Document:

Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (the “Agreement”),
dated as of [●] [●], 2022, is entered into by and between ParaZero Technologies Ltd., an Israeli company whose address is
30 Dov Hoz Street, Kiryat Ono, 5555626, Israel (the “Company”), and the undersigned Director or Officer of the Company
whose name appears on the signature page hereto officer (the “Indemnitee”).

 

	WHEREAS,	 	Indemnitee is an Office Holder (“Nosse Misra”), as such term is defined in the Companies Law, 5759–1999, as amended (the “Office Holder” and the “Companies Law” respectively), of the Company;
	 	 
	WHEREAS,	 	both the Company and Indemnitee recognize the increased risk of litigation and other claims being asserted against Office Holders of companies;
	 	 
	WHEREAS,	 	the Amended and Restated Articles of Association of the Company (the “Articles of Association”) authorize the Company to indemnify and advance expenses to its Office Holders and provide for insurance and exculpation to its Office Holders, in each case, to the fullest extent permitted by applicable law;
	 	 
	WHEREAS,	 	the Company has determined that (i) the increased difficulty in attracting and retaining competent persons is detrimental to the best interests of the Company’s shareholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future, and (ii) it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law, so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and
	 	 
	WHEREAS,	 	in recognition of Indemnitee’s need for substantial protection against personal liability in order to assure Indemnitee’s continued service to the Company in an effective manner and, in part, in order to provide Indemnitee with specific contractual assurance that the indemnification, insurance and exculpation afforded by the Articles of Association will be available to Indemnitee, the Company wishes to undertake in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent permitted by applicable law and as set forth in this Agreement and provide for insurance and exculpation of Indemnitee as set forth in this Agreement.

 

NOW, THEREFORE, the parties hereto agree
as follows:

 

		1.	INDEMNIFICATION AND INSURANCE.

 

		1.1.	The Company hereby undertakes to indemnify Indemnitee to the fullest extent permitted by applicable law
for any liability and expense specified in Sections ‎1.1.1 through ‎1.1.4below, imposed on Indemnitee due to or in connection
with an act performed by such Indemnitee, either prior to or after the date hereof, in Indemnitee’s capacity as an Office Holder,
including, without limitation, as a director, officer, employee, agent or fiduciary of the Company, any subsidiary thereof or any other
corporation, collaboration, partnership, joint venture, trust or other enterprise, in which Indemnitee serves at any time at the request
of the Company (the “Corporate Capacity”). The term “act performed in Indemnitee’s capacity as an Office
Holder” shall include, without limitation, any act, omission or failure to act and any other circumstances relating to or arising
from Indemnitee’s service in a Corporate Capacity. Notwithstanding the foregoing, in the event that the Office Holder is the beneficiary
of an indemnification undertaking provided by a subsidiary of the Company or any other entity with respect to his or her Corporate Capacity
with such subsidiary or entity, then the indemnification obligations of the Company hereunder with respect to such Corporate Capacity
shall only apply to the extent that the indemnification by such subsidiary or other entity does not actually fully cover the indemnifiable
liabilities and expenses relating thereto. The following shall be hereinafter referred to as “Indemnifiable Events”:

 

		1.1.1.	Financial liability imposed on Indemnitee in favor of any person pursuant to a judgment, including a judgment
rendered in the context of a settlement or an arbitrator’s award approved by a court. For purposes of Section ‎1 of this Agreement,
the term “person” shall include, without limitation, a natural person, firm, partnership, joint venture, trust, company,
corporation, limited liability entity, unincorporated organization, estate, government, municipality, or any political, governmental,
regulatory or similar agency or body;

 

     

     

    

 

		1.1.2.	Reasonable Expenses (as defined below) expended by Indemnitee as a result of an investigation or any proceeding
instituted against the Indemnitee by an authority that is authorized to conduct such investigation or proceeding, and that was concluded
without filing an indictment against the Indemnitee and without imposing on the Indemnitee a financial liability in lieu of a criminal
proceeding, or that was concluded without filing an indictment against the Indemnitee but imposing a financial liability in lieu of a
criminal proceeding in an offence that does not require proof of mens rea, or in connection with a financial sanction. In this
section “conclusion of a proceeding without filing an indictment in a matter in which a criminal investigation has been instigated”
and “financial liability in lieu of a criminal proceeding” shall have the meaning assigned to such terms under the Companies
Law, and the term “financial sanction” shall mean such term as referred to in Section 260(a)(1a) of the Companies Law;

 

		1.1.3.	Reasonable Expenses expended by or imposed on Indemnitee by a court, in a proceeding instituted against
Indemnitee by the Company or on its behalf or by another person, or in a criminal charge from which Indemnitee was acquitted or in which
Indemnitee was convicted of an offence that does not require proof of mens rea; and

 

		1.1.4.	Any other event, occurrence, matter or circumstances under any law with respect to which the Company may,
or will be able to, indemnify an Office Holder (including, without limitation, in accordance with Section 56h(b)(1) of the Israeli Securities
Law, 5728-1968 (the “Israeli Securities Law”), if applicable, and Section 50P(b)(2) of the Israeli Economic Competition
Law, 5758-1988 (the “Economic Competition Law”)).

 

For the purpose of this Agreement,
“Expenses” shall include, without limitation, legal fees and all other costs, expenses and obligations paid or incurred
by Indemnitee in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing
to defend, be a witness in or participate in any claim, action, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry
or investigation relating to any matter for which indemnification hereunder may be provided. Expenses shall be considered paid or incurred
by Indemnitee at such time as Indemnitee is required to pay or incur such cost or expenses, including upon receipt of an invoice or payment
demand. The Company shall pay the Expenses in accordance with the provisions of Section ‎1.3.

 

		1.2.	Notwithstanding anything herein to the contrary, the Company’s undertaking to indemnify the Indemnitee
in advance under Section ‎1.1.1 shall only be with respect to events described in Exhibit A hereto. The Board of Directors
of the Company (the “Board”) has determined that the categories of events listed in Exhibit A are foreseeable in light
of the operations of the Company. The maximum amount of indemnification payable by the Company under Section ‎1.1.1 with respect to
the specific events described in Exhibit A during any period of five years, shall be as set forth in Exhibit A hereto (the “Limit
Amount”). If the Company undertook to indemnify multiple persons under agreements similar to this Agreement (the “Indemnifiable
Persons”) the Limit Amount for the five year period commencing on the closing of the first issuance and sale of the Company’s
ordinary shares to the public, pursuant to an effective registration statement under the United States Securities Act 1933, as amended,
or the securities law of any other jurisdiction, and for every subsequent five year period, shall apply to all Indemnifiable Persons,
in the aggregate, and if the Limit Amount is insufficient to cover all the indemnity amounts payable with respect to all Indemnifiable
Persons during the relevant five year period, then such amount shall be allocated to such Indemnifiable Persons pro rata according to
the percentage of their culpability, as finally determined by a court in the relevant claim, or, absent such determination or in the event
such persons are parties to different claims, based on an equal pro rata allocation among such Indemnifiable Persons. The Limit Amount
payable by the Company as described in Exhibit A is deemed by the Company to be reasonable in light of the circumstances. The indemnification
provided under Section ‎1.1.1 herein shall not be subject to the limitations imposed by this Section ‎1.2 and Exhibit A if and
to the extent such limits do not or are no longer required by the Companies Law.

 

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		1.3.	If so requested by Indemnitee in writing, and subject to the Company’s repayment and reimbursements
rights set forth in Sections ‎3 and ‎5 below, the Company shall pay amounts to cover Indemnitee’s Expenses with respect
to which Indemnitee is entitled to be indemnified under Section ‎1.1 above, as and when incurred. The payments of such amounts shall
be made by the Company directly to the Indemnitee’s legal and other advisors, as soon as practicable, but in any event no later
than fifteen (15) days after written demand by such Indemnitee therefor to the Company, and any such payment shall be deemed to constitute
indemnification hereunder. As part of the aforementioned undertaking, the Company will make available to Indemnitee any security or guarantee
that Indemnitee may be required to post in accordance with an interim decision given by a court, governmental or administrative body,
or an arbitrator, including for the purpose of substituting liens imposed on Indemnitee’s assets.

 

		1.4.	The Company’s obligation to indemnify Indemnitee and advance Expenses in accordance with this Agreement
shall be for such period (the “Indemnification Period”) as Indemnitee shall be subject to any actual, possible or threatened
claim, action, suit, demand or proceeding or any inquiry or investigation, whether civil, criminal or investigative, arising out of the
Indemnitee’s service in the Corporate Capacity as described in Section ‎1.1 above, whether or not Indemnitee is still serving
in such position.

 

		1.5.	The Company undertakes that, subject to the mandatory limitations under applicable law, as long as it
may be obligated to provide indemnification and advance Expenses under this Agreement, the Company will purchase and maintain in effect
directors and officers’ liability insurance, which will include coverage for the benefit of the Indemnitee, providing coverage in
amounts as reasonably determined by the Board; provided that, the Company shall have no obligation to obtain or maintain directors and
officers’ insurance policy if the Company determines in good faith that such insurance is not reasonably available, the premium
costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited
by exclusions that it provides an insufficient benefit. The Company hereby undertakes to notify the Indemnitee prior to the expiration
or termination of the directors and officers’ liability insurance.

 

		1.6.	The Company undertakes to give prompt written notice of the commencement of any claim hereunder to the
insurers in accordance with the procedures set forth in each of the policies. The Company shall thereafter diligently take all actions
reasonably necessary under the circumstances to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of
such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies. The above shall not derogate from
Company’s authority to freely negotiate or reach any compromise with the insurer which is reasonable at the Company’s sole
discretion provided that the Company shall act in good faith and in a diligent manner.

 

		2.	SPECIFIC LIMITATIONS ON INDEMNIFICATION.

 

Notwithstanding anything to the contrary
in this Agreement, the Company shall not indemnify or advance Expenses to Indemnitee with respect to (i) any act, event or circumstance
with respect to which it is prohibited to do so under applicable law, or (ii) a counter claim made by the Company or in its name in connection
with a claim against the Company filed by the Indemnitee.

 

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		3.	REPAYMENT OF EXPENSES.

 

		3.1.	In the event that the Company provides or is required to provide indemnification with respect to Expenses
hereunder and at any time thereafter the Company determines, based on advice from its legal counsel, that the Indemnitee was not entitled
to such payments, the amounts so indemnified by the Company will be promptly repaid by Indemnitee, unless the Indemnitee disputes the
Company’s determination, in which case the Indemnitee’s obligation to repay to the Company shall be postponed until such dispute
is resolved.

 

		3.2.	Indemnitee’s obligation to repay to the Company for any Expenses or other sums paid hereunder shall
be deemed as a loan given to Indemnitee by the Company subject to the minimum interest rate prescribed by Section 3(9) of the Income Tax
Ordinance [New Version], 1961, or any other legislation replacing it, which is not considered a taxable benefit.

 

		4.	SUBROGATION.

 

In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents
required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable
the Company effectively to bring suit to enforce such rights.

 

		5.	REIMBURSEMENT.

 

The Company shall not be liable under
this Agreement to make any payment in connection with any Indemnifiable Event to the extent Indemnitee has otherwise actually received
payment under any insurance policy or otherwise (without any obligation of Indemnitee to repay any such amount) of the amounts otherwise
indemnifiable hereunder. Any amounts paid to Indemnitee under such insurance policy or otherwise after the Company has indemnified Indemnitee
for such liability or Expense shall be repaid to the Company promptly upon receipt by Indemnitee, in accordance with the terms set forth
in Section ‎3.2.

 

		6.	EFFECTIVENESS.

 

The Company represents and warrants
that this Agreement is valid, binding and enforceable in accordance with its terms and was duly adopted and approved by the Company, and
shall be in full force and effect immediately upon its execution (or, if executed prior to the Company’s initial public offering,
upon the effective time of the IPO).

 

		7.	NOTIFICATION AND DEFENSE OF CLAIM.

 

Indemnitee shall notify the Company
of the commencement of any action, suit or proceeding, and of the receipt of any notice or threat that any such legal proceeding has been
or shall or may be initiated against Indemnitee (including any proceedings by or against the Company and any subsidiary thereof), promptly
upon Indemnitee first becoming so aware; but the omission so to notify the Company will not relieve the Company from any liability which
it may have to Indemnitee under this Agreement unless and to the extent that such failure to provide notice prejudices the Company’s
ability to defend such action. Notice to the Company shall be directed to the Chief Executive Officer or Chief Financial Officer of the
Company at the address shown in the preamble to this Agreement (or such other address as the Company shall designate in writing to Indemnitee).
With respect to any such action, suit or proceeding as to which Indemnitee notifies the Company of the commencement thereof and without
derogating from Sections ‎1.1 and ‎2:

 

		7.1.	The Company will be entitled to participate therein at its own expense.

 

		7.2.	Except as otherwise provided below, the Company, alone or jointly with any other indemnifying party similarly
notified, will be entitled to assume the defense thereof, with counsel selected by the Company. Indemnitee shall have the right to employ
his or her own counsel in such action, suit or proceeding, but the fees and expenses of such counsel incurred after notice from the Company
of its assumption of the defense thereof shall be at the expense of Indemnitee, unless: (i) the employment of counsel by Indemnitee has
been authorized in writing by the Company; (ii) the Company, in good faith, reasonably concluded that there may be a conflict of interest
between the Company and Indemnitee in the conduct of the defense of such action; or (iii) the Company has not in fact employed counsel
to assume the defense of such action within reasonable time, in which cases the reasonable fees and expenses of Indemnitee’s counsel
shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any action, suit or proceeding brought
by or on behalf of the Company or as to which Indemnitee and the Company shall have reached the conclusion specified in (ii) above.

 

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		7.3.	The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts or expenses
paid in connection with a settlement of any action, claim or otherwise, effected without the Company’s prior written consent.

 

		7.4.	The Company shall have the right to conduct the defense as it sees fit in its sole discretion (provided
that the Company shall conduct the defense in good faith and in a diligent manner), including the right to settle or compromise any claim
or to consent to the entry of any judgment against Indemnitee without the consent of the Indemnitee, provided that, the amount of such
settlement, compromise or judgment does not exceed the Limit Amount (if applicable) and is fully indemnifiable pursuant to this Agreement
(subject to Section 1.2 of this Agreement) and/or applicable law, and any such settlement, compromise or judgment does not impose any
penalty or limitation on Indemnitee without the Indemnitee’s prior written consent. The Indemnitee’s consent shall not be
required if the settlement includes a complete release of Indemnitee, does not contain any admission of wrong-doing by Indemnitee, and
includes monetary sanctions only as provided above. In the case of criminal proceedings the Company and/or its legal counsel will not
have the right to plead guilty or agree to a plea-bargain in the Indemnitee’s name without the Indemnitee’s prior written
consent. Neither the Company nor Indemnitee will unreasonably withhold or delay their consent to any proposed settlement.

 

		7.5.	Indemnitee shall fully cooperate with the Company and shall give the Company all information and access
to documents, files and to his or her advisors and representatives as shall be within Indemnitee’s power, in every reasonable way
as may be required by the Company with respect to any claim which is the subject matter of this Agreement and in the defense of other
claims asserted against the Company (other than claims asserted by Indemnitee), provided that the Company shall cover all expenses, costs
and fees incidental thereto such that the Indemnitee will not be required to pay or bear such expenses, costs and fees.

 

		8.	EXCULPATION.

 

Subject to the provisions of the Companies
Law, the Company hereby releases, in advance, the Office Holder from liability to the Company for any damage that arises from the breach
of the Office Holder’s duty of care to the Company (within the meaning of such terms under Sections 252 and 253 of the Companies
Law), other than breach of the duty of care towards the Company in a distribution (as such term is defined in the Companies Law).

 

		9.	NON-EXCLUSIVITY.

 

The rights of the Indemnitee hereunder
shall not be deemed exclusive of any other rights Indemnitee may have under the Articles of Association, applicable law or otherwise,
and to the extent that during the Indemnification Period the indemnification rights of the then serving directors and officers are more
favorable to such directors or officers than the indemnification rights provided under this Agreement to Indemnitee, Indemnitee shall
be entitled to the full benefits of such more favorable indemnification rights to the extent permitted by law.

 

		10.	PARTIAL INDEMNIFICATION.

 

If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually
or reasonably incurred by Indemnitee in connection with any proceedings, but not, however, for the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled under
any provision of this Agreement. Subject to the provisions of Section ‎5 above, any amount received by Indemnitee (under any insurance
policy or otherwise) shall not reduce the Limit Amount hereunder and shall not derogate from the Company’s obligation to indemnify
the Indemnitee in accordance with the provisions of this Agreement up to the Limit Amount, as set forth in Section ‎1.2.

 

		11.	BINDING EFFECT.

 

This Agreement shall be binding upon
and inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. In the event
of a merger or consolidation of the Company or a transfer or disposition of all or substantially all of the business or assets of the
Company, the Indemnitee shall be entitled to the same indemnification and insurance provisions as the most favorable indemnification and
insurance provisions afforded to the then-serving Office Holders of the Company. In the event that in connection with such transaction
the Company purchases a directors and officers’ “tail” or “run-off” policy for the benefit of its then serving
Office Holders, then such policy shall cover Indemnitee and such coverage shall be deemed to be in satisfaction of the insurance requirements
under this Agreement. This Agreement shall continue in effect during the Indemnification Period regardless of whether Indemnitee continues
to serve in a Corporate Capacity.

 

Any amendment to the Companies Law,
the Israeli Securities Law, the Economic Competition Law or other applicable law adversely affecting the right of the Indemnitee to be
indemnified, insured or released pursuant hereto shall be prospective in effect, and shall not affect the Company’s obligation or
ability to indemnify or insure the Indemnitee for any act or omission occurring prior to such amendment, unless otherwise provided by
applicable law.

 

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		12.	SEVERABILITY.

 

The provisions of this Agreement shall
be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof. If any provision of this Agreement, or the application thereof or any circumstance, is invalid or unenforceable, (a)
a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent
and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision or
circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity
or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

		13.	NOTICE.

 

All notices and other communications
pursuant to this Agreement shall be in writing and shall be deemed provided if delivered personally, telecopied, sent by electronic facsimile,
email, reputable overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties
at the addresses shown in the preamble to this Agreement, or to such other address as the party to whom notice is to be given may have
furnished to the other party hereto in writing in accordance herewith. Any such notice or communication shall be deemed to have been delivered
and received (i) in the case of personal delivery, on the date of such delivery, (ii) in the case of telecopier or an electronic facsimile
or email, one business day after the date of transmission if confirmation of receipt is received, (iii) in the case of a reputable overnight
courier, three business days after deposit with such reputable overnight courier service, and (iv) in the case of mailing, on the seventh
business day following that on which the mail containing such communication is posted.

 

		14.	GOVERNING LAW; JURISDICTION.

 

This Agreement shall be governed by
and construed and enforced in accordance with the laws of the State of Israel, without giving effect to the conflicts of law provisions
of those laws. The Company and Indemnitee each hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of Tel
Aviv, Israel for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.

 

		15.	ENTIRE AGREEMENT.

 

This Agreement represents the entire
agreement between the parties and supersedes any other agreements, contracts or understandings between the parties, whether written or
oral, with respect to the subject matter of this Agreement.

 

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		16.	NO MODIFICATION AND NO WAIVER.

 

No supplement, modification or amendment,
termination or cancellation of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar)
nor shall such waiver constitute a continuing waiver. Any waiver shall be in writing. The Company hereby undertakes not to amend its Articles
of Association in a manner which will adversely affect the provisions of this Agreement.

 

		17.	ASSIGNMENTS; NO THIRD PARTY RIGHTS

 

Neither party hereto may assign any
of its rights or obligations hereunder except with the express prior written consent of the other party. Nothing herein shall be deemed
to create or imply an obligation for the benefit of a third party. Without limitation of the foregoing, nothing herein shall be deemed
to create any right of any insurer that provides directors and officers’ liability insurance, to claim, on behalf of Indemnitee,
any rights hereunder.

 

		18.	INTERPRETATION; DEFINITIONS.

 

Unless the context shall otherwise
require: words in the singular shall also include the plural, and vice versa; any pronoun shall include the corresponding masculine, feminine
and neuter forms; the words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”; the words “herein”, “hereof” and “hereunder” and words
of similar import refer to this Agreement in its entirety and not to any part hereof; all references herein to Sections or clauses shall
be deemed references to Sections or clauses of this Agreement; any references to any agreement or other instrument or law, statute or
regulation are to it as amended, supplemented or restated, from time to time (and, in the case of any law, to any successor provisions
or re-enactment or modification thereof being in force at the time); any reference to “law” shall include any supranational,
national, federal, state, local, or foreign statute or law and all rules and regulations promulgated thereunder; any reference to a “day”
or a number of “days” (without any explicit reference otherwise, such as to business days) shall be interpreted as a reference
to a calendar day or number of calendar days; reference to month or year means according to the Gregorian calendar; reference to a “company”,
“corporate body” or “entity” shall include a, partnership, firm, company, corporation, limited liability company,
association, joint venture, trust, unincorporated organization, estate, or a government municipality or any political, governmental, regulatory
or similar agency or body, and reference to a “person” shall mean any of the foregoing or a natural person.

 

		19.	COUNTERPARTS

 

This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart,
and all of which together shall constitute one and the same instrument; it being understood that parties need not sign the same counterpart.
The exchange of an executed Agreement (in counterparts or otherwise) by facsimile or by electronic delivery in pdf format shall be sufficient
to bind the parties to the terms and conditions of this Agreement, as an original.

 

[SIGNATURE PAGE TO FOLLOW]

 

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IN WITNESS WHEREOF, the parties, each acting
under due and proper authority, have executed this Indemnification Agreement as of the date first mentioned above, in one or more counterparts.

 

	ParaZero Technologies Ltd.
	 	 
	By:	                      	 
	Name and title:	 	 

 

	Indemnitee:
	 	 
	Name:	 	 
	Signature:	 	 
	Address:	 	 

 

     

     

    

 

EXHIBIT A*

 

CATEGORY OF INDEMNIFIABLE EVENT 

 

		1.	Matters, events, occurrences or circumstances in connection or associated with employment relationships
with employees or consultants or any employee union or similar or comparable organization.

 

		2.	Matters, events, occurrences or circumstances in connection or associated with business relations of any
kind between the Company and its employees, independent contractors, customers, suppliers, partners, distributors, agents, resellers,
representatives, licensors, licensees, service providers and other business associates.

 

		3.	Negotiations, execution, delivery and performance of agreements of any kind or nature and any decisions
or deliberations relating to actions or omissions relating to the foregoing; any acts, omissions or circumstances that do or may constitute
or are alleged to constitute anti-competitive acts, acts of commercial wrongdoing, or failure to meet any standard of conduct which is
or may be applicable to such acts, omissions or circumstances.

 

		4.	Approval of and recommendation or information provided to shareholders with respect to any and all corporate
actions, including the approval of the acts of the Company’s management, their guidance and their supervision, matters relating
to the approval of transactions with Office Holders (including, without limitation, all compensation related matters) or shareholders,
including controlling persons and claims and allegations of failure to exercise business judgment, participation and/or non-participation
at Board meetings and/or voting and/or abstention from voting at Board meetings, reasonable level of proficiency, expertise, care or any
other applicable standard, with respect to the foregoing or otherwise with respect to the Company’s business, strategy, operations
and prospective outlook, and any discussions, deliberations, reviews or other preparatory or preliminary phases relating to any of the
foregoing.

 

		5.	Violation, infringement, misappropriation, dilution and other misuse of copyrights, patents, designs,
trade secrets, confidential information, proprietary information and any intellectual property rights, acts in connection with the registration,
assertion or protection of rights to intellectual property and the defense of claims related to intellectual property, breach of confidentiality
obligations, acts in regard of invasion of privacy or any violation of privacy or privacy related right or regulation, including with
respect to databases or handling, collection or use of private information, acts in connection with slander and defamation, and claims
in connection with publishing or providing any information, including any filings with any governmental authorities, whether or not required
under any applicable laws.

 

		6.	Violations of or failure to comply with corporate or securities laws, and any regulations or other rules
promulgated thereunder, of any jurisdiction, including without limitation, claims under the Israeli Companies Law, or claims under the
U.S. Securities Act of 1933 or the U.S. Exchange Act of 1934 or under the Israeli Securities Law, fraudulent disclosure claims, failure
to comply with any securities or corporate authority or any stock exchange disclosure or filing or other rules and any other claims relating
to relationships with investors, debt holders, shareholders, optionholders, holders of any other equity or debt instrument of the Company,
and otherwise with the investment community (including without limitation any such claims relating to a merger, acquisition, change in
control transaction, issuance of securities, restructuring, spin out, spin off, divestiture, recapitalization or any other transaction
relating to the corporate structure or organization of the Company); claims relating to or arising out of financing arrangements, any
breach of financial covenants or other obligations towards investors, lenders or debt holders, class actions, violations of laws requiring
the Company to obtain regulatory and governmental licenses, permits and authorizations in any jurisdiction, including in connection with
disclosure, offering or other transaction related documents; actions taken in connection with the issuance, purchase, holding or disposition
of any type of securities of Company, including, without limitation, the grant of options, warrants or other rights to purchase any of
the same or any offering of the Company’s securities (whether on behalf of the Company or on behalf of any holders of securities
of the Company) to private investors, underwriters, resellers or to the public, and listing of such securities, or the offer by the Company
to purchase securities from the public or from private investors or other holders, and any undertakings, representations, warranties and
other obligations related to any of the foregoing or to the Company’s status as a public company or as an issuer of securities.

 

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		7.	Liabilities arising in connection with any products or services developed, distributed, rendered, sold,
provided, licensed or marketed by the Company or any Affiliate thereof, and any actions or omissions in connection with the distribution,
provision, sale, marketing, license or use of such products or services, including without limitation in connection with professional
liability and product liability claims or regulatory or reputational matters.

 

		8.	The offering of securities by the Company (whether on behalf of itself or on behalf of any holder of securities
and any other person) to the public and/or to offerees or the offer by the Company to purchase securities from the public and/or from
private investors or other holders pursuant to a prospectus, offering documents, agreements, notices, reports, tenders and/or other processes.

 

		9.	Events, facts or circumstances in connection with change in ownership or in the structure of the Company,
its reorganization, dissolution, winding up, any other arrangements concerning creditors’ rights, merger, change in control, issuances
of securities, restructuring, spin out, spin off, divestiture, recapitalization or any other transaction relating to the corporate structure
or organization of the Company, and the approval of failure to approve of any corporate actions and any matters relating to corporate
governance, capital structure, articles of association or other charter or governance documents, appointment or dismissal of office holders
or compensation thereof and appointment or dismissal of auditors, internal auditor or any other person performing any services for the
Company.

 

		10.	Any claim or demand made in connection with any transaction not in the ordinary course of business of
the Company, as well as the sale, lease, purchase or acquisition of, or the receipt or grant of any rights with respect to, any assets
or business.

 

		11.	Any claim or demand made by any third party suffering any personal injury and/or bodily injury or damage
to business or personal property or any other type of damage through any act or omission attributed to the Company, or its employees,
agents or other persons acting or allegedly acting on its behalf, including, without limitation, failure to make proper safety arrangements
for the Company or its employees and liabilities arising from any accidental or continuous damage or harm to the Company’s employees,
its contractors, its guests and visitors as a result of an accidental or continuous event, or employment conditions, permanent or temporary,
in the Company’s offices.

 

		12.	Any claim or demand made directly or indirectly in connection with complete or partial failure, by the
Company or its directors, officers and employees, to pay, report, keep applicable records or otherwise, of any local or foreign federal,
state, county, municipal or city taxes or other taxes or compulsory payments of any nature whatsoever, including, without limitation,
income, sales, use, transfer, excise, value added, registration, severance, stamp, occupation, customs, duties, real property, personal
property, capital stock, social security, unemployment, disability, payroll or employee withholding or other withholding, including any
interest, penalty or addition thereto, whether disputed or not.

 

    A-2 

     

    

 

		13.	Any administrative, regulatory, judicial or civil actions orders, decrees, suits, demands, demand letters,
directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental entity or other person
alleging potential responsibility or liability (including potential responsibility or liability for costs of enforcement investigation,
cleanup, governmental response, removal or remediation, for natural resources damages, property damage, personal injuries or penalties
or for contribution, indemnification, cost recovery, compensation or injunctive relief) arising out of, based on or related to (a) the
presence of, release, spill, emission, leaning, dumping, pouring, deposit, disposal, discharge, leaching or migration into the environment
(each a “Release”) or threatened Release of, or exposure to, any hazardous, toxic, explosive or radioactive substances,
wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing material, polychlorinated biphenyls
(“PCBs”) or PCB-containing materials or equipment, radon gas, infectious or medical wastes and all other substances
or wastes of any nature regulated pursuant to any environmental law, at any location, whether or not owned, operated, leased or managed
by the Company or any of its subsidiaries, or (b) circumstances forming the basis of any violation of any environmental law or environmental
permit, license, registration or other authorization required under applicable environmental law.

 

		14.	Any administrative, regulatory or judicial actions, orders, decrees, suits, demands, demand letters, directives,
claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental or regulatory entity or authority
or any other person alleging the failure to comply with any statute, law, ordinance, rule, regulation, order or decree of any governmental
entity applicable to the Company or any of its businesses, assets or operations, or the terms and conditions of any operating certificate
or licensing agreement.

 

		15.	Participation and/or non-participation at Company Board meetings, expression of opinion or view and/or
voting and/or abstention from voting at Company Board meetings, including, in each case, any committee thereof, as well as expression
of opinion publicly in connection with the service as an Office Holder.

 

		16.	Review and approval of the Company’s financial statements and any specific items or matters within,
including any action, consent or approval related to or arising from the foregoing, including, without limitations, engagement of or execution
of certificates for the benefit of third parties related to the financial statements.

 

		17.	Violation of laws, rules or regulations requiring the Company to obtain regulatory and governmental licenses,
permits and authorizations (including without limitation relating to export, import, encryption, antitrust or competition authorities)
or laws related to any governmental grants in any jurisdiction.

 

		18.	Resolutions and/or actions relating to investments in the Company and/or its subsidiaries and/or affiliated
companies and/or investment in corporate or other entities and/or investments in other traded or non-traded securities and/or any other
form of investment.

 

		19.	Liabilities arising out of advertising, including misrepresentations regarding the Company’s products
or services and unlawful distribution of emails.

 

		20.	Management of the Company’s bank accounts, including money management, foreign currency deposits,
securities, loans and credit facilities, credit cards, bank guarantees, letters of credit, consultation agreements concerning investments
including with portfolio managers, hedging transactions, options, futures, and the like.

 

		21.	All actions, consents and approvals, including any prior discussions, reviews and deliberations, relating
to a distribution of dividends, in cash or otherwise, or to any other “distribution” as such term is defined under the Companies
Law.

 

    A-3 

     

    

 

		22.	Any claim or demand made in connection with any preparation or formulation of work plans, including pricing,
marketing, distribution, instructions to employees, customers and suppliers, and collaboration with competitors.

 

		23.	Any acts in regard of invasion of privacy.

 

		24.	Any administrative, regulatory, judicial, civil or criminal, actions orders, decrees, suits, demands,
demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance, violation or breaches alleging potential
responsibility, liability, loss or damage (including potential responsibility or liability for costs of enforcement, investigation, cleanup,
governmental response, removal or remediation, property damage or penalties, or for contribution, indemnification, cost recovery, compensation
or injunctive relief), whether alleged or claimed by customers, consumers, regulators, shareholders or others, arising out of, based on
or related to: (a) cyber security, cyber attacks, data loss or breaches, unauthorized access to information, data, or databases (including
but not limited to any personally identifiable information or private health information) and use or disclosure of information contained
therein, not preventing or detecting the breach or failing to otherwise disclose or respond to the breach; (b) circumstances forming the
basis of any violation of any law, permit, license, registration or other authorization required under applicable law governing data security,
data protection, network security, information systems, privacy or any cyber environment (including, users, networks, devices, software,
processes, information systems, databases, information in storage or transit, applications, services, and systems that can be connected
directly or indirectly to networks); (c) failure to implement a reporting system or control, or failure to monitor or oversee the operation
of such a system; (d) data destruction, extortion, theft, hacking, and denial of service attacks; losses or liabilities to others caused
by errors and omissions, failure to safeguard data or defamation; or (e) security-audit, post-incident public relations and investigative
expenses, criminal reward funds, data breach/privacy crisis management (including, management of an incident, investigation, remediation,
data subject notification, call management, credit checking for data subjects, legal costs, court attendance and regulatory fines), extortion
liability (including, losses due to a threat of extortion, professional fees related to dealing with the extortion), or network security
liability (including, losses as a result of denial of access, costs related to data on third-parties and costs related to the theft of
data on third-party systems).

 

The Limit Amount for all Indemnifiable
Persons during each relevant period referred to in Section ‎‎‎1.2 of the Indemnification Agreement for all events described
in this Exhibit A (in Sections 1-24 (inclusive) above), shall be the greater of:

 

		(a)	twenty-five percent (25%) of the Company’s total shareholders’ equity according to the Company’s
most recent financial statements as of the time of the actual payment of indemnification; and

 

		(b)	US$5 million.

 

The Limit Amount for all Indemnifiable
Persons in connection with or arising out of a public offering of the Company’s securities, shall not exceed, in any case, the aggregate
amount of proceeds from the sale by the Company and/or any shareholder of Company’s securities in such offering.

 

* Any reference in this Exhibit A
to the Company shall include the Company and any entity in which the Indemnitee serves in a Corporate Capacity.

 

 

A-4EMPLOYMENT AGREEMENT
Ira Fils
This EMPLOYMENT AGREEMENT (the “Agreement”) is dated as of June 16, 2022 and is entered into by and between El Pollo Loco, Inc. (the “Company”) and Ira Fils (the “Executive”).
WHEREAS, the Company desires to employ Executive as the Company’s Chief Financial Officer; and
WHEREAS, Executive is willing to accept such employment on the terms hereinafter set forth in this Agreement.
NOW, THEREFORE, in consideration of the promises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:
	1.	Term of Employment Executive Representation. 

		(a)	Employment Term.  Subject to the terms and conditions set forth in this Agreement, the term of Executive’s employment under this Agreement shall commence on June 27, 2022 (the “Effective Date”) and end on the 12th month anniversary of the Effective Date (the “Initial Employment Term”), and on such date and on each subsequent anniversary of such date, the term shall, without further action by Executive or Company, be extended by an additional one-year period (each such one year term, the “Renewal Employment Term”) subject to earlier termination as provided in this Agreement; provided, however, that either Company or Executive may, by written notice to the other given not less than 60 days prior to the scheduled expiration of the Initial Employment Term or Renewal Employment Term (a “Non-Renewal Notice”), as applicable, cause the term not to extend (the period during which Executive is employed under the terms of this Agreement, including the Initial Employment Term and all Renewal Employment Terms, is referred to herein as the “Employment Term”).  The Employment Term shall also terminate earlier upon termination of Executive’s employment as set forth in Section 6.

		(b)	Executive Representation.  Executive hereby represents to the Company that the execution and delivery of this Agreement by Executive and the Company and the performance by Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound.

	2.	Position.

		(a)	During the Employment Term, Executive shall serve as the Company’s Chief Financial Officer and shall principally perform Executive’s duties to the Company and its affiliates from the Company’s offices in the Orange County, California metropolitan area, subject to normal and customary travel requirements in the conduct of the Company’s business. Executive shall have such authorities, duties and responsibilities as the Chief Executive Officer may from time to time assign to Executive and reasonably consistent with those customarily performed by a Chief 

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			Financial Officer of a company having a similar size and nature of the Company, and the Executive shall report directly to the Chief Executive Officer.

		(b)	During the Employment Term, Executive will devote Executive’s full business time and best efforts to the performance of Executive’s duties hereunder and will not engage in any other business, profession or occupation (including in an advisory capacity, consulting capacity, or otherwise) for compensation or otherwise which would conflict with the rendition of such services either directly or indirectly, without the prior written consent of the Board of Directors of the Company (the “Board”).

	3.	Compensation.

		(a)	During the Employment Term, the Company shall pay Executive a base salary (the “Base Salary”) at the annual rate of $400,000 (less applicable withholding taxes), payable in regular installments in accordance with the Company’s usual payment practices.  Executive shall be entitled to such increases in Executive’s Base Salary, if any, as may be determined from time to time in the sole discretion of the Board.

		(b)	With respect to each full calendar year during the Employment Term, Executive shall be eligible to earn an annual bonus award (an “Annual Bonus”) based on the achievement of specified performance goals, which shall be determined by the Board in its sole discretion within ninety (90) days following the commencement of each calendar year, with a targeted bonus equal to seventy five percent (75%) of Executive’s then current Base Salary (the “Target Bonus”).  The Annual Bonus, if any, is typically paid between January 1 and March 15 of the year following the year to which it relates.

		(c)	Executive will receive an equity grant with an approximate value of $500,000 during the first open trading window after the Effective Date. In addition, at the discretion of the Board, during the Employment Term Executive will be eligible to receive an annual discretionary equity grant, with the amount and terms thereof determined by the Board.

	4.	Employee Benefits. During the Employment Term, Executive shall be provided, in accordance with the terms of the Company’s employee benefit plans as in effect from time to time, health insurance, retirement benefits and fringe benefits (collectively “Employee Benefits”) on the same basis as those benefits are generally made available to other senior executives of the Company.  Executive shall be provided with annual vacation of four (4) weeks per each twelve (12) month period and additional weeks on a basis consistent with Company policy.  During the Employment Term, the Company shall provide Executive with an automobile allowance substantially similar to the allowance provided by the Company to other similarly situated senior executives of the Company.

	5.	Business Expenses.  During the Employment Term, reasonable, documented business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies.

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	6.	Termination. The Employment Term and Executive’s employment hereunder may be terminated early by either party at any time and for any reason; provided that, unless the Company determines a shorter notice period in its sole discretion, Executive will be required to give the Company at least ninety (90) days advance written notice of any resignation of Executive’s employment.  Notwithstanding any other provision of this Agreement, the provisions of this Section 6 shall exclusively govern Executive’s rights upon termination of employment with the Company and its affiliates prior to expiration of the Employment Term.

		(a)	By the Company For Cause; By Executive’s Resignation without Good Reason or upon Non-Renewal of the Employment Term. 

		(i)	The Employment Term and Executive’s employment hereunder may be terminated by the Company for Cause (as defined below) or by Executive’s resignation without Good Reason (as defined below).

		(ii)	For purposes of this Agreement, “Cause” shall mean (a) action by the Executive that constitute acts of (1) fraud; (2) embezzlement; (3) gross insubordination; (4) gross misconduct; (5) material dishonesty which causes material harm to the Company; (b) the Executive’s inability, failure, or refusal to perform any duty, responsibility, or obligation of Executive’s position, which (to the extent such inability, failure, or refusal to perform is curable in the judgment of the Company) is not cured by the Executive within five (5) days after receiving written notice from the Company of such inability, failure, or refusal; (c) Executive’s commission of a felony; (d) Executive’s substance abuse or alcohol abuse which renders the Executive unfit to perform Executive’s duties; or (e) any breach of the covenants set forth in Section 7 of this Agreement by Executive; (6) any violation of the Company’s Policy Against Discrimination, Harassment and Retaliation; or (7) any violation of the Company’s Insider Trading Policy.  Any voluntary termination of employment by the Executive in anticipation of an involuntary termination of the Executive’s employment by the Company for Cause shall be deemed to be a termination for Cause.

		(iii)	If Executive’s employment is terminated by the Company for Cause, if Executive resigns without Good Reason or if the Employment Term expires as a result of the Company delivering to the Executive the Non-Renewal Notice or Executive delivering to the Company the Non-Renewal Notice (such event, the “Non-Renewal”), Executive shall be entitled to receive:

		(A)	the Base Salary through the date of termination;

		(B)	except in the case of termination for Cause, any Annual Bonus earned but unpaid as of the date of termination for any previously completed calendar year;

Page 3 of 17

		(C)	reimbursement for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s termination; and

		(D)	such Employee Benefits, if any, as to which Executive may be entitled under the employee benefit plans of the Company;

		(E)	any additional amounts or benefits due under any applicable plan, program, agreement or arrangement of the Company or its affiliates or pursuant to applicable law (the amounts described in clauses (A) through (E) hereof being referred to as the “Accrued Rights”).  The Accrued Rights under this Section 6 shall in all events be paid in accordance with the Company’s normal payroll procedures, expense reimbursement procedures or plan terms, as applicable.

Following such termination of Executive’s employment by Non-Renewal, the Company for Cause or resignation by Executive without Good Reason, except as set forth in this Section 6(a), Executive shall have no further rights to any contract damages, other compensation or any other benefits under this Agreement.
		(b)	Disability or Death. 

		(i)	The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s death or if Executive (A) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (B) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan, or disability plan, covering employees of the Company or an affiliate of the Company (such incapacity is hereinafter referred to as “Disability”).

Any question as to the existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company.  If Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing.  The determination of Disability made in writing to the Company and Executive shall be final and conclusive for all purposes of the Agreement.
		(ii)	Upon termination of Executive’s employment hereunder for either Disability or death, Executive or Executive’s estate (as the case may be) shall be entitled to receive:

		(A)	the Accrued Rights; and

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		(B)	the Annual Bonus, if any, that the Executive would have been entitled to receive pursuant to Section 3(b) hereof in respect of the year in which such termination occurs based upon the actual achievement of the performance goals, multiplied by a fraction the numerator of which is the number of days Executive is employed by the Company in such year and the denominator of which is the total number of days in such year, payable when such Annual Bonus would have otherwise been payable in accordance with Section 3(b) had the Executive’s employment not terminated (the “Pro-Rata Bonus”). 

Following Executive’s termination of employment due to death or Disability, except as set forth in this Section 6(b), Executive or Executive’s estate (as the case may be) shall have no further rights to any contract damages, other compensation or any other benefits under this Agreement.
		(c)	By the Company Without Cause or by Executive’s Resignation with Good Reason. 

		(i)	The Employment Term and Executive’s employment hereunder may be terminated by the Company without Cause or by Executive with Good Reason.

		(ii)	For purposes of this Agreement, “Good Reason” shall mean:

		(A)	Executive’s relocation, without Executive’s consent and other than for a temporary work assignment, by the Company outside Orange County, California;

		(B)	a material diminution of Executive’s authority, duties, title or responsibilities as set forth in Section 2(a) hereof;

		(C)	a reduction of Executive’s Base Salary (as increased from time to time) as set forth in Section 3(a) hereof;

		(D)	the material failure of the Company to provide or cause to be provided to Executive any of the Employee Benefits described in Section 4 hereof; or

		(E)	a requirement that Executive report to anyone other than the Chief Executive Officer or the Board; provided that none of the events described in clauses (A) through (E) of this Section 6(c)(ii) shall constitute Good Reason unless Executive shall have notified the Company in writing describing the event which constitutes Good Reason within thirty (30) days of the initial occurrence of such event and then only if the Company shall have failed to cure such event within thirty (30) days after the Company’s receipt of such written notice.

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		(iii)	If Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability), or by Executive with Good Reason, Executive shall be entitled to receive:

		(A)	the Accrued Rights;

		(B)	subject to Executive’s execution of a general release of claims in substantially the form attached hereto as Exhibit A (with any such changes so that the release is enforceable to the fullest extent permissible under then applicable law, the “Release”), the expiration of the applicable revocation period with respect to such Release within sixty (60) days following the date of Termination, and Executive’s continued compliance with the provisions of Section 7 and 8, the Pro-Rata Bonus;

		(C)	subject to Executive’s execution of a Release, the expiration of the applicable revocation period with respect to such Release within sixty (60) days following the date of termination, and Executive’s continued compliance with the provisions of Section 7 and 8, continued payment of the Base Salary in accordance with the Company’s normal payroll practices for a period of twelve (12) months following the date of such termination, which shall commence on the sixtieth (60th) day following such termination (with the first payment equal to the cumulative amount that would have been paid in such initial sixty (60) day period); and

Following Executive’s termination of employment by the Company without Cause (other than by reason of Executive’s death or Disability) or by Executive’s resignation with Good Reason, except as set forth in this Section 6(c), Executive shall have no further rights to any contract damages, other compensation or any other benefits under this Agreement or under any other plans, programs or arrangements of the Company or its affiliates.
		(d)	Notice of Termination.  Any purported termination of employment by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 11(g) hereof.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated.

	7.	Non-Interference/Non-Solicitation.  Executive acknowledges and recognizes that in the course of performing services for the Company, Executive will have access to certain confidential and proprietary information of the Company and its affiliates that is extremely valuable to the Company and its affiliates and is not known to the general public.  Accordingly, Executive agrees as follows:

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		(a)	Executive agrees that during the term of employment and until the first anniversary of the date of termination of Executive’s employment with the Company or any subsidiary of the Company, as the case may be (the “Restricted Period”), the Executive will not directly or indirectly, use any Company Confidential Information (as defined in Section 8) to interfere with business relationships (whether formed before or after the date of this Agreement) between the Company or any of its affiliates and customers, suppliers, partners, members or investors of the Company or its affiliates.

		(b)	Executive further agrees that during the Restricted Period, Executive will not, directly or indirectly, (i) solicit or encourage any employee of the Company or its affiliates to leave the employment of the Company or its affiliates, or (ii) solicit or encourage to cease to work with the Company or its affiliates any consultant then under contract with the Company or its affiliates; provided, however, that general advertising not directed specifically at employees of the Company or any affiliate shall not be deemed to violate this Section 7(b).

		(c)	It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this Section 7 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that any restriction contained in this Agreement is an unenforceable restriction against Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable.  Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

	8.	Confidentiality and Cooperation.  Executive will not at any time (whether during or after Executive’s employment with the Company) disclose or use for Executive’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company and any of its subsidiaries or affiliates, any trade secrets, information, data, or other confidential information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, manufacturing processes, financing methods, plans, or the business and affairs of the Company generally, or of any subsidiary or affiliate of the Company (“Company Confidential Information”); provided that the foregoing shall not apply to information which is not unique to the Company or which is generally known to the industry or the public other than as a result of Executive’s breach of this covenant; provided further that the foregoing shall not apply when Executive is required to divulge, disclose or make accessible such information by a court of competent jurisdiction or an individual duly appointed thereby, by any administrative body or legislative body (including a committee thereof) having supervisory authority over the business of the Company, or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order Executive to divulge, disclose or make accessible such information.  Executive 

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		agrees that upon termination of Executive’s employment with the Company for any reason, he will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Company and its affiliates and/or containing any Company Confidential Information, except that he may retain personal notes, notebooks and diaries that do not contain Company Confidential Information of the type described in the preceding sentence.  Executive further agrees that he will not retain or use for Executive’s account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of the Company or its affiliates.  Except to the extent that it could reasonably be expected to materially and unreasonably interfere with the Executive’s professional and personal responsibilities and commitments, upon reasonable notice from the Company to the Executive, Executive agrees to cooperate, both during and after the Employment Term, at the Company’s sole cost and expense (including reasonable, necessary and documented legal fees to the extent not otherwise paid by insurance), with respect to matters of which Executive has knowledge.

	9.	Defend Trade Secrets Act.

		(a)	Notwithstanding anything set forth in this Agreement to the contrary, Executive shall not be prohibited from reporting possible violations of federal or state law or regulation to any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of federal or state law or regulation, nor is Executive required to notify the Company regarding any such reporting, disclosure or cooperation with the government.

		(b)	Pursuant to Section 1833(b) of the Defend Trade Secrets Act of 2016, Executive acknowledges that he shall not have criminal or civil liability under any federal or State trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Nothing in this Agreement is intended to conflict with Section l833(b) of the Defend Trade Secrets Act of 2016 or create liability for disclosures of trade secrets that are expressly allowed by such section.

	10.	Specific Performance.  Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of Section 7 or Section 8 would be inadequate and, in recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company shall be entitled to cease making any payments or providing any benefit otherwise required by this Agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available.

11.Limitation on Benefits.

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(a)    Notwithstanding anything contained in this Agreement to the contrary, to the extent that the payments and benefits provided under this Agreement and benefits provided to, or for the benefit of, Executive under any other Company plan or agreement (such payments or benefits are collectively referred to as the “Benefits”) would be subject to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the Benefits shall be reduced (but not below zero) if and to the extent that a reduction in the Benefits would result in Executive retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the Excise Tax), than if the Executive received all of the Benefits (such reduced amount is referred to hereinafter as the “Limited Benefit Amount”). In order to effectuate the Limited Benefit Amount, the Company shall reduce or eliminate the Benefits by first reducing or eliminating amounts which are payable from any cash severance, then from any payment in respect of any equity award that is not covered by Treas. Reg. Section 1.280G-1 Q/A 24(b) or (c), then from any payment in respect of an equity award that is covered by Treas. Reg. Section 1.280G-1 Q/A 24(c), in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the Determination (as hereinafter defined).
(b)    A determination as to whether the Benefits shall be reduced to the Limited Benefit Amount pursuant to this Agreement and the amount of such Limited Benefit Amount shall be made by the Company’s independent public accountants or another certified public accounting firm or executive compensation consulting firm of national reputation designated by the Company (the “Firm”) at the Company’s expense. The Firm shall provide its determination (the “Determination”), together with detailed supporting calculations and documentation to the Company and Executive within ten (10) business days of the date of termination of the Executive’s employment, if applicable, or such other time as reasonably requested by the Company or Executive.
12.Miscellaneous.
		(a)	Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of laws principles thereof.

		(b)	Entire Agreement/Amendments.  This Agreement contains the entire understanding of the parties with respect to the employment of Executive by the Company.  There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein.  This Agreement supersedes any other agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof which have been made by either party.  This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.

		(c)	No Waiver.  The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights 

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			or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

		(d)	Severability.  In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

		(e)	Assignment.  This Agreement shall not be assignable by Executive.  This Agreement may be assigned by the Company to a company which is a successor in interest to substantially all of the business operations of the Company.  Such assignment shall become effective when the Company notifies the Executive of such assignment or at such later date as may be specified in such notice.  Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such successor company, provided that any assignee expressly assumes the obligations, rights and privileges of this Agreement.

		(f)	Successors Binding Agreement.  This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributes, devises and legatees.

		(g)	Notice.  For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

If to the Company:
El Pollo Loco, Inc.
3535 Harbor Boulevard, Suite 100
Costa Mesa, CA 92626
Attn: President and Chief Executive Officer
Attn: Chief Legal Officer
If to Executive:  To the most recent address of Executive set forth in the personnel records of the Company.
		(h)	Withholding Taxes.  The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

		(i)	Section 409A.  The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith.  Notwithstanding 

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			anything contained herein to the contrary, Executive shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Executive has incurred a “separation from service” from the Company within the meaning of Section 409A of the Code.  Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code.  Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following an Executive’s separation from service shall instead be paid on the first business day after the date that is six months following the Executive’s separation from service (or, if earlier, the Executive’s date of death).  To the extent required to avoid an accelerated or additional tax under Section 409A of the Code, amounts reimbursable to Executive under this Agreement shall be paid to Executive on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable or provided in any subsequent year.  The Company makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment.

		(j)	Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

[signature page follows]
​

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.
By: /s/​ ​
Name: Ira Fils
EL POLLO LOCO, INC.
By: /s/​ ​
Name: Laurance Roberts
Title: President & CEO
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​
​

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Exhibit A
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​
Form of Release
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1.             Release by the Executive.  [____________] (the “Executive”), on his or her own behalf and on behalf of his or her descendants, dependents, heirs, executors, administrators, assigns and successors, and each of them, hereby acknowledges full and complete satisfaction of and releases and discharges and covenants not to sue El Pollo Loco, Inc. (the “Company”), its divisions, subsidiaries, parents, or affiliated corporations, past and present, and each of them, as well as its and their assignees, successors, directors, officers, stockholders, partners, representatives, attorneys, agents or employees, past or present, or any of them (individually and collectively, “Releasees”), from and with respect to any and all claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected, arising out of or in any way connected with the Executive’s employment or any other relationship with or interest in the Company or the termination thereof, including without limiting the generality of the foregoing, any claim for severance pay, profit sharing, bonus or similar benefit, equity-based compensation, pension, retirement, life insurance, health or medical insurance or any other fringe benefit, or disability, or any other claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected resulting from any act or omission by or on the part of Releasees committed or omitted prior to the date of this General Release Agreement (this “Agreement”) set forth below, including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical Leave Act, or any other federal, state or local law, regulation or ordinance (collectively, the “Claims”); provided, however, that the foregoing release does not apply to any obligation of the Company to the Executive pursuant to any of the following: (1) Section 6 of the Employment Agreement dated as of [__________, 20__] by and between the Company and the Executive (the “Employment Agreement”); (2) any equity-based awards previously granted by the Company to the Executive, to the extent that such awards continue after the termination of the Executive’s employment with the Company in accordance with the applicable terms of such awards; (3) any right to indemnification that the Executive may have pursuant to the Company’s bylaws, its corporate charter or under any written indemnification agreement with the Company (or any corresponding provision of any subsidiary or affiliate of the Company) with respect to any loss, damages or expenses (including but not limited to attorneys’ fees to the extent otherwise provided) that the Executive may in the future incur with respect to his or her service as an employee, officer or director of the Company or any of its subsidiaries or affiliates; (4) with respect to any rights that the Executive may have to insurance coverage for such losses, damages or expenses under any Company (or subsidiary or affiliate) directors and officers liability insurance policy; (5) any rights to continued medical and dental coverage that the Executive may have under COBRA; (6) any rights to payment of benefits that the Executive may have under a retirement plan sponsored or maintained by the Company that is intended to qualify under Section 401(a) of the Internal Revenue Code of 1986, as amended; or (7) any rights to accrued benefits under the Company’s employee benefits plans.  In addition, this release does not cover any Claim that cannot be so released as a matter of applicable law.  The Executive acknowledges and agrees that he or she has received any and all leave and other benefits that he or she has been and is entitled to pursuant to the Family and Medical Leave Act of 1993.

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​
 2.             Acknowledgement of Payment of Wages.  Except for accrued vacation (which the parties agree totals approximately [__] days of pay) and salary for the current pay period, the Executive acknowledges that he or she has received all amounts owed for his or her regular and usual salary, and usual benefits through the date of this Agreement.
​
3.             Waiver of Civil Code Section 1542.  This Agreement is intended to be effective as a general release of and bar to each and every Claim hereinabove specified.  Accordingly, the Executive hereby expressly waives any rights and benefits conferred by Section 1542 of the California Civil Code and any similar provision of any other applicable state law as to the Claims.  Section 1542 of the California Civil Code provides:
​
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
​
The Executive acknowledges that he or she later may discover claims, demands, causes of action or facts in addition to or different from those which the Executive now knows or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially affected its terms.  Nevertheless, the Executive hereby waives, as to the Claims, any claims, demands, and causes of action that might arise as a result of such different or additional claims, demands, causes of action or facts.
​
4.             ADEA Waiver.  The Executive expressly acknowledges and agrees that by entering into this Agreement, he or she is waiving any and all rights or claims that he or she may have arising under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), which have arisen on or before the date of execution of this Agreement.  The Executive further expressly acknowledges and agrees that:
​
(a)           He or she is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement;
​
(b)           He or she was given a copy of this Agreement on [____________] and informed that he or she had twenty-one (21) days within which to consider this Agreement and that if he or she wished to execute this Agreement prior to expiration of such 21-day period, he or she should execute the Acknowledgement and Waiver attached hereto as Exhibit A-1;
​
(c)           Nothing in this Agreement prevents or precludes the Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law; and
​
(d)           He or she was informed that he or she has seven (7) days following the date of execution of this Agreement in which to revoke this Agreement, and this Agreement will become 

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null and void if the Executive elects revocation during that time.  Any revocation must be in writing, addressed to the Company’s Chief Executive Officer and delivered in accordance with the notice provisions of the Employment Agreement, and must be received by the Company during the seven-day revocation period.  In the event that the Executive exercises his or her right of revocation, neither the Company nor the Executive will have any obligations under this Agreement.
​
5.             No Transferred Claims.  The Executive represents and warrants to the Company that he or she has not heretofore assigned or transferred to any person not a party to this Agreement any released matter or any part or portion thereof.
​
6.             Miscellaneous.  The following provisions shall apply for purposes of this Agreement:
​
(a)           Number and Gender. Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender shall include all other genders.
​
(b)           Section Headings. The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.
​
(c)           Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to any choice of law or conflicting provision or rule (whether of the State of California or any other jurisdiction) that would cause the laws of any jurisdiction other than the State of California to be applied.  In furtherance of the foregoing, the internal law of the State of California will control the interpretation and construction of this agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.
​
(d)           Severability. It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable under any present or future law, and if the rights and obligations of any party under this Agreement will not be materially and adversely affected thereby, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable; furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.  Notwithstanding the foregoing, if such provision could be more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
​

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(e)           Modifications. This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.
​
(f)           Waiver.  Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.
​
(g) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.  Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.
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[Remainder of page intentionally left blank]
​
  
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The undersigned have read and understand the consequences of this Agreement and voluntarily sign it.  The undersigned declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
​
EXECUTED this ________ day of ________ 20___, at ______________________ County, __________.
​
	  
	“EXECUTIVE”
	 

	  
	  
	 

	  
	  
	 

	  
	  
	 

	  
	[___________]
	 

​
​
EXECUTED this ________ day of ________ 20___, at ______________________ County, __________.
​
​
	  
	“COMPANY”

	  
	  
	 

	  
	EL POLLO LOCO, INC.

	  
	  
	 

	  
	By:
	 

	  
	 
	[Name]

	  
	 
	[Title]

​

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