ARTICLE 1 - INTERPRETATION

(1)    Subject to the terms and conditions of this agreement, the Company will, commencing on the Start Date, employ the Executive in the position of Executive Vice President, Creative Director, on the terms and conditions set out herein.

(2)    The Executive will report to the Chief Executive Officer.

(3)    The Executive shall perform duties and responsibilities as are normally provided by an Executive Vice President, Creative Director of a corporation in a business and of a size similar to the Company and such other duties and responsibilities as may reasonably be assigned by the Chief Executive Officer, subject always to the control and direction of the Chief Executive Officer.

(1)    The Executive will perform the Executive’s duties and responsibilities for the Company at the principal executive offices of the Company and the Executive will reside within a reasonable daily commuting distance of those offices.

(2)    The Executive acknowledges that the performance of the Executive’s duties and responsibilities will necessitate frequent travel to other places.

The Company will pay the Executive a base salary (the “Base Salary”) in the amount of USD $500,000 per annum after the Start Date, payable in accordance with the Company’s usual payroll practices and dates, in arrears by direct deposit, and subject to deductions required by law or authorized by the Executive.

The Executive is eligible to receive an annual bonus pursuant to the terms and conditions of the Bonus Plan. The Executive’s bonus target under the Bonus Plan is 75% of Base Salary.

As an employee of the Company, the Executive is eligible for annual equity awards as determined by the Compensation Committee, in its sole discretion. These potential equity awards currently consist of stock options, performance share units and restricted share units.

(1)    Some of the compensation and benefit plans and programs referred to in this agreement are governed by insurance contracts and other plan or policy documents, which will in all cases govern.

(2)    The Company reserves the right to amend, change or terminate any or all of its plans, programs, policies and benefits at any time for any reason without notice to the Executive, including bonus, commission, benefit, or compensation plans and programs.

(1)The Executive shall not, during the Executive’s employment with the Company, engage in any business, enterprise or activity that is contrary to or detracts from the due performance of the business of the Company or the Executive’s duties.

(2)The Executive shall refrain from any situation in which the Executive’s personal interest conflicts or may appear to conflict with the Executive’s duties to the Company or the interests of the Company. The Executive agrees that if there is any doubt in this respect, the Executive shall inform the CEO and obtain written authorization prior to engaging in any such situation.

During the Executive’s employment, the Executive shall communicate to the Company all knowledge, business and customer contacts and any other information that could concern or be in any way beneficial to the business of the Company. Any such information communicated to the Company is and will remain the property of the Company notwithstanding any subsequent termination of the Executive’s employment.

The Executive acknowledges that he has received a copy of the Company’s Stock Ownership Guidelines and acknowledges and agrees to the Guidelines, as currently stated and as they may be amended from time to time.

(1)    The Executive will not acquire any right, title or interest in or to the Confidential Information.

(2)    At all times during and subsequent to the termination of the Executive’s employment with the Company, the Executive:

(3)If the Executive is requested or ordered by law to disclose any Confidential Information, the Executive must promptly advise the Company of that request or order and provide to the Company all information concerning that request or order so that the Company has the opportunity to object or intervene, prior to making any disclosure of Confidential Information.

(1)If the Company terminates the Executive’s employment without Cause, the Executive is only entitled to the following compensation:

i.less any termination or severance pay paid pursuant to the Employment Standards Act (British Columbia);

ii.subject to regular and statutory withholdings;

iii.paid in equal instalments on the Company’s normal paydays beginning on the first regular payday occurring after the date of termination; and

iv.for any payment above the minimum required under the Employment Standards Act (British Columbia), contingent upon the Executive’s compliance with all surviving provisions of this agreement and the Executive’s execution of a full general release in a form acceptable to the Company releasing all claims, known or unknown, that the Executive may have against the Company arising out of or in any way related to the Executive’s employment or termination of employment with Company, and that release has become effective in accordance with its terms prior to the 60th day following the Termination Date. If the release has not become effective by this deadline, the Company shall not pay the Executive any amounts payable after (but not before) this deadline.

(1)Notwithstanding anything in this agreement to the contrary, the Company shall not pay the Executive any amount payable pursuant to this agreement which constitutes a “deferral of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “Section 409A Regulations”) unless and until the Executive has incurred a “separation from service” within the meaning of the Section 409A Regulations. Furthermore, to the extent that the Executive is a “specified employee” within the meaning of the Section 409A Regulations as of the date of the Executive’s separation from service, the Company shall not pay to the Executive any amount that constitutes a deferral of compensation which is payable on account of the Executive’s separation from service before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of the Executive’s separation from service or, if earlier, the date of the Executive’s death following that separation from service. All such amounts that would, but for this section, become payable prior to the Delayed Payment Date shall be accumulated and paid on the Delayed Payment Date.

(2)The Company intends that income provided to the Executive pursuant to this agreement is not to be subject to taxation under Section 409A of the Code. The provisions of this agreement are to be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code. However, the Company does not guarantee any particular tax effect for income provided to the Executive pursuant to this agreement. In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to the Executive, the Company is not to be responsible for the payment of any applicable taxes on compensation paid or provided to the Executive pursuant to this agreement.

(3)Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this agreement are to be subject to the following conditions: (1) the expenses eligible for reimbursement or in-kind benefits in one taxable year are not to affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (2) the reimbursement of eligible expenses or in-kind benefits are to be made promptly, subject to the Company’s applicable policies, but in no event later than the end of the year after the year in which the expense was incurred; and (3) the right to reimbursement or in-kind benefits are not to be subject to liquidation or exchange for another benefit.

(4)For purposes of Section 409A of the Code, the right to a series of installment payments under this agreement are to be treated as a right to a series of separate payments.

lululemon athletica inc.

1818 Cornwall Avenue

Vancouver, BC

V6J 1C7

Attention: Vice President of Legal

The Executive hereby acknowledges and agrees that a breach of the Executive’s obligations under this agreement would result in damages to the Company that could not be adequately compensated for by monetary

award. Accordingly, in the event of any such breach by the Executive, in addition to all other remedies available to the Company at law or in equity, the Company is entitled as a matter of right to apply to a court of competent jurisdiction for such relief by way of restraining order, injunction, decree or otherwise, as may be appropriate to ensure compliance with the provisions of this agreement.