EX-10.1









Exhibit 10.1




2009 EXECUTIVE BONUS PLAN (THE “PLAN”)

LULULEMON ATHLETICA INC.





	PLAN TERM 	 	Fiscal year beginning February 2, 2009
	 
	PLAN EFFECTIVE DATE 	 	February 2, 2009
	 
	PLAN YEAR 	 	lululemon’s 2009 fiscal year





PURPOSE





	 	•	 	The purpose of the Plan is to increase stockholder value by providing an incentive for
the achievement of goals that support the strategic plan of lululemon athletica inc. (the
“Company”).





ELIGIBILITY





	 	•	 	The Plan is applicable for positions of executive vice president and above, and other
senior officers of the Company as designated by the Compensation Committee of the Board of
Directors (the “Participants”).
	 
	 	•	 	The CEO has the authority to recommend participants. The Compensation Committee has the
sole authority to designate Participants.
	 
	 	•	 	Eligibility will cease upon termination of the Participant’s employment, withdrawal of
designation by the Compensation Committee, transfer to a position compensated otherwise
than as provided in the Plan, termination of the Plan by the Company, or if the Participant
engages, directly or indirectly, in any activity which is competitive with any Company
activity.
	 
	 	•	 	If a Participant changes from an eligible position to an ineligible position during the
Plan Year, eligibility to participate will be at the discretion of the Compensation
Committee.





TARGET BONUS





	 	•	 	The target bonus shall be the amount that would be paid to the Participant under the
Plan if 100% of Financial Performance Goals and 100% of Individual Performance Goals were
met (the “Target Bonus”).
	 
	 	•	 	The Target Bonus for each Participant shall be established by the Compensation Committee
no later than ninety (90) days after the beginning of the Plan Year.
	 
	 	•	 	The Target Bonus may be established as a percentage of base cash salary, or according to
another method established by the Compensation Committee. The amount of the Target Bonus
earned by the Participant shall be based on the achievement of Financial Performance Goals
and, if applicable, Individual Performance Goals.





OBJECTIVE FINANCIAL PERFORMANCE GOALS





	 	•	 	The Compensation Committee shall select the Financial Performance Goals for each
Participant no later than ninety (90) days after the beginning of the Plan Year and while
the outcome is substantially uncertain.
	 
	 	•	 	The Compensation Committee shall select the amount of the Target Bonus for each
Participant under the Plan no later than ninety (90) days after the beginning of the Plan
Year.
	 
	 	•	 	The Compensation Committee may establish any special adjustments that will be applied in
calculating whether the Financial Performance Goals have been met to factor out
extraordinary items no later than ninety (90) days after the beginning of the Plan Year and
while the outcome is substantially uncertain.
	 
	 	•	 	The Company’s overall financial performance is evaluated against four critical financial measures:






	 	•	 	diluted earnings per share
	 
	 	•	 	company revenue
	 
	 	•	 	gross margin
	 
	 	•	 	inventory turns




 









 












	 	•	 	In addition, no bonus will be paid under the Plan unless a specific level of positive
cash flow is achieved (the “Plan Trigger”). The Compensation Committee will
establish the Plan Trigger no later than ninety (90) days after the beginning of the Plan
Year.
	 
	 	•	 	The maximum performance level for each Financial Performance Goal is 120%.
	 
	 	•	 	90% of the Target Bonus will be based on achievement of the Financial Performance Goals.





INDIVIDUAL PERFORMANCE GOALS





	 	•	 	The portion of the Target Bonus not determined by achievement of the Financial
Performance Goals shall be determined by the Participant’s achievement of Individual
Performance Goals.
	 
	 	•	 	Each Participant with Individual Performance Goals shall submit such Individual
Performance Goals for approval by the Compensation Committee within ninety (90) days after
the beginning of the Plan Year.
	 
	 	•	 	The maximum performance level for each Individual Performance Goal is 120%.





BONUS PAYOUT AND ELIGIBILITY





	 	•	 	The bonus payout for each Participant under the Plan is based on the achievement of the
Financial Performance Goals and the Individual Performance Goals (the “Bonus
Payout”). A Bonus Payout under the Plan is earned as of the end of the Plan Year and
will be paid according to the Plan, if the Participant remains a Company employee through
the date on which Bonus Payouts are made to Participants under the Plan, unless employment
is terminated prior to the end of the Plan Year due to death or disability.
	 
	 	•	 	The Compensation Committee, in its discretion, may determine that the Bonus Payout for
any Participant will be less than (but not greater than) the amount earned by such
Participant under the Plan.





BONUS PAYOUT CALCULATION





	 	•	 	Within ninety (90) days after the beginning of the Plan Year and while the outcome is
substantially uncertain, the Compensation Committee shall review and approve for each
Participant: the Target Bonus; the Financial Performance Goals; the Individual Performance
Goals; and the relative weighting of the goals for the Plan Year. Those metrics will be
used to calculate the Bonus Payout for each Participant. The Compensation Committee shall
review the Bonus Payout calculation for each Participant.





BONUS PAYOUT PRORATIONS





	 	•	 	For any Company employee who meets eligibility criteria and becomes a Participant after
the start of the Plan Year but before November 1st of that fiscal year, or whose
employment with the Company is terminated prior to the end of the Plan Year because of
disability or death, the Compensation Committee (1) shall prorate the Bonus Payout related
to the Financial Performance Goals, and (2) in its discretion, may prorate the Bonus Payout
related to Individual Performance Goals. If the Participant is on a leave of absence for a
portion of the Plan Year, the Compensation Committee in its discretion may reduce the
Participant’s Bonus Payout on a pro-rata basis.
	 
	 	•	 	The proration is based on the number of full months during which the Participant
participated in the Plan during the Plan Year. Credit is given for a full month if the
Participant is eligible for 15 or more calendar days during that month.
	 
	 	•	 	If a Participant changes positions within the Company during the Plan Year, the
Compensation Committee in its discretion may prorate the Participant’s Bonus Payout by the
number of months in each position.





ADMINISTRATION




COMPENSATION COMMITTEE RESPONSIBILITIES:




	 	•	 	Approve the Plan design, Financial Performance Goals, and Individual Performance Goals
for each Participant. Determine and certify the achievement of the Financial Performance
Goals and Individual Performance Goals. Approve the Bonus Payout calculation and Bonus
Payout for each Participant.




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	 	•	 	In the event of a dispute regarding the Plan, the Participant may seek resolution
through the CEO and the Compensation Committee. All determinations by the Compensation
Committee shall be final and conclusive.





BONUS PAYOUT ADMINISTRATION





	 	•	 	The Bonus Payout will be made as soon as administratively feasible and is expected to be
within approximately seventy-five (75) days after the end of the Plan Year. No amount is
due and owing to any Participant before the Compensation Committee has determined the Bonus
Payout.
	 
	 	•	 	The Company will withhold amounts applicable to federal, state and local taxes, domestic
or foreign, required by law or regulation.





TERMINATION OF EMPLOYMENT





	 	•	 	The Plan is not a contract of employment for any period of time. Any Participant may
resign or be terminated at any time for any or no reason. Employment and termination of
employment are governed by the Company’s policies and any applicable employment agreement
and not by the Plan.





REVISIONS TO THE PLAN





	 	•	 	The Plan will be reviewed by the CEO, CFO and the Compensation Committee on a periodic
basis for revisions. The Company reserves the right at its discretion with or without
notice, to review, change, amend or cancel the Plan, at any time.






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