Document:

EX-10.13

 Exhibit 10.13 

FORM OF STOCK OPTION AGREEMENT 

POTBELLY CORPORATION 
 2004 EQUITY
INCENTIVE PLAN 
 THIS STOCK OPTION AGREEMENT  ̈ POTBELLY CORPORATION 2004 EQUITY INCENTIVE PLAN (this
“Agreement”) is made in Chicago, Illinois by and between [Insert Name of Director] (the “Director”) and POTBELLY CORPORATION, a Delaware corporation (the “Company”). 

Recitals 
 A. The Company
has implemented the Potbelly Corporation 2004 Equity Incentive Plan which, together with any amendments thereto, is hereinafter referred to as the “Plan”. 

B. The Company desires to grant to the Director options (the “Options”) to purchase from the Company shares of the
Company’s Common Stock, $.01 par value per share (the “Common Stock”), pursuant to the Plan. 
 Agreements 

NOW THEREFORE, in consideration of the prior recitals, the Company hereby grants to the Director, and the Director hereby accepts, the Options
immediately described below on the terms and conditions contained herein. 
  

			
	DIRECTOR:	 	
		
	GRANT DATE:	 	
		
	EXPIRATION DATE:	 	
		
	NUMBER OF SHARES:	 	
		
	OPTION PRICE ($ PER SHARE):	 	

 The Options shall vest and, subject and pursuant to the provisions of the Plan and this Agreement (including
the immediately following paragraph), shall be exercisable to the extent of [Insert Applicable Vesting Schedule]. 
 THE
OPTIONS, AND THE RIGHTS AND OBLIGATIONS OF THE DIRECTOR AND THE COMPANY WITH RESPECT TO THE OPTIONS (INCLUDING WITHOUT LIMITATION PROVISIONS GOVERNING THE DIRECTOR’S ABILITY TO EXERCISE THE OPTIONS), ARE SUBJECT TO THE PLAN AND THE TERMS AND
CONDITIONS OF THIS AGREEMENT ATTACHED HERETO (THE “TERMS AND CONDITIONS”), BOTH OF WHICH ARE INCORPORATED HEREIN BY REFERENCE. 

 Except as otherwise expressly provided in the Terms and Conditions, the Options may not be
exercised prior to the consummation of the Company’s initial public offering of Common Stock issued pursuant to a registration statement declared effective under the Securities Act of 1933 (“IPO”). 

This grant of Options shall be null and void unless the Director accepts this Agreement by executing it in the space provided below and
returning an original executed copy to the Company on or before [Insert Date]. This Agreement may be executed in two counterparts each of which shall be deemed an original and both of which together shall constitute one and the same
instrument. 
 Initially capitalized terms used but not defined in this Agreement have the same meanings given them in the Plan. 

*    *    *    *    * 

IN WITNESS WHEREOF, the Company and the Director have duly executed this Agreement as of the dates set forth below. 

 

									
	POTBELLY CORPORATION	 		 	DIRECTOR	 	
				
	By:	 	  
	 		 	  

		 		 		 	Signature	 	
					
	Date:	 	  
	 		 	Social Security Number:	 	  

 

									
		 		 		 	Date:	 	  

  
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 TERMS AND CONDITIONS OF STOCK OPTION AGREEMENT 

1. Exercise of Options. 

1.1 The Options may be exercised (to the extent vested) by giving written notice to the Committee specifying the number of whole shares of
Common Stock to be purchased and accompanied by payment therefore in full using such method of payment as the Committee in its sole and absolute discretion deems appropriate. 

1.2 Except as otherwise provided in Section 3 or Section 4, the Options may not be exercised prior to the
consummation of the Company’s initial public offering of Common Stock issued pursuant to a registration statement declared effective under the Securities Act of 1933 (“IPO”). 

2. Termination of Option. In no event may the Options be exercised after they terminate as set forth in this Section 2.

 2.1 If, prior to the Company’s IPO, the Director’s membership on the Board of Directors of the Company terminates for any
reason whatsoever, then the unvested Options shall immediately terminate and may not be exercised. 
 2.2 If, after the consummation of the
Company’s IPO: 
  

	 	(a)	The Director’s membership on the Board of Directors of the Company terminates for any reason other than Disability or death, then, only to the extent they are vested at the time of such termination, the Options may
thereafter be exercised by the Director until and including the earlier to occur of (and to the extent it is not so exercised shall terminate upon): (i) the date that is 90 days after the effective date of the Director’s termination of
employment, and (ii) the Expiration Date; 

  

	 	(b)	The Director’s employment with the Company terminates by reason of Disability or death, then, only to the extent they are vested at the time of such Disability or death, the Options may thereafter be exercised by
the Director or the Director’s Legal Representative until and including the earlier to occur of (and to the extent it is not so exercised shall terminate upon): (i) the date that is one year after the effective date of the Director’s
termination of employment, and (ii) the Expiration Date; and 

  

	 	(c)	The Director dies during the period set forth in Section 2.2(a) above following termination of Board membership, then, only to the extent it is exercisable at the time of Director’s death, the Options
may thereafter be exercised by the Director’s Legal Representative until and including the earlier to occur of (and to the extent it is not so exercised shall terminate upon): (i) the date that is one year after the effective date of the
Director’s termination of employment, and (ii) the Expiration Date 

 2.3 Notwithstanding anything in this Agreement
to the contrary, the Options shall terminate, to the extent not exercised or earlier terminated, on the Expiration Date. 

  
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 3. Corporate Transaction. In the event of a Corporate Transaction (as defined in the
Plan), the Board (as constituted immediately prior to such Corporate Transaction) may, in its sole and absolute discretion, take any one or more of the following actions with respect to the Options: 

(a) provide that the Options shall be assumed, or equivalent options shall be substituted, by the acquiring or succeeding corporation or
entity (of an affiliate thereof); provided, however, that any such options substituted for incentive stock options shall meet the requirements of Section 422(a) of the Code; 

(b) upon written notice to the Director, provide that (i) all vested but unexercised Options will terminate immediately prior to the
consummation of such Corporate Transaction unless exercised by the optionee within a specified period following the date of such notice and prior to the consummation of such Corporate Transaction, and (ii) all unvested Options will terminate
upon consummation of such Corporate Transaction; 
 (c) in the event of a merger or consolidation under the terms of which holders of the
Common Stock of the Company will receive upon consummation thereof a cash payment for each share surrendered in the merger or consolidation (the “Merger Price”), make or provide for a cash payment to the Director, in exchange for
the termination of such options, equal to the difference between (i) the Merger Price times the number of shares of Common Stock subject to any vested Options whose exercise price is less than the Merger Price (“In the Money
Options”), and (ii) the aggregate exercise price of all such In the Money Options; or 
 (d) provide that all or any
outstanding Options shall vest in full immediately prior to such Corporate Transaction and shall terminate immediately following such Corporate Transaction. 

4. Ability to Exercise prior to the Company’s IPO. After the date hereof the Board may determine, in its sole and absolute
discretion, to permit the Director to exercise vested Options prior to the consummation of the Company’s IPO (hereinafter referred to as a “Pre-IPO Exercise”). If the Board makes a determination in the future to permit a
Pre-IPO Exercise, then (a) the terms governing such exercise, and (b) the shares of Common Stock acquired by the Director upon any such exercise, shall be governed in accordance with the terms and provisions set forth on Schedule I
hereto, which is deemed to be an integral part of this Agreement. The Director hereby (x) acknowledges and agrees that the Board is under no obligation (legal or otherwise) to permit a Pre-IPO Exercise, and (y) covenants and agrees that
any shares of Common Stock acquired pursuant to a Pre-IPO Exercise shall be subject to the terms and conditions set forth on Schedule I. 

5. Initial Public Offering Lock-Up. The Director hereby agrees that in the event of the Company’s IPO, the Director shall not
offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or make any short sale of, or otherwise dispose of, any shares of capital stock of the Company (or any rights to acquire capital stock of the Company) then held by such
Director (including without limitation any shares of Common Stock acquired via an exercise of the Options, irrespective of whether such exercise occurred before or after the consummation of such IPO) for such period of time as may be established by
the managing underwriter therefore; provided, however, that such period of time shall not exceed 180 days after the consummation of such IPO. 

*    *    *    *    * 

  
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 SCHEDULE I 

PRE-IPO SHARES 
 Any shares of
Common Stock acquired pursuant to a Pre-IPO Exercise (hereinafter referred to in this Schedule I as “Pre-IPO Shares”) shall be governed in accordance with the terms and provisions of this Schedule I. 

 

	 	A.	Pre-IPO Share Repurchase Right. 

  

	 	1.	Repurchase Right. In the event that the Director’s Board membership terminates for any reason, then the Company shall have the right (but not the obligation) to repurchase any or all of the Pre-IPO Shares.
The Company’s right to repurchase the Pre-IPO Shares (the “Share Repurchase Right”) shall be subject to the terms and subject to the conditions set forth in this Section A. The Share Repurchase Right shall terminate with
respect to Pre-IPO Shares upon the consummation of the Company’s IPO. 

  

	 	2.	Exercise of Share Repurchase Right. The Company may exercise the Share Repurchase Right by written notice to the Director within 90 days after the latest of (a) the Director’s termination of Board
membership, or (b) the date the Options are exercised; provided, that, if the Company reasonably believes that it may be subject to adverse accounting treatment if it exercises the Share Repurchase Right within 90 days after the
date the Options are exercised, then the Company may extend the exercise of the Share Repurchase Right until 210 days after the Options are exercised. If the Company fails to give notice within such periods specified in the immediately preceding
sentence, the Share Repurchase Right shall terminate unless the Company and the Director or the Director’s Legal Representative have extended the time for the exercise of the Share Repurchase Right. The Share Repurchase Right may be exercised
with respect to any portion or all of the Pre-IPO Shares, as determined by the Company in its sole and absolute discretion. 

  

	 	3.	Payment and Return of Pre-IPO Shares. Within 30 days after the date of the mailing of the written notice of exercise of the Share Repurchase Right, the Director shall deliver to the Company a certificate or
certificates for the Pre-IPO Shares being purchased, duly endorsed or otherwise in proper form for transfer, and the Company shall pay to the Director an amount equal to the sum of the number of Pre-IPO Shares purchased by the Company multiplied by:

  

	 	(a)	in the case of the Director voluntarily terminating his service as a Board member, the Exercise Price (as may be adjusted in accordance with the Plan); or 

 

	 	(b)	in the case of Director whose Board service terminates other than for the reason specified in paragraph 3(a) above, the Fair Market Value of a share of Common Stock as of the date the Share Repurchase Right is
exercised. 

  
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	 	B.	Transfer Restrictions on Purchased Shares. 

  

	 	1.	No Director shall transfer any Pre-IPO Shares except in compliance with this Section B. 

  

	 	2.	Except pursuant to (a) a Corporate Transaction, (b) the Share Repurchase Right set forth in Section A, or (c) a transfer described in Section B.3., no Director shall sell or otherwise
transfer (including a transfer by gift or operation of law) any Pre-IPO Shares without the prior written consent of the Committee (which consent may be granted or withheld in its sole and absolute discretion). 

 

	 	3.	The transfer of any or all of the Pre-IPO Shares to the Director’s Family Group during the Director’s lifetime or on the Director’s death by will or intestacy shall be permitted under this Section
B. For purposes of this Section B, “Family Group” means (a) Director’s spouse, siblings and descendants (whether natural or adopted) and any of such descendants’ spouses; (b) any trust that at the time
of such transfer and at all times thereafter is and remains solely for the benefit of the Director and/or the persons described in clause (a) and/or the entities described in clause (c); and (c) any family limited
partnership, limited liability company, Subchapter S corporation, or other tax flow-through entity, the partners, members or other equity owners of which at the time of such transfer and at all times thereafter consist solely of the Director and/or
the persons described in clause (a) and/or the trusts described in clause (b). In such case, the transferee or other recipient shall receive and hold the Pre-IPO Shares so transferred subject to the provisions of this Section
B, and there shall be no further transfer of such Pre-IPO Shares except in accordance with the terms of this Section B. 

  

	 	4.	The restrictions on transfer described in this Section B shall terminate as to any Pre-IPO Shares upon consummation of the Company’s IPO (with subsequent transfers remaining subject to federal and state securities
laws). 

  

	 	C.	Drag-Along Obligations. 

  

	 	1.	If the Board and the holders of a majority of the outstanding shares of the Company’s voting securities approve a Corporate Transaction, then the Director covenants and agrees to vote for and raise no objections
against such Corporate Transaction. If the Corporate Transaction is structured as a (a) merger or consolidation, Director covenants and agrees to waive any dissenters rights, appraisal rights or similar rights in connection with such merger or
consolidation, or (b) a sale of shares of Common Stock, Director covenants and agrees to sell all of his Common Stock on terms and conditions approved by the Board. In addition, Director covenants and agrees to take all necessary or desirable
actions in connection with the consummation of the Corporate Transaction as requested by the Board. 

  

	 	2.	 The obligations of the Director described in Section C.1. with respect to a Corporate Transaction are subject to the satisfaction of the
following conditions: (a) the consideration payable upon consummation of any such Corporate Transaction shall be allocated among the holders of Common Stock based upon 

  
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their pro rata share of the Common Stock, and (b) upon the consummation of any such Corporate Transaction, all of the holders of Common Stock shall receive (or shall have the right to
receive) the same form of consideration. 

  

	 	3.	If the Company enters into any negotiation or transaction for which Rule 506 (or any similar rule then in effect) promulgated by the Securities Exchange Commission may be available with respect to such negotiation or
transaction (including a merger, consolidation or other reorganization), the Director shall, at the request of the Board, appoint a “purchaser representative” (as such term is defined in Rule 501 promulgated under the Securities Act of
1933) designated by the Board, the cost of which shall be borne by the Company. 

  

	 	D.	Irrevocable Proxy. 

  

	 	1.	The Director hereby irrevocably appoints the Committee or any designee of the Committee, as the attorney-in-fact and proxy of the Director (the “Irrevocable Proxy”), effective at such time as the
Director acquires Pre-IPO Shares pursuant to a Pre-IPO Exercise, with full power of substitution, to vote, and otherwise act, in such manner as such attorney-in-fact and proxy or its designee shall in its sole discretion deem proper, with respect to
any Pre-IPO Shares that the Director is entitled to vote at any stockholder meeting, or any adjournment or postponement thereof, or any consent in lieu of any such meeting. 

 

	 	2.	This Irrevocable Proxy is coupled with an interest in the Pre-IPO Shares, and shall be irrevocable to the full extent permitted by law. This Irrevocable Proxy revokes any other proxy granted by the Director at any time
with respect to the Pre-IPO Shares, and the Director hereby agrees not to give any subsequent proxy or power of attorney, or to execute any written consent to such effect, for so long as this Irrevocable Proxy remains in effect. 

 

	 	3.	This Irrevocable Proxy shall remain in full force and effect indefinitely and only terminate upon the earlier of (a) the consummation of the Company’s IPO, or (b) the date on which the Director no longer
holds any Pre-IPO Shares. 

*    *    *    *    * 

  
 7EX-10.14

 Exhibit 10.14 
 FORM OF NON-QUALIFIED STOCK OPTION AWARD AGREEMENT 

POTBELLY CORPORATION 
 2013 LONG-TERM INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 * * * * * 
  

					
			
	Participant:	  	  
	 	
			
	Option Grant Date (“Grant Date”):	  	  
	 	
			
	Exercise Price:	  	$                             per
share	 	
			
	Number of shares subject to Option:	  	  
	 	

 THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”), dated as of the Grant Date
specified above, by and between Potbelly Corporation, a Delaware corporation (the “Company”), and the Participant is entered into pursuant to the Potbelly Corporation 2013 Long-Term Incentive Plan (as the same may be amended, restated,
supplemented and otherwise modified from time to time, the “Plan”). All capitalized terms not otherwise defined in the text of this Agreement have the meanings attributed to them in the Plan. This Agreement is subject to the terms and
conditions of the Plan. 
 1. Grant of Options. Subject to the terms and conditions of the Plan and this Agreement, the
Company hereby grants to the Participant a Non-Qualified Stock Option (the “Option”) to purchase from the Company the number of shares of Common Stock set forth above (such shares of Common Stock are referred to herein as the “Option
Shares”) at the Exercise Price per share set forth above. 
 2. Vesting. Subject to the terms and conditions
of this Agreement, the Option granted pursuant to this Agreement shall vest as follows: [Insert Applicable Vesting Schedule] (each a “Vesting Date”), provided that the Participant’s Termination Date has not occurred before the
applicable Vesting Date. Any portion of the Option that is not vested upon the Participant’s Termination Date shall immediately expire and shall be forfeited and the Participant shall have no further rights with respect thereto, including the
right to exercise the Option. The Participant may only exercise the Option with respect to Option Shares to the extent the Option is vested with respect to such Option Shares and if and to the extent that the Option is otherwise exercisable. 

 3. Expiration. The Option shall expire on the earliest to occur of: 

 

	 	(a)	the ten-year anniversary of the Grant Date; 

	 	(b)	if the Participant’s Termination Date occurs by reason of death or Disability, the one (1) year anniversary of the Termination Date; 

 

	 	(c)	if the Participant’s Termination Date occurs for reasons other than death, Disability or Cause, the three (3)-month anniversary of the Termination Date;

  

	 	(d)	if the Participant’s Termination Date occurs for Cause, the date preceding the Termination Date; or 

 

	 	(e)	the date on which the Participant breaches any covenant set forth in the Confidentiality and Non-Compete Agreement between the Participant and the Company or any
covenant set forth in any other agreement between the Participant and the Company. 

 The applicable date determined under the
foregoing paragraphs shall be the “Expiration Date” for the Option. Notwithstanding the foregoing provisions of this Section 3 or Section 4, no portion of the Option shall be exercisable after the Participant’s Termination
Date except to the extent that it is exercisable as of the date immediately prior to the Participant’s Termination Date. 

4. Option Exercise. Subject to this Agreement and the Plan, the Option may be exercised only after and to the extent that it has
become vested and exercisable in accordance with Section 2 and prior to the Expiration Date. To the extent exercisable, the Participant may exercise the Option by filing a written notice with the Committee in accordance with rules and
procedures established by the Committee. Any such notice shall specify the number of Option Shares which the Participant elects to purchase, and shall be accompanied by payment of the Exercise Price for such Option Shares indicated by the
Participant’s election (except as otherwise provided by the Committee in connection with a broker-assisted cashless exercise program). Subject to applicable law, the Exercise Price shall be payable (a) in cash or cash equivalents,
(b) by tendering, by actual delivery or by attestation, shares of Common Stock owned by the Participant for at least six (6) months prior to the date of exercise and valued at Fair Market Value as of the date of exercise, or (c) by a
combination thereof; provided, however, that shares of Common Stock may not be used to pay any portion of the Exercise Price unless the holder thereof has good title, free and clear of all liens and encumbrances. The Option shall not be exercisable
if and to the extent the Company determines that such exercise would violate applicable state or Federal securities laws or the rules and regulations of any securities exchange on which the Stock is traded. 

5. Withholding. As a condition precedent to the issuance or transfer of any Option Shares, the Participant shall make such
arrangements to the satisfaction of the Committee for the satisfaction of any federal, state or local withholding tax obligations that may arise including requiring the Participant to remit cash to the Company in an amount equal to such withholding.
If the amount so requested is not remitted, the Company may refuse to issue or permit the transfer of the Option Shares. At the election of the Participant and subject to such rules and limitations as may be established by the Committee from time to
time, withholding obligations may be satisfied through the surrender of Common Stock which the Participant already owns or to which a is otherwise entitled pursuant to this Agreement; provided, however, previously-owned Common Stock that has been
held by the Participant Common Stock to which the Participant is entitled pursuant to this Agreement may only be used to satisfy the minimum tax withholding required by applicable law (or other rates that will not have a negative accounting impact).

  
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 6. Miscellaneous. 

 

	 	(a)	Administration. The authority to administer and interpret the Agreement shall be vested in the Committee, and the Committee shall have all the powers with
respect to the Agreement as it has with respect to the Plan. Any interpretation of the Agreement by the Committee and any decision made by it with respect to the Agreement is final and binding on all persons. 

 

	 	(b)	Transfer Restrictions. This Agreement, the Participant’s rights hereunder, and the Option and Option Shares are not transferable by the Participant, except
as provided in the Plan. 

  

	 	(c)	Securities Law Requirements. Notwithstanding any other provision of this Agreement, the Company shall have no liability to make any distribution of Common Stock
under this Agreement unless such delivery or distribution would comply with all applicable laws. In particular, no shares will be delivered to a Participant unless, at the time of delivery, the shares qualify for exemption from, or are registered
pursuant to, applicable federal and state securities laws. 

  

	 	(d)	Notices. All notices, consents and other exchanges of written material required or implied under this Agreement shall be in writing and delivered in person or by
messenger, facsimile, overnight courier or certified mail and shall be sent to the following: 

  

			
	 If to the Company:
	 	Potbelly Corporation
		 	222 Merchandise Mart Plaza
		 	Suite 2300
		 	Chicago, Illinois
		 	 Attention: Committee, General Counsel and
 Senior Vice President of Human Resources

		
	 If to Participant:
	 	The address on file with the Company

 All notices shall be deemed delivered and received by the receiving party (i) if delivered by
messenger, on the date of delivery or on the date delivery was refused by the addressee, (ii) if delivered by facsimile transmission, upon receipt of facsimile confirmation of the party transmitting such notice, or (iii) if delivered by
overnight courier or certified mail, on the date of delivery as established by the return receipt, courier service confirmation or similar documentation (or the date on which the courier or postal service, as applicable, confirms that acceptance of
delivery was refused by the addressee). A party may change its notice information set forth above by giving the other party proper notice of the change, but a change to such notice information is only effective when it is actually received.

  
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	 	(e)	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of all successors and assigns of the Company and the Participant, including
without limitation, the estate of the Participant and the executor, administrator or trustee of such estate or any receiver or trustee in bankruptcy or representative of the Participant’s creditors. 

 

	 	(f)	Severability. The terms or conditions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall
not affect the validity or enforceability of the other terms and conditions set forth herein. 

  

	 	(g)	No Rights to Continued Service; No Rights as Stockholder. The grant of the Option does not constitute a contract of employment or continued service, and the
grant of the Option shall not give the Participant the right to be retained in the employ or service of the Company or any Related Company, nor any right or claim to any benefit under the Plan or the Agreement, unless such right or claim has
specifically accrued under the terms of the Plan and the Agreement. The Participant and the Participant’s beneficiary shall not have any rights with respect to Common Stock (including voting rights) issuable upon exercise of the Option prior to
the date on which the shares of Common Stock are issued upon exercise. 

  

	 	(h)	Governing Law. The grant of the Option and the provisions of this Agreement are governed by, and subject to, the laws of the State of Delaware, without regard to
the conflict of law provisions, as provided in the Plan. For purposes of litigating any dispute that arises under this grant or this Agreement the parties hereby submit to and consent to the exclusive jurisdiction of the State of Illinois and agree
that such litigation shall be conducted in the courts of Cook County, Illinois, or the federal courts for the United States for the Northern District of Illinois, where this grant is made and/or to be performed. 

 

	 	(i)	Amendment. The Board may, at any time, amend or terminate the Plan, and the Board or the Committee may amend this Agreement, provided that no amendment or
termination may, in the absence of written consent to the change by the Participant (or, if the Participant is not then living, the Participant’s beneficiary), adversely affect the rights of any Participant or beneficiary under this Agreement
prior to the date such amendment is adopted by the Board (or the Committee, if applicable). Certain adjustments under the Plan shall not be subject to the foregoing limitations. In no event shall this Agreement be amended to provide for any
provision that is inconsistent with the terms of the Plan. 

  
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 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Grant
Date. 
  

									
	PARTICIPANT	  	POTBELLY CORPORATION
				
	  
	 		  	By:	 	  

	Name:	 	  
	 		  	Name:	 	  

		 		 		  	Its:	 	  

  
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