Document:

EX-10.6

 EXHIBIT 10.6 

AMENDMENT NO. 3 
 TO

 CREDIT AGREEMENT 

THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT (this “Amendment”) is entered into as of August 26, 2014 among
POTBELLY SANDWICH WORKS, LLC, an Illinois limited liability company (“Borrower”), the other Loan Parties (as such term is defined in the Credit Agreement), the financial institutions listed on the signature pages hereto as
lenders (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  

W I T N E S S E T H: 

WHEREAS, the Loan Parties, the Lenders and the Administrative Agent have entered into that certain Credit Agreement dated as of
September 21, 2012 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”); and 

WHEREAS, the Loan Parties desire to amend the Credit Agreement as set forth herein, and the Administrative Agent and the Lenders are
willing to do so on the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, in consideration of the
premises set forth above, the terms and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Definitions. Terms defined in the Credit Agreement that are used herein shall have the same meanings as are set forth
in the Credit Agreement for such terms unless otherwise defined herein. 
 2. Amendment to Credit Agreement. Upon the
occurrence of the Effective Time (as hereinafter defined): 
 (a) The defined term “Distribution Conditions” set forth in
Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 “Distribution
Conditions” means, with respect to any Restricted Payment, (a) no Default or Event of Default has occurred and is continuing or would occur as a result of the making of such Restricted Payment, as applicable, (b) the Borrower is
in compliance with the financial covenants set forth in Section 6.13 for the Computation Period ending on the last day of the last period in respect of which financial statements have been delivered pursuant to
Section 5.01(a) or 5.01(b), as applicable, determined on a pro forma basis (so that there shall be included as additional Total Funded Indebtedness an amount equal to the sum of the aggregate amount of such Restricted Payment to
the extent that the same results in an increase in the outstanding Secured Obligations), and (c) the Administrative Agent shall have received a certificate from an Authorized 

 
Representative of the Borrower not less than three (3) Business Days prior to the date of such Restricted Payment, as applicable, certifying that the foregoing conditions have been satisfied
and providing calculations supporting such certification, all in form and substance satisfactory to the Administrative Agent; provided, however, with respect to any Restricted Payment made during the period beginning on July 31, 2014 and
ending on September 5, 2014, such certificate and calculations may be provided subsequent to such Restricted Payment but not later than 60 days after such Restricted Payment. 

(b) Clause (v) of Section 6.08(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

(v) so long as the Distribution Conditions have been satisfied (as determined by the Administrative Agent in its reasonable discretion) at the
time of, and with respect to, any Restricted Payment not otherwise permitted by the foregoing clauses (i) through (iv), the Borrower may make such Restricted Payment to Holdings and Holdings may make (x) a one-time special dividend in the
amount of up to $55,000,000 out of the net proceeds of the initial Public Offering of Holdings, provided that such dividend shall be permitted only if the net cash proceeds received by Holdings from the initial Public Offering of Holdings are at
least $65,000,000, and (y) such Restricted Payment to holders of Equity Interests in Holdings in an aggregate amount (but excluding from such amount the amount of the special dividend referred to in the preceding clause (x)) not to exceed
(I) $35,000,000 in any trailing twelve month period ending on the date such Restricted Payment is made, or (II) $40,000,000 after the date hereof, 

(c) The following is added to Section 10 of the Credit Agreement as a new Section 10.12 thereof: 

10.12 Liability for Swap Obligations. No Loan Guarantor hereunder shall be deemed to be a guarantor of any Swap
Obligations if such Loan Guarantor is not an “Eligible Contract Participant” as defined in § 1(a)(18) of the Commodity Exchange Act and the applicable rules issued by the Commodity Futures Trading Commission and/or the Securities and
Exchange Commission (collectively, and as now or hereafter in effect, “the ECP Rules”) to the extent that the providing of such guaranty by such Loan Guarantor would violate the ECP Rules or any other applicable law or regulation. 

3. Conditions. When each of the following conditions has been completely satisfied as determined by the Administrative Agent in
its reasonable discretion, the amendments set forth in Section 2 of this Amendment shall become effective (the time of such satisfaction being hereinafter referred to as the “Effective Time;” the Effective Time shall be deemed
to occur on the date of this Amendment (the “Effective Date”) unless the Administrative Agent provides written notice to the contrary to the Loan Parties): 

  
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 (a) Documents. The Administrative Agent shall have received each of the
following agreements, instruments and other documents, in each case in form and substance reasonably satisfactory to the Administrative Agent: 

(i) this Amendment duly executed and delivered by the Loan Parties, the Lenders and the Administrative Agent; and 

(ii) such other documents, agreements, instruments, certificates, opinions and other items as the Administrative Agent may
reasonably request in connection with this Amendment. 
 (b) Representations and Warranties; No Default. As of the date
hereof (and, if different, also as of the Effective Date): (a) the representations and warranties contained herein, in the Credit Agreement and in each other Loan Document shall be true and correct in all material respects (both immediately
before and after giving effect to consummation of the transactions contemplated hereby), except to the extent any such representation and warranty expressly refers to an earlier date, in which case such representation and warranty shall be true and
correct in all material respects as of such earlier date; and (b) no Default or Event of Default shall exist. 
 (c)
Proceedings. All resolutions, consents and other corporate or limited liability company proceedings taken or to be taken in connection with the transactions contemplated hereby, and all agreements, instruments, certificates and
other documents relating thereto, shall be in form and substance satisfactory to the Administrative Agent, as determined in its sole and absolute discretion, and shall be in full force and effect. 

(d) Fees. All out-of-pocket expenses required to be paid to the Administrative Agent’s special counsel on or prior
to the Effective Date shall have been paid in full. 
 4. Representations and Warranties of the Loan Parties. Each Loan
Party represents and warrants that: (a) the execution and delivery by such Loan Party of this Amendment, each other document, instrument and agreement to be executed and delivered by such Loan Party in connection herewith (this Amendment and
such other documents, instruments and agreements are referred to herein, collectively, as the “Amendment Documents”) and the Credit Agreement (as amended hereby) and the performance of such Loan Party’s obligations hereunder
and thereunder: (i) are within the corporate or limited liability company powers of such Loan Party, (ii) are duly authorized by the board of directors or managers of such Loan Party, and, if necessary, the shareholders or members of such
Loan Party, (iii) are not in contravention of the terms of such Loan Party’s articles or certificate of incorporation or formation, by-laws, operating, management or partnership agreement or other organizational documents, (iv) are
not in contravention of the terms of the provisions of any indenture, instrument or agreement to which such Loan Party is a party or is subject, or by which it, or its property, is bound, or conflict with or constitute a default thereunder, or
result in, or require, the creation or imposition of any Lien in, of or on the property of such Loan Party pursuant to the terms of any such indenture, instrument or agreement (other than Liens in favor of the Administrative Agent, for the benefit
of itself and the Lenders, under the Security Agreement and any other Permitted Encumbrances), (v) do not contravene any law, rule, regulation, order, 

  
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writ, judgment, injunction, decree or award binding on such Loan Party; and (vi) do not require any order, consent, adjudication, approval, license, authorization, or validation of, or
filing, recording or registration with, or exemption by, or other action in respect of any governmental or public body or authority, or any subdivision thereof; (b) each of this Amendment and the other Amendment Documents has been duly executed
and delivered by such Loan Party and constitutes the legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as limited by applicable bankruptcy, reorganization, insolvency or
similar laws affecting the enforcement of creditors’ rights generally and except as limited by general principles of equity; (c) the Credit Agreement, and each other Loan Document, after giving effect hereto, constitutes the legal, valid
and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally or by general equitable principles; (d) as of the date hereof, and (after giving effect hereto and consummation of the transactions contemplated hereby) as of the Effective Date, there exists no Default or Event
of Default; (e) no Domestic Subsidiaries have been formed or acquired after September 21, 2012 (except for Permitted J/Vs, if any), and (f) all conditions set forth in Section 3 of this Amendment have been satisfied in full
(provided that no representation or warranty is made as to the Administrative Agent’s or any Lender’s acceptance or satisfaction with any matter). All representations and warranties contained in this Amendment shall survive the execution
and delivery of this Amendment. 
 5. Consent of Loan Guarantor. Each Loan Party (other than Borrower), in its capacity
as a Loan Guarantor under Article X of the Credit Agreement, hereby consents to this Amendment and the amendments contained herein and confirms and agrees that, notwithstanding this Amendment and the effectiveness of the amendments contained
herein, the Loan Guaranty is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects notwithstanding the terms of this Amendment or any other amendment to the Credit Agreement. Nothing herein is
intended or shall be deemed to limit the Administrative Agent’s or any Lender’s rights under the Loan Guaranty to take actions without the consent of any Loan Guarantor. 

6. Reference to/Effect on the Credit Agreement, Etc. 

(a) On and after the Effective Date: (i) each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein,” or words of like import shall mean and be a reference to the Credit Agreement, as amended hereby, and (ii) each reference to the Credit Agreement in all other Loan Documents shall mean and be a reference
to the Credit Agreement, as amended hereby. 
 (b) Except as otherwise provided herein, the Credit Agreement, all other Loan Documents, all
covenants, representations and warranties made therein, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby reaffirmed, ratified and confirmed.

 (c) The execution, delivery and effectiveness of this Amendment and the other Amendment Documents shall not (i) except as
specifically stated herein, amend the Credit 

  
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Agreement or any other Loan Document, (ii) operate as a waiver of any right, power or remedy of the Administrative Agent or any Lender, or (iii) constitute a waiver of, or consent to
any departure from, any provision of the Credit Agreement or any other Loan Document or any other documents, instruments and agreements executed or delivered in connection therewith. 

(d) Each Loan Party acknowledges and agrees that: (i) as of the date hereof (and, if different, also as of the Effective Date), such Loan
Party has no defenses, claims or set-offs to the payment of the Secured Obligations or to the enforcement of the Secured Obligations, the Credit Agreement or any of the other Loan Documents; and (ii) the Liens granted to the Administrative
Agent, for the benefit of itself and the Lenders, by such Loan Party are and remain valid perfected Liens in the assets of such Loan Party securing the payment and performance of the Secured Obligations. 

(e) This Amendment and the other Amendment Documents shall each be deemed a Loan Document for the purposes of the Credit Agreement. 

7. Miscellaneous. 

(a) Choice of Law. This Amendment shall be governed by and construed in accordance with the internal laws (including,
without limitation, 735 ILCS Section 105/5-1 et seq., but otherwise without regard to the conflict of laws provisions) of the State of Illinois, but giving effect to federal laws applicable to national banks. 

(b) Severability. Any provision of any Amendment Document held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a
particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.  
 (c)
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AMENDMENT, ANY OTHER AMENDMENT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 (d) Headings. Section headings
used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment. 

  
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 (e) Counterparts. This Amendment may be executed and accepted in any number
of counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page
of this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment. 

[signature page(s) follow] 

  
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 IN WITNESS WHEREOF, this Amendment No. 3 to Credit Agreement has been duly executed as of
the day and year first above written. 
  

			
	 LOAN PARTIES:
  

POTBELLY SANDWICH WORKS, LLC

		
	By:		/s/ Charles Talbot
			 Name: Charles Talbot
 Title: Chief Financial
Officer

	
	POTBELLY CORPORATION
		
	By:		/s/ Charles Talbot
			 Name: Charles Talbot
 Title: Chief Financial
Officer

	
	POTBELLY ILLINOIS, INC.
		
	By:		/s/ Charles Talbot
			 Name: Charles Talbot
 Title: Chief Financial
Officer

 
			
	 POTBELLY FRANCHISING, LLC
  

PSW NORTH BRIDGE, LLC
 PSW NAPERVILLE, LLC

POTBELLY SANDWICH WORKS DC-1, LLC
 PSW 55 WEST MONROE, LLC

PSW WEST JACKSON, LLC
 PSW 555 TWELFTH STREET, LLC

PSW WEST JACKSON, LLC
 PSW OLD ORCHARD, LLC

PSW ROCKVILLE CENTER, LLC
 PSW GENEVA IL, LLC

PSW LINCOLNSHIRE, LLC
 PSW IC, LLC

PSW CLARK, LLC
 PSW NYAVE, LLC

PSW DC ACQUISITION LLC
 PSW PBD ACQUISITION LLC

 
 By: Potbelly Illinois, Inc., as Manager

		
	By:		/s/ Charles Talbot
			 Name: Charles Talbot
 Title: Chief Financial
Officer

	
	JPMORGAN CHASE BANK, N.A., individually as a Lender, and as Administrative Agent, Issuing Bank and Swingline Lender
		
	By:		/s/ Jonathan M. Deck
			 Name: Jonathan M. Deck
 Title: Authorized
OfficerEX-10.20

 EXHIBIT 10.20 

Director Compensation Plan 
 In accordance
with the Potbelly Corporation 2013 Long-Term Incentive Plan (the “Plan”), each non-employee Director of Potbelly Corporation (the “Company”) and Potbelly Illinois, Inc. is eligible to receive compensation for services rendered.
Each non-employee/non-investor Director who is a member of the Board of Directors as of the end of the Annual Meeting of the Stockholders (the “Annual Meeting”) is eligible to receive $80,000 in annual compensation, and each
non-employee/investor Director who is a member of the Board of Directors as of the Annual Meeting is eligible to receive $40,000 in annual compensation. 

Each non-employee/non-investor Director may elect between the following forms of payment for his or her annual compensation: 

 

	 	1.	The non-employee/non-investor Director receives unrestricted shares of Common Stock (as defined in the Plan) (the “Shares”) having a grant date Fair Market Value of $80,000 (with a grant date on or
before the end of the second fiscal quarter); or 

  

	 	2.	The non-employee/non-investor Director receives: 

  

	 	a.	$40,000 in cash (half of which will be paid on before the end of the second fiscal quarter and half of which will be paid on or before the end of the fiscal year); plus 

 

	 	b.	Shares having a grant date Fair Market Value of $40,000 (with a grant date on or before the end of the second fiscal quarter). 

If any non-employee/non-investor Director fails to make an election prior to the end of the first fiscal quarter, such Director will be deemed
to have elected to receive $40,000 in cash plus Shares having a grant date Fair Market Value of $40,000. 
 If any non-employee/non-investor
Director joins the Board of Directors of the Company and/or Potbelly Illinois, Inc. after the Annual Meeting of the Stockholders (the “Annual Meeting”), such Director’s compensation shall be pro-rated accordingly and paid prior to the
next Annual Meeting. 
 Each non-employee/investor Director is eligible to receive his or her annual compensation as Shares having a grant
date Fair Market Value of $40,000 (with a grant date on or before the end of the second fiscal quarter).

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