Document:

Exhibit 10.11

 

Exhibit 10.11

FORM
OF

EXCHANGE TRUST AGREEMENT

Between:

LULULEMON CORP.

- and -

LULU CANADIAN HOLDING INC.

- and -

COMPUTERSHARE TRUST COMPANY OF CANADA

l, 2007

 

EXCHANGE TRUST AGREEMENT

MEMORANDUM OF AGREEMENT made as of the l day of l, 2007.

AMONG:

	 	 	LULULEMON CORP., a corporation existing under the laws of the State
of Delaware

(“Lululemon”),

AND:

	 	 	LULU CANADIAN HOLDING INC., a company existing under the laws of
British Columbia

(“Exchangeco”),

AND:

	 	 	COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company incorporated
under the laws of Canada

(“Trustee”).

WHEREAS
in connection with an arrangement agreement (the
“Arrangement Agreement”) dated as of April 26,
2007 among Lululemon, Lululemon Callco ULC (“Callco”), Exchangeco, LIPO Investments (USA), Inc. and
LIPO Investments (Canada) Inc. (“LIPO Canada”), Exchangeco is to issue Exchangeable Shares to
holders of common shares of LIPO Canada pursuant to the Arrangement contemplated in the Arrangement
Agreement;

AND WHEREAS pursuant to the Arrangement Agreement, Lululemon, Exchangeco and Callco have agreed to
execute an exchange trust agreement substantially in the form of this Agreement;

NOW THEREFORE in consideration of the respective covenants and agreements provided in this
Agreement and for other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the parties hereto covenant and agree as follows:

ARTICLE 1

DEFINITIONS

1.1 Definitions

In this Agreement, the following terms shall have the following meanings:

“Agreement” means this Exchange Trust Agreement as it may be amended or supplemented from time to
time;

 

“Arrangement”
means an arrangement under Part 9, Division 5 of the BCA on the terms and subject to the
conditions set out in the Plan of Arrangement, to which plan these share provisions are attached as
Appendix 1, 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;

“Arrangement
Agreement” means the arrangement agreement made as of the
26th day of April, 2007 among
Lululemon, Callco, Exchangeco, LIPO Investments (USA), Inc. and LIPO Investments (Canada), Inc., as
amended, supplemented and/or restated in accordance therewith prior to the Effective Date,
providing for, among other things, the Arrangement;

“Automatic Exchange Rights” means the benefit of the obligation of Lululemon, to effect the
automatic exchange of Exchangeable Shares for Lululemon Common Shares pursuant to Section 3.12;

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

“Beneficiaries” means the registered holders from time to time of Exchangeable Shares, other than
Lululemon and its subsidiaries;

“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, 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;

“Canadian Dollar Equivalent” means, in respect of an amount expressed in a currency other than
Canadian dollars (the “Foreign Currency Amount”) at any date, the product obtained by multiplying
(a) the Foreign Currency Amount by (b) the noon spot exchange rate on such date for such foreign
currency expressed in Canadian dollars as reported by the Bank of Canada or, in the event such spot
exchange rate is not available, such exchange rate on such date for such foreign currency expressed
in Canadian dollars as may be deemed by the Board of Directors to be appropriate for such purpose;

“Court” means the Supreme Court of British Columbia;

“Current Market Price” means, in respect of a Lululemon Common Share on any date, the Canadian
Dollar Equivalent of the average of the closing bid and asked prices of the Lululemon Common Shares
during a period of 20 consecutive trading days ending not more than three trading days before such
date on the NASDAQ, or, if the Lululemon Common Shares are not then listed on the NASDAQ, on such
other stock exchange or automated quotation system on which the Lululemon Common Shares are listed
or quoted, as the case may be, as may be selected by the Board of Directors for such purpose;
provided however, that if in the opinion of the Board of Directors the public distribution or
trading activity of the Lululemon Common Shares during such period does not create a market which
reflects the fair market value of a Lululemon Common Share, then the Current Market Price of a
Lululemon Common Share shall be determined by the Board of Directors, in good faith and in its sole
discretion, and provided

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further that any such selection, opinion or determination by the Board of Directors shall be
conclusive and binding;

“Effective Date” means the date following the grant of the Final Order on which the parties to the
Arrangement Agreement that the conditions set forth in Article 5 of the Arrangement Agreement have
been satisfied or waived (or on such other date as the parties may agree);

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

“Exchange Right” has the meaning assigned in Section 3.1;

“Exchangeable Share” means a share in the class of non-voting exchangeable shares in the capital of
Exchangeco;

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

“Final Order” means the order of the Court approving the Plan of Arrangement, granted pursuant to
section 291(4) of the BCA, 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;

“Indemnified Parties” has the meaning assigned in Section 6.1;

“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;

“Liquidation Call Right” has the meaning assigned in the Plan of Arrangement;

“Liquidation Event” has the meaning assigned in Section 3.12(b);

“Liquidation Event Effective Date” has the meaning assigned in Section 3.12(c);

“Lululemon Common Share” means a share of common stock, par value U.S. $0.01, in the capital of
Lululemon and any other securities into which such share may be changed;

“Lululemon Successor” has the meaning assigned in Section 8.1(a);

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“NASDAQ” means the NASDAQ Global Market;

“Officer’s Certificate” means, with respect to Lululemon or Exchangeco, as the case may be, a
certificate signed by any officer or director of Lululemon or Exchangeco, as the case may be;

“Person” includes any individual, firm, partnership, joint venture, venture capital fund,
association, trust, trustee, executor, administrator, legal personal representative, estate, group,
body corporate, corporation, company, unincorporated association or organization, government body,
syndicate or other entity, whether or not having legal status;

“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 in the Final Order;

“Redemption Call Right” has the meaning assigned in the Plan of Arrangement;

“Reorganization Agreement” means the Agreement and Plan of Reorganization dated as of the l day of l ,
2007 by and among Lululemon, Lululemon Athletica USA, Inc., Lululemon Athletica Inc., LIPO
Investments (USA), Inc., LIPO Investments (Canada), Inc., Callco, the Company and certain other
parties;

“Retracted Shares” has the meaning assigned in Section 3.7;

“Retraction Call Right” has the meaning assigned in the Exchangeable Share Provisions;

“subsidiary” means, with respect to a specified body corporate, any body corporate of which more
than 50% of the outstanding shares ordinarily entitled to elect a majority of the board of
directors thereof (whether or not shares of any other class or classes shall or might be entitled
to vote upon the happening of any event or contingency) are at the time owned directly or
indirectly by such specified body corporate and shall include any body corporate, partnership,
joint venture or other entity over which it exercises direction or control or which is in a like
relation to a subsidiary;

“Support Agreement” means the Support Agreement to be made among Lululemon, Callco and the Company,
which shall be substantially in the form and content of Exhibit D to the Reorganization Agreement,
with such changes thereto as the parties thereto, acting reasonably, may approve, in accordance
with the terms thereof;

“Trust” means the trust created by this Agreement;

“Trust Estate” means any securities, the Exchange Right, the Automatic Exchange Rights and any
money or other property which may be held by the Trustee from time to time pursuant to this
Agreement;

“Trustee” means Computershare Trust Company of Canada and, subject to the provisions of Article 7,
includes any successor trustee.

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ARTICLE 2

PURPOSE OF AGREEMENT

2.1 Establishment of Trust

The purpose of this Agreement is to create the Trust for the benefit of the Beneficiaries, as
herein provided. The Trustee will hold the Exchange Right and the Automatic Exchange Rights in
order to enable the Trustee to exercise such rights, in each case as trustee for and on behalf of
the Beneficiaries as provided in this Agreement.

ARTICLE 3

EXCHANGE RIGHT AND AUTOMATIC EXCHANGE

3.1 Grant and Exercise of the Exchange Right

Lululemon hereby grants to the Trustee as trustee for and on behalf of, and for the use and benefit
of, the Beneficiaries the right (the “Exchange Right”), upon the occurrence and during the
continuance of an Insolvency Event, to require Lululemon to purchase from each or any Beneficiary
all or any part of the Exchangeable Shares held by the Beneficiary and the Automatic Exchange
Rights, all in accordance with the provisions of this Agreement. Lululemon hereby acknowledges
receipt from the Trustee as trustee for and on behalf of the Beneficiaries of good and valuable
consideration (and the adequacy thereof) for the grant of the Exchange Right and the Automatic
Exchange Rights by Lululemon to the Trustee. During the term of the Trust and subject to the terms
and conditions of this Agreement, the Trustee shall possess and be vested with all rights in
respect of the Exchange Right and the Automatic Exchange Rights and shall be entitled to exercise
all of the rights and powers of an owner with respect to the Exchange Right and the Automatic
Exchange Rights, provided that the Trustee shall:

	 	(a)	 	hold the Exchange Right and the Automatic Exchange Rights and the legal title
thereto as trustee solely for the use and benefit of the Beneficiaries in accordance
with the provisions of this Agreement; and

	 	(b)	 	except as specifically authorized by this Agreement, have no power or authority
to exercise or otherwise deal in or with the Exchange Right or the Automatic Exchange
Rights, and the Trustee shall not exercise any such rights for any purpose other than
the purposes for which the Trust is created pursuant to this Agreement.

3.2 Legended Share Certificates

Exchangeco will cause each certificate issued representing Exchangeable Shares to bear an
appropriate legend notifying the Beneficiaries of:

	 	(a)	 	their right to instruct the Trustee with respect to the exercise of the
Exchange Right in respect of the Exchangeable Shares held by a Beneficiary; and
	 
	 	(b)	 	the Automatic Exchange Rights.

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3.3 General Exercise of Exchange Right

The Exchange Right shall be and remain vested in and exercisable by the Trustee. Subject to Section
4.15, the Trustee shall exercise the Exchange Right only on the basis of instructions received
pursuant to this Article 3 from Beneficiaries entitled to instruct the Trustee as to the exercise
thereof. To the extent that no instructions are received from a Beneficiary with respect to the
Exchange Right, the Trustee shall not exercise or permit the exercise of the Exchange Right.

3.4 Purchase Price

The purchase price payable by Lululemon for each Exchangeable Share to be purchased by Lululemon
under the Exchange Right shall be an amount per Exchangeable Share equal to (a) the Current Market
Price of a Lululemon Common Share on the last Business Day prior to the day of closing of the
purchase and sale of such Exchangeable Share under the Exchange Right, which shall be satisfied in
full by Lululemon causing to be sent to such holder one Lululemon Common Share, plus (b) to the
extent not paid by Exchangeco on the designated payment date therefor, an additional amount equal
to and in satisfaction of the full amount of all declared and unpaid dividends on each such
Exchangeable Share held by such holder on any dividend record date which occurred prior to the
closing of the purchase and sale. In connection with each exercise of the Exchange Right, Lululemon
shall provide to the Trustee an Officer’s Certificate setting forth the calculation of the purchase
price for each Exchangeable Share. The purchase price for each such Exchangeable Share so purchased
may be satisfied only by Lululemon delivering or causing to be delivered to the Trustee, on behalf
of the relevant Beneficiary, one Lululemon Common Share and on the applicable payment date a cheque
for the balance, if any, of the purchase price without interest (but less any amounts withheld
pursuant to Section 3.13). Upon payment by Lululemon of such purchase price, the relevant
Beneficiary shall cease to have any right to be paid any amount in respect of declared and unpaid
dividends on each such Exchangeable Share by Exchangeco.

3.5 Exercise Instructions

Subject to the terms and conditions herein set forth, a Beneficiary shall be entitled, upon the
occurrence and during the continuance of an Insolvency Event, to instruct the Trustee to exercise
the Exchange Right with respect to all or any part of the Exchangeable Shares registered in the
name of such Beneficiary on the books of Exchangeco. To cause the exercise of the Exchange Right by
the Trustee, the Beneficiary shall deliver to the Trustee, in person or by certified or registered
mail, at its principal office in Vancouver or at such other places in Canada as the Trustee may
from time to time designate by written notice to the Beneficiaries, the certificates, if any,
representing the Exchangeable Shares which such Beneficiary desires Lululemon to purchase, duly
endorsed in blank for transfer, and accompanied by such other documents and instruments as may be
required to effect a transfer of Exchangeable Shares and such additional documents and instruments
as the Trustee, Exchangeco or Lululemon may reasonably require together with (a) a duly completed
form of notice of exercise of the Exchange Right in form and substance satisfactory to the Trustee,
Lululemon and Exchangeco, stating (i) that the Beneficiary thereby instructs the Trustee to
exercise the Exchange Right so as to require Lululemon to purchase from the Beneficiary the number
of Exchangeable Shares specified therein, (ii) that

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such Beneficiary has good title to and owns all such Exchangeable Shares to be acquired by
Lululemon, free and clear of all liens, claims and encumbrances, (iii) the names in which the
Lululemon Common Shares issuable in connection with the exercise of the Exchange Right are to be
issued and (iv) the names and addresses of the persons to whom such Lululemon Common Shares should
be delivered and (b) payment (or evidence satisfactory to the Trustee, Exchangeco, and Lululemon of
payment) of the taxes (if any) payable as contemplated by Section 3.8 of this Agreement. If only a
part of the Exchangeable Shares are to be purchased by Lululemon under the Exchange Right, the
balance of such Exchangeable Shares shall be issued to the holder at the expense of Exchangeco
either by a new certificate or through the direct registration system.

3.6 Delivery of Lululemon Common Shares; Effect of Exercise

Promptly after the receipt of the notice of exercise of the Exchange Right, together with such
documents and instruments of transfer required by Section 3.5 (and payment of taxes, if any payable
as contemplated by Section 3.8 or evidence thereof), the Trustee shall notify Lululemon and
Exchangeco of its receipt of the same, which notice to Lululemon and Exchangeco shall constitute
exercise of the Exchange Right by the Trustee on behalf of the holder of such Exchangeable Shares,
and Lululemon shall promptly thereafter deliver or cause to be delivered to the Trustee (which
delivery may be in the form of a certificate or in book-entry form through the direct registration
system), for delivery to the Beneficiary of such Exchangeable Shares (or to such other persons, if
any, properly designated by such Beneficiary) the number of Lululemon Common Shares issuable in
connection with the exercise of the Exchange Right, and on the applicable payment date cheques for
the balance, if any, of the total purchase price therefor without interest (but less any amounts
withheld pursuant to Section 3.13); provided, however, that no such delivery shall be made unless
and until the Beneficiary requesting the same shall have paid (or provided evidence satisfactory to
the Trustee, Exchangeco, and Lululemon of the payment of) the taxes (if any) payable as
contemplated by Section 3.8 of this Agreement. Immediately upon the giving of notice by the Trustee
to Lululemon and Exchangeco of the exercise of the Exchange Right as provided in this Section 3.6,
the closing of the transaction of purchase and sale contemplated by the Exchange Right shall be
deemed to have occurred and the holder of such Exchangeable Shares shall be deemed to have
transferred to Lululemon, all of such holder’s right, title and interest in and to such
Exchangeable Shares and the related interest in the Trust Estate and shall cease to be a holder of
such Exchangeable Shares and shall not be entitled to exercise any of the rights of a holder in
respect thereof, other than the right to receive his proportionate part of the total purchase price
therefor, unless the requisite number of Lululemon Common Shares is not allotted, issued and
delivered by Lululemon, to the Trustee within five Business Days of the date of the giving of such
notice by the Trustee or the balance of the purchase price, if any, is not paid by Lululemon, on
the applicable payment date therefor, in which case the rights of the Beneficiary shall remain
unaffected until such Lululemon Common Shares are so allotted, issued and delivered, and the
balance of the purchase price, if any, has been paid, by Lululemon. Upon delivery by Lululemon to
the Trustee of such Lululemon Common Shares, and the balance of the purchase price, if any, the
Trustee shall deliver such Lululemon Common Shares to such Beneficiary (or to such other persons,
if any, properly designated by such Beneficiary), either in the form of a certificate or in
book-entry form through the direct registration system. Concurrently with such Beneficiary ceasing
to be a holder

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of Exchangeable Shares, the Beneficiary shall be considered and deemed for all purposes to be the
holder of the Lululemon Common Shares delivered to it pursuant to the Exchange Right.

3.7 Exercise of Exchange Right Subsequent to Retraction

In the event that a Beneficiary has exercised its right under Article 6 of the Exchangeable Share
Provisions to require Exchangeco to redeem any or all of the Exchangeable Shares held by the
Beneficiary (the “Retracted Shares”) and is notified by Exchangeco pursuant to Section 6.6 of the
Exchangeable Share Provisions that Exchangeco will not be permitted as a result of solvency
requirements of applicable law to redeem all such Retracted Shares, and provided that Callco shall
not have exercised the Retraction Call Right with respect to the Retracted Shares and that the
Beneficiary has not revoked the retraction request delivered by the Beneficiary to Exchangeco
pursuant to Section 6.1 of the Exchangeable Share Provisions and provided further that the Trustee
has received written notice of same from Exchangeco or Lululemon (which, in such circumstances,
Lululemon covenants to provide or cause to be provided to the Trustee), the retraction request will
constitute and will be deemed to constitute notice from the Beneficiary to the Trustee instructing
the Trustee to exercise the Exchange Right with respect to those Retracted Shares that Exchangeco
is unable to redeem. In any such event, Exchangeco hereby agrees with the Trustee and in favour of
the Beneficiary promptly to forward or cause to be forwarded to the Trustee all relevant materials
delivered by the Beneficiary to Exchangeco or to the transfer agent of the Exchangeable Shares
(including without limitation, a copy of the retraction request delivered pursuant to Section 6.1
of the Exchangeable Share Provisions) in connection with such proposed redemption of the Retracted
Shares and the Trustee will thereupon exercise the Exchange Right with respect to the Retracted
Shares that Exchangeco is not permitted to redeem and will require Lululemon to purchase such
shares in accordance with the provisions of this Article 3.

3.8 Stamp or Other Transfer Taxes

Upon any sale of Exchangeable Shares to Lululemon pursuant to the Exchange Right or the Automatic
Exchange Rights, the Lululemon Common Shares to be delivered in connection with the payment of the
total purchase price therefor shall be issued in the name of the Beneficiary of the Exchangeable
Shares so sold or in such names as such Beneficiary may otherwise direct in writing without charge
to the holder of the Exchangeable Shares so sold; provided, however, that such Beneficiary (a)
shall pay (and none of Lululemon, Exchangeco or the Trustee shall be required to pay) any
documentary, stamp, transfer or other taxes that may be payable in respect of any transfer involved
in the issuance or delivery of such shares to a person other than such Beneficiary or (b) shall
have evidenced to the satisfaction of the Trustee, Lululemon and Exchangeco that such taxes, if
any, have been paid.

3.9 Notice of Insolvency Event

As soon as practicable following the occurrence of an Insolvency Event or any event that with the
giving of notice or the passage of time or both would be an Insolvency Event, Exchangeco and
Lululemon shall give written notice thereof to the Trustee. As soon as practicable following the
receipt of notice from Exchangeco and Lululemon of the occurrence of an Insolvency Event, or upon
the Trustee becoming aware of an Insolvency Event, the Trustee will mail to each

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Beneficiary, at the expense of Lululemon (such funds to be received in advance), a notice of such
Insolvency Event in the form provided by Lululemon, which notice shall contain a brief statement of
the rights of the Beneficiaries with respect to the Exchange Right.

3.10 Qualification of Lululemon Common Shares

Lululemon covenants that if any Lululemon Common Shares (or other shares or securities into which
Lululemon Common Shares may be reclassified or changed as contemplated by section 2.7 of the
Support Agreement) to be issued and delivered pursuant to the Exchange Right or the Automatic
Exchange Rights require registration or qualification with or approval of or the filing of any
document, including any prospectus or similar document, or the taking of any proceeding with or the
obtaining of any order, ruling or consent from any governmental or regulatory authority under any
Canadian or United States federal, provincial or state law or regulation or pursuant to the rules
and regulations of any regulatory authority or the fulfillment of any other Canadian or United
States federal, provincial or state legal requirement before such shares may be issued and
delivered by Lululemon, to the initial holder thereof or in order that such shares (or such other
shares or securities) may be freely traded thereafter (other than any restrictions of general
application on transfer by reason of a holder being a “control person” for purposes of Canadian
provincial securities law or an “affiliate” of Lululemon for purposes of United States federal or
state securities law), Lululemon will in good faith expeditiously take all such actions and do all
such things as are necessary or desirable to cause such Lululemon Common Shares (or such other
shares or securities) to be and remain duly registered, qualified or approved under United States
or Canadian law, as the case may be; provided, however, that Lululemon’s obligations in this
Section 3.10 shall be limited to the obligations set forth in Section 6.4 of the Reorganization
Agreement. Lululemon will in good faith expeditiously take all such actions and do all such things
as are reasonably necessary or desirable to cause all Lululemon Common Shares (or such other shares
or securities) to be delivered pursuant to the Exchange Right or the Automatic Exchange Rights to
be listed, quoted or posted for trading on all stock exchanges and quotation systems on which
outstanding Lululemon Common Shares (or such other shares or securities) have been listed by
Lululemon and remain listed and are quoted or posted for trading at such time.

3.11 Lululemon Common Shares

Lululemon hereby represents, warrants and covenants that the Lululemon Common Shares issuable as
described herein will be duly authorized and validly issued as fully paid and non-assessable and
shall be free and clear of any lien, claim or encumbrance, other than those encumbrances placed by
applicable securities law or otherwise contractually agreed to by the holder thereof.

3.12 Automatic Exchange on Liquidation of Lululemon

	 	(a)	 	Lululemon will give the Trustee written notice of each of the following events
at the time set forth below:

	 	(i)	 	in the event of any determination by the board of directors of
Lululemon to institute voluntary liquidation, dissolution or winding-up
proceedings

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	 	 	 	with respect to Lululemon or to effect any other distribution of assets of
Lululemon among its shareholders for the purpose of winding up its affairs,
at least 60 days prior to the proposed effective date of such liquidation,
dissolution, winding-up or other distribution; and
	 
	 	(ii)	 	as soon as practicable following the earlier of (A) receipt by
Lululemon of notice of, and (B) Lululemon otherwise becoming aware of, any
threatened or instituted claim, suit, petition or other proceedings with
respect to the involuntary liquidation, dissolution or winding-up of Lululemon
or to effect any other distribution of assets of Lululemon among its
shareholders for the purpose of winding up its affairs, in each case where
Lululemon has failed to contest in good faith any such proceeding commenced in
respect of Lululemon within 30 days of becoming aware thereof.

	 	(b)	 	As soon as practicable following receipt by the Trustee from Lululemon of
notice of any event (a “Liquidation Event”) contemplated by Section 3.12(a)(i) or
3.12(a)(ii) above, the Trustee will give notice thereof to the Beneficiaries. Such
notice shall be provided to the Trustee by Lululemon and shall include a brief
description of the automatic exchange of Exchangeable Shares for Lululemon Common
Shares provided for in Section 3.12(c).
	 
	 	(c)	 	In order that the Beneficiaries will be able to participate on a pro rata basis
with the holders of Lululemon Common Shares in the distribution of assets of Lululemon
in connection with a Liquidation Event, on the fifth Business Day prior to the
effective date (the “Liquidation Event Effective Date”) of a Liquidation Event all of
the then outstanding Exchangeable Shares shall be automatically exchanged for Lululemon
Common Shares. To effect such automatic exchange, Lululemon shall purchase on the fifth
Business Day prior to the Liquidation Event Effective Date each Exchangeable Share then
outstanding and held by Beneficiaries, and each Beneficiary shall sell the Exchangeable
Shares held by it at such time, for a purchase price per share equal to (i) the Current
Market Price of a Lululemon Common Share on the fifth Business Day prior to the
Liquidation Event Effective Date, which shall be satisfied in full by Lululemon issuing
to the Beneficiary one Lululemon Common Share, and (ii) to the extent not paid by
Exchangeco, an additional amount equal to and in satisfaction of the full amount of all
declared and unpaid dividends on each such Exchangeable Share held by such holder on
any dividend record date which occurred prior to the date of the exchange. Lululemon
shall provide the Trustee with an Officer’s Certificate in connection with each
automatic exchange setting forth the calculation of the purchase price for each
Exchangeable Share.
	 
	 	(d)	 	On the fifth Business Day prior to the Liquidation Event Effective Date, the
closing of the transaction of purchase and sale contemplated by the automatic exchange
of Exchangeable Shares for Lululemon Common Shares shall be deemed to have occurred,
and each Beneficiary shall be deemed to have transferred to Lululemon, all of the
Beneficiary’s right, title and interest in and to

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	 	 	 	such Beneficiary’s Exchangeable Shares and the related interest in the Trust Estate,
any right of each such Beneficiary to receive declared and unpaid dividends from
Exchangeco shall be deemed to be satisfied and discharged and each such Beneficiary
shall cease to be a holder of such Exchangeable Shares and Lululemon shall deliver
to the Beneficiary the Lululemon Common Shares issuable upon the automatic exchange
of Exchangeable Shares for Lululemon Common Shares and on the applicable payment
date shall deliver to the Trustee for delivery to the Beneficiary a cheque for the
balance, if any, of the total purchase price for such Exchangeable Shares without
interest but less any amounts withheld pursuant to Section 3.13. Concurrently with
such Beneficiary ceasing to be a holder of Exchangeable Shares, the Beneficiary
shall be considered and deemed for all purposes to be the holder of the Lululemon
Common Shares issued pursuant to the automatic exchange of Exchangeable Shares for
Lululemon Common Shares and the certificates, if any, held by the Beneficiary
previously representing the Exchangeable Shares exchanged by the Beneficiary with
Lululemon pursuant to such automatic exchange shall thereafter be deemed to
represent Lululemon Common Shares delivered to the Beneficiary by Lululemon pursuant
to such automatic exchange. Upon the request of a Beneficiary and the surrender by
the Beneficiary of Exchangeable Share certificates, if any, deemed to represent
Lululemon Common Shares, duly endorsed in blank and accompanied by such instruments
of transfer as Lululemon may reasonably require, Lululemon shall deliver or cause to
be delivered to the Beneficiary the Lululemon Common Shares of which the Beneficiary
is the holder (which delivery may be in the form of a certificate or, in whole or in
part, in book entry form through the direct registration system).

3.13 Withholding Rights

Lululemon, Exchangeco and the Trustee shall be entitled to deduct and withhold from any dividend or
any consideration otherwise payable under this Agreement to any holder of Exchangeable Shares or
Lululemon Common Shares such amounts as Lululemon, Exchangeco or the Trustee is required or
permitted to deduct and withhold with respect to such payment (i) under the Income Tax Act (Canada)
(the “ITA”), the United States Internal Revenue Code of 1986 or any provision of provincial, state,
local or foreign tax law, in each case as amended or succeeded or (ii) required or permitted in
order to comply with section 116 of the ITA or any corresponding provisions of provincial laws. The
Trustee may act on the advice of counsel with respect to such matters. To the extent that amounts
are so withheld, such withheld amounts shall be treated for all purposes as having been paid to the
holder of the shares in respect of which such deduction and withholding was made, provided that
such withheld amounts are actually remitted to the appropriate taxing authority. To the extent that
the amount so required to be deducted or withheld from any payment to a holder exceeds the cash
portion of the consideration otherwise payable to the holder, Lululemon, Exchangeco and the Trustee
are hereby authorized to sell or otherwise dispose of such portion of the consideration as is
necessary to provide sufficient funds to Lululemon, Exchangeco or the Trustee, as the case may be,
to enable it to comply with such deduction or withholding requirement and Lululemon, Exchangeco or
the Trustee shall notify the holder thereof and remit to such holder any unapplied balance of the
net
proceeds of such sale. Lululemon represents and warrants that, based upon facts currently

11

 

known to
it, it has no current intention, as at the date of this Agreement, to deduct or withhold from any
dividend paid to holders of Exchangeable Shares any amounts under the United States Internal
Revenue Code of 1986.

ARTICLE 4

CONCERNING THE TRUSTEE

4.1 Powers and Duties of the Trustee

The rights, powers, duties and authorities of the Trustee under this Agreement, in its capacity as
Trustee of the Trust, shall include:

	 	(a)	 	receiving the grant of the Exchange Right and the Automatic Exchange Rights
from Lululemon as Trustee for and on behalf of the Beneficiaries in accordance with the
provisions of this Agreement;
	 
	 	(b)	 	exercising the Exchange Right and enforcing the benefit of the Automatic
Exchange Rights, in each case in accordance with the provisions of this Agreement, and
in connection therewith receiving from Beneficiaries Exchangeable Shares and other
requisite documents and distributing to such Beneficiaries Lululemon Common Shares and
cheques, if any, to which such Beneficiaries are entitled upon the exercise of the
Exchange Right or pursuant to the Automatic Exchange Rights, as the case may be;
	 
	 	(c)	 	holding title to the Trust Estate;
	 
	 	(d)	 	investing any moneys forming, from time to time, a part of the Trust Estate as
provided in this Agreement;
	 
	 	(e)	 	taking action on its own initiative or at the direction of a Beneficiary or
Beneficiaries to enforce the obligations of Lululemon, and Exchangeco under this
Agreement; and
	 
	 	(f)	 	taking such other actions and doing such other things as are specifically
provided in this Agreement.

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 Agreement 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 Beneficiaries and shall exercise the
care, diligence and skill that a reasonably prudent trustee would exercise in comparable
circumstances.

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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 it 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 Agreement 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 No Conflict of Interest

The Trustee represents to Lululemon and Exchangeco that at the date of execution and delivery of
this Agreement there exists no material conflict of interest in the role of the Trustee as a
fiduciary hereunder and the role of the Trustee in any other capacity. The Trustee shall, within 90
days after it becomes aware that such material conflict of interest exists, either eliminate such
material conflict of interest or resign in the manner and with the effect specified in Article 7.
If, notwithstanding the foregoing provisions of this Section 4.2, the Trustee has such a material
conflict of interest, the validity and enforceability of this Agreement shall not be affected in
any manner whatsoever by reason only of the existence of such material conflict of interest. If the
Trustee contravenes the foregoing provisions of this Section 4.2, any interested party may apply to
a court of competent jurisdiction in British Columbia for an order that the Trustee be replaced as
Trustee hereunder.

4.3 Dealings with Transfer Agents, Registrars, etc.

Lululemon and Exchangeco irrevocably authorize the Trustee, from time to time, to:

	 	(a)	 	consult, communicate and otherwise deal with the respective registrars and
transfer agents, and with any such subsequent registrar or transfer agent, of the
Exchangeable Shares and Lululemon Common Shares; and
	 
	 	(b)	 	requisition, from time to time, (i) from any such registrar or transfer agent
any information readily available from the records maintained by it which the Trustee
may reasonably require for the discharge of its duties and responsibilities under this
Agreement and (ii) from the transfer agent of Lululemon Common Shares, and any
subsequent transfer agent of such shares, the share certificates issuable upon the
exercise from time to time of the Exchange Right and pursuant to the Automatic Exchange
Rights.

Lululemon and Exchangeco irrevocably authorize their respective registrars and transfer agents to
comply with all such requests.

4.4 Books and Records

The Trustee shall keep available for inspection by Lululemon and Exchangeco at the Trustee’s
principal office in Vancouver correct and complete books and records of account relating to the
Trust created by this Agreement, including without limitation, all relevant data relating to

13

 

mailings and instructions to and from Beneficiaries and all transactions pursuant to the Exchange
Right and the Automatic Exchange Rights. On or before February 15, 2008, and on or before February
15th in every year thereafter the Trustee shall transmit to Lululemon and Exchangeco a
brief report, dated as of January 31st of that year, with respect to:

	 	(a)	 	the property and funds comprising the Trust Estate as of that date;
	 
	 	(b)	 	the number of exercises of the Exchange Right, if any, and the aggregate number
of Exchangeable Shares received by the Trustee on behalf of Beneficiaries in
consideration of the delivery by Lululemon of Lululemon Common Shares in connection
with the Exchange Right, during the fiscal year ended on such January 31st;
and
	 
	 	(c)	 	any action taken by the Trustee in the performance of its duties under this
Agreement which it had not previously reported and which, in the Trustee’s opinion,
materially affects the Trust Estate.

4.5 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). If requested by
the Trustee, Lululemon or Exchangeco shall retain qualified experts or advisors for the purpose of
providing such tax advice or assistance.

4.6 Indemnification Prior to Certain Actions by Trustee

The Trustee shall exercise any or all of the rights, duties, powers or authorities vested in it by
this Agreement at the request, order or direction of any Beneficiary upon such Beneficiary
furnishing to the Trustee reasonable funding, security or indemnity against the costs, expenses and
liabilities which may be incurred by the Trustee therein or thereby, provided that no Beneficiary
shall be obligated to furnish to the Trustee any such security or indemnity in connection with the
exercise by the Trustee of any of its rights, duties, powers and authorities with respect to the
Exchange Right pursuant to Article 3, subject to Section 4.15, and with respect to the Automatic
Exchange Rights pursuant to Article 3.

None of the provisions contained in this Agreement shall require the Trustee to expend or risk its
own funds or otherwise incur financial liability in the exercise of any of its rights, powers,
duties, or authorities unless funded, given security and indemnified as aforesaid.

4.7 Action of Beneficiaries

No Beneficiary shall have the right to institute any action, suit or proceeding or to exercise any
other remedy authorized by this Agreement for the purpose of enforcing any of its rights or for the
execution of any trust or power hereunder unless the Beneficiary has requested the Trustee to

14

 

take
or institute such action, suit or proceeding and furnished the Trustee with the funding, security
or indemnity referred to in Section 4.6 and the Trustee shall have failed to act within a
reasonable time thereafter. In such case, but not otherwise, the Beneficiary 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 Beneficiaries 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 or the Exchange Rights or the Automatic Exchange Rights 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 Beneficiaries.

4.8 Reliance Upon Declarations

The Trustee shall not be considered to be in contravention of any of its 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 Section 4.9, if applicable, and with any other applicable provisions of this
Agreement.

4.9 Evidence and Authority to Trustee

Lululemon and/or Exchangeco shall furnish to the Trustee evidence of compliance with the conditions
provided for in this Agreement relating to any action or step required or permitted to be taken by
Lululemon, and/or Exchangeco or the Trustee under this Agreement or as a result of any obligation
imposed under this Agreement, including, without limitation, in respect of the Exchange Right or
the Automatic Exchange Rights and the taking of any other action to be taken by the Trustee at the
request of or on the application of Lululemon and/or Exchangeco promptly if and when:

	 	(a)	 	such evidence is required by any other section of this Agreement to be
furnished to the Trustee in accordance with the terms of this Section 4.9; or
	 
	 	(b)	 	the Trustee, in the exercise of its rights, powers, duties and authorities
under this Agreement, gives Lululemon and/or Exchangeco written notice requiring it to
furnish such evidence in relation to any particular action or obligation specified in
such notice.

Such evidence shall consist of an Officer’s Certificate of Lululemon and/or Exchangeco or a
statutory declaration or a certificate made by persons entitled to sign an Officer’s Certificate
stating that any such condition has been complied with in accordance with the terms of this
Agreement.

Whenever such evidence relates to a matter other than the Exchange Right or the Automatic Exchange
Rights or the taking of any other action to be taken by the Trustee at the request or on

15

 

the
application of Lululemon and/or Exchangeco, and except as otherwise specifically provided herein,
such evidence may consist of a report or opinion of any solicitor, attorney, auditor, accountant,
appraiser, valuer, engineer or other expert or any other person whose qualifications give authority
to a statement made by him, provided that if such report or opinion is furnished by a director,
officer or employee of Lululemon and/or Exchangeco it shall be in the form of an Officer’s
Certificate or a statutory declaration.

Each statutory declaration, Officer’s Certificate, opinion or report furnished to the Trustee as
evidence of compliance with a condition provided for in this Agreement shall include a statement by
the person giving the evidence:

	 	(c)	 	declaring that he/she has read and understands the provisions of this Agreement
relating to the condition in question;
	 
	 	(d)	 	describing the nature and scope of the examination or investigation upon which
he/she based the statutory declaration, certificate, statement or opinion; and
	 
	 	(e)	 	declaring that he/she has made such examination or investigation as he/she
believes is necessary to enable him to make the statements or give the opinions
contained or expressed therein.

4.10 Experts, Advisers and Agents

The Trustee may:

	 	(a)	 	in relation to this Agreement act and rely on the opinion or advice of or
information obtained from any solicitor, attorney, auditor, accountant, appraiser,
valuer, engineer or other expert, whether retained by the Trustee or by Lululemon
and/or Exchangeco or otherwise, and may retain or employ such assistants as may be
necessary to the proper discharge of its powers and duties and determination of its
rights hereunder and may pay proper and reasonable compensation for all such legal and
other advice or assistance as aforesaid; and
	 
	 	(b)	 	employ such agents and other assistants as it may reasonably require for the
proper determination and discharge of its powers and duties hereunder, and may pay
reasonable remuneration for all services performed for it (and shall be entitled to
receive reasonable remuneration for all services performed by it) in the discharge of
the trusts hereof and compensation for all disbursements, costs and expenses made or
incurred by it in the discharge of its duties hereunder and in the management of the
Trust.

4.11 Investment of Moneys Held by Trustee

Unless otherwise provided in this Agreement, any moneys held by or on behalf of the Trustee which
under the terms of this Agreement may or ought to be invested or which may be on deposit with the
Trustee or which may be in the hands of the Trustee may be invested and reinvested in the name or
under the control of the Trustee, in trust for Exchangeco, in securities in which, under the laws
of the Province of British Columbia, trustees are authorized to invest

16

 

trust moneys, provided that
such securities are stated to mature within two years after their purchase by the Trustee, and the
Trustee shall so invest such moneys on the written direction of Exchangeco. Pending the investment
of any moneys as hereinbefore provided, such moneys may be deposited in the name of the Trustee in
any chartered bank in Canada or, with the consent of Exchangeco, in the deposit department of the
Trustee or any other loan or trust company authorized to accept deposits under the laws of Canada
or any province thereof at the rate of interest then current on similar deposits. Any income earned
in respect of the Trust Estate which is not used by the Trustee as provided in this Agreement shall
be accumulated by the Trustee and added to the capital of the Trust Estate.

4.12 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 Agreement.

4.13 Trustee Not Bound to Act on Request

Except as in this Agreement otherwise specifically provided, the Trustee shall not be bound to act
in accordance with any direction or request of Lululemon and/or Exchangeco or of the directors
thereof until a duly authenticated copy of the instrument or resolution containing such direction
or request shall have been delivered to the Trustee, and the Trustee shall be empowered to act upon
any such copy purporting to be authenticated and believed by the Trustee to be genuine.

4.14 Authority to Carry on Business

The Trustee represents to Lululemon and Exchangeco that at the date of execution and delivery by it
of this Agreement it is authorized to carry on the business of a trust company in each of the
Provinces of Canada but if, notwithstanding the provisions of this Section 4.14, it ceases to be so
authorized to carry on business, the validity and enforceability of this Agreement and the Exchange
Right and the Automatic Exchange Rights shall not be affected in any manner whatsoever by reason
only of such event but the Trustee shall, within 90 days after ceasing to be authorized to carry on
the business of a trust company in any Province of Canada, either become so authorized or resign in
the manner and with the effect specified in Article 7.

4.15 Conflicting Claims

If conflicting claims or demands are made or asserted with respect to any interest of any
Beneficiary 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
Beneficiary 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 Exchange Rights or Automatic Exchange Rights 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

17

 

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 Exchange Right or
Automatic Exchange 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 Exchange Right or Automatic Exchange 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.

4.16 Acceptance of Trust

The Trustee hereby accepts the Trust created and provided for by and in this Agreement 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 Beneficiaries, subject to all the terms and conditions herein set forth.

ARTICLE 5

COMPENSATION

5.1 Fees and Expenses of the Trustee

Lululemon and Exchangeco jointly and severally agree to pay the Trustee reasonable compensation for
all of the services rendered by it under this Agreement and will reimburse the Trustee for all
reasonable expenses (including, but not limited to, taxes other than taxes based on the net income
of the Trustee, fees paid to legal counsel and other experts and advisors and travel expenses) and
disbursements, including the cost and expense of any suit or litigation of any character and any
proceedings before any governmental agency reasonably incurred by the Trustee in connection with
its duties under this Agreement; provided that Lululemon and Exchangeco shall have no obligation to
reimburse the Trustee for any expenses or disbursements paid, incurred or suffered by the Trustee
in any suit or litigation in which the Trustee is determined to have acted in bad faith or with
negligence, recklessness or wilful misconduct.

ARTICLE 6

INDEMNIFICATION AND LIMITATION OF LIABILITY

6.1 Indemnification of the Trustee

Lululemon and Exchangeco jointly and severally agree to indemnify and hold harmless the Trustee and
each of its directors, officers, employees and agents appointed and acting in

18

 

accordance with this
Agreement (collectively, the “Indemnified Parties”) against all claims, losses, damages, reasonable
costs, penalties, fines and reasonable expenses (including reasonable expenses of the Trustee’s
legal counsel) which, without fraud, negligence, recklessness, wilful misconduct or bad faith on
the part of such Indemnified Party, may be paid, incurred or suffered by the Indemnified Party by
reason or as a result of the Trustee’s acceptance or administration of the Trust, its compliance
with its duties set forth in this Agreement, or any written or oral instruction delivered to the
Trustee by Lululemon or Exchangeco pursuant hereto.

In no case shall Lululemon or Exchangeco be liable under this indemnity for any claim against any
of the Indemnified Parties unless Lululemon and Exchangeco shall be notified by the Trustee of the
written assertion of a claim or of any action commenced against the Indemnified Parties, promptly
after any of the Indemnified Parties shall have received any such written assertion of a claim or
shall have been served with a summons or other first legal process giving information as to the
nature and basis of the claim. Subject to clause (ii) below, Lululemon and Exchangeco shall be
entitled to participate at their own expense in the defence and, if Lululemon and Exchangeco so
elect at any time after receipt of such notice, any of them may assume the defence of any suit
brought to enforce any such claim. The Trustee shall have the right to employ separate counsel in
any such suit and participate in the defence thereof, but the fees and expenses of such counsel
shall be at the expense of the Trustee unless: (i) the employment of such counsel has been
authorized by Lululemon or Exchangeco; or (ii) the named parties to any such suit include both the
Trustee and Lululemon or Exchangeco and the Trustee shall have been advised by counsel acceptable
to Lululemon or Exchangeco that there may be one or more legal defences available to the Trustee
that are different from or in addition to those available to Lululemon or Exchangeco and that, in
the judgment of such counsel, would present a conflict of interest were a joint representation to
be undertaken (in which case Lululemon and Exchangeco shall not have the right to assume the
defence of such suit on behalf of the Trustee but shall be liable to pay the reasonable fees and
expenses of counsel for the Trustee). This indemnity shall survive the termination of this
Agreement and the resignation or removal of the Trustee.

6.2 Limitation of Liability

The Trustee shall not be held liable for 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 Agreement, except to the extent that such loss is attributable to the fraud, negligence,
recklessness, wilful misconduct or bad faith on the part of the Trustee.

ARTICLE 7

CHANGE OF TRUSTEE

7.1 Resignation

The Trustee, or any Trustee hereafter appointed, may at any time resign by giving written notice of
such resignation to Lululemon and Exchangeco specifying the date on which it desires to resign,
provided that such notice shall not be given less than sixty (60) days before such desired
resignation date unless Lululemon and Exchangeco otherwise agree and provided further 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. Upon receiving such notice of

19

 

resignation,
Lululemon and Exchangeco shall promptly appoint a successor trustee, which shall be a corporation
organized and existing under the laws of Canada and authorized to carry on the business of a trust
company in all provinces of Canada, by written instrument in duplicate, one copy of which shall be
delivered to the resigning trustee and one copy to the successor trustee. Failing the appointment
and acceptance of a successor trustee, a successor trustee may be appointed by order of a court of
competent jurisdiction upon application of one or more of the parties to this Agreement. If the
retiring trustee is the party initiating an application for the appointment of a successor trustee
by order of a court of competent jurisdiction, Lululemon and Exchangeco shall be jointly and
severally liable to reimburse the retiring trustee for its legal costs and expenses in connection
with same.

7.2 Removal

The Trustee, or any trustee hereafter appointed, may (provided a successor trustee is appointed) be
removed at any time on not less than 30 days’ prior notice by written instrument executed by
Lululemon and Exchangeco, in duplicate, one copy of which shall be delivered to the trustee so
removed and one copy to the successor trustee.

7.3 Successor Trustee

Any successor trustee appointed as provided under this Agreement shall execute, acknowledge and
deliver to Lululemon and Exchangeco and to its predecessor trustee 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 Agreement, with the
like effect as if originally named as trustee in this Agreement. However, on the written request of
Lululemon and Exchangeco or of the successor trustee, the trustee ceasing to act shall, upon
payment of any amounts then due it pursuant to the provisions of this Agreement, execute and
deliver an instrument transferring to such successor trustee all the rights and powers of the
trustee so ceasing to act. Upon the request of any such successor trustee, Lululemon and Exchangeco
and such predecessor trustee shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor trustee all such rights and powers.

7.4 Notice of Successor Trustee

Upon acceptance of appointment by a successor trustee as provided herein, Lululemon and Exchangeco
shall cause to be mailed notice of the succession of such trustee hereunder to each Beneficiary
specified in a List. If Lululemon or Exchangeco shall fail to cause such notice to be mailed within
10 days after acceptance of appointment by the successor trustee, the successor trustee shall cause
such notice to be mailed at the expense of Lululemon and Exchangeco.

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ARTICLE 8

LULULEMON SUCCESSORS

8.1 Certain Requirements in Respect of Combination, etc.

Lululemon shall not consummate any transaction (whether by way of reconstruction, reorganization,
consolidation, merger, transfer, sale, lease or otherwise) whereby all or substantially all of its
undertaking, property and assets would become the property of any other person or, in the case of a
merger, of the continuing corporation resulting therefrom unless, but may do so if:

	 	(a)	 	such other person or continuing corporation (herein called the “Lululemon
Successor”), by operation of law, becomes, without more, bound by the terms and
provisions of this Agreement or, if not so bound, executes, prior to or
contemporaneously with the consummation of such transaction, a trust agreement
supplemental hereto and such other instruments (if any) as are satisfactory to the
Trustee, acting reasonably, and in the opinion of legal counsel to the Trustee are
reasonably necessary or advisable to evidence the assumption by the Lululemon Successor
of liability for all moneys payable and property deliverable hereunder and the covenant
of such Lululemon Successor to pay and deliver or cause to be delivered the same and
its agreement to observe and perform all the covenants and obligations of Lululemon
under this Agreement; and
	 
	 	(b)	 	such transaction shall, to the satisfaction of the Trustee, acting reasonably,
and in the opinion of legal counsel to the Trustee, be upon such terms and conditions
as substantially to preserve and not to impair in any material respect any of the
rights, duties, powers and authorities of the Trustee or of the Beneficiaries
hereunder.

8.2 Vesting of Powers in Successor

Whenever the conditions of Section 8.1 have been duly observed and performed, the Trustee,
Lululemon Successor and Exchangeco shall, if required by Section 8.1, execute and deliver the
supplemental trust agreement provided for in Article 9 and thereupon Lululemon Successor shall
possess and from time to time may exercise each and every right and power of Lululemon under this
Agreement in the name of Lululemon or otherwise and any act or proceeding by any provision of this
Agreement required to be done or performed by the board of directors of Lululemon or any officers
of Lululemon may be done and performed with like force and effect by the directors or officers of
such Lululemon Successor.

8.3 Wholly-Owned Subsidiaries

Subject to section 2.13 of the Support Agreement, nothing herein shall be construed as preventing
the amalgamation or merger of any wholly-owned direct or indirect subsidiary of Lululemon with or
into Lululemon or the winding-up, liquidation or dissolution of any wholly-owned subsidiary of
Lululemon provided that all of the assets of such subsidiary are
transferred

21

 

to Lululemon or
another wholly-owned direct or indirect subsidiary of Lululemon and any such transactions are
expressly permitted by this Article 8.

ARTICLE 9

AMENDMENTS AND SUPPLEMENTAL TRUST AGREEMENTS

9.1 Amendments, Modifications, etc.

This Agreement may not be amended or modified except by an agreement in writing executed by
Lululemon, Exchangeco and the Trustee and approved by the Beneficiaries in accordance with Section
11.2 of the Exchangeable Share Provisions.

9.2 Ministerial Amendments

Notwithstanding the provisions of Section 9.1, the parties to this Agreement may in writing, at any
time and from time to time, without the approval of the Beneficiaries, amend or modify this
Agreement for the purposes of:

	 	(a)	 	adding to the covenants of any or all parties hereto for the protection of the
Beneficiaries hereunder provided that the board of directors of each of Exchangeco and
Lululemon shall be of the good faith opinion that such additions will not be
prejudicial to the rights or interests of the Beneficiaries;
	 
	 	(b)	 	making such amendments or modifications not inconsistent with this Agreement as
may be necessary or desirable with respect to matters or questions which, in the good
faith opinion of the board of directors of each of Lululemon and Exchangeco and in the
opinion of the Trustee, having in mind the best interests of the Beneficiaries it may
be expedient to make, provided that such boards of directors and the Trustee, acting on
the advice of counsel, shall be of the opinion that such amendments and modifications
will not be prejudicial to the interests of the Beneficiaries; or
	 
	 	(c)	 	making such changes or corrections which, on the advice of counsel to
Lululemon, Exchangeco and 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,
and the board of directors of each of Lululemon and Exchangeco shall be of the opinion,
acting in good faith, that such changes or corrections will not be prejudicial to the
rights and interests of the Beneficiaries.

9.3 Meeting to Consider Amendments

Exchangeco, at the request of Lululemon, shall call a meeting or meetings of the Beneficiaries 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.

22

 

9.4 Changes in Capital of Lululemon and Exchangeco

At all times after the occurrence of any event contemplated pursuant to section 2.7 or 2.8 of the
Support Agreement or otherwise, as a result of which the rights, privileges, restrictions or
conditions of either Lululemon Common Shares or the Exchangeable Shares or both are in any way
changed, this Agreement shall forthwith be amended and modified as necessary in order that it shall
apply with full force and effect, mutatis mutandis, to all new securities into which Lululemon
Common Shares or the Exchangeable Shares or both are so changed and the parties hereto shall
execute and deliver a supplemental trust agreement giving effect to and evidencing such necessary
amendments and modifications.

9.5 Execution of Supplemental Trust Agreements

No amendment to or modification or waiver of any of the provisions of this Agreement otherwise
permitted hereunder shall be effective unless made in writing and signed by all of the parties
hereto. From time to time, Lululemon and Exchangeco (when authorized by a resolution of their
respective board of directors) and the Trustee may, subject to the provisions of this Agreement,
and they shall, when so directed by the provisions of this Agreement, execute and deliver by their
proper officers, trust agreements or other instruments supplemental hereto, which thereafter shall
form part hereof, for any one or more of the following purposes:

	 	(a)	 	evidencing the succession of Lululemon Successors and the covenants of and
obligations assumed by each such Lululemon Successor in accordance with the provisions
of Article 8 and the successors of any successor trustee in accordance with the
provisions of Article 7;
	 
	 	(b)	 	making any additions to, deletions from or alterations of the provisions of
this Agreement or the Exchange Right or the Automatic Exchange Rights which, in the
opinion of the Trustee, will not be prejudicial to the interests of the Beneficiaries
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 Agreement; and
	 
	 	(c)	 	for any other purposes not inconsistent with the provisions of this Agreement,
including without limitation, to make or evidence any amendment or modification to this
Agreement as contemplated hereby, provided that, in the opinion of the Trustee, the
rights of the Trustee and Beneficiaries will not be prejudiced thereby.

ARTICLE 10

TERMINATION

10.1 Term

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

	 	(a)	 	no outstanding Exchangeable Shares are held by a Beneficiary;

23

 

	 	(b)	 	each of Lululemon and Exchangeco elects in writing to terminate the Trust and
such termination is approved by the Beneficiaries in accordance with Section 11.2 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.

10.2 Survival of Agreement

This Agreement shall survive any termination of the Trust and shall continue until there are no
Exchangeable Shares outstanding held by a Beneficiary; provided, however, that the provisions of
Article 5 and Article 6 shall survive any such termination of this Agreement.

ARTICLE 11

GENERAL

11.1 Notices

All notices, requests, claims, demands, waivers and other communications under this Agreement 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 Lululemon or Exchangeco, to:
	 
	 	 	l
	 
	 	 	with a copy to:
	 
	 	 	l
	 
	 	 	If to the Trustee, to:
	 
	 	 	l

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 11.1.

11.2 Notice to Beneficiaries

Any and all notices to be given and documents to be sent to any Beneficiaries may be sent to the
address of such Beneficiary shown on the register of holders of Exchangeable Shares in any manner
permitted by the by-laws of Exchangeco from time to time in force in respect of notice to
shareholders and shall be deemed to be received (if given or sent in such manner) at the time

24

 

specified in such by-laws, the provisions of which by-laws shall apply mutatis mutandis to notices
or documents as aforesaid sent to Beneficiaries.

11.3 Interpretation

When a reference is made in this Agreement to an Article or a section, such reference shall be to
an Article or a section of this Agreement unless otherwise indicated. The table of contents and
headings contained in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement. Whenever the words ‘include’, ‘includes’ or
‘including’ are used in this Agreement, they shall be deemed to be followed by the words ‘without
limitation’. The terms ‘this Agreement’, ‘hereof’, ‘herein’ and ‘hereunder’ and similar expressions
refer to this Agreement 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 Agreement is not a
Business Day, such action shall be required to be taken on the next succeeding Business Day.

11.4 Severability

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule or law, or public policy, all other conditions and provisions of this Agreement 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 Agreement 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.

11.5 Counterparts

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

11.6 Governing Law

This Agreement 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.

11.7 Assignment

Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall
be assigned, in whole or in part, by operation of law or otherwise by any of the parties hereto
without the prior written consent of the other parties. Any purported assignment without such
consent shall be void. Subject to the preceding sentence, this Agreement will be binding upon,

25

 

inure to the benefit of, and be enforceable by, the parties hereto and their respective successors
and assigns.

11.8 Enforcement

The parties hereto agree that irreparable damage would occur in the event that any of the
provisions of this Agreement 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 Agreement and to enforce
specifically the terms and provisions of this Agreement 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 Agreement, (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 Agreement 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 Agreement.

11.9 No Waiver

No provisions of this Agreement 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.

11.10 Expenses

Except as expressly set forth in this Agreement, all costs and expenses and third party fees, paid
or incurred in connection with this Agreement shall be paid in accordance with section 11.2 of the
Reorganization Agreement.

26

 

11.11 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 Agreement.

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

	 	 	 	 	 	 	 	 	 
	LULULEMON CORP.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By :
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	LULU CANADIAN HOLDING INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By :
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	COMPUTERSHARE TRUST COMPANY	 	 	 	 
	OF CANADA	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By :
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By :
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

27Exhibit 10.12

 

Exhibit 10.12

FORM
OF

EXCHANGEABLE SHARE SUPPORT AGREEMENT

Between

LULULEMON CORP.

- and -

LULULEMON
CALLCO ULC

- and -

LULU CANADIAN HOLDING INC.

l, 2007

 

 

SUPPORT AGREEMENT

MEMORANDUM OF AGREEMENT made as of the l day of l, 2007.

AMONG:

LULULEMON CORP., a corporation existing under the laws of the State
of Delaware corporation

(“Lululemon”)

AND:

Lululemon
Callco ULC, an unlimited liability company existing under
the laws of the Province of Alberta

(“Callco”)

AND:

LULU CANADIAN HOLDING, INC., a company existing under the laws of
the Province of British Columbia

(“Exchangeco”)

WHEREAS
in connection with an arrangement agreement (the
“Arrangement Agreement”) dated as of April 26, 2007 among Lululemon, Callco, Exchangeco, LIPO Investments (USA), Inc. and
LIPO Investments (Canada) Inc. (“LIPO Canada”), Exchangeco is to issue exchangeable shares (the
“Exchangeable Shares”) to holders of common shares of LIPO Canada pursuant to the plan of
arrangement (the “Arrangement”) contemplated by the Arrangement Agreement;

AND WHEREAS, pursuant to the Arrangement Agreement, Lululemon, Callco and Exchangeco have agreed to
execute a support agreement substantially in the form of this Agreement;

NOW THEREFORE in consideration of the respective covenants and agreements provided in this
Agreement and for other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the parties hereto covenant and agree as follows:

ARTICLE 1

DEFINITIONS

1.1 Defined Terms

Each term denoted herein by initial capital letters and not otherwise defined herein shall have the
meaning ascribed thereto in the rights, privileges, restrictions and conditions (collectively, the

 

 

“Exchangeable Share Provisions”) attaching to the Exchangeable Shares attached as Appendix 1 to the
Plan of Arrangement as set out in the Articles of Arrangement of Exchangeco, unless the context
requires otherwise.

ARTICLE 2

COVENANTS OF LULULEMON, CALLCO AND EXCHANGECO

2.1 Covenants Regarding Exchangeable Shares

So long as any Exchangeable Shares not owned by Lululemon or its subsidiaries are outstanding,
Lululemon will:

	 	(a)	 	not declare or pay any dividend on the Lululemon Common Shares unless (i) in
the case of a cash dividend on Lululemon Common Shares, (A) Exchangeco shall
simultaneously declare or pay, as the case may be, an equivalent dividend as provided
for in the Exchangeable Share Provisions on the Exchangeable Shares, and (B) Exchangeco
shall have sufficient money or other assets available to enable the due declaration and
the due and punctual payment, in accordance with applicable law, of any such dividend
on the Exchangeable Shares or (ii) in the case of a stock dividend on Lululemon Common
Shares, (A) Exchangeco shall subdivide the Exchangeable Shares in lieu of a stock
dividend thereon as provided for in the Exchangeable Share Provisions and (B)
Exchangeco shall have sufficient authorized but unissued securities available to enable
such subdivision;
	 
	 	(b)	 	advise Exchangeco sufficiently in advance of the declaration by Lululemon of
any dividend on the Lululemon Common Shares and take all such other actions as are
reasonably necessary, in co-operation with Exchangeco, to ensure that (i) the
respective declaration date, record date and payment date for a dividend on the
Exchangeable Shares shall be the same as the declaration date, record date and payment
date for the corresponding dividend on the Lululemon Common Shares or (ii) the record
date and effective date for the subdivision of Exchangeable Shares shall be the same as
the record date and payment date for the stock dividend on the Lululemon Common Shares;
	 
	 	(c)	 	ensure that the record date for any dividend declared on the Lululemon Common
Shares is not less than 10 Business Days after the declaration date of such dividend;
	 
	 	(d)	 	take all such actions and do all such things as are reasonably necessary or
desirable to enable and permit Exchangeco, in accordance with applicable law, to pay
and otherwise perform its obligations with respect to the satisfaction of the
Liquidation Amount, the Retraction Price or the Redemption Price in respect of each
issued and outstanding Exchangeable Share (other than Exchangeable Shares owned by
Lululemon or its subsidiaries) upon the liquidation, dissolution or winding-up of
Exchangeco, the delivery of a Retraction Request by a holder of Exchangeable Shares or
a redemption of Exchangeable Shares by Exchangeco, as the case may be, including
without limitation all such actions and all such things

2

 

	 	 	 	as are necessary or desirable to enable and permit Exchangeco to cause to be
delivered Lululemon Common Shares to the holders of Exchangeable Shares in
accordance with the provisions of Article 5, Article 6, or Article 7, as the case
may be, of the Exchangeable Share Provisions; and
	 
	 	(e)	 	take all such actions and do all such things as are reasonably necessary or
desirable to enable and permit Callco, in accordance with applicable law, to perform
its obligations arising upon the exercise by it of the Liquidation Call Right, the
Retraction Call Right or the Redemption Call Right, including without limitation all
such actions and all such things as are necessary or desirable to enable and permit
Callco to cause to be delivered Lululemon Common Shares to the holders of Exchangeable
Shares in accordance with the provisions of the Liquidation Call Right, the Retraction
Call Right or the Redemption Call Right, as the case may be.

2.2 Segregation of Funds

Lululemon and Callco will cause Exchangeco to deposit a sufficient amount of funds in a separate
account of Exchangeco and segregate a sufficient amount of such other assets and property as is
necessary to enable Exchangeco to pay dividends when due and to pay or otherwise satisfy its
respective obligations under Article 5, Article 6, or Article 7 of the Exchangeable Share
Provisions, as applicable.

2.3 Reservation of Lululemon Common Shares

Lululemon hereby represents, warrants and covenants in favour of Callco and Exchangeco that
Lululemon has reserved for issuance and will, at all times while any Exchangeable Shares (other
than Exchangeable Shares held by Lululemon or its subsidiaries) are outstanding, keep available,
free from pre-emptive and other rights, out of its authorized and unissued capital stock such
number of Lululemon Common Shares (or other shares or securities into which the Lululemon Common
Shares may be reclassified or changed as contemplated by Section 2.7 hereof) (a) as is equal to the
sum of (i) the number of Exchangeable Shares issued and outstanding from time to time (other than
Exchangeable Shares held by Lululemon or its subsidiaries), and (ii) the number of Exchangeable
Shares issuable upon the exercise of all rights to acquire Exchangeable Shares outstanding from
time to time; and (b) as are now and may hereafter be required to enable and permit Lululemon and
Callco to meet their obligations under the Exchange Trust Agreement and under any other security or
commitment pursuant to which Callco may now or hereafter be required to deliver Lululemon Common
Shares, to enable and permit Callco to meet its obligations under each of the Liquidation Call
Right, the Retraction Call Right and the Redemption Call Right and to enable and permit Exchangeco
to meet its respective obligations hereunder and under the Exchangeable Share Provisions.

2.4 Notification of Certain Events

In order to assist Lululemon and Callco to comply with its obligations hereunder and to permit
Callco to exercise the Liquidation Call Right, the Retraction Call Right and the Redemption Call

3

 

Right, Exchangeco will notify Lululemon and Callco of each of the following events at the time set
forth below:

	 	(a)	 	in the event of any determination by the board of directors of Exchangeco to
institute voluntary liquidation, dissolution or winding-up proceedings with respect to
Exchangeco or to effect any other distribution of the assets of Exchangeco among its
shareholders for the purpose of winding up its affairs, at least 60 days prior to the
proposed effective date of such liquidation, dissolution, winding-up or other
distribution;
	 
	 	(b)	 	promptly, upon the earlier of receipt by Exchangeco of notice and Exchangeco
otherwise becoming aware of any threatened or instituted claim, suit, petition or other
proceedings with respect to the involuntary liquidation, dissolution or winding-up of
Exchangeco or to effect any other distribution of the assets of Exchangeco among its
shareholders for the purpose of winding up its affairs;
	 
	 	(c)	 	promptly, upon receipt by Exchangeco of a Retraction Request;
	 
	 	(d)	 	on the same date on which notice of redemption is given to holders of
Exchangeable Shares, upon the determination of a Redemption Date in accordance with the
Exchangeable Share Provisions; and
	 
	 	(e)	 	as soon as practicable upon the issuance by Exchangeco of any Exchangeable
Shares or rights to acquire Exchangeable Shares (other than the issuance of
Exchangeable Shares and rights to acquire Exchangeable Shares in exchange for
outstanding LIPO Canada common shares pursuant to the Arrangement).

2.5 Delivery of Lululemon Common Shares to Exchangeco and Callco

In furtherance of its obligations under Sections 2.1(d) and 2.1(e) hereof, upon notice from
Exchangeco or Callco of any event that requires Exchangeco or Callco, to cause to be delivered
Lululemon Common Shares to any registered holder of Exchangeable Shares, Lululemon shall, in any
manner deemed appropriate by it, provide or cause to be provided to Exchangeco or Callco, either in
the form of a share certificate or in book entry form through the direct registration system, the
requisite number of Lululemon Common Shares to be received by, and issued to or to the order of,
the former holder of the surrendered Exchangeable Shares, as Exchangeco or Callco shall direct. All
such Lululemon Common Shares shall be duly authorized and validly issued as fully paid and
non-assessable and shall be free and clear of any lien, claim or encumbrance.

2.6 Qualification of Lululemon Common Shares

Lululemon covenants that if any Lululemon Common Shares (or other shares or securities into which
Lululemon Common Shares may be reclassified or Changed as contemplated by Section 2.7 hereof) to be
issued and delivered hereunder (including for greater certainty, pursuant to the Exchangeable Share
Provisions or pursuant to the Exchange Right or the Automatic Exchange Rights) require registration
or qualification with or approval of or the filing
of any document, including any prospectus or similar document, or the taking of any proceeding

4

 

with or the obtaining of any order, ruling or consent from any governmental or regulatory authority
under any Canadian or United States federal, provincial or state securities or other law or
regulation or pursuant to the rules and regulations of any securities or other regulatory authority
or the fulfillment of any other United States or Canadian legal requirement before such shares (or
such other shares or securities) may be issued by Lululemon and delivered by Callco or Exchangeco,
as the case may be, to the registered holder of Exchangeable Shares thereof or in order that such
shares (or such other shares or securities) may be freely traded thereafter (other than any
restrictions of general application on transfer by reason of a holder being a “control person” for
purposes of Canadian provincial securities law or an “affiliate” of Lululemon for purposes of
United States federal or state securities law), Lululemon will in good faith expeditiously take all
such actions and do all such things as are necessary or desirable to cause such Lululemon Common
Shares (or such other shares or securities) to be and remain duly registered, qualified or approved
under United States and/or Canadian law, as the case may be; provided, however, that Lululemon’s
obligations in this Section 2.6 shall be limited to the obligations set forth in Section 6.4 of the
Reorganization Agreement. Lululemon will in good faith expeditiously take all such actions and do
all such things as are reasonably necessary or desirable to cause all Lululemon Common Shares (or
such other shares or securities) to be delivered hereunder to be listed, quoted or posted for
trading on all stock exchanges and quotation systems on which outstanding Lululemon Common Shares
(or such other shares or securities) have been listed by Lululemon and remain listed and are quoted
or posted for trading at such time.

2.7 Economic Equivalence

So long as any Exchangeable Shares not owned by Lululemon or its subsidiaries are outstanding:

	 	(a)	 	Other than as permitted in Section 2.1, Lululemon will not without the prior
approval of Exchangeco and the prior approval of the holders of the Exchangeable Shares
given in accordance with Section 11.2 of the Exchangeable Share Provisions:

	 	(i)	 	issue or distribute Lululemon Common Shares (or securities
exchangeable for or convertible into or carrying rights to acquire Lululemon
Common Shares) to the holders of all or substantially all of the then
outstanding Lululemon Common Shares by way of a stock dividend or other
distribution, other than an issue of Lululemon Common Shares (or securities
exchangeable for or convertible into or carrying rights to acquire Lululemon
Common Shares) to holders of Lululemon Common Shares who (A) exercise an option
to receive dividends in Lululemon Common Shares (or securities exchangeable for
or convertible into or carrying rights to acquire Lululemon Common Shares) in
lieu of receiving cash dividends, or (B) pursuant to any dividend reinvestment
plan; or
	 
	 	(ii)	 	issue or distribute rights, options or warrants to the holders
of all or substantially all of the then outstanding Lululemon Common Shares
entitling them to subscribe for or to purchase Lululemon Common Shares

5

 

	 	 	 	(or securities exchangeable for or convertible into or carrying rights to
acquire Lululemon Common Shares); or
	 
	 	(iii)	 	issue or distribute to the holders of all or substantially all
of the then outstanding Lululemon Common Shares (A) shares or securities of
Lululemon of any class other than Lululemon Common Shares (other than shares
convertible into or exchangeable for or carrying rights to acquire Lululemon
Common Shares), (B) rights, options or warrants other than those referred to in
Section 2.7(a)(ii) above, (C) evidences of indebtedness of Lululemon, or (D)
assets of Lululemon,

	 	 	 	unless the same or the economic equivalent on a per share basis of such rights,
options, securities, shares, evidences of indebtedness or other assets is issued or
distributed simultaneously to holders of the Exchangeable Shares.
	 
	 	(b)	 	Lululemon will not without the prior approval of Exchangeco and the prior
approval of the holders of the Exchangeable Shares given in accordance with Section
11.2 of the Exchangeable Share Provisions:

	 	(i)	 	subdivide, redivide or change the then outstanding Lululemon
Common Shares into a greater number of Lululemon Common Shares; or
	 
	 	(ii)	 	reduce, combine, consolidate or change the then outstanding
Lululemon Common Shares into a lesser number of Lululemon Common Shares; or
	 
	 	(iii)	 	reclassify or otherwise change the Lululemon Common Shares or
effect an amalgamation, merger, reorganization or other transaction affecting
the Lululemon Common Shares,

	 	 	 	unless the same or an economically equivalent change shall simultaneously be made
to, or in, the rights of the holders of the Exchangeable Shares.
	 
	 	(c)	 	Lululemon will ensure that the record date for any event referred to in Section
2.7(a) or 2.7(b) above, or (if no record date is applicable for such event) the
effective date for any such event, is not less than five Business Days after the date
on which such event is declared or announced by Lululemon (with contemporaneous
notification thereof by Lululemon to Exchangeco).
	 
	 	(d)	 	The Board of Directors shall determine, in good faith and in its sole
discretion, economic equivalence for the purposes of any event referred to in Section
2.7(a) or 2.7(b) above and each such determination shall be conclusive and binding on
Lululemon and its shareholders. In making each such determination, the following
factors shall, without excluding other factors determined by the Board of Directors to
be relevant, be considered by the Board of Directors:

	 	(i)	 	in the case of any stock dividend or other distribution payable
in Lululemon Common Shares, the number of such shares issued in

6

 

	 	 	 	proportion to the number of Lululemon Common Shares previously outstanding;
	 
	 	(ii)	 	in the case of the issuance or distribution of any rights,
options or warrants to subscribe for or purchase Lululemon Common Shares (or
securities exchangeable for or convertible into or carrying rights to acquire
Lululemon Common Shares), the relationship between the exercise price of each
such right, option or warrant and the Current Market Price;
	 
	 	(iii)	 	in the case of the issuance or distribution of any other form
of property (including without limitation any shares or securities of Lululemon
of any class other than Lululemon Common Shares, any rights, options or
warrants other than those referred to in Section 2.7(d)(ii) above, any
evidences of indebtedness of Lululemon or any assets of Lululemon), the
relationship between the fair market value (as determined by the Board of
Directors in the manner above contemplated) of such property to be issued or
distributed with respect to each outstanding Lululemon Common Share and the
Current Market Price;
	 
	 	(iv)	 	in the case of any subdivision, redivision or change of the
then outstanding Lululemon Common Shares into a greater number of Lululemon
Common Shares or the reduction, combination, consolidation or change of the
then outstanding Lululemon Common Shares into a lesser number of Lululemon
Common Shares or any amalgamation, merger, reorganization or other transaction
affecting Lululemon Common Shares, the effect thereof upon the then outstanding
Lululemon Common Shares; and
	 
	 	(v)	 	in all such cases, the general taxation consequences of the
relevant event to holders of Exchangeable Shares to the extent that such
consequences may differ from the general taxation consequences to holders of
Lululemon Common Shares as a result of differences between taxation laws of
Canada and the United States (except for any differing consequences arising as
a result of differing marginal taxation rates and without regard to the
individual circumstances of holders of Exchangeable Shares).

	 	(e)	 	Exchangeco agrees that, to the extent required, upon due notice from Lululemon,
Exchangeco will use its best efforts to take or cause to be taken such steps as may be
necessary for the purposes of ensuring that appropriate dividends are paid or other
Distributions are made by Exchangeco, or subdivisions, redivisions or Changes are made
to the Exchangeable Shares, in order to implement the required economic equivalent with
respect to the Lululemon Common Shares and Exchangeable Shares as provided for in this
Section 2.7. Without limiting the generality of the foregoing, the Board of Directors
of Exchangeco may, acting in good faith, adjust the number of Lululemon Common Shares
into which an Exchangeable Share is exchangeable (which initially is one) to reflect
the

7

 

	 	 	 	economic equivalent of the relationship between the Lululemon Common Shares and the
Exchangeable Shares.
	 
	 	(f)	 	Nothing in this Agreement shall affect the rights of Exchangeco to redeem (or
Callco to purchase pursuant to the Redemption Call Right) Exchangeable Shares, as
applicable in the event of a Lululemon Extraordinary Distribution.

2.8 Tender Offers

In the event that a tender offer, share exchange offer, issuer bid, take-over bid or similar
transaction with respect to Lululemon Common Shares (an “Offer”) is proposed by Lululemon or is
proposed to Lululemon or its shareholders and is recommended by the board of directors of
Lululemon, or is otherwise effected or to be effected with the consent or approval of the board of
directors of Lululemon, and the Exchangeable Shares are not redeemed by Exchangeco or purchased by
Callco pursuant to the Redemption Call Right, Lululemon will use its reasonable efforts
expeditiously and in good faith to take all such actions and do all such things as are necessary or
desirable to enable and permit holders of Exchangeable Shares (other than Lululemon and its
subsidiaries) to participate in such Offer to the same extent or on an economically equivalent
basis as the holders of Lululemon Common Shares, without discrimination. Without limiting the
generality of the foregoing, Lululemon will use its reasonable efforts expeditiously and in good
faith to ensure that holders of Exchangeable Shares may participate in each such Offer without
being required to retract Exchangeable Shares as against Exchangeco (or, if so required, to ensure
that any such retraction shall be effective only upon, and shall be conditional upon, the closing
of such Offer and only to the extent necessary to tender or deposit to the Offer). Nothing herein
shall affect the rights of Exchangeco to redeem (or Callco to purchase pursuant to the Redemption
Call Right) Exchangeable Shares, as applicable, in the event of a Lululemon Control Transaction.

2.9 Ownership of Outstanding Shares

Without the prior approval of Exchangeco and the prior approval of the holders of the Exchangeable
Shares given in accordance with Section 11.2 of the Exchangeable Share Provisions, Lululemon
covenants and agrees in favour of Exchangeco that, as long as any outstanding Exchangeable Shares
are owned by any person other than Lululemon or any of its subsidiaries, Lululemon will be and
remain the direct or indirect beneficial owner of all issued and outstanding voting shares in the
capital of Exchangeco and Callco.

2.10 Lululemon and Subsidiaries Not to Vote Exchangeable Shares

Lululemon covenants and agrees that it will appoint and cause to be appointed proxyholders with
respect to all Exchangeable Shares held by it and its subsidiaries for the sole purpose of
attending each meeting of holders of Exchangeable Shares in order to be counted as part of the
quorum for each such meeting. Lululemon further covenants and agrees that it will not, and will
cause its subsidiaries not to, exercise any voting rights which may be exercisable by holders of
Exchangeable Shares from time to time pursuant to the Exchangeable Share Provisions or pursuant to
the provisions of the Act (or any successor or other corporate statute by which Exchangeco may in
the future be governed) with respect to any Exchangeable Shares held by it

8

 

or by its subsidiaries in respect of any matter considered at any meeting of holders of
Exchangeable Shares.

2.11 Rule 10b-18 Purchases

Nothing contained in this Agreement, including without limitation the obligations of Lululemon
contained in Section 2.8, shall limit the ability of Lululemon, Callco or Exchangeco to make a
“Rule 10b-18 Purchase” of Lululemon Common Shares pursuant to Rule 10b-18 of the United States
Securities Exchange Act of 1934, as amended.

2.12 Restriction on Voluntary Dissolution and Continuance

Lululemon shall not, and agrees to cause Callco to not, take any action relating to (a) a voluntary
liquidation, dissolution or winding-up of Exchangeco or its successors or Callco or its successors,
as the case may be, prior to the Redemption Date or (b) the continuance or other transfer of the
corporate existence of Exchangeco to any jurisdiction outside of Canada prior to the Redemption
Date.

2.13 Mailings to Registered Holders of Exchangeable Shares

With respect to each meeting of shareholders of Lululemon at which holders of Lululemon Common
Shares are entitled to vote and with respect to all written consents sought by Lululemon from its
shareholders including the holders of Lululemon Common Shares, Lululemon will mail or cause to be
mailed (or otherwise communicate in the same manner as Lululemon utilizes in communications to
holders of Lululemon Common Shares subject to applicable regulatory requirements) to each
registered holder of Exchangeable Shares, such mailing or communication to commence on the same day
as the mailing or notice (or other communication) with respect thereto is commenced by Lululemon to
its shareholders a copy of such notice, together with any related materials, including, without
limitation, any proxy or information statement, to be provided to shareholders of Lululemon.

2.14 Other Materials

As soon as reasonably practicable after receipt by Lululemon or holders of Lululemon Common Shares
(if such receipt is known by Lululemon) of any material sent or given by or on behalf of a third
party to holders of Lululemon Common Shares generally, including without limitation, dissident
proxy and information circulars (and related information and material) and tender and exchange
offer circulars (and related information and material), Lululemon shall use its reasonable efforts
to obtain and deliver a copy thereof (unless the same has been provided directly to registered
holders of Exchangeable Shares by such third party) to each holder of Exchangeable Share as soon as
possible thereafter. Lululemon will also make available for inspection by any registered holder of
Exchangeable Shares at its principal executive offices in the City of Vancouver copies of all such
materials.

2.15 Distribution of Written Materials

Any written materials distributed by Lululemon pursuant to this Agreement shall be sent by mail (or
otherwise communicated in the same manner as Lululemon utilizes in communications to

9

 

holders of
Lululemon Common Shares subject to applicable regulatory requirements) to each holder of
Exchangeable Share at its address as shown on the books of Exchangeco. Lululemon agrees not to
communicate with holders of Lululemon Common Shares with respect to such written materials
otherwise than by mail unless such method of communication is also used by it for communication
with the registered holders of Exchangeable Shares. Exchangeco shall provide or cause to be
provided to Lululemon for purposes of communication, on a timely basis and without charge or other
expense a current list of registered holders of Exchangeable Shares.

ARTICLE 3

LULU SUCCESSORS

3.1 Certain Requirements in Respect of Combination, etc.

Lululemon shall not consummate any transaction (whether by way of reconstruction, reorganization,
consolidation, merger, transfer, sale, lease or otherwise) whereby all or substantially all of its
undertaking, property and assets would become the property of any other person or, in the case of a
merger, of the continuing corporation resulting therefrom unless, but may do so if:

	 	(a)	 	such other person or continuing corporation (the “Lululemon Successor”) by
operation of law, becomes bound by the terms and provisions of this Agreement or, if
not so bound, executes, prior to or contemporaneously with the consummation of such
transaction, an agreement supplemental hereto and such other instruments (if any) as
are reasonably necessary or advisable to evidence the assumption by the Lululemon
Successor of liability for all moneys payable and property deliverable hereunder and
the covenant of such Lululemon Successor to pay and deliver or cause to be delivered
the same and its agreement to observe and perform all the covenants and obligations of
Lululemon under this Agreement; and
	 
	 	(b)	 	such transaction shall be upon such terms and conditions as substantially to
preserve and not to impair in any material respect any of the rights, duties, powers
and authorities of the other parties hereunder.

3.2 Vesting of Powers in Successor

Whenever the conditions of Section 3.1 have been duly observed and performed, the parties, if
required by Section 3.1, shall execute and deliver the supplemental agreement provided for in
Section 3.1(a) and thereupon the Lululemon Successor shall possess and from time to time may
exercise each and every right and power of Lululemon under this Agreement in the name of Lululemon
or otherwise and any act or proceeding by any provision of this Agreement required to be done or
performed by the board of directors of Lululemon or any officers of Lululemon
may be done and performed with like force and effect by the directors or officers of such Lululemon
Successor.

10

 

3.3 Wholly-Owned Subsidiaries

Nothing herein shall be construed as preventing the amalgamation or merger of any wholly-owned
direct or indirect subsidiary of Lululemon with or into Lululemon or, subject to Section 2.12
hereof, the winding-up, liquidation or dissolution of any wholly-owned subsidiary of Lululemon
provided that all of the assets of such subsidiary are transferred to Lululemon or another
wholly-owned direct or indirect subsidiary of Lululemon and any such transactions are expressly
permitted by this Article 3.

ARTICLE 4

GENERAL

4.1 Term

This Agreement shall come into force and be effective as of the date hereof and shall terminate and
be of no further force and effect at such time as no Exchangeable Shares (or securities or rights
convertible into or exchangeable for or carrying rights to acquire Exchangeable Shares) are held by
any person other than Lululemon and any of its subsidiaries.

4.2 Changes in Capital of Lululemon and Exchangeco

At all times after the occurrence of any event contemplated pursuant to Sections 2.7 and 2.8 hereof
or otherwise, as a result of which either Lululemon Common Shares or the Exchangeable Shares or
both are in any way Changed, this Agreement shall forthwith be amended and modified as necessary in
order that it shall apply with full force and effect, mutatis mutandis, to all new securities into
which Lululemon Common Shares or the Exchangeable Shares or both are so Changed and the parties
hereto shall execute and deliver an agreement in writing giving effect to and evidencing such
necessary amendments and modifications.

4.3 Severability

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule or law, or public policy, all other conditions and provisions of this Agreement 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 Agreement 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.

4.4 Amendments, Modifications

This Agreement may not be amended or modified except by an agreement in writing executed by
Exchangeco, Callco and Lululemon and approved by the holders of the Exchangeable Shares in
accordance with Section 11.2 of the Exchangeable Share Provisions.

11

 

4.5 Ministerial Amendments

Notwithstanding the provisions of Section 4.4, the parties to this Agreement may in writing at any
time and from time to time, without the approval of the holders of the Exchangeable Shares, amend
or modify this Agreement for the purposes of:

	 	(a)	 	adding to the covenants of any or all parties provided that the board of
directors of each of Exchangeco, Callco and Lululemon shall be of the good faith
opinion that such additions will not be prejudicial to the rights or interests of the
holders of the Exchangeable Shares;
	 
	 	(b)	 	making such amendments or modifications not inconsistent with this Agreement as
may be necessary or desirable with respect to matters or questions which, in the good
faith opinion of the board of directors of each of Exchangeco, Callco and Lululemon, it
may be expedient to make, provided that each such board of directors shall be of the
good faith opinion that such amendments or modifications will not be prejudicial to the
rights or interests of the holders of the Exchangeable Shares; or
	 
	 	(c)	 	making such Changes or corrections which, on the advice of counsel to
Exchangeco, Callco and Lululemon, 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 boards of directors of each of Exchangeco, Callco and
Lululemon shall be of the good faith opinion that such Changes or corrections will not
be prejudicial to the rights or interests of the holders of the Exchangeable Shares.

4.6 Meeting to Consider Amendments

Exchangeco, at the request of Lululemon, shall call a meeting or meetings of the holders of the
Exchangeable Shares for the purpose of considering any proposed amendment or modification requiring
approval pursuant to Section 4.4 hereof. 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.

4.7 Amendments Only in Writing

No amendment to or modification or waiver of any of the provisions of this Agreement otherwise
permitted hereunder shall be effective unless made in writing and signed by all of the parties
hereto.

4.8 Notices

All notices, requests, claims, demands, waivers and other communications under this Agreement 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

12

 

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:

	 	(a)	 	If to Lululemon, to:
	 
	 	 	 	l
	 
	 	 	 	with a copy to:
	 
	 	 	 	l
	 
	 	(b)	 	If to Exchangeco, to:
	 
	 	 	 	l
	 
	 	 	 	with a copy to:
	 
	 	 	 	l
	 
	 	(c)	 	If to Callco, to:
	 
	 	 	 	l
	 
	 	 	 	with a copy to:
	 
	 	 	 	l

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 4.8.

4.9 Interpretation

When a reference is made in this Agreement to an Article or a section, such reference shall be to
an Article or a section of this Agreement unless otherwise indicated. The table of contents and
headings contained in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or
“including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation”. The terms “this Agreement”, “hereof”, “herein” and “hereunder” and similar expressions
refer to this Agreement 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 Agreement is not a
Business Day, such action shall be required to be taken on the next succeeding Business Day. For
the purposes of this Agreement, a “Business Day” means any day on which commercial banks are
generally open for business in Vancouver, British Columbia, 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.

13

 

4.10 Counterparts

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

4.11 Governing Law

This Agreement 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.

4.12 Assignment

Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall
be assigned, in whole or in part, by operation of law or otherwise by any of the parties hereto
without the prior written consent of the other parties. Any purported assignment without such
consent shall be void. Subject to the preceding sentence, this Agreement will be binding upon,
inure to the benefit of, and be enforceable by, the parties hereto and their respective successors
and assigns.

4.13 Enforcement

The parties hereto agree that irreparable damage would occur in the event that any of the
provisions of this Agreement 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 this Agreement and to enforce specifically the
terms and provisions of this Agreement 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 Agreement, (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 Agreement 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 Agreement.

4.14 No Waiver

No provisions of this Agreement 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.

4.15 Expenses

Except as expressly set forth in this Agreement, all costs and expenses and third party fees, paid
or incurred in connection with this Agreement shall be paid in accordance with section 11.2 of the
Reorganization Agreement.

14

 

4.16 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 Agreement.

15

 

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

LULULEMON CORP.

	 	 	 	 	 
	By :
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name :	 	 
	 

	 	Title :	 	 
	 
	 	 	 	 
	LULULEMON CALLCO ULC	 	 
	 
	 	 	 	 
	By :
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name :	 	 
	 

	 	Title :	 	 
	 
	 	 	 	 
	LULU CANADIAN HOLDING INC.	 	 
	 
	 	 	 	 
	By :
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name :	 	 
	 

	 	Title :	 	 

16

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