Document:

Unassociated Document

     

    
      Exhibit 10.12

      

      

      This
Agreement dated August 12,2009, is between Dais Analytic Corporation
(hereinafter referred to as “Company”), a New York
corporation, having its principal place of business at 11552 Prosperous Drive,
Odessa, FL 33556 and Harold Mandelbaum, having his principal
place of business at 555 5th Avenue,
9th
Floor, New York, New York 10017 hereinafter referred to as “Consultant”. Company
and Consultant are also both hereinafter referred to individually as “Party” and
together as the “Parties”.

      

      WITNESSETH:

      

      

      WHEREAS, the Consultant is a
certified public accountant; and

      

      WHEREAS, Company has secured
and desires to retain the services of Consultant as Company’s Chief Financial
Officer (“CFO”) performing all necessary, advisable and/or requested services
customarily performed by CFO of a public company of similar stature and
complexity; and

      

      WHEREAS, Consultant has
provided and desires to continue to provide such services to Company;
and

      

      WHEREAS, the parties wish to
document the terms and conditions under such services were rendered and will
continue to be rendered; and

      

      NOW THEREFORE, the Parties
agree as follows:

      

      
        	
                1.  

              	
                Performance by
      Consultant. Consultant was engaged and continues as of the date
      hereof to be engaged by Company to act as its Chief Financial Officer
      pursuant to the terms and conditions of this Agreement. From the date of
      his engagement Consultant represents, acknowledges and agrees that he has
      been and will continue to be subject to the direction of the Board of
      Directors and the Company’s CEO, and has and will continue to perform and
      discharge well and faithfully all duties typically related to such a
      position in a public company in addition to any additional duties as may
      be assigned to him from time to time by Company in connection with the
      conduct of its business. Consultant understands the scope and nature of
      the services he performs under this Agreement, which include, but not be
      limited to, financial planning, budgeting, preparing, reviewing, and
      executing SEC reports, interfacing with audit staff, preparing monthly,
      quarterly and year end financials, supervising the closings relating to
      the forgoing financials, addressing SOX 404 requirements, overseeing the
      accounting personnel, reviewing financial controls, assuring Company’s
      financial records are in compliance with generally accepted accounting
      practices, executing and filing all reports required by the Securities and
      Exchange Commission on a timely basis and performing all business planning
      services for Company. Consultant represents that he has and shall continue
      to use his best efforts to perform said services expediently, in a good
      and professional manner, using competent personnel, in conformance with
      the terms of this Agreement and abiding by all applicable accounting
      standards and all federal, state and local laws and regulations. Said
      services  are  performed on a part-time basis with
      Consultant dedicating at least twenty (20) hours per week to Company’s
      business with additional time to be provided as needed or advisable to
      meet the requirements of the position and the reasonable deadlines of the
      business.  Such services have and shall be rendered by
      Consultant primarily from his principal place of business in New York City
      and, as and to the extent necessary or advisable, the Company’s Odessa
      facility. Company has and agrees to continue to cooperate with Consultant
      and to furnish Consultant all information and data concerning Company and
      its operations (“Information”) which Consultant deems necessary or
      appropriate for the purposes of fulfilling his services under this
      Agreement. During the course of this Agreement, Company has and shall
      continue to maintain Directors and Officer liability insurance and
      Consultant shall, to the extent provided by said policy, be insured there
      under.

              

      

      

      
        	
                2.  

              	
                Compensation.
      As full compensation for all services rendered or to be rendered by
      Consultant pursuant to the terms and conditions of this Agreement,
      Company:

              

      

      

      
        	
                 

              	
                (a)
      shall, commencing on May 1, 2009, pay Consultant, for each full month in
      which Consultant performed or performs the services described herein
      pursuant to the terms and conditions of this Agreement, the sum of Three
      Thousand Three Hundred and Thirty Three Dollars ($3333.00). Any such
      payment shall be due and payable within 30 days of Company’s receipt of
      Consultant’s invoice describing in reasonable detail ( including a
      schedule of hours worked and issues addressed in each such hour) the
      services provided by Consultant to Company in the month relating to the
      invoice; and

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                 

              	
                (b)
      issued to Consultant, on May 1, 2009, an option to purchase Two Hundred
      Thousand (200,000) shares of Common Stock of the Company
      ("Option").  The Option was granted pursuant to and exercisable
      in accordance with the Non-Qualified Stock Option Agreement executed by
      the parties and attached hereto as Exhibit A, the terms and conditions of
      which are incorporated herein by
reference.

              

      

      

      
        	
                3.  

              	
                Term.
      Consultant represents and agrees that all such services were rendered and
      will continue to be rendered subject to and in accordance with the terms
      and conditions of this Agreement. This Agreement may be terminated, with
      or without cause, by either party upon written notice.  In the
      event of termination by either party, the Consultant shall immediately
      convey in writing all work product , reports, records, correspondence,
      work books, inventions, discoveries, plans, formulas, processes,
      strategies and theories contemplated, discussed or under development along
      with current status of all projects upon which he is working prior to his
      departure (“Work Product”).  In addition,
      this  Agreement shall automatically terminate upon the death or
      permanent disability of Consultant.  The exercise of the right
      to terminate by Company or Consultant shall not abrogate the rights and
      remedies of the terminating party with respect to a breach of this
      Agreement. All payments under this section, with the exception of those
      earned and owing as of the date of termination, shall cease upon
      termination of this Agreement. Notwithstanding any provision of this
      Agreement to the contrary, Company shall not be liable for any amounts due
      to Consultant as of the date of termination until all of the above Work
      Product is delivered to Company in an orderly and legible
      condition.

              

      

      

      
        
          	
                  4. 

                	
                  Expenses. The
      Company will reimburse Consultant for actual and reasonable expenses
      incurred     in travel to Company’s Odessa
      Florida facility provided said expenses are pre- approved by Company in
      writing.  Consultant shall not be entitled to any compensation,
      benefits, expenses or other payments, other than those specifically
      provided for in this
Agreement.

                

        

      

      

      

      
        	
                5. 

              	
                Confidential
      Information.

                (a)
      Consultant recognizes and acknowledges that the Company’s Confidential
      Information, as defined below and as it may exist from time to time, is a
      valuable, and unique asset of the Company’s business, access to and
      knowledge of which are essential to the performance of the Consultant’s
      duties hereunder. Consultant has not and will not during or after the term
      of this Agreement, in whole or in part, disclose, publish or make
      accessible such Confidential Information which Consultant may now possess,
      may obtain during the term of this Agreement, or may create prior to the
      end this Agreement, to any person, firm, corporation, association or other
      entity for any reason or purpose whatsoever (excluding court orders or
      subpoenas) nor shall the Consultant make use of any such property for
      Consultant’s own purposes or for the benefit of any person, firm,
      corporation or other entity (except the Company) under any circumstances
      during or after the term of this Agreement without prior written approval
      of Company. Consultant has not and may not employ third parties to perform
      the services without the express written consent of the Company, and only
      after having executed an agreement containing provisions at least as
      restrictive as the provisions contained herein and provided said agreement
      conveys to Company all the rights and obligations to be afforded to it by
      the no hereunder. Employing a third party shall not relieve Consultant of
      its obligations under any provision of this Agreement and Consultant shall
      be liable for any breach of this Agreement by its third parties.
      .

              

      

      

      
        	
                 

              	
                (b.)
      For the purposes of this Agreement, Confidential Information shall be
      defined as any and all trade secrets, know-how, proprietary information
      and other data or information of any nature ( including, but not limited
      to, any idea, product or product concepts, improvement, inventions
      (including but not limited to discoveries, concepts, and ideas),
      innovation, process, product, method, development, discovery, sample,
      research, technical data, design, formula, device, pattern, concept,
      techniques, marketing plans, strategies, forecasts, customer lists,
      financial records or information, information regarding products, designs,
      methods, systems, software programs, schematic model, diagram, drawing,
      flow chart, chemical mixture, product specification, plan for new or
      revised product, compilation of information, work in progress and any
      modifications, revisions, enhancements or improvements thereto, whether
      patentable or not) disclosed or made available to Consultant or known to
      Consultant as a direct or indirect consequence of or through the
      relationship with the Company or created by either Company or Consultant,
      whether alone or with another party, during the performance of this
      Agreement and not generally known to the
public.

              

      

      

      
        	
                 

              	
                (c.) Consultant
      has the same obligations under this Agreement with respect to Generated
      Items as it has with respect Company’s Confidential Information. For the
      purpose of this Agreement “Generated Items” shall mean (1) all materials
      or products generated or made from Confidential Information and (2) all
      technical data that (2a) reasonably pertains to the identity or
      performance of Confidential Information or (2b) is generated using
      Confidential Information or those materials or products defined under (1).
      At the conclusion of this agreement Consultant shall return to Company all
      Confidential Information.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                6. 

              	
                Ownership.

              

      

      

      
        	
                 

              	
                (a)
      All information of any nature, created, discovered, or developed during
      the performance of this Agreement by either Company or Consultant, whether
      alone or with any other party, or in part or in whole, or by Company,
      whether alone or with another party before, or in part or in whole, during
      or after this Agreement, or in which property rights have been assigned or
      otherwise conveyed to the Company is Confidential Information and shall be
      the sole property of the Company and its assigns, and the Company and its
      assigns shall be the sole owner of all patents, copyrights and other
      rights in connection therewith. The Consultant acknowledges the foregoing
      and also acknowledges that this Agreement is a “work for hire” Agreement
      and hereby waives, assigns and transfers to Company or to any person, or
      entity designated by the Company, any and all rights and interest
      Consultant has or may acquire to said information made or conceived by
      Consultant, solely or jointly, or in whole or in part, in performance of
      the Agreement. Consultant represents and warrants that neither it, its
      employees, if any, or any approved third parties assigned to this
      Agreement by Consultant have entered into any agreement or have any other
      obligation of any nature which would contradict or otherwise impinge upon
      the obligations hereunder or the rights to be conveyed to the Company
      under the Agreement. Consultant warrants and represents that it has
      secured such rights by contract from its employees and any approved third
      party it employs under this Agreement and therefore has full and
      unrestricted power and authority to enter into this Agreement and to grant
      the rights defined above exclusively to Company. Consultant further
      represents and warrants that no pre-existing work shall be integrate
      into work produced hereunder by it,  its employees or approved
      third parties unless Consultant has obtained a valid license complying
      with the terms of this Agreement and said license permits the Company to
      exclusively use such pre-existing  work. Further Consultant
      represents and warrants that the work produced hereunder by it, its
      employees, if any, and its approved third parties does not infringe on the
      proprietary rights of any third
party.

              

      

      

      
        	
                 

              	
                (b)  Consultant
      will promptly disclose and cause its employees, if any, and any approved
      third parties assigned hereunder to disclose to the Company, or any
      persons designated by it, all improvements, modifications, developments,
      documentation, data, inventions, designs, ideas, copyrightable works,
      discoveries, trademarks, copyrights, trade secrets, formulas, processes,
      techniques, know-how, and data, whether or not patentable, made or
      conceived or reduced to practice or learned or proposed by Consultant,
      either alone or jointly with others, and by the approved third parties,
      either alone or jointly with others, during the period of this Agreement
      which are in any way related to or useful in the actual, anticipated or
      potential businesses of the Company, or the result of tasks assigned to
      Consultant by the Company or resulting from use of premises or equipment
      owned, leased or contracted for by the Company. Any invention relating
      to   services or products to be completed by Consultant or
      its approved third parties under this Agreement which is created by
      Consultant within six (6) months following the termination or completion
      of this Agreement shall be deemed to fall within the provisions of this
      Agreement unless established by Consultant using written documentation to
      have been first conceived and made following such termination or
      completion.

              

      

      

      
        	
                7. 

              	
                Assignment of
      Inventions.

                (a) Consultant
      hereby waives, assigns and transfers to the Company any rights Consultant
      may have or may acquire in all inventions (including, but not limited to,
      ideas, discoveries, processes and improvements) created or proposed as a
      direct or indirect result of the work performed under this Agreement and
      agrees that all said inventions shall be the sole property of the Company
      and its assigns, and the Company and its assigns shall be the sole owner
      of all patents, copyrights and other rights in connection therewith.
      Consultant further agrees to assist the Company in every proper way (but
      at the Company’s expense) to obtain and from time to time enforce patents,
      copyrights or other rights on said inventions in any and all countries,
      including, but not limited to, Consultant executing all documents
      necessary:

              

      

      

      
        	
                 

              	
                (i)
      to apply for, obtain and vest in the name of the Company (unless the
      Company otherwise directs) letters   patent, copyrights or
      other analogous protection in any country throughout the world and when so
      obtained or vested to renew and restore the same;
  and

              

      

      

      
        	
                 

              	
                (ii)
      to defend any opposition proceedings in respect of such applications and
      any opposition proceedings or petitions or applications for revocation of
      such letters patent, copyright or other analogous
    protection.

              

      

      

      
        	
                 

              	
                (b) Consultant’s
      obligation to reasonably assist the Company in obtaining and enforcing
      patents and copyrights for such Inventions in any and all countries shall
      continue beyond the termination or completion of this
      Agreement.

              

      

      

      
        	
                 

              	
                (c) Company
      shall compensate the Consultant at a reasonable and customary rate for
      services provided by Consultant, at Company’s written request, in
      assisting Company pursuant to Section 7(a), 7(b) or
  7(e).

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                (d) Consultant
      acknowledges that all original works of authorship which are made by
      Consultant (solely or jointly with others) within the scope of this
      Agreement and which are protectable by copyright are being created at the
      instance of the Company and are “works for hire”, as that term is defined
      in the United States Copyright Act (17 USC Section 101). If such laws are
      inapplicable or in the event that such works, or any part thereof, are
      determined by a court of competent jurisdiction not to be a work made for
      hire under the United States copyright laws, this Agreement shall operate
      as an irrevocable right, title and interest (including, without limitation
      all rights in and to the copyrights throughout the world, including the
      right to prepare derivative works and the right to all renewals and
      extensions) in the Works in
perpetuity

              

      

      

      
        	
                 

              	
                (e) In
      the event Company is unable, after reasonable effort, to secure
      Consultant’s signature,  regardless of reason, on any letters
      patent, copyright or other analogous protection relating to an invention
      created during the term of this Agreement or the term designated in
      Section 6 (a), Consultant hereby irrevocably designates and appoints
      Company and its duly authorized officers and agents as Consultant’s agent
      and attorney-in-fact, to act for and in Consultant behalf and stead to
      execute and file any such application or applications and to do all other
      lawfully permitted acts to further the prosecution and issuance of letters
      patent, copyright or other analogous protection thereon with the same
      legal force and effect as is executed by Consultant. Consultant’s
      obligation to assist Company in obtaining and enforcing patents and
      copyrights for such inventions in any and all countries shall continue
      beyond the cancellation or termination of this
      Agreement.  Consultant shall be responsible for having all
      inventions owned by Company pursuant to the terms of this Agreement and
      made by any of Consultants employees or approved third parties immediately
      assigned to Consultant or Company, as Company shall
  direct.

              

      

      

      
        	
                8.

              	
                Specific
      Remedies.  If Consultant has committed or commits a
      breach of any of the provisions of the Agreement, the Company shall have
      in addition to all remedies available under the
  law:

              

      

      

      
        	
                 

              	
                (a.)
      The right and remedy to have such provision specifically enforced by any
      court of competent jurisdiction, it being acknowledged and agreed that any
      such breach will cause irreparable injury to the Company and that money
      damages will not provide an adequate
remedy.

              

      

      

      
        	
                 

              	
                (b.)
      The right and remedy to require Consultant to account for and pay over to
      Company
      all compensation, profits monies, accruals, increments or other benefits
      (collectively “benefits”), derived or received by Consultant as the result
      of any transaction constituting a breach of any such provisions, and
      Consultant hereby agrees to account for and pay over such benefits to the
      Company.

              

      

      

      
        	
                9.

              	
                Assignment of
      Agreement. This Agreement may not be assigned by any Party hereto
      without the written consent of the other Party. This Agreement will enure
      to the benefit of and be binding upon the Parties and their respective
      successors.

              

      

      

      
        	
                10.

              	
                Notice.  Any
      notice required or permitted to be given under this Agreement shall be
      sufficient if in writing and sent by registered or certified mail, prepaid
      and return receipt requested, to Consultant at its principal place of
      business listed above and to Company at its address set forth above,
      Attention: President, Dais Analytic Corporation. Either Party may change
      the address to which it desires notices be mailed by providing written
      notice of the address change the above prescribed
  manner.

              

      

      

      
        	
                11.

              	
                Waiver of
      Breach. A waiver by the Company or Consultant of a breach of any
      provision of this Agreement by the other Party shall not operate or be
      construed as a waiver of any subsequent breach by the other
      Party.

              

      

      

      
        	
                12.

              	
                Survival.
      Sections 5,6,7, 8, 13 and 14 in addition to any other provision of this
      Agreement providing for survival shall remain in effect indefinitely and
      shall survive the termination of this
Agreement.

              

      

      

      
        	
                13.

              	
                Indemnification and
      Insurance.  Consultant agrees to indemnify, defend and
      hold Company harmless from any claims, expenses, losses or damages
      threatened or assessed against Company (including but not limited to all
      such claims, expenses, losses or damages for personal injury or death or
      for damage to, or loss of, property) (“Losses”) resulting from any
      negligent act, error, omission or willful act on the part of Consultant
      with respect to services provided under this Agreement. Consultant
      represents that he has and shall maintain error and omission insurance in
      an amount reasonably satisfactory to Company and shall provide Company a
      certificate of insurance evidencing said insurance and naming Company as
      an additional insured. Said insurance shall provide coverage for any
      Losses relating to Consultant’s performance of this Agreement. Consultant
      hereby acknowledges that he is accountable for his own federal, state,
      city and self employment taxes, social security payments, all liability
      insurances, including but not limited to worker’s compensation insurance,
      medical insurances and any other taxes, penalties or charges imposed by
      any governmental or regulatory agency. The Consultant agrees to sign a
      completed W-9 certificate prior to issuance of any monies under this
      Agreement. Consultant hereby waives all claims of any nature against
      Company with regard to any injuries sustained by him or any of his
      employees or agents in the performance of this Agreement and shall
      indemnify, defend and hold harmless Company, its directors, employees and
      agents from and against any and all damages, claims, costs or expenses of
      any nature, including but not limited to reasonable attorneys fees, which
      arise from or are related to any injury sustained by Consultant, it’s
      agents, or employees in performance of this Agreement. Consultant shall
      and has secured in writing substantially the same waiver in favor of
      Company from each of its employees, if any, and its approved third
      parties.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                14.

              	
                Independent
      Consultant. In all things undertaken by the Parties with relation
      to this Agreement, it is specifically understood and agreed that
      Consultant shall be and remain at all times, an independent Consultant,
      and neither Consultant nor any of his employees, agents or consultants
      shall be treated as a servant, agent or employee of Company. Nothing
      contained herein shall be construed to imply a joint venture between
      Consultant and Company.  Company shall have no voice in the
      selection, discharge, supervision, or control of Consultant’s employees or
      representatives, if any, nor shall it have any right to direct or control
      Consultant, subject only to the general objectives, requirements and
      direction of the Company’s Board of Directors and Chief Executive Officer.
      The manner in which the services Consultant provides under this Agreement
      are performed and the specific hours are determined by the Consultant,
      provided the services are performed during customary working hours,
      includes as many hours as reasonably necessary to fulfill the Consultant’s
      obligations under this Agreement and Consultant regularly consults with
      Company regarding fulfillment of the Company’s objectives. Consultant
      shall provide all facilities and labor necessary to complete this
      Agreement. Consultant accepts full and exclusive responsibility and
      liability for all filing requirements, taxes, benefits or expenses
      associated with this Agreement including but not limited to: (i)filing all
      returns, including but not limited to state, Federal and NYC income tax
      returns, (ii) payment of federal, state and NYC taxes of any and all
      nature (ii) any and all withholding responsibilities, (iii) any and all
      contributions and withholding for unemployment insurance, old age pension
      or retirement, and (iv) any other benefits of any nature imposed by any
      law, regulation or otherwise and whether or not measured by or attributed
      to wages, salaries or other remuneration paid or payable by Consultant to
      employees of Consultant engaged in the work carried out pursuant to this
      Agreement, or by voluntary or contractual benefit plans between Consultant
      and its employees which require contributions by Consultant. Neither
      Contractor or his employees or representatives, if any, shall be entitled
      to or receive any benefit normally provided to Company’s employees.
      Company shall not be responsible for withholding any income or other taxes
      or any other amounts, regardless of nature, from the payments to
      Contractor. Company shall prepare and file a Form 1099 for each taxable
      year in which Consultant offers services under this Agreement. Neither
      Consultant nor Company shall have the right, power or authority to create
      any obligation, express or implied, on behalf of the other. Company
      acknowledges that Consultant is in the business of providing financial and
      accounting services to others and that Consultant’s services shall not be
      exclusive to Company during the term of this Agreement. Nothing contained
      in this Agreement shall be construed to limit or restrict Consultant in
      providing such services to others other than as required to meet
      Consultant’s obligations to Company under the terms of this
      Agreement.

              

      

      

      
        	
                15.

              	
                Governing Law.
      This Agreement shall be governed by, and construed and enforced in
      accordance with the laws of the State of Florida, not including, however,
      any conflict of laws rule of such State which may direct the application
      of the laws of any other jurisdiction. Each Party agrees to submit to the
      jurisdiction of the courts of the State of Florida. Any award hereunder
      shall be final and binding upon the Parties and may, if necessary, be
      enforced by any court or other competent
  authority.

              

      

      

      
        	
                16.

              	
                Severability.  If
      any covenant or other provision of this Agreement is invalid, illegal, or
      incapable of being enforced by reason of any rule of law or public policy,
      then such covenant or other provision will be modified, if possible, to
      the extent necessary to make it legal and enforceable or, if necessary,
      severed from the agreement and in the latter event the Agreement will be
      construed as if such invalid, illegal, or unenforceable covenant or
      provision had never been contained in this Agreement and all
      other  provisions shall remain in full force and effect
      .

              

      

      

      
        	
                17.

              	
                Captions. The
      captions included in this Agreement are provided for convenience only and
      shall not affect the meaning or interpretation of this
      Agreement.

              

      

      

      
        	
                18.

              	
                No Implied
      License. Nothing contained in this Agreement shall be implied to
      grant the Consultant any license with respect to the services performed or
      products produced hereunder or the results
  thereof.

              

      

      

      
        	
                19.

              	
                Entire
      Agreement. This Agreement contains the entire agreement of the
      Parties and supersedes all previous proposals, both oral and written,
      negotiations, representations, commitments, writings and all other
      communications by the Parties. It may be changed only by an agreement in
      writing signed both Parties.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                20.

              	
                Authority.  Each
      Party to this Agreement represents that the individual executing this
      Agreement on its behalf is duly authorized to bind such Party to this
      Agreement according to its terms.

              

      

      

      
        	
                21.

              	
                Modifications to
      Agreement.  No change, modification of or alteration to
      this Agreement of any nature, including, but not limited to, any technical
      changes, modifications or alterations to deliverables required hereunder,
      shall be effective unless first made in writing and signed by Timothy
      Tangredi, on behalf of Company, and
Consultant.

              

      

      

      
        	
                22.

              	
                Public Notice.
      Consultant shall not make public the existence of this Agreement or the
      work done hereunder without prior written permission from
      Company.

              

      

      

      
        	
                23.

              	
                Language. The
      language in all parts of this Agreement shall in all cases be construed
      simply, as a whole and not strictly for or against any
    party.

              

      

      

      

      IN WITNESS
WHEREOF, the Parties have executed this Agreement as of the day and the
year first hereinabove written.

      

       

      
        
          	
                  Dais
      Analytic Corporation

                	
                  Harold
      Mandelbaum

                
	 
      	 
      
	 
      	 
      
	
                  By: /s/TIMOTHY TANGREDI    

                	
                  By: /s/ HAROLD MANDELBAUM    

                
	 
      	 
      
	
                  Printed Name: Timothy
      Tangredi

                	
                  Printed Name: Harold
      Mandelbaum

                
	
                  Title:  President

                	
                  Title:
      Consultant

                

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      DAIS
ANALYTIC CORPORATION

      2000
INCENTIVE COMPENSATION PLAN

      NON-QUALIFIED
STOCK OPTION AGREEMENT

      

      

      THIS OPTION AGREEMENT is made
as of the 1st day of May, 2009 (the “Option Date”), between Dais Analytic
Corporation, a New York corporation (the “Company”), and Harold Mandelbaum, a
consultant to the Company or one of its subsidiaries (the
“Optionee”).

      

      WHEREAS,
the Company established the 2000 Incentive Compensation Plan (the “Plan”) to
advance the interests of the Company by attracting and retaining qualified and
competent employees and consultants through encouragement of stock ownership in
the Company; and

      

      WHEREAS,
the Company desires to grant to the Optionee a nonqualified stock option to
purchase shares of the Company’s common stock, par value $.01 per share (the
“Common Stock”), pursuant to the Plan.

      

      NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth
and for other good and valuable consideration, the parties hereto have agreed,
and do hereby agree, as follows:

      

      1. Grant of
Option.  The Company hereby grants to the Optionee the right
and Option (hereinafter called the “Option”) to purchase from the Company Two
Hundred Thousand  (200,000) shares (the “Option Shares”) of the Common
Stock of the Company, or any part of such number, on the terms and conditions
herein set forth.  It is intended that the Option shall constitute a
nonqualified stock option@ within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”).

      

      2. Exercise
Price.  The exercise price of the Option Shares shall be
Nineteen Cents ($.19) per share, as adjusted pursuant to paragraph 9
hereof.

      

      3. Term of
Option.  The term of the Option shall be for a period of ten
(10) years from the Option Date, subject to earlier termination as hereinafter
provided.

      

      4. Exercise of
Option.  Subject to the provisions of Sections 7 and 11 hereof,
the Option may be exercised during the term specified in Section 3 as
follows:

      

      (a) Fifty
Thousand (50,000) Option Shares shall vest on the anniversary of third (3rd) month
following the date of this Option; and

      

      (b) an
additional Fifty Thousand (50,000) Option Shares shall vest every three (3)
months thereafter until the entire number of Option Shares is
vested.

      

      5. Restrictions on
Disposition.  All Option Shares acquired by the Optionee
pursuant to this Agreement shall be subject to the restrictions on sale,
encumbrance and other disposition provided by Federal or state
law.  As a condition precedent to receiving Option Shares upon the
exercise of this Option, the Company may require that the Optionee submit a
letter to the Company stating that the Option Shares are being acquired for
investment and not with a view to the distribution thereof.  The
Company shall not be obligated to sell or issue any shares of Common Stock
pursuant to this Agreement unless, on the date of sale and issuance thereof, the
shares of Common Stock are either registered under the Securities Act of 1933,
as amended, and all applicable state securities laws, or are exempt from
registration thereunder.  All Option Shares issued to the Optionee
pursuant to this Agreement may bear a restrictive legend summarizing any
restrictions on transferability applicable thereto, including those imposed by
Federal and state securities laws.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6. Not a Contract of
Service.  So long as the Optionee shall continue to be an
consultant of the Company or one or more of its subsidiaries or affiliates, the
Option shall not be affected by any change in the Optionee’s
services.  Nothing in this Option Agreement shall confer upon the
Optionee any right to continue in the service of the Company or of any of its
subsidiaries or affiliates, or interfere in any way with the right of the
Company or any such subsidiary or affiliate to terminate the services of the
Optionee at any time.

      

      7. Method of Exercising
Option.

      

      (a)
Subject to the terms and conditions of this Option Agreement and such
administrative regulations as may be adopted by the Compensation Committee of
the Board of Directors of the Company (the “Committee”), the Option may be
exercised by written notice to the Chief Financial Officer of the Company at the
principal office of the Company.  Such notice shall state the election
to exercise the Option and the number of Option Shares in respect of which it is
being exercised, and shall be signed by the person so exercising the
Option.  Such notice shall be accompanied by payment of the full
exercise price of such Option Shares, which payment shall be made either (i) in
cash, (ii) certified check or bank draft payable to the Company or (iii) by
delivery of shares of Common Stock of the Company with a Fair Market Value equal
to the exercise price, or by a combination of (i), (ii) and/or (iii) which
together shall equal the exercise price.  The certificate or
certificates for the Option Shares as to which the Option shall have been so
exercised shall be registered in the name of the person so exercising the
Option, or if the Optionee so elects, in the name of the Optionee or one other
person as joint tenants, and shall be delivered as soon as practicable after the
notice shall have been received.

      

      (b) For
purposes of this Agreement, “Fair Market Value” of the Common Stock on any given
date shall be determined by the Committee under the Plan as follows: (a) if the
Common Stock is listed for trading on one or more national securities exchanges,
or is traded on the automated quotation system of NASDAQ (the “NASDAQ”), the
average of the highest and lowest reported sales prices on the principal such
exchange or on NASDAQ on the date in question, or, if such Common Stock shall
not have been traded on such principal exchange on such date, the average of the
highest and lowest reported sales prices on such principal exchange or on NASDAQ
on the first day prior thereto on which such Common Stock was so traded; or (b)
if the Common Stock is not listed for trading on a national securities exchange
or on NASDAQ, as determined in good faith by the Committee, which determination
shall be final and binding on all parties.

      

      8. Withholding
Requirements.  Upon exercise of the Option by the Optionee and
prior to the delivery of Option Shares purchased pursuant to such exercise, the
Company shall have the right to require the Optionee to remit to the Company
cash or shares of Common Stock in an amount sufficient to satisfy applicable
federal and state tax withholding requirements.  The Company shall,
within two (2) business days after receiving from the Optionee notice that such
Optionee intends to exercise, or has exercised, all or a portion of the Option,
inform the Optionee as to whether it will require the Optionee to remit cash or
Common Stock for withholding taxes in accordance with the preceding
sentence.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      9. Adjustments.  The
number, class and price per share covered by the Option shall be adjusted by the
Committee, whose good faith determination with respect thereto shall be
conclusive, to reflect any stock dividend, common stock split, share
combination, exchange of shares, merger, consolidation, recapitalization,
separation, reorganization, liquidation or extraordinary dividend payable in
stock of a corporation other than the Company, all for the purpose of providing
dilution protection for the Common Stock, such that Optionee shall be entitled
to purchase the number of shares which Optionee would have been entitled to
receive immediately following such event had this Option been exercised in full
immediately prior to such event.

      

      10. General.  The
Company shall at all times during the term of the Option reserve and keep
available such number of shares of Common Stock as will be sufficient to satisfy
the requirements of
this Option Agreement, shall pay all original issue and transfer taxes with
respect to the issue and transfer of shares pursuant hereto and all other fees
and expenses necessarily incurred by the Company in connection therewith, and
will from time to time use its best efforts to comply with all laws and
regulations which, in the opinion of counsel for the Company, shall be
applicable thereto.

      

      11.Termination.  In
the event an Optionee’s continuous status as an consultant of the Company or a
subsidiary or affiliate of the Company terminates (other than for cause, as
determined by the Company)  Optionee (or his estate of legal
representatives, as the case may be) may exercise his Option, to the extent the
Optionee shall have been entitled to do so at the date of his or her termination
pursuant to Section 4 hereof, for a period of 90 days following  the
date of such termination, or, for a longer period of time as may be determined
by the Committee, but in no event later than the expiration of the term of the
Option, and to the extent that the Option is not exercised within such 90 day
period, the Option shall thereupon terminate and be of no further force or
effect.  In the event that termination is for cause, the Option, to
the extent not exercised on or before the date of termination, shall thereupon
terminate and be of no further force or effect.

       

      12. Incorporation by Reference
of Plan Provisions.  Each and every one of the terms,
conditions and limitations of the Plan is hereby incorporated herein by this
reference, and all such terms, conditions and limitations supersede any
inconsistent provisions contained herein.  By accepting the grant of
the Option covered by this Agreement, the Optionee hereby expressly acknowledges
that he has received and read a copy of the Plan and that he agrees to be bound
by the terms, conditions and limitations of the Plan and this
Agreement.

       

      13. Status.  Neither
the Optionee nor the Optionee's executor, administrator, heirs or legatees shall
be or have any rights or privileges of a shareholder of the Company in respect
of the Option Shares issuable upon exercise of the Option granted hereunder
unless and until the Option is validly exercised and the Company has caused the
Optionee's name to be entered as the shareholder of record on the books of the
Company.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      14. Company
Authority.  The existence of the Option herein granted shall
not affect in any way the right or power of the Company or its shareholders to
make or authorize any or all adjustments, recapitalizations, reorganizations or
other changes in the Company's capital structure or its business, or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock of the Company or
the rights thereof, or dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise.

       

      15. Disputes.  As
a condition of the granting of the Option herein granted, the Optionee agrees,
for the Optionee and the Optionee’s personal representatives, that any dispute
or disagreement which may arise under or as a result of or pursuant to this
Option Agreement shall be determined by the Committee, in its sole discretion,
and that any interpretation by the Committee of the terms of this Option
Agreement shall be final, binding and conclusive.

       

      16. Binding
Effect.  This Option Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties hereto.

       

      17. Governing
Law.  This Option Agreement is a New York contract and shall be
construed under and be governed in all respects by the laws of New York, without
giving effect to the conflict of laws principles of New York law.

      

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      IN WITNESS
WHEREOF, the Company has caused this Option Agreement to be duly executed
by an officer hereunto duly authorized, and the Optionee has hereunto set his or
her hand, all as of the day and year first above written.

       

      
        
          	 	      
                  DAIS
      ANALYTIC CORPORATION

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	      
                  /s/
      Timothy N. Tangredi 

                	 
	 	 	      
                  Name:
      Timothy N. Tangredi 

                	 
	 	 	      
                  Title:  
      President 

                	 
	 	 	 	 

        

      

       

      
        
          	 	      
                  OPTIONEE

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	      
                  /s/
      Harold Mandelbaum 

                	 
	 	 	      
                  Signature 

                	 
	 	 	 	 
	 	 	      
                  Name:    Harold
      Mandelbaum 

                	 
	 	 	      
                  Address:
      555 Fifth Avenue 

                	 
	 	 	      
                                   
      9th Floor 

                	 
	 	 	      
                                   
      New York, N.Y. 10017Unassociated Document

    Exhibit
10.2

     

    EMPLOYMENT
AGREEMENT

    GARY
C. CAMPANARO

     

    EMPLOYMENT
AGREEMENT (the "Agreement"), executed on June 24, 2009, and effective as of
January 19, 2009, by and between El Pollo Loco, Inc. (the "Company") and Gary C.
Campanaro (the "Executive").

     

    WHEREAS,
the Company considers it essential to its best interests and the best interests
of its stockholders to employ Executive and to enter into an agreement embodying
the terms of such employment; and

     

    WHEREAS,
Executive is willing to accept employment on the terms hereinafter set forth in
this Agreement.

     

    NOW,
THEREFORE, in consideration of the premises 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 provisions of Section 8 of this
Agreement, Executive shall be employed by the Company for a period commencing on
a date no later than January 19, 2009 (the date on which employment commences,
the "Effective Date") and ending on December 31, 2009 (the "Employment Term") on
the terms and subject to the conditions set forth in the
Agreement.  Notwithstanding the preceding sentence, commencing with
January 1, 2009 and on each January 1 thereafter (each an "Extension Date"), the
Employment Term shall be automatically extended for an additional one-year
period, unless the Company or Executive provides the other party hereto at least
sixty days prior written notice before the next Extension Date that the
Employment Term shall not be so extended.  For the avoidance of doubt,
the term "Employment Term" shall include any extension that becomes applicable
pursuant to the preceding sentence.

     

    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 Senior Vice
President and 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.  In such position, Executive shall have such duties and
authority as shall be determined from time to time by the Chief Executive
Officer 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”); provided that
Executive shall be permitted to participate in such charitable and
community-related services as Executive may choose; provided further that
such services do not materially interfere with his duties
hereunder.

     

    3.           Compensation.

     

    a.           During
the Employment Term, the Company shall pay Executive a base salary (the "Base
Salary") at the annual rate of $250,000.00 and a $500.00 per month business
transportation allowance (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 and/or the business transportation allowance, 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") calculated, in
accordance with Exhibit A attached hereto, with a targeted bonus equal to
seventy-five percent (75%) of Executive's then current Base Salary (the "Target
Bonus"). Notwithstanding the foregoing, Executive shall be guaranteed a minimum
bonus payout of $60,000.00 for the 2009 fiscal year.

     

    4.           Equity.

     

    a.           Option
Grant.  Executive will receive a stock option award to purchase
11,123 shares of common stock of Chicken Acquisition Corp. on such terms and
conditions provided for in a stock option agreement substantially in the form
attached hereto as Exhibit B (the "Option Agreement").

     

    b.           Additional Equity
Investment.  Subject to the execution of the Stockholders
Agreement dated as of November 18, 2005, among the
Company, and certain other stockholders of the Company, Executive
may invest in Chicken Acquisition Corp common stock.

     

    5.           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 three
(3) weeks per each 12-month period or additional weeks on a basis consistent
with Company policy.

     

    
      
         

      

      
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    6.           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.

     

    7.           Termination.  The
Employment Term and Executive's employment hereunder may be terminated by either
party at any time and for any reason; provided that
Executive will be required to give the Company at least 30 days advance written
notice of any resignation of Executive's employment.  Notwithstanding
any other provision of this Agreement, the provisions of this Section 7 shall
exclusively govern Executive's rights upon termination of employment with the
Company and its affiliates.

     

    a.           By the Company For Cause or
By Executive's Resignation without Good Reason.

     

    (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 action by the Executive that
constitutes misconduct, dishonesty, the failure to comply with specific
directions of the Board that are consistent with the terms hereof (after having
been given a reasonably detailed written notice of, and a period of 20 days to
cure, such misconduct or failure), a deliberate and premeditated act against the
Company or its Affiliates, the commission of a felony, substance abuse or
alcohol abuse which renders the Executive unfit to perform his duties, or any
breach of the covenants set forth in Section 8 of this Agreement.  Any
voluntary termination of employment by the Executive in anticipation of an
involuntary termination of the Executive's employment for Cause shall be deemed
to be a termination for Cause.

     

    (iii)           If
Executive's employment is terminated by the Company for Cause, or if Executive
resigns without Good Reason, Executive shall be entitled to
receive:

     

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

     

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

     

    (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 (the amounts described in clauses (A)
through (D) hereof being referred to as the "Accrued Rights").

     

    Following
such termination of Executive's employment by the Company for Cause or
resignation by Executive without Good Reason, except as set forth in this
Section 7(a), Executive shall have no further rights to any contract damages,
other compensation or any other benefits under this Agreement.

     

    
      
         

      

      
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    b.           Disability or
Death.

     

    (i)           The
Employment Term and Executive's employment hereunder shall terminate upon
Executive's death and if Executive becomes physically or mentally incapacitated
and is therefore unable for a period of six (6) consecutive months or for an
aggregate of nine (9) months in any twenty-four (24) consecutive month period to
perform Executive's duties (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

     

    (B)           a
pro rata portion of any Annual Bonus that the Executive would have been entitled
to receive pursuant to Section 4 hereof in such year based upon the percentage
of the calendar year that shall have elapsed through the date of Executive's
termination of employment, payable when such Annual Bonus would have otherwise
been payable had the Executive's employment not terminated,

     

    Following
Executives termination of employment due to death or Disability, except as set
forth in this Section 7(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 by the Company outside Orange County, California; or

     

    (B)           a
reduction of Executive's title as set forth in Section 2(a) hereof;
or

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

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

     

    (D)           the
failure of the Company to provide or cause to be provided to Executive any of
the employee benefits described in Section 5 hereof; or

     

    (E)           a
change in Executive's reporting relationship; or

     

    (F)           resignation
after Executive reaches the age of 60; provided that none of
the events described in clauses (A) through (E) of this Section 7(c)(ii) shall
constitute Good Reason unless Executive shall have notified the Company in
writing describing the events which constitute Good Reason and then only if the
Company shall have failed to cure such event within thirty days after the
Company's receipt of such written notice.

     

    (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)           a
pro rata portion of any Annual Bonus that the Executive would have been entitled
to receive pursuant to Section 4 hereof in such year based upon the percentage
of the calendar year that shall have elapsed through the date of Executive's
termination of employment, payable when such Annual Bonus would have otherwise
been payable had the Executive's employment not terminated; and

     

    (C)           except
in the case of Executive's resignation for Good Reason pursuant to clause
(c)(ii)(F) of this Section 7, and subject to Executive's continued compliance
with the provisions of Section 8 and 9, continued payment of the Base Salary
until twelve 12 months after the date of such termination; provided that
aggregate amount described in this clause (C) shall be reduced by the amount of
any other cash severance or termination benefits payable to Executive under any
other plans, programs or arrangements of the Company or its
affiliates.

     

    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 7(c), Executive shall have no
further rights to any contract damages, other compensation or any other benefits
under this Agreement.

     

    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.

     

    
      
         

      

      
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    8.           Non-Competition.  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees as follows:

     

    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 "Non-Competition
Period"), the Executive will not directly or indirectly, (i) engage in
any business that operates quick service restaurants that compete directly with
the business of El Pollo Loco, Inc. or its Affiliates in any market in which the
Company or its Affiliates operate restaurants or have targeted operating
restaurants at the time of termination of Executive's employment (a "Competitive
Business"), (ii) enter the employ of, or render any services (including in an
advisory capacity, consulting capacity, or otherwise) to, any person engaged in
a Competitive Business, (iii) acquire a financial interest in, or otherwise
become actively involved with, any person engaged in a Competitive Business,
directly or indirectly, as an individual, partner, shareholder, officer,
director, principal, agent, trustee or consultant, or (iv) 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.  Notwithstanding the foregoing, Executive may, directly or
indirectly own, solely as an investment, securities of any person engaged in
Competitive Business which are publicly traded on a national or regional stock
exchange or on the over-the-counter market if Executive (i) is not a controlling
person of, or a member of a group which controls, such person and (ii) does not,
directly or indirectly, own 5% or more of any class of securities of such
person.

     

    b.           Executive
further agrees that during the Non-Competition 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, (ii)
solicit or encourage any employee who was employed by the Company or its
Affiliates as of the date of Executive's termination of employment with the
Company or who left the employment of the Company or its Affiliates within one
year prior to or after the termination of Executive's employment with the
Company, or (iii) solicit or encourage to cease to work with the Company or its
Affiliates any consultant then under contract with the Company or its
Affiliates.

     

    c.           It
is expressly understood and agreed that although Executive and the Company
consider the restrictions contained in this Section 8 to be reasonable, if a
final judicial determination is made by a court of competent jurisdiction that
the time or territory or any other 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.

     

    
      
         

      

      
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    9.           Confidentiality.  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, 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 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, except that he
may retain personal notes, notebooks and diaries that do not contain
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.

     

    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 8 or Section 9
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, without posting any bond, 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.           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.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

    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 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 Agreement, 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

    

    With a
copy to:

    

    Trimaran
Capital Partners

    1325
Avenue of the Americas, 34th
Floor

    New York,
NY 10019

    Attn:
Dean Kehler

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    And
to

    

    Mistral
Equity Partners

    650 Fifth
Avenue, 31st
Floor

    New York,
New York 10019

    Attn:
Andrew Heyer

    

    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.           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.

     

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year first above written.

    
    

     

    
      	 	      
              /s/ Gary
      Campanaro

              GARY
      C. CAMPANARO

               

              CHICKEN
      ACQUISITION CORP. on behalf
of:

            

    

     

    
      
        	 	EL
      POLLO LOCO, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Steve
      Carley	 
	 	 	Name:
      Steve Carley	 
	 	 	Title: President	 
	 	 	 	 

      

       

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Exhibit
A

     

    Annual
Bonus Calculation

     

    (i)           Bonuses
for any calendar year will be established by reference to budgeted "EBITDA" for
such calendar year ("Budgeted EBITDA"), with EBITDA defined as it is defined in
the Administrative Guidelines relating to the El Pollo Loco Incentive Plan for
such calendar year.  Budgeted EBITDA will be established by the
Company's Board of Directors (following annual plan reviews with the Company's
management) within the first three months of each calendar year during the
Employment Term.

     

    The bonus
for any calendar year will in no event exceed 150% of the Target Bonus for such
calendar year and will be calculated on the basis of the extent of attainment of
Budgeted EBITDA for such calendar year as follows:

     

    
      	
              EBITDA
      as Percentage of Budgeted EBITDA

            	
              Percent
      of Target Bonus To Be Paid EBITDA

            
	
              Less
      than 90%

            	
              0%

            
	
              90%

            	
              25%

            
	
              100%

            	
              100%

            
	
              125%
      or more

            	
              150%

            

    

    

    For
purposes of calculating bonuses in the event that EBITDA exceeds 90% of budgeted
EBITDA but is less than 125% of Budgeted EBITDA, payout amounts shall be
calculated in accordance with the following interpolative
principles:

     

    
      	
              !

            	
              Between
      90% of Budgeted EBITDA and 100% of Budgeted EBITDA, the payout will be
      based on a linear sliding scale between 25% and 100% of the Target Bonus
      (e.g., at 95% of Budgeted EBITDA, the payout will equal 62.5% of the
      Target Bonus, and, at 98% of Budgeted EBITDA, the payout will equal 85% of
      the Target Bonus); and

            

    

     

    
      	
              !

            	
              Between
      100% of Budgeted EBITDA and 125% of Budgeted EBITDA, the payout will be
      based on a linear sliding scale between 100% and 150% of the Target Bonus
      (e.g., at 110% of Budgeted EBITDA, the payout will equal 120% of the
      Target Bonus, and, at 120% of Budgeted EBITDA, the payout will equal 140%
      of the Target Bonus).

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    OFFICERS
FORM

     

    NON-QUALIFIED STOCK OPTION
AGREEMENT

     

    AGREEMENT,
dated as of ____________, 2009 between Chicken Acquisition Corp., a Delaware
corporation (the "Company"), and Gary C. Campanaro ,as Co-Trustee of the
Campanaro Living Trust, established August 8, 2006 (the
"Optionee").

     

    WITNESSETH:

     

    WHEREAS,
the Company, acting through its Board of Directors (the "Board") has granted to the
Optionee, effective as of the date of this Agreement, an option to purchase
shares of common stock, par value $.01, of the Company (the "Common Stock") on the terms
and subject to the conditions set forth in this Agreement;

     

    NOW,
THEREFORE, in consideration of the premises and of the mutual agreements
contained in this Agreement, the parties hereto agree as follows:

     

    SECTION
1.  Definitions.  As
used in this Agreement, the following terms have the meanings set forth
below:

     

    "Affiliate" shall have the
meaning assigned to such term in Rule 12b-2 promulgated under the Exchange
Act.

     

    "Board" has the meaning
ascribed to such term in the first recital of this Agreement.

     

    "Cause" means action by the
Optionee that constitutes misconduct, dishonesty, the failure to comply with
specific directions of the Board or the board of directors of EPL, Inc. that are
consistent with the terms of any employment agreement between EPL, Inc. and the
Optionee (after having been given a reasonably detailed written notice of, and a
period of 20 days to cure, such misconduct or failure), a deliberate and
premeditated act against the Company or its Affiliates, the commission of a
felony or substance abuse or alcohol abuse which renders the Optionee unfit to
perform his duties.  Any voluntary termination of employment by the
Optionee in anticipation of an involuntary termination of the Optionee's
employment for Cause shall be deemed to be a termination for Cause.

     

    "Change in Control" shall
mean:

     

    
      	(a)	the
      failure of the Permitted Holders collectively to beneficially own at least
      40% of the total then outstanding Shares (unless such failure occurs as a
      result of a Public Offering);
	 	 
	
              (b)

            	
              there
      is consummated a sale, in one or more related transactions, of all or
      substantially all of the assets of the Company and its Subsidiaries to a
      Person other than a Permitted Holder;
or

            

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

      
        	(c)	approval
      by the Stockholders of a complete liquidation or dissolution of the
      Company.

    

     

    "Common Stock" has the meaning
ascribed to such term in the first recital of this Agreement.

     

    "Cumulative EBITDA" means, with
respect to each fiscal year of EPL, Inc., the actual aggregate amount of EBITDA
of the Company and its consolidated subsidiaries for the period commencing on
January 1, 2009 and ending on the last day of such fiscal year (with such period
being treated as one accounting period for such purposes).

     

    "Cumulative EBITDA Target"
means, with respect to each fiscal year of the Company, an amount as determined
by the Board in its sole discretion with respect to such year.

     

    "EBITDA" means the income of
EPL, Inc. (i) before, without duplication, interest expense, amortization of
deferred financing fees and acquisition related bank/financing fees, income
taxes, depreciation and amortization, (ii) before gains (or losses) on the sale
of EPL, Inc. operated restaurants or other significant assets and (iii) after
all bonuses and profit sharing expenses of the Company of any kind.

     

    "EBITDA Target" means, with
respect to each fiscal year of EPL, Inc., an amount as determined by the Board
in its sole discretion with respect to such year.

     

    "EPL, Inc." shall mean El Pollo
Loco, Inc., a Delaware corporation.

     

    "Exercise Notice" has the
meaning ascribed to such term in Section 5 of this Agreement.

     

    "Fair Market Value" of a share
of Common Stock on any date shall be, if the Common Stock is listed on a
national stock exchange, the officially quoted closing price on such stock
exchange, or if the Common Stock is listed on the NASDAQ National Market, the
officially quoted closing price on NASDAQ, or, if the Common Stock is listed on
NASDAQ but not on the National Market, the average of the closing bid and asked
prices reported by NASDAQ, in each case on the date as of which the value is to
be determined (or if such date is not a trading day, as of the preceding trading
day), or if the Common Stock is not so listed, the fair market value determined
in good faith by the Board.

     

    "Option" has the meaning
ascribed to such term in Section 2 of this Agreement.

     

    "Option Shares" has the meaning
ascribed to such term in Section 2 of this Agreement.

     

    "Option Term" has the meaning
ascribed to such term in Section 3 of this Agreement.

     

    "Person" means any individual,
partnership, limited liability company, corporation, group, trust or other legal
entity.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    "Permitted Holders" shall mean
any of the following: Trimaran Fund II, L.L.C., Trimaran Parallel Fund II, L.P.,
Trimaran Capital, L.L.C., CIBC Employee Private Equity Fund (Trimaran) Partners,
CIBC Capital Corp., Trimaran Pollo Partners, L.L.C, FS Equity Partners V, L. P,
FS Affiliates V, L. P. (or any investment fund or other entity directly or
indirectly Controlled by or under common Control with any of the
foregoing).

     

    "Public Offering" shall mean
a public offering and sale of Company Common Stock for cash pursuant to an
effective registration statement under the Securities Exchange Act of 1934, as
amended from time to time, with an aggregate public offering price of at least
$50,000,000.

     

    "Shares" means, collectively,
the shares of Common Stock subject to the Option, whether such shares are Option
Shares or Vested Shares.

     

    "Stockholders Agreement" means
the Stockholders Agreement, dated as of November 18, 2005, among the Company, and certain
other stockholders of the Company, as it may be amended from time to
time.

     

    "Vested Shares" means the
option Shares with respect to which the Option is exercisable at any particular
time.

     

    SECTION
2.  Option;
Option Price.  On the terms and subject to the conditions of
this Agreement, the Optionee shall have the option (the "Option") to purchase up to
11,123 shares (the "Option
Shares") of Common Stock at the price of $______ per Option Share (the
"Option
Price").

     

    SECTION
3.  Term.  The
term of the option (the "Option
Term") shall commence on the date hereof and expire on the tenth
anniversary of the date hereof, unless the Option shall theretofore have been
terminated in accordance with the terms of this Agreement.

     

    SECTION
4.  Time of
Exercise.

     

    (a)         Unless
accelerated as otherwise provided in Section 4(b), 4(c), 15(b) of this
Agreement, the Option shall become exercisable as to 100% of the Option Shares
on the _____________ month after the date hereof.

     

    (b)         (1)  On
the last day of each of the Company's fiscal years beginning with the fiscal
year ending December 31, 2009 through the fiscal year ending December 31, 2014
(each, an "Accelerated Vesting
Date"), if the Company's EBITDA for the fiscal year ending on such
Accelerated Vesting Date is equal to or exceeds the EBITDA Target for such
fiscal year, then the Option shall immediately become exercisable in accordance
with the following schedule:

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	 	      
              18%
      (2,002 shares)

               

              20%
      (2224 shares)

               

              20%
      (2224 shares)

               

              20%
      (2225 shares)

               

              20%
      (2225 shares)

               

              2% 
      (223 shares)

            	
              Fiscal
      Year 2009

               

              Fiscal Year 2010

               

              Fiscal Year 2011

              Fiscal Year 2012

               

              Fiscal Year 2013

               

              Fiscal Year 2014

            

    

     

    (ii)           Notwithstanding
any failure by the Company to meet the EBITDA Target for any fiscal year, the
portion of the Option which would have become exercisable pursuant to subsection
(i) above on the applicable Accelerated Vesting Date shall become exercisable on
a subsequent Accelerated Vesting Date if, with respect to such subsequent
Accelerated Vesting Date, the Company's Cumulative EBITDA for the fiscal year
ending on such Accelerated Vesting Date is equal to or greater than the
Cumulative EBITDA Target for such fiscal year.

     

    (c)         In
the event the Company makes any capital expenditures not contemplated by the
projections upon which the EBITDA and Cumulative EBITDA Targets are based, or
consummates any mergers or acquisitions or divestitures (whether of assets or
stock or other interests) or other extraordinary actions, the Board will
determine in good faith appropriate adjustments to the EBITDA and Cumulative
EBITDA Targets, which adjustments shall be final and binding.

     

    (d)         Except
as otherwise provided in Section 7, the Option shall remain exercisable as to
all such Vested Shares until the expiration of the Option Term.

     

    SECTION
5.  Procedure for
Exercise.

     

    (a)         The
Option may be exercised with respect to Vested Shares, from time to time, in
whole or in part (but for the purchase of whole shares only), by delivery of a
written notice (the "Exercise Notice") from the Optionee
to the Company, which Exercise Notice shall:

     

    (i)           state
that the Optionee elects to exercise the Option;

     

    (ii)           state
the number of Vested Shares with respect to which the Optionee is exercising the
Option;

     

    (iii)           in
the event that the Option shall be exercised by the representative of the
Optionee's estate pursuant to Section 12, include appropriate proof of the right
of such Person to exercise the Option;

     

    (iv)           state
the date upon which the Optionee desires to consummate the purchase of such
Vested Shares (which date must be prior to the termination of the Option);
and

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

       

    

    (v)           comply
with such further provisions as the Company may reasonably require.

     

    (b)         Payment
of the Option Price for the Vested Shares to be purchased on the exercise of the
Option shall be made by certified or bank cashier's check payable to the order
of the Company, delivery of shares of Common Stock held for at least six months,
valued at their Fair Market Value as of the trading day immediately prior to the
date of exercise or by a combination of any of the foregoing means of
payment.

     

    (c)         As
a condition to the exercise of the Option and prior to the issuance of any
Vested Shares, the Optionee (or the representative of his estate) shall be
required to execute the Stockholders Agreement with respect to the Option
Shares.

     

    (d)         The
Company shall be entitled to require, as a condition of delivery of the Vested
Shares, that the Optionee agree to remit and when due an amount in cash
sufficient to satisfy all current or estimated future federal, state and local
withholding, and employment taxes relating thereto.

     

    SECTION
6.  Dividends.  Upon
the payment of a dividend with respect to the Common Stock, the Optionee shall
be entitled to receive the economic equivalent of such dividend as if all
Options had been exercised for Common Stock prior to the payment of the
dividend.

     

    SECTION
7.  Termination of
Employment

     

    .  All
or any part of the Option, to the extent unexercised, shall terminate
immediately upon the Optionee's termination of employment with the Company or
any of its Affiliates, except that the Optionee shall have ninety (90) days
following the date of such termination of employment to exercise any portion of
the Option that he could have exercised on the date of such termination of
employment; provided, however, that such
exercise must be accomplished prior to the expiration of the Option
Term.  Notwithstanding the foregoing, if the Optionee's termination of
employment is due to his retirement, total and permanent disability (as
determined by the Board) or death, the Optionee, or the representative of the
estate of the Optionee, as the case may be, may exercise any portion of the
Option which the Optionee could have exercised on the date of such termination
for a period of nine months thereafter; provided, however, that such
exercise must be accomplished prior to the expiration of the Option
Term.  Notwithstanding the foregoing, in the event of a termination of
the Optionee's employment with the Company or any of its Affiliates for Cause,
the unexercised portion of the Option shall terminate immediately and the
Optionee shall have no right thereafter to exercise any part of the
Option.  Notwithstanding the preceding, any portion of the Option
which is not exercisable at the time of termination of the Optionee's employment
(for any reason) shall terminate and become null and void.

     

    SECTION
8.  Non-Competition

     

    .  (a)  The
Optionee agrees that during the term of employment and until the first
anniversary of the date of termination of the Optionee's employment with the
Company or any direct or indirect subsidiary of the Company, as the case may be,
such Optionee will not directly or indirectly, (i) engage in any business that
operates quick service restaurants that compete directly with the business of
EPL, Inc. or its Affiliates in any market in which EPL, Inc. or its Affiliates
presently operate restaurants or have targeted operating restaurants at the time
of termination of such Optionee's employment (a "Competitive Business"), (ii)
enter the employ of, or render any services to, any Person engaged in a
Competitive Business, (iii) acquire a financial interest in, or otherwise become
actively involved with, any person engaged in a Competitive Business, directly
or indirectly, as an individual, partner, shareholder, officer, director,
principal, agent, trustee or consultant, or (iv) 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.  Notwithstanding the foregoing, the Optionee may, directly
or indirectly own, solely as an investment, securities of any Person engaged in
the business of the Company or its Affiliates which are publicly traded on a
national or regional stock exchange or on the over-the-counter market if the
Optionee (i) is not a controlling Person of, or a member of a group which
controls, such Person and (ii) does not, direct or indirectly, own 5% or more of
any class of securities of such Person.

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

       

    

    (b) It is expressly understood and
agreed that although Optionee and Company consider the restrictions contained in
this Section 8 and the following Section 9 to be reasonable, if a final judicial
determination is made by a court of competent jurisdiction that the time or
territory or any other restriction contained in this Agreement is an
unenforceable restriction against Optionee, 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.

     

    SECTION
9.  Non-Solicitation

     

    .  The
Optionee further agrees that during the term of employment and until the first
anniversary of the date of termination of the Optionee's employment with the
Company or any direct or indirect subsidiary of the Company, such Optionee 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, (ii) hire any such employee who was employed by the Company or its
Affiliates as of the date of Optionee's termination of employment with the
Company or who left the employment of the Company or its Affiliates within two
years prior to or after the termination of Optionee's employment with the
Company, or (iii) solicit or encourage to cease to work with the Company or its
Affiliates any consultant then under contract with the Company or its
Affiliates.

     

    SECTION
10.  No
Rights as a Stockholder

     

    .  Except
as set forth in Section 6, the Optionee shall not have any rights or privileges
of a stockholder with respect to any Shares unless and until certificates
representing such Shares shall be issued by the Company to such
Optionee.

     

    SECTION
11.  Additional Provisions
Related to Exercise

     

    .  In
the event of the exercise of the Option at a time when there is not in effect a
registration statement under the Securities Act of 1933, relating to the Shares,
the Optionee hereby represents and warrants, and by virtue of such exercise
shall be deemed to represent and warrant to the Company that the Option Shares
are being acquired for investment only and not with a view to the distribution
thereof, and the Optionee shall provide the Company with such further
representations and warranties as the Board may reasonably require in order to
ensure compliance with applicable federal and state securities, "blue sky" and
other laws.  No Shares shall be purchased upon the exercise of the
Option unless and until the Company and/or the Optionee shall have complied with
all applicable federal or state registration, listing and/or qualification
requirements and all other requirements of law or of any regulatory agencies
having jurisdiction.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

       

    

    SECTION
12.  Restriction on
Transfer.

     

    (a)         The
Option may not be transferred, pledged, assigned, hypothecated or otherwise
disposed of in any way by the Optionee and may be exercised during the lifetime
of the Optionee only by the Optionee.  If the Optionee dies, the
Option shall thereafter be exercisable, during the period specified in Section
7, by the representative of his estate to the full extent to which the Option
was exercisable by the Optionee at the time of his death.  The Option
shall not be subject to execution, attachment or similar
process.  Any attempted assignment, transfer, pledge, hypothecation or
other disposition of the Option contrary to the provisions hereof, and the levy
of any execution, attachment or similar process upon the Option, shall be null
and void and without effect.

     

    (b)         Any
shares issued to the Optionee upon exercise of the Option shall be subject to
the restrictions contained in the Stockholders Agreement and shall be deemed
Stock (as defined in the Stockholders Agreement) for all purposes
thereunder.

     

    SECTION
13.  Restrictive
Legend

     

    .  All
stock certificates representing shares issued upon exercise of the Option shall,
unless otherwise determined by the Board, have affixed thereto a legend
substantially in the following form:

     

    "THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A STOCKHOLDERS' AGREEMENT
AMONG EPL HOLDINGS, INC., EPL INTERMEDIATE, INC. AND CERTAIN MINORITY
STOCKHOLDERS NAMED THEREIN, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
COMPANY.  NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR
OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH STOCKHOLDERS'
AGREEMENT.  THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS
CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH STOCKHOLDERS'
AGREEMENT."

     

    "THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933.  THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF EITHER AN
EFFECTIVE REGISTRATION STATEMENT FOR THESE SHARES UNDER THE SECURITIES ACT OF
1933 OR AN OPINION OF COUNSEL THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT."

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

       

    

    SECTION
14.  Optionee's
Employment

     

    .  Nothing
in the Option shall confer upon the Optionee any right to continue in the employ
of the Company or any of its Affiliates or interfere in any way with the right
of the Company or its Affiliates or stockholders, as the case may be, to
terminate the Optionee's employment or to increase or decrease the Optionee's
compensation at any time.

     

    SECTION
15.  Adjustment.

     

    (a)         Subject
to Section 12(b), if the Common Stock is changed by reason of a stock split,
reverse stock split, stock dividend or recapitalization, or converted into or
exchanged for other securities as a result of a merger, consolidation or
reorganization, the Board shall make such adjustment in the number and class of
shares of stock subject to the Option, and such adjustments to the Option Price,
as shall be equitable and appropriate in its good faith judgment under the
circumstances.

     

    (b)         The
following rules shall apply in connection with the occurrence of a Public
Offering or Change in Control, as applicable:

     

    (i)           If
the Public Offering occurs less than two years following the Effective Date, the
Optionee shall be given (A) written notice of such Public Offering at least 20
days prior to its proposed effective date (as specified in such notice) and (B)
an opportunity during the period commencing with delivery of such notice and
ending 10 days prior to such proposed effective date, to exercise (x) the Vested
Shares and (y) fifty percent (50%) of the Shares subject to the Option that are
unvested as of the date of the notice (the "Accelerated Shares"), contingent
upon the effectiveness of such Public Offering.  Upon
the occurrence of the Public Offering, the Vested Shares and the
Accelerated Shares shall thereafter be fully vested and remain exercisable in
accordance with the terms of the original grant.  The other fifty
percent (50%) of the Shares subject to the Option that remain unvested upon the
occurrence of the Public Offering shall automatically terminate and the Optionee
shall be entitled to receive a grant of restricted stock in the company subject
to the initial public offering with an economic value equal to Fair Market Value
(measured at the close of business of the first day of public trading) of the
shares underlying the terminated unvested Options minus the aggregate exercise
price of such options.

     

    (ii)           If
a Public Offering occurs more than two years following the Effective Date or if
a Change in Control occurs following the Effective Date, the Optionee shall be
given (A) written notice of such Public Offering or Change in Control, as
applicable, at least 20 days prior to its proposed effective date (as specified
in such notice) and (B) an opportunity during the period commencing with
delivery of such notice and ending 10 days prior to such proposed effective
date, to exercise the Option in full, contingent upon the effectiveness of such
Public Offering or Change in Control.  Upon the occurrence of the
Public Offering, the Option shall thereafter be fully vested and remain
exercisable in accordance with the terms of the original grant.  Upon
the occurrence of a Change in Control, the Option shall be fully vested provided
however that, to the extent the Option is not exercised, the Option shall
automatically terminate unless provision is made in connection with the Change
in Control, as applicable for the assumption of the Option by, or the
substitution for the Option of new options covering the stock of, the
surviving successor of purchasing corporation, or a parent or subsidiary
thereof, with appropriate adjustments as to the number, kind and option price of
shares subject to the Option.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    (c)          
The following rules shall apply in connection with Section 15(a) and (b)
above:

     

    (i)           
no fractional shares shall be issued as a result of any such adjustment, and any
fractional shares resulting from the computations pursuant to Section 15(a) or
(b) shall be eliminated without consideration from the Option;

     

    (ii)           
no adjustment shall be made for the issuance to stockholders of rights to
subscribe for additional shares of Common Stock or other securities;
and

     

    (iii)           any
adjustment referred to in Section 15(a) or (b) shall be made by the Board in its
sole discretion and shall be conclusive and binding on the
Optionee.

     

    SECTION
16.  Notices

     

    .  All
notices, claims, certificates, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given and
delivered if personally delivered or if sent by nationally recognized overnight
courier, by telecopy or by registered or certified mail, return receipt
requested and postage prepaid, addressed as follows:

     

    (a)           if
to the Company, to it at:

     

    Chicken
Acquisition Company

    c/o
Trimaran Capital Partners

    1325
Avenue of the Americas, 34th
Floor

    New York,
NY 10019

     

    Attn:
Dean Kehler

    

    With a
copy to:

    

    General
Counsel

    El Pollo
Loco

    3535
Harbor Blvd., Suite 100

    Costa
Mesa, CA 92626

     

    (b)         if
to the Optionee, to him at such Optionee's address as most recently supplied to
the Company and set forth in the Company's records or to such other address as
the party to whom notice is to be given may have furnished to the other party in
writing in accordance herewith.  Any such notice or communication
shall be deemed to have been received (i) in the case of personal delivery,
on the date of such delivery (or if such date is not a business day, on the next
business day after the date sent), (ii) in the case of nationally-recognized
overnight courier, on the next business day after the date sent, (iii) in the
case of telecopy transmission, when received (or if not sent on a business day,
on the next business day after the date sent), and (iv) in the case of mailing,
on the third business day following the date on which the piece of mail
containing such communication is posted.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    SECTION
17.  Waiver
of Breach.  The
waiver by either party of a breach of any provision of this Agreement must be in
writing and shall not operate or be construed as a waiver of any other or
subsequent breach.

     

    SECTION
18.  Optionee's
Undertaking.  The
Optionee hereby agrees to take whatever additional actions and execute whatever
additional documents the Company may in its reasonable judgment deem necessary
or advisable in order to carry out or effect one or more of the obligations or
restrictions imposed on the Optionee pursuant to the provisions of this
Agreement.

     

    SECTION
19.  Amendment.  This
Agreement may not be amended, terminated, suspended or otherwise modified except
in a written instrument, duly executed by both parties.

     

    SECTION
20.  Governing
Law.  This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Delaware (without giving effect to choice or conflict of law
principles).

     

    SECTION
21.  Consent
to Jurisdiction.  Each
party hereby agrees that any action to enforce which arises out of or in any way
relates to any of the provisions of this Agreement shall be brought and
prosecuted exclusively in any federal or state court located within the City of
New York; and the parties irrevocably and unconditionally submit to the
jurisdiction of such courts and to service or process by registered mail, return
receipt requested, or by any other manner provided by New York law.

     

    SECTION
22.  Counterparts.  This
Agreement may be executed in one or more counterparts, and each such counterpart
shall be deemed to be an original, but all such counterparts together shall
constitute but one agreement.

     

    SECTION
23.  Entire
Agreement.  This
Agreement (and the other writings incorporated by reference herein) constitute
the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior written or oral negotiations, commitments,
representations and agreements with respect thereto.

     

    SECTION
24.  Severability.  In
the event any one or more of the provisions of this Agreement should be held
invalid, illegal or unenforceable in any respect in any jurisdiction, the
validity, legality and enforceability of the remaining provisions of this
Agreement shall not in any way be affected or impaired thereby.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

       

    

    SECTION
25.  Code
Section 409A Compliance.  Notwithstanding any provision of this
Agreement, to the extent that the Committee determines that any Option granted
under this Agreement is subject to Section 409A of the Code and fails to comply
with the requirements of Section 409A of the Code, notwithstanding anything to
the contrary contained in this Agreement, the Committee reserves the right to,
in good faith, amend, restructure, or replace the Option in order to cause the
Option to either not be subject to Section 409A of the Code or to comply with
the applicable provisions of such section and in order to provide the Optionee
with substantially the same economic benefits without violating Section
409A.

    

    *     *     *

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

       

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Non-Qualified Stock
Option Agreement as of the date first written above.

     

    
      
        	 	CHICKEN
      ACQUISITION CORP.	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name:
      Steve Carley	 
	 	 	Title:
      Vice President	 
	 	 	 	 

      

    

     

    
      	 	OPTIONEE	 
	 	 	 	 
	
               

            	
              By:
      

            	 	 
	 	 	Name

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