Document:

EX-10.1

 Exhibit 10.1 

STEVE GHANAYEM SEPARATION AGREEMENT AND RELEASE 

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

RECITALS 
 WHEREAS,
Executive currently is employed by the Company as its Senior Vice President, New Markets and Alliances Group; 
 WHEREAS, Executive signed
the standard Employee Agreement with the Company dated January 21, 1989 (the “Employee Agreement”); 
 WHEREAS, Executive
entered into an offer letter with the Company dated as of January 17, 1989 (the “Offer Letter”); 
 WHEREAS, Executive and
the Company have determined that Executive’s employment with the Company will terminate effective on January 8, 2021 (the “Planned Termination Date”), subject to the Company requesting that Executive provide up to an additional
four (4) weeks of work following the Planned Termination Date (Executive’s actual date of employment termination is the “Termination Date” and such Termination Date is intended to be Executive’s Separation from Service with
the Company for purposes of Section 409A); 
 WHEREAS, Executive holds both stock-settled time-based and performance-based equity
awards (the “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, the Company wishes to enter into this Agreement with Executive to receive assurance of
Executive’s continued service through the Planned Termination Date under the terms and conditions set forth in this Agreement; 

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; and 

WHEREAS, the Parties each have been represented in the preparation and negotiation of this Agreement by legal counsel of their own choosing;

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

1.    Transition Period. 

a.    Continuing Employment. The Company will continue to employ Executive as Advisor to the Company’s
President and Chief Executive Officer (the “CEO”) 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. If requested by the Company in writing to Executive at least 45 days before the Planned Termination Date, Executive will remain employed with the Company for up to an additional four (4) weeks following the Planned Termination
Date. Executive’s period of employment under this Agreement is the “Transition Period”. During the Transition Period, Executive will perform the reasonable duties (reasonably consistent with Executive’s experience and role as a
long-tenured senior executive) assigned to him by the Company’s CEO, including (but without limitation) to advise the CEO on the transitioning and restructuring of the New Markets and Alliances Group and effectuate a smooth and orderly
transition of Executive’s roles, responsibilities and knowledge. Unless otherwise determined by the CEO, during the Transition Period, Executive will continue to advise on other strategic matters as directed by the CEO. Executive understands
that as the Transition Period progresses, Executive’s role may diminish commensurately, and Executive will continue to provide services through the Transition Period as assigned by the CEO (reasonably consistent with Executive’s experience
and role as a long-tenured senior executive). Executive will continue to provide his employment services remotely, but will attend meetings at the Company’s Santa Clara campus from time to time if and as reasonably requested by the CEO, and
subject to business travel only to the extent absolutely required and which can be performed without jeopardizing Executive’s health in light of the current COVID-19 pandemic. During the Transition
Period, Executive will continue to comply with his Employee Agreement as well as all other Company policies provided or made available to Executive in writing. The Company may not terminate Executive’s employment prior to the Planned
Termination Date except for Cause, and Executive may terminate Executive’s employment with the Company prior to the Planned Termination Date for any reason or no reason. As of the Effective Date, Executive no longer will be subject to the pre-clearance requirements under the Company’s insider trading policy. Further, as of the Effective Date, the Company no longer will consider Executive to be an “officer” for purposes of
Section 16 under the Securities Exchange Act of 1934, as amended; it being understood that the Company’s determination in this regard is not binding on any court of competent jurisdiction, the Securities and Exchange Commission (the
“SEC”) or any other person (excluding the Company) and the Company may change its determination if required to do so by any such court, the SEC or other person with authority over the Company. 

b.    Salary and Benefits During the Transition Period. 

i.    Salary. During the Transition Period, the Company will continue to pay Executive his current base salary (of
$567,000 per year) in accordance with the Company’s regular payroll practices. 

  
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 ii.    Benefits. During the Transition Period, except as
otherwise provided by this Agreement, Executive will continue to be eligible to participate in all employee benefits and programs (subject to the terms of the plan or program), including the Company’s health insurance plan, and he will continue
to accrue paid time off (PTO). 
 iii.    Equity. Except as provided by the following sentence, Executive will
continue to vest in Executive’s outstanding Equity Awards on the same terms, schedule and conditions as set forth in the Stock Agreements governing such Equity Awards. Notwithstanding any contrary provision of this Agreement or the Stock
Agreements, as of the Effective Date, Executive agrees to permanently forfeit the portion of all Equity Awards that have a scheduled or potential vesting date that is later than December 19, 2020, as shown on Appendix A hereto. The
foregoing acts as an amendment to the impacted Equity Awards and, except as amended hereby, such Equity Awards remain subject to and governed by the terms of the applicable Stock Agreements, including the vesting requirements, whether service and/or
performance-based. 
 iv.    Fiscal Year 2020 Bonus. If Executive remains employed by the Company through
October 25, 2020 (the last day of the Company’s Fiscal Year 2020) or experiences a Qualifying Termination, Executive will remain eligible to receive a Fiscal Year 2020 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 (or actual multiplier if greater than 1.0) 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 1.b.iv. 
 v.    Fiscal Year 2021 Bonus.
Executive acknowledges that he will not be eligible for any Fiscal Year 2021 bonus under SEBP or otherwise. 

vi.    Deferred Compensation. Executive is a participant in the Company’s 2016 Deferred Compensation Plan
(the “DCP”) and shall continue to be a participant in the DCP through the Termination Date subject to the terms and conditions, including eligibility requirements, of the DCP. As of the close of business on June 30, 2020,
Executive’s notional account under the DCP had a balance of $1,686,481.07, which balance is subject to change in accordance with the terms of the DCP. Executive shall be entitled to receive payments from the DCP for such balance in accordance
with the terms of the DCP and in manner intended to comply with Section 409A. 
 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. 

  
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 d.    Termination Date Payments. Upon the Termination Date, the
Company shall then pay Executive for all accrued unpaid salary, PTO and properly accrued and documented business expenses submitted by Executive and approved in accordance with the Company’s business expense reimbursement policy; provided,
however, any properly accrued and documented business expenses submitted within one (1) week prior to the Termination Date will, if approved in accordance with Company’s business expense reimbursement policy, be reimbursed to
Executive as soon as reasonably practicable following the Termination Date. 
 2.    Severance. 

a.    Severance Payments and Benefits. If Executive meets the Release Requirements and otherwise complies with this
Agreement: 
 i.    The Company will pay to Executive a total of $2,750,000.00 as cash severance, less applicable
payroll tax and other required withholdings. This cash severance will be paid to Executive, subject to Section 27 below, as follows: $375,000.00 within forty-five (45) days following the Termination Date (the
“45-Day Payment”); $375,000.00 in a lump sum on the seven (7)-month anniversary of the Termination Date (the “7-Month Payment”) and $2,000,000.00 on
the one (1)-year anniversary of the 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 13 below) or materially breaches Section 4, 8, 9, 10 or 13 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 45-Day Payment, the
7-Month Payment and the 1-Year Payment not yet paid to Executive will immediately cease and no further payments of the 45-Day
Payment, the 7-Month 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 7-Month Payment and the 1-Year Payment, but will not be obligated to repay the 45-Day Payment to the extent already paid to
Executive. 
 ii.    The Company will pay to Executive an additional lump sum equal to (a) eighteen (18)
multiplied by, (b) the monthly premium cost for health care continuation under COBRA for Executive and Executive’s eligible dependents, as such premium cost is assessed as of immediately prior to the Termination
Date for the health care coverage in which Executive and his eligible dependents are enrolled as of immediately prior to the Termination Date. Such lump sum will be payable, less applicable payroll taxes and other required withholdings, within
thirty (30) days following the effective date of the Supplemental Release. This amount represents approximately eighteen (18) months of health benefits costs. 

iii.    For two (2) years following the Termination Date, the Company will continue to designate Executive with
Global Services status under the Company’s arrangement with United Airlines. 

  
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 b.    Resignation; Termination for Cause. Executive acknowledges
and agrees that if Executive’s employment is terminated prior to the Planned Termination Date by the Company for Cause or by Executive for any reason other than a Qualifying Termination, Executive will not be entitled to receive any severance
or other benefits (including continued vesting) except for those (if any) as may then be established under the Company’s then-existing benefits plans and practices or pursuant to other then-effective written agreements with the Company. 

c.    Acknowledgement. Executive acknowledges that the benefits Executive may receive pursuant to this
Section 2 do not constitute a bonus, raise, employment, or continued employment, and that consideration for the release contained below is not a bonus, raise, employment, or continued employment. Executive further acknowledges that this
Agreement is a negotiated agreement between the Parties, and the release referenced herein is a negotiated severance agreement. 

3.    Payment of Salary. Executive acknowledges and represents that, other than the consideration set forth in this
Agreement and any portion of Executive’s base salary earned between the payroll date immediately preceding the Effective Date and the Effective Date, the Company has paid or provided all salary, wages, bonuses, accrued PTO, housing allowances,
relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, restricted stock units, performance shares, vesting, and any and all other benefits and compensation due to Executive through
the date hereof. 
 4.    Release of Claims. Executive agrees that the foregoing consideration represents
settlement in full of all outstanding obligations owed to Executive by the Company and its current and former officers, directors, executives, employees, agents, investors in their capacity as owners of the Company, attorneys, shareholders in their
capacity as owners of the Company, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, “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, demand, 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 date Executive signs 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, including claims under the Offer Letter or other agreement with the Company; 

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; 

  
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 c.    any and all claims for wrongful discharge of employment;
constructive discharge; 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; 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; the
Sarbanes-Oxley Act of 2002; the Immigration Reform and Control Act; the National Labor Relations Act; the California Family Rights Act; the California Labor Code; the California Workers’ Compensation Act; the Unruh Civil Rights Act; the
California Equal Pay Law; the California Unfair Business Practices Act; the California Worker Adjustment and Retraining Notification Act; 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; and 
 h.    any and all claims for attorneys’ fees and costs. 

Executive agrees that the release set forth in this Section shall 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, Executive’s rights to receive accrued but unpaid base salary wages owed through the Effective Date and through the Termination Date, health, disability or
life insurance benefits payable in accordance with the Company’s benefit plans (to the extent Executive is eligible), or any rights with respect to director and officer indemnification pursuant to the Certificate of Incorporation and/or bylaws
of the Company and all written agreements for indemnification, exculpation of liability or advancement of expenses, in effect as of the Effective Date between the Company and any of its current or former directors and officers, as well as any such
indemnification or contribution rights afforded to Executive under applicable state or federal statute. This release does not release claims that cannot be released as a matter of law, including any Protected Activity (as defined below). Executive
represents that he has made no assignment or transfer of any right, claim, complaint, charge, duty, obligation, demand, cause of action, or other matter waived or released by this Section. For the avoidance of doubt, Executive will remain as an
insured on the director and officer liability insurance policy currently maintained by the Company, or as may be maintained by the Company from time to time. Nothing in this Section 4 is intended to affect Executive’s rights under the DCP
or Executive’s rights related to outstanding Equity Awards (after the forfeitures contemplated by this Agreement). 

  
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 5.    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 further acknowledges that he has been advised by this writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has
twenty-one (21) days within which to consider this Agreement; (c) he has seven (7) days following his execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be
effective until after the revocation period has expired; and (e) 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
twenty-one (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 the person executing this Agreement on the Company’s behalf that is received prior to the Effective Date. The Parties agree
that changes, whether material or immaterial, do not restart the running of the twenty-one (21)-day period. 

6.    California Civil Code Section 1542. Executive acknowledges that Executive 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 THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. 

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. 
 7.    No Pending or Future Lawsuits; Representations. 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 as of the date he signs this Agreement 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. The Company represents that it has no lawsuits, claims, or actions pending in its name, or on behalf of any other
person or entity, against Executive. Executive hereby confirms to the Company that he has complied and will continue to comply with all obligations under his Employment Agreement and all applicable NDAs, has complied and will continue to comply with
all responsibilities and fiduciary duties, and has maintained and provided, and will continue to maintain and provide, adequate protections for the Company’s intellectual property, trade secrets, and confidential information. The Company also
represents that as of the date it signs this Agreement that it does not intend to bring any claims against Executive. 

  
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 8.    Trade Secrets and Confidential Information. Subject to
Section 28 governing Protected Activity, Executive agrees at all times hereafter to hold in the strictest confidence, and not to use or disclose to any person or entity, any Confidential Information of the Company. Executive understands that
“Confidential Information” includes trade secrets as well as proprietary data, such as: (a) technical information, including technology and product roadmaps, manufacturing techniques, concepts, processes, formulas, designs, source
code and other programs, drawings, manuals, innovations, inventions, discoveries, improvements, research and development, works of authorship, test results, specifications, and know-how; (b) commercial
information, including marketing and business plans, sales strategies, forecasts, financial information, budgets, projections, production plans, product inventory and launch plans, and price lists; (c) personnel information, including
organization charts and job assignments, employee directories, salaries, skills, abilities, performance reviews, and qualifications of other employees; and (d) customer and supplier information, including identities, contact lists, organization
charts, product requirements, and purchase histories. Executive further understands that Confidential Information does not include any of the foregoing items that have become publicly known and made generally available through no wrongful act of
Executive’s or of others who were under confidentiality obligations as to the item or items involved or improvements or new versions thereof. Executive hereby grants consent to notification by the Company to any new employer about
Executive’s obligations under this section. Executive represents that Executive has not to date misused or disclosed Confidential Information to any unauthorized party. 

a.    Inventions Defined. “Inventions” means inventions, original works of authorship, developments,
concepts, improvements, designs, discoveries, ideas, know-how, trademarks, and trade secrets, whether or not patentable or registrable under copyright or similar laws, that Executive solely or jointly
authored, conceived, developed, or reduced to practice. 
 b.    Assignment of Inventions and Works Made for
Hire. Executive hereby assigns to Company, or its designee, all of Executive’s right, title, and interest (including all related intellectual property rights) in all Inventions that Executive created during the period of time Executive was
in the employ of the Company (including during off-duty hours) (“Company Inventions”). In addition, Executive acknowledges that all original works of authorship that were made by Executive (solely or
jointly with others) within the scope of and during the period of Executive’s employment with Company and that are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act, and in
accordance, the Company is considered the author of these works. 
 c.    Exception to Assignments. EXECUTIVE
ACKNOWLEDGES AND UNDERSTANDS THAT THE PROVISIONS OF THIS AGREEMENT REQUIRING ASSIGNMENT OF INVENTIONS TO COMPANY DO NOT APPLY TO ANY INVENTION THAT QUALIFIES FULLY UNDER THE PROVISIONS OF CALIFORNIA LABOR CODE SECTION 2870. California Labor Code
section 2870 provides: “(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: (1) Relate at the time of conception or reduction to
practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or (2) Result from 

  
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any work performed by the employee for the employer. (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.” 

d.    Outside Inventions. Executive acknowledges that Executive has not incorporated any inventions,
discoveries, ideas, original works of authorship, developments, improvements, trade secrets and other proprietary information or intellectual property rights owned by any third party into any Invention without the Company’s prior written
permission. Executive acknowledges that Executive has informed the Company, in writing, before incorporating any inventions, discoveries, ideas, original works of authorship, developments, improvements, trade secrets and other proprietary
information or intellectual property rights owned by Executive or in which Executive has an interest prior to, or separate from, Executive’s employment with the Company, including, without limitation, any such inventions that are subject to
California Labor Code Section 2870 (“Outside Inventions”) into any Invention or otherwise utilizing any Outside Invention in the course of Executive’s employment with the Company; and the Company is hereby granted a
nonexclusive, royalty-free, perpetual, irrevocable, transferable worldwide license (with the right to grant and authorize sublicenses) to make, have made, use, import, offer for sale, sell, reproduce, distribute, modify, adapt, prepare derivative
works of, display, perform, and otherwise exploit any such incorporated or utilized Outside Inventions, without restriction, including, without limitation, as part of, or in connection with, such Invention, and to practice any method related
thereto. 
 e.    Moral Rights. Any assignment to the Company of Company Inventions includes all rights of
attribution, paternity, integrity, modification, disclosure and withdrawal, and any other rights throughout the world that may be known as or referred to as “moral rights,” “artist’s rights,” or the like (collectively,
“Moral Rights”). If Moral Rights cannot be assigned under applicable law, Executive hereby waives and agrees not to enforce any and all Moral Rights, including any limitation on subsequent modification, to the extent permitted under
applicable law. 
 f.    Further Assurances. Executive will assist the Company, or its designee, at
Company’s expense, in every proper way to secure and protect the Company’s rights in Company Inventions and any related copyrights, patents, mask work rights, or other intellectual property rights in any and all countries. Executive will
disclose to Company all pertinent information and data. Executive will execute all applications, specifications, oaths, assignments, and all other instruments that Company deems necessary in order to apply for and obtain these rights and in order to
deliver, assign, and convey to Company, its successors, assigns, and nominees the sole and exclusive rights, title, and interest in and to Company Inventions, and any related copyrights, patents, mask work rights, or other intellectual property
rights. Executive will testify in a suit or other proceeding relating to such Company Inventions and any rights relating thereto. 

9.    No Cooperation. Subject to Section 28 governing Protected Activity, Executive agrees that he will not
knowingly encourage, advise, 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 or upon written request from an administrative agency or the legislature or as related directly to the ADEA waiver in this Agreement. Executive agrees both to immediately notify the Company

  
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upon receipt of any such subpoena or court order or written request from an administrative agency or the legislature, and to furnish, within three (3) business days of its receipt, a copy of
such subpoena or other court order or written request from an administrative agency or the legislature. 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 shall state no more than that he cannot provide counsel or assistance. 

10.    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, Dan
Durn, Terri Little, Om Nalamasu, Prabu Raja, Ali Salehpour, Jay Kerley, Susan Schmitt and Keith Wells not to disparage, defame, libel, or slander Executive; 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 Susan Schmitt, the Company’s Group Vice President of Human Resources (or any successor), who
will use her best efforts to provide only the Executive’s last position of Senior Vice President, New Markets and Alliances Group and the dates of his employment and will state that it is the Company’s policy to only provide that
information about former employees. The Company agrees that Executive will be given an opportunity to provide input on any publicly-distributed communication regarding Executive’s departure from the Company prior to publication or release of
such communication, and the Company will consider such input in good faith. 
 11.    Breach. In addition to the
rights provided in the “Attorneys’ Fees” Section below, Executive acknowledges and agrees that any material breach by Executive of this Agreement (including Sections 4, 8, 9, 10 and 13) or his Employee Agreement will entitle the
Company immediately to cease providing the 45-Day Payment and recover and/or cease providing the 7-Month Payment, the 1-Year
Payment and/or the other severance payments (excluding the 45-Day Payment) and benefits (including, for the avoidance of doubt, Global Services status), provided or scheduled to be provided to Executive under
Section 2.a 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. 

12.    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, shall 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. 

13.    Disqualifying Activities. During the Disqualifying Activity Period, the following are “Disqualifying
Activities”: working as an employee, officer, director, consultant, contractor, advisor, or agent for any of the entities, or any of their parent entities, subsidiaries or affiliates, listed on Appendix C of this Agreement without the
prior express written permission of the CEO. 

  
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 14.    Definitions. 

a.    Cause. For purposes of this Agreement, “Cause” means (i) Executive’s failure to reasonably
perform the duties assigned to him by the CEO, provided that Executive will receive one written notice of such failure and have one period of ten (10) business days following the written notice in which to cure such failure, it being understood
and agreed that Executive will not be entitled to any notice or cure period for any failure under this clause (i) that occurs or continues subsequent to the expiration of the one cure period referenced herein, (ii) Executive’s act of
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 detrimental effect on the Company, or (B) any felony, (iv) Executive’s willful act that constitutes gross misconduct, or (v) Executive’s violation of any Company employment policy or
standard of conduct that has been provided or made available to Executive in writing, provided that Executive will receive one written notice of any act that constitutes a violation of any Company employment policy or standard of conduct that has
been provided or made available to Executive in writing and, if the act is curable, Executive will have one period of ten (10) business days following the written notice in which to cure such violation, it being understood and agreed that
Executive will not be entitled to any notice or cure period for any violation under this clause (v) that occurs or continues subsequent to the expiration of the one cure period referenced herein, and under no circumstance will Executive be
entitled to any cure period for a violation that is not curable. 
 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. 

c.    Disability. For purposes of this Agreement, “Disability” shall be interpreted consistent with the
requirements of Section 409A and shall mean that Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company. The Board the Human Resources
and Compensation Committee of the Board or their respective delegates will determine in good faith whether or not Executive has incurred a Disability based on such evidence as it deems necessary or appropriate. Notwithstanding the foregoing,
Executive will be deemed to qualify for Disability hereunder if he or she has been determined to be totally disabled by the Social Security Administration. 

d.    Qualifying Termination. For the purposes of this Agreement, “Qualifying Termination” means a
termination of Executive’s employment with the Company prior to the Planned Termination Date due to Executive’s death or Disability. 

  
 11 

 e.    Release Requirements. For the purposes of this Agreement,
“Release Requirements” means, collectively, the following requirements: (i) Executive remains employed through the Planned Termination Date or, with respect to the benefits available under Section 2.a.i and Section 2.a.ii
(but not for purposes of Section 2.a.iii), Executive experiences a Qualifying Termination; (ii) 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; (iii) Executive does not materially breach this Agreement or breach the Employee Agreement; and (iv) not earlier than the Planned Termination Date, and not later than 21 days after the Planned Termination Date,
Executive (or, in the event of Executive’s death, Executive’s beneficiaries) 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. 
 15.    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. 

16.    Arbitration. Any dispute arising from or relating to this Agreement shall be finally and exclusively settled
by arbitration in Santa Clara County, California, United States, in accordance with the Arbitration Rules and Procedures (“JAMS Rules”) of the Judicial Arbitration and Mediation Services, Inc. (“JAMS”) then in effect, by one or
more commercial arbitrator(s), who may or may not be selected from the appropriate list of JAMS arbitrators. If the Parties cannot agree upon the number and identity of the arbitrators within fifteen (15) days following the Arbitration Date,
then a single arbitrator shall be selected on an expedited basis in accordance with the JAMS Rules. The arbitrator(s) shall have the authority to grant injunctive relief and specific performance. The Parties shall pay an equal share of the fees and
costs of arbitration (including arbitrator fees, filing fees, administrative fees, and all other fees and costs related to the arbitration). The prevailing Party in the arbitration shall be entitled to an award of its reasonable attorneys’
fees, expert witness fees, and costs incurred in connection therewith. Judgment upon the award so rendered may be entered and enforced in the United States Federal Courts located in the Northern District of California or, if the Company determines
that jurisdiction is not proper in such Federal Courts, California Superior Court in the County of Santa Clara. This Agreement shall be deemed to have been made in, and shall be construed pursuant to the laws of California, including with respect to
substantive and procedural laws, without regard to conflicts of law provisions thereof. To the extent that the JAMS Rules conflict with the laws of California law, the laws of California shall take precedence. The undersigned waives to the fullest
extent permitted by law its right to a trial by jury. Should any term of this Section conflict with any other agreement between the Parties, the Parties agree that this Section shall govern, to the extent there is such conflict. 

17.    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, other than the portion representing employer Social Security and unemployment taxes, and any penalties, assessments or other costs related to such taxes (including but not
limited to under Section 409A), and that any and all payments and benefits hereunder are subject to applicable tax withholdings and other required 

  
 12 

 
withholdings. 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, but explicitly
not including (i) the portion representing employer Social Security and unemployment taxes or (ii) penalties or interest imposed on the Company as a result of its failure to withhold, or (b) damages sustained by the Company by reason
of any such claims, including attorneys’ fees and costs. 
 18.    Authority. The Company represents and
warrants that the CEO 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. 
 19.    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. 
 20.    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 2.a, 4 or 13 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 the 45-Day Payment and may cease making any other cash severance payments to Executive and recover from Executive any
cash severance payments already made with the exception of the 45-Day Payment. 

21.    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. 

22.    Entire Agreement. This Agreement, the Employee Agreement, the Stock Agreements, the DCP, 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. 

  
 13 

 23.    No Oral Modification. This Agreement may be amended only
in a writing signed by Executive and the CEO. 
 24.    Governing Law. This Agreement will be governed by the
laws of the State of California, without regard to choice-of-law provisions. 

25.    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. Executive has seven (7) days after he signs this Agreement to revoke it. This Agreement will become effective on the eighth (8th) day
after Executive signed this Agreement, so long as he has not revoked this Agreement before that date (the “Effective Date”). 

26.    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. 

27.    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 be paid 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 27.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 17 of this Agreement regarding Executive’s responsibility for the payment of taxes. 

b.    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 appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. Notwithstanding any contrary provision of this Agreement, in no

  
 14 

 
event will the Company have any liability or obligation to reimburse, indemnify, or hold harmless Executive (or Executive’s estate or beneficiaries or any other person) for any taxes, costs
or liabilities that may be imposed on or incurred by Executive (or Executive’s estate or beneficiaries or any other person) as a result of Section 409A or any provision of the Code. The provisions of this Agreement are intended to comply
with or be exempt from the requirements of Section 409A so that none of the Severance Payment or other 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 or be exempt. 
 28.    Protected Activity Not
Prohibited. Executive understands that nothing in this Agreement shall in any way limit or prohibit Executive from engaging for a lawful purpose in any Protected Activity. For purposes of this Agreement, “Protected Activity” includes
filing and/or pursuing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by any state, federal, or other governmental agency, including the
Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Executive understands that in connection
with such Protected Activity under this section, Executive is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing,
Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information under the Employee Agreement to any parties other than the Government Agencies.
Executive further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications except as may be required by law or a court of competent jurisdiction, and that any such
disclosure without the Company’s written consent shall constitute a material breach of this Agreement. Any language in the Employee Agreement regarding Executive’s right to engage in Protected Activity that conflicts with, or is contrary
to, this paragraph is superseded by this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for
the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or
(ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected
violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the
trade secret, except pursuant to court order. 
 29.    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; 

  
 15 

	 	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; 

  

	 	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. 

oOo 
 [Signature Page
Follows] 

  
 16 

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

 

							
		 		 	Steve Ghanayem, an individual
			
	 Dated: July 2nd, 2020.
	 		 	 /s/ Steve Ghanayem

		 		 	Steve Ghanayem
			
		 		 	APPLIED MATERIALS, INC.
				
	 Dated: July 3, 2020.
	 		 	By:	 	 /s/ Gary E. Dickerson

		 		 		 	Gary E. Dickerson
		 		 		 	President and Chief Executive Officer

  
 17 

 APPENDIX A 

Equity Awards to be Forfeited on Effective Date 
  

									
	 Grant ID
	 	 Grant Date
	 	 Grant Type
	 	 Scheduled or

Potential
 Vesting
Date
	 	 Number of

Shares at Target
Performance*

	 PAMI790069
	 	11/06/2017	 	RSU	 	12/19/2021	 	8,877
	 PAMI990660
	 	12/06/2018	 	RSU	 	12/19/2021	 	14,228
	 PAMI990751M
	 	12/06/2018	 	PRSU	 	12/19/2021	 	21,341
	 PAMI990751P
	 	12/06/2018	 	PRSU	 	12/19/2021	 	21,341
	 PAMI1002717
	 	12/05/2019	 	RSU	 	12/19/2021	 	7,955
	 PAMI1002717
	 	12/05/2019	 	RSU	 	12/19/2022	 	7,955
	 PAMI1002726M
	 	12/05/2019	 	PRSU	 	12/19/2022	 	11,932
	 PAMI1002726P
	 	12/05/2019	 	PRSU	 	12/19/2022	 	11,932
		 		 		 	  
	 	  

		 	TOTAL	 	105,561
		 		 		 	  
	 	  

  

	*	 The number of shares scheduled to vest at target performance is included in this table for reference only;
however, for the avoidance of doubt, all shares subject to the listed Equity Awards that have a scheduled or potential vesting date that is later than December 19, 2020 are forfeited as of the Effective Date. 

  
 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. 

This Supplemental Release Agreement (“Supplemental Release”) is made by and between Steve Ghanayem (“Executive”) and
Applied Materials, Inc. (“Company”) (jointly referred to as the “Parties”). Terms capitalized herein but not defined herein shall have the meanings given to them in that certain Agreement by and between the Parties to which this
Exhibit is attached. Executive’s employment terminated on                     , 2021 (“Termination Date”) and such Termination Date
was intended by the Parties to be Executive’s separation from service with the Company within the meaning of Section 409A of the Internal Revenue Code. 

1.    General Release. In consideration of the mutual promises, and consideration provided in the Steve Ghanayem
Separation Agreement and Release, effective as of                     , 2020 (the “Agreement”), Executive hereby verifies and confirms his
renewed agreement to the terms of that Agreement, including but not limited to the release and waiver of any and all claims relating to the services provided to the Company, and further extends such release and waiver to any claims that may have
arisen during the Transition Period as defined therein, including but not limited to claims under any local ordinance or state or federal employment law, including laws prohibiting discrimination in employment on the basis of race, sex, age,
disability, national origin, or religion, as well as any claims for misclassification, wrongful discharge, breach of contract, attorneys’ fees, costs, or any claims of amounts due for fees, commissions, expenses, salary, bonuses, profit sharing
or fringe benefits. 
 2.    Consideration. Contingent on Executive’s execution and non-revocation of this Supplemental Release and meeting the other Release Requirements (as defined in the Agreement), the Company agrees that Executive will be provided with the severance payments as set forth in
Section 2.a of the Agreement, pursuant to the terms and conditions set forth in the Agreement. 
 3.    Return
of Company Property. Executive’s signature below constitutes his certification under penalty of perjury that he has returned all documents 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 except as provided in the Agreement. 

 4.    Payment of Salary and Receipt of All Benefits. Executive
acknowledges and represents that, other than the consideration set forth in this Supplemental Release or outstanding vested Equity Awards (as defined in the Agreement), the payment of any accrued paid time off, which shall be timely paid, and the
payment of wages owed through the Termination Date, the Company has paid or provided all salary, wages, bonuses, accrued paid time off, premiums, leaves, 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. 

5.    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 SR Effective Date of this Supplemental Release. 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
further acknowledges that he has been advised by this writing that: (a) he should consult with an attorney prior to executing this Supplemental Release; (b) he has twenty-one (21) days
within which to consider this Supplemental Release; (c) he has seven (7) days following his execution of this Supplemental Release to revoke this Supplemental Release; (d) this Supplemental Release shall not be effective until after
the revocation period has expired; and (e) nothing in this Supplemental Release 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 Supplemental Release and returns it to the Company in less than the
twenty-one (21)-day period identified above, Executive hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering
this Supplemental Release. Executive acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Supplemental Release on the Company’s behalf that is received prior to the SR
Effective Date. The Parties agree that changes, whether material or immaterial, do not restart the running of the twenty-one (21)-day period. 

6.    Protected Activity Not Prohibited: Executive understands that nothing in this Supplemental Release shall in
any way limit or prohibit Executive from engaging for a lawful purpose in any Protected Activity. For purposes of this Supplemental Release, “Protected Activity” includes filing and/or pursuing a charge, complaint, or report with, or
otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by any state, federal, or other governmental agency, including the Securities and Exchange Commission, the Equal Employment Opportunity
Commission, , the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Executive understands that in connection with such Protected Activity, Executive is permitted to disclose
documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or

  
 2 

 
disclosure of any information that may constitute Company Confidential Information under the Employee Agreement or Section 8 of the Agreement to any parties other than the Government
Agencies. Executive further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications, and that any such disclosure without the Company’s written consent shall
constitute a material breach of this Supplemental Release. Any language in the Employee Agreement regarding Executive’s right to engage in Protected Activity that conflicts with, or is contrary to, this paragraph is superseded by this
Supplemental Release. In addition, pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade
secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a
complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may
disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except
pursuant to court order. 
 7.    Entire Agreement. The Agreement and this Supplemental Release represents the
entire agreement and understanding between the Company and Executive concerning the subject matter of this Supplemental Release, the Agreement and Executive’s relationship with and separation from the Company and the events leading thereto and
associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Supplemental Release and Executive’s relationship with the Company, including but not limited to the Offer
Letter, with the exception of the Employee Agreement (other than as specified in Section 28 of the Agreement), and the Stock Agreements. 

8.    Expiration of Supplemental Release. Executive understands that this Supplemental Release shall be null and
void if not executed by him within twenty one (21) days following the Termination Date (as defined in the Agreement).    Executive has seven (7) days after he signs this Supplemental Release to revoke it. This
Supplemental Release will become effective on the eighth (8th) day after Executive signed this Supplemental Release, so long as it has not been revoked by Executive before that date (the “SR Effective Date”). 

9.    Voluntary Execution of Supplemental Release. Executive understands and agrees that he executed this
Supplemental Release 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 Supplemental Release; 

  
 3 

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

  

	 	(c)	 he understands the terms and consequences of this Supplemental Release and of the releases it contains; and

  

	 	(d)	 he is fully aware of the legal and binding effect of this Supplemental Release. 

 

							
	Dated:                 , 2021.	 		 		 	Steve Ghanayem, an individual
				
		 		 	    	 	  

		 		 		 	Steve Ghanayem

  
 4EX-10.3

 Exhibit 10.3 

VITAL FARMS, INC. 
 STOCK
OPTION AGREEMENT 
 PART I 

Vital Farms, Inc. (the “Company”) has granted the following option to purchase shares of its Common Stock (“Option
Shares”): 
 NOTE: If this option has been documented in the Carta system, all information in the table below and under the
caption “Vesting Schedule,” if not set forth herein, will be set forth in the information contained in Optionee’s electronic acceptance documented in the Carta system. The Company’s grant and Optionee’s acceptance will be
documented in the Carta system. 
  

	
	Optionee:
	
	Grant Date:
	
	Exercise Price per Share:
	
	Number of Option Shares:
	
	Expiration Date:
	
	Type of Option:
	
	Date Exercisable:

 Vesting Schedule: 

Part II of this Agreement is attached hereto and incorporated herein for all purposes. 

 PART II - AGREEMENT 

THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into by and between the Company and the Optionee named on
Part I, as of the date set forth on Part I (the “Grant Date”). 
 RECITALS 

A.    The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board (or of the board of directors of any Parent or Subsidiary) and consultants and other independent advisors who provide services to the Company (or any Parent or Subsidiary). 

B.    Optionee is to render valuable services to the Company (or a Parent or Subsidiary), and this Agreement is executed
pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 

C.    Capitalized terms in this Agreement not otherwise defined herein shall have the meanings assigned to them in the
Plan. 
 NOW, THEREFORE, it is hereby agreed as follows: 

1.    Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an option to purchase up to the
number of shares subject to the option (the “Option Shares”) specified in Part I. The Option Shares shall be purchasable from time to time during the option term specified in Section 2 at the exercise price per share set forth
on Part I (the “Exercise Price”). 
 2.    Option Term. This option shall have a term of 10
years measured from the Grant Date and shall accordingly expire at the close of business on the tenth anniversary of the Grant Date as set forth on Part I (the “Expiration Date”), unless sooner terminated in accordance with the
terms hereof. 
 3.    Limited Transferability. This option shall be neither transferable nor assignable by
Optionee other than by will or by the laws of descent and distribution following Optionee’s death and may be exercised, during Optionee’s lifetime, only by Optionee. However, if this option is designated as a
Non-Statutory Option in Part I, then this option may be assigned in whole or in part during Optionee’s lifetime pursuant to a “Permitted Transfer”, as defined below. The assigned portion may
only be exercised by the person or persons who acquire a proprietary interest in the option pursuant to the Permitted Transfer. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to
such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate. 
 As used
herein, “Permitted Transfer” shall mean a transfer of the Non-Statutory Option (i) to one or more members of Optionee’s immediate family or to an estate planning entity established
exclusively for Optionee or one or more members of Optionee’s immediate family, or (ii) with the consent of the Plan Administrator, to an entity of which Optionee is an officer, director, shareholder, partner or affiliate.
“Immediate family” as used herein shall mean spouse or partner, lineal descendant or antecedent, father, mother, brother or sister. 

4.    Exercisability/Vesting. 

(a)    This option shall vest and be exercisable as set forth in Part I (the “Vesting Schedule”), such
Vesting Schedule being subject to acceleration as set forth in this Agreement. Subject to the relevant provisions and limitations contained herein, Optionee may exercise options which have vested in accordance with the Vesting Schedule. Optionee may
not exercise unvested options unless specifically permitted in Part I hereof. 
 (b)    If so designated in Part I, this
option shall be immediately exercisable for any or all of the Option Shares, whether or not the Option Shares are vested in accordance with the Vesting 

  
 Part II – Page 1

 Schedule, and shall remain so exercisable until the Expiration Date or sooner termination of the option term
in accordance with the terms hereof. Option Shares purchased under this option shall be subject to repurchase rights of the Company as set forth in this Agreement. 

(c)    If the option is immediately exercisable and Optionee exercises such option, Optionee shall, in accordance with the
Vesting Schedule, vest in the Option Shares in one or more installments over his or her period of Service. Vesting in the Option Shares may be accelerated pursuant to the provisions of Section 6. In no event, however, shall any additional
Option Shares vest following Optionee’s cessation of Service. 
 5.    Cessation of Service. The option term
specified in Section 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 

(a)    If Optionee ceases to remain in Service for any reason (other than death, Permanent Disability or Misconduct) while
this option is outstanding, then Optionee shall have a period of 3 months (commencing with the date of such cessation of Service) during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration
Date. 
 (b)    If Optionee dies while this option is outstanding, then the personal representative of Optionee’s
estate or the person or persons to whom the option is transferred pursuant to Optionee’s will or in accordance with the laws of descent and distribution shall have the right to exercise this option. Such right shall lapse and this option shall
cease to be outstanding upon the earlier of (A) the expiration of the 12-month period measured from the date of Optionee’s death or (B) the Expiration Date. 

(c)    If Optionee ceases Service by reason of Permanent Disability while this option is outstanding, then Optionee shall
have a period of 12 months, commencing with the date of such cessation of Service, during which to exercise this option. In no event shall this option be exercisable at any time after the Expiration Date. 

(d)    If Optionee’s Service is terminated for Misconduct, then this option shall terminate immediately and cease to
remain outstanding. 
 (e)    During the post-Service exercise period, this option may not be exercised in the aggregate
for more than the number of Option Shares in which Optionee is, at the time of Optionee’s cessation of Service, vested in accordance with the Vesting Schedule. Upon the expiration of such post-Service exercise period or, if earlier, upon the
Expiration Date, this option shall terminate and cease to be outstanding for any vested Option Shares for which the option has not been exercised. To the extent Optionee is not vested in the Option Shares at the time of Optionee’s cessation of
Service, this option shall immediately terminate and cease to be outstanding with respect to those shares. 

6.    Corporate Transaction. 

(a)    All the Option Shares subject to this option at the time of a Corporate Transaction but not otherwise vested shall
automatically vest and the Company’s repurchase rights with respect to those Option Shares set forth in this Agreement shall immediately terminate so that this option shall, immediately prior to the effective date of the Corporate Transaction,
become exercisable for all of the Option Shares as fully-vested shares of Common Stock and may be exercised for any or all of those Option Shares. No such accelerated vesting of the Option Shares, however, shall occur if and to the extent:
(i) this option is, in connection with the Corporate Transaction, either to be assumed by the successor Company (or parent thereof) or to be replaced with a comparable option to purchase shares of the capital stock of the successor Company (or
parent thereof), and the Company’s repurchase rights with respect to the Option Shares are to be assigned to such successor Company (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor
Company which preserves the spread existing on the unvested Option Shares at the time of the Corporate Transaction (the excess of the Fair Market Value of those Option Shares over the Exercise Price payable for such shares) and provides for
subsequent payout in accordance with the Vesting Schedule. The determination of option comparability under clause (i) shall be made by the Plan Administrator, and its determination shall be final, binding and conclusive. 

  
 Part II – Page 2

 (b)    Immediately following the Corporate Transaction, this option
shall terminate and cease to be outstanding, except to the extent assumed by the successor Company (or parent thereof) in connection with the Corporate Transaction. 

(c)    If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately
adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities which would have been issuable to Optionee in consummation of such Corporate Transaction had the option been exercised immediately prior to such
Corporate Transaction, and appropriate adjustments shall also be made to the Exercise Price provided the aggregate Exercise Price shall remain the same. 

(d)    [Intentionally omitted] 

(e)    This Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

7.    Proprietary Information. In consideration of the Company’s grant of this option and the Company’s
agreement to provide Optionee with confidential information of the Company, Optionee agrees to keep confidential and not to use or to disclose to others at any time during Optionee’s period of Service and after Optionee’s cessation of
Service, for whatever reason, except as expressly consented to in writing by the Company or required by law, any secrets or confidential technology or proprietary information of the Company or any of its clients, including without limitation, any
customer list, marketing plans or materials, or other trade secrets of the Company, or any matter or thing ascertained by Optionee through Optionee’s affiliation with the Company, the use or disclosure of which matter or thing that might
reasonably be construed to be contrary to the best interests of the Company or to give any other party a competitive advantage over the Company. Optionee further agrees that upon Optionee’s cessation of Service, Optionee will neither take nor
retain, without prior written authorization from the Company, any documents pertaining to the Company (other than paycheck stubs, benefit information, offer letters, or other materials pertaining to his salary or benefits with the Company). Without
limiting the generality of the foregoing, Optionee agrees that Optionee will not retain, use or disclose any papers, customer lists, marketing materials or information, books, records, files, or other documents, copies thereof, or notes or other
materials derived therefrom, or other confidential information of any kind belonging to the Company pertaining to the Company’s business, sales, financial condition or products (or any similar materials relating to the Company’s clients).
Without limiting other possible remedies to the Company for the breach of this covenant, Optionee agrees that injunctive or other equitable relief shall be available to enforce this covenant, such relief to be without the necessity of posting a
bond, cash, or otherwise. Optionee further agrees that if any restriction contained in this Section is held by any court to be unenforceable or unreasonable, a lesser restriction shall be enforced in its place and remaining restrictions contained
herein shall be enforced independently of each other. Optionee’s obligations under this Section apply to all confidential information of the Company as well as to any and all confidential information relating to the Company’s Subsidiaries.

 8.    Noncompetition. 

(a)    Basis of Covenants. The Company’s business involves providing organic and natural poultry eggs and farm
products to the wholesale and retail marketplaces. Optionee recognizes that the Company’s decision to enter into this Agreement and to grant the option herein granted is induced primarily because of the covenants and assurances made by Optionee
in this Agreement, that irrevocable harm and damage will be done to the Company if Optionee violates the obligation to maintain the confidentiality of proprietary information, or competes with the Company. Optionee stipulates and agrees that the
consideration given by the Company in granting this option and in granting Optionee access to the confidential information of the Company gives rise to the Company’s interest in the promises made by Optionee in this Section; further, Optionee
stipulates that the 

  
 Part II – Page 3

 promises Optionee makes in this Section are designated to enforce the promises made by Optionee, including
those set forth in Section 7. Optionee will continue to receive the Company’s proprietary information and will receive training of substantial value as a result of Optionee’s affiliation with the Company. 

(b)    Noncompetition Covenant. Optionee agrees that during Optionee’s period of Service and for a period of 24
months following Optionee’s cessation of Service, for whatever reason, Optionee shall not, directly or indirectly, as an employee, employer, contractor, consultant, agent, principal, shareholder, corporate officer, director, or in any other
individual or representative capacity, engage or participate in any business or practice that is in competition in any manner whatsoever with the business of the Company. Any breach or attempted breach of this covenant or the covenants in
Section 7 shall be deemed to be a termination for Misconduct under the Plan. For the purpose of this agreement, competition, competes or competing shall be defined as including without limitation, any business in the production of chicken eggs
and other products that are marketed as “pastured” or “pasture-raised” or any similar term including or referencing the word “pasture”, or any term implying that specifically to the birds producing such eggs are raised
on pasture where each bird has 20 square feet or more of such area at any given time. 
 (c)    Nonsolicitation
Covenant. In addition, Optionee agrees that during Optionee’s period of Service and for a period of 24 months following Optionee’s cessation of Service, for whatever reason, Optionee shall not solicit, contract, or otherwise communicate
for the purpose of soliciting business with any person, company or business of the sale or distribution of chicken eggs and other products that are marketed as “pastured” or “pasture-raised” or any similar term including or
referencing the word “pasture, or any term implying that the birds producing such eggs are raised on pasture where each bird has 20 square feet or more of such area at any given time that was a client, customer, supplier, vendor or prospective
client, customer, supplier or vendor of the Company, whom Optionee personally solicited, contacted, communicated with or accepted business from while Optionee was an employee of the Company at any time during the 12 months preceding termination of
Service. 
 (d)    Non-Interference Covenant. Optionee covenants and agrees
that, for a period of 24 months following cessation of Service, for whatever reason, that Optionee shall not recruit, hire or attempt to recruit or hire, directly or by assisting others, any other employees of the Company, nor shall Optionee contact
or communicate with any other employees of the Company for the purpose of inducing other employees to terminate their employment with the Company. For purposes of this covenant, “other employees” means employees who are actively employed
by the Company at the time of the attempted recruiting or hiring. 
 9.    Remedies. 

(a)    The covenants contained in Sections 7 and 8 shall be construed as an agreement ancillary to the other provisions of
this Agreement and the existence of any claim or cause of action of Optionee against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of such covenants. Without limiting
other possible remedies to the Company for breach of the covenants in Sections 7 and 8, Optionee agrees that injunctive or other equitable relief will be available to enforce such covenants, such relief to be without the necessity of posting a bond,
cash, or otherwise. 
 (b)    If Optionee violates any of the covenants of Section 8, the 24-month term of the restriction violated shall be extended by the amount of time that Optionee was in violation. 

(c)    The Company and Optionee further agree that if any restriction contained in Section 7 or 8 is held by any
appropriate forum to be unenforceable or unreasonable, a lesser restriction will be enforced in its place and remaining restrictions contained herein will be enforced independently of each other. Optionee agrees to pay any attorneys’ fees, and
expenses incurred by the Company if the Company chooses, in its sole discretion, to enforce any provision hereunder. 

  
 Part II – Page 4

 Without in any way limiting the other terms and provisions of this Agreement or the Plan, if Optionee
violates Section 7 or 8 of this Agreement at a time that Optionee holds unexercised options granted under the Plan, such options shall be deemed immediately cancelled and shall have no further force and effect. In addition, if Optionee violates
Section 7 or 8 of this Agreement following Optionee’s exercise of options and acquisition of Option Shares, the Company shall have the right to repurchase such Option Shares for the Exercise Price per Option Share in accordance with the
terms of the Stock Purchase Agreement between the Company and Optionee, in addition to Optionee’s payment of all other damages that the Company has suffered as result of Optionee’s breach, and to all other relief to which the Company is
entitled under this Agreement and under applicable law. 
 10.    Adjustment in Option Shares. If any stock
split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (a)
the total number and/or class of securities subject to this option and (b) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 

11.    Shareholder Rights. The holder of this option shall not have any shareholder rights with respect to the
Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares. 

12.    Manner of Exercising Option. 

(a)    In order to exercise this option with respect to all or any part of the Option Shares for which this option is at
the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 

(i)    Execute and deliver to the Company a Stock Purchase Agreement substantially in the form attached hereto as
Exhibit A for the Option Shares for which the option is exercised, or such other form as may be prescribed by the Company. 

(ii)    Pay the aggregate Exercise Price, plus all applicable federal, state and local income and employment taxes, if
any, for the purchased shares in one or more of the following forms: 
 (A)    cash or check made payable to the
Company; 
 (B)    a promissory note payable to the Company, but only to the extent authorized by the Plan
Administrator in accordance with Section 19; 
 (C)    if then permitted by the Plan Administrator, in shares of
Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise
Date; or 
 (D)    if the Common Stock is registered under Section 12(g) of the 1934 Act and to the extent the
option is exercised for vested Option Shares, through a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall concurrently provide irrevocable written instructions (i) to a
Company-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the
purchased shares plus all applicable federal, state and local income and employment taxes required to be withheld by the Company by reason of such exercise and (ii) to the Company to deliver the certificates for the purchased shares directly to
such brokerage firm in order to complete the sale. 
 Except to the extent the sale and remittance procedure is utilized in connection with
the option exercise, payment of the Exercise Price must accompany the Stock Purchase Agreement delivered to the Company in connection with the option exercise. 

  
 Part II – Page 5

 (iii)    Furnish to the Company appropriate documentation that the
person exercising the option (if other than Optionee) has the right to exercise the option. 
 (iv)    Execute and
deliver to the Company such written representations as may be requested by the Company in order for it to comply with the applicable requirements of federal and state securities laws. 

(b)    As soon as practical after the Exercise Date, the Company shall issue to or on behalf of Optionee (or any other
person or persons exercising the option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. To the extent any such Option Shares are subject to repurchase rights, the certificates for those Option Shares
shall be endorsed with an appropriate legend evidencing the Company’s repurchase rights and may be held in escrow with the Company until such shares vest. 

(c)    In no event may this option be exercised for any fractional shares. 

13.    REPURCHASE RIGHTS; TRANSFER RESTRICTIONS. ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THE OPTION MAY BE
SUBJECT TO CERTAIN REPURCHASE RIGHTS, DRAG- ALONG RIGHTS, VOTING AGREEMENTS AND TRANSFER RESTRICTIONS EXERCISABLE BY THE COMPANY AND ITS ASSIGNS. THE TERMS OF SUCH RIGHTS ARE SPECIFIED IN THE STOCK PURCHASE AGREEMENT. 

14.    No Employment or Service Contract. Nothing in this Agreement shall confer upon Optionee any right to
continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly
reserved by each, to terminate Optionee’s Service at any time for any reason, with or without cause and with or without notice. 

15.    Compliance with Laws and Regulations. 

(a)    The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance
by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange (or to Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at the
time of such exercise and issuance. As a condition precedent to the exercise of the option granted hereby, the Company may require Optionee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 

(b)    The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to
be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect to the non-issuance or sale of the Common Stock as to which such
approval shall not have been obtained. The Company, however, shall use its best efforts to obtain all such approvals. 

(c)    OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED.
ACCORDINGLY, OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. 

16.    Arbitration. Any legal or equitable claims or disputes between Optionee and the Company, including without
limitation, those arising out of or in connection with the Service, or the termination of Service, of Optionee by the Company (other than a suit for injunctive relief) will be resolved exclusively by binding arbitration. This Agreement applies to
the following allegations, disputes, and claims for relief, but is not limited to those listed: wrongful discharge under statutory law and common law; employment discrimination based on federal, state, or local statute, ordinance, or governmental
regulation; retaliatory discharge or other action; compensation disputes; tortious conduct; contractual violations (although no contractual relationship, other than at will employment and this Agreement and agreement to arbitrate, is hereby
created); ERISA violations; and other statutory and common law claims and disputes. 

  
 Part II – Page 6

 The arbitration proceedings shall be conducted in Austin, Texas in accordance with the
Commercial Dispute Resolution Rules (the “CDR Rules”) of the American Arbitration Association (“AAA”) in effect at the time a demand for arbitration is made. Optionee is entitled to representation by an attorney
throughout the proceedings at his own expense; however, the Company agrees not to use an attorney in the arbitration hearing if the Optionee agrees to the same. 

One arbitrator shall be used and shall be chosen by mutual agreement of the parties. If, within 30 days after the Optionee notifies the
Company of an arbitrable dispute, no arbitrator has been chosen, an arbitrator shall be chosen from a list or lists of proposed arbitrators submitted by the AAA pursuant to its CDR Rules, except that (a) the number of preemptory strikes shall
not be limited, and (b) if the parties fail to select an arbitrator from one or more lists, AAA shall not have the power to appoint the arbitrator but shall continue to submit lists until the arbitrator has been selected. The arbitrator shall
coordinate, and limit as appropriate, all pre-arbitral discovery, which shall include document production, information requests, and depositions. The arbitrator shall issue a written decision and award stating
the reasons therefor. The decision and award shall be final and binding on parties, their heirs, executors, administrators, successors, and assigns, and shall be treated as strictly confidential by the parties. The costs and expenses of the
arbitration shall be borne evenly by the parties. 
 17.    Successors and Assigns. Except to the extent
otherwise provided in Sections 3 and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and Company’s assigns, the Company and its successors and assigns and Optionee, Optionee’s assigns and
the legal representatives, heirs and legatees of Optionee’s estate. 
 18.    Notices. Any notice required
to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Company at the Company’s principal corporate offices. Any notice required to be given or delivered to Optionee shall be in
writing and addressed to Optionee at the address indicated on Part I. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 

19.    Financing. The Plan Administrator may, in its absolute discretion made without any obligation to do so,
permit Optionee to pay the Exercise Price for the purchased Option Shares by delivering a full-recourse promissory note payable to the Company. The terms of any such promissory note (including the interest rate, the requirements for collateral and
the terms of repayment) shall be established by the Plan Administrator in its sole discretion. 

20.    Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and
are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under this Agreement shall be conclusive and binding on all persons having an interest in this
option. 
 21.    Governing Law. This Agreement shall be governed by the laws of the State of Texas without
giving effect to any choice or conflict of law provisions. 
 22.    Acknowledgement: Optionee hereby
acknowledges receipt of a copy of the Plan in the form attached hereto as Exhibit B. 
 23.    Shareholder
Approval. 
 (a)    If this option is designated in Part I as an Incentive Option, then its character as an Incentive
Option is subject to approval of the Plan by the Company’s shareholders within 12 months after the adoption of the Plan by the Board. If such shareholder approval is not obtained, then this option, if designated as an Incentive Option in Part
I, shall automatically, without any action on the part of the Company or Optionee, be treated as a Non-Statutory Option. 

  
 Part II – Page 7

 (b)    If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock that may be issued under the Plan, then this option shall be void with respect to such excess shares, unless shareholder approval of an amendment sufficiently increasing the number of shares of Common
Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. 
 24.    Severability.
If any provision of this Agreement is held by final judgment of a court of competent jurisdiction to be invalid, illegal or unenforceable, such invalid, illegal or unenforceable provision shall be severed from the remainder of this Agreement, and
the remainder of this Agreement shall be enforced. In addition, the invalid, illegal or unenforceable provision shall be deemed to be automatically modified, and, as so modified, to be included in this Agreement, such modification being made to the
minimum extent necessary to render the provision valid, legal and enforceable. Notwithstanding the foregoing, however, if the severed or modified provision concerns all or a portion of the essential consideration to be delivered under this Agreement
by one party to the other, the remaining provisions of this Agreement shall also be modified to the extent necessary to equitably adjust the parties’ respective rights and obligations hereunder. 

25.    Entire Agreement. Except as provided below, the Plan, this Agreement, including the exhibits and schedules
attached hereto, if any, contains the entire agreement of the parties with respect to the subject matters hereof, and supersedes all prior agreements between them, whether oral or written, of any nature whatsoever with respect to the subject matter
hereof. However, this Agreement does not supersede the Company’s rights under any agreement between Optionee and the Company that (i) protects the Company’s proprietary information or intellectual property, or (ii) prohibits
Optionee from competing with the Company or soliciting the Company’s customers, suppliers or employees; rather all such rights of the Company under any such agreements shall be in addition to the rights granted herein. In addition, if the
Company and Optionee have entered into a separate agreement concerning arbitration of claims, the Company shall elect, within 10 days of notice from Optionee of a claim to be arbitrated, whether any such arbitration shall be governed by the
provisions of this Agreement or of such separate agreement. 

  
 Part II – Page 8

 VITAL FARMS, INC. 

STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of this
                     day of             , 20     , by and between
Vital Farms, Inc., a Delaware corporation (the “Company”),                      and (“Optionee”), under the
Company’s 2013 Incentive Plan (the “Plan”). 
 Capitalized terms in this Agreement not otherwise defined herein shall
have the meanings assigned to them in the Plan. 
 1.    Exercise of Option. 

(a)    Purchase. Optionee hereby purchases
                     shares of Common Stock (the “Purchased Shares”) pursuant to that certain Stock Option Agreement (the
“Option Agreement”) dated             , 20     (the “Grant Date”), to purchase up to shares of Common Stock under the Plan at the
exercise price of $[        ] per share (the “Exercise Price”). 

(b)    Payment. Concurrently with the delivery of this Agreement to the Company, Optionee shall pay the Exercise
Price, plus all applicable federal, state and local income and employment taxes, if any, for the Purchased Shares in accordance with the provisions of the Option Agreement and, if the Purchased Shares are not fully vested (the “Unvested
Shares”), shall deliver a duly-executed blank Stock Power in the form attached hereto as Exhibit I with respect to the Purchased Shares. 

(c)    Escrow. The Company shall have the right to hold the Purchased Shares in escrow until those shares have
vested in accordance with the Vesting Schedule set forth in Part I of the Option Agreement (when so vested, the “Vested Shares”). 

(d)    Shareholder Rights. Until such time as the Company exercises the Repurchase Right or the First Refusal Right
(as defined below), Optionee or any successor in interest (Optionee and any successor-in-interest being sometimes referred to herein as “Owner”), shall
have all the rights of a shareholder (including voting, dividend and liquidation rights) with respect to the Purchased Shares, subject, however, to the transfer restrictions of Section 2. 

2.    Transfer Restrictions. 

(a)    Restricted Securities. The Purchased Shares have not been registered under the Securities Act of 1933, as
amended (“1933 Act”), and are being issued to Optionee in reliance upon one or more exemptions from such registration provided by Securities and Exchange Commission (“SEC”). Optionee hereby confirms that Optionee
has been informed that the Purchased Shares are restricted securities under the 1933 Act and may not be resold or transferred unless the Purchased Shares are first registered under the federal securities laws or unless an exemption from such
registration is available. Accordingly, Optionee hereby acknowledges that Optionee is prepared to hold the Purchased Shares for an indefinite period and that Optionee is aware that SEC Rule 144 issued under the 1933 Act, which exempts certain
resales of restricted securities, is not presently available to exempt the resale of the Purchased Shares from the registration requirements of the 1933 Act. 

(b)    Restrictions on Disposition of Purchased Shares. Optionee shall not transfer, assign, encumber or otherwise
dispose of any Unvested Shares. Without the Company’s consent, Optionee shall not transfer, assign, encumber or otherwise dispose of any Vested Shares other than a Permitted Transfer (as defined below) unless and until there is compliance with
all of the following requirements: 
 (i)    Optionee shall have provided the Company with a written summary of the
terms and conditions of the proposed disposition. 

  
 1 

 (ii)    Optionee shall have complied with all requirements of this
Agreement applicable to the disposition of the Purchased Shares, including without limitation, the First Refusal Right and Market Stand-Off (as defined below). 

(iii)    Optionee shall have provided the Company with written assurances, in form and substance satisfactory to the
Company, that (A) the proposed disposition does not require registration of the Purchased Shares under the 1933 Act or (B) all appropriate action necessary for compliance with the registration requirements of the 1933 Act or any exemption
from registration available under the 1933 Act (including Rule 144 promulgated thereunder) has been taken. 
 The Company shall not be
required (i) to transfer on its books any Purchased Shares that have been sold or transferred in violation of the provisions of this Agreement or (ii) to treat as the Owner of the Purchased Shares, or otherwise to accord voting, dividend
or liquidation rights to, any transferee to whom the Purchased Shares have been transferred in contravention of this Agreement. 

(c)    Transferee Obligations. Each person, other than the Company, to whom the Purchased Shares are transferred by
means of a Permitted Transfer must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Agreement and that the transferred shares are subject to
(i) the Repurchase Right, (ii) the First Refusal Right and (iii) the Market Stand-Off, to the same extent such shares would be so subject if retained by Optionee. 

(d)    Restrictive Legends. The stock certificates for all Purchased Shares shall be endorsed with substantially
the following restrictive legends: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. WITHOUT SUCH REGISTRATION, SUCH SECURITIES MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED AT ANY TIME WHATSOEVER, EXCEPT UPON DELIVERY TO THE
COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED FOR SUCH TRANSFER AND/OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY SUCH TRANSFER
WILL NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933, AS AMENDED, AND/OR APPLICABLE STATE SECURITIES LAWS AND/OR ANY RULE OR REGULATION PROMULGATED THEREUNDER. 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER RESTRICTIONS AND CERTAIN REPURCHASE RIGHTS AND RIGHTS OF FIRST
REFUSAL GRANTED TO THE COMPANY AND ACCORDINGLY, MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR IN ANY MANNER DISPOSED OF EXCEPT IN CONFORMITY WITH THE TERMS OF A STOCK PURCHASE AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE
SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). A COPY OF SUCH AGREEMENT IS MAINTAINED AT THE COMPANY’S PRINCIPAL CORPORATE OFFICES. 

(e)    Market Stand-Off. 

(i)    In connection with any underwritten public offering by the Company of its equity securities pursuant to an
effective registration statement filed under the 1933 Act, including the Company’s initial public offering (“IPO”), Owner shall not sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of,
or otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing transactions with respect to, any Purchased Shares without the prior written consent of the Company or its underwriters. Such restriction (the
“Market Stand-Off”) shall be in effect for such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Company or such
underwriters. In no event, however, shall such period exceed 180 days. 

  
 2 

 (ii)    Owner shall be subject to the Market Stand-Off provided and only if the officers and directors of the Company are also subject to similar restrictions. 

(iii)    Any new, substituted or additional securities that are by reason of any Recapitalization (as defined below) or
Corporate Transaction distributed with respect to the Purchased Shares shall be immediately subject to the Market Stand-Off, to the same extent the Purchased Shares are at such time covered by such provisions.

 (iv)    In order to enforce the Market Stand-Off, the Company may impose
stop transfer instructions with respect to the Purchased Shares until the end of the applicable stand- off provisions. 

(f)    Permitted Transfer. A “Permitted Transfer” shall mean a transfer of the Purchased Shares
(i) to one or more members of Optionee’s immediate family or to an estate planning entity established exclusively for Optionee or one or more members of Optionee’s immediate family, (ii) to persons pursuant to Optionee’s will or
the laws of intestate succession following Optionee’s death, (iii) to the Company in pledge as security for any purchase-money indebtedness incurred by Optionee in connection with the acquisition of the Purchased Shares, or (iv) with
the consent of the Plan Administrator, to an entity of which Optionee is an officer, director, shareholder, partner or affiliate. “Immediate family” as used herein shall mean spouse or partner, lineal descendant or antecedent, father,
mother, brother or sister. 
 3.    Repurchase Right. 

(a)    Grant. The Company, or its assigns, is hereby granted the right (the “Repurchase Right”),
exercisable at any time during the 90-day period following the date Optionee ceases for any reason to remain in Service, to repurchase at the Exercise Price all or any portion of the Unvested Shares. Except as
otherwise set forth herein, Unvested Shares shall be repurchased at the Exercise Price. 
 (b)    Exercise of
Repurchase Right. The Repurchase Right shall be exercisable by written notice delivered to each Owner of the Unvested Shares prior to the expiration of the 90-day exercise period. The notice shall indicate
the number of Unvested Shares to be repurchased and the date on which the repurchase is to be effected, such date to be not more than 30 days after the date of such notice. The certificates representing the Unvested Shares to be repurchased shall be
delivered to the Company prior to the close of business on the date specified for the repurchase. Concurrently with the receipt of such stock certificates, the Company shall pay to Owner, in cash or cash equivalents (including the cancellation of a
purchase money indebtedness), an amount equal to the Exercise Price previously paid for the Unvested Shares that are to be repurchased from Owner. 

(c)    Termination of Repurchase Right. In addition, the Repurchase Right shall terminate and cease to be
exercisable with respect to any and all Purchased Shares in which Optionee vests in accordance with the Vesting Schedule, subject, however, to Section 4(g). All Purchased Shares as to which the Repurchase Right lapses shall, however, remain
subject to (i) the First Refusal Right and (ii) the Market Stand-Off. 

(d)    Aggregate Vesting Limitation. If the option is exercised in more than one increment so that Optionee is a
party to one or more other Stock Purchase Agreements (the “Prior Purchase Agreements”) which are executed prior to the date of this Agreement, then the total number of Purchased Shares as to which Optionee shall be deemed to have a
fully-vested interest under this Agreement and all Prior Purchase Agreements shall not exceed in the aggregate the number of Purchased Shares in which Optionee would otherwise at the time be vested, in accordance with the Vesting Schedule, had all
the Purchased Shares, including those acquired under the Prior Purchase Agreements, have been acquired exclusively under this Agreement. 

(e)    Recapitalization. Any new, substituted or additional securities or other property (including cash paid other
than as a regular cash dividend) that is by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change 

  
 3 

 affecting the outstanding Common Stock as a class without the Company’s receipt of consideration (a
“Recapitalization”), distributed with respect to the Purchased Shares shall be immediately subject to the Repurchase Right, but only to the extent the Purchased Shares are at the time covered by such right. Appropriate adjustments
to reflect such distribution shall be made to the number and/or class of Purchased Shares subject to this Agreement and to the price per share to be paid upon the exercise of the Repurchase Right in order to reflect the effect of any such
Recapitalization upon the Company’s capital structure; provided, however, that the aggregate purchase price shall remain the same. 

(f)    Corporate Transaction. 

(i)    The Repurchase Right shall be assignable to the successor entity in any Corporate Transaction. However, to the
extent the successor entity does not accept such assignment, the Repurchase Right shall lapse immediately prior to the consummation of the Corporate Transaction. 

(ii)    To the extent the Repurchase Right remains in effect following a Corporate Transaction, such right shall apply to
the new capital stock or other property, including any cash payments, received in exchange for the Purchased Shares upon consummation of the Corporate Transaction, but only to the extent the Purchased Shares are at the time covered by such right.
Appropriate adjustments shall be made to the price per share payable upon exercise of the Repurchase Right to reflect the effect of the Corporate Transaction upon the Company’s capital structure; provided, however, that the aggregate purchase
price shall remain the same. The new securities or other property, including cash payments, issued or distributed with respect to the Purchased Shares upon consummation of the Corporate Transaction shall immediately be deposited in escrow with the
Company (or the successor entity) and shall not be released from escrow until Optionee vests in such securities or other property in accordance with the same Vesting Schedule in effect for the Purchased Shares. 

(iii)    The Repurchase Right shall automatically lapse in its entirety, and all the Purchased Shares shall immediately
vest in full, upon an Involuntary Termination of Optionee’s Service within 18 months following the effective date of a Corporate Transaction in which the Repurchase Right has been assigned. 

(g)    Repurchase Option Upon Termination for Misconduct or Violation of Non-
compete. Notwithstanding anything to the contrary herein, the Option Agreement or in the Plan, if an Owner who is an employee of the Company is terminated for Misconduct or violates, or attempts to violate, the
non-competition or non-solicitation provisions of the Option Agreement, all Unvested Shares held by Owner shall be automatically forfeited and shall cease to be
outstanding, without the payment of consideration therefor, and additionally, the Company shall have the option to repurchase all or any portion of any Vested Shares. The Company may, but is not obligated to, exercise its option by delivering
written notice to each Owner of the Vested Shares within 90 days following the date of such termination. The notice shall indicate the number of Vested Shares to be repurchased and the date on which the repurchase is to be effected, such date to be
not more than 30 days after the date of such notice. The certificate(s) representing the Vested Shares to be repurchased shall be delivered to the Company prior to the close of business on the date specified for the repurchase, along with a duly
executed stock power(s) transferring the Vested Shares to the Company. Concurrently with the receipt of such stock certificate(s) and duly executed stock power(s), the Company shall pay to Owner, by check, cash or cash equivalents (including the
cancellation of any purchase-money indebtedness), an amount equal to the aggregate Exercise Price of the Vested Shares that are to be repurchased from Owner; provided, however, if Owner fails to deliver such certificate(s) and stock power(s) to the
Company in a timely manner and the Company makes the check, cash or cash equivalents available to Owner on the date specified in the notice for repurchase of the Vested Shares, then the Vested Shares shall be deemed to have been repurchased by the
Company as of such date, notwithstanding Owner’s failure to deliver the stock certificate(s) evidencing such Vested Shares and stock power(s) transferring the Vested Shares to the Company. The Company’s repurchase option shall terminate
with respect to any Vested Shares for which it is not timely exercised under this Section, provided that all Vested Shares as to which the repurchase option lapses shall, however, remain subject to (i) the First Refusal Right and (ii) the
Market Stand-Off. 

  
 4 

 4.     Right of First Refusal. 

(a)    Grant. The Company is hereby granted the right of first refusal (the “First Refusal Right”),
exercisable in connection with any proposed transfer of the Purchased Shares in which Optionee has vested in accordance with the Vesting Schedule and has the right to sell hereunder. For purposes of this Section 4, the term “transfer”
shall include any sale, assignment, pledge, encumbrance or other disposition of the Purchased Shares intended to be made by Owner, but shall not include any Permitted Transfer. 

(b)    Notice of Intended Disposition. In the event any Owner of Purchased Shares in which Optionee has vested
desires to accept a bona fide third-party offer for the transfer of any or all of such shares (the Purchased Shares subject to such offer to be hereinafter referred to as the “Target Shares”), Owner shall promptly (a) deliver
to the Company written notice (the “Disposition Notice”) of the terms of the offer, including the purchase price and the identity of the third-party offeror, and (b) provide satisfactory proof that the disposition of the Target
Shares to such third-party offeror would not be in contravention of the provisions set forth in Section 2. 

(c)    Exercise of First Refusal Right. The Company shall, for a period of 45 days following receipt of the
Disposition Notice, have the right to repurchase any or all of the Target Shares subject to the Disposition Notice upon the same terms as those specified therein or upon such other terms not materially different from those specified in the
Disposition Notice to which Owner consents. Such right shall be exercisable by delivery of written notice (the “Exercise Notice”) to Owner prior to the expiration of the 45-day exercise
period. If such right is exercised with respect to all the Target Shares, then the Company shall effect the repurchase of such shares, including payment of the purchase price, not more than 15 business days after delivery of the Exercise Notice; and
at such time the certificates representing the Target Shares shall be delivered to the Company. 
 If the purchase price specified in the
Disposition Notice is payable in property other than cash or evidences of indebtedness, the Company shall have the right to pay the purchase price in cash equal in amount to the value of such property. If Owner and the Company cannot agree on such
cash value within 30 days after the Company’s receipt of the Disposition Notice, the valuation shall be made by an appraiser of recognized standing selected by Owner and the Company or, if they cannot agree on an appraiser within 45 days after
the Company’s receipt of the Disposition Notice, each shall select an appraiser of recognized standing and the two appraisers shall designate a third appraiser of recognized standing, whose appraisal shall be determinative of such value. The
cost of such appraisal shall be shared equally by Owner and the Company. The closing shall then be held on the later of (i) the 15th business day following delivery of the Exercise Notice or (ii) the 15th business day after such valuation
shall have been made. 
 (d)    Non-Exercise of First Refusal Right. In
the event the Exercise Notice is not given to Owner prior to the expiration of the 45-day exercise period, Owner shall have a period of 30 days thereafter in which to sell or otherwise dispose of the Target
Shares to the third-party offeror identified in the Disposition Notice upon terms, including the purchase price, no more favorable to such third-party offeror than those specified in the Disposition Notice; provided, however, that any such sale or
disposition must not be effected in contravention of the provisions of Section 2. The third-party offeror shall acquire the Target Shares free and clear of the Repurchase Right, but the acquired shares shall remain subject to the provisions of
Section 2, the First Refusal Right, and the Market Stand-Off. If Owner does not effect such sale or disposition of the Target Shares within the specified 30-day
period, the First Refusal Right shall continue to be applicable to any subsequent disposition of the Target Shares by Owner until such right lapses. 

(e)    Recapitalization/Corporate Transaction. 

(i)    Any new, substituted or additional securities or other property which is by reason of any Recapitalization
distributed with respect to the Purchased Shares shall be immediately subject to the First Refusal Right, but only to the extent the Purchased Shares are at the time covered by such right. 

  
 5 

 (ii)    In the event of a Corporate Transaction or transaction to
change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons or entities who held the Company’s securities immediately before such transaction, the
First Refusal Right shall remain in full force and effect and shall apply to the new capital stock or other property received in exchange for the Purchased Shares in consummation of the Corporate Transaction, but only to the extent the Purchased
Shares are at the time covered by such right. 
 (f)    Lapse. The First Refusal Right shall lapse upon the
earliest to occur of (i) the first date on which shares of the Common Stock are held of record by more than 500 persons, (ii) a determination is made by the Board that a public market exists for the outstanding shares of Common Stock or
(iii) an firm commitment underwritten IPO covering the offer and sale of the Common Stock in the aggregate amount of at least $10,000,000. However, the Market Stand-Off shall continue to remain in full
force and effect following the lapse of the First Refusal Right. 
 5.     Drag-Along Rights 

(a)    Notwithstanding any other provision of this Agreement, if shareholders owning greater than 70% of the outstanding
voting power of the capital stock of the Company of all classes (the “Selling Shareholders”) elect to sell all of their stock to any person (the “Drag-Along Purchaser”), then the Selling Shareholders shall have the authority and
right to require that Optionee transfer 100% of his or her Incentive Stock (as defined in the Plan) to the Drag-Along Purchaser at the same purchase price and otherwise upon the same terms and subject to the same conditions as apply to sale of the
Selling Shareholders’ stock. 
 (b)    The Selling Shareholders electing to sell their stock shall provide at least
fifteen (15) days written notice of such sale to the Company and the Optionee, including the name of the Drag-Along Purchaser, the consideration to be received for such stock and the other material terms and conditions of such sale. After the
delivery of such notice, the Selling Shareholders shall provide Optionee with any additional information as is reasonably requested with respect to such sale. In the event that the consideration, terms and/or conditions set forth in the initial
notice are thereafter amended in any material respect, the Selling Shareholders shall give written notice of the amended terms and conditions of the proposed sale to Optionee and each such notice of any material amendments to the terms shall be
given at least 10 days prior to the sale. 
 (c)    All sales of stock pursuant to this Section 5 shall be
consummated at the offices of the Corporation, unless the Selling Shareholders elect otherwise, on a date specified by the Selling Shareholders (i) not less than fifteen (15) nor more than sixty (60) days after the initial notice
delivered pursuant to subparagraph (a) above and (ii) not less than five (5) days after written notice of the date for such consummation is given by the Selling Shareholders to the Optionee. The delivery of certificates (if any) or
other instruments evidencing such stock shall be made on such date, against payment of the purchase price for such stock, with such other instruments of transfer of such stock as may be reasonably requested by the Selling Shareholders and the
Company. Additionally, Optionee shall comply with any other conditions to closing generally applicable to shareholders selling stock in such transaction. Optionee shall receive the same price and form of consideration as that received by the Selling
Shareholders for his or her stock. To the extent that the parties to the sale are to provide any indemnification or otherwise assume any other post-closing liabilities, the Selling Shareholders and Optionee selling stock in a transaction under this
Section 5 shall do so severally and not jointly (and on a pro rata basis in accordance with their respective stock being sold, provided that any Selling Shareholder, in his or her sole discretion, may assume greater liabilities) and their
respective potential liability thereunder shall not exceed the proceeds received, subject to customary exceptions in excess of such limits. Furthermore, the Selling Shareholders and Optionee shall only be required to give customary representations
and warranties, including, but not limited to, title to interests conveyed, legal authority and capacity and non-contravention of other agreements. 

(d)    Optionee, when selling capital stock in a transaction pursuant to this Section 5, shall bear his or her own
expenses of such sale. 

  
 6 

 (e)    In the event the Board has approved a Corporate Transaction other
than a sale of stock as described in Section 5(a), and shareholders owning greater than 66 2/3% of the outstanding voting power of the capital stock of the Corporation of all classes (the “Approving Shareholders”) indicate in
writing to the Participants (the “Approval Notice”) that they will vote their capital stock (in person, by proxy or by action by written consent, as applicable) in favor of such Corporate Transaction in the form attached to such
Approval Notice, then each Participant shall vote (in person, by proxy or by action by written consent, as applicable) all Incentive Stock in favor of, and adopt, such Corporate Transaction in the form attached to such Approval Notice and to vote in
opposition to any and all other proposals that could delay or impair the ability of the Company to consummate such Corporate Transaction. The Approval Notice shall be given to each Participant no later than 10 days prior to the vote or effective
date of the written consent for such Corporate Transaction. 
 (f)    Each Participant hereby constitutes and appoints
as his or her proxies and hereby grants a power of attorney to the Chief Executive Officer of the Corporation, with full power of substitution, with respect to the voting of Incentive Shares as provided herein, and hereby authorizes each of them to
represent and to vote, if and only if the Participant (i) fails to vote or (ii) attempts to vote (whether by proxy, in person or by written consent), in a manner which is inconsistent with the terms of this Section 5, all of such
Participant’s Incentive Stock in favor of the approval of a Corporate Transaction as required herein. Each Participant hereby revokes any and all previous proxies or powers of attorney with respect to the Incentive Stock and shall not
hereafter, unless and until the provisions of this Section 5 terminate, purport to grant any other proxy or power of attorney with respect to any of the Incentive Stock, deposit any of the Incentive Stock into a voting trust or enter into any
agreement, except as provided herein, arrangement or understanding with any person or entity, directly or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of Incentive Stock, in each case, with respect to
any of the matters set forth in this Section 5. 
 6.     Special Tax Election. 

(a)    Section 83(b) Election. Under Code Section 83, the excess of the Fair Market Value of the
Purchased Shares on the date any forfeiture restrictions applicable to such shares lapse, over the Exercise Price paid for such shares, will be reportable as ordinary income on the lapse date. For this purpose, the term “forfeiture
restrictions” includes the right of the Company to repurchase the Purchased Shares pursuant to the Repurchase Right. Optionee may elect under Code Section 83(b) to be taxed at the time the Purchased Shares are acquired, rather than when
and as such Purchased Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service within 30 days after the date of this Agreement. Even if the Fair Market Value of the Purchased Shares on
the date of this Agreement equals the Exercise Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. THE FORM FOR MAKING THIS ELECTION IS ATTACHED AS EXHIBIT II HERETO. OPTIONEE
UNDERSTANDS THAT FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE 30-DAY PERIOD WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME AS THE FORFEITURE RESTRICTIONS LAPSE. 

(b)    FILING RESPONSIBILITY. OPTIONEE ACKNOWLEDGES THAT IT IS OPTIONEE’S SOLE RESPONSIBILITY, AND NOT THE
COMPANY’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF OPTIONEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF. 

7.    Arbitration. Any legal or equitable claims or disputes between Optionee and the Company, including without
limitation, those arising out of or in connection with the Service, or the termination of Service, of Optionee by the Company (other than a suit for injunctive relief) will be resolved exclusively by binding arbitration. This Agreement applies to
the following allegations, disputes, and claims for relief, but is not limited to those listed: wrongful discharge under statutory law and common law; employment discrimination based on federal, state, or local statute, ordinance, or governmental
regulation; retaliatory discharge or other action; compensation disputes; tortious conduct; contractual violations (although no contractual relationship, other than at will employment and this Agreement and agreement to arbitrate, is hereby
created); ERISA violations; and other statutory and common law claims and disputes. 

  
 7 

 The arbitration proceedings shall be conducted in Austin, Texas in accordance with the
Commercial Dispute Resolution Rules (the “CDR Rules”) of the American Arbitration Association (“AAA”) in effect at the time a demand for arbitration is made. Optionee is entitled to representation by an attorney throughout the
proceedings at his own expense; however, the Company agrees not to use an attorney in the arbitration hearing if Optionee agrees to the same. 

One arbitrator shall be used and shall be chosen by mutual agreement of the parties. If, within 30 days after Optionee notifies the Company of
an arbitrable dispute, no arbitrator has been chosen, an arbitrator shall be chosen from a list or lists of proposed arbitrators submitted by the AAA pursuant to its CDR Rules, except that (a) the number of preemptory strikes shall not be
limited, and (b) if the parties fail to select an arbitrator from one or more lists, AAA shall not have the power to appoint the arbitrator but shall continue to submit lists until the arbitrator has been selected. The arbitrator shall coordinate,
and limit as appropriate, all pre-arbitral discovery, which shall include document production, information requests, and depositions. The arbitrator shall issue a written decision and award stating the reasons
therefor. The decision and award shall be final and binding on both parties, their heirs, executors, administrators, successors, and assigns, and shall be treated as strictly confidential by the parties. The costs and expenses of the arbitration
shall be borne evenly by the parties. 
 8.     General Provisions. 

(a)    Assignment. The Company may assign the Repurchase Right and/or the First Refusal Right to any person or
entity selected by the Board, including without limitation, one or more shareholders of the Company. 
 (b)    No
Employment or Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company
(or any Parent or Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any reason, with or without cause. 

(c)    Notices. Any notice required to be given under this Agreement shall be in writing and shall be deemed
effective upon personal delivery or upon deposit in the U.S. mail, registered or certified, postage prepaid and properly addressed to the party entitled to such notice at the address indicated below such party’s signature line on this Agreement
or at such other address as such party may designate by 10 days advance written notice under this Section to all other parties to this Agreement. 

(d)    No Waiver. The failure of the Company in any instance to exercise the Repurchase Right or the First Refusal
Right shall not constitute a waiver of any other repurchase rights and/or rights of first refusal that may subsequently arise under the provisions of this Agreement or any other agreement between the Company and Optionee. No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature. 

(e)    Cancellation of Shares. If the Company shall make available, at the time and place and in the amount and
form provided in this Agreement, the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such time, the person from whom such shares are to be repurchased shall no longer
have any rights as a holder of such shares other than the right to receive payment of such consideration in accordance with this Agreement. Such shares shall be deemed purchased in accordance with the applicable provisions hereof, and the Company
shall be deemed the owner and holder of such shares, whether or not the certificates therefor have been delivered as required by this Agreement. 

  
 8 

 (f)    Optionee Undertaking. Optionee hereby agrees to take
whatever additional action and execute whatever additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either Optionee or the Purchased Shares
pursuant to the provisions of this Agreement. 
 (g)    Agreement Applicable to Community Interests. Any right or
interest of a spouse of an Owner in the Purchased Shares, whether such right or interest is created by law (including community property laws) or otherwise, shall for all purposes hereof be included in, deemed a part of and bound by the same terms
hereof as the Purchased Shares to which such right or interest relates or appertains, and any action taken, offer made or purchase right exercisable hereunder with reference to Purchased Shares owned by an Owner shall be applicable to any right or
interest which the spouse of such Owner may have or be entitled to have therein. The spouse of Optionee agrees to execute the attached Spousal Consent to evidence the foregoing agreements as a condition precedent to the delivery of the Purchased
Shares to Optionee, unless waived by the Plan Administrator, in its sole discretion. 
 (h)    Termination. The
Company may terminate the Plan at any time; however, such termination will not modify the terms and conditions of this Agreement without Optionee’s consent. 

(i)    Severability. If any provision of this Agreement is held by final judgment of a court of competent
jurisdiction to be invalid, illegal or unenforceable, such invalid, illegal or unenforceable provision shall be severed from the remainder of this Agreement, and the remainder of this Agreement shall be enforced. In addition, the invalid, illegal or
unenforceable provision shall be deemed to be automatically modified, and, as so modified, to be included in this Agreement, such modification being made to the minimum extent necessary to render the provision valid, legal and enforceable.
Notwithstanding the foregoing, however, if the severed or modified provision concerns all or a portion of the essential consideration to be delivered under this Agreement by one party to the other, the remaining provisions of this Agreement shall
also be modified to the extent necessary to equitably adjust the parties’ respective rights and obligations hereunder. 

(j)    Entire Agreement. Except as provided below, this Agreement, including the exhibits and schedules attached
hereto, if any, contains the entire agreement of the parties with respect to the subject matters hereof, and supersedes all prior agreements between them, whether oral or written, of any nature whatsoever with respect to the subject matter hereof.
However, this Agreement does not supersede the Company’s rights under any agreement between Optionee and the Company that (i) protects the Company’s proprietary information or intellectual property, or (ii) prohibits Optionee
from competing with the Company or soliciting the Company’s customers, suppliers or employees; rather all such rights of the Company under any such agreements shall be in addition to the rights granted herein. In addition, if the Company and
Optionee have entered into a separate agreement concerning arbitration of claims, the Company shall elect, within 10 days of notice from Optionee of a claim to be arbitrated, whether any such arbitration shall be governed by the provisions of this
Agreement or of such separate agreement. 
 (k)    Governing Law. This Agreement shall be governed by the laws
of the State of Texas without giving effect to any choice or conflict of law provisions. 
 (l)    Successors and
Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon Optionee, Optionee’s assigns and the legal representatives, heirs and legatees of
Optionee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to join herein and be bound by the terms hereof. 

[Signature page follows.] 

  
 9 

 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first
indicated above. 
  

			
	VITAL FARMS, INC.
	
	
                     
                                         
                   

		
	By:	 	
                     
                                        

		
	Title:	 	
                     
                                        

  

			
	OPTIONEE
	
	
                     
                                        

		
	Print Name:	 	
                     
                                         
       

	
	Address:
	
	
                     
                                         
                   

	
	
                     
                                         
                   

  
 10 

 SPOUSAL CONSENT 

I, spouse of                     , have
read and am aware of, understand and fully consent and agree to the provisions of the Agreement attached hereto and its binding effect upon any interest, community or otherwise, I may own now or hereafter in any Purchased Shares, and agree that the
termination of my marriage to                      for any reason shall not have the effect of removing any Purchased Shares otherwise subject to the
Agreement from the coverage thereof. I hereby evidence such awareness, understanding, consent and agreement by joining in the Agreement and by executing below. 

 

			
	
                     
                                        

	Signature of Spouse
		
	Printed Name:	 	
                     
                    

		
	Address:	 	
	
	  

	
	  

  
 11 

 EXHIBIT I 

STOCK POWER 
 FOR VALUE
RECEIVED,                      hereby sell(s), assign(s) and transfer(s) unto
                    ,
                    
(                    ) shares of the Common Stock of
                     (the “Company”) standing in his or her name on the books of the Company represented by Certificate No.
                     herewith and do(es) hereby irrevocably constitute and appoint
                     Attorney to transfer the said stock on the books of the Company with full power of substitution in the premises. 

Dated:             , 20     

 

	
	  
 Signature

 Instruction: Please do not fill in any blanks other than the signature line. Please sign exactly as you would like your
name to appear on the issued stock certificate. The purpose of this assignment is to enable the Company to exercise the Repurchase Right without requiring additional signatures on the part of Optionee. 

  
 Exhibit I 

 EXHIBIT II 

FEDERAL INCOME TAX CONSEQUENCES AND 

SECTION 83(b) TAX ELECTION 

1.    Federal Income Tax Consequences and Section 83(b) Election For Exercise of Non- Statutory Option. If the Purchased Shares are acquired pursuant to the exercise of a Non-Statutory Option, as specified in the Option Agreement, then under Code
Section 83, the excess of the Fair Market Value of the Purchased Shares on the date any forfeiture restrictions applicable to such shares lapse over the Exercise Price paid for such shares will be reportable as ordinary income on the lapse
date. For this purpose, the term “forfeiture restrictions” includes the right of the Company to repurchase the Purchased Shares pursuant to the Repurchase Right. However, Optionee may elect under Code Section 83(b) to be taxed at the
time the Purchased Shares are acquired, rather than when and as such Purchased Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service within 30 days after the date of the Agreement.
Even if the Fair Market Value of the Purchased Shares on the date of the Agreement equals the Exercise Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. The form for making this
election is attached as part of this exhibit. FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE 30-DAY PERIOD WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME BY OPTIONEE AS THE FORFEITURE RESTRICTIONS
LAPSE. 
 2.    Federal Income Tax Consequences and Conditional Section 83(b) Election for Exercise of
Incentive Option. If the Purchased Shares are acquired pursuant to the exercise of an Incentive Option, as specified in the Option Agreement, then the following tax principles shall be applicable to the Purchased Shares: 

(i)    For regular tax purposes, no taxable income will be recognized at the time the option is exercised. 

(ii)    The excess of (a) the Fair Market Value of the Purchased Shares on the date the option is exercised or (if
later) on the date any forfeiture restrictions applicable to the Purchased Shares lapse over (b) the Exercise Price paid for the Purchased Shares will be includible in Optionee’s taxable income for alternative minimum tax purposes. 

(iii)    If Optionee makes a disqualifying disposition of the Purchased Shares, the Optionee will recognize ordinary
income in the year of such disposition equal in amount to the excess of (a) the Fair Market Value of the Purchased Shares on the date the option is exercised or (if later) on the date any forfeiture restrictions applicable to the Purchased
Shares lapse over (b) the Exercise Price paid for the Purchased Shares. Any additional gain recognized upon the disqualifying disposition will be either short-term or long-term capital gain depending upon the period the Purchased Shares are
held prior to the disposition. 
 (iv)    For purposes of the foregoing, the term “forfeiture restrictions”
will include the right of the Company to repurchase the Purchased Shares pursuant to the Repurchase Right. The term “disqualifying disposition” means any sale or other disposition of the Purchased Shares within two years after the Grant
Date or within one year after the exercise date of the option. 
 (v)    In the absence of final Treasury Regulations
relating to Incentive Options, it is not certain whether Optionee may, in connection with the exercise of the option for any Purchased Shares at the time subject to forfeiture restrictions, file a protective election under Code Section 83(b)
which would limit (a) Optionee’s alternative minimum taxable income upon exercise and (b) Optionee’s ordinary income upon a disqualifying disposition to the excess of the Fair Market Value of the Purchases Shares on the date the
option is exercised over the Exercise Price paid for the Purchased Shares. Accordingly, such election if properly filed will only be allowed to the extent the final Treasury Regulations permit such a protective election. Page 2 of the attached form
for making the election should be filed with any election made in connection with the exercise of an Incentive Option. 

  
 Exhibit II Page 1 of 4

 [PAGE LEFT INTENTIONALLY BLANK] 

  
 Exhibit II Page 2 of 4

 SECTION 83(b) TAX ELECTION 

This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg.
Section 1.83-2. 
  

	(1)	 The taxpayer who performed the services is: 

 

					
	Name:	  	  
	  	
			
	Address:	  	  
	  	
			
	Taxpayer Ident. No.: 	  	  
	  	

  

	(2)	 The property with respect to which the election is being made is
                     shares of common stock of
                    , Inc., a
                     corporation. 

  

	(3)	 The property was issued on             ,
        . 

  

	(4)	 The taxable year in which the election is being made is the calendar year 200    .

  

	(5)	 The property is subject to a substantial risk of forfeiture because the taxpayer’s rights in the property
are conditioned upon the future performance of substantial services. 

  

	(6)	 The fair market value at the time of transfer (determined without regard to any restriction other than a
restriction which by its terms will never lapse) is $         per share. 

  

	(7)	 The amount paid for such property is $         per share.

  

	(8)	 A copy of this statement was furnished to
                    , Inc., for whom taxpayer rendered the services underlying the transfer of property. 

 

	(9)	 This statement is executed on             ,
200    . 

  

	
	  
 Taxpayer

 This election must be filed with the Internal Revenue Service Center with which taxpayer files his or her federal
income tax returns within 30 days after the execution date of the Stock Purchase Agreement. This filing should be made by registered or certified mail, return receipt requested. Optionee must retain two copies of the completed form for filing with
his or her federal and state tax returns for the current tax year and an additional copy for his or her records. 

  
 Exhibit II Page 3 of 4

 The property described in the above Section 83(b) election is comprised of shares of
common stock acquired pursuant to the exercise of an incentive stock option under Section 422 of the Internal Revenue Code (the “Code”). Accordingly, it is the intent of the Taxpayer to utilize this election to achieve the following
tax results: 
 1.    The purpose of this election is to have the alternative minimum taxable income attributable to
the purchased shares measured by the amount by which the fair market value of such shares at the time of their transfer to the Taxpayer exceeds the purchase price paid for the shares. In the absence of this election, such alternative minimum taxable
income would be measured by the spread between the fair market value of the purchased shares and the purchase price which exists on the various lapse dates in effect for the forfeiture restrictions applicable to such shares. The election is to be
effective to the full extent permitted under the Code. 
 2.    Section 421(a)(1) of the Code expressly excludes from
income any excess of the fair market value of the purchased shares over the amount paid for such shares. Accordingly, this election is also intended to be effective in the event there is a “disqualifying disposition” of the shares, within
the meaning of Section 421(b) of the Code, which would otherwise render the provisions of Section 83(a) of the Code applicable at that time. Consequently, the Taxpayer hereby elects to have the amount of disqualifying disposition income
measured by the excess of the fair market value of the purchased shares on the date of transfer to the Taxpayer over the amount paid for such shares. Since Section 421(a) presently applies to the shares which are the subject of this
Section 83(b) election, no taxable income is actually recognized for regular tax purposes at this time, and no income taxes are payable, by the Taxpayer as a result of this election. 

THIS PAGE 2 IS TO BE ATTACHED TO ANY SECTION 83(b) ELECTION FILED IN CONNECTION WITH THE EXERCISE OF AN INCENTIVE STOCK OPTION UNDER THE FEDERAL TAX LAWS.

  
 Exhibit II Page 4 of 4

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