Document:

EX-10.1

 Exhibit 10.1 
 SPROUTS FARMERS MARKET, INC. 
 STOCK OPTION AGREEMENT 

Cover Sheet 
 Sprouts Farmers Market, Inc., a
company organized under the laws of the State of Delaware (“Company”), hereby grants an option to acquire its Shares (the “Option”) to the individual named below. The terms and conditions of the Option are set forth in this cover
sheet (the “Cover Sheet”), in the attached Stock Option Agreement (the “Agreement”) and in the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “Plan”). All capitalized terms used but not defined in this Cover
Sheet and the attached Stock Option Agreement will have the meanings ascribed to such terms in the Plan. 
  

			
	Granted to:	 	
		
	Grant Date:	 	
		
	Shares subject to the Option:	 	
		
	Exercise Price per Share:	 	
		
	Expiration Date:	 	
		
	Vesting Schedule:	 	

 By signing this Cover Sheet, you agree to all of the terms and conditions described in this Cover Sheet, in the Agreement and in
the Plan. 
  

											
	Signature:	 	  
	 		 	Date:	 	
                      
   
	 	

  

			
	SPROUTS FARMERS MARKET, INC.
		
	By:	 	 
	Name:	 	Doug Sanders
	Title:	 	Chief Executive Officer

 SPROUTS FARMERS MARKET, INC. 

2013 INCENTIVE PLAN 
 STOCK
OPTION AGREEMENT 
  

			
	Nonstatutory Stock Option	  	This Option is not intended to be an incentive stock option under section 422 of the Internal Revenue Code and will be interpreted accordingly.
		
	Vesting	  	 Your right to exercise this Option vests at the times and in the manner as shown on the Cover Sheet. Notwithstanding the foregoing or the Cover
Sheet, in the event of a Change in Control (as defined in Exhibit A), the Option will become immediately vested and exercisable.
  

This Option will cease vesting as of the date your employment with the Company and its Affiliates has terminated for any reason.

		
	Termination	  	 Should your employment with the Company terminate for any reason, the portion of your Option that is not then vested will immediately
terminate, and, except as provided below, the portion that is then vested will terminate at the close of business at the Company’s registered office on the 90th day after your termination date. Your Option will expire in any event at the close
of business at the Company’s registered office on the seventh anniversary of the Option Grant Date, as shown on the Cover Sheet.
  

The grant of the Option does not confer upon you any right to continued employment with the Company or interfere with the Company’s right to terminate your
employment at any time.

		
	Death	  	If your employment terminates because of your death, your right to purchase vested Shares under this Option will expire at the close of business at the Company’s registered office on
the date that is six months and one day after the date of death (or on the seventh anniversary of the Option Grant Date, if earlier). During that period, your estate or heirs may exercise this Option.
		
	Disability	  	If your employment terminates because of a disability which qualifies you for disability benefits under the Company’s long term disability plan, then your right to purchase vested
Shares under this Option will expire at the close of business at the Company’s registered office on the date that is six months and one day after your termination date (or on the seventh anniversary of the Option Grant Date, if
earlier).
		
	Termination for Cause	  	If your employment is terminated for Cause (as defined in Exhibit A), the Option, whether or not vested, will immediately terminate.
		
	Restrictions on Exercise	  	The Company will not permit you to exercise this Option if the issuance of Shares at that time would violate any law, regulation or Company policy.
		
	Notice of Exercise	  	 When you wish to exercise this Option, you must complete and execute such documents, if any, and complete such processes, that the Company or a
securities broker approved by the Company may require to accomplish the Option exercise (“Notice of Exercise”).
  
 If someone else wants to exercise this Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so.

		
	Form of Payment	  	When you submit your Notice of Exercise, you must include payment of the exercise price for the Shares you are purchasing, along with applicable withholding taxes. Payment may be made in
one (or a combination) of the following forms:
		
		  	 •   Your personal check, a cashier’s check or a money order.

  
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		  	 •   If permitted by the Company, irrevocable directions to a securities broker approved by the Company to sell your
Shares subject to the Option and to deliver all or a portion of the sale proceeds to the Company in payment of the exercise price and applicable withholding taxes. (The balance of the sale proceeds, if any, will be delivered to you.) The directions
must be given by signing forms, if any, provided by the Company or the securities broker.

		
	Taxes	  	When you exercise any portion of the Option, the Company will withhold taxes as required by applicable law, and your ability to exercise any portion of the Option is conditional upon your
making arrangements satisfactory to the Company, in accordance with the methods set forth above, to enable it to satisfy its withholding obligation.
		
	Restrictions on Resale	  	By signing this Agreement, you agree not to sell any Shares received upon exercise of the Option at a time when applicable laws, regulations or Company policies prohibit a
sale.
		
	Transfer of Option	  	 Prior to your death, only you may exercise this Option. You cannot transfer or assign this Option. For instance, you may not sell this Option
or use it as security for a loan. If you attempt to do any of these things, this Option will immediately become invalid. You may, however, dispose of this Option in your will.

 
 Regardless of any marital property settlement agreement, the Company or a securities broker,
as applicable, is not obligated to honor a Notice of Exercise from your former spouse, nor is the Company or the securities broker obligated to recognize your former spouse’s interest in your Option in any other way.

		
	Stockholder Rights	  	You, or your estate or heirs, have no rights as a stockholder of the Company with respect to the Shares subject to the Option until a proper Notice of Exercise has been submitted and the
exercise price and withholding taxes have been tendered. No adjustments are made for dividends or other rights if the applicable record date occurs before a proper Notice of Exercise has been submitted and the exercise price has been tendered,
except as described in the Plan.
		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware.
		
	The Plan and Other Agreements	  	 The text of the Plan and any amendments thereto are incorporated in this Agreement by reference.

 
 This Agreement, the Cover Sheet and the Plan constitute the entire understanding between you
and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this Option are superseded.

 By signing the Cover Sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan
and evidence your acceptance of the powers of the Committee of the Board of Directors of the Company that administers the Plan. 

  
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 Exhibit A 

Certain Definitions 

“Affiliate” means, when used with reference to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with, or owns greater than fifty percent (50%) of the voting power in the specified Person (the term “control” for this purpose shall mean the ability, whether by the ownership of shares or
other equity interest, by contract or otherwise, to elect a majority of the directors of a corporation, independently to select the managing partner of a partnership or the managing member or the majority of the managers, as applicable, of a limited
liability company, or otherwise to have the power independently to remove and then select a majority of those Persons exercising governing authority over an entity, and control shall be conclusively presumed in the case of the direct or indirect
ownership of fifty percent (50%) or more of the voting equity interests in the specified Person). 
 “Cause” shall have the meaning
ascribed thereto in any effective employment agreement between you and the Company or its Affiliates, or if no employment agreement is in effect that contains a definition of cause, then Cause shall mean a finding by the Committee that you have
(i) committed a felony or a crime involving moral turpitude, (ii) committed any act of gross negligence or fraud, (iii) failed, refused or neglected to substantially perform your duties (other than by reason of a physical or mental
impairment) or to implement the reasonable directives of the Company (which, if curable, is not cured within 30 days after notice thereof to you by the Committee), (iv) materially violated any policy of the Company (which, if curable, is not
cured within 30 days after notice thereof to you by the Committee), or (v) engaged in conduct that is materially injurious to the Company, monetarily or otherwise. 
 “Change in Control” shall mean: 
  

	 	(i)	any event occurs the result of which is that any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act, becomes the “beneficial
owner”, as defined in Rules l3d-3 and l3d-5 under the Exchange Act directly or indirectly, of more than 50% of the voting stock of the Company or any successor company thereto, including, without limitation, through a merger or consolidation or
purchase of voting stock of the Company; provided that the transfer of 100% of the voting stock of the Company to a Person that has an ownership structure identical to that of the Company prior to such transfer, such that the Company becomes a
wholly owned subsidiary of such Person, shall not be treated as a Change in Control; 

  

	 	(ii)	during any period of two (2) consecutive years, individuals who at the beginning of such period constituted the Board, together with any new directors whose election by such
Board or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors of the Company then still in office who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved, cease for any reason to constitute a majority of the Board then in office; 

  

	 	(iii)	the sale, lease, transfer, conveyance or other disposition, in one or a series of related transactions other than a merger or consolidation, of all or substantially all of the
assets of the Company and its consolidated subsidiaries taken as a whole to any Person or group of related Persons; or 

  

	 	(iv)	the adoption of a plan relating to the liquidation or dissolution of the Company. 

 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 “Person” means and
includes any individual, partnership, joint venture, corporation, limited liability company, estate, trust, or other entity. 

  
 -4-EX-10.2

 Exhibit 10.2 
 SPROUTS FARMERS MARKET, INC. 
 RSU AGREEMENT 

Cover Sheet 
 Sprouts Farmers Market, Inc., a
company organized under the laws of the State of Delaware (“Company”), hereby grants an award of restricted stock units (“RSUs”) to the individual named below. The terms and conditions of the RSUs are set forth in this cover
sheet (“Cover Sheet”), in the attached RSU Agreement (the “Agreement”) and in the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “Plan”). All capitalized terms used but not defined in this Cover Sheet and the
Agreement will have the meanings ascribed to such terms in the Plan. 
  

			
	Granted to:	 	
		
	Grant Date:	 	
		
	Number of RSUs:	 	
		
	Vesting Schedule:	 	
		
	Delivery of Shares:	 	

 By signing this Cover Sheet, you agree to all of the terms and conditions described in this Cover Sheet, in the Agreement and in
the Plan. 
  

											
	Signature:	 	  
	 		 	Date:	 	
                      
   
	 	

  

			
	SPROUTS FARMERS MARKET, INC.
		
	By:	 	 
	Name:	 	Doug Sanders
	Title:	 	Chief Executive Officer

 SPROUTS FARMERS MARKET, INC. 

2013 INCENTIVE PLAN 
 RSU
AGREEMENT 
  

			
	Right to Shares	  	The award of RSUs represents your right to receive, and the Company’s obligation to
deliver, one Share per RSU, subject to the terms and conditions of this Agreement,
the Plan
and the Cover Sheet.
		
	Vesting	  	 The RSUs awarded to you will vest in accordance with the schedule set forth in the Cover Sheet.

 
 All RSUs will cease vesting as of the date your employment with the Company and its Affiliates
has terminated for any reason.

		
	Delivery; Settlement; Change in Control	  	 As and when RSUs vest, a number of Shares equal to the number of such RSUs shall be delivered as soon as practicable thereafter in settlement
of such RSUs, and upon such delivery, you shall have no further rights with respect to those RSUs.
  
 Notwithstanding the foregoing or the Cover Sheet, immediately prior to a Change in Control, as defined in Exhibit A, all RSUs then outstanding shall be settled for a number of Shares equal to the number of RSUs
then outstanding.

		
	Termination	  	Should your employment with the Company and its Affiliates terminate for any reason, all of your RSUs then outstanding will terminate, and you will no longer have any right to receive any
Shares in respect of such RSUs. The grant of RSUs does not confer upon you any right to continued employment with the Company or interfere with the Company’s right to terminate your employment at any time.
		
	Taxes	  	 When Shares are delivered to you upon settlement of any of your RSUs, the Company is required to withhold taxes pursuant to applicable law. The
Company will satisfy this withholding obligation through a “sell to cover” whereby you irrevocably direct a securities broker approved by the Company to sell a portion of your Shares subject to the RSUs upon vesting and to deliver the sale
proceeds to the Company in payment of the applicable withholding taxes. You agree to provide these directions by signing and returning the Irrevocable Standing Order to Sell Shares attached hereto, along with a signed copy of the Cover Sheet, within
21 days of the Grant Date.
  
 The number of Shares that the broker will sell will be
based on an estimate made by the broker of the Shares required to be sold to satisfy the withholding taxes. You agree that the proceeds received from the sale of Shares will be used to satisfy the withholding taxes and, accordingly, you authorize
the broker to pay such proceeds to the Company for such purpose. To the extent that the proceeds obtained by such sale exceed the amount necessary to satisfy the withholding taxes, such excess proceeds shall be deposited into your brokerage account
and in the event of a shortfall, additional Shares may be sold and/or cash withholding may be required from you. Any remaining Shares shall be deposited into your brokerage account.

 
 If there is not a market in the Shares or the Company determines in its sole discretion that
the sell to cover procedure is not advisable or sufficient, the Company will have the right to make other arrangements to satisfy the withholding taxes due upon issuance of the Shares with respect to the RSUs, including, but not limited to, the
right to deduct amounts from salary or

  
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		  	payments of any kind otherwise due to the Participant or withhold in Shares, provided that the Company only withholds the amount of Shares necessary to satisfy the statutory minimum
withholding amount. If such other arrangements are made, your Irrevocable Standing Order to Sell Shares will be voided.
		
	Restrictions on Resale and Settlement	  	 By signing this Agreement, you agree not to sell any Shares received upon settlement of RSUs at a time when applicable laws, regulations or
Company policies prohibit a sale.
  
 The Company’s obligation to deliver Shares
upon settlement of the RSUs shall be subject to applicable laws, rules and regulations and also to such approvals by governmental agencies as may be deemed appropriate to comply with relevant securities laws and regulations.

		
	Transfer of RSUs	  	 You cannot transfer or assign RSUs or your right to receive Shares upon settlement of RSUs. For instance, you may not sell RSUs or use them as
security for a loan. If you attempt to do any of these things, your RSUs will immediately become invalid.
  
 Regardless of any marital property settlement agreement, the Company or a securities broker, as applicable, is not obligated to recognize your former spouse’s interest in your RSUs in any
way.

		
	Stockholder Rights; Dividend Equivalent Rights	  	 You, or your estate or heirs, have no rights as a stockholder of the Company in respect of RSUs until Shares have been delivered in settlement
of the RSUs. No adjustments are made for dividends or other rights if the applicable record date occurs before Shares are delivered, except as described in the Plan.
  

However, to the extent you hold RSUs on the record date of any cash dividend on Shares, you will be entitled to a payment in an amount, per RSU held, equal to the
amount of the cash dividend declared and paid in respect of one Share. This Dividend Equivalent Right will be included in your regular compensation for the pay period during which the actual cash dividend is paid, and will be subject to applicable
withholding taxes.

		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware.
		
	The Plan and Other Agreements	  	 The text of the Plan and any amendments thereto are incorporated in this Agreement by reference.

 
 This Agreement, the Cover Sheet and the Plan constitute the entire understanding between you
and the Company regarding the RSUs. Any prior agreements, commitments or negotiations concerning the RSUs are superseded.

 By signing the Cover Sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan
and evidence your acceptance of the powers of the Committee of the Board of Directors of the Company that administers the Plan. 

  
 -3- 

 Exhibit A 

Certain Definitions 

“Affiliate” means, when used with reference to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with, or owns greater than fifty percent (50%) of the voting power in, the specified Person (the term “control” for this purpose shall mean the ability, whether by the ownership of shares or
other equity interest, by contract or otherwise, to elect a majority of the directors of a corporation, independently to select the managing partner of a partnership or the managing member or the majority of the managers, as applicable, of a limited
liability company, or otherwise to have the power independently to remove and then select a majority of those Persons exercising governing authority over an entity, and control shall be conclusively presumed in the case of the direct or indirect
ownership of fifty percent (50%) or more of the voting equity interests in the specified Person). 
 “Change in Control” shall mean:

  

	 	(i)	any event occurs the result of which is that any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act, becomes the “beneficial
owner”, as defined in Rules l3d-3 and l3d-5 under the Exchange Act directly or indirectly, of more than 50% of the voting stock of the Company or any successor company thereto, including, without limitation, through a merger or consolidation or
purchase of voting stock of the Company; provided that the transfer of 100% of the voting stock of the Company to a Person that has an ownership structure identical to that of the Company prior to such transfer, such that the Company becomes a
wholly owned subsidiary of such Person, shall not be treated as a Change in Control; 

  

	 	(ii)	during any period of two (2) consecutive years, individuals who at the beginning of such period constituted the Board, together with any new directors whose election by such
Board or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors of the Company then still in office who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved, cease for any reason to constitute a majority of the Board then in office; 

  

	 	(iii)	the sale, lease, transfer, conveyance or other disposition, in one or a series of related transactions other than a merger or consolidation, of all or substantially all of the
assets of the Company and its consolidated subsidiaries taken as a whole to any Person or group of related Persons; or 

  

	 	(iv)	the adoption of a plan relating to the liquidation or dissolution of the Company. 

 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 “Person” means and
includes any individual, partnership, joint venture, corporation, limited liability company, estate, trust, or other entity. 

  
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 IRREVOCABLE STANDING ORDER TO SELL SHARES 

I have been granted restricted stock units (“RSUs”) by Sprouts Farmers Market, Inc. (the “Company”), which is evidenced by a restricted stock
unit agreement between me and the Company (the “Agreement,” copy attached). Provided that I remain employed by the Company on the applicable vesting date, the shares vest according to the provisions of the Agreement. 

I understand that on or as soon as practicable after the vesting date (the “issuance date”), the shares issuable in respect of the RSUs (the
“Shares”) will be deposited into my account at E*Trade (the “Broker”) and that I will recognize taxable ordinary income as a result. Pursuant to the terms of the Agreement and as a condition of my receipt of the Shares, I
understand and agree that, on the issuance date, I must sell a number of shares sufficient to satisfy all withholding taxes applicable to that ordinary income. Therefore, I hereby direct the Broker to sell, at the market price and on the issuance
date (or the first business day thereafter if the issuance date should fall on a day when the market is closed), the number of Shares that the Company informs the Broker is sufficient to satisfy the applicable withholding taxes, which shall be
calculated based on the closing price of the Company’s ordinary shares on the last trading day before the issuance date. I understand that the Broker will remit the proceeds to the Company for payment of the withholding taxes. 

You represent to the Company that, as of the date set forth in the Cover Sheet, you are not aware of any material nonpublic information about the Company or the
Shares. You and the Company have structured this Agreement to constitute a “binding contract” relating to the sale of Shares, consistent with the affirmative defense to liability under Section 10(b) of the Exchange Act under Rule
10b5-1(c) issued under such Act. 
 I understand and agree that by signing below, I am making an Irrevocable Standing Order to Sell Shares which will
remain in effect until the issuance date. I also agree that this Irrevocable Standing Order to Sell Shares is in addition to and subject to the terms and conditions of any existing Account Agreement that I have with the Broker. 

 

	
	Signature
	
	Print Name

  
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