to the Administrative Agent: 
 (i) this
Amendment duly executed and delivered by the Loan Parties, the Lenders and the Administrative Agent; and 
 (ii)
such other documents, agreements, instruments, certificates, opinions and other items as the Administrative Agent may reasonably request in connection with this Amendment. 
 (b) Representations and Warranties; No Default. As of the date hereof (and, if different, also as of the Effective Date): (a) the representations and warranties contained herein, in the
Credit Agreement and in each other Loan Document shall be true and correct in all material respects (both immediately before and after giving effect to consummation of the transactions contemplated hereby), except to the extent any such
representation and warranty expressly refers to an earlier date, in which case such representation and warranty shall be true and correct in all material respects as of such earlier date; and (b) no Default or Event of Default shall exist.

 (c) Proceedings. All resolutions, consents and other corporate or limited liability company proceedings
taken or to be taken in connection with the transactions contemplated hereby, and all agreements, instruments, certificates and other documents relating thereto, shall be in form and substance satisfactory to the Administrative Agent, as determined
in its sole and absolute discretion, and shall be in full force and effect. 
 (d) Fees. All out-of-pocket
expenses required to be paid to the Administrative Agent’s special counsel on or prior to the Effective Date shall have been paid in full. 
 4. Representations and Warranties of the Loan Parties. Each Loan Party represents and warrants that: (a) the execution and delivery by such Loan Party of this Amendment, each other
document, instrument and agreement to be executed and delivered by such Loan Party in connection herewith (this Amendment and such other documents, instruments and agreements are referred to herein, collectively, as the “Amendment
Documents”) and the Credit Agreement (as amended hereby) and the performance of such Loan Party’s obligations 

  
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hereunder and thereunder: (i) are within the corporate or limited liability company powers of such Loan Party, (ii) are duly authorized by the board of directors or managers of such
Loan Party, and, if necessary, the shareholders or members of such Loan Party, (iii) are not in contravention of the terms of such Loan Party’s articles or certificate of incorporation or formation, by-laws, operating, management or
partnership agreement or other organizational documents, (iv) are not in contravention of the terms of the provisions of any indenture, instrument or agreement to which such Loan Party is a party or is subject, or by which it, or its property,
is bound, or conflict with or constitute a default thereunder, or result in, or require, the creation or imposition of any Lien in, of or on the property of such Loan Party pursuant to the terms of any such indenture, instrument or agreement (other
than Liens in favor of the Administrative Agent, for the benefit of itself and the Lenders, under the Security Agreement and any other Permitted Encumbrances), (v) do not contravene any law, rule, regulation, order, writ, judgment, injunction,
decree or award binding on such Loan Party; and (vi) do not require any order, consent, adjudication, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, or other action in respect of
any governmental or public body or authority, or any subdivision thereof; (b) each of this Amendment and the other Amendment Documents has been duly executed and delivered by such Loan Party and constitutes the legal, valid and binding
obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as limited by applicable bankruptcy, reorganization, insolvency or similar laws affecting the enforcement of creditors’ rights generally and
except as limited by general principles of equity; (c) the Credit Agreement, and each other Loan Document, after giving effect hereto, constitutes the legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party
in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally or by general equitable principles; (d) as of the
date hereof, and (after giving effect hereto and consummation of the transactions contemplated hereby) as of the Effective Date, there exists no Default or Event of Default; (e) no Domestic Subsidiaries have been formed or acquired after
September 21, 2012 (except for Permitted J/Vs, if any), and (f) all conditions set forth in Section 3 of this Amendment have been satisfied in full (provided that no representation or warranty is made as to the Administrative
Agent’s or any Lender’s acceptance or satisfaction with any matter). All representations and warranties contained in this Amendment shall survive the execution and delivery of this Amendment. 

5. Consent of Loan Guarantor. Each Loan Party (other than Borrower), in its capacity as a Loan Guarantor under 

 Article X of the Credit Agreement, hereby consents to this Amendment and the amendments contained herein and confirms and agrees
that, notwithstanding this Amendment and the effectiveness of the amendments contained herein, the Loan Guaranty is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects notwithstanding the terms of
this Amendment or any other amendment to the Credit Agreement. Nothing herein is intended or shall be deemed to limit the Administrative Agent’s or any Lender’s rights under the Loan Guaranty to take actions without the consent of any Loan
Guarantor. 

  
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 6. Reference to/Effect on the Credit Agreement, Etc. 

(a) On and after the Effective Date: (i) each reference in the Credit Agreement to “this Agreement,”
“hereunder,” “hereof,” “herein,” or words of like import shall mean and be a reference to the Credit Agreement, as amended hereby, and (ii) each reference to the Credit Agreement in all other Loan Documents shall
mean and be a reference to the Credit Agreement, as amended hereby. 
 (b) Except as otherwise provided herein, the Credit
Agreement, all other Loan Documents, all covenants, representations and warranties made therein, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are
hereby reaffirmed, ratified and confirmed. 
 (c) The execution, delivery and effectiveness of this Amendment and the other
Amendment Documents shall not (i) except as specifically stated herein, amend the Credit Agreement or any other Loan Document, (ii) operate as a waiver of any right, power or remedy of the Administrative Agent or any Lender, or
(iii) constitute a waiver of, or consent to any departure from, any provision of the Credit Agreement or any other Loan Document or any other documents, instruments and agreements executed or delivered in connection therewith. 

(d) Each Loan Party acknowledges and agrees that: (i) as of the date hereof (and, if different, also as of the Effective Date),
such Loan Party has no defenses, claims or set-offs to the payment of the Secured Obligations or to the enforcement of the Secured Obligations, the Credit Agreement or any of the other Loan Documents; and (ii) the Liens granted to the
Administrative Agent, for the benefit of itself and the Lenders, by such Loan Party are and remain valid perfected Liens in the assets of such Loan Party securing the payment and performance of the Secured Obligations. 

(e) This Amendment and the other Amendment Documents shall each be deemed a Loan Document for the purposes of the Credit Agreement.

 7. Miscellaneous. 
 (a) Choice of Law. This Amendment shall be governed by and construed in accordance with the internal laws (including, without limitation, 735 ILCS Section 105/5-1 et seq., but otherwise
without regard to the conflict of laws provisions) of the State of Illinois, but giving effect to federal laws applicable to national banks. 
 (b) Severability. Any provision of any Amendment Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction. 
 (c) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT, ANY OTHER AMENDMENT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY 

  
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HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

(d) Headings. Section headings used herein are for convenience of reference only, are not part of this Amendment and shall
not affect the construction of, or be taken into consideration in interpreting, this Amendment. 
 (e)
Counterparts. This Amendment may be executed and accepted in any number of counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment. 

[signature page(s) follow] 
  

  
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 IN WITNESS WHEREOF, this Amendment No. 2 to Credit Agreement has been duly executed as
of the day and year first above written. 
  

			
	LOAN PARTIES:  

	POTBELLY SANDWICH WORKS, LLC
		
	By: 	 	/s/ Aylwin Lewis
		 	Name:
		 	Title:
	
	POTBELLY CORPORATION
		
	By: 	 	/s/ Aylwin Lewis
		 	Name:
		 	Title:
	
	POTBELLY ILLINOIS, INC.
		
	By: 	 	/s/ Aylwin Lewis
		 	Name:
		 	Title:
	
	POTBELLY FRANCHISING, LLC
	PSW NORTH BRIDGE, LLC
	PSW NAPERVILLE, LLC
	POTBELLY SANDWICH WORKS DC-1, LLC
	PSW 55 WEST MONROE, LLC
	PSW WEST JACKSON, LLC
	PSW 555 TWELFTH STREET, LLC
	PSW WEST JACKSON, LLC
	PSW OLD ORCHARD, LLC
	PSW ROCKVILLE CENTER, LLC
	PSW GENEVA IL, LLC
	PSW LINCOLNSHIRE, LLC
	PSW IC, LLC
	PSW CLARK, LLC
	PSW NYAVE, LLC
	PSW DC ACQUISITION LLC
	PSW PBD ACQUISITION LLC
	
	By: Potbelly Illinois, Inc., as Manager
		
	By: 	 	/s/ Aylwin Lewis
		 	Name:
		 	Title:

 
			
	JPMORGAN CHASE BANK, N.A., individually as a Lender, and as Administrative Agent, Issuing Bank and Swingline Lender
		
	By:	 	/s/ Barbara Rajchel
		 	Name: Barbara Rajchel
		 	Title: Vice PresidentEX-10.6

 Exhibit 10.6 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS EXECUTIVE EMPLOYMENT AGREEMENT
(this “Agreement”) is made and entered into as of August 8, 2013 (the “Effective Date”) by and between Potbelly Corporation, a Delaware corporation (hereinafter referred to as “Company”), and Aylwin B. Lewis, an
individual (hereinafter referred to as “Executive”). 
 Statement of Purpose 

WHEREAS, Executive is currently employed by Company and is party to an Executive Employment Contract and Equity Incentive Plan dated as
of June 13, 2008, as amended (the “Prior Agreement”); and 
 WHEREAS, Company desires to continue to employ
Executive as its President and Chief Executive Officer from and after the Effective Date and Executive desires to continue in employment with Company from and after the Effective Date, subject to the terms and conditions of this Agreement.

 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is hereby mutually covenanted and
agreed by Company and Executive as follows: 
 1. Term, Employment and Duties. 

(a) Term. The initial term of employment of Executive pursuant to this Agreement shall commence on the Effective Date and shall
continue through the fourth anniversary of the Effective Date (the “Term”). Notwithstanding the foregoing, this Agreement and Executive’s employment may be terminated at any time during the Term pursuant to Paragraph 4 hereof.

 (b) Title and Duties. Effective as of the Effective Date, Company hereby agrees to continue to employ Executive, and
Executive agrees to continue in the employ of Company, as Company’s President and Chief Executive Officer. Executive shall also have the commensurate titles and positions with such subsidiaries of affiliates of Company as determined by Company
and shall serve in such positions without additional compensation. Executive shall have the duties, responsibilities and authority customary for his positions and shall perform such other duties consistent with such positions as may be assigned to
Executive, from time to time, by the Board of Directors of Company (the “Board”). Executive shall report directly to the Board. 
 (c) Directorship. During the Term, while Executive is employed as the President and Chief Executive Officer of Company, Company shall nominate Executive for re-election to the Board. Effective upon
the successful consummation of an initial public offering of Company’s common stock (an “IPO”) during the Term, Executive shall be appointed Chairman of the Board. At the time of his termination of employment with Company and its
affiliates for any reason (the “Termination Date”), Executive shall resign from the Board if requested to do so by Company. Executive shall not receive any additional compensation for serving as a director of Company or as Chairman of the
Board. 

 (d) Performance of Duties. Executive shall devote Executive’s full business
time, energy, loyalty, and ability exclusively to the business, affairs, and interests of Company and its affiliates, and shall use Executive’s best efforts and abilities to promote the interests of Company and its affiliates and to perform the
services contemplated by this Agreement and agrees that he will perform his duties faithfully and efficiently subject to the directions of the Board. Without the prior approval of the Board, Executive shall not, during the Term, directly or
indirectly, render any other employment or consulting activities or services, including as a director, to any other person, firm, corporation, or other entity; provided, however, that, to the extent that the following activities do not conflict with
or detract from the performance by Executive of Executive’s duties or violate the provisions of the Executive Confidentiality and Non-Compete Agreement referred to in Paragraph 1(e), Executive may (i) act as a director of, and may also
engage in activities involving, charitable, educational, religious, and similar types of organizations, and similar types of activities, provided Executive has notified the Board in writing of such activities, (ii) serve on the board of
directors (and any board committee) of not more than two for profit companies which do not compete with Company, and (ii) if as of the date which is six (6) months prior to the expiration of the Term, Executive and Company have not entered
into a new employment agreement or extension of this Agreement, serve on one additional board of directors of a for profit company. It is acknowledged that as of the Effective Date Executive serves on the boards of the companies listed in Appendix
A. 
 (e) Confidentiality, Non-Competition, Non-Interference and Intellectual Property. Executive hereby acknowledges
and confirms that Executive Confidentiality and Non-Compete Agreement previously signed by Executive and in effect on the Effective Date shall remain in full force and effect following the Effective Date and is hereby incorporated into and forms
part of this Agreement. 
 2. Termination of Employment. 

(a) Termination Date. Executive’s Termination Date shall occur upon termination by Company for any reason or no reason or by
Executive for any reason or no reason, including any of the following: (i) Executive’s death; (ii) Executive being disabled by reason of physical and mental infirmity or both, thereby rendering Executive unable to satisfactorily
perform Executive’s duties under this Agreement (a “Disability”), said Disability to be determined in good faith by the Board in consultation with no fewer than two (2) accredited physicians selected by the Board and reasonably
approved by Executive in the event that Disability is disputed; (iii) termination of Executive’s employment by Company with or without Cause (as defined below) or (iv) Executive’s resignation with or without Good Reason (as
defined below). Executive’s Termination Date shall be considered to be on account of a “Qualifying Termination” if the Termination Date occurs due to (1) termination by Company without Cause, or (2) termination by Executive
with Good Reason. If, at least thirty (30) days prior to the expiration of the Term, (I) Company does not offer to extend Executive’s employment past the last day of the Term on terms reasonably consistent with the terms of this
Agreement or (II) Company offers to extend Executive’s employment past the last day of the Term but the parties are unable to reach agreement on the terms of such continuing employment by the last day of the Term, then, for purposes of this
Agreement, Executive’s termination of employment upon the expiration of the Term shall be treated as a termination of Executive’s employment by the Company without Cause; provided, however, that the provisions of this clause (II) shall
apply only if Executive’s requests in the course of negotiations are reasonable and consistent with the terms of this Agreement. 

  
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 (b) Cause. The term “Cause” as used in this Agreement shall mean [an
act, action, or series of acts or actions, or omission or series of omissions, by Executive which constitute or result in: (i) intentional misrepresentation of material information by Executive in Executive’s relations with Company;
(ii) Executive’s indictment (or its equivalent) for the commission of a crime by Executive that constitutes a felony; (iii) commission of an act involving moral turpitude; (iv) the material breach or material default by Executive
of any of Executive’s written agreements with Company or obligations under any material provision of this Agreement or any written policy of Company (that remains unremedied within thirty (30) days after notice to Executive); (v) the
commission of fraud or embezzlement on the part of Executive; (vi) failure to comply with any lawful written direction of the Board (that, if capable of cure without damage to Company, remains unremedied within thirty (30) days after
notice to Executive); or (vii) willful action taken for the purpose of harming Company or any of its affiliates. For purposes of clause (vii) of this Paragraph 2(b), no act or failure to act, on the part of Executive, shall be considered
“willful” unless it is done or omitted to be done, by Executive in bad faith and without reasonable belief that Executive’s action or omission was in the best interest of Company. An act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interest of Company. 

(c) Good Reason. The term “Good Reason” as used in this Agreement means the occurrence, without Executive’s consent,
of (i) a material reduction in either Executive’s rate of Base Salary (as defined in Paragraph 3(a)) or Executive’s target or maximum bonus percentage (other than a reduction which does not exceed the percentage reduction of an across
the board salary or bonus reductions (target, actual or maximum) for management employees); (ii) any material reduction in the position, authority, or office of Executive with respect to Company, or in Executive’s responsibilities or
duties for Company; (iii) any action or inaction by Company that constitutes a material breach of the terms of this Agreement; (iv) following initial election to the Board, the then current Board shall fail to nominate Executive for
another term, or (following an IPO) as Chairman of the Board, while employed as the President and Chief Executive Officer of Company; or (v) any relocation of Executive’s principal place of work with Company to a place more than fifty
(50) miles from Company’s headquarters at the Effective Date; provided, however, that any such occurrence under clauses (i) – (v) above shall constitute Good Reason only if (1) Executive provides notice to Company
within sixty (60) days after Executive first has, or should have, knowledge of the occurrence, (2) Company fails to cure such occurrence within thirty (30) days after receipt of notice from Executive, and (3) Executive terminates
employment within sixty (60) days following expiration of the cure period. 
 3. Compensation and Benefits During
Employment. 
 (a) Base Salary. During the term of Executive’s employment hereunder, Company shall pay to
Executive a base salary at an annual rate of Seven Hundred Twenty Five Dollars Thousand Dollars ($725,000.00) (the “Base Salary”). The Base Salary shall not be increased during the Term. 

  
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 (b) Annual Bonus. With respect bonus years beginning prior to an IPO, Executive shall
be eligible for an “Annual Bonus” in accordance with Company’s annual incentive plan for Senior Team Leaders (the “SLT Bonus Plan”) as in effect on the Effective Date (including in accordance with established EBITDA targets)
and the Annual Bonus targets shall be equal to 100% of Base Salary and a maximum (stretch) target of 200% of Base Salary. For bonus years beginning on or after an IPO, the Annual Bonus amount and terms and conditions shall be determined in
accordance with incentive plan metrics approved by the Compensation Committee of the Board (the “Compensation Committee”) in consultation with Executive (but with the target percentages set forth above). Executive understands that the
actual amount of the Annual Bonus shall be determined in the sole discretion of the Compensation Committee. Executive’s bonus shall be paid in a single lump sum cash payment not later than March 15 following the conclusion of the calendar
year in which such bonus is earned, provided, however, that if the annual audit for such calendar year has not been issued by Company’s outside auditors by said March 15, then payment shall be made within thirty (30) days following
the issuance of such audit, but in no event shall payment be made later than the end of the calendar year following the calendar year in which such bonus is earned. 
 (c) Time Off. During the Term, Executive shall be entitled to vacation consistent with Company practice and policy for executive-level employees, but not less than five (5) weeks per
year. In addition, Executive shall be entitled to those paid holidays granted to Company employees while Executive is employed. 

(d) Executive Benefits/Perquisites. Executive shall be entitled to such other benefits, including health insurance, dental,
401(k), and other benefits and perquisites in such form and in such manner and at such times as Company shall from time to time adopt and establish for its executive-level employees generally. Executive shall be subject to eligibility and other
requirements of applicable benefit plans. 
 (e) Expenses. Company shall pay or reimburse Executive for all reasonable
business expenses actually incurred or paid by Executive during the Term in the performance of Executive’s duties and responsibilities under this Agreement, subject to and in accordance with applicable expense reimbursement policies as in
effect from time to time. Company shall pay on behalf of Executive the reasonable attorneys’ fees and costs incurred by Executive in the review and preparation of this Agreement and related agreements, subject to a maximum amount of $20,000
upon presentation of documentation of such fees and costs reasonably satisfactory to Company. 
 (f) Equity Awards.

 (i) On the Effective Date, Executive shall be granted stock options (the “Effective Date Grant”)
with a value of One Million Two Hundred Thousand Dollars ($1,200,000) under the Potbelly Corporation 2004 Equity Incentive Plan, as amended (the “2004 Equity Plan”). Executive shall be entitled to annual equity grants, if any, as
determined by the Compensation Committee with a target value of Six Hundred Thousand Dollars ($600,000) subject to increase or decrease as determined by the Board or the Compensation Committee based on performance; provided, however, that Executive
shall not be entitled to any equity grants prior to the second anniversary of the Effective Date. The value of any equity awards that are made in the form of stock options on or after the Effective Date, including the Effective Date Grant, shall be
determined based on the Black-Scholes method. 

  
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 (ii) All stock options that are outstanding on the Effective Date (other
than the Effective Date Grant) shall become fully vested on the Effective Date. All stock options granted on or after the Effective Date (including the Effective Date Grant) shall vest annually over four (4) years beginning on the first
anniversary of the grant date. 
 (iii) If Executive’s Termination Date occurs due to termination by Company
without Cause or if Executive resigns his employment on account of retirement (which, solely for purposes of this Paragraph 3(f)(iii), shall mean a resignation by Executive with or without good reason after Executive has attained at least age 57 and
completed at least ten (10) years of service with Company and if such termination is not for any other reason), all vested stock options that are outstanding on the Effective Date (other than the Effective Date Grant) and which continue to be
outstanding on the Termination Date shall remain exercisable for four (4) years after the Termination Date (or, if less, the expiration date of such stock option). All other stock options outstanding on Executive’s Termination Date shall
remain exercisable for ninety (90) days following the Termination Date or for such longer or shorter period specified under the stock option agreement evidencing such stock option but in no event after the expiration of the stock option term.

 4. Payments and Benefits on Termination of Employment. 

(a) Termination for any Reason. If Executive’s Termination Date occurs for any reason, Company shall pay or provide to
Executive (i) Executive’s Base Salary for the period ending on the Termination Date; (ii) Executive’s earned but unpaid Annual Bonus for any bonus year ending prior to the bonus year during which the Termination Date occurs;
(iii) reimbursement of Executive’s incurred but unreimbursed business expenses for periods prior to Executive’s Termination Date; and (iv) any other payments or benefits to be provided to Executive by Company pursuant to any
employee benefit plans or arrangements of Company or required by applicable law, to the extent such amounts are due from Company. Executive will be entitled to any other benefits in accordance with the terms of the applicable benefit plan or
program. Except as otherwise provided in Paragraph 3(f)(iii), all stock options outstanding on Executive’s Termination Date shall remain exercisable for ninety (90) days following the Termination Date or for such longer or shorter period
specified under the stock option agreement evidencing such stock option but in no event after the expiration of the stock option term. 
 (b) Qualifying Termination—Non-Change in Control. If Executive’s Termination Date occurs by reason of a Qualifying Termination and if the Release Requirements (as defined Paragraph 4(f))
are satisfied as of the sixtieth (60th) day following
the Termination Date (which sixtieth (60th) day shall
be referred to as the “Payment Date”), then, in addition to the payments and benefits to which Executive is entitled under Paragraph 4(a), Executive will be entitled to the following payments and benefits: 

  
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 (i) Company shall pay Executive a cash severance payment in a gross amount
equal to twelve (12) months of Executive’s Base Salary (determined as of the Termination Date without regard to any reduction thereof under circumstances which constitute Good Reason) (the “Severance Payment”). Any Severance
Payment to which Executive is entitled under this Paragraph 4(b)(i) will commence on the first regular payroll date after the Payment Date and shall continue to be paid in substantially equal payroll by payroll period installments for a period of
twelve (12) months thereafter. 
 (ii) All outstanding unvested stock options shall fully vest on the
Termination Date; provided, however, that if termination occurs at the end of the Term due to a Qualifying Termination pursuant to the last sentence of paragraph 2(a), only those unvested stock options granted in 2015 and 2016 will fully vest upon
the Termination Date. 
 (iii) If Executive is entitled to and elects continuation coverage under Company’s
group health plans pursuant to “COBRA” (“COBRA Coverage”), Company shall continue to pay on behalf of Executive and his eligible dependents the same level of employer contribution that is provided by Company for corresponding
coverage for similarly-situated active employees for the lesser of (1) twelve (12) months following Executive’s Termination Date or (2) the date on which COBRA Coverage terminates by its terms (the “Post-Termination Coverage
Benefit”). If the Post-Termination Coverage Benefit would subject Company or any of its affiliates to tax penalties or materially increase the cost to Company and its affiliates of providing group medical coverage to employees generally,
(A) Company may pay to Executive as additional severance an amount equal to such employer contributions, which payment shall be grossed-up for all applicable federal and state income taxes in the event that the employer contribution provided
above would be non-taxable to Executive, or (B) if the payment under clause (A) would also subject Company or any of its affiliates to tax penalties or materially increase the cost to Company and its affiliates of providing group medical
coverage to employees generally, Company shall have no obligation under this Paragraph 4(b)(iii). For the period commencing on Executive’s Termination Date and ending on the Payment Date, the COBRA Coverage shall be provided at Executive’s
expense and, if the Release Requirements are satisfied on the Payment Date, Executive shall be entitled to a lump sum payment in an amount equal to the Post-Termination Coverage Benefit that would have been provided to Executive for the period
beginning on the Termination Date and ending on the Payment Date, which lump sum payment shall be made on the Payment Date or the next scheduled payroll date. 
 If the Release Requirements are not satisfied on the Payment Date, Executive shall not be entitled to any payments or benefits under this Paragraph 4(b). 

(c) Qualifying Termination—Change in Control. If Executive’s Termination Date occurs by reason of a Qualifying
Termination (1) on or within six (6) months prior to a Change in Control (as defined below) and at a time when Company is a party to a letter of intent relating to transactions, which, if consummated, would constitute a Change in Control
or Company is in negotiations regarding a transaction which, if consummated, would constitute a Change in Control, (2) within three (3) months prior to a Change in Control, or (3) on or within two (2) years following a Change in
Control then, in addition to the payments and benefits to which Executive is entitled under Paragraph 4(a), Executive will be entitled to the following payments and benefits (which shall not be subject to satisfaction of the Release Requirements):

  
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 (i) Company shall pay Executive a cash severance payment in a gross amount
equal to the sum of (1) Executive’s Base Salary (determined as of the Termination Date without regard to any reduction thereof under circumstances that constitute Good Reason) and (2) Executive’s target Annual Bonus (the
“CIC Severance Payment”). Any CIC Severance Payment will commence on the first regular payroll date after the Payment Date and shall continue to be paid in substantially equal payroll by payroll installments for a period of twelve
(12) months thereafter. 
 (ii) If Executive is entitled to and elects COBRA Coverage, Company shall provide
Executive with the Post-Termination Coverage Benefit in accordance with the provisions of Paragraph 4(b)(iii). 

(iii) All outstanding unvested stock options will be fully vested on the Termination Date. 

For purposes of this Agreement, the term “Change in Control” shall mean, (1) for periods prior to an IPO, a “Corporate
Transaction” as defined in the 2004 Equity Plan and (2) for periods after an IPO, a “Change in Control” as defined in the Potbelly Corporation 2012 Long-Term Incentive Plan. In no event shall an IPO be considered a Change in
Control for purposes of this Agreement. For purposes of this Paragraph 4(c), in the case of a termination prior to a Change in Control for which payments and benefits are to be provided pursuant to this Paragraph 4(c), the date of the Change in
Control shall be treated as the Termination Date. 
 (d) Qualifying Termination—Prior to First Anniversary of Effective
Date. If prior to the first anniversary of the Effective Date, Company has not been able to consummate an IPO due to the Qualified IPO restrictions set forth in Company’s Charter and Stockholders’ Agreement and if Executive’s
resigns employment or is terminated by Company without Cause after the first anniversary of the Effective Date and prior to the second annual anniversary of the Effective Date, then, in addition to the payments and benefits to which Executive is
entitled under Paragraph 4(a), Executive will be entitled to the following payments and benefits (which shall be subject to satisfaction of the Release Requirements): 

(i) Company shall pay Executive a cash severance payment in a gross amount equal to two times the sum of
(1) Executive’s Base Salary (determined as of the Termination Date without regard to any reduction thereof under circumstances that constitute Good Reason) and (2) Executive’s target Annual Bonus (the “Special Severance
Payment”). Any Special Severance Payment will commence on the first regular payroll date after the Payment Date and shall continue to be paid in substantially equal payroll by payroll installments for a period of twenty-four (24) months
thereafter. 
 (ii) If Executive is entitled to and elects COBRA Coverage, Company shall provide Executive with
the Post-Termination Coverage Benefit in accordance with the provisions of Paragraph 4(b)(iii). 

  
 7 

 (iii) All outstanding unvested stock options will become fully vested on the
Termination Date. 
 If an adjustment to the Qualified IPO restrictions is executed by all relevant parties prior to the first anniversary of
the Effective Date, Executive shall not be entitled to any benefits pursuant to this Paragraph 4(d). 
 (e) Company
Property. Upon Executive’s Termination Date, Executive will promptly return to Company all the documents and/or property of or relating to Company or any of its affiliates within Executive’s possession or control. 

(f) Release Requirements. For purposes of this Agreement, the “Release Requirements” shall be satisfied as of any
date if, as of such date, Executive (or, for purposes of Paragraph 4(g), the legal representative of Executive’s estate) has signed a form of general release and waiver satisfactory to Company and Executive if prior to death (the
“Release”) and the Release has become effective in accordance with applicable law (including that the Release has not revoked and the revocation period applicable under applicable law has expired). 

(g) Termination by Reason of Death or Disability. If Executive’s Termination Date occurs by reason of death or
Disability and the Release Requirements are satisfied (which, in the case of death shall be satisfied by the legal representative of Executive’s estate), then, in addition to the payments and benefits to which Executive is entitled under
Paragraph 4(a): 
 (i) Company shall pay to Executive or the legal representative of his estate, as applicable, a
cash payment equal to the amount of the Annual Bonus that Executive would have received for the bonus year in which the Termination Date occurs had his/her Termination Date not occurred, based on actual Company performance and pro rated for the
portion of the bonus year completed prior to the Termination Date, payable at the same time as the annual bonus is paid to similarly-situated active executive employees in accordance with the terms of the applicable bonus plan of Company.

 (ii) Any stock options that would have vested within one (1) year following the Termination Date shall be
vested on the Termination Date. 
 5. Mitigation and Set-Off. Executive shall not be required to mitigate the amount of
any payment provided for in this Agreement by seeking other employment or otherwise. Company shall not be entitled to set off against the amounts payable to Executive under this Agreement any amounts earned by Executive in other employment after
termination of his employment with Company or any amounts which might have been earned by Executive in other employment had he sought such other employment; provided, however that Company shall be entitled to set off against the amounts payable to
Executive under this Agreement any amounts owed to Company by Executive. 
 6. Reimbursements. To the extent that any
reimbursements under this Agreement are taxable to Executive, such reimbursements shall be paid to Executive only if (a) to the extent not specified herein, the expenses are incurred and reimbursable pursuant to a reimbursement plan that
provides an objectively determinable nondiscretionary definition of the expenses that are eligible for reimbursement and (b) the expenses are incurred during the Term. With respect 

  
 8 

 
to any expenses that are reimbursable pursuant to the preceding sentence, the amount of the expenses that are eligible for reimbursement during one calendar year may not affect the amount of
reimbursements to be provided in any subsequent calendar year, the reimbursement of an eligible expense shall be made no later than the last day of the calendar year following the calendar year in which the expense was incurred, and the right to
reimbursement of the expenses shall not be subject to liquidation or exchange for any other benefit. 
 7. Notices.
Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by facsimile or prepaid overnight
courier to the parties at the addresses set forth below (or such other addresses as shall be specified by the parties by like notice). Communications that are to be delivered by the U.S. mail or by overnight service are to be delivered to the
addresses set forth below: 
 to Company: 
 Potbelly Corporation 
 222 Merchandise Mart Plaza 

Suite 2300 

Chicago, Illinois 60654 
 Attention: General Counsel 
 or to Executive, to Executive’s home address as
reflected in Company’s records. 
 Each party, by notice furnished to the other party, may modify the applicable delivery address, except
that notice of change of address shall be effective only upon receipt. 
 8. Non-Waiver. No waiver by either party or any
breach by the other party of any provision hereof shall be deemed to be a waiver of any later or other breach thereof or as a waiver of any such or other provision of this Agreement. 

9. Governing Law and Choice of Forum. The construction, validity, and enforceability of this Agreement shall be governed by the
laws of the State of Illinois, as that law applies to contracts made, and to be wholly performed, in the State of Illinois. 

10. Binding Effect. This Agreement shall be binding upon and inure to the benefit of Company, Executive, and Executive’s
personal representatives, beneficiaries, heirs, and successors. Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of Company to
expressly assume and agree to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession has taken place. 

11. Severability. If any provision of this Agreement or any part thereof be held invalid or unenforceable, the same shall not
affect or impair any other provision of this Agreement or any part thereof, and the invalidity or unenforceability of any provision of this Agreement shall not have any effect on or otherwise impair or limit the other obligations of Company or
Executive. 

  
 9 

 12. Counterparts. This Agreement may be executed in duplicate counterparts, each of
which shall be deemed an original hereof. 
 13. Disputes. Except as set forth in this Paragraph 13, any dispute, claim
or difference arising between Company and Executive (each a “Party,” and jointly, the “Parties”), including any dispute, claim or difference arising out of this Agreement, will be settled exclusively by binding arbitration in
accordance with the rules of the Judicial Arbitration and Mediation Services, Inc. (“JAMS”). The arbitration will be held Chicago, Illinois unless the Parties mutually agree otherwise. Nothing contained in this Paragraph 13 will be
construed to limit or preclude a Party from bringing any action in any court of competent jurisdiction for injunctive or other provisional relief to compel another party to comply with its obligations under this Agreement or any other agreement
between or among the Parties during the pendency of the arbitration proceedings. Each Party shall bear its own costs and fees of the arbitration, and the fees and expenses of the arbitrator will be borne equally by the Parties, provided, however, if
the arbitrator determines that any Party has acted in bad faith, the arbitrator shall have the discretion to require any one or more of the Parties to bear all or any portion of fees and expenses of the Parties and/or the fees and expenses of the
arbitrator; provided, further that, with respect to claims that, but for this mandatory arbitration clause, could be brought against Company under any applicable federal or state labor or employment law (“Employment Law”), the arbitrator
shall be granted and shall be required to exercise all discretion belonging to a court of competent jurisdiction under such Employment Law to decide the dispute, whether such discretion relates to the provision of discovery, the award of any
remedies or penalties, or otherwise and provided further that Company may be required to pay filing or administrative fees in the event that requiring Executive to pay such fees would render this Paragraph 13 unenforceable under applicable law. As
to claims not relating to Employment Laws, the arbitrator shall have the authority to award any remedy or relief that a Court of the State of Illinois could order or grant. The decision and award of the arbitrator shall be in writing and copies
thereof shall be delivered to each Party. The decision and award of the arbitrator shall be binding on all Parties. In rendering such decision and award, the arbitrator shall not add to, subtract from or otherwise modify the provisions of this
Agreement. Either Party to the arbitration may seek to have the award of the arbitrator entered in any court having jurisdiction thereof. All aspects of the arbitration shall be considered confidential and shall not be disseminated by any Party with
the exception of the ability and opportunity to prosecute its claim or assert its defense to any such claim. The arbitrator shall, upon request of either Party, issue all prescriptive orders as may be required to enforce and maintain this covenant
of confidentiality during the course of the arbitration and after the conclusion of same so that the result and underlying data, information, materials and other evidence are forever withheld from public dissemination with the exception of its
subpoena by a court of competent jurisdiction in an unrelated proceeding brought by a third party. 
 14. Assignment and
Survival. This Agreement is personal to Executive and shall not be assignable by Executive. This Agreement may be assigned by Company only to a successor-in interest to all or substantially all of the business operations of Company or any of its
affiliates. The rights and obligations of the parties to this Agreement shall survive its termination or expiration of this Agreement to the extent that any performance is required under this Agreement after the termination or expiration of the
Agreement. 

  
 10 

 15. No Strict Construction. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rule of strict construction will be used against any person. 
 16. Indemnification. If Executive (or his heirs, executors or administrators) is made a party or is threatened to be made a party to, or is involved in, any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that Executive is or was a director or officer of Company or is or was serving at the request of Company as a director or officer of another
corporation, partnership, joint venture, trust or other enterprise, Executive (and his heirs, executors or administrators) shall be indemnified and held harmless by Company to the fullest extent permitted by Delaware Law. To the fullest extent
authorized by Delaware Law, the right to indemnification conferred in this Paragraph 16 shall also include the right to be paid by Company the expenses incurred in connection with any such proceeding in advance of its final disposition upon delivery
to Company of an undertaking by or on behalf of Executive to repay such amount if it shall ultimately be determined that Executive is not entitled to be indemnified. Company’s obligations under this Paragraph 16 shall survive the termination or
expiration of this Agreement for any reason. 
 17. Withholding. All payments and benefits under this Agreement are
subject to withholding of all applicable taxes. 
 18. Special Section 409A Rules. It is intended that this
Agreement will comply with section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent applicable, and this Agreement shall be interpreted and construed on a basis consistent with such intent. Notwithstanding
any other provision of this Agreement to the contrary, if any payment or benefit hereunder is subject to section 409A of the Code, and if such payment or benefit is to be paid or provided on account of Executive’s Termination Date (or other
separation from service or termination of employment): 
 (a) and if Executive is a specified employee
(within the meaning of section 409A(a)(2)(B) of the Code) and if any such payment or benefit is required to be made or provided prior to the earlier of (i) the first (1st) day of the seventh (7th) month following Executive’s separation from service or (ii) the date of Executive’s death (the
“Section 409A Payment Date”), such payment or benefit shall be delayed until the Section 409A Payment Date; and 

(b) the determination as to whether Executive has had a termination of employment (or separation from service) shall be made in accordance
with the provisions of section 409A of the Code and the guidance issued thereunder without application of any alternative levels of reductions of bona fide services permitted thereunder. 

  
 11 

 For purposes of section 409A of the Code, any installment payment or benefit under this Agreement shall be
treated as a separate payment. If this Paragraph 18 applies to any payment or benefit hereunder, any such payments or benefits that would otherwise have been paid or provided to Executive between Executive’s Termination Date and the
Section 409A Payment Date, shall be paid in a lump sum on the Section 409A Payment Date. 
 19. Entire
Agreement. This Agreement, together with Executive Confidentiality and Non-Compete Agreement in effect on the Effective Date, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes and
cancels all prior or contemporaneous oral or written agreements and understandings between them with respect to the subject matter hereof, except as otherwise specifically stated in this Agreement, including the Prior Agreement; provided, however,
that nothing in this Agreement shall supersede the provisions of the Stock Terms Agreement which was included as Exhibit C to the Prior Agreement. This Agreement may not be changed or modified orally but only by an instrument in writing signed by
the parties hereto, which instrument states that it is an amendment to this Agreement. 
 20. Nondisparagement. During
the Term and at all times thereafter, regardless of the reason for the termination, Executive will not make any negative or disparaging statements or comments, either as fact or as opinion, about Company, its subsidiaries, or their products or
services, and Company (including its subsidiaries) will not make, and will take all reasonable actions to not permit the members of the Board or senior management to make, any negative or disparaging statements or comments, either as fact or as
opinion, about Executive (or authorizing any statements or comments to be reported as being attributed to Company). Nothing in this Paragraph 20 shall prohibit Executive or Company from providing truthful information in response to a subpoena or
other legal process. 
 IN WITNESS WHEREOF, intending to be legally bound, Company and Executive have executed this agreement as
of the date set forth below. 
  

							
	Dated as of August 12, 2013	 		 	POTBELLY CORPORATION
				
		 		 	By:	 	 /s/ Gerald R. Gallagher

		 		 	Its:	 	Lead Director
			
		 		 	EXECUTIVE
			
		 		 	 /s/ Aylwin B. Lewis

		 		 	Aylwin B. Lewis

  
 12 

 Appendix A 
 List of Board Memberships as of Effective Date 
 The Walt Disney Company

 Starwood Hotels & Resorts Worldwide, Inc.

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