Document:

Exhibit 10.2

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This
EXECUTIVE EMPLOYMENT AGREEMENT dated October 02, 2017 (the “Effective Date”) is entered by and between Quest Solution,
Inc., a company incorporated under the laws of Delaware (the “Company”), and Benjamin Kemper, an individual (the “Executive”),
with reference to the following facts:

 

The
Executive wishes to serve, and the Company wishes the Executive to serve, as Chief Financial Officer; and

 

The
parties hereto wish to enter into an employment agreement (the “Employment Agreement”) between the Executive and the
Company, on the terms and conditions contained in this Employment Agreement.

 

NOW
THEREFORE, in consideration of the foregoing facts and mutual agreements set forth below, the parties, intending to be legally
bound, agree as follows:

 

1.
Employment. The Company hereby agrees to employ the Executive, and the Executive hereby accepts such employment and agrees
to perform the Executive’s duties and responsibilities in accordance with the terms and conditions hereinafter set forth.

 

1.1
Duties and Responsibilities. The Executive shall serve as the Chief Financial Officer. During the Employment Term, the
Executive shall perform all duties and accept all responsibilities incident to such position and other appropriate duties as may
be assigned to the Executive by the Chief Executive Officer of the Company or the board of directors of the Company (the “Board”)
from time to time. The Executive shall report directly to the Chief Executive Officer. The Company shall retain full direction
and control of the manner, means and methods by which the Executive performs the services for which he is employed hereunder and
of the place or places at which such services shall be rendered.

 

1.2
Employment Term. The term of the Executive’s employment shall commence on the Effective Date and continue for twelve
(12) months, unless earlier terminated in accordance with Section 6 hereof. The term of the Executive’s employment
shall be automatically renewed for successive one (1)-year periods until the Executive or the Company delivers to the other party
a written notice of their intent not to renew the Employment Term, such written notice to be delivered at least thirty (30) days
prior to the expiration of the then-effective Employment Term. Each of the initial 12-month period and each successive one (1)-year
period shall be known as an “Employment Term.”

 

1.3
Extent of Service. During the Employment Term, the Executive agrees to use the Executive’s best efforts to carry
out the duties and responsibilities under Section 1.1 hereof and to devote all requisite Executive’s business time,
attention and energy thereto. Executive further agrees not to work either on a part-time or independent contracting basis for
any other business or enterprise during the Employment Term without the prior written consent of the Company’s Chief Executive
Officer.

 

1.4
Base Salary. The Company shall pay the Executive a base salary (the “Base Salary”) at the annual rate of $130,000
(U.S.), payable at such times as the Company customarily pays its other senior level executives (but in any event no less often
than monthly). The Base Salary shall be subject to all state, federal and local payroll tax withholding and any other withholdings
required by law. The Executive’s Base Salary may be increased by the Board or any party delegated by the Board. Once increased,
such increased amount shall constitute the Executive’s Base Salary. The Company shall grant the Executive 500,000 options
to purchase common stock of the Company at the closing stock price on the date prior to the date hereof. Executive shall also
receive from the Company a $20,000 signing bonus in the form of two equal payments of $10,000. The payments shall be due as follows:
$10,000 upon signing this Agreement and $10,000 two weeks from the date of this Agreement respectively.

 

1.5
Incentive Compensation.

 

(a)
Bonus. The Executive shall be eligible to earn a cash and/or equity bonus as the Board may determine at its sole discretion,
from time to time, based on meeting performance objectives and bonus criteria to be mutually identified by the Executive and the
Board. Bonuses, if any, shall be subject to all applicable tax and payroll withholdings.

 

    	 

    	 

    

 

(b)
Executive Benefits. The Executive shall be entitled to participate in all executive benefit or incentive compensation plans
now maintained or hereafter established by the Company for the purpose of providing compensation and/or benefits to executives
of the Company and any supplemental retirement, salary continuation, stock option, deferred compensation, supplemental medical
or life insurance or other bonus or incentive compensation plans. The Executive’s participation in such plans shall be on
the terms as determined by the Board. No additional compensation provided under any of such plans shall be deemed to modify or
otherwise affect the terms of this Employment Agreement or any of the Executive’s entitlements hereunder.

 

1.6
Other Benefits. During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans
and programs made available to the Company’s senior level executives as a group or to its employees generally, as such plans
or programs may be in effect from time to time (the “Benefit Coverages”), including, without limitation, medical,
dental, hospitalization, short-term and long-term disability and life insurance plans, accidental death and dismemberment protection
and travel accident insurance.

 

1.7
Reimbursement of Expenses; Vacation; Sick Days and Personal Days. The Executive shall be provided with reimbursement of
expenses related to the Executive’s employment by the Company, including reasonable expenses for travel within the scope
of the Executive’s employment as long as such travel is pre-approved by the Chief Executive Officer. The Executive shall
be entitled to vacation and holidays in accordance with the Company’s normal personnel policies for senior level executives,
but not less than four (4) weeks of vacation per calendar year. The Executive is willing to relocate to any place which the Company
may move to within the United States and understands he is not entitled to reimbursement of the relocation fees or car services
unless subsequently agreed to by the Company in writing.

 

1.8
No Other Compensation. Except as expressly provided in Sections 1.4 through 1.7, the Executive shall not be entitled
to any other compensation or benefits.

 

2.
Representations and Warranties of the Executive. The Executive represents and warrants to the Company as follows:

 

2.1
No Conflicts. The execution and delivery by the Executive of this Employment Agreement, and the performance by the Executive
of its obligations hereunder, do not and will not (i) violate or conflict with any law, ordinance, or regulation, or order, decree
or judgment of any arbitrator, court or administrative or other governmental body which is applicable to, binding upon or enforceable
against the Executive or any of his assets, (ii) constitute or result in any breach of any of the terms, provisions, conditions
of, or constitute a default under, or an event which, with notice or lapse of time or both, would constitute a default under,
any indenture, agreement, contract or other document to which the Executive is a party or by which the Executive may be bound
or (iii) require the consent or approval of any court, governmental authority or other person. Neither the execution, delivery
nor performance of this Employment Agreement, nor the consummation by the Executive of the obligations contemplated hereby requires
the consent of, authorization by, exemption from, filing with or notice to any governmental entity or any other person.

 

3.
Representations of the Company. The Company represents and warrants to the Executive as follows:

 

3.1
Authorization and Binding Obligation. The Company has the requisite power and authority to enter into and perform its obligations
under this Employment Agreement. The execution and delivery of this Employment Agreement by the Company and the implementation
thereof by the Company have been duly authorized by the Company’s Board and no further filing, consent, or authorization
is required by the Company, its Board or its stockholders. This Employment Agreement has been duly executed and delivered by the
Company, and constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance
with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited by federal or
state securities laws.

 

    	 

    	 

    

 

3.2
No Conflict. The execution, delivery and performance of this Employment Agreement by the Company will not (i) result in
a violation of the Company’s Certificate of Incorporation, as amended, or other organizational document of the Company or
any of its subsidiaries, any capital stock of the Company or any of its subsidiaries or bylaws of the Company or any of its subsidiaries,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Company or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including foreign, federal and state securities laws and applicable to the Company or any of its subsidiaries
or by which any property or asset of the Company or any of its subsidiaries is bound or affected) except, in the case of clause
(ii) or (iii) above, to the extent such violations that could not reasonably be expected to have a material adviser effect on
the Company or its subsidiaries.

 

4.
Confidential Information. The Executive recognizes and acknowledges that by reason of Executive’s employment by and
service to the Company before, during and, if applicable, after the Employment Term, the Executive will have access to certain
confidential and proprietary information relating to the Company’s business, which may include, but is not limited to, trade
secrets, trade “know-how,” and plans, financing services, funding programs, costs, strategy and programs, computer
programs and software and financial information (collectively referred to as “Confidential Information”). Executive
acknowledges that such Confidential Information is a valuable and unique asset of the Company and Executive covenants that he
will not, unless expressly authorized in writing by the Company, at any time during the course of Executive’s employment
use any Confidential Information or divulge or disclose any Confidential Information to any person, firm or corporation except
in connection with the performance of Executive’s duties for the Company and in a manner consistent with the Company’s
policies regarding Confidential Information. The Executive also covenants that at any time after the termination of such employment,
directly or indirectly, he will not use any Confidential Information or divulge or disclose any Confidential Information to any
person, firm or corporation, unless such information is in the public domain through no fault of Executive or except when required
to do so by a court of law, by any governmental agency having supervisory authority over the business of the Company or by any
administrative or legislative body (including a committee thereof) with apparent jurisdiction to order Executive to divulge, disclose
or make accessible such information. All written Confidential Information (including, without limitation, in any computer or other
electronic format) which comes into Executive’s possession during the course of Executive’s employment shall remain
the property of the Company. Except as required in the performance of Executive’s duties for the Company, or unless expressly
authorized in writing by the Company, the Executive shall not remove any written Confidential Information from the Company’s
premises, except in connection with the performance of Executive’s duties for the Company and in a manner consistent with
the Company’s policies regarding Confidential Information. Upon termination of Executive’s Employment Agreement, the
Executive agrees to return immediately to the Company all written Confidential Information (including, without limitation, in
any computer or other electronic format) in Executive’s possession.

 

5.
Non-Competition; Non-Solicitation.

 

5.1
Non-Compete. The Executive hereby covenants and agrees that during the Employment Term and for a period of two years following
the end of the Employment Term, the Executive will not, without the prior written consent of the Company, directly or indirectly,
on his own behalf or in the service or on behalf of others, whether or not for compensation, engage in any business activity,
or have any interest in any person, firm, corporation or business, through a subsidiary or parent entity or other entity (whether
as a shareholder, agent, joint venture, security holder, trustee, partner, Executive, creditor lending credit or money for the
purpose of establishing or operating any such business, partner or otherwise) with any Competing Business in the Covered Area,
except with the consent of the Chief Executive Officer. For the purpose of this Section 5.1, (i) “Competing Business”
means any company engaged in mobile solutions and full lifecycle management services, substantially similar to those of the Company;
and (ii) “Covered Area” means all geographical areas of the United States where the Company operates and may operate.

 

5.2
Non-Solicitation. The Executive further agrees that as long as the Agreement remains in effect and for a period of one
(1) year from its termination, the Executive will not divert any business of the Company and/or any affiliate of the Company to
any other person, entity or competitor, or induce or attempt to induce, directly or indirectly, any person to leave his or her
employment with the Company.

 

    	 

    	 

    

 

5.3
Remedies. The Executive acknowledges and agrees that his obligations provided herein are necessary and reasonable in order
to protect the Company and its affiliates and their respective business and the Executive expressly agrees that monetary damages
would be inadequate to compensate the Company and/or its affiliates for any breach by the Executive of his covenants and agreements
set forth herein. Accordingly, the Executive agrees and acknowledges that any such violation or threatened violation of this Section
5 will cause irreparable injury to the Company and that, in addition to any other remedies that may be available in law or at
equity or otherwise, the Company and its affiliates shall be entitled to obtain injunctive relief against the threatened breach
of this Section 5 or the continuation of any such breach by the Executive without the necessity of proving actual damages.

 

6.
Termination.

 

6.1
Termination without Cause or for Good Reason.

 

(a)
If this Agreement is terminated by the Company other than for Cause (as defined in Section 6.4 hereof) or as a result of
Employee’s death or Permanent Disability (as defined in Section 6.2 hereof), or if Employee terminates his employment
for Good Reason (as defined in Section 6.1(b) hereof) prior to the expiration of each Employment Term, the Employee shall
receive or commence receiving as soon as practicable in accordance with the terms of this Agreement:

 

(i)
a severance payment (the “Severance Payment”), which amount shall be paid in a cash lump sum within ten (10) days
of the date of termination, in an amount equal to the aggregate amount of the Employee’s Base Salary for the then remaining
Employment Term under this Employment Agreement;

 

(ii)
expense reimbursement which shall be paid in a lump sum payment within ten (10) days of the date of termination, in an amount
equal Employee’s reimbursed expenses set forth in Section 1.7; and

 

(iii)
payment in respect of compensation earned but not yet paid (the “Compensation Payment”) which amount shall be paid
in a cash lump sum within ten (10) days of the date of termination. For the purposes of this Section, the Compensation Payment
shall include any payment for the pro-rata number of vacation days earned, but not taken in the preceding calendar year;

 

(b)
For purposes of this Agreement, “Good Reason” shall mean any of the following (without Employee’s express prior
written consent):

 

(i)
Any material breach by Company of any provision of this Agreement, including any material reduction by Company of Employee’s
duties or responsibilities (except in connection with the termination of Employee’s employment for Cause, as a result of
Permanent Disability, as a result of Employee’s death or by Employee other than for Good Reason);

 

(ii)
A reduction by the Company in Employee’s Base Salary or any failure of the Company to reimburse Employee for material expenses
described in Section 1.7;

 

(iii)
The failure by the Company to obtain the specific assumption of this Employment Agreement by any successor or assign of Company
as provided for in Section 7 hereof; or

 

(iv)
Upon a Change in Control of Company (as such term is hereinafter defined).

 

(c)
The following provisions shall apply in the event the compensation provided in Section 6.1(a) becomes payable to the Employee:

 

    	 

    	 

    

 

(i)
if the Severance Payment provided for in Section 6.1(a)(i) above cannot be finally determined on or before the tenth day following
such termination, the Company shall pay to the Employee on such day an estimate, as determined in good faith by the Company of
the minimum amount of such compensation and shall pay the remainder of such compensation (together with interest at the Federal
short-term rate provided in Section 1274(d)(1)(C)(i) of the Code) as soon as the amount thereof can be determined but in no event
later than the thirtieth day after the Date of Termination. In the event the amount of the estimated payment exceeds the amount
subsequently determined to have been due, such excess shall constitute a loan by the Company to the Employee payable on the fifth
day after demand by the Company (together with interest at the Federal short-term rate provided in Section 1274(d)(1)(C)(i) of
the Code).

 

(ii)
If the payment of the Total Payments (as defined below) will be subject to the tax (the “Excise Tax”) imposed by Section
409A of the Code, the Company shall pay the Employee on or before the tenth day following the Date of Termination, an additional
amount (the “Gross-Up Payment”) such that the net amount retained by the Employee, after deduction of any Excise Tax
on Total Payments and any federal and state and local income tax and Excise Tax upon the payment provided for by this paragraph,
shall be equal to the Total Payments. For purposes of determining whether any of the payments will be subject to the Excise Tax
and the amount of such Excise Tax, (A) any payments or benefits received or to be received by the Employee in connection with
a Change in Control of the Company or the Employee’s termination of employment, whether payable pursuant to the terms of
this Agreement or any other plan, arrangement or agreement with the Company, its successors, any person whose actions result in
a Change in Control of the Company or any corporation affiliated or which, as a result of the completion of transaction causing
such a Change in Control, will become affiliated with the Company within the meaning of Section 1504 of Code (the “Total
Payments”) shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and
all “excess parachute payments” within the meaning of Section 280G(b)(1) shall be treated as subject to the Excise
Tax, unless, in the opinion of tax counsel selected by the Company’s independent auditors and acceptable to the Employee,
the Total Payments (in whole or in part) do not constitute parachute payments, or such excess parachute payments (in whole or
in part) represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code
either in their entirety or in excess of the base amount within the meaning of Section 280G(b)(3) of the Code, or are otherwise
not subject to the Excise Tax, (B) the amount of the Total Payments that shall be treated as subject to the Excise Tax shall be
equal to the lesser of (I) the total amount of the Total Payments or (II) the amount of excess parachute payments or benefit shall
be determined by the Company’s independent auditors in accordance with the principles of Section 280G of the Code. For purposes
of determining the amount of the Gross-Up Payment, the Employee shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes
at the highest marginal rate of taxation in the state and locality of the Employee’s residence on the Date of Termination,
net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. In
the event the Excise Tax is subsequently determined to be less than the amount taken into account hereunder at the time of termination
of the Employee’s employment, the Employee shall repay to the Company at the time the amount of such reduction in Excise
Tax is finally determined the portion of the Gross-Up Payment that can be repaid such that the Employee remains whole on an after-tax
basis following such repayment (taking into account any reduction in income or excise taxes to the Employee from such repayment)
plus interest on the amount of such repayment at the Federal short-term rate provided in Section 1274(d)(1)(C)(i) of the Code.
In the event the Excise Tax is determined to exceed the amount taken into account hereunder at the time of the termination of
the Employee’s employment (including by reason of any payment the existence or amount of which cannot be determined at the
time of the Gross-Up Payment), the Company shall make an additional gross-up payment in respect of such excess (plus any interest
payable with respect to such excess) at the time that the amount of such excess is finally determined.

 

    	 

    	 

    

 

(iii)
This Employment Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code (the “Code”)
or an exemption or exclusion therefrom. Each payment under this Agreement shall be treated as a separate payment for purposes
of Section 409A of the Code. In no event may Employee, directly or indirectly, designate the calendar year of any payment to be
made under this Agreement. All reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation
within the meaning of Section 409A of the Code shall be made or provided in accordance with the requirements of Section 409A of
the Code, including, without limitation, that (i) in no event shall reimbursements by the Company under this Agreement be made
later than the end of the calendar year next following the calendar year in which the applicable fees and expenses were incurred,
provided that Employee shall have submitted an invoice for such fees and expenses at least 10 days before the end of the calendar
year next following the calendar year in which such fees and expenses were incurred; (ii) the amount of in-kind benefits that
the Company is obligated to pay or provide in any given calendar year (other than medical reimbursements described in Treas. Reg.
§ 1.409A-3(i)(1)(iv)(B)) shall not affect the in-kind benefits that the Company is obligated to pay or provide in any other
calendar year; (iii) Employee’s right to have the Company pay or provide such reimbursements and in-kind benefits may not
be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements
or to provide such in-kind benefits apply later than Employee’s remaining lifetime or if longer, through the 20th anniversary
of the Effective Date. To the extent Employee is a “specified employee,” as defined in Section 409A(a)(2)(B)(i) of
the Code and the regulations and other guidance promulgated thereunder and any elections made by the Company in accordance therewith,
notwithstanding the timing of payment provided in any other Section of this Agreement, no payment, distribution or benefit under
this Agreement that constitutes a distribution of deferred compensation (within the meaning of Treasury Regulation Section 1.409A-1(b))
upon separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)), after taking into account all available
exemptions, that would otherwise be payable, distributable or settled during the six-month period after separation from service,
will be made during such six-month period, and any such payment, distribution or benefit will instead be paid, distributed or
settled on the first business day after such six-month period; provided, however, that if Employee dies following the Date of
Termination and prior to the payment, distribution, settlement or provision of the any payments, distributions or benefits delayed
on account of Section 409A of the Code, such payments, distributions or benefits shall be paid or provided to the personal representative
of Employee’s estate within 30 days after the date of Employee’s death

 

6.2
Permanent Disability. If the Employee becomes incompetent or totally and permanently disabled (as defined below, “Permanent
Disability”), the Company may terminate this Agreement on written notice thereof, and the Employee shall receive or commence
receiving, as soon as practicable:

 

(a)
amounts payable pursuant to the terms of the disability insurance policy or similar arrangement which Company maintains for the
Employee, if any, during the term hereof; and

 

(b)
the Compensation Payment which shall be paid to Employee as a cash lump sum within 30 days of such termination.

 

For
purposes of this Agreement, “Permanent Disability” shall be deemed to have occurred if the Employee is unable, due
to any physical or mental disease or condition, to perform his normal duties of employment for a period of thirty (30) consecutive
days or sixty (60) days in any twelve month period. The existence of the Employee’s Permanent Disability shall be determined
by the Company on the advice of a physician chosen by the Company and reasonably acceptable to the Employee, and the Company reserves
the right to have the Employee examined by such physician at the Company’s expense.

 

6.3
Death. In the event of the Employee’s death during an Employment Term hereunder, this Agreement will terminate, and
the Employee’s estate or designated beneficiaries shall receive or commence receiving, as soon as practicable in accordance
with the terms of this Agreement:

 

(a)
any death benefits provided under the Employee benefit programs, plans and practices in which the Employee has an interest, in
accordance with their respective terms;

 

(b)
the Compensation Payment which shall be paid to Employee’s estate as a cash lump sum within 30 days of such termination;
and

 

(c)
such other payments under applicable plans or programs to which Employee’s estate or designated beneficiaries are entitled
pursuant to the terms of such plans or programs.

 

    	 

    	 

    

 

6.4
Voluntary Termination by Employee: Discharge for Cause. The Company shall have the right to terminate this Employment Agreement
for Cause (as hereinafter defined). In the event that the Employee’s employment is terminated by Company for Cause, as hereinafter
defined, or by the Employee other than for Good Reason or other than as a result of the Employee’s Permanent Disability
or death, prior to the Termination Date, the Employee shall be entitled only to receive, as a cash lump sum within 30 days of
such termination, the Compensation Payment. As used herein, the term “Cause” shall be limited to (a) willful malfeasance
or willful misconduct by the Employee in connection with the services to the Company in a matter of material importance to the
conduct of the Company’s affairs which has a material adverse effect on the business of the Company, or (b) the conviction
of the Employee for commission of a felony. For purposes of this subsection, no act or failure to act on the Employee’s
part shall be considered “willful” unless done, or omitted to be done, by the Employee not in good faith and without
reasonable belief that his action or omission was in the best interest of the Company. Termination of this Employment Agreement
for Cause pursuant to this Section 6.4 shall be made by delivery to the Employee of a copy of a resolution duly adopted
by the Board at a meeting duly called and held for such purpose (after 30 days prior written notice to the Employee and reasonable
opportunity for the Employee to be heard before the Board of Directors prior to such vote), finding that in the good faith business
judgment of such Board, the Employee was guilty of conduct set forth in any of clauses (a) through (b) above and specifying the
particulars thereof.

 

6.5
Change In Control. For purposes of this Employment Agreement, a “Change in Control” shall be deemed to have
occurred if (i) there shall be consummated (A) any consolidation or merger of the Company in which the Company is not the continuing
or surviving corporation or pursuant to which shares of the Company’s Common Stock would be converted into cash, securities
or other property, other than a merger of the Company in which the holders of the Company’s Common Stock immediately prior
to the merger have substantially the same proportionate ownership of common stock of the surviving corporation immediately after
the merger, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all
or substantially all the assets of the Company, or (ii) the stockholders of the Company shall approve any plan or proposal for
the liquidation or dissolution of the Company, or (iii) any person (as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934 (the “Exchange Act”)), other than the Company, the Employee or any Employee benefit
plan sponsored by the Company, or such person on the Effective Date hereof is a 20% or more beneficial owner, shall become the
beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company representing 30% or more
of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing in
special circumstances) having the right to vote in the election of directors, as a result of a tender or exchange offer, open
market purchases, privately negotiated purchases or otherwise, or (iv) at any time during a period of two consecutive years, individuals
who at the beginning of such period, constituted the Board of Directors of the Company shall cease for any reason to constitute
at least a majority thereof, unless the election or the nomination for election by the Company’s stockholders of each new
director during such two-year period was approved by a vote of at least two-thirds of the directors then still in office, who
were directors at the beginning of such two-year period.

 

If
a Change in Control of the Company shall have occurred while the Executive is a director of the Company, the Executive shall be
entitled to the compensation provided in Section 6.1(a) of this Agreement upon the subsequent termination of this Agreement by
either the Company, or the Executive within two years of the date upon which the Change in Control shall have occurred, unless
such termination is a result of (i) the Executive’s death; (ii) the Executive’s Permanent Disability; (iii) the Executive’s
Retirement; or (iv) the Executive’s termination for Cause.

 

7.
Assignment. This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of Executive
and the assigns and successors of the Company, but neither this Employment Agreement nor any rights or obligations hereunder shall
be assignable or otherwise subject to hypothecation by the Executive (except by will or by operation of the laws of intestate
succession or by Executive notifying the Company that cash payment be made to an affiliated investment partnership in which Executive
is a control person) or by the Company, except that Company may assign this Employment Agreement to any successor (whether by
merger, purchase or otherwise) to all or substantially all of the stock, assets or businesses of Company, if such successor expressly
agrees to assume the obligations of Company hereunder. The Executive may not assign this Employment Agreement without the prior
written consent of the Company. The Company may assign its rights without the written consent of the executive, so long as the
Company or its assignee complies with the other material terms of this Employment Agreement. The rights and obligations of the
Company under this Employment Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of the Company, and the Executive’s rights under this Agreement shall inure to the benefit of and be binding upon his heirs
and executors.

 

    	 

    	 

    

 

8.
Indemnification. The Executive shall be indemnified by the Company against all liability incurred by the Executive
in connection with any proceeding, including, but not necessarily limited to, the amount of any judgment obtained against Executive,
the amount of any settlement entered into by the Executive and any claimant with the approval of the Company, attorneys’
fees, actually and necessarily incurred by him in connection with the defense of any action, suit, investigation or proceeding
or similar legal activity, regardless of whether criminal, civil, administrative or investigative in nature (“Claim”),
to which he is made a party or is otherwise subject to, by reason of his being or having been a director, officer, agent or employee
of the Company, to the full extent permitted by applicable law and the Certificate of Incorporation of the Company.. Such right
of indemnification will not be deemed exclusive of any other rights to which Executive may be entitled under Company’s Certificate
of Incorporation or By-laws, as in effect from time to time, any agreement or otherwise.

 

9.
General Provisions.

 

9.1
Modification, No Waiver. No modification, amendment or discharge of this Employment Agreement shall be valid unless the
same is in writing and signed by all parties hereto. Failure of any party at any time to enforce any provisions of this Employment
Agreement or any rights or to exercise any elections hall in no way be considered to be a waiver of such provisions, rights or
elections and shall in no way affect the validity of this Employment Agreement. The exercise by any party of any of its rights
or any of its elections under this Employment Agreement shall not preclude or prejudice such party from exercising the same or
any other right it may have under this Employment Agreement irrespective of any previous action taken.

 

9.2
Notices. All notices and other communications required or permitted hereunder or necessary or convenient in connection
herewith shall be in writing and shall be deemed to have been given when hand delivered or mailed by registered or certified mail
as follows (provided that notice of change of address shall be deemed given only when received):

 

If
to the Company, to:

 

Quest
Solution, Inc.

860
Conger Street

Eugene,
OR 97402

 

If
to Executive, to:

 

Benjamin
Kemper

860
Conger Street

Eugene,
OR 97402

 

Or
to such other names or addresses as the Company or Executive, as the case may be, shall designate by notice to each other person
entitled to receive notices in the manner specified in this Section.

 

9.3
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

 

9.4
Further Assurances. Each party to this Employment Agreement shall execute all instruments and documents and take all actions
as may be reasonably required to effectuate this Employment Agreement.

 

9.5
Severability. Should any one or more of the provisions of this Employment Agreement or of any agreement entered into pursuant
to this Employment Agreement be determined to be illegal or unenforceable, then such illegal or unenforceable provision shall
be modified by the proper court or arbitrator to the extent necessary and possible to make such provision enforceable, and such
modified provision and all other provisions of this Employment Agreement and of each other agreement entered into pursuant to
this Employment Agreement shall be given effect separately from the provisions or portion thereof determined to be illegal or
unenforceable and shall not be affected thereby.

 

9.6
Entire Agreement. This Employment Agreement supersedes all prior agreements and understandings between the parties, oral
or written. No modification, termination or attempted waiver shall be valid unless in writing, signed by the party against whom
such modification, termination or waiver is sought to be enforced.

 

9.7
Counterparts; Facsimile. This Employment Agreement may be executed in one or more counterparts, each of which shall for
all purposes be deemed to be an original, and all of which taken together shall constitute one and the same instrument. This Employment
Agreement may be executed by facsimile with original signatures to follow.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Employment Agreement as of the date first
written above.

 

	Executive	 	Quest
    Solution, Inc.
	 	 	 
	 	 	 
	Benjamin
    Kemper	 	Name:
    
	 	 	Title:EX-10.1

 Exhibit 10.1 

SETTLEMENT AGREEMENT 

This Settlement Agreement (this “Agreement”) is made by and between Potbelly Corporation (the “Company”), on the one hand,
and Ancora Advisors, LLC (“Ancora”), Ancora Catalyst Fund LP, Merlin Partners LP and Frederick DiSanto (collectively, the “Ancora Parties” and individually a “Member” of the Ancora Parties) on the other hand, on behalf
of themselves and their respective Affiliates (as defined below) (the Company and the Ancora Parties together, collectively, the “Parties”). 

WHEREAS, the Ancora Parties beneficially own an aggregate of 1,172,553 shares of common stock, par value $0.01 (the “Common Stock”),
of the Company issued and outstanding on the date hereof; 
 WHEREAS, the Parties have determined that it is in their respective best
interests to come to an agreement with respect to the appointment of a representative of the Ancora Parties to the Company’s Board of Directors (the “Board”) and certain other matters, as provided in this Agreement; and 

NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: 
 1. Board
Matters & Voting. 
 (a) The Company shall, effective upon the execution of this Agreement, appoint Joseph Boehm
(the “Appointee”) as a director of the Company to serve until the Company’s 2018 annual meeting of stockholders (the “2018 Annual Meeting”). 

(b) The Company shall include Appointee in the Company’s slate of nominees for election as a director of the Company at the 2018 Annual
Meeting and shall use commercially reasonable efforts to cause the election of Appointee to the Board at the 2018 Annual Meeting (including recommending that the Company’s stockholders vote in favor of the election of Appointee, including
Appointee in the Company’s proxy statement for the 2018 Annual Meeting and otherwise supporting Appointee for election in a manner no less rigorous and favorable than the manner in which the Company supports its other nominees in the aggregate)
(collectively, the “Election Support Efforts”). 
 (c) If Appointee resigns from the Board or is rendered unable to, or refuses
to, serve on the Board, the Ancora Parties shall be entitled to designate a replacement for Appointee that shall be recommended by the Company’s Nominating and Corporate Governance Committee and approved by the Board (such recommendation and
approval not to be unreasonably withheld, conditioned or delayed). If such proposed designee is not approved by such committee or the Board, the Ancora Parties shall be entitled to continue designating a replacement until such proposed designee is
approved by such committee and the Board (a “Replacement”), and the Company shall take all necessary action to promptly appoint such person to the Board. 

 (d) The Company shall not be obligated to include Appointee on the slate of directors proposed
for election at any Stockholders Meeting (as defined below) other than the 2018 Annual Meeting pursuant to this Agreement. For any Stockholders Meeting subsequent to the 2018 Annual Meeting, as long as Appointee is on the Board, the Company shall
notify the Ancora Parties in writing no less than forty-five (45) calendar days before the last day of the advance notice deadline set forth in the Company’s by-laws if Appointee will be nominated by
the Company for election as a director at such Stockholders Meeting and, if Appointee is to be so nominated, shall use commercially reasonable efforts to cause the election of Appointee so nominated by the Company (including the Election Support
Efforts). 
 (e) Upon the appointment of Appointee to the Board, Appointee shall be appointed to the Board’s Strategic Review
Committee. If Appointee or any Replacement is reelected by the Company’s stockholders at the 2018 Annual Meeting, Appointee or such Replacement shall be reappointed to the Board’s Strategic Review Committee, if any, or any other special
committee of the Board who’s mandate includes the review of the Company’s strategy and/or strategic transactions, and shall remain on such committee through the Standstill Period (as defined below). In addition, upon the reasonable request
of Appointee, the Board shall consult with Appointee regarding the appointment of Appointee to one or more other committees of the Board, with the understanding that the intent of the Parties is that Appointee or any Replacement shall be considered
for membership on committees of the Board in a similar manner to other members of the Board. Appointee shall have the same right as other members of the Board to be invited to attend meetings of committees of the Board of which Appointee is not a
member. 
 (f) Appointee’s or the Replacement’s, as the case may be, appointment to the Board shall be conditioned upon his or her
tender of a letter of resignation as a member of the Board effective upon the termination of this Agreement pursuant to Section 15 hereof. 

(g) While Appointee or the Replacement serves as a director of the Board, Appointee or the Replacement, as the case may be, shall receive
compensation (including equity based compensation, if any) for the Board and committee meetings attended, an annual retainer and benefits (including expense reimbursements) on the same basis as all other
non-employee directors of the Company. 
 (h) At all times while serving as a member of the Board,
Appointee or the Replacement, as the case may be, will be governed by the same protections and obligations regarding confidentiality, conflicts of interest, related party transactions, fiduciary duties, codes of conduct, trading and disclosure
policies, director resignation policy, and other governance guidelines and policies of the Company as other directors, as amended from time to time (collectively, “Company Policies”), and shall have the same rights and benefits, including
with respect to insurance, indemnification, compensation and fees, as are applicable to all independent directors of the Company. The Company shall make available to Appointee or the Replacement copies of all Company Policies not publicly available
on the Company’s website. At all times while Appointee or the Replacement is serving as a member of the Board, (i) Appointee or the Replacement shall not disclose to the Ancora Parties, any Member or any “Affiliate” or
“Associate” (as defined in Rule 12b-2 promulgated by the Securities and Exchange Commission (“SEC”) pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of 

  
 2 

 
each such Member of the Ancora Parties (collectively and individually the “Ancora Affiliates”) or any other person or entity not affiliated with the Company any confidential information
of the Company, and (ii) each Member of the Ancora Parties shall not, and shall cause the Ancora Affiliates not to, seek to obtain confidential information of the Company from Appointee or the Replacement; provided that, notwithstanding the
foregoing, any Appointee or the Replacement that is a principal or employee of an Ancora Party or Ancora Affiliate may discuss confidential information with an associate of the Ancora Parties in accordance with and subject to the terms of the Non-Disclosure Agreement, the form of which is attached hereto as Exhibit A, after the Non-Disclosure Agreement has been mutually executed and delivered by the Company,
Appointee or the Replacement, the principal of Ancora and Ancora. 
 (i) Notwithstanding anything to the contrary in this Agreement, the
rights and privileges set forth in this Agreement shall be personal to the Ancora Parties and may not be transferred or assigned to any individual, corporation, partnership, limited liability company, joint venture, estate, trust, association,
organization or other entity of any kind or nature (each, a “Person”), except that the Ancora Parties shall be permitted to transfer or assign this Agreement to their respective Affiliates. 

(j) Notwithstanding anything to the contrary contained herein, if at any time after the date of this Agreement and prior to the 2018 Annual
Meeting, the Ancora Parties, together with their respective Affiliates, cease to Beneficially Own (as defined below) in the aggregate at least 3% of the outstanding shares of Common Stock, then (1) the Appointee or the Replacement, as the case
may be, shall promptly offer to tender his or her resignation from the Board and any committee of the Board on which he or she may be a member (and, if requested by the Company, promptly deliver his or her written resignations to the Board (which
shall provide for his or her immediate resignations) it being understood that it shall be in the Board’s sole discretion whether to accept or reject such resignation), and (2) the Company shall have no further obligations under this
Agreement. 
 (k) For purposes of this Agreement: the term “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act, and “Beneficially Own” or variations thereof shall have the meaning set forth in Rule 13d-3 promulgated under
the Exchange Act. 
 2. Standstill and Voting. 

(a) The Ancora Parties each agree that during the Standstill Period, the Ancora Parties, any Member and the Ancora Affiliates will not (and
they will not assist or encourage others to), directly or indirectly, in any manner, without prior written approval of the Board: 

(i) take any actions, including acquiring, seeking to acquire or agreeing to acquire (whether by market purchases, private
purchases or otherwise) any shares of Common Stock (or Beneficial Ownership thereof) or any securities convertible or exchangeable into or exercisable for any shares of Common Stock (or Beneficial Ownership thereof) (including any derivative
securities or instruments having the right to acquire Common Stock) such that the Ancora Parties would Beneficially Own in excess of 9.9% of the outstanding shares of Common Stock; 

  
 3 

 (ii) (A) knowingly encourage, advise or influence any other Person or
knowingly assist any third party in so encouraging, assisting or influencing any other Person with respect to the giving or withholding of any proxy, consent or other authority to vote or in conducting any type of referendum (other than such
encouragement, advice or influence that is consistent with Company management’s recommendation in connection with such matter) or (B) advise, influence or encourage any Person with respect to, or effect or seek to effect, whether alone or
in concert with others, the election, nomination or removal of a director other than as permitted in this Agreement; 
 (iii)
solicit proxies or written consents of stockholders or conduct any other type of referendum (binding or non-binding) with respect to the shares of Common Stock, or from the holders of the shares of Common
Stock, or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Exchange Act) in or assist any third party in any “solicitation” of any proxy, consent or other
authority (as such terms are defined under the Exchange Act) to vote any shares of Common Stock (other than any encouragement, advice or influence that is consistent with Company management’s recommendation in connection with such matter); 

(iv) (A) form or join in a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with
respect to any shares of Common Stock (other than a “group” solely consisting of the Ancora Parties or Ancora Affiliates), (B) grant any proxy, consent or other authority to vote with respect to any matters to be voted on by the
Company’s stockholders (other than to the named proxies included in the Company’s proxy card for any annual meeting or special meeting of stockholders or as otherwise permitted by this Agreement with respect to a Discretionary Voting
Matter (as defined below)) or (C) agree to deposit or deposit any shares of Common Stock or any securities convertible or exchangeable into or exercisable for any such shares of Common Stock in any voting trust or similar arrangement (other
than (I) to the named proxies included in the Company’s proxy card for any Stockholders Meeting, (II) customary brokerage accounts, margin accounts, prime brokerage accounts and the like and (III) any agreement solely among the
Ancora Parties or Ancora Affiliates); 
 (v) without the approval of the Board, separately or in conjunction with any third
party in which it is or proposes to be either a principal, partner or financing source or is acting or proposes to act as broker or agent for compensation, propose (publicly or privately) or effect any tender offer or exchange offer, merger,
acquisition, reorganization, restructuring, recapitalization or other business combination involving the Company or a material amount of the assets or businesses of the Company or actively encourage, initiate or support any other third party in any
such activity; provided, however, that the Ancora Parties and Ancora Affiliates shall be permitted to (i) sell or tender their shares of Common Stock, and otherwise receive consideration, pursuant to any such transaction and (ii) vote on
any such transaction in their sole discretion; 

  
 4 

 (vi) present at any annual meeting or any special meeting of the Company’s
stockholders any proposal for consideration for action by the stockholders; 
 (vii) seek to have the Company waive, amend or
modify any provisions of the Certificate of Incorporation or by-laws, in each case as amended and/or restated, of the Company; 

(viii) make any request for stockholder list materials or other books and records of the Company under Section 220 of the
Delaware General Corporation Law (other than under Section 220(d) solely in Appointee’s capacity as a director in a manner consistent with his fiduciary duties to the Company) or otherwise; provided, that if Appointee makes such a request
solely in Appointee’s capacity as a director in a manner consistent with his fiduciary duties to the Company, such material and other books and records may not be shared with any other Ancora Party, Member of Ancora Affiliate, notwithstanding
any other provision of this Agreement); 
 (ix) institute, solicit or join, as a party, any litigation, arbitration or other
proceeding against the Company or any of its current or former directors or officers (including derivative actions), other than (A) litigation by the Ancora Parties to enforce the provisions of this Agreement, (B) counterclaims with
respect to any proceeding initiated by, or on behalf of, the Company or its Affiliates against the Ancora Parties or Appointee or the Replacement and (C) the exercise of statutory appraisal rights; provided that the foregoing shall not prevent
the Ancora Parties from responding to or complying with a validly issued legal process (and the Company agrees that this Section 2(a)(ix) shall apply mutatis mutandis to the Company and its directors, officers, partners, members, employees,
agents (in each case, acting in such capacity) and Affiliates with respect to the Ancora Parties); 
 (x) encourage,
facilitate, support, participate in or enter into any negotiations, agreements, arrangements or understandings with respect to, the taking of any actions by any other Person in connection with the foregoing that is prohibited to be taken by the
Ancora Parties; or 
 (xi) request that the Company, directly or indirectly, amend or waive any provision of this Section 2
(including this
 clause (a)(xi)). 
 (b) At any meeting of the Company’s stockholders during the Standstill Period (whether
annual or special and whether by vote or by written consent) (each a “Stockholders Meeting”), the Ancora Parties and the Members shall: (i) be entitled to vote up to 4.9% of the Company’s outstanding shares of Common Stock
Beneficially Owned by them in their sole discretion with respect to any proposal that comes before a Stockholders Meeting and (ii) be required to either (A) vote all shares of Common Stock Beneficially Owned by them in excess of 4.9% of
the Company’s outstanding shares of Common Stock in accordance with the recommendation of the Board with respect to any proposal that comes before a Stockholders Meeting or (B) abstain from voting such shares of Common Stock Beneficially
Owned by them in excess of 4.9% with respect to any proposal that comes before a Stockholders Meeting; 

  
 5 

 
provided, however, that the Ancora Parties and the Members shall be permitted to vote all of the shares of Common Stock Beneficially Owned by them in their sole discretion with respect to any
Discretionary Voting Matter; provided, further, that the Ancora Parties and Members agree to keep the Ancora Parties’ and Members’ proposed voting and actual voting confidential to the same extent, and subject to the same exclusions, as
applicable to “Confidential Information” under the Non-Disclosure Agreement (mutatis mutandis to apply to the Ancora Parties and Members). For purposes of this Agreement, a “Discretionary Voting
Matter” means (A) any tender offer, exchange offer, merger, consolidation, acquisition, business combination, sale of a division, sale of substantially all assets, recapitalization, restructuring, liquidation, dissolution or other similar
extraordinary transaction, in each case outside the ordinary course of business and involving the Company or any of its direct or indirect subsidiaries or its or their securities or assets, (B) any proposed issuance of shares of Common Stock or
any securities convertible into, or exercisable or exchangeable for, shares of Common Stock, (C) approval of any compensatory plan or arrangement relating to the compensation of Company employees or the members of the Board that is submitted
for stockholder approval (but, for the avoidance of doubt, excluding the Company’s “say on pay” proposal) or (D) any proposal by the Company to implement any takeover defense measures or any other proposal by the Company that
would diminish or otherwise impair in any material respect the rights of Company stockholders. 
 (c) Notwithstanding anything in this
Agreement to the contrary, nothing in this Section 2 or elsewhere in this Agreement will be construed to limit or affect: (1) any action or inaction by Appointee or the Replacement in his or her capacity as a member of the Company’s
Board, provided he or she acts in good faith in the discharge of his or her fiduciary duties as a Board member; or (2) the ability of the Ancora Parties to engage in private discussions directly with the Chief Executive Officer of the Company,
or upon invitation by the Board, with other members of management or the Board. 
 (d) The “Standstill Period” shall begin as of
the date of this Agreement and shall remain in full force and effect until the close of business on the date thirty (30) calendar days before the last day of the advance notice deadline set forth in the Company’s by-laws for the 2019 annual meeting of stockholders of the Company (the “2019 Annual Meeting”); provided, however that if Appointee or the Replacement is a principal or employee of an Ancora Party or
Ancora Affiliate and remains on the Board following the date that is (30) calendar days before the last day of the advance notice deadline set forth in the Company’s by-laws for the 2019 Annual
Meeting, the Standstill Period shall further extend to the date that is thirty (30) calendar days following the last day that such Appointee or Replacement, as the case may be, serves as a director of the Company. 

3. Non-Disparagement. During the Standstill Period, (a) the Ancora Parties shall not, and
shall cause their respective directors, officers, partners, members, employees, agents (in each case, acting in such capacity) and Affiliates not to make, or cause to be made, by press release or other public statement to the press or media, any
statement or announcement that constitutes an ad hominem attack on, or otherwise disparages (as distinct from objective statements reflecting business criticism), the Company, its officers or its directors or any person who has served as an officer
or director of the Company in the past and (b) the Company shall not, and shall cause its directors, officers, partners, members, employees, agents (in each case, 

  
 6 

 
acting in such capacity) and Affiliates not to, make, or cause to be made, by press release or other public statement to the press or media, any statement or announcement that constitutes an ad
hominem attack on, or otherwise disparages (as distinct from objective statements reflecting business criticism), the Ancora Parties, the Members or their respective officers or directors or any person who has served as an officer or director of an
Ancora Party in the past). The foregoing shall not prevent the making of any factual statement including in any compelled testimony or production of information, either by legal process, subpoena, or as part of a response to a request for
information from any governmental authority with purported jurisdiction over the party from whom information is sought. 
 4. Director
Information. As a condition to the Appointee’s or the Replacement’s appointment to the Board and any subsequent nomination for election as a director at the 2018 Annual Meeting, the Appointee or the Replacement, as the case may be,
will provide any information the Company reasonably requires, including information required to be disclosed in a proxy statement or other filing under applicable law, stock exchange rules or listing standards, information in connection with
assessing eligibility, independence and other criteria applicable to directors or satisfying compliance and legal obligations, and will consent to appropriate background checks, to the extent, in each case, consistent with the information and
background checks required by the Company in accordance with past practice with respect to other members of the Board. If, following the completion of the Company’s initial background review process, the Board learns that the Appointee or the
Replacement, as the case may be, has committed, been indicted or charged with, or made a plea of nolo contendre to a felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud, then the Board may request that the Appointee
or the Replacement, as the case may be, resign from the Board and, in such case, the resulting vacancy shall be filled in the manner set forth in Section 1(c) of this Agreement. 

5. Disclosure of this Agreement. On the date of this Agreement, the Company and the Ancora Parties shall jointly issue a press release
(the “Press Release”) announcing this Agreement, substantially in the form attached hereto as Exhibit B. Prior to the issuance of the Press Release, neither the Company nor the Ancora Parties shall issue any press release or
public announcement regarding this Agreement or take any action that would require public disclosure thereof without the prior written consent of the other Party. No Party or any of its Affiliates shall make any public statement (including,
without limitation, in any filing required under the Exchange Act) concerning the subject matter of this Agreement inconsistent with the Press Release. During the period commencing on the date hereof and ending on the date this Agreement
terminates in accordance with Section 15, no Party shall make any public announcement or statement that is inconsistent with or contrary to the statements made in the Press Release, except as required by law or the rules and regulations under
any stock exchange or governmental entity with the prior written consent of the Ancora Parties and the Company, as applicable, and otherwise in accordance with this Agreement.

6. Representations and Warranties. 

(a) The Company represents and warrants to the Ancora Parties that: (a) the Company has the requisite corporate power and authority to
execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement and to bind 

  
 7 

 
it hereto and thereto; (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company
and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights
of creditors and subject to general equity principles; and (c) the execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree
applicable to the Company or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the
loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it
is bound. 
 (b) Each of the Ancora Parties represents and warrants to the Company that: (a) each Ancora Party and the authorized
signatory of such Ancora Party set forth on the signature page hereto has the requisite power and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement and to bind it hereto
and thereto; (b) this Agreement has been duly authorized, executed and delivered by such Ancora Party, constitutes a valid and binding obligation and agreement of such Ancora Party and is enforceable against such Ancora Party in accordance with
its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles;
(c) the execution, delivery and performance of this Agreement by such Ancora Party does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to Ancora or (ii) result in any
breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right
of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such Ancora Party is a party or by which it is bound; and (d) as of the date of this
Agreement, (i) the Ancora Parties beneficially own in the aggregate 1,172,553 shares of Common Stock, (ii) the Ancora Parties have no other equity interest in, or rights or securities to acquire through exercise, conversion or otherwise,
any equity interest in the Company and (iii) are not a party to any swap or hedging transactions or other derivative agreements of any nature with respect to any shares of Common Stock. 

7. Expenses. Each Party to this Agreement shall bear and pay all fees, costs and expenses that have been incurred or that are incurred
in the future by such Party in connection with, relating to or resulting from such Party’s efforts and actions, and any preparations therefor, prior to the execution and delivery of this Agreement; provided, however, that the Company agrees to
reimburse the Ancora Parties for their reasonable and documented expenses in connection with the negotiation and entry into this Agreement and the matters related thereto in an amount not to exceed $5,000 in the aggregate. 

  
 8 

 8. Amendment in Writing. This Agreement and each of its terms may only be amended, waived,
supplemented or modified in a writing signed by the signatories hereto or their respective clients. 
 9. Governing Law/Venue/Waiver of
Jury Trial/Jurisdiction. 
 Each of the Parties (a) consents to submit itself to the personal jurisdiction of the Court of Chancery
or other federal or state courts of the State of Delaware in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court, (c) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the Court of Chancery or
other federal or state courts of the State of Delaware, and each of the Parties irrevocably waives the right to trial by jury, (d) agrees to waive any bonding requirement under any applicable law, in the case any other Party seeks to enforce
the terms by way of equitable relief, and (e) irrevocably consents to service of process by a reputable overnight delivery service, signature requested, to the address of such Party’s principal place of business or as otherwise provided by
applicable law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING WITHOUT LIMITATION VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE
WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE. 
 10. Notice of Breach and Remedies. 

(a) The Parties expressly agree that an actual or threatened breach of this Agreement by any Party will give rise to irreparable injury that
cannot adequately be compensated by damages. Accordingly, in addition to any other remedy to which it may be entitled, each Party shall be entitled to seek a temporary restraining order or injunctive relief to prevent a breach of the provisions of
this Agreement or to secure specific enforcement of its terms and provisions. 
 (b) The Ancora Parties expressly agree that they will not
be excused or claim to be excused from performance under this Agreement as a result of any material breach by the Company unless and until the Company is given written notice of such breach and ten (10) business days either to cure such breach
or for the Company to seek relief in court. If the Company seeks relief in court, the Ancora Parties irrevocably stipulate that any failure to perform by the Ancora Parties shall be deemed to constitute irreparable harm under this Agreement,
therefore the Company shall not be required to provide further proof of irreparable harm in order to obtain equitable relief and the Ancora Parties shall not deny or contest that such circumstances would cause the Company irreparable harm. If, after
such ten (10) business day period, the Company has not either reasonably cured such material breach or obtained relief in court, the Ancora Parties may terminate this Agreement by delivery of written notice to the Company. 

(c) The Company expressly agrees that it will not be excused or claim to be excused from performance under this Agreement as a result of any
material breach by the Ancora Parties 

  
 9 

 
or any Member thereof unless and until the Ancora Parties are given written notice of such breach and ten (10) business days either to cure such breach or for the Ancora Parties to seek
relief in court. If the Ancora Parties seek relief in court, the Company irrevocably stipulates that any failure to perform by the Company shall be deemed to constitute irreparable harm under this Agreement, therefore the Ancora Parties shall not be
required to provide further proof of irreparable harm in order to obtain equitable relief and the Company shall not deny or contest that such circumstances would cause the Ancora Parties irreparable harm. If, after such ten (10) business day
period, the Ancora Parties have not either reasonably cured such material breach or obtained relief in court, the Company may terminate this Agreement by delivery of written notice to the Ancora Parties. 

11. Severability. If at any time subsequent to the date hereof, any provision of this Agreement shall be held by any court of competent
jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this
Agreement. 
 12. Non-Waiver. No failure or delay by a Party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder. 

13. Entire Agreement. This Agreement constitutes the full, complete and entire understanding, agreement, and arrangement of and between
the Parties with respect to the subject matter hereof and supersedes any and all prior oral and written understandings, agreements and arrangements between them. There are no other agreements, covenants, promises or arrangements between the Parties
other than those set forth in this Agreement (including the attachments hereto). 
 14. Notice. All notices and other communications
which are required or permitted hereunder shall be in writing and sufficient if by same-day hand delivery (including delivery by courier) or sent by email, addressed as follows: 

If to the Company: 
 Potbelly
Corporation 
 111 N. Canal Street, Suite 850 

Chicago, Illinois 60606 

Attention: Matt Revord 

  Senior Vice President, Chief Legal Officer, General Counsel & Secretary

Email: matt.revord@potbelly.com 

with a copy, which will not constitute notice, to: 

Mayer Brown LLP 

  
 10 

 71 South Wacker Drive 

Chicago, Illinois 60606 

Attention: Edward S. Best 
 Email:
ebest@mayerbrown.com 
 If to Ancora: 

Frederick DiSanto 
 Chairman and
Chief Executive Officer 
 Ancora Advisors, LLC 

6060 Parkland Boulevard, Suite 200 

Cleveland, Ohio 44124 
 Email:
fred@ancora.net 
 with a copy, which will not constitute notice, to: 

Olshan Frome Wolosky LLP 
 1325
Avenue of the Americas 
 New York, New York 10019 

Attention: Steve Wolosky 
 Email:
swolosky@olshanlaw.com 
 15. Termination. This Agreement shall cease, terminate and have no further force and effect upon the
expiration of the last day of the Standstill Period as set forth in Section 2, unless earlier terminated pursuant to Section 10 hereof or by mutual written agreement of the Parties; provided that Sections 7 through 20 shall survive the
termination of this Agreement. 
 16. Further Assurances. The Ancora Parties and the Company agree to take, or cause to be taken, all
such further or other actions as shall reasonably be necessary to make effective and consummate the transactions contemplated by this Agreement. 

17. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their
respective successors and permitted assigns. No Party may assign or otherwise transfer either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other Parties; provided,
however, that the Ancora Parties may assign this Agreement as set forth in Section 1(h). Any purported transfer requiring consent without such consent shall be void. 

18. No Third Party Beneficiaries. This Agreement is solely for the benefit of the Parties and is not enforceable by any other Person.

 19. Interpretation. Each of the Parties acknowledges that it has been represented by counsel of its choice throughout all
negotiations that have preceded the execution of this Agreement, and that it has executed this Agreement with the advice of such counsel. Each Party and its counsel cooperated and participated in the drafting and preparation of this Agreement,

  
 11 

 
and any and all drafts relating thereto exchanged among the Parties shall be deemed the work product of all of the Parties and may not be construed against any Party by reason of its drafting or
preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any Party that drafted or prepared it is of no application and is hereby expressly waived by each of the
Parties, and any controversy over interpretations of this Agreement shall be decided without regard to events of drafting or preparation. 

20. Counterparts. This Agreement may be executed by the Parties in separate counterparts (including by fax, jpeg, .gif, .bmp and .pdf),
each of which when so executed shall be an original, but all such counterparts shall together constitute one and the same instrument. 

  
 12 

 IN WITNESS WHEREOF, the Parties hereto have each executed this Agreement on the date set forth
below. 
 Dated: October 2, 2017 
  

			
	POTBELLY CORPORATION
		
	By:	  	 /s/ Peter Bassi

	Name:	  	Peter Bassi
	Title:	  	Chairman of the Board
	
	ANCORA ADVISORS, LLC
		
	By:	  	 /s/ Fred DiSanto

	Name:	  	Fred DiSanto
	Title:	  	Chairman & CEO
	
	ANCORA CATALYST FUND LP
		
	By:	  	Ancora Advisors, LLC
		  	Its General Partner
		
	By:	  	 /s/ Fred DiSanto

	Name:	  	Fred DiSanto
	Title:	  	Chairman & CEO
	
	MERLIN PARTNERS LP
		
	By:	  	Ancora Advisors, LLC
		  	Its General Partner
		
	By:	  	 /s/ Fred DiSanto

	Name:	  	Fred DiSanto
	Title:	  	Chairman & CEO
	
	 /s/ Fred DiSanto

	Frederick DiSanto

  
 13 

 Exhibit A 

Non-Disclosure Agreement 

October 2, 2017 
 Reference
is made to the Settlement Agreement, dated October 2, 2017 (the “Settlement Agreement”), by and among the Potbelly Corporation (the “Company”), the Ancora Parties and Joseph Boehm, as representative of the Ancora Parties
(the “Director”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Settlement Agreement, and the rules of interpretation set forth in the Settlement Agreement shall apply to this Non-Disclosure Agreement mutatis mutandis. 
 The Director may be provided certain information and data in
connection with his serving as a director of the Company that the Company wishes to keep confidential, including information (whether furnished in writing or electronic format or orally) regarding the Company’s governance, board of directors,
management, plans, strategies, business, finances or operations and information that the Company has obtained from third parties and with respect to which the Company is obligated to maintain confidentiality (collectively, “Confidential
Information”). Except as provided in this Non-Disclosure Agreement, the Director will not disclose any Confidential Information in any manner whatsoever or use any Confidential Information other than in
connection with serving as a director of the Company without, in each instance, securing the prior written consent of the Company (acting through a resolution of a majority of the Company’s directors). 

Except as set forth in this paragraph, this Non-Disclosure Agreement shall not prevent the Director
from privately disclosing Confidential Information to (i) officers, directors, accountants and counsel for the Company, (ii) the Director’s legal counsel or legal counsel to the Ancora Parties (each a “Director
Representative” and collectively, the “Director Representatives”) who needs to know such information for the sole purpose of advising the Director on his actions as a director of the Company or advising Ancora Advisors, LLC
(“Ancora Advisors”) and the Ancora Parties (or the Ancora Affiliates) on its (or their) investment(s) in the Company or (iii) Frederick DiSanto, James Chadwick and Brian Hopkins, each an associate of Ancora Advisors (each an
“Ancora Principal” and, collectively, the “Ancora Principals”). Notwithstanding the foregoing, it is understood and agreed that the Director will not disclose any information that the Director learns or obtains in his capacity as
a director of the Company to any Director Representative or any Ancora Principal to the extent such disclosure would be reasonably likely to constitute a waiver of the attorney-client privilege between the Company and its counsel or the
Company’s attorney work product privilege. Any Director Representative shall only be provided Confidential Information to the extent that such Director Representative is informed of the confidential nature of the Confidential Information and
agrees or is otherwise obligated to keep such information confidential and to restrict the use of such confidential information in accordance with the terms of this Non-Disclosure Agreement. The Ancora
Principals agree to keep confidential the Confidential Information and to restrict the use of such Confidential Information in accordance with the terms of this Non-Disclosure Agreement, to be bound by this Non-Disclosure Agreement on the same terms as the Director by countersigning this 

  
 A-1 

 
Non-Disclosure Agreement and not to use any Confidential Information in a manner that may be detrimental to the Company or its subsidiaries. The Director, Ancora Advisors and the Ancora Parties
shall be responsible for any breach of this Agreement by the Director, any Director Representatives, Ancora Advisors, the Ancora Parties or Ancora Principals. 

The term “Confidential Information” shall not include information that (a) is at the time of disclosure or thereafter becomes
generally available to the public other than as a result of a disclosure by the Director, Ancora Advisors, the Ancora Parties, a Director Representative or an Ancora Principal in violation of the terms of this
Non-Disclosure Agreement; (b) was, prior to disclosure by the Company, already in the possession of the Director, a Director Representative, Ancora Advisors, the Ancora Parties or an Ancora Principal;
provided that the source of such information was, to such person’s knowledge, not bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation of confidentiality to, the Company; (c) becomes available to
the Director, a Director Representative, Ancora Advisors, the Ancora Parties or an Ancora Principal on a non-confidential basis from a source other than the Company, an affiliate of the Company or an agent,
representative, attorney, advisor, director, officer or employee of the Company (collectively, the “Company Representatives”) that is, to such person’s knowledge, not bound by a confidentiality agreement with, or other contractual,
legal or fiduciary obligation of confidentiality to, the Company, and is not, to such person’s knowledge, under an obligation to the Company not to transmit the information to such person; or (d) was independently developed by the
Director, a Director Representative, Ancora Advisors, the Ancora Parties or an Ancora Principal without reference to or use of the Confidential Information. 

The Director is aware, and will advise any Director Representative or an Ancora Principal who is informed of the matters that are the subject
of this Non-Disclosure Agreement, that the Confidential Information may constitute material, non-public information and of the restrictions imposed by the United States
securities laws on the purchase or sale of securities by any person who is aware of material, non-public information and on the communication of such information to any other person who may purchase or sell
such securities on the basis of such information. The Director, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora Principal to whom the Director transmits Confidential Information under this Non-Disclosure Agreement will comply with all applicable federal and state securities laws in connection with the purchase or sale, directly or indirectly, of securities of the Company or any other entity of which
the Director is provided material non-public information in his capacity as a director of the Company for as long as the Director, Ancora Advisors, the Ancora Parties any Director Representative or any Ancora
Principal are in possession of material non-public information about the Company. The Director and the Company acknowledge that none of the provisions hereto shall in any way limit Ancora Advisors’, the
Ancora Parties’ or the Ancora Principals’ activities in the ordinary course of business if such activities will not violate applicable securities laws or the obligations set forth in this
Non-Disclosure Agreement. 
 Each of the Director, any Ancora Principal and any Director
Representative to whom the Director transmits Confidential Information under this Non-Disclosure Agreement acknowledges, or shall be deemed to acknowledge, that none of the Company, any affiliate of the
Company or any Company Representative makes any representation or warranty, express or implied, as to the accuracy or completeness of the Confidential Information. None of the 

  
 A-2 

 
Company, any affiliate of the Company or any Company Representative shall have any liability to the Director, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora
Principal hereunder relating to or resulting from the use of the Confidential Information by the Director, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora Principal or any errors in or omissions from the Confidential
Information. 
 In the event that the Director, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora Principal is
requested in any proceeding or governmental inquiry to disclose any Confidential Information, the Director will give the Company prompt written notice, to the extent not legally prohibited, of such request so that the Company may seek an appropriate
protective order (at the Company’s sole expense) or waive compliance with the applicable provisions of this Non-Disclosure Agreement. If the Company seeks a protective order, the Director, Ancora
Advisors, the Ancora Parties, and the Ancora Principals agree to, and shall cause any Director Representative to, provide such cooperation as the Company shall reasonably request and in no event will they oppose action by the Company to obtain a
protective order or other relief to prevent the disclosure of Confidential Information or to obtain reliable assurance that confidential treatment will be afforded to the Confidential Information. If in the absence of a protective order, the
Director, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora Principal, based upon the advice of counsel, is legally required to disclose Confidential Information, such person or entity may disclose without liability
under this Non-Disclosure Agreement such portion of the Confidential Information that counsel advises that the Director, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora Principal
is legally required to disclose, so long as the recipient of such Confidential Information is informed of this Non-Disclosure Agreement and the confidential nature of such Confidential Information. For the
avoidance of doubt, there shall be no legal requirement applicable to the Director, Ancora Advisors, the Ancora Parties, or the Ancora Principals to disclose any Confidential Information solely by virtue of the fact that, absent such disclosure,
such parties would be prohibited from purchasing, selling, or engaging in derivative or other transactions with respect to securities of the Company. 

The parties agree that irreparable damage would occur in the event any of the provisions of this
Non-Disclosure Agreement were not performed in accordance with the terms hereof and that such damage would not be adequately compensable in monetary damages. Accordingly, the parties hereto shall be entitled
to an injunction or injunctions to prevent breaches of this Non- Disclosure Agreement and to enforce specifically the terms and provisions of this Non-Disclosure
Agreement in the Court of Chancery or other federal or state courts of the State of Delaware (the “Delaware Courts”), in addition to any other remedies at law or in equity, and each party agrees it will not take any action, directly or
indirectly, in opposition to the party seeking relief on the grounds that any other remedy or relief is available at law or in equity. Each of the parties hereto agrees to waive any bonding requirement under any applicable law, in the case any other
party seeks to enforce the terms by way of equitable relief. In the event of litigation relating to this Non-Disclosure Agreement, if a court of competent jurisdiction determines that this Non-Disclosure Agreement has been breached, the breaching party will reimburse the non-breaching party for its reasonable and documented out-of-pocket costs and expenses (including legal fees and expenses) incurred in connection with all such litigation (including any appeal relating thereto). Furthermore, each of the parties hereto
irrevocably (a) 

  
 A-3 

 
consents to submit itself to the personal jurisdiction of the Delaware Courts in the event any dispute arises out of this Non-Disclosure Agreement,
(b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from the Delaware Courts, agrees that it shall not bring any action relating to this
Non-Disclosure Agreement in any court other than the Delaware Courts, (d) waives the right to trial by jury, and consents to service of process by the United States Postal Service or reputable overnight
mail delivery service, in each case, signature requested, to the address set forth in Section 14 of the Settlement Agreement or as otherwise provided by applicable law. THIS NON-DISCLOSURE AGREEMENT SHALL
BE GOVERNED IN ALL RESPECTS, INCLUDING WITH RESPECT TO VALIDITY, INTERPRETATION, EFFECT AND ENFORCEMENT, BY THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES THEREOF THAT WOULD REQUIRE OR PERMIT THE APPLICATION
OF THE LAWS OF ANY OTHER JURISDICTION. 
 This Non-Disclosure Agreement may not be amended except in
writing signed by all the parties hereto. No failure or delay by either party in exercising any right hereunder or any partial exercise thereof shall operate as a waiver thereof or preclude any other or further exercise of any right hereunder. 

The provisions of this Non-Disclosure Agreement relating to confidentiality shall terminate two
(2) years after the Director (or any Replacement) ceases to be a director of the Company. The invalidity or unenforceability of any provision of this Non-Disclosure Agreement shall not affect the validity
or enforceability of any other provision hereof. 
 All Confidential Information shall remain the property of the Company and none of the
Directors, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora Principal shall by virtue of any disclosure of or use of any Confidential Information acquire any rights with respect thereto, all of which rights (including
all intellectual property rights) shall remain exclusively with the Company. At any time after the date on which the Director (or any Replacement) is no longer a director of the Company, upon the request of the Company for any reason, the Director
and the Ancora Principals will, and will cause Ancora Advisors, the Ancora Parties, and any Director Representative to, promptly return to the Company or destroy all hard copies of the Confidential Information and use reasonable efforts to
permanently erase or delete all electronic copies of the Confidential Information in the possession or control of the Director, Ancora Advisors, the Ancora Parties, any Director Representative or any Ancora Principal. Notwithstanding anything to the
contrary contained in this paragraph, the Director, the Ancora Principals, Ancora Advisors, the Ancora Parties and any Director Representative shall be permitted to retain such Confidential Information as is necessary to enable them to comply with
any applicable document retention requirements under applicable law or regulation and to retain any computer records and computer files containing any Confidential Information if required pursuant to their respective current automatic archiving and
backup procedures; provided, however, that such retention shall be solely for legal, regulatory or archival purposes, as the case may be. 

Unless and until any Replacement executes a joinder to this Non-Disclosure Agreement and agrees to be
bound by the terms hereof applicable to the Director, the Ancora Principals shall not be permitted to discuss Confidential Information with, or obtain Confidential Information from, such substitute director. 

  
 A-4 

 Acceptance of the above terms shall be indicated by having this
Non-Disclosure Agreement countersigned by the Director, the Ancora Principal, Ancora Advisors and the Ancora Parties. 

Sincerely, 
 IN WITNESS WHEREOF, the Parties
hereto have each executed this Agreement on the date set forth below. 
 Dated: October 2, 2017 

 

			
	POTBELLY CORPORATION
		
	By:	  	 /s/ Pete Bassi

	Name:	  	Pete Bassi
	Title:	  	Chairman of the Board
	
	ANCORA ADVISORS, LLC
		
	By:	  	 /s/ Fred DiSanto

	Name:	  	Fred DiSanto
	Title:	  	Chairman & CEO
	
	 /s/ Frederick DiSanto

	Frederick DiSanto
	
	 /s/ James Chadwick

	James Chadwick
	
	 /s/ Brian Hopkins

	Brian Hopkins
	
	 /s/ Joseph Boehm

	Joseph Boehm

  
 A-5 

 Exhibit B 

Press Release 
 POTBELLY
NAMES NEW DIRECTOR 
 Potbelly Enters into Settlement Agreement with Ancora Advisors 

CHICAGO, Oct. 05, 2017 (GLOBE NEWSWIRE) — Potbelly Corporation (NASDAQ:PBPB) today announced its appointment of Joseph Boehm to its Board
of Directors. Mr. Boehm is a Portfolio Manager at Ancora Advisors LLC, a significant shareholder of the Company. Mr. Boehm will serve an initial term through the Company’s 2018 Annual Meeting of Stockholders (the “2018
Annual Meeting”), and the Company has agreed to include Mr. Boehm (or a replacement designated by the Ancora Parties) in the Company’s slate of director nominees for election at the 2018 Annual Meeting. Mr. Boehm or his
replacement will also serve as a member of the Board’s Nominating and Corporate Governance Committee and as a member of the Strategic Review Committee, which is undertaking a comprehensive review of the Company’s business strategy and
strategic business alternatives.     
 “We are pleased to welcome Joe to the board,” said Pete Bassi,
Chairman of the Board of Potbelly Corporation, “and we look forward to his perspective and contributions as we continue the review of our business strategy and our focus on driving shareholder value.” 

The appointment is part of a settlement agreement (the “Agreement”) with Ancora Advisors, LLC, an investment advisor in Cleveland,
Ohio and certain affiliated entities and others (collectively, the “Ancora Parties”). The term of the Agreement is scheduled to continue until the later of the close of business on the date thirty calendar days prior to the last day of the
advance notice deadline set forth in the Company’s by-laws for the Company’s 2019 Annual Meeting of Stockholders (the “2019 Annual Meeting”) or the date that is thirty calendar days
following the last day that Mr. Boehm (or any replacement that is a principal or employee of an Ancora Party) serves as a director of the Company (the “Standstill Period”). The Ancora Parties are only entitled to representation on the
Company’s Board so long as they continue to own at least 3% of the Company’s common stock. 
 During the Standstill Period, the
Ancora Parties and Mr. Boehm will not, among other things: acquire shares of the Company’s common stock such that they would then beneficially own more than 9.9% of the Company’s common stock, participate in any solicitation of
proxies that is inconsistent with Company’s recommendations or proposals, propose or participate in any change of control of the Company (though the Ancora Parties would be allowed to sell or tender their shares and otherwise receive
consideration, pursuant to any such transaction and to vote on any such transaction in their sole discretion), present any stockholder proposal at a stockholder meeting or institute or participate in any litigation against the Company or any of its
current or former directors or officers. 

  
 B-1 

 About Potbelly 

Potbelly Corporation is a fast-growing neighborhood sandwich concept offering toasty warm sandwiches, signature salads and other fresh menu
items served by engaging people in an environment that reflects the Potbelly brand. Our Vision is for our customers to feel that we are their “Neighborhood Sandwich Shop” and to tell others about their great experience. Our Mission is to
make people really happy and to improve every day. Our Passion is to be “The Best Place for Lunch.” The Company owns and operates over 400 shops in the United States and our franchisees operate over 40 shops domestically, in the Middle
East, the United Kingdom and Canada. For more information, please visit our website at www.potbelly.com. 
 Contact: 

Investor Relations 
 Investors@Potbelly.com 

312-428-2950 

  
 B-2

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