Document:

First Amendment to Second Amended and Restated Loan and Security Agreement

 Exhibit 10.2 
 FIRST AMENDMENT 
 TO 

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 THIS FIRST AMENDMENT to Second Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into as of December 5, 2012, by and between OXFORD FINANCE LLC
(in its individual capacity as Collateral Agent, “Collateral Agent”), the Lenders party to the Loan Agreement, and CADENCE PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”). 

RECITALS 
 A. Collateral Agent, Lenders and Borrower have entered into that certain Second Amended and Restated Loan and Security Agreement dated as of December 22, 2011 (as the same may from time to
time be amended, modified, supplemented or restated, collectively, the “Loan Agreement”). 
 B. Lenders
have extended credit to Borrower for the purposes permitted in the Loan Agreement. 
 C. Borrower has requested that
Collateral Agent and Lenders amend the Loan Agreement to make certain revisions to the Loan Agreement as more fully set forth herein. 
 D. Collateral Agent and Lenders have agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance
upon the representations and warranties set forth below. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2. Amendments to Loan Agreement. 
 2.1 Section 2.2(b) (Interest Rate). Section 2.2(b)(i) of the Loan Agreement hereby is amended and restated in its entirety to read as follows: 

“(i) Growth Capital Advances. As of the Effective Date and subject to Section 2.2(b)(ii), the outstanding
principal amount of the Growth Capital Advances shall accrue interest at a per annum rate equal to the Basic Rate, which interest shall be payable monthly in accordance with Section 2.2(a). Interest shall accrue on the Growth Capital Advances
for the day on which the Growth Capital Advance is made, and shall accrue on the Growth Capital Advance, or any portion thereof, for the day on which the Growth Capital Advance or such portion is paid. Interest is computed on the basis of a 360 day
year of twelve 30-day months.” 
 2.2 Section 6.12 (Financial Covenant). A new Section 6.12 of the Loan
Agreement is hereby added immediately following Section 6.11 of the Loan Agreement, such new Section 6.12 to read as follows: 
 “6.12 Financial Covenant. Borrower shall maintain, at all times, reported in accordance with Section 6.2, in each case, for the immediately preceding calendar quarter: 

 

	 	(a)	Minimum Revenue. Consolidated product revenue of at least Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) in the aggregate per calendar
quarter.” 

 2.3 Section 8.2 (Covenant Default). Section 8.2(a) of the Loan Agreement
hereby is amended and restated in its entirety to read as follows: 
 “(a) If Borrower fails to perform any
obligation under Sections 6.2, 6.6, 6.7 or 6.12 or violates any of the covenants contained in Section 7 of this Agreement, or” 
 2.4 Section 12.10 (Confidentiality). Section 12.10 of the Loan Agreement hereby is amended and restated in its entirety to read as follows: 

“12.10 Confidentiality. In handling any confidential information of Borrower, the Lenders and Collateral Agent shall exercise
the same degree of care that it exercises for their own proprietary information, but disclosure of information may be made: (a) subject to the terms and conditions of this Agreement, to the Lenders’ and Collateral Agent’s Subsidiaries
or Affiliates, or in connection with a Lender’s own financing or securitization transactions and upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction; (b) to
prospective transferees (other than those identified in (a) above) or purchasers of any interest in the Credit Extensions (provided, however, the Lenders and Collateral Agent shall, except upon the occurrence and during the continuance of an
Event of Default, obtain such prospective transferee’s or purchaser’s agreement to be bound by the terms of this provision or to confidentiality and non-disclosure terms which are no less restrictive than those contained herein);
(c) as required by law, regulation, subpoena, or other order; (d) to Lenders’ or Collateral Agent’s regulators or as otherwise required in connection with an examination or audit; (e) as Collateral Agent reasonably considers
appropriate in exercising remedies under the Loan Documents; and (f) to third party service providers of the Lenders and/or Collateral Agent so long as such service providers have executed a confidentiality agreement with the Lenders and
Collateral Agent with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in the Lenders’ and/or Collateral Agent’s possession when
disclosed to the Lenders and/or Collateral Agent, or becomes part of the public domain after disclosure to the Lenders and/or Collateral Agent; or (ii) is disclosed to the Lenders and/or Collateral Agent by a third party, if the Lenders and/or
Collateral Agent does not know that the third party is prohibited from disclosing the information. Subject to the limitations set forth in the first sentence of this Section 12.10, Collateral Agent and the Lenders may also use confidential
information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. The
agreements provided under this Section 12.10 supersede all prior agreements, understanding, representations, warranties, and negotiations between the parties about the subject matter of this Section 12.10.” 

2.5 Section 13.1 (Definitions). The following terms and their respective definitions hereby are added to or amended in
Section 13.1 of the Loan Agreement as follows: 
 “Basic Rate” is, (x) prior to the
First Amendment Date, the fixed per annum rate of interest (based on a year of 360 days) equal to ten and ninety-nine one hundredths of one percent (10.99%); (y) from and after the First Amendment Date, the fixed per annum rate of interest
(based on a year of 360 days) equal to ten and nine thousand five hundred forty-five ten thousandths of one percent (10.9545%). 

  
 2 

 “First Amendment Date” means December 5, 2012.

 “Growth Capital Amortization Date” means January 1, 2014. 

“Growth Capital Interest Only Period” means the period of time commencing on the Additional Growth
Capital Funding Date and continuing through and including December 31, 2013. 
 “Growth Capital
Maturity Date” is the earliest of (i) June 1, 2016, or (ii) the occurrence of an Event of Default and acceleration of the Obligations as a consequence thereof. 

“Prepayment Fee” shall be, for each Growth Capital Advance, an amount equal to: (i) if the
prepayment date is on or before the two year anniversary after the First Amendment Date, three percent (3.0%) of the outstanding principal balance as of the prepayment date, and (ii) if the prepayment date is more than two years after the
First Amendment Date, two percent (2.0%) of the outstanding principal balance as of the prepayment date. 

“Warrants” means, collectively, (i) the GECC Warrant, the Oxford Warrant and the SVB Warrant,
(ii) all other warrants to purchase stock previously issued by Borrower to any Lender or any Lender’s affiliate, and (iii) the warrants to purchase stock issued by Borrower to Oxford, GECC and SVB (or any of their affiliates, as
applicable), respectively, on the First Amendment Date. 
 2.6 Exhibit C (Compliance Certificate) to the Loan Agreement
hereby is replaced in its entirety with Exhibit C attached hereto. 
 3. Limitation of Amendments. 

3.1 The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Collateral Agent or any
Lender may now have or may have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall
be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall
remain in full force and effect. 
 4. Representations and Warranties. To induce Collateral Agent and Lenders to
enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders as follows: 
 4.1
Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such
representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b), no Event of Default has occurred and is continuing; 

4.2 Borrower has the power and authority to execute and deliver this Amendment, issue the Warrants to be issued on the First
Amendment Date, and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3 The
organizational documents of Borrower delivered to Collateral Agent and Lenders on the First Amendment Date are true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

  
 3 

 4.4 The execution and delivery by Borrower of this Amendment and the Warrants to be
issued on the First Amendment Date, and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, and such Warrants, have been duly authorized; 

4.5 The execution and delivery by Borrower of this Amendment and the Warrants to be issued on the First Amendment Date, and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, and such Warrants, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

 4.6 The execution and delivery by Borrower of this Amendment and the Warrants to be issued on the First Amendment
Date, and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, and such Warrants, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 
 4.7 This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 

5. Reaffirmation of Existing Growth Capital Advances. As of the First Amendment Date, under the Loan Agreement (prior to giving
effect to this Amendment), there are existing loans outstanding in the aggregate principal amount of Thirty Million Dollars and 00/100 ($30,000,000.00) (collectively, the “Existing Growth Capital Advances”), and accrued but unpaid
interest thereon in an aggregate amount equal to Thirty-Six Thousand Six Hundred Thirty-Three Dollars and 34/100 ($36,633.34). For the avoidance of doubt, (a) Oxford’s portion of the Existing Growth Capital Advances is Fifteen Million
Dollars and 00/100 ($15,000,000.00) and Oxford’s portion of the accrued interest through and including the date immediately prior to the First Amendment Date is Eighteen Thousand Three Hundred Sixteen Dollars and 67/100 ($18,316.67),
(b) SVB’s portion of the Existing Growth Capital Advances is Five Million Four Hundred Ninety-Nine Thousand Dollars and 00/100 ($5,499,000.00) and SVB’s portion of accrued interest through and including the date immediately prior to
the First Amendment Date is Six Thousand Seven Hundred Fourteen Dollars and 89/100 ($6,714.89) and (c) GECC’s portion of the Existing Growth Capital Advances is Nine Million Five Hundred One Thousand Dollars and 00/100 ($9,501,000.00) and
GECC’s portion of accrued interest through and including the date immediately prior to the First Amendment Date is Eleven Thousand Six Hundred One Dollars and 78/100 ($11,601.78). 

6. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be
deemed to constitute one and the same instrument. 
 7. Effectiveness. This Amendment shall be deemed effective upon
(a) the due execution and delivery to Collateral Agent and Lenders of this Amendment by each party hereto; (b) the due execution and delivery to (i) Collateral Agent and Lenders of an updated Corporate Closing Certificate and
(ii) each Lender of a Warrant (or, in the case of Oxford, Warrants) to Purchase Stock, in each case, duly executed by Borrower, in form and content acceptable to the applicable Lender; (c) Collateral Agent’s receipt of the Closing
Letter, in the form attached hereto as Exhibit B-2, duly executed by Borrower; and (d) Borrower’s payment of (x) the accrued portion of the Growth Capital Final Payment due under the Loan Agreement (as in effect prior to the
date of this Amendment), through December 5, 2012, in the amount of Seven Hundred Fifty-Two Thousand Three Hundred Four Dollars and 03/100 ($752,304.03) (for the avoidance of doubt, collection of the accrued portion of the Growth Capital Final
Payment under this clause (x) shall not be deducted from the amount of the full Growth Capital Final Payment which will become due pursuant to Section 2.2(c) of the Loan Agreement (whether on the Growth Capital Maturity Date, as modified
by this Amendment, or upon any prepayment or acceleration of the Growth Capital Advances)); and (y) all Lender Expenses incurred through the date of this Amendment. 
 [Balance of Page Intentionally Left Blank] 

  
 4 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

									
	COLLATERAL AGENT:	  		  	BORROWER:
			
	 OXFORD FINANCE LLC
	  		  	CADENCE PHARMACEUTICALS, INC.
					
	 By:
	 	 /s/ Mark Davis
	  		  	By:	  	 /s/ William R. LaRue

	 Name:
	 	 Mark Davis
	  		  	Name:	  	 William R. LaRue

	 Title:
	 	 Vice President — Finance, Secretary & Treasurer
	  		  	Title:	  	 SVP & Chief Financial Officer

				
	 LENDERS:
	  		  		  	
				
	 OXFORD FINANCE FUNDING TRUST 2012-1
	  		  		  	
				
	 By: Oxford Finance LLC, as servicer
	  		  		  	
					
	 By:
	 	 /s/ Mark Davis
	  		  		  	
	 Name:
	 	 Mark Davis
	  		  		  	
	 Title:
	 	 Vice President — Finance, Secretary & Treasurer
	  		  		  	
				
	 SILICON VALLEY BANK
	  		  		  	
					
	 By:
	 	 /s/ Kevin Wallace
	  		  		  	
	 Name:
	 	 Kevin Wallace
	  		  		  	
	 Title:
	 	 Relationship Manager
	  		  		  	
				
	 GENERAL ELECTRIC CAPITAL CORPORATION
	  		  		  	
					
	 By:
	 	 /s/ Peter Gibson
	  		  		  	
	 Name:
	 	 Peter Gibson
	  		  		  	
	 Title:
	 	 Duly Authorized Signatory
	  		  		  	

 EXHIBIT B-2 

Form of Closing Letter – for execution concurrently with First Amendment 

[see attached] 

 CLOSING LETTER 
 The undersigned, being the duly elected and acting
                                of CADENCE PHARMACEUTICALS, INC., a Delaware corporation,
with offices located at 12481 High Bluff Drive, Suite 200, San Diego, California 92130 (“Borrower”), does hereby certify to OXFORD FINANCE LLC, (“Oxford”), as collateral agent (the “Collateral
Agent”), and each Lender party to the Loan Agreement, in connection with that certain Second Amended and Restated Loan and Security Agreement dated as of December 22, 2011, by and among Borrower, Collateral Agent and the Lenders (as
amended from time to time, including by that certain First Amendment to Second Amended and Restated Loan and Security Agreement (the “First Amendment”) dated as of December 5, 2012, collectively, the “Loan
Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that: 
  

	 	1.	The representations and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan Documents are true, correct and complete in all
material respects on the date hereof; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further
that those representations and warranties expressly referring to a specific date shall be true, correct and complete in all material respects as of such date. 

 

	 	2.	No event or condition has occurred that would constitute an Event of Default under the Loan Agreement or any other Loan Document. 

 

	 	3.	Borrower is in compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement. 

 

	 	4.	All conditions referred to in Section 7 of the First Amendment to be made on or about the date hereof have been satisfied. 

 

	 	5.	No Material Adverse Change has occurred. 

  

	 	6.	The undersigned is a Responsible Officer. 

  

	 	7.	The Growth Capital Advance shall hereafter amortize in accordance with the Amortization Table attached hereto. 

 

	 	8.	Borrower shall remit (via wire transfer, pursuant to the wire instructions below) to each Lender, respectively, the following amounts on the First Amendment Date:

  

					
	 	  	Amount:	 
	 Oxford:
	  			
	 Balance of Final Payment earned through First Amendment Date under Loan Agreement:
	  	$	                        	  
		  	  
	  
	 
	 Legal Fees and Costs (VLP Law Group LLP):
	  	$	*	  
		  	  
	  
	 
	 TOTAL PAYMENT DUE TO OXFORD FROM BORROWER:
	  	$	 	  
		  	  
	  
	 

  

	*	Legal fees and costs are through the First Amendment Date. Legal fees and costs, payable after the First Amendment Date, to be invoiced and paid thereafter.

 9. 
  

					
	 	  	Amount:	 
	 SVB:
	  			
	 Balance of Final Payment earned through First Amendment Date under Loan Agreement:
	  	$	                    	  
		  	  
	  
	 
	 TOTAL PAYMENT DUE TO SVB FROM BORROWER:
	  	$	 	  
		  	  
	  
	 

 10. 
  

					
	 	  	Amount:	 
	 GECC:
	  			
	 Balance of Final Payment earned through First Amendment Date under Loan Agreement:
	  	$	 	  
		  	  
	  
	 
	 Legal Fees and Costs (McGuireWoods LLP):
	  	$	                    	  
		  	  
	  
	 
	 TOTAL PAYMENT DUE TO GECC FROM BORROWER:
	  	$	 	  
		  	  
	  
	 

 [Balance of Page Intentionally Left Blank] 

			
	 Dated as of the date first set forth above.
	 	
		
	 BORROWER:
	 	
		
	 CADENCE PHARMACEUTICALS, INC.
	 	
		
	
By                       
                                         
                                         
                  
	 	
	
Name:                       
                                         
                                         
           
	 	
	
Title:                       
                                         
                                         
             
	 	
		
	 COLLATERAL AGENT
	 	
		
	 OXFORD FINANCE LLC
	 	
		
	
By                       
                                         
                                         
                  
	 	
	
Name:                       
                                         
                                         
           
	 	
	
Title:                       
                                         
                                         
             
	 	
		
	 LENDERS:
	 	
		
	 OXFORD FINANCE FUNDING TRUST 2012-1
	 	
		
	 By: Oxford Finance LLC, as servicer
	 	
		
	
By:                       
                                         
                                         
                
	 	
	
Name:                       
                                         
                                         
           
	 	
	
Title:                       
                                         
                                         
             
	 	
		
	 SILICON VALLEY BANK
	 	
		
	
By:                       
                                         
                                         
                
	 	
	
Name:                       
                                         
                                         
           
	 	
	
Title:                       
                                         
                                         
             
	 	
		
	 GENERAL ELECTRIC CAPITAL CORPORATION
	 	
		
	
By:                       
                                         
                                         
                
	 	
	
Name:                       
                                         
                                         
           
	 	
	
Title:                       
                                         
                                         
             
	 	

 EXHIBIT C 

COMPLIANCE CERTIFICATE 
  

			
	TO:	 	OXFORD FINANCE LLC, as Collateral Agent, and each Lender party to the Loan Agreement
	FROM:	 	CADENCE PHARMACEUTICALS, INC.

 The undersigned authorized officer of CADENCE PHARMACEUTICALS, INC. hereby certifies that in accordance with the terms and
conditions of the Second Amended and Restated Loan and Security Agreement between Borrower, Collateral Agent and Lenders (the “Agreement”), 
 (i) Borrower is in complete compliance for the period ending                     with all required
covenants except as noted below and 
 (ii) All representations and warranties of Borrower stated in the Agreement are true and correct as
of the date hereof. Attached are the required documents, if any, supporting our certification(s). The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied
from one period to the next except as explained in an accompanying letter or footnotes. 
 Please indicate compliance status since the last
Compliance Certificate by circling Yes, No, or N/A under “Complies” column. 
  

															
	 	  	 Reporting Covenant
	  	 Requirement
	  	 	 	  	Complies
	 1)
	  	Financial statements	  	Quarterly within 45 days	  				  	Yes	  	No	  	N/A
	 2)
	  	Annual (CPA Audited) statements	  	Within 180 days after Fiscal Year End	  				  	Yes	  	No	  	N/A
	 3)
	  	Annual Financial Projections/Budget	  	FYE within 45 days	  				  	Yes	  	No	  	N/A
	 4)
	  	10-K and 10-Q Filings	  	Within 5 days after filing with SEC	  				  	Yes	  	No	  	N/A
	 5)
	  	Total amount of Borrower’s cash and cash equivalents	  		  	 	$                    	  	  		  		  	
	 6)
	  	Total amount of Borrower’s cash and cash equivalents maintained with SVB as specified in Agreement.	  	50%	  	 	$                    	  	  	Yes	  	No	  	N/A

 Deposit and Securities Accounts (Please list all accounts; attach separate sheet if
additional space needed) 
  

													
	 	  	 Bank
	  	 Account Number
	  	New Account?	  	Acct Control
Agmt in place?
	 1)
	  		  		  	Yes	  	No	  	Yes	  	No
	 2)
	  		  		  	Yes	  	No	  	Yes	  	No
	 3)
	  		  		  	Yes	  	No	  	Yes	  	No
	 4)
	  		  		  	Yes	  	No	  	Yes	  	No
	 5)
	  		  		  	Yes	  	No	  	Yes	  	No
	 6)
	  		  		  	Yes	  	No	  	Yes	  	No

  

															
	 	  	 Financial Covenant
	  	 Requirement
	  	Actual	 	  	Complies
	 1)
	  	Minimum Product Revenue	  	$12,500,000.00 per quarter	  	 	$                    	  	  	Yes	  	No	  	N/A

 Other Matters 

 

					
	 Have there been any changes in management?
	  	Yes	    	No
	 Have there been any transfers/sales/disposals/retirement of Collateral or IP?
	  	Yes	    	No
	 Have there been any new or pending claims or causes of action against Borrower?
	  	Yes	    	No

 Exceptions 
  

			
	Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.” Attach separate sheet if additional space
needed.)	 	  
  

 
  

  

											
		  		  		  	LENDERS USE ONLY
	  
 SIGNATURE
	  	  
 DATE
	  		  		 		 	 
		  		  		  	Received by:           	 	Verified by:         
		  		  		  		 		 	 
		  		  		  		 		 	 
	  
 TITLE
	  		  		  	Date:                         	 	Date:                  
   
		  		  		  		 		 	 
		  		  		  	Compliance Status	 	Yes	 	No
		  		  		  	 	 	 	 	 

 CORPORATE CLOSING CERTIFICATE 

 

					
	BORROWER:	  	CADENCE PHARMACEUTICALS, INC.	  	DATE: December     , 2012
			
	LENDER:	  	OXFORD FINANCE LLC, as Collateral Agent, and Lenders	  	

 I hereby certify as follows, as of the date set forth above: 

1. I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set forth below. 

2. Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of Delaware. 

3. Attached hereto as Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate
of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws. Neither such Certificate of Incorporation nor such
Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of Incorporation and such Bylaws remain in full force and effect as of the date hereof. 
 4. The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized
corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Collateral Agent and Lenders may rely on them until Collateral Agent and
Lenders receive written notice of revocation from Borrower. 

 RESOLVED, that any one of the following officers
or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	 

Name
	  	 

Title
	  	 

Signature
	  	Authorized to
Add or Remove
Signatories
	  
	  	  
	  	  
	  	 ̈
	  
	  	  
	  	  
	  	 ̈
	  
	  	  
	  	  
	  	 ̈
	  
	  	  
	  	  
	  	 ̈

 RESOLVED FURTHER, that any one of the persons designated above
with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 
 RESOLVED FURTHER, that such individuals may, on behalf of Borrower: 
 Borrow Money. Borrow money from Lender. 
 Execute Loan Documents.
Execute any loan documents Collateral Agent or any Lender requires. 
 Grant Security. Grant Collateral Agent a security
interest in any of Borrower’s assets. 
 Negotiate Items. Negotiate or discount all drafts, trade acceptances,
promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 

Issue Warrants. Issue warrants for Borrower’s capital stock.  

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements
(including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions. 
 RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 

5. The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names. 

 

	
	
By:                       
                                         
                                

	
Name:                       
                                         
                          

	
Title:                       
                                         
                            

  

	***	If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized
signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

 I, the                                 of
Borrower, hereby certify as to paragraphs 1 through 5 above, as [print title] of the date set forth above. 
  

	
	
By:                       
                                         
                                

	
Name:                       
                                         
                          

	
Title:Exhibit 10.1

 Exhibit 10.1 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 UNDER THE 

LULULEMON ATHLETICA INC. 2007 EQUITY INCENTIVE PLAN 

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is made between lululemon athletica inc.
(the “Company”) and             (the “Optionee”). 
 WHEREAS, the Company maintains the lululemon athletica inc. 2007 Equity Incentive Plan (the “Plan”) for the benefit of the employees of the Company and its Affiliates; and 

WHEREAS, the Plan permits the award of Non-Qualified Stock Options to purchase Shares, subject to the terms of the Plan;
and 
 WHEREAS, in connection with the Company’s employment of the Optionee, the Company desires to grant
the Optionee Non-Qualified Stock Options under the Plan to compensate the Optionee and to further align the Optionee’s financial interests with those of the Company’s stockholders. 

NOW, THEREFORE, in consideration of these premises and the agreements set forth herein and intending to be legally bound
hereby, the parties agree as follows: 
 1. Award of Option. This Agreement evidences the grant to the
Optionee of an option (the “Option”) to purchase             (            ) Shares (the “Option
Shares”). The Option is subject to the terms set forth herein, and in all respects is subject to the terms and provisions of the Plan applicable to Non-Qualified Stock Options, which terms and provisions are incorporated herein by this
reference. Except as otherwise specified herein or unless the context herein requires otherwise, the terms defined in the Plan will have the same meanings herein. 

2. Nature of the Option. The Option is intended to be a nonstatutory stock option and is not intended to be an
Incentive Stock Option within the meaning of Section 422 of the Internal Revenue Code (the “Code”), or to otherwise qualify for any special tax benefits to the Optionee. 

3. Date of Grant; Term of Option. The Option was approved by the Company’s Board of Directors to be effective
on             (the “Effective Date”) and may not be exercised later than the date that is seven (7) years after the Effective Date, subject to earlier termination in
accordance with the Plan and this Agreement. 
 4. Option Exercise Price. The per share exercise price of
the Option is $            (the “Exercise Price”), which amount is intended to be not less than the Fair Market Value per Share on the Effective Date. 

5. Exercise of Option. The Option will become exercisable only in accordance with the terms and provisions of the
Plan and this Agreement, as follows: 

 (a) Right to Exercise. The Option will become exercisable with
respect to 25% of the Option Shares on each of the first, second, third and fourth anniversaries of the Effective Date, provided in each case that the Optionee remains continuously in Service with the Company or an Affiliate through the applicable
anniversary. For the purposes of this Agreement, “Service” means an Optionee’s employment or service with the Company or an Affiliate, whether in the capacity of an employee of the Company or an Affiliate, or as a Director or a
Consultant. An Optionee’s Service shall not be deemed to have terminated merely because of a change in the capacity in which the Optionee renders Service to the Company or an Affiliate or a change in the corporation for which the Optionee
renders such Service, provided that there is no interruption or termination of the Optionee’s Service. Furthermore, an Optionee’s Service shall not be deemed to have terminated if the Optionee takes any military leave, sick leave, or other
bona fide leave of absence approved by the Company; provided, however, that if any such leave exceeds ninety (90) days, on the one hundred eighty-first (181st) day following the commencement of such leave any Incentive Stock Option held by
the Optionee shall cease to be treated as an Incentive Stock Option and instead shall be treated thereafter as a Non-Qualified Stock Option unless the Optionee’s right to return to Service is guaranteed by statute or contract. The
Optionee’s Service shall be deemed to have terminated either upon an actual termination of Service (notwithstanding any statutory, contractual or common law period of notice of termination, or compensation in lieu of such notice, to which the
Optionee may be entitled) or upon the corporation for which the Optionee performs Service ceasing to be an Affiliate (if other than the Company). For greater certainty, the Optionee’s Service shall be deemed to have terminated on the date which
any notice of termination of employment provided to the Optionee is stated to be effective (or in the case of an alleged constructive dismissal, the date on which the alleged constructive dismissal is alleged to have occurred), and not during or as
of the end of any period following such date during which the Optionee is in receipt of, or entitled to receive, statutory, contractual or common law notice of termination or any compensation in lieu of such notice. Subject to the foregoing, the
Board, in its discretion, shall determine whether the Optionee’s Service has terminated and the effective date of such termination. 
 (b) Method of Exercise. The Optionee may exercise the Option by providing written notice to the Company stating the election to exercise the Option. Such written notice shall be signed by the
Optionee and shall be delivered in person or by certified mail to the Secretary of the Company or such other person as may be designated by the Company, and shall be accompanied by payment of the Exercise Price and an amount equal to any required
tax withholding. Payment of the Exercise Price may be made in cash. In addition, this Option may be exercised through means of a “net settlement,” whereby no Exercise Price will be due and where the number of Shares issued upon such
exercise will be equal to: (A) the product of (i) the number of Option Shares as to which the Option is then being exercised, and (ii) the difference between (a) the then current Fair Market Value per Share and (b) the
Exercise Price, divided by (B) the then current Fair Market Value per Share. A number of Shares equal to the difference between the number of Option Shares as to which the Option is then being exercised and the number of Shares actually issued
to the Optionee upon such net settlement will be deemed to have been retained by the Company in satisfaction of the Exercise Price. 
 (c) Share Legends. Any certificate evidencing an Option Share will contain such legends as may be required or appropriate under any applicable stockholder agreement or stock purchase agreement, in
addition to any other legend that may be required or appropriate under applicable law, the Plan or otherwise. 

  
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 (d) Partial Exercise. The Option may be exercised in whole or in
part; provided, however, that any exercise may apply only with respect to a whole number of Option Shares. 
 (e) Restrictions on Exercise. The Option may not be exercised, and any purported exercise will be void, if the issuance of the Option Shares upon such exercise would constitute a violation of any
applicable federal or state securities laws, exchange listing requirements or other laws or regulations. 

6. Effect of Termination of Service on Exercisability of Option. Except as otherwise provided below, any portion
of the Option that is not exercisable upon termination of Service will expire immediately and automatically upon such termination and any portion of an Option that is exercisable upon termination of Service will expire on the date it ceases to be
exercisable in accordance with this Section 6. 
 (a) Termination for Cause. If the
Optionee’s Service is terminated for Cause: (i) any Option held by the Optionee will immediately and automatically expire as of the date of such termination, and (ii) any Shares for which the Company has not yet delivered share
certificates will be immediately and automatically forfeited and the Company will refund to the Participant the Option exercise price paid for such Shares, if any. 

(b) Termination by Reason of Retirement. In the event of the termination of the Optionee’s Service by reason
of Retirement, the Option will continue to vest and become exercisable for twelve months following the date of Retirement in accordance with the terms and provisions of the Plan and this Agreement as if the Optionee had continued in Service for a
period of twelve months following the date of Retirement. If the Optionee’s Service terminates by reason of Retirement, the Option may thereafter be exercised by the Optionee, to the extent it was exercisable at the time of such termination or
becomes exercisable pursuant to the terms of this Section 6, for a period ending three years following the date of such termination (or, if sooner, on the last day of the stated term of the Option as provided in Section 3 of this
Agreement). For purposes of this Agreement, “Retirement” means an Optionee’s termination of Service (other than a termination for Cause) after the earlier of (i) the Optionee’s completion of twenty five
(25) years of such Service or (ii) the date on which the Optionee reaches at least the age 55 and has completed at least ten (10) years of such Service. 

(c) Termination by Reason of Death. If the Optionee’s Service terminates by reason of death, the Option may
thereafter be exercised in full with respect to 100% of the Option Shares by the legal representative of the estate or by the legatee of the Optionee under the will of the Optionee, as applicable for a period ending twelve months following the date
of death (or, if sooner, on the last day of the stated term of the Option as provided in Section 3 of this Agreement). 
 (d) Termination by Reason of Disability. If the Optionee’s Service terminates by reason of Disability, the Option may thereafter be exercised by the Optionee or his or her personal
representative, to the extent it was exercisable at the time of termination, for a period ending 12 Months following the date of termination (or, if sooner, on the last day of the stated term of such Option as provided in Section 3 of this
Agreement). 

  
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 (e) Other Termination. If the Optionee’s Service terminates for
any reason other than death, Disability, Retirement or Cause, any Option held by such Optionee may thereafter be exercised by the Optionee, to the extent it was exercisable at the time of such termination, for a period ending 90 days following the
date of such termination (or, if sooner, on the last day of the stated term of the Option as provided in Section 3 of this Agreement). 
 7. Investment Representations. The Optionee represents and warrants to the Company that: 
 (a) unless the Option Shares have been registered under the Securities Act of 1933, as amended (the “Securities Act”), he or she is acquiring the Option (and upon exercise of the
Option, will be acquiring the Option Shares) for investment for his or her own account, not as a nominee or agent, and not with a view to, or for resale in connection with, any distribution thereof; 

(b) unless the Option Shares have been registered under the Securities Act, he or she has a preexisting personal
or business relationship with the Company or one of its directors, officers or controlling persons and by reason of his or her business or financial experience, has, and could be reasonably assumed to have, the capacity to protect his or her
interests in connection with the acquisition of this Option and the Option Shares; 
 (c) he or she is an
employee, executive officer, director or consultant of the Company or, unless resident in a Province of Canada other than British Columbia, an Affiliated Company, has the benefit of an exemption from the prospectus and registration requirements of
applicable Canadian provincial securities laws; and 
 (d) the Optionee has voluntarily received this
Option. 
 In addition, as a further condition to the exercise of the Option, the Company may require the Optionee to make any
representation or warranty to the Company as may be required by or advisable under any applicable law or regulation. 
 8. Market Stand-Off. 
 (a) The Optionee hereby
agrees that, in connection with any registration of securities under the Securities Act by the Company, the Optionee (and the Optionee’s permitted transferees, if any) shall not sell or otherwise transfer (including through short-sales,
hedging, or similar transactions) any Option Shares during the period that the Board specifies (a “Holdback”); provided, however, that such period shall not exceed one hundred eighty (180) days (or other such period that the
underwriters reasonably require) following the effective date of the applicable registration statement filed under the Securities Act (the “Market Stand-Off Period”). Until the end of such Market Stand-Off Period, the Company may
impose, with respect to any Shares held by the Optionee or his or her permitted transferee, stop-transfer instructions consistent with the foregoing restrictions. 

  
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 (b) Optionee also agrees to be bound by any restriction agreed to by
holders of not less than a majority of the then outstanding Shares (giving effect to the pro forma conversion of all outstanding preferred shares and other convertible securities and the pro forma exercise of all stock options, warrants and other
rights, to the extent then exercisable). 
 (c) In addition, if any managing underwriter or book runner
of any such offering or registration (the “Underwriter”) requests, the Optionee will execute and deliver to the Underwriter such documents, agreements, and instruments that the Underwriter shall reasonably require to enable the
Underwriter to obtain the benefit of the Holdback during the Market Stand-Off Period. In connection with the foregoing, the Optionee hereby appoints the Company’s Chief Executive Officer as the Optionee’s attorney-in-fact, with full power
of substitution, to execute and deliver all documents, agreements and instruments to be executed and delivered by the Optionee, and to take all actions to be taken by the Optionee in each case in connection with effecting any Holdback. 

9. Non-Transferability of Option. The Option may not be sold, pledged, assigned, hypothecated, gifted, transferred
or disposed of in any manner either voluntarily or involuntarily by operation of law, other than by will or by the laws of descent or distribution. During the Optionee’s lifetime, the Option is exercisable only by the Optionee. Subject to the
foregoing and the terms of the Plan, the terms of the Option will be binding upon the executors, administrators and heirs of the Optionee. 
 10. Tax Consequences. The Optionee has reviewed with the Optionee’s own tax advisors the federal, state, local and foreign tax consequences of the Option. The Optionee is relying solely on
such advisors and not on any statements or representations of the Company or any of its agents or affiliates. The Optionee understands that he or she (and not the Company) will be responsible for his or her own tax liabilities arising in connection
with this award or the transactions contemplated by this Agreement. 
 11. Modification and Amendment.
The Option granted hereunder is intended to be exempt from the application of Section 409A of the Code. Notwithstanding the foregoing, the Optionee hereby agrees that the Company may, without the consent of the Optionee, modify or amend the
terms of the Option in any manner it deems reasonably necessary in its discretion, to cause this Option to be exempt from the application of Section 409A of the Code. For avoidance of doubt, however, the Company makes no representation or
warranty regarding the tax treatment of this Option or the transactions contemplated by this Agreement and assumes no obligation to take any action to cause this Option or such transactions to be subject to any particular tax treatment. 

12. No Continuation of Service. Neither the Plan nor this Option will confer upon the Optionee any right to
continue in the Service of the Company or any of its Affiliates, or limit in any respect the right of the Company or its Affiliates to discharge the Optionee at any time, with or without Cause and with or without notice. 

13. The Plan. The Optionee has received a copy of the Plan (a copy of which is attached hereto), has read the Plan
and is familiar with its terms, and hereby accepts the Option subject to the terms and provisions of the Plan, as amended from time to time. Pursuant to the 

  
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Plan, the Board is authorized to interpret the Plan and to adopt rules and regulations not inconsistent with the Plan as it deems appropriate. The Optionee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Board with respect to questions arising under the Plan or this Award Agreement. 
 14. Entire Agreement. This Agreement, together with the Plan, and other exhibits attached thereto or hereto, represents the entire agreement between the parties and supersedes any and all prior or
contemporaneous discussions, understandings or any agreements of any nature, written or otherwise, relating to the subject matter hereof. 
 15. Governing Law. This Agreement will be construed in accordance with the laws of the State of Delaware, without regard to the application of the principles of conflicts of laws. 

16. Execution. This Agreement may be executed, including execution by facsimile signature, in one or more
counterparts, each of which will be deemed an original, and all of which together shall be deemed to be one and the same instrument. 
 [This space intentionally left blank; signature page follows.] 

  
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 IN WITNESS WHEREOF, this Agreement has been executed by the parties on the
    day of             . 
  

			
	 lululemon athletica inc.

	  

		
	 By:
	 	  

	 Its:
	 	  

	
	 [OPTIONEE]

	  

	 Signature

	  

	 Address

	  

 [Signature Page to Non-Qualified Stock Option Agreement] 

  
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