Document:

exv10w10

 

Exhibit 10.10

Panera Bread Company and its Affiliates

Standards of Business Conduct

 

 

Panera Bread Company and its Affiliates

Standards of Business Conduct

Dear Fellow Associate:

Panera Bread Company and its affiliates (collectively referred to as “Panera,” “Panera Bread
Company,” “the Company,” “we,” “us,” or “ours”) are a leader in the emerging specialty bread/cafe
category due to their unique bread combined with a quick, casual dining experience. From the
beginning, we have recognized you, our associates, are critical to our continued success. The
Company’s reputation for the finest specialty bread and cafe experience, superior customer service,
and the highest integrity is the result of our collective efforts. We are all caretakers of the
Company’s reputation. How we conduct our business and how we treat others will continue to
determine how the public views us.

As Panera Bread Company grows, each of us is personally responsible to support the Company’s core
values and guiding principles. We have issued these Standards of Business Conduct (or “Standards”)
to restate Panera Bread Company’s longstanding commitment to follow the law and to act ethically.
The Company believes all business conduct must adhere strictly to the highest standards of
integrity and propriety. All Panera associates are required to comply with the laws, rules, and
regulations that apply to Panera’s business. We and the Board of Directors expect all Panera
employees, officers, and Board members (whom we refer to collectively in these Standards as
“associates”), to use sound business judgment, to adhere to the highest ethical and moral
standards, and to avoid conflicts of interest.

Every associate is expected to adhere to these standards. All associates have a personal
responsibility to comply with the Company’s policies, ask questions if they have doubts about the
ethical or legal implications of any situation or proposed course of action, and report any
concerns they may have about any business practice that may violate the law or the Company’s
policies.

Any associate

	 Ø	 	Who observes or knows of violations of the Company’s policies,
	 
	 Ø	 	Has a question about the legality of an action, or
	 
	 Ø	 	Has a question as to whether an existing or potential conflict of interest exists,

should discuss the matter with Mark Hood at 314-633-7255 or Neal Yanofsky at 314-633-7364 or
contact the Ethics Hotline at 1-888-840-4151. No associate will suffer reprimand or retaliation in
any form for reporting concerns in good faith.

We ask each associate to comply with the Company’s policies and to follow the highest standards of
business integrity.

	 	 	 
	Ronald M. Shaich

	 	Neal J. Yanofsky
	Chairman and Chief Executive Officer

	 	Executive Vice President,
	 

	 	Chief Administrative Officer
	 
	 	 
	Mark E. Hood
	 	 
	Senior Vice President, Chief Financial Officer

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Panera Bread Company and its Affiliates

Standards of Business Conduct

Table of Contents

	 	 	 	 	 
	 	 	 	Page No.
	Why We Have Standards of Business Conduct
	 	 	4	 
	 
	 	 	 	 
	Conflict of Interest Policy
	 	 	5	 
	 
	 	 	 	 
	Confidential Information Policy
	 	 	9	 
	 
	 	 	 	 
	Accounting and Payment Practices Policy
	 	 	11	 
	 
	 	 	 	 
	Reporting A Violation, Investigation, and Remediation
	 	 	14	 
	 
	 	 	 	 
	Implementation and Ongoing Communication
	 	 	15	 

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Panera Bread Company and its Affiliates

Standards of Business Conduct

WHY WE HAVE STANDARDS OF BUSINESS CONDUCT

Panera Bread Company’s reputation for integrity flows from our steadfast commitment to the
Company’s core values and guiding principles — values and principles which require compliance with
the law and these Standards. The Company depends on its associates to follow the law and make the
right decisions. The Company’s Standards provide practical overviews of some of the legal and
ethical standards we all must follow on a daily basis. The Audit Committee is responsible for
maintaining, implementing, and enforcing these Standards.

We Value Your Input

Please review these Standards carefully. If there is anything in these Standards you do not
understand or if you think something important is not covered, please let Mark Hood or Neal
Yanofsky know.

Asking For Guidance and Voicing Concerns

The Company recognizes no single document, including these Standards, can give you an answer for
every situation or dilemma that you may face. However, the Standards do point you to additional
resources that may be useful. If your own judgment and the Standards do not provide the answer,
please contact Mark Hood or Neal Yanofsky.

As another avenue to assist you, Panera Bread Company has established a toll-free Ethics Hotline,
which you may use to ask questions or report concerns, without giving your name if you prefer. If
you have a concern, you may call the Ethics Hotline 24 hours a day, 7 days a week at
1-888-840-4151. Your concern will be taken seriously.

If you are uncertain about something you intend to do while conducting Panera Bread Company
business, you should seek advice before acting. We are also counting on you to let us know if you
see or learn something that suggests the Standards or the law have been violated.

No one will be reprimanded or retaliated against for raising a question or voicing a concern in
good faith.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

CONFLICT OF INTEREST POLICY

Any direct or indirect conflict of interest between an associate and the Company is
prohibited, unless specifically consented to by the Company, in advance. The Board of Directors
must consent to any conflict of interest or waiver of these Standards involving any officer or
director. Other employees may seek consent from Mark Hood or Neal Yanofsky.

An associate has a conflict of interest if, in the course of employment or Board service, the
associate’s judgment and discretion is or may be influenced by considerations of personal gain or
benefit, or gain or benefit to a third party. All business decisions for Panera should reflect the
independent judgment and discretion of Panera’s associates, uninfluenced by any considerations
other than what is honestly believed to be in the best interest of the Company and its
stockholders. The divided loyalty that is present when an associate has a conflict of interest
could potentially lead to serious problems for the associate and for Panera.

Panera respects the privacy of its associates and their rights to conduct their personal affairs
without interference. However, if an associate’s personal affairs create a conflict of interest, a
potential conflict of interest, or the appearance of a conflict of interest, Panera must insist on
a full and timely disclosure of the facts. In many cases such a disclosure will permit Panera and
the associate to avoid any problems. If the facts are disclosed and if there is no illegal or
unethical conduct involved, the Company could consent to the proposed activity even though a
technical or nominal conflict of interest may exist.

It is not possible to formulate in advance an all-inclusive set of guidelines regarding potential
conflicts of interest. The illustrations below provide guidelines for certain types of situations.
Specific questions regarding situations not clearly covered by this policy will be answered on a
case-by-case basis as they arise.

Illustrations of Potential Conflicts of Interest

Relationships with Suppliers, Customers, or Competitors

An associate should not own a substantial stock or other financial interest in or participate in
the business of, or serve as a director, employee, or consultant to:

	 Ø	 	Anyone having or seeking business with the Company, including actual or potential resources, or
	 
	 Ø	 	A competitor of the Company.

The question of what constitutes a “substantial” stock or other financial interest will depend on
the particular facts and circumstances in any given case. For example, an associate should not
purchase stock on terms that are not generally available to the public from anyone having or
seeking business with the Company or with a competitor of the Company.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

Indirect Interest and Relationships

A conflict of interest may arise because of the business activities of an associate’s close relatives.
An associate may have a potential conflict of interest when a close relative has a significant
interest in a transaction or a significant relationship with a competitor or resource. Such an
associate should not make or influence any decision of the Company that could directly or
indirectly benefit his or her close relative and, in order to protect the associate and the Company
from the appearance of a conflict of interest, he or she should make appropriate disclosures to the
Company.

Gifts, Loans and Entertainment

An associate should not knowingly:

	 Ø	 	Accept gifts, including cash, merchandise, trips, or other valuable items, from a competitor or
from anyone having or seeking business with the Company, other than non-cash gifts of
nominal value.
	 
	 Ø	 	Accept loans from any persons or entities having or seeking business with the Company (a
loan from a financial institution at market interest rates prevailing at the time of borrowing is,
however, permissible), or
	 
	 Ø	 	Purchase a significant amount for resale from the Company or the Company’s vendors.

Participating in business-related functions, including the acceptance of meals with a supplier,
customer, or competitor on occasion, is a normal and permissible business practice. However,
each associate should exercise care to insure such functions are appropriate and that their value
and frequency are not excessive under the circumstances.

Outside Business Activities

Active participation on a part-time or freelance basis in any outside business, whether or not such
a business is a resource, competitor or non-retail customer, would also be a conflict if:

	 Ø	 	The associate’s participation in that business interferes with his or her ability to devote
proper time and attention to his or her employment by the Company, or
	 
	 Ø	 	It constitutes a drain away from the Company of his or her talents and creative energy.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

Nonbusiness Activities

Participation in the activities of a trade association, professional society, charitable
institution or governmental institution on a non-compensated basis or holding a part-time public
office (with or without compensation) will not generally create a conflict in violation of this
policy. However, if such participation involves a substantial commitment of time, or if it involves
an organization that conducts business with the Company, Mark Hood or Neal Yanofsky should be
consulted.

Personal Use of Corporate Property or Corporate Information

An associate should not:

	 Ø	 	Use or divert any corporate property, including the services of other associates, for
his or her own advantage or benefit,
	 
	 Ø	 	Use corporate letterhead paper when writing letters on
personal or other matters not directly related to the Company’s business, because that practice
uses the Company’s name and could expose the Company to potential liability for activities beyond
the scope of his or her employment, or
	 
	 Ø	 	Make misrepresentations with respect to the capacity
in which he or she represents the Company.

Insider Trading

One special aspect of dealing with corporate information is the potential use or misuse of
“material inside information.” Material inside information means facts that have not been disclosed
to the public that could influence a reasonable investor’s decision to buy or sell the Company’s
stock or other securities. Information is nonpublic if it has not been disseminated in a manner
making it available to investors generally. Examples of facts that could involve material inside
information (until appropriate public disclosure has been made by the Company) include a change in
dividend policy, a stock split, a merger, an acquisition, disposition or consolidation, changes in
directors or senior executive officers, changes in control, sales and earnings information, or
financial performance that is not generally expected or available on the basis of publicly known
factors.

You may become aware of material inside information about Panera or about another company in the
performance of your job. If so, you must hold that information in confidence and refrain from
buying or selling (or influencing others to buy or sell) any stock or other securities of Panera or
of the other company until the information is public. Buying or selling securities before the
information is publicly disclosed is deemed to be “insider trading” unless the transaction is made
pursuant to a binding contract, specific instruction or written plan you put in place before you
became aware of the inside information. Disclosing the information to other persons could be
“tipping”. Either of these actions could result in both civil and criminal liability for you, the
party receiving the information, and the Company.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

Do not intentionally disclose material inside information to outsiders, under any
circumstances, whether at meetings held as part of the business day, at informal after-hours
discussions, or to friends or relatives. Also, do take precautions to prevent the disclosure of
material inside information to others.

Associate Responsibilities

Each associate is charged with the responsibility for recognizing a situation in which a conflict
of interest is present or might arise and for taking appropriate action to eliminate or prevent
such conflict. Each associate must also avoid situations which might reasonably appear to be in
conflict with the best interest of Panera and Panera’s stockholders.

Who to Contact with Questions or Concerns

Any associate who has a question as to conflicts of interest, or whether Panera should consent to
any actual or potential conflict, should promptly contact Mark Hood or Neal Yanofsky.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

CONFIDENTIAL INFORMATION POLICY

Unauthorized disclosure or use of Company confidential information is prohibited both during
and after employment. Information that is provided to associates, or as to which associates become
aware, and information to which associates have access is only for use in performing job
responsibilities. Associates may not share confidential information outside of the Company or use
this information in any unauthorized way, including the actual reports themselves, copies of the
reports, any form of written summary of any kind, verbal disclosures or pictures.

Confidential Information

Confidential information includes, among other things, technologies, recipes, formulas, processes,
designs, business and financial data, marketing plans, and existing and future product information.
All information pertaining to the Company’s business is confidential, proprietary and a protectable
trade secret of Panera, except to the extent the Company has made any such information public
through a press release or publicly filed report.

Associate Responsibilities

Confidential information should be treated as secret and not disclosed or used for unauthorized
purposes, including, among other things, stored in a secure place, marked as confidential, and
shredded when no longer needed. Confidential information should not, among other things, be left
out where others can see it, sent to unattended fax machines or printers, or discussed where other
may hear.

Each associate should exercise care to reduce the likelihood of unauthorized disclosures or use of
confidential information. Associates should guard against even seemingly innocent or inadvertent
disclosures to spouses, friends, and business associates.

Associates should properly safeguard documents at all times. For example, after a meeting, whether
on or off Company premises, associates should not leave any written materials behind.

No associate should attempt to obtain confidential information that does not relate to his or her
employment duties. Associates should treat all confidential information as confidential while they
are employed and after their employment at Panera.

Company Records

Company policy is to retain its records only for as long as the records are being actively used,
unless the law or business needs require longer retention. This policy applies to records
maintained in all forms at the Company, including records kept in written and electronic form.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

Associates should not knowingly destroy or discard evidence. Records relevant to a legal
action, investigation, audit, or other special circumstance should not be destroyed or discarded
without the approval of the Company’s general counsel. If the Company receives a subpoena, a
request for records, or other legal papers, or if we have reason to believe that such a request or
demand is likely, the Company will instruct you to retain all records which are relevant to the
matter and you should comply with such instructions. If you receive a request for information or
other legal papers, you should notify the Company’s general counsel promptly.

Who to Contact with Questions or Concerns

Any associate who has a question as to whether an existing or potential issue exists related to
confidential information should promptly contact Mark Hood or Neal Yanofsky.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

ACCOUNTING AND PAYMENT PRACTICES POLICY

Use of Company funds or other Company property for illegal, fraudulent, unethical, or
otherwise improper purposes is prohibited.

Types of Improper Accounting or Payments

Some examples of improper practices include:

	 Ø	 	Capitalizing costs that should be expensed,
	 
	 Ø	 	Recording expenses or income in the wrong period,
	 
	 Ø	 	Recording credits or charges that are not appropriately documented or approved,
	 
	 Ø	 	Misleading, or otherwise less-than-clear, financial disclosures,
	 
	 Ø	 	Disregarding the requirements of Company policies relating to financial reporting
	 
	 Ø	 	Bribery of public officials, including officials of foreign countries, and
	 
	 Ø	 	Creation or use of so-called “slush funds” (secret accounts of money diverted from
corporate accounts or collected from corporate personnel which are used for political
contributions, bribes or other improper or questionable purposes).

In many cases, the legal consequences for companies and individuals who have engaged in these
practices have been extremely serious. Some have faced federal criminal prosecution, while others
have been subjected to expensive, time-consuming civil actions brought by various governmental
agencies and private parties.

This policy is intended to make absolutely clear that all such practices and all similar practices,
whether legal or illegal, are prohibited.

The rules set forth below are not intended to be all-inclusive, but address areas of particular
concern by way of example.

Accounting Practices

Panera requires full, fair, accurate, timely, and understandable recording and reporting of
information. No undisclosed or unrecorded account or fund shall be established for any reason. No
false or misleading entries shall be made in Panera’s books or records for any reason. No
disbursement of corporate funds or other corporate property shall be made without supporting
documentation or for any purpose other than as authorized. All transactions must be fully and
completely documented and recorded in Panera’s books and records. All associates shall comply with
accounting principles generally accepted in the United States and Panera’s internal controls at all
times.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

Political Contributions

No Company funds or other Company property shall be used for political campaign contributions of
any kind, whether within or without the United States.

Political activities must be conducted on your own time and using your own resources. The law does
not permit the Company to compensate or reimburse associates for political contributions.

Payments to Government Personnel

Direct or indirect payments or gifts to government personnel from either Panera’s or private funds
in furtherance of Panera business are prohibited, whether or not it is accepted practice in that
country.

Foreign Representatives, Agents, and Consultants

Commission or fee arrangements shall be made only with firms or persons serving as bona fide
commercial representatives, agents, or consultants. Such arrangements may not be entered into with
any firm in which a government official or associate to the Company is known to have an interest
unless the arrangement is permitted by applicable law and has been specifically approved by Mark
Hood or Neal Yanofsky. All material commission and fee arrangements shall be by written contract.
Any commission or fee must be reasonable and consistent with normal practice for the industry, the
merchandise involved, and the services to be rendered. Payments shall not be made in cash.

Associate Responsibilities

An associate may not take any action or authorize any action that involves any illegal, unethical,
or otherwise improper payment of money or anything else of value. An associate having information
or knowledge of any unrecorded account or fund, of any false or misleading entry in Panera’s books
or records, or other violation of Panera’s accounting and payment practices policy should promptly
report the matter to Mark Hood or Neal Yanofsky.

Antitrust and Fair Competition

The antitrust laws of the United States are intended to promote vigorous competition in a free
market. It is in Panera Bread Company’s best interest to promote free and open competition. Panera
Bread Company must make its own business decisions, free from understandings or agreements with
competitors that restrict competition. While it is beyond the scope of this policy to explain the
antitrust laws in detail, Panera Bread Company considers compliance with these laws of vital
importance. When in doubt about compliance with the antitrust laws, associates must seek the advice
of the Company’s general counsel.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

Interaction with the Government and Service of Legal Documents

Panera Bread Company values its excellent relations with local, state, and federal governments and
authorities. Panera Bread Company is committed to being a “good corporate citizen” and is proud of
its record of service to the community.

Panera Bread Company values the communities where we do business. From time to time, associates
may interact with local government officials and authorities. For example, a Panera Bread Company
bakery-cafe may require a local permit or approval or a local health official may inspect a store.
Panera Bread Company is committed to complying with applicable local laws, regulations and codes
and to working fairly and honestly with local officials and authorities in our communities. In
doing so, your actions must meet high ethical and legal standards. It is against Panera Bread
Company’s policy (and may violate the law) to offer or make a payment or gift of any kind in order
to facilitate a local process or to influence a local government official or authority.

A representative of the government may seek to interview you regarding Panera Bread Company’s
business activities or your work at the Company. In such event, you and Panera Bread Company have
the right to be represented by counsel. If you are contacted by a government agent or
representative and asked to provide information, you should contact the Company’s general counsel.

Panera Bread Company’s policy is to deal honestly and fairly with government representatives and
agents and to comply with valid governmental requests and processes. Associates must be truthful
and straightforward in their dealings with the government and should not direct or encourage others
to provide false or misleading information to any government agent or representative.

From time to time, government agents or representatives may seek to inspect Panera Bread Company’s
bakery-cafes, fresh dough, or other facilities. If an inspector appears at your bakery-cafe, fresh
dough, or other facility, promptly notify your manager.

If someone arrives unexpectedly at a bakery-cafe or other facility and attempts to serve legal
papers, promptly notify your manager. Make sure all legal documents you receive are forwarded
promptly to the Company’s general counsel.

If you need further information regarding this policy, please contact the Company’s general counsel
or use the Ethics Hotline.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

REPORTING A VIOLATION, INVESTIGATION, AND REMEDIATION

A violation of the policies described in these Standards harms Panera and anyone with an
economic interest in Panera, including stockholders and associates. A violation may also expose the
associate and the Company to civil and/or criminal liability. Associates violating these policies
are subject to disciplinary action, which may include termination. In addition, certain statutes
require Panera’s Audit Committee to establish procedures for the receipt, retention, and treatment
of complaints regarding accounting, internal accounting controls, or auditing matters; and the
confidential, anonymous submission by associates of concerns regarding questionable accounting or
auditing matters.

Taking action to prevent problems is part of the Panera culture. Each associate who knows of, or
reasonably believes there is, a violation or possible violation of applicable laws or any of these
Standards, should promptly report that information to Mark Hood or Neal Yanofsky. Alternatively, an
associate may report the information either by name or anonymously by telephone to Ethics Hotline
at 1-888-840-4151.

It is Company policy to promptly investigate each complaint alleging the violation of a law or
these Standards and to effectively remedy the situation when a violation has occurred. Every
manager is responsible for assisting Panera in implementing these policies, and every associate is
expected to adhere to these Standards and applicable law both in practice and in spirit. It is all
of our responsibility to ensure each of us is committed and dedicated to these Standards. No
associate will suffer reprimand or retaliation in any way for reporting concerns in good faith.
Panera will take corrective action and/or disciplinary action against anyone who retaliates,
directly or indirectly, against an associate who reports a suspected violation of these Standards
or the law.

Employees who make an anonymous report will be given a case number. This case number effectively
shields the employee’s identity from management while providing the employee with the ability to
call back to check on the status of the report or to provide additional information.

On receipt, the call will be reviewed and one of the following actions will be taken:

	 	•	 	If the call relates to an accounting, internal accounting control or auditing matter
and appears to be significant, the call report will be forwarded to the Chair of the Audit
Committee (and other committee members if deemed necessary by the Chair) who will approve
the investigation plan.
	 
	 	•	 	If the call relates to an accounting, internal accounting control or auditing matter
and does not appear to be significant, an investigation will be conducted by Mark Hood or
Neal Yanofsky and other resources as may be appropriate. If at any time the significance
of the item changes, the investigation may be halted pending review with the Chair of the
Audit Committee.

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Panera Bread Company and its Affiliates

Standards of Business Conduct

IMPLEMENTATION AND ONGOING COMMUNICATION

Panera Bread Company takes seriously reports of possible violations of these Standards, the
law, or the Company’s other policies. As appropriate, we will investigate and take action,
including steps to prevent recurring problems.

Panera Bread Company’s Standards require all associates to follow the law and to act honestly and
ethically in conducting the Company’s business. We are, of course, each responsible for our own
conduct. No one has the authority to approve illegal acts, and an illegal act cannot be justified
because a superior “ordered it.” Panera Bread Company’s Standards do not permit an associate to
direct or encourage another associate to violate the law or to otherwise act improperly. If you are
ever faced with this situation, contact Mark Hood or Neal Yanofsky or call the Ethics Hotline.
Choose whatever reporting method you like, but please let us know.

Failure to comply with the law and these Standards can have severe consequences for the Company and
the associates involved. Any associate who fails to meet these Standards or the law will be subject
to discipline, which may include dismissal. Discipline also may be imposed if an associate fails to
report violations of the Standards or the law, if an associate retaliates against another associate
for reporting a violation or cooperating in an investigation, if an associate lies in making a
report or in an investigation, if an associate directs or encourages improper or illegal conduct,
or if the circumstances otherwise reflect inadequate behavior.

This is a serious matter. Actions that violate these Standards may also violate federal, state, or
local laws. Such violations can subject the individuals involved to prosecution, imprisonment and
fines. The Company may also be subject to prosecution and fines for associates’ improper conduct.

It is your personal responsibility to ensure you know, understand, and are compliant with these
Standards.

The Company believes a commitment to integrity, acting honestly and ethically, and complying with
the letter and spirit of the law are critical to Panera’s continued success. We are counting on
each associate to do his or her part. Remember, please, do the right thing.

15exv10w11

 

Exhibit
10.11

PANERA BREAD COMPANY

STATEMENT OF COMPANY POLICY

Securities Trades By Company Personnel

November 9, 2000, as amended and restated September 1, 2005

     PANERA BREAD COMPANY (“Panera Bread” or the “Company”) hereby adopts this Policy Statement,
which shall apply to all personnel of the Company and its subsidiaries.

The Need For A Policy Statement

     This Policy Statement has been developed to:

	 	•	 	Educate all employees and directors of Panera Bread;
	 
	 	•	 	Set forth guidelines for courses of action;
	 
	 	•	 	Protect the Company and all of its personnel against legal liability; and
	 
	 	•	 	Preserve the reputation of Panera Bread and its personnel for integrity and ethical conduct.

     As a result of being a publicly owned corporation, transactions in the Company’s securities
are subject to the securities laws of the United States, including, the Securities Act of 1933, the
Securities Exchange Act of 1934, the Insider Trading and Securities Fraud Enforcement Act, the
Sarbanes-Oxley Act of 2002 and the regulations adopted by the United States Securities and Exchange
Commission (the “SEC”). These laws and regulations make it illegal for an individual to buy or
sell securities of Panera Bread while in the possession of material, non-public information,
otherwise known as “inside information.” The SEC takes insider trading very seriously and devotes
significant resources to uncovering the activity and to prosecuting offenders. Liability may
extend not only to the individuals who trade on “inside information,” but also to individuals who
communicate the inside information to them (their “tippers”). Panera Bread and “controlling
persons” of the Company may also be liable for violations by Company personnel.

In addition to responding to the statutes and regulations, we are adopting this Policy Statement to
avoid even the appearance of improper conduct on the part of anyone employed by or associated with
our Company (not just so-called insiders). We have all worked hard over the years to establish our
reputation for integrity and ethical conduct. We cannot afford to have it damaged. Accordingly, it
is critical that each member of the Board of Directors and each employee and other persons with
access to inside information (“insiders”) review, understand and agree to comply with the terms of
this Policy Statement.

The Consequences

     The consequences of insider trading violations can be severe. Individuals who trade on inside
information (or tip information to others) will be subject to:

	 	•	 	A civil penalty of up to three times the profit gained or loss avoided;
	 
	 	•	 	A criminal fine (no matter how small the profit) of up to $5 million;
	 
	 	•	 	A jail term of up to twenty years; and

 

 

	 	•	 	A cease and desist order to stop the violation and penalties for
violations of such orders or the federal securities laws.

     These penalties can apply even if the individual is not a member of the Board of Directors or
the Senior Management, as defined below, of Panera Bread.

     A company (as well as possibly any supervisory person) that fails to take appropriate steps to
prevent illegal trading will be subject to penalties:

	 	•	 	A civil penalty of the greater of $1 million or three times the profit gained or
loss avoided as a result of the employee’s violation; and
	 
	 	•	 	A criminal penalty of up to $25 million.

     Moreover, if an employee violates our insider trading policy or our procedures,
Company-imposed sanctions, including dismissal for cause, could result. Needless to say, any of
the above consequences, even an SEC investigation that does not result in prosecution, can tarnish
one’s reputation and irreparably damage a career.

Our Policy

     If any member of the Board of Directors of the Company or any member of the Senior
Management of the Company and its subsidiaries, as defined below, or any other employee of Panera
Bread or its subsidiaries is in possession or aware of material non-public information relating to
the Company or its subsidiaries, it is Panera Bread’s policy that neither that person nor any
related person may trade in Company securities or engage in any other action to take advantage of,
or pass on to others, that information.

     This policy also applies with equal force to information relating to all other publicly owned
companies, including our customers or suppliers who are publicly owned, and their securities,
obtained by a member of the Board of Directors, a member of Senior Management or another employee
during the course of his or her service to or employment by Panera Bread. Thus, the term “Company
securities” as used in this policy can also mean securities of those other companies.

     The following members of management of Panera Bread and its subsidiaries constitute the
“Senior Management” of the Company:

     Senior Management of Panera Bread and its Subsidiaries

	 	 	 
	 

	 	Chief Executive Officer
	 

	 	Executive, Senior and other Vice Presidents
	 

	 	Director Level Employees

     Transactions that may be necessary or justifiable for independent reasons (such as the need to
raise money for an emergency expenditure) are no exception. Even the appearance of an improper
transaction must be avoided to preserve our reputation for adhering to the highest standards of
conduct.

2

 

     Material Information. Material information generally is defined as any information
for which there is a substantial likelihood that a reasonable investor would consider the
information important in a decision to buy, hold or sell securities. In short, material
information is any information that could reasonably affect the price of the securities.

     Examples of Material Information. Common examples of information that will frequently be
regarded as material are: financial results or expectations, including sales, earnings or losses;
other information regarding financial position, performance or liquidity; material developments
relating to our expansion or contracts with franchisees; news of a pending or proposed merger,
acquisition or tender offer; an important financing transaction; changes in dividend policies or
the declaration of a stock split or the offering of additional securities; changes in management;
significant product developments; changes to our accounting practices; a restatement of financial
statements; impending bankruptcy or financial liquidity problems; internal financial information
which materially departs from what the market would expect; and the gain or loss of a major
contract. Either positive or negative information may be material. We emphasize that this list is
merely illustrative.

     Material, non-public information. Material, non-public information is material information
which is not, or has not been made available to the public generally, whether through a press
release, webcast, filing with the SEC or other medium designed to reach the investing public. For
“non-public” information to become public information it must be disseminated through recognized
channels of distribution designed to reach the securities marketplace, such as disclosure by filing
a report with the SEC or disclosure by release to a national business and financial wire service
(such as Dow Jones or Reuters) or a national newspaper (such as The Wall Street Journal).
The circulation of rumors or “talk on the street,” even if accurate, widespread and reported in the
media, does not necessarily constitute the required public disclosure. Further, sufficient time
must pass for the information to become available in the market. (See “When Information is Public”,
below.)

     Twenty-Twenty Hindsight. Remember, if your securities transactions become the subject of
scrutiny, they will be viewed after-the-fact with the benefit of hindsight. As a result, before
engaging in any transaction, you should carefully consider how regulators and others might view
your transaction in hindsight.

     Transactions by Family Members. These restrictions also apply to your family members and
others living in your household. Employees are responsible for the compliance with this policy by
members of their family and their personal household.

     Tipping Information to Others. Whether the information is proprietary information about our
Company or information that could have an impact on our stock price, you must not pass the
information on to others. Tipping results in liability for the insider who communicated such
information, even if such insider does not actually trade himself or herself, and for the person
who received the information if the person has reason to know that it was an improper disclosure
and acts on such information or passes it on to others who may act on it. The above penalties
apply, whether or not you derive any benefit from another person’s actions.

     When Information is Public. As you can appreciate, it is also improper for any
member of the Board of Directors or Senior Management or any other employee to enter into a trade
immediately after Panera Bread has made a public announcement of material information, including

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earnings releases. Because Panera Bread’s shareholders and the investing public should be afforded
time to receive this information and to act upon it, as a general rule, you should not engage
in any transactions until the second business day after the information has been released. Thus,
if an announcement is made on a Monday, Wednesday generally would be the first day on which you
should trade. If an announcement is made on a Friday, Tuesday generally would be the first day on
which you should trade. However, if the information released is complex, such as a prospective
major financing or other transaction, it may be necessary to allow additional time for the
information to be absorbed by investors. In such circumstances, you should consult with the Chief
Legal Officer or Chief Financial Officer of the Company, regarding a suitable waiting period before
trading. Remember, if you are in possession or aware of material non-public information that was
not part of the information released, you may not engage in transactions based on the material
non-public information.

     Prevention of Insider Trading by Others. If you become aware of a potential insider trading
violation, you should immediately advise the Chief Legal Officer or Chief Financial Officer. You
should also take steps, where appropriate, to prevent persons under your control from using inside
information for trading purposes.

     Confidentiality. Serious problems could be caused for Panera Bread by the unauthorized
disclosure of internal information about the Company, whether or not for the purpose of
facilitating improper trading in the securities of Panera Bread. Generally, securities regulations
provide that when a company (such as our Company) discloses material, non-public information, it
must provide broad, non-exclusionary public access to the information. Violations of these
regulations can result in SEC enforcement actions, resulting in injunctions and severe monetary
penalties. Company personnel must maintain non-public information about the Company in strict
confidence and not discuss internal Company matters or developments with anyone outside of the
Company, except as required in the performance of regular corporate duties. Similarly, you should
not discuss Company affairs in public or quasi-public areas where your conversation may be
overheard (i.e. restaurants, airplanes and elevators, etc.).

     This prohibition applies specifically (but not exclusively) to inquiries about Panera Bread
that may be made by the financial press, investment analysts or others in the financial community.
It is important that all such communications on behalf of the Company be through an appropriately
designated officer under carefully controlled circumstances. Unless you are expressly authorized
to the contrary, if you receive any inquiries of this nature, you should decline comment and refer
the inquirer to one of the designated officers listed under “Contacts” at the end of this policy.

     Trading. Trading includes buying and selling, as well as writing options. Transactions which
do not result in a change in beneficial ownership are excluded from this policy.

     Options. Purchases of stock under an employee option (but not any related open market sales or
surrender of shares) are excluded from the term “trading” for purposes of this policy, even if you
are in possession or aware of material nonpublic information, if you use cash to pay the exercise
price (i.e., no shares are tendered or withheld to pay the exercise price or taxes) and you hold
and do not sell the securities acquired on exercise. A “cashless” exercise, in which a broker pays
the exercise price, sells the shares acquired upon exercise, and then remits the net cash proceeds
to you does constitute trading.

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     Restricted Stock. Automatic withholding of restricted stock upon vesting to pay taxes in
accordance with the terms of the grant does not constitute “trading” for purposes of this policy.

     Standing Orders. Standing orders (except standing orders under approved Rule 10b5-1 plans,
see below) should be used only for a very brief period of time. The problem with purchases or
sales resulting from standing instructions to a broker is that there is no control over the timing
of the trade. The broker could execute a trade when you are in possession or aware of material
inside information.

     10b5-1 Plans. Rule 10b5-1 provides a defense from insider trading under SEC Rule 10b-5. To
be eligible for this defense, an insider may enter into a “10b5-1 plan” for trading in Company
stock. If the plan meets the requirements of Rule 10b5-1, the Company stock may be purchased or
sold without regard to certain insider trading restrictions. To comply with the Company’s insider
trading policy, a 10b5-1 plan must be approved by the Chief Legal Officer and meet the requirements
of Rule 10b5-1 and other legal requirements.

     Employee Stock Purchase Plan. This policy’s trading restrictions do not apply to purchases of
Company stock in the employee stock purchase plan resulting from your periodic payroll
contributions to the plan under an election you made at the time of enrollment in the plan. The
trading restrictions do apply to your election to participate in the plan and to your sales of
Company stock purchased under the plan.

     401(k) Plan. This policy’s trading restrictions do not apply to purchases of Company stock in
the 401(k) plan resulting from your periodic contributions of money to the plan pursuant to your
existing payroll deductions. The trading restrictions do apply, however, to elections you make
under the plan to (a) increase or decrease the percentage of your periodic contributions that will
be allocated to the Company stock fund, (b) make an intra-plan transfer of an existing account
balance into or out of the Company stock fund, (c) borrow money against your 401(k) plan account
and (d) pre-pay a plan loan if the pre-payment will result in allocation of loan proceeds to the
Company stock fund.

     Gifts. A bona fide gift may be considered a sale of Company common stock for purposes of the
insider trading rules. Gifts to relatives, friends or business associates who quickly sell may
appear to circumvent the insider trading rules. As a result, Company policy prohibits gifts of
Company stock to others while in possession or aware of material non-public information.

Additional Prohibited Transactions

     Because we believe it is improper and inappropriate for Company personnel to engage in
short-term or speculative transactions involving the securities of Panera Bread or of
our publicly owned customers or suppliers, it is the Company’s policy that all members of the
Board of Directors and Senior Management and all other employees should not engage in any of the
following activities:

	 	1.	 	Trading in securities on a short-term basis. Any Company securities purchased
in the open market must be held for a minimum of six months and ideally longer. (Note
that the SEC’s short-swing profit rule is already intended to prevent those individuals
and entities subject to Section 16 of the Securities Exchange Act of 1934 (“Section 16

5

 

	 	 	 	Reporting Persons”) from deriving a profit from any sale and purchase transactions
in Company securities within six months of each other. We are simply applying this
rule to all Company personnel. This rule does not apply to stock option exercises,
except to the extent required by the SEC’s short-swing profit rule for directors and
officers.
	 
	 	2.	 	Participation in the “Friends and Family” or “Directed Share” programs of our
customers and suppliers who are public companies under which you would buy shares in
their public stock offerings.
	 
	 	3.	 	Purchases of Company Stock on Margin. No Company personnel shall purchase the
Company’s securities “on margin” — with money borrowed from a bank, brokerage firm or
other person for the purpose of purchasing the securities.
	 
	 	4.	 	Short Sales. No Company personnel shall engage in selling the Company’s
securities “short” — that is, the sale of securities that are not owned by the
employee. (A person who sells “short” is betting that the price of the security is
going down — he borrows the security, sells it, and expects to be able to return the
securities by repurchasing them at a lower price in the future.) SEC rules already
prevent officers and directors from making “short sales” or sales of securities that,
if owned, will not be delivered for a period longer than 20 days after the sale. Again,
we are simply expanding this rule to all Company personnel.
	 
	 	5.	 	Buying or Selling “Derivative Securities.” No Company personnel shall buy or
sell puts (i.e., options to sell), calls (i.e., options to purchase), future contracts,
or other forms of derivative securities relating to the Company’s securities. For
these purposes, a security will be considered a derivative of another security if its
value is derived from the value of the other security.

Special Procedures Applying to All Members of the Board of Directors, Senior Management (as listed
on page 2), and Accounting and Finance Staffs

     While it is never permissible to trade based on material non-public information, we are
implementing the following procedures, to help prevent inadvertent violations and avoid even the
appearance of an improper transaction (which could result, for example, where a member of Senior
Management engages in a trade while unaware of a pending major development):

     Prohibited Periods for Trading. Members of the Board of Directors, Senior Management and
members of the Accounting and Finance Staffs are prohibited from trading in any Company securities
during the following periods: the periods commencing 21 days prior to the close of each of the
first, second, third and fourth quarters and ending the second business day after the release of
Panera Bread’s financial results for such quarter and, in the case of the fourth quarter, financial
results for the year end. In addition, Panera Bread may from time to time require all members of
the Board of Directors, Senior Management, and members of the Accounting and Finance Staffs as
well, as all other employees, to refrain from trading during other specified periods
when significant developments or announcements are anticipated. Even during periods when trading
is permitted, no one may trade in the securities of Panera Bread if he or she possesses or is aware
of material inside information.

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     Pre-Clearance of All Trades. All trades in Company securities by members of the Board of
Directors, Senior Management and members of the Accounting and Finance Staffs must be pre-cleared
by the Chief Legal Officer or Chief Financial Officer, even if you are not in possession or aware
of specific material non-public information. Again, no one may trade, even with authorization, if
he or she is actually in possession or aware of material non-public information. If you contemplate
a trade in the Company’s securities, you should contact the Chief Legal Officer or Chief Financial
Officer in advance. Pre-clearance advice generally is good for two days, unless you come into
contact with material inside information during that time.

Administration of Policy

     The Company reserves the right to amend and interpret the policy from time to time. Any
person who has any questions about specific transactions or this Policy Statement in general may
obtain additional guidance from the Chief Legal Officer or Chief Financial Officer. Remember,
however, the ultimate responsibility for adhering to the Policy Statement and avoiding improper
transactions rests with you. In this regard, it is imperative that you use your best judgment.

Contacts

If you have any questions regarding the policy, please do not hesitate to contact the Chief Legal
Officer or Chief Financial Officer. If you receive any inquiries about Panera Bread from the
media, investment analysts or others, please decline comment and refer the inquirer to any of the
designated officers listed below:

	 	 	 	 	 
	Chief Executive Officer:

	 	Ron Shaich
	 	(314) 633-7100
	Chief Administrative Officer:

	 	Neal Yanofsky
	 	(314) 633-7100
	Chief Financial Officer:

	 	Mark Hood
	 	(314) 633-7100
	Chief Legal Officer:

	 	Pat Gray
	 	(314) 633-7100

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[Panera Bread Company Letterhead]

[Letter to Members of the Board of Directors, Senior Management and Employees regarding
Certification]

	 	 	 	RE: Certification of Panera Bread’s Policy Statement on Securities Trades by
Company Personnel

Dear                                         :

     Enclosed is a copy of Panera Bread Company’s new Policy Statement covering securities trades
by Company personnel. As you will see from the Statement, the consequences of an insider trading
violation can be severe to both the individual involved and the Company.

     Please take a few minutes right now to read the enclosed Policy Statement and then sign and
return the attached copy of this letter.

	 	 	 
	 

	 	Sincerely,
	 
	 	 
	 

	 	 
	 

	 	Ronald M. Shaich

Certification

     The undersigned hereby certifies that he/she has read and understands, and agrees to comply
with, Panera Bread Company’s Policy Statement on Securities Trades By Company Personnel dated
[___], a copy of which was distributed with this letter.

	 	 	 	 	 
	 

	 	Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	 	 	     (Please Print)
	 
	 	 	 	 
	 

	 	Department:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

8

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