Offer letter with C.Day amended 1/2/2008



 





Exhibit 10.1









December 24, 2007




Christine Day

434 West Lake Sammamish PKY SE

Bellevue, WA

98008




Dear Christine,



The Board of Directors of lululemon athletica inc. (“the Company”) and I are pleased to offer you
the position of Executive Vice President, Retail Operations. The terms and conditions of your
prospective employment are summarized below and in all events subject to the Company’s policies as
they now exist or hereafter may be amended:




	 	 	 
	Title:

	 	Executive Vice President, Retail Operations
	 
	 	 
	 
	 	 
	Reporting to:

	 	Chief Executive Officer – Bob Meers
	 
	 	 
	Location:

	 	Store Support Centre

Vancouver, British Columbia
	 
	 	 
	Start Date:

	 	January 7, 2008
	 
	 	 
	Base Salary:

	 	$365,000.00 CDN per annum
	 
	 	 
	Annual Bonus Compensation:

	 	Targeted bonus will be equal to 60% of your
annual base salary starting in FY08 (February
4, 2008). The bonus is payable upon the
achievement of corporate and individual
performance goals established by the Board of
Directors and myself. You must be actively
employed by lululemon athletica as of the
payment date to receive the bonus payment.
When performance goals are partially achieved,
the bonus will be less than 60% of the Annual
Salary. For purposes of determining any bonus
payable to you, the measurement of corporate
and personal performance will be completed by
the Board of Directors and myself and done in
good faith.
	 
	 	 
	Stock Options:

	 	250,000 options granted, at fair market value,
over a 4 year period. Effective on your first
day of active full-time employment with
lululemon athletica we will grant 125,000
options at the fair market value effective on
that date. For each of the next 2 years we
will grant 41,667 options, in the
3rd year (2011) we will grant 41,666
options. All option grants are at the fair
market value on each tranche’s grant date. All
options have a 4 year vesting schedule (25% per
year). The granting of options is conditional
to your employment with lululemon athletica.






 









 






	 	 	 
	Relocation/Housing:

	 	The Company will reimburse you for reasonable
relocation expenses incurred; the combined
total of such expenses reimbursed shall not
exceed $80,000 USD. Relocation will be
coordinated through our 3rd party
Relocation Company the MI Group. If you resign
from your position within the first year of
employment you will be required to reimburse
the company for these expenses. The amount will
be forgiven after a period of 1 year from your
start date. It is our expectation that you
will have arranged permanent accommodation in
Vancouver, BC, for yourself and your family,
within 6 months from your start date with the
company.
	 
	 	 
	Temporary Housing

	 	We recognize that for a period of time you may
be commuting from your Washington state home to
Vancouver. We are prepared to provide for the
cost of temporary accommodation in Vancouver,
BC for up to a period of six months and to a
maximum cost of $1,500 Cdn per month.
	 
	 	 
	Tax Advisement:

	 	The Company will assist with your tax filing in
the US and Canada through KPMG for the 2008 tax
filing year, to a maximum cost of $4,500 Cdn.
	 
	 	 
	Medical/Dental Benefits:

	 	As an active full-time employee, you will be
eligible for the Company’s benefit program
which includes medical and dental. The waiting
period for coverage will be waived and will be
effective on the first day of the month after
your start date. The Company reserves the
right to alter the benefits program in whole or
in part at any time.
	 
	 	 
	Status:

	 	Full-Time Employment
	 
	 	 
	Severance:

	 	For terminations without cause
which occur:

Within the first 12 months of employment: 12 months base salary

Following 12 months of employment: severance paid based on BC
employment and labour standards.
	 
	 	 
	 

	 	The severance payment is subject to you signing a
non-disparagement and non-compete agreements upon termination.
Severance payments will be made through regular payroll
installments.
	 
	 	 
	Work Authorization:

	 	We will provide legal representation for
your eligibility to work in Canada. This
offer is contingent on your ability to
obtain a valid work permit.
	 
	 	 
	Vacation:

	 	Your annual vacation entitlement is 4 weeks.






 










 






	 	 	 
	Additional Employee Benefits:
	 	 
	 
	 	 
	Staff Discount:

	 	You will be eligible to receive a 60%
discount on the purchase of all lululemon
athletica merchandise pursuant to the
Company’s policy.





In the event additional information is obtained that is contrary to the information thus far
provided to us relating to your past employment or education, the Company reserves the right to
review the continuation of your employment.



Christine, we are all extremely excited about you and the value you can bring to lululemon
athletica. I believe you will blend nicely into our senior management team and that we can
together build a world-class company. If you have any questions regarding the contents of this
letter, please do not hesitate to contact me. I’m looking forward to getting you on-board.



Please acknowledge your formal acceptance of this offer by signing both copies of this letter.
Please retain one copy for your own records and return the second copy to me.




Sincerely,




/s/ Bob Meers




Bob Meers

Chief Executive Officer




cc: Board of Directors of lululemon athletica inc.




I accept the above offer of employment as written:




/s/ Christine Day




 






Christine Day




December 28, 2007




 






Date




 









 













2285 Clark Drive, Vancouver BC Canada V5N 3G9

(604)732 6124. Fax (604) 874 6124




January 3, 2008




Christine Day

434 West Lake Sammamish Pkwy SE

Bellevue, WA 98008




Dear Christine,




     You previously entered into an offer letter (“Offer Letter”) with lululemon athletica inc.
dated as of December 24, 2007 pursuant to which certain terms and conditions of your employment
were set forth.



     Pursuant to the Offer Letter we informed you that you would be entitled to an annual bonus and
that the bonus metrics and targets associated with the annual bonus were to be determined by me and
the board of directors. However, this letter is to inform you that your bonus metrics and targets
associated with your annual bonus are to be determined by the compensation committee of the board
of directors and/or the board of directors.



     In addition, pursuant to the Offer Letter we informed you that effective on your first day of
active full-time employment you would be granted options to purchase 125,000 shares of our common
stock at an exercise price equal to the fair market value effective on that date. However, this
letter is to inform you that pursuant to our policy on granting equity awards, these options will
be granted effective as of January 18, 2008 and will have an exercise price equal to the fair
market value of our common stock on the effective grant date, defined by our Equity Incentive Plan
as the volume weighted average trading price of our common stock for the five trading days
immediately preceding the effective grant date. These options will vest in four equal annual
installments on each anniversary of your employment commencement date, January 7, 2008. Note that
the grant dates and other terms concerning the remaining option grants discussed in the Offer
Letter remain unchanged.



     Please acknowledge your formal acceptance of these changes to your Offer Letter by signing
both copies of the letter. Please retain one copy for your own records and return the second copy
to me.



Sincerely,




/s/ Bob Meers




Bob Meers

Chief Executive Officer




cc: Board of Directors of lululemon athletica inc.




I accept the above change to my Offer Letter as written:




/s/ Christine Day





Christine Day

January 3, 2008