Document:

Amended and Restated Declaration of Trust

 

Exhibit 10.7

AMENDED AND RESTATED

DECLARATION OF TRUST

Forfeitable Exchangeable Shares

July 26th, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE 1 DEFINITIONS	 	 	1	 
	 
	 	1.1	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2 PURPOSE OF TRUST DECLARATION	 	 	4	 
	 
	 	2.1	 	Continuance of Trust	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3 PROVISIONS APPLICABLE TO FORFEITABLE SHARES	 	 	4	 
	 
	 	3.1	 	Forfeitable Shares	 	 	4	 
	 
	 	3.2	 	Trustee Agreements Related to Forfeitable Shares	 	 	4	 
	 
	 	3.3	 	Voting Rights	 	 	5	 
	 
	 	3.4	 	Forfeiture of Shares	 	 	5	 
	 
	 	3.5	 	Ceasing to be Forfeitable Shares	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4 CONCERNING THE TRUSTEE	 	 	5	 
	 
	 	4.1	 	Powers and Duties of the Trustee	 	 	5	 
	 
	 	4.2	 	Income Tax Returns and Reports	 	 	6	 
	 
	 	4.3	 	Action of Beneficial Holders	 	 	7	 
	 
	 	4.4	 	Reliance Upon Declarations	 	 	7	 
	 
	 	4.5	 	Trustee Not Required to Give Security	 	 	7	 
	 
	 	4.6	 	Conflicting Claims	 	 	7	 
	 
	 	4.7	 	Acceptance of Trust	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5 LIMITATION OF LIABILITY	 	 	8	 
	 
	 	5.1	 	Limitation of Liability	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6 CHANGE OF TRUSTEE	 	 	8	 
	 
	 	6.1	 	Resignation	 	 	8	 
	 
	 	6.2	 	Successor Trustee	 	 	9	 
	 
	 	6.3	 	Declaration of Trustee	 	 	9	 
	 
	 	6.4	 	Notice of Successor Trustee	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7 AMENDMENTS AND SUPPLEMENTAL TRUST DECLARATIONS	 	 	9	 
	 
	 	7.1	 	Amendments, Modifications, etc.	 	 	9	 
	 
	 	7.2	 	Ministerial Amendments	 	 	9	 
	 
	 	7.3	 	Meeting to Consider Amendments	 	 	10	 
	 
	 	7.4	 	Execution of Supplemental Trust Declarations	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8 TERMINATION	 	 	10	 
	 
	 	8.1	 	Term	 	 	10	 
	 
	 	8.2	 	Survival of Trust Declaration	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9 GENERAL	 	 	11	 
	 
	 	9.1	 	Notices	 	 	11	 
	 
	 	9.2	 	Interpretation	 	 	11	 
	 
	 	9.3	 	Severability	 	 	12	 
	 
	 	9.4	 	Counterparts	 	 	12	 

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	9.5	 	Governing Law	 	 	12	 
	 
	 	9.6	 	Enforcement	 	 	12	 
	 
	 	9.7	 	No Waiver	 	 	12	 
	 
	 	9.8	 	Expenses	 	 	13	 
	 
	 	9.9	 	Further Assurances	 	 	13	 
	APPENDIX A FORFEITABLE SHARE PROVISIONS	 	 	 	 

 

 

AMENDED AND RESTATED DECLARATION OF TRUST

Forfeitable Exchangeable Shares

THIS DECLARATION OF TRUST is made as of the 26th day of July, 2007, by Dennis Wilson (the
“Trustee”).

WHEREAS pursuant to a stock option plan (the “Option Plan”) of LIPO Investments (Canada) Inc.(“LIPO
Canada”) dated December 1, 2005, Dennis Wilson (the “Trustee”) was appointed as trustee of the Plan
to hold legal title to the shares of LIPO Canada issued on the exercise of options granted under
the Option Plan;

AND WHEREAS pursuant to the provisions of the Option Plan certain options granted under the Option
Plan were issued and designated as “forfeitable shares” and held in trust by the Trustee for the
benefit of the holders thereof subject to certain repurchase and other rights;

AND WHEREAS in connection with an arrangement agreement (the “Arrangement Agreement”) dated as of
April 26, 2007 among Lululemon Corp. (“Lululemon”), Lululemon Callco ULC (“Callco”), Lulu Canadian
Holding, Inc. (“Exchangeco”), LIPO Investments (USA), Inc. and LIPO Canada, all shares of LIPO
Canada, including the “forfeitable shares” were exchanged with Exchangeco for exchangeable shares
(“Exchangeable Shares”) of Exchangeco, and none of the Trustee nor the former holders of the
options granted under the Option Plan are now shareholders or option holders of LIPO Canada, so
that it is impractical to continue to record the terms of the trust in the Option Plan;

AND WHEREAS pursuant to the Arrangement Agreement, the Trustee has agreed to enter into a
declaration of trust substantially in the form of this Trust Declaration, to amend and restate the
trust which was created under the Option Plan, to record the terms pursuant to which the Trustee
will hold Exchangeable Shares issued in respect of “forfeitable shares”;

NOW THEREFORE this Declaration records the terms on which the Trustee will hold the Trust Estate
(as defined below) in trust for the benefit of the Beneficial Holders on the terms hereof:

ARTICLE 1

DEFINITIONS

1.1 Definitions

In this Trust Declaration, the following terms shall have the following meanings:

“Arrangement” means the arrangement under part 9, division 5 of the BCA on the terms and subject to
the conditions set out in the Plan of Arrangement, subject to any amendments or variations thereto
made in accordance with Article 6 of the Arrangement Agreement or Article 6 of the Plan of
Arrangement or made at the direction of the Court in the Final Order.

“BCA” means the Business Corporations Act (British Columbia), as amended.

“Beneficial Holders” has the meaning assigned in Section 3.1.

 

 

“Board of Directors” means the board of directors of Exchangeco.

“Business Day” means any day on which commercial banks are generally open for business in
Vancouver, British Columbia and New York, New York, other than a Saturday, a Sunday or a day
observed as a holiday in Vancouver, British Columbia under the laws of the Province of British
Columbia or the federal laws of Canada or in New York, New York under the laws of the State of New
York or the federal laws of the United States of America.

“Court” means the Supreme Court of British Columbia.

“Declaration of Trust” means this Declaration of Trust as it may be amended or supplemented from
time to time.

“Effective Date” means the date following the grant of the Final Order on which the parties to the
Arrangement Agreement agree the Arrangement becomes effective.

“Effective Time” means the time on the Effective Date at which the Arrangement becomes effective.

“Eligible Person” means any individual regularly employed on a full-time or part-time basis by
Lululemon or any company in which Lululemon is a direct or indirect shareholder or with which
Lululemon does not act at arm’s length or other persons who perform management or consulting
services for Lululemon or any company in which Lululemon is a direct or indirect shareholder or
with which Lululemon does not act at arm’s length in any such case on an ongoing basis.

“Exchange Trust Agreement” means the Agreement made between Lululemon, Callco, the Company and a
third party trustee in connection with the Plan of Arrangement, substantially in the form and
content of Exhibit C annexed to the Reorganization Agreement with such changes thereto as the
parties to the Arrangement Agreement, acting reasonably, may agree, a copy of which is available at
the registered office of the Company.

“Exchangeable Share Provisions” means the rights, privileges, restrictions and conditions attaching
to the Exchangeable Shares, which rights, privileges, restrictions and conditions shall be
substantially as set out in Appendix 1 of the Plan of Arrangement.

“Exchangeable Shares” means the non-voting exchangeable shares in the capital of Exchangeco, having
substantially the rights, privileges, restrictions and conditions set out in the Exchangeable Share
Provisions.

“Final Order” means the order of the Court approving the Plan of Arrangement as such order may be
amended at any time prior to the Effective Date or, if appealed, then, unless such appeal is
withdrawn or denied, as affirmed.

“Forfeitable Shares” means those Exchangeable Shares issued pursuant to the Plan of Arrangement in
exchange for LIPO Canada Shares which were designated as “forfeitable shares” pursuant to the LIPO
Option Plan, until such shares cease to be forfeitable in accordance with the conditions set out in
Appendix A.

 

 

“Government Entity” means any federal, provincial, state, local or foreign government or any court
of competent jurisdiction, administrative agency or commission or other governmental authority or
instrumentality, domestic or foreign.

“Insolvency Event” means the institution by Exchangeco of any proceeding to be adjudicated a
bankrupt or insolvent or to be wound up, or the consent of Exchangeco to the institution of
bankruptcy, insolvency or winding-up proceedings against it, or the filing of a petition, answer or
consent seeking dissolution or winding-up under any bankruptcy, insolvency or analogous laws,
including without limitation the Companies Creditors’ Arrangement Act (Canada) and the Bankruptcy
and Insolvency Act (Canada), and the failure by Exchangeco to contest in good faith any such
proceedings commenced in respect of Exchangeco within 30 days of becoming aware thereof, or the
consent by Exchangeco to the filing of any such petition or to the appointment of a receiver, or
the making by Exchangeco of a general assignment for the benefit of creditors, or the admission in
writing by Exchangeco of its inability to pay its debts generally as they become due, or Exchangeco
not being permitted, pursuant to solvency requirements of applicable law, to redeem any Retracted
Shares pursuant to Section 6.6 of the Exchangeable Share Provisions.

“Lock-Up Agreement” means the lock-up agreement entered into by each of the Beneficial Holders
pursuant to the terms of the Reorganization Agreement.

“Lululemon Common Stock” means the common stock of Lululemon, par value US$0.01 per share and any
other securities into which such shares may be changed.

“person” means any individual, a general or limited partnership, a corporation, a trust, a joint
venture, an unincorporated organization, a limited liability entity, any other entity and any
Government Entity.

“Plan of Arrangement” means the plan of arrangement substantially in the form and content of
Exhibit B to the Arrangement Agreement and any amendments or variations thereto made in accordance
with Article 6 of the Arrangement Agreement or Article 6 of the Plan of Arrangement or made at the
direction of the Court.

“Reorganization Agreement” means the Agreement and Plan of Reorganization dated April 26, 2007 by
and among Lululemon, Exchangeco, LIPO Canada, LIPO USA and certain other parties;

“Subsidiary” of any person means any corporation or other organization whether incorporated or
unincorporated of which at least a majority of the securities or interests having by the terms
thereof ordinary voting power to elect at least a majority of the board of directors or others
performing similar functions with respect to such corporation or other organization is directly or
indirectly owned or controlled (i) by such person, (ii) by any one or more of its subsidiaries, or
(iii) by such person and one or more of its subsidiaries; provided, however, that no person that is
not directly or indirectly wholly-owned by any other person shall be a subsidiary of such other
person unless such other person controls, or has the right, power or ability to control, that
person.

“Trust” means the trust created by this Trust Declaration.

“Trust Estate” means the Forfeitable Shares, any other securities and any money or other property
which may be held by the Trustee from time to time pursuant to this Trust Declaration.

 

 

“Trustee” means Dennis Wilson and, subject to the provisions of Article 6, includes any successor
trustee.

ARTICLE 2

PURPOSE OF TRUST DECLARATION

2.1 Continuance of Trust

Effective as at the time of the amendment of the Option Plan pursuant to the Plan of Arrangement,
the trust established by the Option Plan is hereby continued for the benefit of the Beneficial
Holders from time to time, and the Trustee agrees to hold the Forfeitable Shares and the Trust
Estate as trustee for the Beneficial Holders on the terms set out in this Trust Declaration.

ARTICLE 3

PROVISIONS APPLICABLE TO FORFEITABLE SHARES

3.1 Forfeitable Shares

Upon completion of the Plan of Arrangement, the Forfeitable Shares shall be issued to and
registered in the name of the Trustee, to be held in trust for the respective beneficial holders
(the “Beneficial Holders”) thereof pursuant to the terms of this Article 3. Shares which are
designated as Forfeitable Shares will be entitled to become non-forfeitable in accordance with the
conditions set out in Appendix A.

3.2 Trustee Agreements Related to Forfeitable Shares

The Trustee acknowledges and agrees that, other than as set forth in this Trust Declaration:

	 	(a)	 	the Trustee will hold legal title to the Forfeitable Shares as nominee, agent
and trustee for the benefit and account of the respective Beneficial Holders thereof as
principal and beneficial owner subject to and in accordance with this Article 3 and
subject to the terms and conditions of any transfer, deed, shareholder agreement or
other instrument, document or encumbrance pertaining to the Forfeitable Shares;
	 
	 	(b)	 	subject to forfeiture pursuant to Section 3.4, any benefit, interest, profit or
advantage arising out of or accruing from such Forfeitable Shares is and will continue
to be a benefit, interest, profit or advantage of the Beneficial Holder and if received
by the Trustee will be received and held by the Trustee for the use, benefit and
advantage of the Beneficial Holder and the Trustee will account to the Beneficial
Holder for any money or other consideration paid to or to the order of the Trustee in
connection with the Trust Estate;
	 
	 	(c)	 	the Trustee may at his discretion, whether on his own initiative or upon the
direction of such Beneficial Holder, act as the agent of the Beneficial Holder, as
principal, in respect of any matter relating to such Forfeitable Shares or the
performance or observance of any contract or Agreement relating to the Forfeitable
Shares; and

 

 

	 	(d)	 	the Trustee will have the full right and power to execute and deliver, under
seal and otherwise, any shareholder agreement or other instrument or document
pertaining to the Forfeitable Shares without delivering proof to any person (including,
without limitation, any other party to any such instrument or document) of its
authority to do so and any person may act in reliance on any such instrument or
document and for all purposes any such instrument or document will be binding on the
Beneficial Holder.

3.3 Voting Rights

Notwithstanding anything to the contrary contained herein, the Trustee shall have sole power in his
absolute discretion to exercise the voting rights with respect to all Forfeitable Shares
outstanding, from time to time, for his own benefit, until such shares cease to be Forfeitable
Shares.

3.4 Forfeiture of Shares

	 	(a)	 	Upon the date on which a holder of Forfeitable Shares ceases to be an Eligible
Person then the Trustee shall repurchase all Forfeitable Shares which it holds on
behalf of such holder including any benefit, interest, profit or advantage which may
have arisen or may in the future arise out of or accrue from such Forfeitable Shares,
for cash in an amount equal to the price paid for the shares of LIPO Canada upon
issuance thereof which were exchanged for such Forfeitable Shares pursuant to the Plan
of Arrangement.
	 
	 	(b)	 	Immediately following the payment of the purchase price referred to in Section
3.4(a) the Trustee shall distribute such funds to the Beneficial Holder and the Trustee
shall be the sole registered and beneficial owner of such Forfeitable Shares and all
such benefits, interest, profit or advantage.

3.5 Ceasing to be Forfeitable Shares

Upon the later of (a) an Exchangeable Share ceasing to be a Forfeitable Share and (b) the expiry of
the Lock-Up Agreement to which the Beneficial Holder is a party, the provisions of this Article 3
shall cease to apply to such Share and legal title will pass to the Beneficial Holder thereof who
shall thenceforth be the sole legal and beneficial owner thereof. Promptly thereafter the Trustee
shall direct Exchangeco’s transfer agent to reregister such share in the name of such Beneficial
Holder, direct Exchangeco to deliver or cause to be delivered such re-registered share certificate
to the Beneficial Holder promptly after receipt thereof from the transfer agent and pay over to the
Beneficial Holder all benefits, interest, profit or advantage which have been received by the
Trustee in respect of such Forfeitable Shares.

ARTICLE 4

CONCERNING THE TRUSTEE

4.1 Powers and Duties of the Trustee

In addition to the rights set out in Article 3, but subject to his duties and obligations
hereunder, the Trustee will have in his capacity as Trustee of the Trust, the unfettered discretion
at any time and from time to time to administer the Trust Estate in whatever manner the Trustee may
determine, as if

 

 

he were the sole owner of the Trust Estate, including, without limitation, the power, duty and
authority to:

	 	(a)	 	hold title to the Trust Estate;
	 
	 	(b)	 	invest any moneys forming, from time to time, a part of the Trust Estate as
provided in this Trust Declaration;
	 
	 	(c)	 	accelerate the vesting provisions attached to some or all of the Forfeitable
Shares;
	 
	 	(d)	 	consent to the transfer of a beneficial interest in the Forfeitable Shares to
an Eligible Person;
	 
	 	(e)	 	exchange the Forfeitable Shares or any part of the Trust Estate for other
property; and
	 
	 	(f)	 	take such other actions and doing such other things as are specifically
provided in this Trust Declaration.

In the exercise of such rights, powers, duties and authorities the Trustee shall have (and is
granted) such incidental and additional rights, powers, duties and authority not in conflict with
any of the provisions of this Trust Declaration as the Trustee, acting in good faith and in the
reasonable exercise of its discretion, may deem necessary, appropriate or desirable to effect the
purpose of the Trust. Any exercise of such discretionary rights, powers, duties and authorities by
the Trustee shall be final, conclusive and binding upon all persons.

The Trustee in exercising its rights, powers, duties and authorities hereunder shall act honestly
and in good faith and with a view to the best interests of the Beneficial Holders and shall
exercise the care, diligence and skill that a reasonable person would exercise in comparable
circumstances.

The Trustee shall not be bound to give notice or do or take any act, action or proceeding by virtue
of the powers conferred on it hereby unless and until he shall be specifically required to do so
under the terms hereof; nor shall the Trustee be required to take any notice of, or to do, or to
take any act, action or proceeding as a result of any default or breach of any provision hereunder,
unless and until notified in writing of such default or breach, which notices shall distinctly
specify the default or breach desired to be brought to the attention of the Trustee, and in the
absence of such notice the Trustee may for all purposes of this Trust Declaration conclusively
assume that no default or breach has been made in the observance or performance of any of the
representations, warranties, covenants, agreements or conditions contained herein.

4.2 Income Tax Returns and Reports

The Trustee shall, to the extent necessary, prepare and file on behalf of the Trust appropriate
United States and Canadian income tax returns and any other returns or reports as may be required
by applicable law or pursuant to the rules and regulations of any securities exchange or other
trading system through which the Exchangeable Shares are traded. In connection therewith, the
Trustee may obtain the advice and assistance of such experts or advisors as the Trustee considers
necessary or advisable (who may be experts or advisors to Lululemon or Exchangeco).

 

 

4.3 Action of Beneficial Holders

No Beneficial Holder shall have the right to institute any action, suit or proceeding or to
exercise any other remedy authorized by this Trust Declaration for the purpose of enforcing any of
its rights or for the execution of any trust or power hereunder unless the Beneficial Holder has
requested the Trustee to take or institute such action, suit or proceeding and the Trustee shall
have failed to act within a reasonable time thereafter. In such case, but not otherwise, the
Beneficial Holder shall be entitled to take proceedings in any court of competent jurisdiction such
as the Trustee might have taken; it being understood and intended that no one or more Beneficial
Holders shall have any right in any manner whatsoever to affect, disturb or prejudice the rights
hereby created by any such action, or to enforce any right hereunder, except subject to the
conditions and in the manner herein provided, and that all powers and trusts hereunder shall be
exercised and all proceedings at law shall be instituted, had and maintained by the Trustee, except
only as herein provided, and in any event for the equal benefit of all Beneficial Holders.

4.4 Reliance Upon Declarations

The Trustee shall not be considered to be in contravention of any of his rights, powers, duties and
authorities hereunder if, when required, it acts and relies in good faith upon statutory
declarations, certificates, opinions or reports furnished pursuant to the provisions hereof or
required by the Trustee to be furnished to it in the exercise of its rights, powers, duties and
authorities hereunder if such statutory declarations, certificates, opinions or reports comply with
the provisions of this Trust Declaration.

4.5 Trustee Not Required to Give Security

The Trustee shall not be required to give any bond or security in respect of the execution of the
trusts, rights, duties, powers and authorities of this Trust Declaration.

4.6 Conflicting Claims

If conflicting claims or demands are made or asserted with respect to any interest of any
Beneficial Holder in any Exchangeable Shares, including any disagreement between the heirs,
representatives, successors or assigns succeeding to all or any part of the interest of any
Beneficial Holder in any Exchangeable Shares, resulting in conflicting claims or demands being made
in connection with such interest, then the Trustee shall be entitled, at its sole discretion, to
refuse to recognize or to comply with any such claims or demands. In so refusing, the Trustee may
elect not to exercise any rights hereunder subject to such conflicting claims or demands and, in so
doing, the Trustee shall not be or become liable to any person on account of such election or its
failure or refusal to comply with any such conflicting claims or demands. The Trustee shall be
entitled to continue to refrain from acting and to refuse to act until:

	 	(a)	 	the rights of all adverse claimants with respect to the rights subject to such
conflicting claims or demands have been adjudicated by a final judgment of a court of
competent jurisdiction; or
	 
	 	(b)	 	all differences with respect to the other rights subject to such conflicting
claims or demands have been conclusively settled by a valid written agreement binding
on all

 

 

	 	 	 	such adverse claimants, and the Trustee shall have been furnished with an executed
copy of such agreement certified to be in full force and effect.

If the Trustee elects to recognize any claim or comply with any demand made by any such adverse
claimant, it may in its discretion require such claimant to furnish such surety bond or other
security satisfactory to the Trustee as it shall deem appropriate to fully indemnify it as between
all conflicting claims or demands.

4.7 Acceptance of Trust

The Trustee hereby accepts the Trust created and provided for by and in this Trust Declaration and
agrees to perform the same upon the terms and conditions herein set forth and to hold all rights,
privileges and benefits conferred hereby and by law in trust for the various persons who shall from
time to time be Beneficial Holders, subject to all the terms and conditions herein set forth.

ARTICLE 5

LIMITATION OF LIABILITY

5.1 Limitation of Liability

The Trustee shall not be held liable for any loss or damage relating to any matter regarding the
Trust or the performance of its duties and obligations hereunder, including, without limitation,
any loss which may occur by reason of depreciation of the value of any part of the Trust Estate or
any loss incurred on any investment of funds pursuant to this Trust Declaration, except to the
extent that such loss is attributable to the fraud, gross negligence, recklessness, wilful
misconduct or bad faith on the part of the Trustee.

The Trustee will not be liable to the Trust or to any Beneficial Holder for the acts, omissions,
receipts, neglects or defaults of any person, firm or corporation employed or engaged by it as
permitted hereunder, or for joining in any receipt or act of conformity, or for any loss, damage or
expense caused to the Trust through the insufficiency or deficiency of any security in or upon
which any of the monies of or belonging to the Trust shall be laid out or invested, or for any loss
or damage arising from the bankruptcy, insolvency or tortious act of any person, firm or
corporation with whom or which the Trust Estate or any part of it shall be lodged or deposited, or
for any loss occasioned by error in judgment or oversight on the part of the Trustee, or for any
other loss, damage or misfortune which may happen in the execution by the Trustee of his duties
hereunder, except to the extent that the Trustee does not meet the standard of care set out in
Section 4.1 and except as set out in this Article 5.

ARTICLE 6

CHANGE OF TRUSTEE

6.1 Resignation

The Trustee, or any Trustee hereafter appointed, may at any time resign by appointing a successor
trustee provided that such resignation shall not take effect until the date of the appointment of a
successor trustee and the acceptance of such appointment by the successor trustee.

 

 

6.2 Successor Trustee

Any successor trustee appointed as provided under this Trust Declaration shall execute an
instrument accepting such appointment. Thereupon the resignation or removal of the predecessor
trustee shall become effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, duties and obligations of its
predecessor under this Trust Declaration, with the like effect as if originally named as trustee in
this Trust Declaration.

6.3 Declaration of Trustee

If the Trustee dies during the term of this Trust before he has resigned and appointed a successor
trustee, the persons who are the executors and trustees of the last will and testament of the
Trustee will have the right to appoint a successor trustee of the Trust.

6.4 Notice of Successor Trustee

Upon acceptance of appointment by a successor trustee as provided herein, the successor trustee
shall cause to be mailed notice of the succession of such trustee hereunder to each Beneficial
Holder.

ARTICLE 7

AMENDMENTS AND SUPPLEMENTAL TRUST DECLARATIONS

7.1 Amendments, Modifications, etc.

This Trust Declaration may not be amended or modified except by an Agreement in writing executed by
the Trustee and approved by the Beneficial Holders in accordance with Section 10.2 of the
Exchangeable Share Provisions.

7.2 Ministerial Amendments

Notwithstanding the provisions of Section 7.1, the Trustee may in writing, at any time and from
time to time, without the approval of the Beneficial Holders, amend or modify this Trust
Declaration for the purposes of:

	 	(a)	 	adding to the covenants of any or all parties hereto for the protection of the
Beneficial Holders hereunder if the Trustee is of the good faith opinion that such
additions will not be prejudicial to the rights or interests of the Beneficial Holders;
	 
	 	(b)	 	making such amendments or modifications not inconsistent with this Trust
Declaration as may be necessary or desirable with respect to matters or questions
which, in the good faith opinion of the Trustee, having in mind the best interests of
the Beneficial Holders it may be expedient to make, provided that the Trustee, acting
on the advice of counsel, is of the opinion that such amendments and modifications will
not be prejudicial to the interests of the Beneficial Holders; or
	 
	 	(c)	 	making such changes or corrections which, on the advice of counsel to the
Trustee, are required for the purpose of curing or correcting any ambiguity or defect
or inconsistent provision or clerical omission or mistake or manifest error, provided
that

 

 

	 	 	 	the Trustee, acting on the advice of counsel is of the opinion that such changes or
corrections will not be prejudicial to the rights and interests of the Beneficial
Holders.

7.3 Meeting to Consider Amendments

The Trustee will request Exchangeco to call a meeting or meetings of the Beneficial Holders for the
purpose of considering any proposed amendment or modification requiring approval pursuant hereto.
Any such meeting or meetings shall be called and held in accordance with the articles of
Exchangeco, the Exchangeable Share Provisions and all applicable laws.

7.4 Execution of Supplemental Trust Declarations

No amendment to or modification or waiver of any of the provisions of this Trust Declaration
otherwise permitted hereunder shall be effective unless made in writing and signed by the Trustee.
From time to time, the Trustee may, subject to the provisions of this Trust Declaration, execute
and deliver, trust agreements or other instruments supplemental hereto, which thereafter shall form
part hereof, for any one or more of the following purposes:

	 	(a)	 	making any additions to, deletions from or alterations of the provisions of
this Trust Declaration, which, in the opinion of the Trustee, will not be prejudicial
to the interests of the Beneficial Holders or are, in the opinion of counsel to the
Trustee, necessary or advisable in order to incorporate, reflect or comply with any
legislation the provisions of which apply to Lululemon, Exchangeco, the Trustee or this
Trust Declaration; and
	 
	 	(b)	 	for any other purposes not inconsistent with the provisions of this Trust
Declaration, including without limitation, to make or evidence any amendment or
modification to this Trust Declaration as contemplated hereby, provided that, in the
opinion of the Trustee, the rights of the Trustee and Beneficial Holders will not be
prejudiced thereby.

ARTICLE 8

TERMINATION

8.1 Term

The Trust created by this Trust Declaration shall continue until the earliest to occur of the
following events:

	 	(a)	 	no outstanding Forfeitable Shares are held by the Trustee;
	 
	 	(b)	 	the Trustee elects in writing to terminate the Trust and such termination is
approved by the Beneficial Holders in accordance with section 10.2 of the Exchangeable
Share Provisions; and

 

 

	 	(c)	 	21 years after the death of the last survivor of the descendants of His Majesty
King George VI of Canada and the United Kingdom of Great Britain and Northern Ireland
living on the date of the creation of the Trust.

8.2 Survival of Trust Declaration

This Trust Declaration shall survive any termination of the Trust and shall continue until there
are no Forfeitable Shares outstanding held by the Trustee; provided, however, that the provisions
of Article 5 shall survive any such termination of this Trust Declaration.

ARTICLE 9

GENERAL

9.1 Notices

All notices, requests, claims, demands, waivers and other communications under this Trust
Declaration shall be in writing and shall be deemed given (a) five Business Days following sending
by registered or certified mail, postage prepaid, (b) when sent, if sent by facsimile, provided
that the facsimile transmission is promptly confirmed by telephone, (c) when delivered, if
delivered personally to the intended recipient and (d) one Business Day following sending by
overnight delivery via a courier service that is nationally recognized in the U.S. and Canada and,
in each case, addressed to a party at the following address for such party.

If to the Trustee, to:

	 	 	Dennis Wilson

#2 2108 West 4th Avenue

Vancouver, BC V6K 1N6

If to the Beneficial Holders to the last address in the central securities register for Exchangeco.
or to such other address(es) as shall be furnished in writing by any such party to the other party
hereto in accordance with the provisions of this Section 9.1.

9.2 Interpretation

When a reference is made in this Trust Declaration to an Article or a section, such reference shall
be to an Article or a section of this Trust Declaration unless otherwise indicated. The table of
contents and headings contained in this Trust Declaration are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Trust Declaration. Whenever the words
‘include’, ‘includes’ or ‘including’ are used in this Trust Declaration, they shall be deemed to be
followed by the words ‘without limitation’. The terms ‘this Trust Declaration’, ‘hereof’, ‘herein’
and ‘hereunder’ and similar expressions refer to this Trust Declaration and not to any particular
Article, section or other portion hereof and include any agreement or instrument supplementary or
ancillary hereto. Words importing the singular number only shall include the plural and vice
versa. Words importing any gender shall include all genders. If any date on which any action is
required to be taken under this Trust Declaration is not a Business Day, such action shall be
required to be taken on the next succeeding Business Day.

 

 

9.3 Severability

If any term or other provision of this Trust Declaration is invalid, illegal or incapable of being
enforced by any rule or law, or public policy, all other conditions and provisions of this Trust
Declaration shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Trust
Declaration so as to effect the original intent of the parties as closely as possible to the end
that the transactions contemplated hereby are fulfilled to the extent possible.

9.4 Counterparts

This Trust Declaration may be executed in one or more counterparts, all of which shall be
considered one and the same Trust Declaration and shall become effective when one or more
counterparts have been signed by each of the parties hereto and delivered to the other parties.

9.5 Governing Law

This Trust Declaration shall be governed by, and construed in accordance with, the laws of the
Province of British Columbia and the laws of Canada applicable therein, regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws thereof.

9.6 Enforcement

The parties hereto agree that irreparable damage would occur in the event that any of the
provisions of this Trust Declaration were not performed in accordance with their specific terms or
were otherwise breached. It is accordingly agreed that the parties hereto shall be entitled to an
injunction or injunctions to prevent breaches of any provision of this Trust Declaration and to
enforce specifically the terms and provisions of this Trust Declaration in any court of competent
jurisdiction in the Province of British Columbia, this being in addition to any other remedy to
which they are entitled at law or in equity. In addition, each of the parties hereto (a) consents
to submit itself to the personal jurisdiction of any court of competent jurisdiction in the
Province of British Columbia, in the event any dispute arises out of this Trust Declaration, (b)
agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other
request for leave from any such court, (c) agrees that it will not bring any action relating to
this Trust Declaration in any court other than any court of competent jurisdiction in the Province
of British Columbia, and (d) waives any right to trial by jury with respect to any action related
to or arising out of this Trust Declaration.

9.7 No Waiver

No provisions of this Trust Declaration shall be deemed waived by any party, unless such waiver is
in writing and signed by the authorized representatives of the person against whom it is sought to
enforce such waiver.

 

 

9.8 Expenses

Except as expressly set forth in this Trust Declaration, all costs and expenses and third party
fees, paid or incurred in connection with this Trust Declaration shall be paid in accordance with
section 7.6 of the Arrangement Agreement.

9.9 Further Assurances

From time to time, as and when requested by any party, each party shall execute and deliver, or
cause to be executed and delivered, all such documents and instruments and shall take, or cause to
be taken, all such further or other actions, as such other party may reasonably deem necessary or
desirable to consummate the transactions contemplated by this Trust Declaration.

IN WITNESS WHEREOF the Trustee has caused this Trust Declaration to be duly executed under seal as
of the date first above written.

	 	 	 	 	 
	By :

	 	/s/ Dennis Wilson
 

DENNIS WILSON, in his capacity as trustee
	 	 

 

 

APPENDIX A

RELEASE CONDITIONS ATTACHED TO FORFEITABLE SHARES

The number of Exchangeable Shares which cease to be forfeitable on the dates set out below shall be
determined by multiplying the appropriate number in the chart below by the Exchange Ratio (as defined in the
Plan of Arrangement).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beneficial Holder	 	December 5, 2007	 	December 5, 2008	 	December 5, 2009	 	Total
	Darrell Kopke
	 	 	238,312	 	 	 	111,122	 	 	 	27,662	 	 	 	377,096	 
	Deanne Schweitzer
	 	 	158,875	 	 	 	74,082	 	 	 	18,439	 	 	 	251,396	 
	Christopher Ng
	 	 	48,525	 	 	 	48,525	 	 	 	27,661	 	 	 	124,711	 
	Shannon Wilson
	 	 	105,917	 	 	 	49,388	 	 	 	12,292	 	 	 	167,597	 
	Delaney Schweitzer
	 	 	59,702	 	 	 	43,214	 	 	 	10,756	 	 	 	113,672	 
	Julianne Lee
	 	 	52,084	 	 	 	52,084	 	 	 	13,829	 	 	 	117,997	 
	Bree Stanlake
	 	 	45,128	 	 	 	45,128	 	 	 	13,832	 	 	 	104,088	 
	Karen Wyder
	 	 	73,513	 	 	 	61,735	 	 	 	15,364	 	 	 	150,612	 
	Brian Bacon
	 	 	76,346	 	 	 	76,346	 	 	 	27,661	 	 	 	180,353	 
	Chloe Gow-Jarret
	 	 	50,147	 	 	 	33,954	 	 	 	8,452	 	 	 	92,553	 
	Cassandra Sze
	 	 	30,695	 	 	 	27,781	 	 	 	6,916	 	 	 	65,392	 
	Erin Westelman
	 	 	22,546	 	 	 	22,546	 	 	 	9,989	 	 	 	55,081	 
	David Andru
	 	 	10,372	 	 	 	10,372	 	 	 	10,373	 	 	 	31,117	 
	Jenna Hills
	 	 	35,730	 	 	 	27,781	 	 	 	6,914	 	 	 	70,425	 
	Laura Rowse
	 	 	20,219	 	 	 	20,219	 	 	 	11,525	 	 	 	51,963	 
	Lisa Fuhrman
	 	 	27,578	 	 	 	27,578	 	 	 	8,453	 	 	 	63,609	 
	Kerry Brown
	 	 	17,692	 	 	 	17,692	 	 	 	14,137	 	 	 	49,521	 
	Jeremy Wong
	 	 	27,049	 	 	 	24,694	 	 	 	6,147	 	 	 	57,890	 
	Bonnie Fung
	 	 	7,171	 	 	 	7,171	 	 	 	7,172	 	 	 	21,514	 
	Erica Larsen
	 	 	935	 	 	 	935	 	 	 	935	 	 	 	2,805	 
	Andrea Murray
	 	 	51,458	 	 	 	43,214	 	 	 	10,757	 	 	 	105,429	 
	Jeramiah Morris
	 	 	24,303	 	 	 	24,303	 	 	 	6,915	 	 	 	55,521	 
	Diana Mulvey
	 	 	11,525	 	 	 	11,525	 	 	 	11,525	 	 	 	34,575	 
	TOTAL
	 	 	1,195,822	 	 	 	861,389	 	 	 	287,706	 	 	 	2,344,917Contribution Agreement Dated as of July 26, 2007

 

Exhibit 10.9

CONTRIBUTION AGREEMENT

          This Contribution Agreement (the “Agreement”) is made this 26th day of July, 2007, by
and among (i) lululemon athletica inc., a Delaware corporation (the “Company”), (ii) Slinky
Financial ULC, an Alberta unlimited company (“Slinky Financial”), (iv) each of the persons
listed under the heading “Advent Holders” on the signature pages hereto (the “Advent
Holders”), (v) each of the persons listed under the heading “Highland Holders” on the signature
pages hereto (the “Highland Holders”), and (vi) each of the persons listed under the
heading “Brooke Holders” on the signature pages hereto (the “Brooke Holders”, and together
with Slinky Financial, the Advent Holders and the Highland Holders, the “Holders”).
Capitalized terms used, but not otherwise defined herein, shall have the meaning set forth in the
Underwriting Agreement (as defined below in the Background section of this Agreement).

BACKGROUND

          Subject to the terms and conditions stated in the Underwriting Agreement, dated of even date
herewith, by and among the Company, the underwriters named in Schedule I thereto (the
“Underwriters”) and the Holders (the “Underwriting Agreement”), the Holders propose
to sell the aggregate number of shares of Company’s common stock, par value $0.01 per share (the
“Common Stock”) stated therein in connection with the Company’s initial public offering
(the “Offering”).

          Section 11 of the Securities Act of 1933, as amended (the “Securities Act”) provides
for the imposition of civil liability on certain specified persons, including underwriters, in
connection with registered public offerings if the registration statement relating to the Offering
contains an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading (a “Material
Misstatement or Omission”). Although the Holders are merely selling shares of Common Stock in
the Offering and are not functioning as underwriters in connection with the Offering, as part of
the regulatory review of the Registration Statement by the Securities and Exchange Commission, the
Company has been required to disclose in the prospectus included in the Registration Statement a
statement concerning the potential status of the Holders as “underwriters” within the meaning of
Section 11 of the Securities Act.

          The Company and the Holders are party to that certain Agreement and Plan of Reorganization,
dated April 26, 2007 (the “Reorganization Agreement”) which provides that the Company will
indemnify the Holders for any losses, claims, damages, liabilities and expenses arising out of or
based upon, among other things, (i) any misstatement in or omission from any representation or
warranty, or any breach of covenant or agreement, in each case made or deemed made by the Company
in any underwriting or similar agreement entered into by the Company in connection with any
registration statement, including, the Underwriting Agreement, (ii) any untrue or alleged untrue
statement of a material fact contained in any registration statement under which the Common Stock
were registered under the Securities Act (including any final, preliminary or summary prospectus
contained therein or any amendment thereof or supplement thereto or any documents incorporated by
reference therein), and (iii) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in the case of a
prospectus or preliminary prospectus, in light of the circumstances under which they were made) not
misleading.

          In connection with the Offering, the Company and the Holders desire to enter into this
Agreement to provide for contribution with respect to any liability that any Holder may incur under
Section 11 of the Securities Act subject to the terms provided herein.

-1-

 

AGREEMENT

          NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which hereby is acknowledged, the parties intending
to be legally bound hereto agree as follows:

ARTICLE I

CONTRIBUTION BY THE HOLDERS

     Section 1.1. Right to Seek Contribution.

               (a) In the event that a Holder becomes liable for any losses, claims, damages or liabilities
under the Securities Act, Canadian Securities Laws or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon a
determination by a court of competent jurisdiction that such Holder is an underwriter for purposes
of Section 11 of the Securities Act (“Underwriter Liability”), such Holder shall be
entitled to request that the Company and the other Holders contribute to the requesting Holder’s
Underwriter Liability, subject, in each case, to the limitations set forth herein. A Holder who
seeks the contribution to such Holder’s Underwriter Liability from the Company and the other
Holders is referred to herein as the “Claimant” and the Holders who are requested to
contribute to a Claimant’s request for contribution are referred to herein as the “Contributing
Holders.”

               (b) The parties hereto acknowledge that Section 11 of the Securities Act provides for
liability for specified persons in addition to underwriters, including, inter alia, for any person
who signs the Registration Statement. Nevertheless, the rights of contribution and other terms and
conditions of this Agreement are not intended to give rise to any rights or obligations of the
parties hereto with respect to any losses, claims, damages or liabilities which any Holder may
incur pursuant to Section 11 of the Securities Act other than Underwriter Liability. Further,
nothing in this Agreement is intended to alter any rights or obligations the parties hereto may
have under any law, regulation, contract or otherwise, with respect to any losses, claims, damages
or liabilities which any Holder may incur pursuant to Section 11 of the Securities Act other than
Underwriter Liability.

     Section 1.2. Claim Notice. A Claimant shall notify in writing (the “Claim
Notice”) the Company and the other Holders promptly after the Claimant has knowledge that it
shall be responsible or otherwise liable for an Underwriter Liability. The Claim Notice shall
include (a) the amount of the Underwriter Liability to be paid or paid by the Claimant, (b) the
amount of legal or other expenses reasonably incurred by the Claimant in connection with
investigating or defending any action, suit or proceeding which gave rise to the Underwriter
Liability (and not including any legal or other expenses incurred by the Claimant relating to the
enforcement of the Claimant’s rights under this Agreement), (c) the total amount of any Recovered
Amounts (as defined in Section 1.5), (d) a brief summary of the facts underlying or otherwise
pertaining to the Underwriter Liability, and (e) wire transfer instructions for the account(s) to
which the Claimant would like the Company and the Contributing Holders to remit their Contribution
Amounts (as defined Section 1.3(b)). A Claimant shall be required to notify the Company and the
Contributing Holders promptly of any change in any of the foregoing information.

     Section 1.3. Contribution.

               (a) Subject to the terms, conditions and limitations set forth herein, the Company and the
Contributing Holders shall contribute towards the Claimant’s Underwriter Liability on a pro rata
basis in accordance with their respective Contribution Percentages. Each of the Company and the
Contributing Holders shall contribute towards a Claimant’s Underwriter Liability by delivering
their respective Contribution Amounts to the Claimant within ten (10) New York Business Days
following their receipt of evidence of

-2-

 

payment of an Underwriter Liability by such Claimant, in accordance with the wire transfer
instructions set forth in the corresponding Claim Notice.

               (b) The “Contribution Amount” of the Company and the Holders with respect to a
Claimant’s Underwriter Liability, means the Contribution Percentage of the Company or such Holder,
as the case may be, multiplied by the amount by which (i) the amount of such Underwriter Liability
as set forth in the corresponding Claim Notice, exceeds (ii) any Recovered Amounts received by the
Claimant. As used herein, “Contribution Percentage” means, with respect to the Company and
each Holder, the percentage obtained by dividing (x) the number of shares of Common Stock sold by
the Company or such Holder, as the case may be, pursuant to the Underwriting Agreement, by (y) the
aggregate number of shares of Common Stock sold by the Company and all Holders pursuant to the
Underwriting Agreement.

               (c) If the contribution provided for in this Section 1.3 is unavailable to or insufficient to
reimburse a Claimant for a Underwriter Liability, then the Company and each of the Holders
(including the Claimant) shall contribute to the Underwriter Liability in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Holders from the
offering of the Shares. If, however, the allocation provided by the immediately preceding sentence
is not permitted by applicable law, then the Company and each Holder (including the Claimant) shall
contribute to the Underwriter Liability in such proportion as is appropriate to reflect not only
such relative benefits but also the relative fault of the Company and the Holders in connection
with the statements or omissions which resulted in such losses, claims, damages or liabilities (or
actions in respect thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company and the Holders shall be deemed to be in the same proportion as
the gross proceeds from the Offering received by the Company and each of the Holders. The relative
fault shall be determined by reference to, among other things, whether the misrepresentation or
alleged misrepresentation, the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company or a Holder and their relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The Company and the Holders agree that it would not
be just and equitable if contributions pursuant to this Section 1.3(c) were determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable
considerations referred to in this Section 1.3(c). The amount paid or payable by a Claimant as a
result of a Underwriter Liability shall be deemed to include any legal or other expenses reasonably
incurred by the Claimant in connection with investigating or defending any such action or claim.

     Section 1.4. Limitations on Contributions.

               (a) Notwithstanding any provision herein to the contrary, no Holder shall be required to
contribute any amount under this Agreement to the extent that such contribution, together with any
amounts required to be paid by such Holder pursuant to the indemnification provisions of the
Underwriting Agreement, any amounts required to be paid by such Holder pursuant to that certain
Indemnification Contribution Agreement, dated the date of this Agreement, by and among Dennis
Wilson and the Holders (the “Indemnification Contribution Agreement”), or otherwise arising
out of any Material Misstatement or Omission (in each such case without double-counting the same
payment obligation), exceed the amount of gross proceeds received by such Holder from the sale of
shares of Common Stock in the Offering, and the obligation of the Holders to make a payment under
this Agreement with respect to any Underwriter Liability shall be reduced by any Recovered Amounts.

               (b) Notwithstanding any provision herein to the contrary, no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation.

-3-

 

               (c) The Company’s and the Holders’ obligations under this Agreement to contribute to an
Underwriter Liability are several in proportion to their respective amounts of gross proceeds
received in the Offering, and not joint.

               (d) The terms of this Agreement and the Indemnification Contribution Agreement shall be
applied equitably so that no person shall be entitled to indemnification and/or contribution for
the same liability under both agreements.

     Section 1.5. Reimbursement of Recovered Amounts.

               (a) If any Contributing Holder other than the Company has contributed to a Claimant’s
Underwriter Liability hereunder, and the Claimant receives Recovered Amounts, then the Claimant
shall promptly notify such Contributing Holder of such facts and shall deliver to such Contributing
Holder its Contribution Percentage of the Recovered Amounts within five (5) New York Business Days
after receipt of such Recovered Amounts, unless the Recovered Amounts had already been taken into
account in computing the Contributing Holder’s Contribution Amount under clause (ii) of Section
1.3(b). Any funds required to be paid by the Claimant to any Contributing Holder pursuant to this
Section 1.5 shall be delivered to such Contributing Holder via wire transfer to the account
designated in writing by such Contributing Holder from time to time.

               (b) For purposes of this Agreement, the term “Recovered Amounts” shall mean any amount
received by a Claimant from a source other than the Contributing Holders with respect to such
Claimant’s Underwriter Liability, including, without limitation:

                    (i) any payment received from the Company in accordance with Section 6.2(f) of the Agreement
and Plan of Reorganization, dated April 26, 2007, by and among the Company, Lululemon Athletica
USA, Inc., LIPO Investments (USA) Inc., LIPO Investments (Canada) Inc., Lulu Canadian Holding Inc.,
and the parties listed on Schedules I and II thereto (the “Reorganization Agreement”), or
otherwise, with respect to or otherwise in connection with such Underwriter Liability;

                    (ii) any contribution towards such Underwriter Liability from any person other than the
Contributing Holders, including pursuant to any applicable insurance policy; or

                    (iii) any full or partial reimbursement of such Underwriter Liability from a person to whom
the Claimant paid such Underwriter Liability.

ARTICLE II

INDEMNIFICATION BY THE COMPANY

     Section 2.1. Acknowledgement of Indemnification Obligations. The Company hereby
acknowledges and agrees that in connection with the Offering and the filing of the Registration
Statement, the Company is required to indemnify the Holders in the manner and to the extent
provided in Section 6.2(f) of the Reorganization Agreement.

     Section 2.2. No Limitation of Company’s Indemnification Obligations. The Company
hereby acknowledges and agrees that this Agreement shall in no way limit the Company’s
indemnification obligations under Section 6.2(f) of the Reorganization Agreement or otherwise
excuse the Company from indemnifying the Holders as provided in Section 6.2(f) of the
Reorganization Agreement.

-4-

 

ARTICLE III

MISCELLANEOUS

     Section 3.1. No Agreement as to Underwriter Status. The execution of this Agreement
shall not be construed as an admission or other confirmation that any of the Holders are
underwriters within the meaning of Section 11 of the Securities Act or otherwise.

     Section 3.2. Effective Date and Termination. This Agreement shall be effective as of
the date first written above and, if the Underwriting Agreement has not been entered into on or
before December 31, 2007, this Agreement shall terminate on December 31, 2007.

     Section 3.3. Rules of Construction. In this Agreement, unless otherwise specified or
where the context otherwise requires: (a) the headings of particular provisions of this Agreement
are inserted for convenience only and will not be construed as a part of this Agreement or serve as
a limitation or expansion on the scope of any term or provision of this Agreement; (b) words
importing any gender shall include other genders; (c) words importing the singular only shall
include the plural and vice versa; (d) the words “include,” “includes” or “including” shall be
deemed to be followed by the words “without limitation”; (e) the words “hereof,” “herein” and
“herewith” and words of similar import shall, unless otherwise stated, be construed to refer to
this Agreement as a whole and not to any particular provision of this Agreement; (f) unless the
context otherwise requires, references to “Articles” or “Sections” shall be to Articles or Sections
of this Agreement; (g) references to any person include the successors and permitted assigns of
such person; (h) references to any agreement or contract, unless otherwise stated, are to such
agreement or contract as amended, modified or supplemented from time to time in accordance with the
terms hereof and thereof; and (i) the parties hereto have participated jointly in the negotiation
and drafting of this Agreement; accordingly, in the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party hereto
by virtue of the authorship of any provisions of this Agreement.

     Section 3.4. Notices. All statements, requests, notices and agreements hereunder
shall be in writing, and shall be delivered or sent by mail, telex or facsimile transmission to the
parties hereto at their respective addresses as set forth on the signature pages hereto. Any such
statements, requests, notices or agreements shall take effect upon receipt thereof.

     Section 3.5. Benefits of Agreement; Assignment. All the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Except as expressly provided herein, this Agreement shall not
confer any rights or remedies upon any individual or entity other than the foregoing. This
Agreement may not be assigned, in whole or in part, by any party, whether by operation of law or
otherwise, without the consent of the other parties hereto, provided, that any such party may
assign its right to receive a payment entitled to be received by such party pursuant to this
Agreement as if such assignee were an original signatory to this Agreement.

     Section 3.6. Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of New York without regard to the application of the
principles of conflicts or choice of laws.

     Section 3.7. Jurisdiction. Each of the parties hereto submits to the jurisdiction of
the courts of the State of New York and the courts of the United States of America located in the
State of New York over any suit, action or proceeding with respect to this Agreement or the
transactions contemplated hereby. Any suit, action or proceeding with respect to this Agreement
may be brought only in the courts of the State of New York or the courts of the United States of
America, in each case, located in the Borough of Manhattan, City of New York, State of New York.
Each of the parties hereto waives any objection that it may have to the venue

-5-

 

of such suit, action or proceeding in any such court or that such suit, action or proceeding
in such court was brought in an inconvenient forum and agrees not to plead or claim the same.

     Section 3.8. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

     Section 3.9. Entire Agreement. This Agreement supersedes all prior agreements among
the parties with respect to the subject matter hereof. This Agreement contains the entire
agreement among the parties with respect to the subject matter hereof except where expressly
otherwise stated herein. The parties acknowledge that (a) the Reorganization Agreement,
Underwriting Agreement and Indemnification Contribution Agreement contain separate indemnification
and contribution provisions which are independent of the obligations of the parties hereto and (b)
the indemnification and contribution provisions of the Reorganization Agreement, Underwriting
Agreement and Indemnification Contribution Agreement do not conflict with the terms hereof.

     Section 3.10. Severability. Any provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining provisions hereof,
and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     Section 3.11. Counterparts. This Agreement may be executed in any number of
counterparts, which when taken together, shall constitute but one and the same instrument. Any and
all counterparts may be executed by facsimile.

[Signature Page Follows]

-6-

 

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

	 	 	 	 	 	 	 
	 	 	lululemon athletica inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert Meers
 

	 	 
	 	 	Name: Robert Meers	 	 
	 	 	Title: Authorized Person	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 	 	c/o lululemon athletica inc.	 	 
	 	 	1945 McLean Drive	 	 
	 	 	Vancouver, BC, V5N3J7	 	 
	 	 	Attention: Chief Executive Officer	 	 
	 	 	Facsimile Number: (604) 874-6124	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SLINKY INVESTMENTS ULC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dennis Wilson
 

	 	 
	 	 	Name: Dennis Wilson	 	 
	 	 	Title: Authorized Person	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	#2 - 2108 West 4th Avenue

Vancouver, BC, V6K 1N6

Attention: Dennis Wilson

Facsimile Number: (604) 737-7267	 	 
	 
	 	 	 	 	 	 
	 	 	with a copy to (which shall not constitute notice):	 	 
	 
	 	 	 	 	 	 
	 	 	McCullough O’Connor Irwin LLP

#1100 888 Dunsmuir St.

Vancouver, BC V6C 3K4

Facsimile: (604) 687-7099

Attention: Jonathan McCullough	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Dennis Wilson	 	 
	 	 	 	 	 
	 	 	Dennis Wilson	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	#2 - 2108 West 4th Avenue

Vancouver, BC, V6K 1N6

Attention: Dennis Wilson

Facsimile Number: (604) 737-7267	 	 
	 
	 	 	 	 	 	 
	 	 	with a copy to (which shall not constitute notice):	 	 
	 
	 	 	 	 	 	 
	 	 	McCullough O’Connor Irwin LLP

#1100 888 Dunsmuir St.

Vancouver, BC V6C 3K4

Facsimile: (604) 687-7099

Attention: Jonathan McCullough	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ADVENT HOLDERS:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ADVENT INTERNATIONAL GPE V LIMITED PARTNERSHIP

ADVENT INTERNATIONAL GPE V-A LIMITED PARTNERSHIP

ADVENT INTERNATIONAL GPE V-B LIMITED PARTNERSHIP

ADVENT INTERNATIONAL GPE V-G LIMITED PARTNERSHIP

ADVENT INTERNATIONAL GPE V-I LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	GPE V GP Limited Partnership, General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Advent International LLC, General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Advent International Corporation, Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:

Name:
	 	/s/ Steven J. Collins
 

Steven J. Collins
	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ADVENT PARTNERS III LIMITED PARTNERSHIP

ADVENT PARTNERS GPE V LIMITED PARTNERSHIP

ADVENT PARTNERS GPE V-A LIMITED PARTNERSHIP

ADVENT PARTNERS GPE V-B LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Advent International LLC, General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Advent International Corporation, Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	/s/ Steven J. Collins	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Name:	 	Steven J. Collins	 	 
	 	 	 	 	 	 	 	 	Title:	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Address for Notices:

c/o Advent International Corporation

75 State Street

Boston, MA 02109

Facsimile: (617) 951-0568

Attention: Steven J. Collins	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	with a copy to (which shall not constitute notice):

Pepper Hamilton LLP

3000 Two Logan Square

Eighteenth & Arch Streets

Philadelphia, PA 19103

Facsimile: (215) 981-4750

Attention: Barry M. Abelson

                  Robert A. Friedel	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HIGHLAND HOLDERS	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HIGHLAND CAPITAL PARTNERS VI LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Management Partners VI Limited Partnership, its General
 Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Highland Management Partners VI, Inc., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Sean M. Dalton	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name:	 	Sean M. Dalton	 	 
	 	 	 	 	 	 	Title:	 	Managing General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HIGHLAND CAPITAL PARTNERS VI-B LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Highland Management Partners VI Limited Partnership, its General
 Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Highland Management Partners VI, Inc., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Sean M. Dalton	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name:	 	Sean M. Dalton	 	 
	 	 	 	 	 	 	Title:	 	Managing General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HIGHLAND CAPITAL ENTREPRENEURS’ FUND VI LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	HEF VI Limited Partnership, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Highland Management Partners VI, Inc., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:

Name:
	 	/s/ Sean M. Dalton
 

Sean M. Dalton
	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	Managing General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Address for Notices:

c/o Highland Capital Partners, Inc.

92 Hayden Avenue

Lexington, Massachusetts 02421

Facsimile: (781) 861-5499

Attention: Kathleen A. Barry, Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	with a copy to (which shall not constitute notice):

Goodwin Procter LLP

53 State Street

Boston MA 02109

Facsimile Number: (617) 523-1231

Attention: William J. Schnoor, Jr.	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BROOKE HOLDERS:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BROOKE PRIVATE EQUITY ADVISORS FUND I-A, L.P.

BROOKE PRIVATE EQUITY ADVISORS FUND I(D), L.P.
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Brooke Private Equity Advisors, L.P., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Brooke Private Equity Management LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ John Brooke	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	John Brooke	 	 
	 	 	 	 	Title:	 	Manage	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Address for Notices:

c/o Brooke Private Equity Advisors

84 State Street, Suite 320

Boston, MA 02109

Attention: Charlie Bridge

Facsimile Number: 617-227-4128	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	with a copy to (which shall not constitute notice):	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Attention:                                                           	 	 
	 	 	Facsimile Number:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]