Document:

Exhibit

Exhibit 10.1

Annual Cash Performance Bonus Award Agreement

To: [•] 
Date of grant: [•] 
You have been granted a contingent annual cash performance bonus award for fiscal [•] under our 2014 Equity Incentive Plan. The award represents the right to receive a monetary value on settlement as provided in this agreement, which contains the terms and conditions of your award. 
1.2014 Equity Incentive Plan. This award is a Cash-Based Award under the Plan and is subject to all of the terms and conditions stated in this agreement and the Plan, which is a part of this agreement. Capitalized terms used but not otherwise defined in this agreement have the meanings given those terms in lululemon’s 2014 Equity Incentive Plan.

2.Target Bonus Amount. Your target bonus amount under this award is [•]% of your base salary. This is the amount that you would be paid if the financial performance goals were achieved at the [•] level set by the Committee. The actual payout of the bonus may vary from 0% of the target bonus amount for performance below a threshold to [•]% of the target bonus amount for achieving or exceeding the maximum performance level set by the Committee. 

3.Award Payout Formula. The amount of the bonus payout, if any, you are eligible to receive under this award will be determined by the Committee based on the bonus award payout formula set out in Attachment A, which is attached to this agreement and which is a part of this agreement. Any bonus payout will be based on the achievement of specified performance objectives determined by the Committee, which may include corporate performance goals and individual performance goals. The bonus award payout formula established by the Committee includes the relative weighting of each specific performance measure, as well as the portion of any bonus payout to be determined by the achievement of corporate performance goals and individual performance goals.      

4.Determination of Bonus Payout Amount. Following the completion of the Performance Period, the Committee will review performance relative to the achievement of the specified performance objectives established by the Committee in order to determine the amount of bonus payable to you under the bonus payout formula set out in Attachment A. In making this determination, the Committee may make adjustments that will be applied in calculating whether the performance goals have been met to factor out extraordinary, unusual, or non-recurring items. The Committee may use discretion in determining the amount of bonus payable to you, including determining that your bonus payout will be less than (but not greater than) the amount that would otherwise be payable under the bonus payout formula. 

5.Bonus Payout and Eligibility to Receive Payout. Any bonus payout under this award will be paid to you only if you continue to render Service through the date on which bonus payouts are made, unless your Service is terminated before the end of the Performance Period because of your death or Disability. The bonus payout will be made as soon as administratively possible after the Committee has determined the amount of the bonus payout, which is expected to be within approximately 75 days after the end of the Performance Period. The Committee has discretion to pay or settle this award in any combination of cash, shares of Stock or other securities. 

6.Bonus Payout Prorations. If you meet the eligibility criteria and began rendering Service after the start of the Performance Period but before October 30th of that fiscal year, or if your Service is terminated before the end of the Performance Period because of your death or Disability, the Committee may (in its sole discretion) choose to prorate the amount of any bonus payout based on the number of days you rendered Service during the Performance Period. The Committee also may use its discretion to prorate the amount of any bonus payout if you are on a leave of absence for a portion of the Performance Period or if you change positions within the Company during the Performance Period. 

7.Repayment Policy. Any payment made to you with respect to this award is subject to repayment or forfeiture as may be required to comply with (1) the Company’s Incentive Compensation Recoupment Policy as in effect from time to time, (2) any applicable listing standards of a national securities exchange and any implementing rules and regulations of the U.S. Securities and Exchange Commission, (3) similar rules under the laws of any other jurisdiction, and (4) any policies adopted by the Company after the date of this agreement, all to the extent determined by the Company to be applicable to you, subject to applicable law.  

8.Tax Matters. The Company has not obtained a tax ruling or other confirmation from the United States Internal Revenue Service with regard to the application of Section 409A to this award, and it does not represent or warrant that this agreement will avoid adverse tax consequences to you, including as a result of the application of Section 409A to this award. The Company may amend this agreement, void or amend any election you make under this agreement or delay any payments in such a manner as it determines to be necessary or appropriate to comply with Section 409A without your consent and without giving you prior notice. You hereby release and hold harmless the Company, its directors, officers and stockholders from any and all claims that may arise or relate to any tax liability, penalties, interest, costs, fees or other liability you incur in connection with this award.   

9.Transfer of Residence. If you transfer your residence or Service to another country, the Company may amend or supplement this agreement in such a manner as it determines to be necessary or appropriate to comply with applicable laws, rules and regulations or to facilitate the operation and administration of this award and the Plan, in each case without your consent and without giving your prior notice. 

10.Acknowledgements. By accepting this award, you acknowledge and agree that (1) this this award will be considered a Performance Award and is governed by the provisions of the Plan; (2) you have read and are familiar with the Plan, a copy of which has been made available to you, and you accept this award subject to the terms and conditions of the Plan and this agreement; (3) you have been advised to seek the advice of your own independent tax advisor prior to accepting this award and you are not relying on any representations of the Company or any of its agents as to the effect or advisability of entering into this agreement; (4) you consent to electronic delivery of the Plan and any documents related to the Plan or this award; and (5) you will be bound by the terms of the Company’s Incentive Compensation Recoupment Policy as in effect at any time. 

11.Miscellaneous. This agreement is binding on you and your heirs, executors, administrators, successors and assigns. Any document relating to participation in the Plan and any notice required or permitted under this agreement must be in writing and will be deemed given when personally delivered, emailed to the most current email address in the Company’s records, made available on an electronic network or database, or deposited in the U.S. mail by registered or certified mail or similar method of any foreign postal service. Except for any employment agreement between you and the Company in effect as of the grant date of this award, this agreement and the Plan constitute the entire understanding and agreement between you and the Company with respect to this award and supersede all prior understandings and agreements. This agreement is to be governed by the laws of the State of Delaware, without regard to its conflict of law rules. Nothing in this agreement or the Plan will be construed to confer on you any right to continue in Service. If there is a conflict between the terms and conditions of this agreement and the Plan, the terms and conditions of the Plan will have the highest authority. 

	
			
	 
	LULULEMON ATHLETICA INC.

	 
	By:
	 

	 
	Name:

	 
	Title:

I hereby acknowledge that I have read, understand and accept the terms of this award agreement, the Plan and the Company’s Incentive Compensation Recoupment Policy. 
	
			
	 
	PARTICIPANT

	 
	 

	 
	Date:
	 

ATTACHMENT A
BONUS AWARD PAYOUT FORMULA
	
		
	Participant:
	[•]

	Date of grant:
	[•]

	Target bonus amount:
	[•] of base salary

	Performance period:
	Fiscal [•]

The amount of the bonus payout, if any, you are eligible to receive under this award will be based on the achievement of corporate and individual performance goals as provided below. 
The performance measures and respective weightings are as follows:
	
		
	Performance Measures
	Weighting

	Financial Performance Measures
	[•]%

	Individual Performance Measures
	[•]%

The financial performance measures and respective weightings are as follows:
	
		
	Financial Performance Measures
	Weighting

	[•]
	[•]%

	[•]
	[•]%

The respective percentage with respect to each financial performance measure will be calculated as follows: 
	
					
	Measure
	Below Threshold
	Threshold
	Target
	Maximum

	[•]
	[•]%
	[•]%
	[•]%
	[•]%

	[•]
	[•]%
	[•]%
	[•]%
	[•]%

With respect to each financial performance measure, if actual performance is between the threshold level and target, or between target and maximum, the applicable percentage will be calculated using straight line linear interpolation on each independent metric. If actual performance is below threshold, the applicable multiplier will be 0%.tlry-ex101_44.htm

Exhibit 10.1

June 5, 2020                               

HIGH PARK HOLDINGS LTD. 

495 Wellington St W, Unit 250, 

Toronto, ON M5V 1G1

 

Attention:  Michael Kruteck

	
Re:
	
First Amendment to loan facility letter agreement dated as of February 28, 2020 among  Bridging Finance Inc. (in its capacity as agent, the “Agent”), as agent for and on behalf of any of the funds managed or co-managed by Bridging Finance Inc. (collectively, the “Lender”), and High Park Holdings Ltd. (the “Borrower”)  

 

The Borrower, the Agent, the Lender and the Guarantors party thereto (the Borrower and the Guarantors are, collectively, the “Obligors” and each is an “Obligor”) entered into that certain credit facility described in the loan facility letter agreement dated as of February 28, 2020 (as the same may be further  amended, restated, supplemented, revised, replaced or otherwise modified from time to time, the “Credit Agreement”);

The parties hereto have agreed to amend certain provisions of the Credit Agreement, but, in each case, only to the extent and subject to the limitations set forth in this Amendment.

The Agent, for and on behalf of the Lender, is pleased to offer the amendments to the Credit Agreement described in this amendment letter (this “Amendment”) subject to the terms and conditions set forth herein. All capitalized terms not otherwise defined in the body of this Amendment shall have the meanings ascribed to them in the Credit Agreement. 

ARTICLE I – Amendments to the Credit Agreement

With effect as of the First Amendment Effective Date (hereinafter defined), the Credit Agreement is amended as follows:

	
1.1
	
The row titled “Facility Availability:” on page 2 is deleted in its entirety and replaced with the following:

		
	
Facility Availability:
	
Subject to the terms and conditions of this Agreement, the Facility shall be drawn (i) in an aggregate principal amount equal to C$66,500,000 in a single draw on the Closing Date (the “Closing Date Draw”), and (ii) at the Agent’s sole discretion, in an aggregate principal amount equal to C$13,300,000 in a single draw provided that the Additional Draw Conditions Precedent are satisfied (the “Additional Draw”). 

 

Amounts prepaid or repaid in respect of the Facility may not be reborrowed.

 

 
 

- 2 -

	
1.2
	
The row titled “Principal Repayments:” on page 4 is deleted in its entirety and replaced with the following:

		
	
Principal Payments:
	
Subject to demand by the Agent or the Lender after the occurrence and during the continuance of an Event of Default, the Borrower agrees that the principal balance of the Facility shall be due and repaid in cash in full upon maturity at the end of the Term (whether the stated end of the Term, as a result of acceleration or otherwise). 

 

	
1.3
	
The row titled “Prepayment:” on page 4 is deleted in its entirety and replaced with the following:

		

 

- 3 -

		
	
Prepayment:
	
If the Facility is prepaid in full or partially prior to the date that is 6 months immediately following the Closing Date, including by voluntary prepayment or in the event of a prepayment for any other reason, including (a) acceleration of the Obligations as a result of the occurrence of an Event of Default, (b) foreclosure and sale of, or collection of, the Collateral, (c) sale of the Collateral in any insolvency proceeding, or (d) the restructure, reorganization, or compromise of the Obligations by the confirmation of a plan of reorganization or any other plan of compromise, restructure, or arrangement in any insolvency proceeding (in each case, an “Accelerated Prepayment”), then, unless otherwise waived by the Agent in writing in its sole and absolute discretion, in view of the impracticability and extreme difficulty of ascertaining the actual amount of damages to the Agent and Lender or profits lost by the Agent and Lender as a result of such Prepayment, and by mutual agreement of the parties as to a reasonable estimation and calculation of the lost profits or damages of the Agent and Lender, the Borrower shall pay to the Agent an amount in cash (i) calculated in accordance with the formula set out below, plus applicable taxes due thereon (the “Early Prepay Fee”) plus (ii) all accrued interest on the principal amount that is being prepaid, any other accrued but unpaid interest which is due and payable hereunder and any fees owing on the date the prepayment is made, all of which shall be due and payable as of the date the prepayment is made:

 

I/365 x N x M

Where:

I = the annual interest rate of the Facility on the date the prepayment is made;

N = the number of days between the date the prepayment is made and the date that is 6 months immediately following the Closing Date; and

M = the principal amount that is being prepaid.

If the Facility is voluntarily prepaid in full or partially on and after the date that is 6 months immediately following the Closing Date, the Borrower shall deliver an irrevocable prepayment notice to the Agent (the “Prepayment Notice”) at least seventy-five (75) days (reduced to thirty (30) days upon the occurrence of a Denied Additional Draw Request) prior to the proposed prepayment date (the “Prepayment Date”) setting forth the amount being prepaid (the “Prepayment Amount”) and the Prepayment Date.

 

Unless otherwise waived by the Agent in writing in its sole and absolute discretion, should the Borrower wish to voluntarily prepay the Facility in full 

or partially without having to provide the Agent with such required seventy-five (75) days (or thirty (30) days upon the occurrence of a Denied Additional Draw Request) prior notice or in the event of a Prepayment for any other reason without the required notice on and after the date that is 6 months immediately following the Closing Date, including an Accelerated Prepayment, then, in view of the impracticability and extreme difficulty of ascertaining the actual amount of damages to the Agent and Lender or profits lost by the Agent and Lender as a result of such Prepayment, and by mutual agreement of the parties as to a reasonable estimation and calculation of the lost profits or damages of the Agent and Lender, the Borrower shall pay to the Agent an amount in cash calculated in accordance with the formula set out below and which shall be due and payable as of the date the prepayment is made (the “Prior Notice Prepay Fee”) plus (ii) all accrued interest on the principal amount that is being prepaid, any other accrued but unpaid interest which is due and payable hereunder and any fees owing on the date the prepayment is made, all of which shall be due and payable as of the date the prepayment is made:

 

I/365 x (75 – N) x M

Where:

I = the annual interest rate on the Facility on the date the Prepayment Notice was given or, if no Prepayment Notice was given (including, without limitation, due to an Accelerated Prepayment), on the date the prepayment is made;

75 = 75 but shall be replaced by “30” upon the occurrence of a Denied Additional Draw Request;

N = where a Prepayment Notice was given, the number of days between the date the Prepayment Notice is given and the date of prepayment, provided that if no Prepayment Notice was given (including, without limitation, due to an Accelerated Prepayment), N shall equal 0; and

M = the Prepayment Amount.

 

	
1.4
	
The row titled “Additional Draw Conditions Precedent:” on page 7 is amended by deleting the words “30 days’ prior written notice” in clause (b) and replacing them with “5 days’ prior written notice”.

	
1.5
	
Schedule “A” (Definitions) is amended by adding the following definitions in alphabetical order with the existing definitions:

“Denied Additional Draw Request” means the Borrower has requested the Additional Draw and satisfied the Additional Draw Conditions Precedent required to be satisfied as of the date of such request and the Agent has either (i) notified the Borrower that it is denying the Additional Draw (for reasons other than the failure to satisfy the Additional Draw Conditions Precedent), or (ii) failed to respond to the Borrower’s request for the Additional Draw within five (5) Business Days of the date of delivery of request for the Additional Draw.

 

- 4 -

ARTICLE II – Conditions To Effectiveness 

	
2.1
	
This Amendment shall become effective upon the Obligors delivering to the Agent an executed counterpart to this Amendment, facsimile signatures or a scanned PDF copy of this Amendment transmitted via e-mail or telecopier will be acceptable (such date being referred to herein as the “First Amendment Effective Date”).

ARTICLE III – representations and warranties

	
3.1
	
Each Obligor represents and warrant to the Agent and the Lender that the following statements are true, correct and complete:

	
 
	
(a)
	
Authorization, Validity, and Enforceability of this Amendment.  The Obligor has the corporate power and authority to execute and deliver this Amendment and to perform the Credit Agreement.  The Obligor has taken all necessary corporate action (including, without limitation, obtaining approval of its shareholders if necessary) to authorize the execution and delivery of this Amendment and the performance of the Credit Agreement.  This Amendment has been duly executed and delivered by the Obligor and this Amendment and the Credit Agreement constitute the legal, valid and binding obligations of the Obligor, enforceable against it in accordance with their respective terms without defence, compensation, setoff or counterclaim. The Obligor’s execution and delivery of this Amendment and the performance by the Obligor of the Credit Agreement do not and will not conflict with, or constitute a violation or breach of, or constitute a Default under, or result in the creation or imposition of any Encumbrance upon the property of the Obligor by reason of the terms of (a) any contract, mortgage, hypothec, lien, lease, agreement, indenture, or instrument to which the Obligor is a party or which is binding on it, (b) any requirement of Applicable Laws applicable to the Obligor or any Subsidiaries, or (c) the certificate or articles of incorporation or amalgamation or bylaws of the Obligor or any Subsidiaries.

	
 
	
(b)
	
Governmental Authorization.  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or other person is necessary or required in connection with the execution, delivery or performance by, or enforcement against the Obligor of this Amendment or the Credit Agreement except for such as have been obtained or made in order to perfect and render enforceable the Security.

	
 
	
(c)
	
Representations, Warranties and Covenants in Credit Agreement. The representations and warranties contained in the Credit Agreement are and will be true, correct and complete in all material respects on the date of this Amendment to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as of such earlier date. Upon this Amendment becoming effective, the Obligor will be in full compliance with all of its covenants in the Credit Agreement and each Credit Document.

	
 
	
(d)
	
Absence of Default.  No event has occurred and is continuing or will result from the consummation of the transactions contemplated by this Amendment that would constitute a Default or an Event of Default.

	
 
	
(e)
	
Security.  All Security delivered to or for the benefit of the Agent and the Lender pursuant to the Credit Agreement and the other Credit Documents remains in full force and effect and secures all Obligations of the Obligor under the Credit Agreement and the other Credit Documents to which it is a party.

ARTICLE IV – REAFFIRMATION AND CONSENT

 

- 5 -

	
4.1
	
Each Obligor (i) reaffirms its Obligations under the Credit Agreement and the other Credit Documents to which it is a party, and (ii) agrees that the Credit Agreement and the other Credit Documents to which it is a party remain in full force and effect, except as amended hereby, and are hereby ratified and confirmed.

	
4.2
	
Each Obligor reaffirms each Encumbrance it granted in favor of the Agent and the Lender pursuant to the Security, which such Encumbrances shall continue to secure and constitute a security interest for the Obligations of the Obligor on and subject to the terms and conditions set forth in the applicable Security.

ARTICLE V – miscellaneous

	
5.1
	
The execution, delivery and performance of this Amendment shall not, except as expressly provided for herein, constitute a waiver or amendment of any other Event of Default, or operate as a waiver or amendment of any right, power or remedy of the Agent and the Lender under the Credit Agreement or any other document.

	
5.2
	
This Amendment shall be deemed to have been made and accepted in the City of Toronto, Ontario and construed in accordance with and be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein.

	
5.3
	
This Amendment may be executed in original and/or facsimile counterparts and all such counterparts taken together shall be deemed to constitute one and the same instrument.

	
5.4
	
Each party hereto shall be responsible for their own costs and expenses (including legal fees) incurred in connection with the entering into of this Amendment. 

	
5.5
	
Each party hereto agrees to provide to the other party a copy of any public disclosure relating to this Amendment prior to publicly disclosing such information, provided that nothing in this Amendment or the Credit Agreement shall operate to preclude any party from complying with stock exchange rules and policies or Applicable Laws with respect to the public disclosure of this Amendment and matters relating thereto. 

[Balance of page left blank, signature pages follow]

 

 

 

If the terms and conditions of this Amendment are acceptable to you, please sign in the space indicated below and return the signed copy of this Amendment to us.  Acceptance may also be effected by facsimile or scanned transmission and in counterpart. 

We thank you for allowing us the opportunity to provide you with this Amendment. 

Yours truly,

		
	
BRIDGING FINANCE INC., as Agent 

	
Per:
	
/s/ Graham Marr

	
 
	
Name:  Graham Marr

	
 
	
Title:     Senior Portfolio Manager

I have authority to bind the Corporation.

 

 

 

ACCEPTANCE

Each of the undersigned hereby accepts this Amendment as of the date first above written. 

					
	
 
	
 
	
BOrrower:

 

HIGH PARK HOLDINGS LTD.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

 

 

					
	
 
	
 
	
Guarantors:

 

TILRAY, INC.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: CEO

 

					
	
 
	
 
	
TILRAY CANADA LTD.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director 

 

					
	
 
	
 
	
HIGH PARK FARMS LTD.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

					
	
 
	
 
	
1197879 B.C. LTD.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

 

 

					
					
	
 
	
 
	
FHF HOLDINGS LTD.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

					
	
 
	
 
	
FRESH HEMP FOODS LTD.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

					
	
 
	
 
	
MANITOBA HARVEST USA, LLC

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

					
	
 
	
 
	
HIGH PARK GARDENS INC.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

					
	
 
	
 
	
NATURA NATURALS HOLDINGS INC.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

					
	
 
	
 
	
NATURA NATURALS INC.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

 

 

 

					
					
	
 
	
 
	
DORADA VENTURES LTD.

	
 
	
 
	
Per:
	
/s/ Brendan Kennedy

	
 
	
 
	
 
	
Name: Brendan Kennedy

	
 
	
 
	
 
	
Title: Director

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