Document:

EXHIBIT 10.1

 

CONVERSION AGREEMENT

 

THIS CONVERSION
AGREEMENT (this “Agreement”) is made and entered into as of June 24, 2015 (the “Effective Date”),
by and between REAL GOODS SOLAR, INC., a Colorado corporation (“Issuer”), and RIVERSIDE FUND III, L.P., a limited
partnership formed in the State of Delaware (“Noteholder”). Issuer and Noteholder are sometimes each referred
to herein as a “Party” and collectively as the “Parties.”

 

RECITALS

 

A.           Pursuant to the
Shareholders Agreement, dated as of December 19, 2011, among Issuer, Riverside Renewable Energy Investments, LLC, a Delaware limited
liability company and wholly owned subsidiary of the Noteholder (“Riverside”), and Gaiam, Inc., a Colorado corporation,
Riverside agreed to make a cash advance to the Issuer in an amount of up to $3,150,000.

 

B.           On May 4, 2012,
Issuer issued a Promissory Note to Noteholder in the original principal amount of $3,000,000 (as amended and restated on March
27, 2013, May 21, 2013, August 18, 2014 and March 16, 2015, the “$3 Million Note”).

 

C.           On June 20, 2012,
Issuer issued a Promissory Note to Noteholder in the original principal amount of $150,000 (as amended and restated on March 27,
2013, May 21, 2013, August 18, 2014 and March 16, 2015, the “$150,000 Note”, and together with the $3 Million
Note, the “Notes”).

 

D.           The Parties acknowledge
and agree that as of the Effective Date, the aggregate outstanding principal and accrued interest under the Notes is equal to $4,238,030.42
(the “Convertible Balance”).

 

E.           The Parties agree
that the Notes shall be converted into shares of the Issuer’s Class A common stock, par value $0.0001 per share (the “Common
Stock”), as repayment in full for the Convertible Balance (the “Conversion”). Accordingly, on the
Effective Date and upon the Conversion, there will be no amounts of principal or interest due under the Notes.

 

AGREEMENT

 

NOW, THEREFORE, in
accordance with the Recitals set forth above and for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties covenant and agree as follows:

 

1.            Conversion.

 

(a)          Recitals.
The Recitals set forth above are hereby incorporated by reference into this Agreement and made a part hereof.

 

(b)          Conversion
and Satisfaction of the Convertible Balance. The Parties hereby agree that the Notes shall be convertible, and at closing of
the Conversion shall be converted into Common Stock at a conversion price of $3.29 per share, the closing price of the Common Stock
on the date of this Agreement, in full satisfaction of the repayment of the Convertible Balance. At the closing of the Conversion,
(i) the Notes shall be converted into shares of Common Stock, (ii) the Convertible Balance shall be deemed paid in full, and (iii)
the Issuer shall issue to Noteholder 1,288,156 shares of Common Stock. The closing of the Conversion shall take place on the business
day on which all of the conditions set forth in Section 9 hereof are satisfied or at such other time as the parties may agree (the
“Closing Date”).

 

    	 

    	 

    

 

(c)          Maximum Percentage
and Obligation to Deliver Capacity Shares. Notwithstanding anything herein to the contrary, the Issuer shall not issue any
shares of Common Stock to Noteholder if such issuance would result in Noteholder and its affiliate as a group holding shares of
Common Stock in excess of 19.99% (the “Maximum Percentage”) of the Issuer’s Common Stock outstanding immediately
after giving effect to the Conversion unless and until the Issuer obtains the Shareholder Approval (as defined in Section 7). In
lieu of issuing any shares of Common Stock in excess of the Maximum Percentage (the “Capacity Shares”) to Noteholder,
the Issuer hereby agrees to issue the Capacity Shares to the Noteholder upon the Noteholder’s request at such time when the
Noteholder holds less than the Maximum Percentage, or at any time after the Issuer obtains the Shareholder Approval. At such time
or times after the Closing Date, the Noteholder may deliver a written notice to the Issuer in the form attached hereto as Exhibit
A (a “Capacity Notice”) of Noteholder’s election to receive all or any portion of the Capacity Shares.
Execution and delivery of a Capacity Notice with respect to less than all of the Capacity Shares shall have the effect of lowering
the number of Capacity Shares still available to Noteholder under this Agreement, if any, by the number of Capacity Shares set
forth on the Capacity Notice. On or before the first trading day following the date on which the Issuer has received a Capacity
Notice, the Issuer shall transmit by facsimile an acknowledgment of confirmation of receipt of the Capacity Notice to Noteholder.
The Issuer shall cause the Transfer Agent to issue to Noteholder in book entry form with the Transfer Agent the aggregate number
of Capacity Shares to which the Noteholder is entitled pursuant to the Capacity Notice within three business days after the Issuer’s
receipt of a Capacity Notice. Neither Noteholder nor its affiliates shall have any right to vote any Capacity Shares or receive
any economic benefit thereof until such time as the Capacity Shares are actually issued to the Noteholder or its designee in accordance
with the terms of this Agreement.

 

2.           Transferability
of the Shares; Registration; Lock-Up.

 

(a)          Noteholder understands
and acknowledges that the Common Stock has not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), or the securities laws of any state. Noteholder agrees that the Common Stock may not be sold, offered for sale,
transferred, pledged, hypothecated or otherwise disposed of except in compliance with the Securities Act and applicable state securities
laws. Noteholder understands that any sale, transfer, pledge, hypothecation or other disposition of the Common Stock may require,
in some states, specific approval by the appropriate governmental agency or commission of such states.

 

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(b)          Issuer hereby
agrees to prepare and file, with the Securities and Exchange Commission (the “Commission”) a registration statement
on Form S-3 (or, if Form S-3 is not then available to the Issuer, on such form of registration statement as is then available)
(the “Registration Statement”) within 45 days following the Effective Date, covering the Common Stock, together
with the other shares of the Issuer’s Common Stock held by Noteholder and its affiliates prior to the date of Closing Date.
Issuer shall use commercially reasonable efforts to cause such Registration Statement to be declared effective no later than 120
days following the Effective Date. Notwithstanding anything to the contrary contained in this Section 2, if the Issuer receives
written comments from the Commission which either (i) requires the Issuer to limit the number of securities which may be
included to a number which is less than the number sought to be included as filed with the Commission or (ii) requires the Issuer
to either exclude certain securities held by Noteholder or its affiliates or deem Noteholder or any such affiliates to be underwriters
with respect to securities they seek to include in such Registration Statement, then the Issuer may, following not less than three
Trading Days prior written notice to the Noteholder (y) remove from the Registration Statement such securities (the “Cut
Back Shares”) and/or (z) agree to such restrictions and limitations on the registration and resale of such securities,
in each case as the Commission may require in order for the Commission to allow such Registration Statement to become effective.

 

(c)          Noteholder hereby
agrees to enter into a Lock-up Agreement in substantially the form that was entered into in February of 2015, in connection with
any offering of the Issuer’s securities that is consummated within forty five (45) days after the Conversion.

 

3.           Representations
and Warranties of Issuer.

 

(a)          The Issuer has
the requisite corporate power and authority to enter into and to consummate the transactions contemplated by the Agreement and
otherwise to carry out its obligations thereunder. The execution and delivery of each of the Agreement by the Issuer and the consummation
by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Issuer and no
further action is required by the Issuer in connection therewith. This Agreement has been duly executed by the Issuer and, when
delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Issuer enforceable against
the Issuer in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application.

 

(b)          The execution,
delivery and performance of this Agreement by the Issuer and the consummation by the Issuer of the transactions contemplated hereby
do not and will not (i) conflict with or violate any provision of the Issuer’s articles of incorporation or bylaws, or (ii)
after complying with NASDAQ Rule 5250(e)(2), conflict with, or constitute a default (or an event that 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 (with
or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing an Issuer debt
or otherwise) or other understanding to which the Issuer is a party or by which any property or asset of the Issuer is bound or
affected, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Issuer is subject, or by which any property or asset of the Issuer is bound
or affected; such as would not, individually or in the aggregate, have or reasonably be expected to result in a material adverse
effect.

 

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(c)          The Issuer is
not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with,
any United States court or other federal, state, local or other governmental authority or other person in connection with the execution,
delivery and performance by the Issuer of this Agreement, other than (i) the filing with the Commission of one or more Registration
Statements in accordance with the requirements herein, (ii) filings required by state securities laws, (iii) the filing of a Notice
of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act, if relying thereon, (iv) the notice
required under NASDAQ Rule 5250(e)(2), and (v) those that have been made or obtained prior to the date of this Agreement.

 

(d)         The shares of
Common Stock have been duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly
issued, fully paid and nonassessable, free and clear of any and all liens, encumbrances, pledges, hypothecations, security interests
or charges of any kind, whether voluntarily or otherwise (collectively, “Liens”).

 

4.           Representations
and Warranties of Noteholder. Noteholder hereby represents and warrants to Issuer that:

 

(a)          The Noteholder
has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by the Agreement
and otherwise to carry out its obligations thereunder. The execution and delivery of each of the Agreement by the Noteholder and
the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of
the Noteholder and no further action is required by the Noteholder in connection therewith. This Agreement has been duly executed
by the Noteholder and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of
the Noteholder enforceable against the Noteholder in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally
the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

(b)          Noteholder has
good and valid title to the Notes, free and clear of any and all Liens, (i) the Notes are not subject to any right of any other
person or entity to acquire any interest in the Notes, and (ii) the Notes are not subject to any restriction on transfer thereof
except for under applicable federal and state securities laws.

 

(c)          The shares of
Common Stock are being acquired by Noteholder for its own account and for investment purposes only and not with a view to any resale
or distribution thereof, in whole or in part, to others, and Noteholder is not participating, directly or indirectly, in a distribution
of such shares of Common Stock and will not take, or cause to be taken, any action that would cause Noteholder to be deemed an
“underwriter” of such shares of Common Stock, as defined in Section 2(11) of the Securities Act.

 

(d)          Noteholder has
had an opportunity to ask questions of, and receive satisfactory answers from, representatives of Issuer concerning the terms and
conditions pursuant to which the Conversion and the issuance of the shares of Common Stock is being made and all material aspects
of Issuer and its proposed business, and any request for such information has been fully complied with to the extent Issuer possesses
such information or can acquire it without unreasonable effort or expense.

 

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(e)          Noteholder is
an “accredited investor” within the meaning of Rule 501 of the Securities Act and Noteholder is able to bear the economic
risk of its entire investment in the Issuer’s Common Stock.

 

(f)           Noteholder understands
that the shares of Common Stock have not been registered under the Securities Act in reliance upon a specific exemption therefrom,
which exemption depends upon, among other things, the bona fide nature of the Noteholder’s investment intent as expressed
herein. Noteholder understands that the shares of Common Stock must be held indefinitely unless subsequently registered under the
Securities Act and qualified under applicable state securities laws, or unless exemption from such registration and qualification
are otherwise available. Noteholder is aware of the provisions of Rule 144 promulgated under the Securities Act.

 

(g)          Noteholder is
an investor who has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and
risks of an investment in Issuer based upon: (i) the information furnished to Noteholder by Issuer; (ii) Noteholder’s personal
knowledge of the business and affairs of Issuer; (iii) the records, files, and plans of Issuer to all of which Noteholder has had
full access; (iv) such additional information as Noteholder may have requested and has received from Issuer; and (v) the independent
inquiries and investigations undertaken by Noteholder.

 

(h)          No person has
given any information or made any representation not contained in any disclosure documents referred to above or otherwise provided
to Noteholder in writing by a person employed or authorized in writing by Noteholder. Purchaser understands and agrees that any
information or representation not contained therein must not, and will not, be relied upon and that nothing contained therein should
be construed as legal or tax advice to Noteholder.

 

(i)           No person has
made any direct or indirect representation or warranty of any kind to Noteholder with respect to the economic return which may
accrue to Noteholder. Noteholder has consulted with his own advisors with respect to an investment in Issuer

 

(j)           Noteholder is
duly authorized to execute this Agreement, and this Agreement, when executed and delivered by Noteholder, will constitute a legal,
valid and binding obligation enforceable against Noteholder in accordance with its terms, and the execution, delivery, and performance
of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate
or other necessary action on the part of Noteholder.

 

5.           Certificates;
Restrictive Legends.

 

(a)          The shares of
Common Stock will be issued in book entry form with the Transfer Agent. If in the future, the shares of Common Stock are certificated,
the certificates representing such shares of Common Stock shall a legend substantially in the following form:

 

THESE SECURITIES
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ANY APPLICABLE
STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

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6.           Listing of
Shares of Common Stock. The Issuer agrees, (i) if the Issuer applies to have the Common Stock traded on any Trading Market
other than the Trading Market on which the Common Stock is traded as of the date of this Agreement, it will include in such application
the shares of Common Stock, and will take such other action as is necessary or desirable to cause the shares of Common Stock to
be listed on such other Trading Market as promptly as possible, and (ii) it will take all action reasonably necessary to continue
the listing and trading of its Common Stock on a Trading Market and will comply in all material respects with the Issuer’s
reporting, filing and other obligations under the bylaws or rules of the Trading Market.

 

(a)          “Trading
Market” means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global
Market, the NASDAQ Capital Market or the OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date
in question.

 

7.           Shareholder
Approval. The Issuer shall include in its proxy statement for its next annual meeting of shareholders, a proposal for the Issuer’s
shareholders to approve, in connection with the Conversion and pursuant to Nasdaq Rule 5635(b), the issuance of shares of Common
Stock to Noteholder and/or its affiliates in excess of 20% of the outstanding shares of the Common Stock or voting power, where
such ownership or voting power would be the largest ownership position in the Issuer (the “Shareholder Approval”).
Notwithstanding the forgoing, if all shares of Common Stock issuable under this Agreement have been issued in compliance with Nasdaq
Rule 5635(b) no such proposal will be required.

 

8.           Conditions
Precedent to Closing. The obligation of the parties to close the transactions contemplated hereby shall be subject to the fulfillment
and satisfaction, prior to or at the closing, of the following conditions, or the waiver thereof by the applicable party:

 

(a)          Representations
and Warranties. The representations and warranties of the parties shall be true and correct in all material respects as of
the date when made and as of the Closing Date as though originally made at that time (except for representations and warranties
that speak as of a specific date, which shall be true and correct in all material respect as of such specific date).

 

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(b)          Fairness
Opinion. The Issuer shall have received from WestPark Capital, Inc. a fairness opinion with respect to the Conversion in a
form reasonably acceptable to the Issuer.

 

(c)          Transfer
Agent Instructions. The Issuer shall have provided instructions to the Transfer Agent to deliver the shares of Common Stock
to the Noteholder.

 

(d)          No Injunction.
No injunction or restraining order shall be in effect which forbids or enjoins the consummation of the transactions contemplated
by this Agreement, no litigation for such purpose shall be pending or threatened, and no law shall have been enacted which prohibits,
restricts or delays the consummation of the transactions contemplated hereby.

 

(e)          Approvals.
Any governmental agency or third party approvals, consents, or waivers necessary for consummation of the transactions contemplated
by this Agreement shall have been obtained in form and substance satisfactory to Issuer.

 

9.            Modification.
Neither this Agreement nor any provisions hereof shall be waived, modified, discharged or terminated except by an instrument in
writing signed by the party against whom any such waiver, modification, discharge or termination is sought.

 

10.          Governing
Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Colorado without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Colorado or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Colorado.

 

11.          Counterparts.
This Agreement may be executed in counterparts, each of which (or any combination of which) when signed by all of the Parties shall
be deemed an original, but all of which when taken together shall constitute one agreement.

 

12.          Facsimile
or Electronic Mail. Executed copies hereof may be delivered by facsimile or electronic mail and upon receipt shall be deemed
originals and binding upon the Parties, and actual originals shall be promptly delivered thereafter.

 

13.          Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision(s) shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be
enforceable in accordance with its terms.

 

14.          Entire Agreement.
This Agreement constitutes the entire agreement and understanding of the Parties with respect to the subject matter hereof and
supersedes any and all prior negotiations, correspondence, agreements, understandings duties or obligations between the Parties
with respect to the subject matter hereof.

 

15.          Further Assurances.
From and after the Effective Date, upon the request of a Party, the other Party shall execute and deliver such instruments, documents
or other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes
of this Agreement.

 

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16.          Participation
in Preparation. This Agreement is the result of the joint efforts of the Parties, and each provision hereof has been subject
to the mutual consultation, negotiation and agreement of the Parties and there shall be no construction against any party based
on any presumption of that Party’s involvement in the drafting thereof.

 

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left blank]

 

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IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed on the Effective Date.

	 	 	 
	 	NOTEHOLDER:
	 	 	 
	 	RIVERSIDE
    FUND III, L.P.
	 	 	 
	 	By: Riverside
    Partners III, L.P., its general partner
	 	 	 
	 	By Riverside
    Partners III, LLC, its general partner
	 	 	 
	 	By:	/s/
    David Belluck
	 	Name:	David Belluck
	 	Title:	Manager
	 	 	 
	 	ISSUER:
	 	 	 
	 	REAL GOODS
    SOLAR, INC.,
	 	a Colorado
    corporation
	 	 	 
	 	By:	/s/
    Dennis Lacey
	 	 	Dennis Lacey
	 	 	Chief Executive Officer

 

    	 

    	 

    

 

EXHIBIT A

 

CAPACITY NOTICE

 

TO BE EXECUTED BY THE HOLDER TO RECEIVE
CAPACITY SHARES 

 

REAL
GOODS SOLAR, INC.

 

The undersigned holder
hereby exercises the right to receive _________________ of the shares of Class A Common Stock, par value $0.0001 per share (“Capacity
Shares”) of Real Goods Solar, Inc., a Colorado corporation (the “Company”) and hereby directs the
Company to deliver to the undersigned such number of Capacity Shares, in each case, in accordance with the terms of the Conversion
Agreement, dated as of June __, 2015, by and between the Company and Riverside Fund III, L.P.

 

Date: _______________ __, ______

 

RIVERSIDE FUND III, L.P.

	 	 	 
	By:	 	 
	Name:	 
	Title:	 

 

    	 

    	 

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Capacity Notice and hereby directs Computershare Trust Company, N.A. to issue, deliver and transfer the above
indicated number of shares of Common Stock.

 

			COMPUTERSHARE TRUST COMPANY, N.A.

	 	 	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:EX-10.1

 Exhibit 10.1 

RANDHIR THAKUR SEPARATION AGREEMENT AND RELEASE 

This Separation Agreement and Release (“Agreement”) is made by and between Randhir Thakur (“Executive”) and Applied
Materials, Inc. (the “Company”) (jointly referred to as the “Parties” and each individually referred to as a “Party”). 

RECITALS 
 WHEREAS,
Executive is currently employed by the Company as its Executive Vice President, General Manager, Silicon Systems Group; 
 WHEREAS,
Executive signed the standard Employee Agreement with the Company dated May 22, 2008 (the “Employee Agreement”); 
 WHEREAS,
Executive’s employment with the Company will terminate on a date (the “Termination Date”) that will not be later than October 30, 2015; 

WHEREAS, Executive holds stock-settled equity awards granted under, and subject to the terms and conditions of the Company’s Employee
Stock Incentive Plan (the “Plan”) and the related equity award agreements (collectively with the Plan, the “Stock Agreements”); 

WHEREAS, Executive holds an award of cash-settled performance units (the “Cash-Settled Performance Units”) granted under, and
subject to the terms and conditions of the Company’s Employee Stock Incentive Plan (the “Plan”) and the related performance units agreements (collectively with the Plan, the “Cash-Settled Units Agreements”); and 

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the
Executive may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of, or in any way related to Executive’s employment with, or separation from, the Company; 

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows: 

COVENANTS 
  

	 	1.	Consideration. 

 a. Continuing Employment. The Company will continue to employ
Executive on an at-will basis in his role as Executive Vice President, General Manager, Silicon Systems Group up to and including the Termination Date, and will continue to pay Executive his base salary in accordance with the Company’s regular
payroll practices up to and including the Termination Date. Prior to the Termination Date, Executive will perform the reasonable duties assigned to him by Gary Dickerson, the Company’s President and Chief Executive Officer, or
Mr. Dickerson’s delegate, to effectuate a smooth and orderly transition of his roles and responsibilities. Executive will continue to comply with his Employee Agreement as well as all other Company policies provided or made available to
Executive in writing. During his employment with the Company, Executive will continue to be eligible to participate in all benefits and incidents of employment, including the Company’s health insurance plan, and he will continue to accrue paid
time off (PTO). In addition, Executive will continue to vest in Executive’s outstanding stock-settled equity awards and Cash-Settled Performance Units on the same terms, schedule and conditions as set forth in the Stock Agreements or the
Cash-Settled Units Agreements, as applicable, governing such awards. The Company and Executive may terminate Executive’s employment with the Company prior to October 30, 2015, for any reason or no reason; provided, however, if the Company
terminates Executive’s employment prior to October 30, 2015, without Cause (as defined below), Executive will be eligible for the payments and benefits described in this Agreement (such a termination without Cause prior to October 30,
2015, and Executive’s termination on October 30, 2015 are each referred to as a “Qualifying Termination” and the date of any such Qualifying Termination is referred to as the “Qualifying Termination Date”). 

 b. Cash. If Executive incurs a Qualifying Termination, then provided: (i) Executive
executes this Agreement within 21 days of receiving this Agreement, and does not revoke his execution of this Agreement within seven (7) days thereafter; (ii) Executive does not breach this Agreement; and (iii) if this Agreement is
executed prior to his Qualifying Termination Date, then not earlier than his Qualifying Termination Date, and not later than 21 days after his Qualifying Termination Date, Executive executes and provides to the Company, and within seven
(7) days thereafter does not revoke his execution of, a Supplemental Release of Claims (the “Supplemental Release”) in the form set forth as Appendix B to this Agreement (together, the “Release Requirements”), the Company
will pay to Executive a total of $3,000,000.00 as cash severance, less applicable payroll tax and other required withholdings. This cash severance will be paid to Executive, subject to Section 29 below, as follows: $1,000,000.00 within
forty-five (45) days following the Termination Date (the “45-Day Payment”); $1,000,000.00 on March 15, 2016 (the “2nd Payment”) and $1,000,000.00 on, or within forty-five (45) days following, the one (1)-year
anniversary of the Qualifying Termination Date (the “1-Year Payment”), in each case payable less applicable payroll taxes and other required withholdings. Notwithstanding the foregoing, if Executive engages in a Disqualifying Activity (as
defined in Section 14 below) or breaches Section 9, 10, 11, 14 or 15 below during the period from his Termination Date through and including the one (1)-year anniversary of the Termination Date (the “Disqualifying Activity
Period”), if they are not yet paid, the obligation to pay to Executive any and all portions of the 2nd Payment and the 1-Year Payment not yet paid to Executive will immediately cease and no further payments of the 2nd Payment or 1-Year Payment
will be paid; and if they already are paid, Executive will be obligated to repay to the Company any and all portions of the 2nd Payment and the 1-Year Payment. Notwithstanding the foregoing, the Company will be obligated to pay the 45-Day Payment
and Executive will be entitled to retain the 45-Day Payment. 
 c. Benefits. Executive’s health insurance benefits will cease on
the last day of the month in which his Termination Date occurs, subject to Executive’s right to continue his health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). Except as
otherwise provided herein, Executive’s participation in all benefits and incidents of employment, including, but not limited to, the accrual of bonuses, PTO, and vesting (including, but not limited to, vesting of equity awards), will cease as
of the Termination Date. 

  
 2 

 d. Retention Bonus. Pursuant to the terms of the Retention Bonus and Equity Award
Amendments letter between the Company and Executive, effective October 18, 2013, as amended by the Amendment to the Retention Bonus and Equity award Amendments, effective December 19, 2014 (together, the “Retention Agreement”),
Executive is eligible to earn the Retention Bonus (as defined in the Retention Agreement) if Executive remains employed by the Company through October 27, 2015. Executive will remain eligible to earn the Retention Bonus in accordance with the
terms of the Retention Agreement, and any earned Retention Bonus will be paid at the time specified in, and in accordance with the terms of, the Retention Agreement. Notwithstanding the foregoing, however, if prior to October 27, 2015,
Executive incurs a Qualifying Termination, then subject to Executive’s satisfaction of the Release Requirements, the Company will pay to Executive any unpaid portion of the Retention Bonus, less applicable payroll tax and other required
withholdings, within forty-five (45) days following the Termination Date. 
  

	 	2.	Equity Compensation and Cash-Settled Performance Units. 

 a. Equity Compensation.
If Executive incurs a Qualifying Termination then, subject to Executive’s satisfaction of the Release Requirements, the vesting of the number of shares of Executive’s restricted stock and performance shares agreements shown on Appendix A
will accelerate. Such accelerated shares, if any, will be delivered to Executive, less applicable payroll tax and other required withholdings, within sixty (60) days following the Qualifying Termination Date in accordance with the terms of the
Stock Agreements related to the applicable equity award and subject to Section 29 below. Except as provided in this Section 2(a), any stock-settled performance shares, restricted stock units, shares of restricted stock and stock options
will cease vesting as of the Termination Date and any unearned or unvested shares subject thereto will be immediately forfeited. Except as provided herein, all of Executive’s stock-settled performance shares, restricted stock units, shares of
restricted stock and stock options will continue to be governed by the terms and conditions of the applicable Stock Agreements. 
 b.
Cash-Settled Performance Units. If Executive incurs a Qualifying Termination then, subject to Executive’s satisfaction of the Release Requirements, the vesting of $1,293,750.00 of the Cash-Settled Performance Units will accelerate. Such
amount, if any, will be delivered to Executive, less applicable payroll tax and other required withholdings, within sixty (60) days following the Termination Date in accordance with the terms of the Cash-Settled Units Agreements and subject to
Section 29 below. Except as provided in this Section 2(b), all of the Cash-Settled Performance Units will cease vesting as of the Termination Date and any unearned or unvested portions thereof will be immediately forfeited. Except as
provided herein, Cash-Settled Performance Units will continue to be governed by the terms and conditions of the applicable Cash-Settled Units Agreements. 

3. Fiscal Year 2015 Bonus. If Executive remains employed by the Company through October 25, 2015 (the last day of the
Company’s Fiscal Year 2015), Executive will remain eligible to receive a Fiscal Year 2015 bonus under the Company’s Senior Executive Bonus Plan (the “SEBP”) in accordance with its terms. Any bonus payable under the SEBP will be
payable at the time(s) provided under, and in accordance with the terms of, the SEBP. Management will recommend to the Committee (as defined in the SEBP) that, subject to funding of the bonus pool based on achievement of applicable Company
performance goals, Executive be awarded a bonus under the SEBP assuming a 1.0 multiplier for his individual performance goals. However, Executive acknowledges and agrees that pursuant to the terms of the SEBP, the Committee retains discretion to
determine the amount of any bonuses under the SEBP in accordance with its terms. Executive will not be eligible for any bonus or incentive payment other than as described in this Section 3, and Executive acknowledges that he will not
participate in the SEBP for Fiscal Year 2016. 

  
 3 

 4. Payment of Salary. Executive acknowledges and represents that, other than the
consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/PTO, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions,
stock, stock options, vesting, and any and all other benefits and compensation due to Executive through the date hereof. 
 5. Release of
Claims. Executive agrees that the consideration set forth in this Agreement represents settlement in full of all outstanding obligations owed to Executive by the Company and its current and former officers, directors, Executives, agents,
investors, attorneys, shareholders, administrators, affiliates, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”). Executive, on his own behalf and on behalf of his
respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute or pursue, any claim, complaint, charge, duty, obligation,
or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up
until and including the Effective Date of this Agreement, including, without limitation: 
  

	 	a.	any and all claims relating to or arising from Executive’s employment relationship with the Company and the termination of that relationship; 

 

	 	b.	any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach
of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; 

  

	 	c.	any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith
and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective
economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits; 

  
 4 

	 	d.	any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the
Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the
Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act, except as prohibited by law; the Sarbanes- Oxley Act of 2002; the California Family Rights Act; the California
Labor Code, except as prohibited by law; the California Workers’ Compensation Act, except as prohibited by law; and the California Fair Employment and Housing Act; 

 

	 	e.	any and all claims for violation of the federal or any state constitution; 

  

	 	f.	any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; 

  

	 	g.	any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Executive as a result of this Agreement; and

  

	 	h.	any and all claims for attorneys’ fees and costs. 

 Executive agrees that the release set forth in this
section will be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be
released as a matter of law, including, but not limited to: (1) Executive’s right to file a charge with, or participate in a charge by, the Equal Employment Opportunity Commission or comparable state agency against the Company (with the
understanding that any such filing or participation does not give Executive the right to recover any monetary damages against the Company; Executive’s release of claims herein bars Executive from recovering such monetary relief from the
Company); (2) claims under Division 3, Article 2 of the California Labor Code (which includes California Labor Code section 2802 regarding indemnity for necessary expenditures or losses by Executive); and (3) claims prohibited from release
as set forth in California Labor Code section 206.5 (specifically “any claim or right on account of wages due, or to become due, or made as an advance on wages to be earned, unless payment of such wages has been made”). In addition,
Executive is not waiving or releasing under this Agreement any indemnification rights to which Executive may be entitled under the Company’s Articles of Incorporation, by contract, or as a matter of law for acts taken within the course and
scope of his employment with Company. 
 6. Acknowledgment of Waiver of Claims under ADEA. Executive acknowledges that he is
waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. Executive agrees that this waiver and release does not apply to any
rights or claims that may arise under the ADEA after the Effective Date of this Agreement. Executive acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Executive was already entitled.
Executive is advised to consult with an attorney about this Agreement prior to executing this Agreement. Executive acknowledges (a) he has twenty-one (21) days from receipt of this Agreement to consider this Agreement; (b) he has
seven (7) days after his execution of this Agreement to revoke his execution of this Agreement; (c) this Agreement will not be effective until after the revocation period has expired; and (d) nothing in this Agreement prevents or
precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.
In the event Executive signs this Agreement and returns it to the Company in less than the 21-day period identified above, Executive hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this
Agreement. Executive acknowledges and understands that revocation must be accomplished by a written notification to Gary Dickerson, the Company’s President and Chief Executive Officer, that is received prior to the Effective Date. 

  
 5 

 7. California Civil Code Section 1542. Executive acknowledges that he has been
advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 Executive, being aware of said code
section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or common law principles of similar effect. 

8. No Pending or Future Lawsuits. Executive represents that he has no lawsuits, claims, or actions pending in his name, or on behalf of
any other person or entity, against the Company or any of the other Releasees. Executive also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or any of the other
Releasees. 
 9. Trade Secrets and Confidential Information/Company Property. Executive reaffirms and agrees to observe and abide by
the terms of his Employee Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information. Executive’s signature below constitutes his
certification that he has returned or prior to his Termination Date will return to the Company all documents, electronic media and other items provided to Executive by the Company, developed or obtained by Executive in connection with his employment
with the Company, or otherwise belonging to the Company. Executive hereby grants consent to notification by the Company to any new employer about Executive’s obligations under this section. 

  
 6 

 10. No Cooperation. Executive agrees that he will not knowingly encourage, counsel, or
assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so.
Executive agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order to the Company. If approached
by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Executive will state no more than that he cannot provide counsel or
assistance. 
 11. Non-Disparagement. Executive agrees to refrain from any disparagement, defamation, libel, or slander of any of the
Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees. The Company will instruct Gary Dickerson, Gino Addiego, Steve Ghanayem, Prabu Gopalraja, Bob Halliday, Tom Larkins, Om
Nalamasu, Charles Read and Ali Salehpour not to disparage, defame, libel, or slander Executive in any manner likely to be harmful to Executive or to Executive’s personal reputation; provided, however, that both Executive and the Company may
respond accurately and fully to any question, inquiry or request for information when required by legal process. Executive will direct any inquiries by potential future employers to Madonna Bolano, the Company’s Group Vice President of Global
Human Resources, who will use her best efforts to provide only the Executive’s last position and dates of employment. The Parties further agree that each Party will have the opportunity to review and approve any press release or other
publicly-distributed communication regarding Executive’s departure from the Company prior to publication or release of such communication. 

12. Breach. Executive acknowledges and agrees that any material breach of this Agreement (including Sections 9, 10, 11, 14 and 15) or
his Employee Agreement will entitle the Company immediately to recover and/or cease providing the 2nd Payment or 1-Year Payment provided or scheduled to be provided to Executive under Section 1(b) of this Agreement. Legal action by Executive in
good faith challenging or seeking a determination of the validity of the Executive’s release of claims under the ADEA will not constitute a material breach of the Agreement. In the event of any other breach of this Agreement, the aggrieved
Party will be entitled to all remedies provided by applicable law. 
 13. No Admission of Liability. Executive understands and
acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Executive. No action taken by the Company hereto, either previously or in connection with this Agreement, will be deemed
or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Executive or to any third party. 

14. Disqualifying Activities. During the Disqualifying Activity Period, the following are “Disqualifying Activities”: working
as an employee, officer, director, consultant, contractor, advisor, or agent for the companies, or any of their subsidiaries or affiliates, listed on Appendix C of this Agreement, without the prior express written permission of the Company’s
President and Chief Executive Officer. 

  
 7 

 15. Non-Solicitation. Executive agrees that for the duration of the Disqualifying Activity
Period, Executive will not directly or indirectly solicit, induce, or recruit any of the Company’s employees to leave their employment at the Company. 
  

	 	16.	Definitions. 

 a. Cause. For purposes of this Agreement, “Cause” means
(i) Executive’s material failure to reasonably perform the duties assigned to him by the Company’s President and Chief Executive Officer, or his delegate (ii) Executive’s act of material personal dishonesty in connection
with his responsibilities as an employee and intended to result in Executive’s substantial personal enrichment, (iii) Executive being convicted of, or pleading no contest or guilty to, (A) a misdemeanor that has had or will have a
material detrimental effect on the Company, or (B) any felony, (iv) Executive’s willful act that constitutes gross misconduct, or (v) Executive’s material violation of any material Company employment policy or standard of
conduct that has been provided or made available to Executive in writing. For avoidance of doubt, a termination of Executive’s employment with the Company due to Executive’s death or disability will not be deemed a termination by the
Company without Cause. 
 b. Deferred Compensation Separation Benefits. For the purposes of this Agreement, “Deferred
Compensation Separation Benefits” means any severance pay or benefits to be paid or provided to Executive (or Executive’s estate or beneficiaries) pursuant to this Agreement and any other severance payments or separation benefits payable
to Executive (or Executive’s estate or beneficiaries), that in each case, when considered together, are considered deferred compensation under Section 409A. 

17. Costs. The Parties will each bear their own costs, attorneys’ fees, and other fees incurred in connection with the
preparation, negotiation and execution of this Agreement. 
 18. Arbitration. Any controversy or claim between the Parties or between
Executive and any director, officer, employee, or corporate affiliate of the Company, including but not limited to any controversy or claim arising from or related to Executive’s employment with the Company or termination of employment, the
formation, interpretation or alleged breach of this Agreement, or any claims not released by this Agreement, will be finally settled by binding arbitration, employing a single, neutral arbitrator, and administered by JAMS, Inc. (“JAMS”),
under its Employment Arbitration Rules & Procedures (available at http://www.jamsadr.com), in Santa Clara County, California. Judgment upon any award rendered in an arbitration proceeding may be entered in any court having jurisdiction of
the matter. The same remedies will be available in arbitration as they otherwise would have been if the claim had been filed in a court of law. The Company will pay all costs of JAMS to administer the arbitration and the costs for the arbitrator;
provided, however, that if Executive initiates the arbitration, he will be required to contribute an amount equal to the filing fee in the Superior Court of California in and for Santa Clara County. In any arbitration commenced pursuant to this
agreement to arbitrate, depositions may be taken and discovery obtained to the reasonable amount necessary for both sides to be able to present their claims and defenses, taking into account the Parties’ mutual desire to have a speedy,
cost-effective dispute-resolution mechanism. The arbitrator will determine and apply reasonable discovery limits in the arbitrator’s discretion. Any award by the arbitrator(s) will be reasoned and accompanied by a statement of the factual and
legal bases for the award. Nothing in this agreement to arbitrate will prevent any party from seeking from a court provisional relief in aid of arbitration, including temporary restraining orders, temporary protective orders, evidence-preservation
and return orders, and preliminary injunctive relief. Except as so provided, both Parties are waiving their rights to proceed in a court of law, including a trial by jury, in exchange for arbitration. 

  
 8 

 19. Tax Consequences. The Company makes no representations or warranties with respect to
the tax consequences of the payments and any other consideration provided to Executive or made on his behalf under the terms of this Agreement. Executive agrees and understands that he is responsible for payment, if any, of local, state, and/or
federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments related to such taxes (including but not limited to under Section 409A). Executive further agrees to indemnify and hold
the Company harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of (a) Executive’s
failure to pay or the Company’s failure to withhold, or Executive’s delayed payment of, federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs. 

20. Authority. The Company represents and warrants that the Company’s President and Chief Executive Officer has the authority to
act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Executive represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might
claim through him to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of
action released herein. 
 21. No Representations. Executive represents that he has had an opportunity to consult with an attorney,
and has carefully read and understands the scope and effect of the provisions of this Agreement. Executive has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement. 

22. Severability. In the event that any provision or any portion of any provision hereof becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision or portion of provision, except that if Section 1.b, 5 or 14 of this Agreement or the Supplemental
Release when executed are held to be illegal, unenforceable or void as a result of legal action initiated by Executive or a defense raised by Executive in response to legal action initiated by the Company, then at its election the Company may cease
making any cash severance payments to Executive and recover from Executive any cash severance payments already made, with the exception of the 45-Day Payment. 

23. Attorneys’ Fees. Except with regard to a legal action challenging or seeking a determination in good faith of the validity of
the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party will be entitled to recover its costs and expenses, including the costs of mediation,
arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action. 

  
 9 

 24. Entire Agreement. This Agreement, the Employee Agreement, the Stock Agreements, and
the Supplemental Release when executed represent the entire agreement and understanding between the Company and Executive concerning the subject matter of this Agreement and Executive’s employment and termination with the Company and the events
leading thereto and associated therewith, and supersede and replace any and all prior agreements and understandings concerning the subject matter of this Agreement and Executive’s relationship with the Company. To the extent that there is any
conflict or inconsistency between this Agreement and the Employee Agreement, this Agreement will govern. 
 25. No Oral Modification.
This Agreement may be amended only in a writing signed by Executive and the Company’s President and Chief Executive Officer. 
 26.
Governing Law. This Agreement will be governed by the laws of the State of California, without regard to choice-of-law provisions. 

27. Effective Date. Executive understands that this Agreement will be null and void if not executed by Executive within twenty-one
(21) days after his receipt of this Agreement. Each Party has seven (7) days after that Party signs this Agreement to revoke it. This Agreement will become effective on the eighth day after it has been signed by both Parties, provided that
it has not been revoked by either Party before that date (the “Effective Date”). 
 28. Counterparts. This Agreement may be
executed in counterparts and by facsimile, and each counterpart and facsimile will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned. 

29. Internal Revenue Code Section 409A. 

a. Notwithstanding anything to the contrary in this Agreement, no Deferred Compensation Separation Benefits will become payable under this
Agreement until Executive has a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the final regulations and guidance promulgated thereunder and
any applicable state law equivalent, as each may be amended or promulgated from time to time (collectively, “Section 409A”). Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt
from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A. Further, if Executive is a “specified
employee” within the meaning of Section 409A at the time of Executive’s separation from service (other than due to death), then if and to the extent necessary to avoid subjecting Executive to an additional tax under Section 409A,
any Deferred Compensation Separation Payments that are otherwise payable within the first six (6) months following Executive’s separation from service will become payable on the date that is six (6) months and one (1) day
following the date of Executive’s separation of service. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything
herein to the contrary, if Executive dies following his separation from service but prior to the six (6) month anniversary of his separation from service, then any payments delayed in accordance with this Section 29(a) will be payable in a
lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit. Each
payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. See Section 19 of this Agreement regarding Executive’s responsibility
for the payment of taxes. 

  
 10 

 b. Any amount paid under this Agreement that satisfies the requirements of the “short-term
deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Compensation Separation Benefits for purposes of Section 29(a) above. 

c. Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to
Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the “Section 409A Limit” (as defined below) will not constitute Deferred Compensation Separation Benefits for purposes of Section 29(a) above. For
purposes of this Section 29(c), “Section 409A Limit” will mean the lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Executive’s taxable
year preceding the Executive’s taxable year of Executive’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the
maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the for the year in which Executive’s separation from service occurred. 

d. Executive and the Company agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions
that are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. In no event will the Company reimburse Executive (or Executive’s estate
or beneficiaries) for any taxes that may be imposed on Executive (or Executive’s estate or beneficiaries) as a result of Section 409A. The provisions of this Section 29 are intended to comply with the requirements of Section 409A
so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to so comply. 

30. Voluntary Execution of Agreement. Executive understands and agrees that he executed this Agreement voluntarily, without any duress
or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his claims against the Company and any of the other Releasees. Executive acknowledges that: 

 

	 	a.	he has read this Agreement; 

  

	 	b.	he has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or has elected not to retain legal counsel; 

  
 11 

	 	c.	he understands the terms and consequences of this Agreement and of the releases it contains; and 

  

	 	d.	he is fully aware of the legal and binding effect of this Agreement. 

 IN WITNESS WHEREOF, the Parties have
executed this Agreement on the respective dates set forth below. 
  

							
		 		 	RANDHIR THAKUR, an individual
				
	 Dated: August 7, 2015.
	 		 		 	 /s/ Randhir Thakur

		 		 		 	Randhir Thakur
			
		 		 	APPLIED MATERIALS, INC.
				
	 Dated: August 7, 2015.
	 		 	By:	 	 /s/ Gary Dickerson

		 		 		 	Gary Dickerson
		 		 		 	President and Chief Executive Officer

  
 12 

 APPENDIX A 

Performance Shares and Restricted Stock Accelerated on the Qualifying Termination Date* 

 

									
	 Grant ID
	 	Grant Date	 	Grant Type	 	Number of Shares	 
	AMIP 745610	 	12/05/2011	 	Performance Shares	 	 	58,250	  
	TSRP 745610	 	12/05/2011	 	Performance Shares	 	 	11,650	  
	AMIP 756318	 	12/05/2012	 	Performance Shares	 	 	62,500	  
	TSRP 756318	 	12/05/2012	 	Performance Shares	 	 	31,250	  
	AMIP 745628	 	12/05/2011	 	Restricted Stock	 	 	4,250	  
	TSRP 745628	 	12/05/2011	 	Restricted Stock	 	 	850	  
		 		 		 	  
	  
	 
	 Total
	 	 	168,750	  
		 		 		 	  
	  
	 

  

	*	Subject to satisfaction of the Release Requirements. 

  
 A-1 

 APPENDIX B 

SUPPLEMENTAL RELEASE OF CLAIMS 

YOU ARE ADVISED TO CONSULT WITH AN ATTORNEY ABOUT THIS SUPPLEMENTAL RELEASE OF CLAIMS PRIOR TO EXECUTING IT. 

1. For valuable consideration which I hereby acknowledge, I, Randhir Thakur, on behalf of myself and my heirs, family members, executors,
agents, and assigns, hereby and forever release Applied Materials, Inc. (the “Company”), and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, divisions, and
subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”) from, and agree not to sue concerning, or in any manner to institute, prosecute or pursue, any claim, complaint, charge, duty, obligation,
or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that I may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and
including the Effective Date of this Supplemental Release of Claims (“Supplemental Release”), including, without limitation: 
  

	 	a.	any and all claims relating to or arising from my employment relationship with the Company and the termination of that relationship; 

 

	 	b.	any and all claims relating to, or arising from, my right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary
duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; 

  

	 	c.	any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith
and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective
economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits; 

 

	 	d.	any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the
Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the
Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act, except as prohibited by law; the Sarbanes-Oxley Act of 2002; the California Family Rights Act; the California
Labor Code, except as prohibited by law; the California Workers’ Compensation Act, except as prohibited by law; and the California Fair Employment and Housing Act; 

 

	 	e.	any and all claims for violation of the federal or any state constitution; 

  
 B-1 

	 	f.	any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; 

  

	 	g.	any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by me as a result of this Supplemental Release; and

  

	 	h.	any and all claims for attorneys’ fees and costs. 

 2. I agree that this Supplemental
Release will be and remain in effect in all respects as a complete general release as to the matters released. This Supplemental Release does not extend to (1) my right to the consideration provided to me under my Separation Agreement and
Release; (2) my right to file a charge with, or participate in a charge by, the Equal Employment Opportunity Commission or comparable state agency against the Company (with the understanding that any such filing or participation does not give
me the right to recover any monetary damages against the Company; my release of claims herein bars me from recovering such monetary relief from the Company); or (3) claims that as a matter of law cannot be released without judicial or
governmental supervision. In addition, I am not waiving or releasing under this Agreement any indemnification rights to which I may be entitled under the Company’s Articles of Incorporation, by contract, or as a matter of law for acts taken
within the course and scope of my employment with Company. 
 3. I acknowledge that I am waiving and releasing any rights I may have under
the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. I agree that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the
Effective Date of this Supplemental Release. I acknowledge that the consideration given for this waiver and release is in addition to anything of value to which I was already entitled. I acknowledge that I am being advised to consult with an
attorney about this Supplemental Release before I execute it. I acknowledge that (a) I have twenty-one (21) days after my Qualifying Termination Date to consider this Supplemental Release; (b) I have seven (7) days after
execution of this Supplemental Release to revoke my execution of this Supplemental Release; (c) this Supplemental Release will not be effective until after the revocation period has expired (the “Effective Date” of this Supplemental
Release); and (d) nothing in this Supplemental Release prevents or precludes me from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or
costs for doing so, unless specifically authorized by federal law. In the event I execute this Supplemental Release and return it to the Company in less than the 21-day period identified above, I hereby acknowledge that I have freely and voluntarily
chosen to waive the time period allotted for considering this Supplemental Release. I acknowledge and understand that revocation must be accomplished by a written notification to Gary Dickerson, President and Chief Executive Officer, that is
received prior to the Effective Date of this Supplemental Release. 
 4. I acknowledge that I have been advised to consult with legal
counsel and am familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

  
 B-2 

 Being aware of said code section, I agree to expressly waive any rights I may have thereunder, as well as under
any other statute or common law principles of similar effect. 
 5. I acknowledge and represent that, other than the consideration for this
Supplemental Release, the Company has paid or provided me with all salary, wages, bonuses, accrued paid time off, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock
options, vesting, and any and all other benefits and compensation due to me. 
  

							
	 Dated:            , 2015.
	 		 		 	RANDHIR THAKUR, an individual
				
		 		 		 	  

		 		 		 	Randhir Thakur

  
 B-3

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