Document:

Exhibit 10.18

 

NONQUALIFIED STOCK OPTION AGREEMENT

PURSUANT TO THE

ZOE’S KITCHEN, INC. 2014 OMNIBUS INCENTIVE PLAN

 

*  *  *  *  *

 

Participant:                     

 

Grant Date:                     

 

Per Share Exercise Price:  $           

 

Number of Shares subject to this Option:                     

 

*  *  *  *  *

 

THIS NON-QUALIFIED STOCK OPTION AWARD AGREEMENT (this “Agreement”), dated as of the Grant Date specified above, is entered into by and between Zoe’s Kitchen, Inc., a corporation organized in the State of Delaware (the “Company”), and the Participant specified above, pursuant to the Zoe’s Kitchen, Inc. 2014 Omnibus Incentive Plan, as in effect and as amended from time to time (the “Plan”), which is administered by the Committee; and

 

WHEREAS, it has been determined under the Plan that it would be in the best interests of the Company to grant the Non-Qualified Stock Option provided for herein to the Participant.

 

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

 

1.                                      Incorporation By Reference; Plan Document Receipt.  This Agreement is subject in all respects to the terms and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the Award provided hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were each expressly set forth herein.  Any capitalized term not defined in this Agreement shall have the same meaning as is ascribed thereto in the Plan.  The Participant hereby acknowledges receipt of a true copy of the Plan and that the Participant has read the Plan carefully and fully understands its content.  In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.  No part of the Option granted hereby is intended to qualify as an “incentive stock option” under Section 422 of the Code.

 

 

2.                                      Grant of Option.  The Company hereby grants to the Participant, as of the Grant Date specified above, a Non-Qualified Stock Option (this “Option”) to acquire from the Company at the Per Share Exercise Price specified above, the aggregate number of shares of Common Stock specified above (the “Option Shares”).  Except as otherwise provided by the Plan, the Participant agrees and understands that nothing contained in this Agreement provides, or is intended to provide, the Participant with any protection against potential future dilution of the Participant’s interest in the Company for any reason.  The Participant shall have no rights as a stockholder with respect to any shares of Common Stock covered by the Option unless and until the Participant has become the holder of record of such shares, and no adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of any such shares, except as otherwise specifically provided for in the Plan or this Agreement.

 

3.                                      Vesting and Exercise.

 

(a)                                 Vesting.  Subject to the provisions of Sections 3(b) and 3(c) hereof, the Option shall vest and become exercisable as follows, provided that the Participant has not incurred a Termination prior to each such vesting date:

 

	
Vesting Date
    	
 
    	
Number of Shares
    
	
[·]
    	
 
    	
[·]
    

 

There shall be no proportionate or partial vesting in the periods prior to each vesting date and all vesting shall occur only on the appropriate vesting date, subject to the Participant’s continued service with the Company or any of its Subsidiaries on each applicable vesting date.  Upon expiration of the Option, the Option shall be cancelled and no longer exercisable.

 

(b)                                 Committee Discretion to Accelerate Vesting.  Notwithstanding the foregoing, the Committee may, in its sole discretion, provide for accelerated vesting of the Option at any time and for any reason.

 

(c)                                  Expiration.  Unless earlier terminated in accordance with the terms and provisions of the Plan and/or this Agreement, all portions of the Option (whether vested or not vested) shall expire and shall no longer be exercisable after the expiration of ten (10) years from the Grant Date.

 

4.                                      Termination.  Subject to the terms of the Plan and this Agreement, the Option, to the extent vested at the time of the Participant’s Termination, shall remain exercisable as follows:

 

(a)                                 Termination due to Death or Disability.  In the event of the Participant’s Termination by reason of death or Disability, the vested portion of the Option shall remain exercisable until the earlier of (i) one (1) year from the date of such Termination, and (ii) the expiration of the stated term of the Option pursuant to Section 3(c) hereof; provided, however, that in the case of a Termination due to Disability, if the Participant dies within such one (1) year exercise period, any unexercised Option held by the Participant shall thereafter be exercisable by the legal representative of the Participant’s estate, to the extent to which it was exercisable at the

 

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time of death, for a period of one (1) year from the date of death, but in no event beyond the expiration of the stated term of the Option pursuant to Section 3(c) hereof.

 

(b)                                 Involuntary Termination Without Cause.  In the event of the Participant’s involuntary Termination by the Company without Cause, the vested portion of the Option shall remain exercisable until the earlier of (i) ninety (90) days from the date of such Termination, and (ii) the expiration of the stated term of the Option pursuant to Section 3(c) hereof.

 

(c)                                  Voluntary Resignation.  In the event of the Participant’s voluntary Termination (other than a voluntary Termination described in Section 4(d) hereof), the vested portion of the Option shall remain exercisable until the earlier of (i) ninety (90) days from the date of such Termination, and (ii) the expiration of the stated term of the Option pursuant to Section 3(c) hereof.

 

(d)                                 Termination for Cause.  In the event of the Participant’s Termination for Cause or in the event of the Participant’s voluntary Termination (as provided in Section 4(c) hereof) after an event that would be grounds for a Termination for Cause, the Participant’s entire Option (whether or not vested) shall terminate and expire upon such Termination.

 

(e)                                  Treatment of Unvested Options upon Termination.  Any portion of the Option that is not vested as of the date of the Participant’s Termination for any reason shall terminate and expire as of the date of such Termination.

 

5.                                      Method of Exercise and Payment.  Subject to Section 8 hereof, to the extent that the Option has become vested and exercisable with respect to a number of shares of Common Stock as provided herein, the Option may thereafter be exercised by the Participant, in whole or in part, at any time or from time to time prior to the expiration of the Option as provided herein and in accordance with Sections 6.4(c) and 6.4(d) of the Plan, including, without limitation, by the filing of any written form of exercise notice as may be required by the Committee and payment in full of the Per Share Exercise Price specified above multiplied by the number of shares of Common Stock underlying the portion of the Option exercised.

 

6.                                      Non-Transferability.  The Option, and any rights and interests with respect thereto, issued under this Agreement and the Plan shall not be sold, exchanged, transferred, assigned or otherwise disposed of in any way by the Participant (or any beneficiary of the Participant), other than by testamentary disposition by the Participant or the laws of descent and distribution.  Notwithstanding the foregoing, the Committee may, in its sole discretion, permit the Option to be Transferred to a Family Member for no value, provided that such Transfer shall only be valid upon execution of a written instrument in form and substance acceptable to the Committee in its sole discretion evidencing such Transfer and the transferee’s acceptance thereof signed by the Participant and the transferee, and provided, further, that the Option may not be subsequently Transferred other than by will or by the laws of descent and distribution or to another Family Member (as permitted by the Committee in its sole discretion) in accordance with the terms of the Plan and this Agreement, and shall remain subject to the terms of the Plan and this Agreement.  Any attempt to sell, exchange, transfer, assign, pledge, encumber or otherwise dispose of or hypothecate in any way the Option, or the levy of any execution, attachment or similar legal process upon the Option, contrary to the terms and

 

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provisions of this Agreement and/or the Plan shall be null and void and without legal force or effect.

 

7.                                      Governing Law.  All questions concerning the construction, validity and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the choice of law principles thereof.

 

8.                                      Withholding of Tax.  The Company shall have the power and the right to deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy any federal, state, local and foreign taxes of any kind (including, but not limited to, the Participant’s FICA and SDI obligations) which the Company, in its sole discretion, deems necessary to be withheld or remitted to comply with the Code and/or any other applicable law, rule or regulation with respect to the Option and, if the Participant fails to do so, the Company may otherwise refuse to issue or transfer any shares of Common Stock otherwise required to be issued pursuant to this Agreement.  Any minimum statutorily required withholding obligation with regard to the Participant may be satisfied by reducing the amount of cash or shares of Common Stock otherwise deliverable upon exercise of the Option.

 

9.                                      Entire Agreement; Amendment.  This Agreement, together with the Plan, contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter.  The Committee shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the Plan.  This Agreement may also be modified or amended by a writing signed by both the Company and the Participant.  The Company shall give written notice to the Participant of any such modification or amendment of this Agreement as soon as practicable after the adoption thereof.

 

10.                               Notices.  Any notice hereunder by the Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the General Counsel of the Company.  Any notice hereunder by the Company shall be given to the Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as the Participant may have on file with the Company.

 

11.                               No Right to Employment.  Any questions as to whether and when there has been a Termination and the cause of such Termination shall be determined in the sole discretion of the Committee.  Nothing in this Agreement shall interfere with or limit in any way the right of the Company, its Subsidiaries or its Affiliates to terminate the Participant’s employment or service at any time, for any reason and with or without Cause.

 

12.                               Transfer of Personal Data.  The Participant authorizes, agrees and unambiguously consents to the transmission by the Company (or any Subsidiary) of any personal data information related to the Option awarded under this Agreement for legitimate business purposes (including, without limitation, the administration of the Plan).  This authorization and consent is freely given by the Participant.

 

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13.                               Compliance with Laws.  The issuance of the Option (and the Option Shares upon exercise of the Option) pursuant to this Agreement shall be subject to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other law or regulation applicable thereto.  The Company shall not be obligated to issue the Option or any of the Option Shares pursuant to this Agreement if any such issuance would violate any such requirements.

 

14.                               Section 409A.  Notwithstanding anything herein or in the Plan to the contrary, the Option is intended to be exempt from the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent.

 

15.                               Binding Agreement; Assignment.  This Agreement shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns.  The Participant shall not assign (except in accordance with Section 6 hereof) any part of this Agreement without the prior express written consent of the Company.

 

16.                               Headings.  The titles and headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Agreement.

 

17.                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

 

18.                               Further Assurances.  Each party hereto shall do and perform (or shall cause to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the Plan and the consummation of the transactions contemplated thereunder.

 

19.                               Severability.  The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

20.                               Acquired Rights.  The Participant acknowledges and agrees that:  (a) the Company may terminate or amend the Plan at any time; (b) the award of the Option made under this Agreement is completely independent of any other award or grant and is made at the sole discretion of the Company; (c) no past grants or awards (including, without limitation, the Option awarded hereunder) give the Participant any right to any grants or awards in the future whatsoever; and (d) any benefits granted under this Agreement are not part of the Participant’s ordinary salary, and shall not be considered as part of such salary in the event of severance, redundancy or resignation.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	
 
    	
ZOE’S KITCHEN, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PARTICIPANT
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    
				

 

6Exhibit 10.19

 

ZOE’S KITCHEN, INC.

 

STOCKHOLDERS AGREEMENT

 

THIS STOCKHOLDERS AGREEMENT (this “Agreement”), dated as of [              ], 2014, is made by and among Zoe’s Kitchen, Inc., a Delaware corporation (the “Company”), Brentwood Associates Private Equity IV, L.P., a Delaware limited partnership (“Brentwood”), Jem-ZK, LLC (“Jem-ZK”), Tyre Stuckey (“Stuckey”), John S. Fischer as trustee of the Cassimus Family Trust (“Cassimus Trust”), John M. Cassimus (“Cassimus”), Greg Dollarhyde (“Dollarhyde”), Dollarhyde Investment Group I, LLC (“DIG”), GE Capital Franchise Finance Corporation (“GE”), Jason Morgan (“Morgan”) and Kevin Miles (“Miles” and, collectively with Jem-ZK, Stuckey, Cassimus Trust, Cassimus, Dollarhyde, DIG, GE and Morgan, the “Restricted Stockholders”).  Brentwood and the Restricted Stockholders are collectively referred to herein as the “Stockholders” and individually as a “Stockholder.”  Except as otherwise provided herein, capitalized terms used herein are defined in Section 4(a) hereof.

 

WHEREAS, the Stockholders and Zoe’s Investors, LLC (“Parent”), a Delaware limited liability company and the parent company of the Company, are party to a Limited Liability Company Agreement, dated as of October 31, 2007 (as amended from time to time, the “LLC Agreement”).

 

WHEREAS, the Company has filed a registration statement with the Securities and Exchange Commission in connection with an initial public offering of its Common Stock (the “IPO”).

 

WHEREAS, concurrent with the pricing of the IPO, (i) the Company will undergo a stock split of its Common Stock and (ii) Parent will distribute to its unitholders all of the shares of Common Stock owned by Parent (the “Distribution”).

 

WHEREAS, following the Distribution and the consummation of the IPO, Parent will liquidate pursuant to the terms of the LLC Agreement, and the LLC Agreement will, accordingly, terminate.

 

WHEREAS, the Company and the Stockholders are entering into this Agreement to, among other things, continue certain of the covenants, obligations and agreements currently set forth in the LLC Agreement following the IPO.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:

 

1.                                      Representations and Warranties.  Each Stockholder represents and warrants that (a) such Stockholder is the owner of the number of Class A Units, Class B Units and Class C Units of Parent set forth opposite such Stockholder’s name on the Stockholders Schedule

 

 

attached hereto, (b) this Agreement has been duly authorized, executed and delivered by such Stockholder and constitutes the valid and binding obligation of such Stockholder, enforceable in accordance with its terms, and (c) such Stockholder has not granted and is not a party to any proxy, voting trust or other agreement which is inconsistent with, conflicts with, or violates any provision of this Agreement.

 

2.                                      Restrictions on Transfer of Common Stock.

 

(a)                                 General Restrictions on Transfer.  Except as otherwise expressly provided in this Section 2, a Restricted Stockholder may Transfer Common Stock only at such time as Brentwood is also selling Common Stock in a Sale Transaction and then only up to a number of shares of Common Stock (a “Transfer Amount”) equal to the product of (1) the aggregate number of Restricted Shares held by such Restricted Stockholder immediately prior to such Sale Transaction (excluding for this purpose shares of Common Stock that are already transferable by such Restricted Stockholder as a result of one or more Transfer Amounts available to such Restricted Stockholder as a result of the application of the next occurring proviso below) multiplied by (2) a fraction, the numerator of which is the aggregate number of shares of Common Stock being sold by Brentwood in such Sale Transaction and the denominator of which is the total number of shares of Common Stock held by Brentwood immediately prior to such Sale Transaction; provided that, if at the time of any Sale Transaction by Brentwood, a Restricted Stockholder chooses not to Transfer any Transfer Amount or is otherwise restricted from Transferring or not permitted to Transfer all or any portion of any Transfer Amount at such time, such Restricted Stockholder shall retain the right to Transfer an aggregate number of shares of Common Stock in connection with a future Sale Transaction by Brentwood (in addition to any rights to Transfer Common Stock in accordance with this Section 2 in connection with such future Sale Transaction by Brentwood) equal to such prior Transfer Amount(s) not sold by such Restricted Stockholder.  Upon the written request from time to time of any Restricted Stockholder, the Company shall inform such Restricted Stockholder of the number of shares of Common Stock that such Restricted Stockholder may transfer in reliance on this Section 2 subject to the terms and conditions hereof.  In the event of a conflict between the provisions of this Section 2(a) and the cutback provisions contained in the Registration Rights Agreement, the provisions of this Section 2(a) shall control and Brentwood agrees that the cutbacks requested by the underwriters in a registered offering under the Registration Rights Agreement may be made on a non-pro rata basis as between the Restricted Stockholders and Brentwood to accommodate such Transfer Amount(s).

 

(b)                                 Intentionally Omitted.

 

(c)                                  Notification of Planned Sale Transactions.  In the event that Brentwood sells Common Stock in a Sale Transaction, then, unless the Registration Rights Agreement provides for different procedures applicable to such particular Sale Transaction (in which case, such procedures set forth in the Registration Rights Agreement shall control), Brentwood will notify the Company in writing as promptly as practicable following such Sale Transaction, and the Company will, within 3 days after receiving such notice from Brentwood, notify each Restricted Stockholder in writing of the Sale Transaction, which written notice shall set forth (i) such Restricted Stockholder’s Transfer Amount as a result of such Sale Transaction and (ii) the number of shares of Common Stock, if any, that are already transferable by such Restricted

 

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Stockholder as a result of one or more Transfer Amounts available to such Restricted Stockholder as a result of the application of the proviso in the first sentence of Section 2(a)).  The Restricted Stockholder shall be permitted to Transfer Common Stock pursuant to this Section 2 for a period of 30 days commencing on the date of the Sale Transaction by Brentwood; provided that, in the event a Restricted Stockholder is unable to Transfer Common Stock at the time of such Sale Transaction as a result of a lock-up or similar agreement to which such Restricted Stockholder is a party or as a result of the Company’s insider trading policies, the Restricted Stockholder will be permitted to Transfer Common Stock pursuant to and in accordance with this Section 2 for a period of 15 days following the expiration of such lock-up or similar agreement and/or the lifting of any restrictions on Transfer as a result of the Company’s insider trading policies (provided that if such 15th day falls on a weekend or bank holiday, the time period will expire at the close of business on the next business day thereafter).

 

(d)                                 Permitted Transfers.  The restrictions on transfer set forth in Section 2(a) shall not apply (i) in connection with a Transfer of Common Stock by a Restricted Stockholder who is a natural person, (x) to each Immediate Family Member of such Restricted Stockholder and (y) to any trust that is and at all times remains solely for the benefit of the Restricted Stockholder and/or one or more Immediate Family Members of such Restricted Stockholder, (ii) in connection with a Transfer of Common Stock by a Restricted Stockholder which is an entity, to any of such Restricted Stockholder’s wholly owned Subsidiaries, parent companies that wholly own such Restricted Stockholder and equityholders of such Restricted Stockholder in accordance with such Restricted Stockholder’s governing documents, and (iii) if the Board in its sole discretion consents to such Transfer; provided that the restrictions contained in this Agreement will continue to be applicable to such Common Stock after any Transfer pursuant to this Section 2(d).  At least 15 days prior to the Transfer of Common Stock pursuant to this Section 2(d) (other than in the case of Transfers pursuant clauses (i) or (ii) above, in which case as promptly as practical following such Transfer), the transferee(s) will deliver a written notice to the Company, which notice shall disclose in reasonable detail the identity of such transferee(s).  Notwithstanding the foregoing, no Restricted Stockholder hereto shall avoid the provisions of Section 2(a) by (A) making one or more Transfers to one or more Permitted Transferees and then disposing of all or any portion of such party’s interest in any such Permitted Transferee or (B) Transferring the securities of any entity holding (directly or indirectly) Common Stock.

 

(e)                                  Applicability of Restrictions on Transfer.  The restrictions on Transfer set forth in this Section 2 shall begin on the date of the Distribution and continue until the earlier of (i) such time as Brentwood no longer holds any shares of Common Stock or (ii) the eighteen (18) month anniversary of the closing of the IPO; provided that, notwithstanding anything in this Agreement to the contrary, the restrictions on transfer set forth in this Section 2 shall not apply to any shares of Common Stock acquired or received by a Restricted Stockholder after the closing of the IPO and not included in the Distribution.

 

3.                                      Effectiveness.  This Agreement is being executed on the date hereof and shall automatically become effective upon, but only upon, the consummation of the Distribution.  Notwithstanding the foregoing, if the Distribution occurs but the IPO subsequently does not close within three business days following such Distribution, this Agreement shall be void and of

 

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no further force or effect.  If the Distribution is not consummated prior to December 31, 2014, then this Agreement shall be void and of no further force or effect.

 

4.                                      Definitions.

 

(a)                                 The following terms, as used in this Agreement, have the following meanings:

 

“Affiliate” means, with respect to a Person, another Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, where “control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract or otherwise.

 

“Board” means the board of directors of the Company.

 

“Brentwood Equity” means (i) the Common Stock included in the Distribution held by Brentwood pursuant to this Agreement and (ii) any securities issued directly or indirectly with respect to the foregoing securities by way of a stock split, stock dividend, or other division of securities, or in connection with a combination of securities, recapitalization, merger, consolidation, or other reorganization.  As to any particular securities constituting Brentwood Equity, such securities shall cease to be Brentwood Equity when they have been (a) distributed to the public through a broker, dealer or market maker pursuant to Rule 144 under the Securities Act (or any similar provision then in force), (b) repurchased by the Company, or (c) transferred to a Person other than a Permitted Transferee.

 

“Common Stock” means shares of the Company’s common stock, par value $0.01 per share.

 

“Immediate Family Member” means, with respect to any Stockholder who is an individual, each parent, brother, sister, spouse, child (including those adopted), niece, nephew or other lineal descendant of such individual and each custodian or guardian of any property of one or more of such Persons in the capacity as such custodian or guardian.

 

“Permitted Transferees” means (i) in the case of a Restricted Stockholder, a transferee of Common Stock permitted in accordance with Section 2(d) herein, and (ii) in the case of Brentwood, any Affiliate thereof.

 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

“Public Sale” means any sale of Common Stock (i) to the public pursuant to an offering registered under the Securities Act, and (ii) to the public pursuant to Rule 144 under the Securities Act (or any similar rule then in effect) effected through a broker, dealer or market maker.

 

“Registration Rights Agreement” means the Registration Rights Agreement, dated as of October 31, 2007, by and among the Company, the Stockholders and certain other parties signatory thereto, as amended from time to time.

 

“Restricted Shares” means a number of shares of Common Stock equal to the shares of Common Stock received by a Restricted Stockholder in connection with the Distribution.

 

“Sale Transaction” means a Public Sale or in any other transaction in which Brentwood Transfers shares of Common Stock to a party other than a Permitted Transferee.

 

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“Securities Act” means the Securities Act of 1933, as amended from time to time.

 

“Transfer” means to sell, transfer, assign, pledge or otherwise, directly or indirectly, dispose of (whether with or without consideration and whether voluntarily or involuntarily or by operation of law).

 

(b)                                 Whenever this Agreement requires a calculation of shares of Common Stock held by Brentwood, such calculation shall aggregate the number of shares of Common Stock held by Brentwood and its Permitted Transferees.

 

5.                                      Transfers in Violation of Agreement.  Any Transfer or attempted Transfer of any Common Stock in violation of any provision of this Agreement shall be void, and the Company shall not record such Transfer on its books or treat any purported transferee of such Common Stock as the owner of such Common Stock for any purpose.

 

6.                                      Confidentiality.  Each Stockholder recognizes and acknowledges that it has and may in the future receive certain confidential and proprietary information and trade secrets of the Company and its subsidiaries, including confidential information of the Company and its subsidiaries regarding identifiable, specific and discrete business opportunities being pursued by the Company or its subsidiaries (the “Confidential Information”).  Except as otherwise agreed to by the Board, each Stockholder agrees that it will not, and shall cause each of its directors, officers, unitholders, partners, employees, agents and members not to, during or after the term of this Agreement, whether directly or indirectly through an Affiliate or otherwise, take commercial or proprietary advantage of or profit from any Confidential Information or disclose Confidential Information to any Person for any reason or purpose whatsoever, except (i) to authorized directors, officers, representatives, agents and employees of the Company or its subsidiaries and as otherwise may be proper in the course of performing such Stockholder’s obligations, or enforcing such Stockholder’s rights, under this Agreement and the agreements expressly contemplated hereby; (ii) as part of such Stockholder’s normal reporting, rating or review procedure (including normal credit rating or pricing process), or in connection with such Stockholder’s or such Stockholder’s Affiliates’ normal fund raising, marketing, informational or reporting activities, or to such Stockholder’s (or any of its Affiliates’) Affiliates, auditors, attorneys or other agents; (iii) to any bona fide prospective purchaser of the equity or assets of such Stockholder or its Affiliates or the Common Stock held by such Stockholder, or prospective merger partner of such Stockholder or its Affiliates, provided that such prospective purchaser or merger partner agrees to be bound by the provisions of this Section 6; or (iv) as is required to be disclosed by order of a court of competent jurisdiction, administrative body or governmental body, or by subpoena, summons or legal process, or by law, rule or regulation, provided that, to the extent permitted by law, the Stockholder required to make such disclosure shall provide to the Board prompt notice of such disclosure.  For purposes of this Section 6, “Confidential Information” shall not include any information of which (x) such Person learns from a source other than the Company or its subsidiaries who is not known by such Person to be bound by a confidentiality obligation, or (y) is disclosed in a prospectus or other documents for dissemination to the public.  Nothing in this Section 6 shall in any way limit or otherwise modify the any confidentiality or non-competition agreements or any other agreement entered into by any holder of Common Stock with the Company or its subsidiaries.

 

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7.                                      Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision of this Agreement in such jurisdiction or affect the validity, legality or enforceability of any provision in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

8.                                      Entire Agreement.  Except as otherwise expressly set forth herein, this Agreement embodies the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way, including the LLC Agreement, which will terminate following and conditioned upon the Distribution, closing of the IPO and subsequent liquidation of Parent.  For the avoidance of doubt, this Agreement shall not supersede or preempt any obligations of any Stockholder under any “lock up” agreement executed by any Stockholder in connection with any registered offering of Common Stock from time to time during the term of this Agreement.

 

9.                                      Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement.

 

10.                               Remedies.  The Company and the Stockholders shall be entitled to enforce their rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor.  The parties hereto agree and acknowledge that money damages alone would not be an adequate remedy for any breach of the provisions of this Agreement and that the Company or any Stockholder may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement either as an exclusive remedy or in combination with claims for monetary damages.

 

11.                               Notices.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, given by facsimile to the facsimile number set forth below, given by electronic mail to the electronic mail address set forth below, or mailed first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the Company and Brentwood at the addresses, facsimile numbers and electronic mail addresses set forth below and to any Restricted Stockholder at the address for such individual in the Company’s personnel files and to any subsequent holder of Common Stock subject to this Agreement at such electronic mail address, facsimile number or address as indicated by the Company’s records, or at such address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.  Notices shall be deemed to have been given hereunder when delivered personally, when confirmation of facsimile or electronic mail has been received by the sender, three days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service.  The Company’s address is:

 

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Zoe’s Kitchen, Inc.

5700 Granite Parkway

Granite Park Building #2 Suite 455

Plano, Texas 70524

Facsimile:  (214) 872-1183

Attention:  Jason Morgan

Email: jasonmorgan@zoeskitchen.com

 

with copies (which shall not constitute notice) to:

 

Brentwood Associates
 11150 Santa Monica Boulevard, Suite 1200
 Los Angeles, California 90025
 Facsimile:  (310) 477-1011

Attention:                                         Anthony Choe

Rahul Aggarwal

Email:            achoe@brentwood.com

raggarwal@brentwood.com

 

Kirkland & Ellis LLP
 333 South Hope Street
 Los Angeles, California 90071
 Facsimile: (213) 680-8500
 Attention:              Damon R. Fisher
 Email:                                 damon.fisher@kirkland.com

 

12.                               Governing Law.  All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement and the schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

 

13.                               Waiver of Jury Trial.  As a specifically bargained for inducement for each of the parties hereto to enter into this Agreement (after having the opportunity to consult with counsel), each party hereto expressly waives the right to trial by jury in any lawsuit or proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby.

 

14.                               No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

7

 

15.                               Descriptive Headings.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

16.                               Amendment.  This Agreement may be amended, modified, or waived with the written consent of a majority of the Brentwood Equity; provided that if any such amendment, modification, or waiver would adversely and disproportionately affect in any material respect the rights, preferences or privileges of any Common Stock subject to this Agreement (without regard to any effect on the individual circumstances of the holder of such Common Stock) as compared with the effect of such amendment, modification or waiver on the rights, preferences or privileges of the Brentwood Equity, such amendment, modification, or waiver shall also require the written consent of the holders of a majority of the Common Stock subject to this Agreement so adversely and disproportionately affected.  In connection with any amendment, modification or waiver, or other approval hereunder, Brentwood will have no obligation to provide any information to any Person unless the consent of such Person is required to be obtained in order to effectuate such amendment, modification or waiver; and provided that Brentwood shall be required to inform the Restricted Stockholders of the substance and occurrence of any amendment.

 

*      *      *      *

 

8

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first written above.

 

 

	
 
    	
ZOE’S   KITCHEN, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
BRENTWOOD   ASSOCIATES PRIVATE EQUITY IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Brentwood   Private Equity IV, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Brentwood   Private Equity IV, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Anthony   Choe
    
	
 
    	
 
    	
Title:
    	
Managing   Member
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
JEM-ZK,   LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
 
    
	
 
    	
Tyre   Stuckey
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
 
    
	
 
    	
John S.   Fischer, as Trustee of the Cassimus Family Trust
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
 
    
	
 
    	
John M.   Cassimus
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
 
    
	
 
    	
Greg   Dollarhyde
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
DOLLARHYDE   INVESTMENT GROUP I, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
GE   CAPITAL FRANCHISE FINANCE CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
 
    
	
 
    	
Jason   Morgan
    

 

Signature Page to Stockholders Agreement

 

 

	
 
    	
 
    
	
 
    	
Kevin   Miles
    

 

Signature Page to Stockholders Agreement

 

 

STOCKHOLDERS SCHEDULE

 

	
Name
    	
 
    	
Number of
   Class A Units
    	
 
    	
Number of
   Class B Units
    	
 
    	
Number of
   Class C Units
    	
 
    	
Total Units
    	
 
    
	
Brentwood Associates Private Equity IV, L.P.
    	
 
    	
2,745,921.14
    	
 
    	
0
    	
 
    	
707,645.68
    	
 
    	
3,453,566.82
    	
 
    
	
Jem-ZK, LLC
    	
 
    	
250,000.00
    	
 
    	
0
    	
 
    	
113,706.50
    	
 
    	
363,706.50
    	
 
    
	
Tyre Stuckey
    	
 
    	
35,000.00
    	
 
    	
42,175.62
    	
 
    	
0
    	
 
    	
77,175.62
    	
 
    
	
John S. Fischer as trustee of the Cassimus Family   Trust
    	
 
    	
45,000.00
    	
 
    	
0
    	
 
    	
0
    	
 
    	
45,000.00
    	
 
    
	
John M. Cassimus
    	
 
    	
255,000.00
    	
 
    	
0
    	
 
    	
0
    	
 
    	
255,000.00
    	
 
    
	
Greg Dollarhyde
    	
 
    	
0
    	
 
    	
204,691.82
    	
 
    	
0
    	
 
    	
204,691.82
    	
 
    
	
Dollarhyde Investment Group I, LLC
    	
 
    	
280,000.00
    	
 
    	
0
    	
 
    	
0
    	
 
    	
280,000.00
    	
 
    
	
GE Capital Franchise Finance Corporation
    	
 
    	
100,000.00
    	
 
    	
0
    	
 
    	
21,235.47
    	
 
    	
121,235.47
    	
 
    
	
Jason Morgan
    	
 
    	
0
    	
 
    	
95,801.64
    	
 
    	
 
    	
 
    	
95,801.64
    	
 
    
	
Kevin Miles
    	
 
    	
0
    	
 
    	
170,000.00
    	
 
    	
6,061.78
    	
 
    	
176,061.78
    	
 
    
	
Total
    	
 
    	
3,710,921.14
    	
 
    	
512,669.08
    	
 
    	
848,649.43
    	
 
    	
5,072,239.65

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