Document:

lulu-2014.11.02-EX 10.13

Exhibit 10.13

Private & Confidential
This Agreement is dated for reference as of November 17, 2014
To:    Scott (Duke) Stump
Re:    Executive Employment Agreement
Dear Duke:
This Agreement contains the terms and conditions of our offer of employment in the position of Executive Vice President, Community and Brand. This Agreement will take effect as of the Effective Date and will continue until terminated in accordance with its terms.
If you accept employment on the terms and conditions set out below, please execute this Agreement where indicated.
ARTICLE 1 - INTERPRETATION
1.01    Definitions
In this Agreement, unless something in the subject matter or context is inconsistent
therewith:
“Affiliate” has the meaning attributed to such term in the Canada Business Corporations Act and includes each direct and indirect subsidiary of the Company and any other entities, including joint ventures and franchises, in which the Company has an interest.
“Agreement” means this agreement, including its recitals and schedules, as amended from time to time in accordance with Section 6.04.
“Approvals” means collectively, a Canadian work permit and all other necessary authorizations and approvals for the Executive to work in Canada for the Company under the terms of this Agreement.
“Base Salary” has the meaning attributed to such term in Section 3.01.
“Board” means the board of directors of lululemon athletica inc. in office from time to time.
“Bonus Plan” means the Company's Executive Bonus Plan as amended by the Company from year to year.
“Cause” includes, without limitation, the usual meaning of just cause under the common law or the laws of British Columbia.  In the event the Company believes such “just cause” exists, the Executive will have 15 days from receipt of written notice from the Company to cure the issue, if curable, which notice shall specifically identify the applicable Cause and how it shall be cured, and failure to timely effect such cure shall entitle the Company to terminate the Executive’s employment for Cause.

“Company” means lululemon athletica inc.
“Compensation Committee” means the compensation committee of the Board.
“Confidential Information” means information disclosed to or known by the Executive as a consequence of or through the Executive’s employment with the Company about the Company’s or any of its Affiliates’ products, operations, research, processes or services, including but not limited to all information relating to research, development, inventions, copyrights, patents, industrial designs, licenses, manufacture, production, distribution, purchasing, accounting, financing, engineering, marketing, merchandising, selling, and other technical or business information or trade secrets of the Company or any of its Affiliates, or about any of the Company’s or any of its Affiliates’ customers, suppliers, vendors or business affiliates and also includes any information that the Company has received from others that the Company is obligated to treat as confidential or proprietary, but Confidential Information does not include information which is or becomes generally available to the public through no fault of the Executive or which the Executive can establish, through written records, was in the Executive’s possession prior to its disclosure to the Executive as a result of the Executive’s work for the Company.
“Effective Date” of this Agreement means Nov 24, 2014. 
“Executive” means Scott (Duke) Stump.
“Good Reason” means (a) any material adverse change in the Executive’s title or diminution of his responsibilities; (b) a reduction in the Executive’s Base Salary or bonus target; or (c) the Company’s breach of any of the other material terms of this Agreement; provided, however, that the Executive shall provide written notice to the Company of the grounds on which Good Reason is asserted and the Company shall have fifteen (15) days to cure the issue, if curable, and failure to timely cure shall entitle the Executive to terminate his employment for Good Reason.
“Plan” means lululemon athletica inc.’s 2014 Equity Incentive Plan, as amended or replaced from time to time.
“Relocation” has the meaning attributed to such term in Section 2.03(2).
“Restrictive Covenant Agreement” has the meaning attributed to such term in Section 
“Termination Date” has the meaning attributed to such term in Section 5.01.
ARTICLE 2 - EMPLOYMENT
2.01    Employment
(1)Subject to the terms and conditions of this Agreement, the Company will, commencing on the Effective Date, employ the Executive in the position of EVP, Community and Brand, on the terms and conditions set out herein.
(2)The Executive will report directly to the Chief Executive Officer, currently Laurent Potdevin.  

(3)The Executive shall perform duties and responsibilities as are normally provided by an EVP, Community and Brand of a corporation in a business and of a size similar to the Company and such other duties and responsibilities as may reasonably be assigned from time to time, subject always to the control and direction of the Chief Executive Officer.  

 
2.02    Term
Before the Relocation, the Executive’s employment is at-will, meaning that the Executive or the Company may terminate Executive’s employment with or without cause, with or without notice and for any reason. After the Relocation, the Executive’s employment will continue for an indefinite period, subject to termination in accordance with the terms of this Agreement.
2.03    Place of Employment
(1)Until the Relocation, the Executive will work from a mutually agreed upon location in the United States of America. During the Executive’s employment with the Company, both before and after the Relocation, Executive’s position shall require frequent travel to the Company’s offices and retail stores, wherever located, as directed by the Company.
(2)Within thirty (30) days after the Approvals are granted, the Executive will relocate to the Vancouver, British Columbia area and will perform the Executive’s work and services for the Company at the principal executive offices of the Company (the “Relocation”) and the Executive will reside within a reasonable daily commuting distance of such offices.  
(3)The Executive warrants and affirms that the Executive is not aware of any circumstances with respect to the Executive’s professional or personal history that would prevent the Executive from obtaining the Approvals. The Company agrees to pay all costs and expenses in connection with processing and obtaining the Approvals for the Executive, including, without limitation, reimbursing the Executive if the Executive has to travel to Canada or engage his own counsel as part of the process of obtaining the Approvals.
ARTICLE 3 - REMUNERATION AND BENEFITS
3.01    Base Salary
The Company will pay the Executive a base salary (the “Base Salary”) in the amount of CAD $550,000 per annum, payable in accordance with the Company’s usual payroll practices and dates and subject to deductions required by law or authorized by the Executive. Prior to the Relocation, the Company will pay the Executive a base salary of CAD $550,000 converted to US dollars at an exchange rate of CAD $1.00 = USD $0.93.
3.02    Bonus
The Executive will be eligible to receive an annual bonus pursuant to the terms and conditions of the Bonus Plan. The Executive’s bonus target under the Bonus Plan shall be seventy five percent (75%) of Base Salary.
3.03    Retention Bonus
In exchange for the Executive accepting employment with Company and remaining employed for a period of twelve (12) months from the Effective Date (“Retention Period”), the Company agrees to provide the Executive with a retention bonus in the amount of CAD $400,000 (the “Retention Bonus”), converted to US dollars at an exchange rate of CAD $1.00 = USD $0.93 less applicable tax and other withholdings. The Company will pay the Retention Bonus within 15 business days following the Effective Date, and the parties agree that 

such date is in advance of the Executive actually having remained employed for the Retention Period.  Notwithstanding the foregoing, the Executive and the Company acknowledge and agree that such bonus will not be deemed earned until the end of the Retention Period. Because the Company is advancing this unearned Retention Bonus in anticipation of retaining services for the Retention Period, in the event the Executive should voluntarily resign employment (other than for Good Reason) or if the Executive’s employment is terminated for Cause prior to completing the Retention Period, the Executive agrees that the Company may deduct a pro-rata portion of the advanced Retention Bonus, based on the number of completed months of employment (rounded upwards to the nearest whole month) from any final pay or other payments owed to him by the Company, and agrees to repay any remaining amount of the pro-rata portion of the Retention Bonus within 15 days of such resignation or termination. Should the Company terminate the Executive’s employment for any reason other than Cause, or should the Executive terminate his employment for Good Reason, prior to the Executive completing the Retention Period, the Retention Bonus shall be considered earned in full on the date of termination.
3.04    Incentives
(1)As an employee of the Company, the Executive will be eligible for annual equity awards as determined by the Compensation Committee currently consisting of stock options and performance share awards, based on the Executive’s position.  

(2)Subject to the approval of the Compensation Committee on or around December 15, 2014, the Executive will be awarded a one-time grant of a number of Restricted Share Units (RSUs) equal to USD $400,000 as of the effective date of the grant, based on lululemon athletica inc.’s fair market value. The RSUs will vest over a three-year period, with one-third of the award vesting on or about each of the first, second, and third anniversaries of the grant date. RSU grants are subject to the applicable grant agreements, practices and policies on granting RSU awards, including the Company’s standard RSU award agreement.
(3)The Executive will be awarded a grant of performance share units (“PSU’s”) commensurate with the number of PSU’s  granted to other executive level vice presidents,  which will be granted on or about March 2015, in accordance with the Plan and pursuant to the Company’s applicable agreements, practices and policies on granting PSU awards, including the Company’s standard PSU award agreement.
(4)The Executive will also be eligible to participate in the Company’s employee share purchase plan, subject to the terms and conditions of such plan.
3.05    Benefits
The Executive will be eligible to participate in applicable employee benefit plans as are in effect from time to time, which shall include coverage for his immediate family, subject to and in accordance with the terms and conditions of such plans. 
3.06    Plan documents and right to change
(1)Some of the compensation and benefit plans and programs referred to in this offer are governed by insurance contracts and other plan or policy documents, which will in all cases govern.
(2)The Company reserves the right to amend, change or terminate any or all of its plans, programs, policies and benefits at any time for any reason without notice to the Executive, including without limitation bonus, commission, benefit, or compensation plans and programs.  The Company shall not adopt any 

amendment or change any plan in a way that negatively impacts the Executive, unless such amendment or change is generally applicable to all other Company executives.
3.07    Vacation
The Executive will be entitled to four (4) weeks paid vacation each year, subject to the Company’s vacation policy. Such vacation entitlement will be pro-rated for any part of a year. Before the Relocation, the Executive’s vacation will be capped at seven (7) weeks, which means that the Executive, at no point, will accrue more than seven (7) weeks of vacation. Upon Relocation, the Company will pay Executive all accrued and unused vacation and the Executive will begin to accrue vacation after the Relocation. The Executive will take such vacation at times having regard to the best interests of the Company. After the Relocation, except as may be required by applicable employment standards legislation, the Executive will lose the entitlement to unused vacation and the Executive agrees that any unearned advanced vacation may be deducted from the Executive’s final pay should the Executive’s employment with the Company end for any reason. If the Executive’s employment with the Company ends for any reason prior to Relocation, the Executive will be paid for all accrued and unused vacation in accordance with applicable law.
3.08    Relocation 
The Executive is eligible for relocation services as per the attached Executive Relocation Addendum. Upon the Company receiving the Executive’s written acceptance of this offer of employment, the Executive will be contacted by a Company relocation/mobility representative to initiate the Executive’s relocation arrangements.
3.09    Expenses
The Company will reimburse the Executive for all reasonable out-of-pocket expenses properly incurred by the Executive in the course of the Executive’s employment with the Company, in accordance with the Company’s expense reimbursement policy in effect as at the date the Executive incurs any such expenses. The Executive will provide the Company with appropriate statements and receipts verifying such expenses as the Company may require.
ARTICLE 4 - EXECUTIVE’S COVENANTS
4.01    Full Time Service
The Executive will devote all of the Executive’s time, attention and effort to the business and affairs of the Company, will well and faithfully serve the Company and will use the Executive’s best efforts to promote the interests of the Company and its Affiliates. Except as permitted by the Company, the Executive will not engage in other employment or consulting work while employed by the Company.  The Executive shall not be deemed to violate this Section 4.01 based on any work performed for The DO Lectures or as a member of the Board of the Biomimicry Institute, provided the performance of any such services do not interfere with the Executive’s performance of his duties as a Company employee.  
4.02    Duties and Responsibilities
In the performance of the Executive’s duties, the Executive agrees to give the Company the full benefit of the Executive’s knowledge, expertise, skill and ingenuity and to exercise the degree of care, diligence and skill that a prudent executive would exercise in comparable circumstances.

4.03    Policies, Rules and Regulations
The Executive will be bound by and will faithfully observe and abide by all of the policies, rules and regulations of the Company from time to time in force which are applicable to senior executives of the Company and which are brought to the Executive’s notice or of which the Executive should reasonably be aware including but not limited to the Company’s Handbook and Code of Business Conduct and policies related to gifts and entertainment and prohibiting bribes. Failure to follow any of the Company’ policies, rules and regulations may lead to discipline, up to and including immediate termination of employment. The Executive is responsible for reading and ensuring his understanding of the Company’s policies, rules and regulations; additional information and resources are on youlu, which is available following the Executive’s first day of work.
4.04    Conflict of Interest
(1)The Executive will not, during the Executive’s employment with the Company, engage in any material business, enterprise or activity that is materially contrary to or detracts from the due performance of the business of the Company or the Executive’s duties.
(2)The Executive will refrain from any situation in which the Executive’s personal interest conflicts or may appear to conflict with the Executive’s duties to the Company or the interests of the Company. The Executive agrees that if there is any doubt in this respect, the Executive will inform the CEO and obtain written authorization in advance.
4.05    Business Opportunities:
During the Executive’s employment, the Executive will not take over any of the Company’s business opportunities or prospective business opportunities for the Executive’s personal gain and or to the detriment of the Company. 
4.06    Restrictive Covenants
The Executive agrees to be bound by the terms and conditions of the Restrictive Covenant Agreement (the “Restrictive Covenant Agreement”) between the Company and the Executive, a copy of which is attached to this Agreement as Schedule A and is incorporated by reference and deemed to be a part of this Agreement.
4.07    Pre-existing Obligations
The Executive is hereby requested and directed by the Company not to disclose confidential or proprietary information of any kind belonging to the Executive’s former employer or any other person. The Company is not employing the Executive to obtain the confidential information business information, intellectual property or business opportunities of the Executive’s former employer or any other person.
4.08    Confidential Information
(1)The Executive acknowledges and agrees that the Executive shall not acquire any right, title or interest in or to the Confidential Information.
(2)At all times during and subsequent to the termination of the Executive’s employment with the Company, the Executive:

(a)    will not use, copy or reproduce the Confidential Information except as may be reasonably required for the Executive to perform the Executive’s duties for the Company, and the Executive will not directly or indirectly use, disseminate or disclose any Confidential Information for the Executive’s own benefit or the benefit of any other person or entity; and
(b)    the Executive will take all reasonable precautions against unauthorized disclosure of the Confidential Information.
(3)    If the Executive is requested or ordered by law to disclose any Confidential Information, the Executive will, to the extent permitted by and consistent with applicable law, advise the Company forthwith of such request or order and provide to the Company all information concerning such request or order and, to the extent permitted by and consistent with applicable law, give the opportunity for the Company to object or intervene, prior to making any disclosure of Confidential Information.
ARTICLE 5 - TERMINATION (APPLICABLE AFTER RELOCATION)
5.01    Termination by the Company
The Company may terminate the Executive’s employment with the Company at any time by giving notice in writing to the Executive and stipulating the last day of employment (the “Termination Date”).
5.02    Termination by the Executive
The Executive may terminate the Executive’s employment with the Company at any time by giving the Company thirty (30) days’ notice in writing (the “Notice of Resignation Period”). The Company may waive such notice, in whole or in part, in which case the Executive shall only be entitled to (i) payment of the Executive’s Base Salary for the period from the effective date of the waiver of the Notice of Resignation Period to the end of the Notice of Resignation Period; (ii) continued group benefit coverage under Section 3.05 subject to and in accordance with the terms and conditions of the applicable plans, for the period ending the last day of the Notice of Resignation Period; (iii) the value of the Executive’s accrued, unused vacation leave, pro-rated for that portion of the calendar year up to the end of the Notice of Resignation Period, and (iv) any payments or entitlements under the Plan or the Bonus Plan that the Executive would otherwise receive during the Notice of Resignation Period.
5.03    Payments on Termination Without Cause or for Good Reason
(1)    If the Executive’s employment with the Company is terminated by the Company without
Cause, or by the Executive for Good Reason, the Executive will only be entitled to the following payments and benefits:
		
	(a)
	Accrued Compensation. The Company will pay the Executive’s Base Salary accrued and unpaid up to and including the Termination Date, including accrued vacation pay, at the rate in effect at the time notice of termination is given by the Company or the Executive.

		
	(b)
	Bonus Compensation. The Executive shall not receive any bonus payment whatsoever pursuant to Section 3.02 or the Bonus Plan except such bonus which is already earned and due to be paid up to and including the Termination Date, notwithstanding any period following the Termination Date during which the Executive may receive any payments or benefits under the terms of this Agreement or at law.

		
	(c)
	Restricted Share Units, Performance Share Units and Stock Options. The Executive’s rights regarding any Restricted Share Units, Performance Share Units or stock options from the Company will be governed by the terms of the applicable plans, agreements and policies of the Company, including without limitation the Plan.

		
	(d)
	Notice or Pay in lieu/Severance.

The Executive will be entitled to fifteen months’ notice or payment of Base Salary (at the rate in effect as of the date of termination) in lieu, or a combination of notice and payment (the “Severance Payment”), as determined at the election of the Company (which election shall be made by the Company no later than five business days after such termination). Any payment made pursuant to this Section 5.03(1)(d) shall be:
		
	i.
	less any termination or severance pay paid pursuant to the Employment  
Standards Act (British Columbia);

		
	ii.
	subject to regular and statutory withholdings, and

		
	iii.
	paid in equal instalments on the Company’s normal paydays beginning on the first regular payday occurring after the date of termination.

		
	iv.
	for any payment above the minimum required under the Employment Standards Act (British Columbia), contingent upon the Executive’s compliance with all surviving provisions of this Agreement and the Executive’s execution of a full general release in a form acceptable to the Company releasing all claims, known or unknown, that the Executive may have against the company arising out of or any way related to the Executive’s employment or termination of employment with Company, and such release has become effective in accordance with its terms prior to the 60th day following the Termination Date.  If the release has not become effective by such deadline, such amounts payable after (but not before) such deadline will be forfeited.

		
	(e)
	RCA. Any amounts owing to the Executive pursuant to Section 5.03(d) that are above the minimum required under the Employment Standards Act (British Columbia) shall be forfeited if the Executive fails to comply with the Restrictive Covenant Agreement.

		
	(f)
	Fair and Reasonable. The parties agree that the provisions of Section 5.03 are fair and reasonable and that the amounts payable by the Company to the Executive’s benefit pursuant to Section 5.03 are reasonable.

		
	(g)
	No Other Payments or Benefits. The terms and conditions of this Section 5.03 and the

amounts paid and the benefits provided to the Executive hereunder are in full satisfaction of any payments or benefits which the Executive may otherwise have been entitled to receive in relation to the termination of this Agreement and the Executive’s employment hereunder pursuant to the common law and any applicable laws, including, without limitation, the British Columbia Employment Standards Act, or any of the Company’s programs, policies, plans, contracts or agreements, whether written or verbal. Upon receipt of the payments and benefits described herein, the Executive will have no action, cause of action, claim or demand against the Company, the Company’s Affiliates or any other person arising out of or in relation to the Executive’s employment under this Agreement or the 

termination of this Agreement and the Executive’s employment hereunder, other than to enforce the terms of this Agreement and remedy any breach thereof by the Company.
		
	(h)
	No Mitigation.  The Executive shall not be required to mitigate the amount of any payments provided for under Section 5.03 of this Agreement by seeking other employment nor shall any payment provided for in such Section be reduced by any compensation or remuneration and/or benefits earned by the Executive as a result of employment by another employer or the rendering of services after the date of termination. 

5.04    Payments on Termination by Company for Cause

If the Executive’s employment with the Company is terminated by the Company for Cause, the Executive will only be entitled to receive the following compensation:

		
	(a)
	Accrued Base Salary. The Company will pay the Executive’s Base Salary accrued but unpaid up to and including the Termination Date, including accrued vacation pay, at the rate in effect at the time the notice of termination is given.

		
	(b)
	Accrued Expenses. The Company will reimburse the Executive for any business expenses reasonably incurred by the Executive up to and including the Termination Date in accordance with the Company's normal expenses policy applicable to the Executive at that time.

		
	(c)
	Bonus Compensation. The Executive shall not receive any bonus payment whatsoever pursuant to Section 3.02 or the Bonus Plan except such bonus which is already earned and due to be paid up to and including the Termination Date, notwithstanding any period following the Termination Date during which the Executive may receive any payments or benefits under the terms of the Agreement.

		
	(i)
	Restricted Share Units, Performance Share Units and Stock Options. The Executive’s

rights regarding any Restricted Share Units, Performance Share Units or stock options from the Company will be governed by the terms of the applicable plans, agreements and policies of the Company, including without limitation the Plan.
5.05    Fair and Reasonable
The Executive acknowledges and agrees that the payments and/or benefits pursuant to this Article 5 will be in full satisfaction of all terms or requirements regarding termination of the Executive’s employment, including without limitation common law notice of termination or compensation in lieu of such notice and compensation for length of service and any other entitlement pursuant to the British Columbia Employment Standards Act as amended from time to time. Except as expressly provided in this Article 5, the Executive will not be entitled to any termination payments, damages, or compensation whatsoever, notwithstanding any changes in the terms and conditions of the Executive’s employment which may occur in the future, including any change in position, duties or compensation.
5.06    Return of Property
Upon termination of the Executive’s employment with the Company, the Executive will deliver or cause to be delivered to the Company promptly all books, documents, money, securities or other property of the Company that are in the possession, charge, control or custody of the Executive, without retaining any copies or records of any Confidential Information whatsoever.

5.07    Intentionally Deleted

5.08    Resignation as Director and Officer
Upon any termination of the Executive’s employment under this Agreement, the Executive will be deemed to have resigned as a director and officer of all Affiliates of the Company contemporaneously with the date of termination of the Executive’s employment for any reason and will immediately, on request of the Company, sign forms of resignation indicating the Executive’s resignation as a director and officer of the Company and any Affiliates of the Company and of any other entities of which the Executive occupies similar positions as part of or in connection with the performance by the Executive of the duties under this Agreement, if applicable.
5.09    Provisions which Operate Following Termination 
Notwithstanding any termination of the Executive’s employment under this Agreement for any reason whatsoever and with or without cause, all provisions of this Agreement necessary to give efficacy thereto, including without limitation the Restrictive Covenant Agreement attached as Schedule A, will continue in full force and effect following such termination.
ARTICLE 6 - MISCELLANEOUS
6.01    Application of Section 409A
(1)    Notwithstanding anything set forth in this Agreement to the contrary, no amount payable upon the termination of Executive’s employment with the Company pursuant to this Agreement which constitutes a “deferral of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (collectively, the “Section 409A Regulations”) shall be paid unless and until the Executive has incurred a “separation from service” within the meaning of the Section 409A Regulations.  Furthermore, to the extent that the Executive is a “specified employee” within the meaning of the Section 409A Regulations as of the date of the Executive’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of the Executive’s separation from service shall be paid to the Executive before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of the Executive’s separation from service or, if earlier, the date of the Executive’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.
(2)    The Company intends that income provided to the Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Code.  The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code.  However, the Company does not guarantee any particular tax effect for income provided to the Executive pursuant to this Agreement.  In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to the Executive, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to the Executive pursuant to this Agreement.  
(3)    Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: (a) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (b) the reimbursement of eligible expenses or in-kind benefits shall be made promptly, subject to the Company’s applicable policies, but in no event later than the end of the year after the year in which such expense was incurred; and (c) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

(4)    For purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.
(5)    This Section 6.01 shall only apply to the extent that Section 409A of the Code is applicable to any amounts payable to the Executive.
6.02    Deductions
The Company will deduct all statutory deductions and any amounts authorized by the Executive from any amounts to be paid to the Executive under this Agreement.
6.03    Entire Agreement
This Agreement, including the Schedules to this Agreement, the Bonus Plan, the Plan and the Company’s standard RSU and PSU Agreements constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and cancels and supersedes any prior understandings and agreements between the parties to this Agreement with respect to the subject matter of this Agreement and any rights which the Executive may have by reason of any such prior agreements. There are no representations, warranties, forms, conditions, undertakings or collateral agreements, express, implied or statutory between the parties other than as expressly set forth in this Agreement.
6.04    Severability
If any provision of this Agreement is determined to be invalid or unenforceable in whole or in part, such invalidity or unenforceability will attach only to such provision or part of such provision and the remaining part of such provision and all other provisions of this Agreement will continue in full force and effect.
6.05    Amendments and Waivers
No amendment to this Agreement will be valid or binding unless set forth in writing and duly executed by both of the parties. No waiver of any breach of any provision of this Agreement will be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in the written waiver, will be limited to the specific breach waived.
6.06    Notices

Any demand, notice or other communication to be given in connection with this Agreement must be given in writing and will be given by personal delivery, by registered mail, or by electronic means of communication addressed to the recipient as follows:
To the Company:
lululemon athletica inc. 
1818 Cornwall Avenue Vancouver, BC
V6J 1C7
Attention: Director of Legal 

To the Executive:
Scott (Duke) Stump
with a copy to:    
Davis & Gilbert LLP
1740 Broadway
New York, New York 10019
Attn: Michael Lasky
Fax: (212) 621-0918
Email: mlasky@dglaw.com
or such other address, individual or electronic communication number as may be designated by notice given by either party to the other.
6.07    Equitable Remedies
The Executive hereby acknowledges and agrees that a breach of the Executive’s obligations under this Agreement would result in damages to the Company that could not be adequately compensated for by monetary award. Accordingly, in the event of any such breach by the Executive, in addition to all other remedies available to the Company at law or in equity, the Company will be entitled as a matter of right to apply to a court of competent jurisdiction for such relief by way of restraining order, injunction, decree or otherwise, as may be appropriate to ensure compliance with the provisions of this Agreement.
6.08    Governing Law
Before the Relocation, this Agreement will be governed by and construed in accordance with the laws of Delaware. After the Relocation, this Agreement will be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.
6.09    Attornment
For the purpose of all legal proceedings occurring after the Relocation, this Agreement will be deemed to have been performed in the Province of British Columbia. The courts of competent jurisdiction located in Vancouver, British Columbia will have jurisdiction to entertain any action arising under this Agreement after the Relocation and the Company and the Executive each hereby irrevocably attorns to the courts of competent jurisdiction located in Vancouver, British Columbia after the Relocation.
This offer of employment is contingent upon the Executive authorizing and submitting to a background check through the Company’s designated agency, and the Company’s receipt of satisfactory results from the background check.

Yours truly,
lululemon athletica inc.
	
		
	By:
	/s/ LAURENT POTDEVIN

	 
	Laurent Potdevin

	 
	Chief Executive Officer

	 
	 

	 
	/s/ SCOTT (DUKE) STUMP

	 
	Scott (Duke) StumpEX-10.1

 Exhibit 10.1 

Kellogg Company 
 Change
of Control Severance 
 Policy for Key Executives 

Introduction 
 The
Board of Directors of Kellogg Company recognizes that, from time to time, the Company may explore or otherwise be subject to potential transactions that could result in a Change of Control of the Company. This possibility and the uncertainty such an
event creates may result in the loss or distraction of employees of the Company to the detriment of the Company and its stockholders. 
 The
Board considers the avoidance of such loss and distraction to be essential to protecting and enhancing the best interests of the Company and its stockholders. The Board also believes that when a Change of Control is perceived as imminent, or is
occurring, the Board should be able to receive and rely on disinterested service from employees regarding the best interests of the Company and its stockholders without concern that employees might be distracted or concerned by the personal
uncertainties and risks created by the perception of an imminent or occurring Change of Control. 
 In addition, the Board believes that it
is consistent with the Company’s employment practices and policies and in the best interests of the Company and its stockholders to treat fairly its employees whose employment terminates in connection with or following a Change of Control. 

Accordingly, the Board has determined that appropriate steps should be taken to assure the Company of the continued employment and attention
and dedication to duty of certain of its key management employees and to seek to ensure the availability of their continued service, notwithstanding the possibility or occurrence of a Change of Control. Therefore, in order to fulfill the above
purposes, the following Change of Control Severance Policy for Key Executives has been developed and adopted. 

  
 1 

 ARTICLE I 

ESTABLISHMENT OF PLAN 

The Company established the Kellogg Company Change of Control Severance Policy for Key Executives (the “Plan”) on May 26, 2000,
(the “Effective Date”), and has periodically amended the Plan. By this document, the Company is amending and restating the Plan effective as of December 5, 2014. 

ARTICLE II  

DEFINITIONS 
 As
used herein the following words and phrases shall have the following respective meanings (unless the context clearly indicates otherwise): 
  

	 	2.1	Affiliate. Any entity controlled by, controlling or under common control with the Company. 

  

	 	2.2	Annual Base Salary. Twelve times the higher of 

 (a) The
highest monthly base salary paid or payable to the Participant by the Company and the Affiliates in respect of the twelve-month period immediately preceding the month in which the Change of Control occurs, and 

(b) The highest monthly base salary in effect at any time thereafter, in each case including any base salary that has
been earned and deferred. 
  

	 	2.3	Annual Bonus. The annual cash bonus awarded to the Participant in respect of a fiscal year under the Company’s or its Affiliate’s annual incentive plans, or any comparable bonus under any
predecessor or successor plans. 

  

	 	2.4	Board. The Board of Directors of Kellogg Company. 

  

	 	2.5	Cause. As defined in Section 4.2(b)(i). 

  

	 	2.6	Change of Control. Change of Control means: 

 (a) The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of: 

(i)  20% or more of either: 

(A)  The then outstanding shares of common stock of the Company (the “Outstanding Company Common
Stock”) or 

  
 1 

 (B) The combined voting power of the then-outstanding voting securities of
the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”), 
 if
immediately following such acquisition the W.K. Kellogg Foundation Trust and George Gund III together with the Gund family trusts that have a common trustee (collectively, the “Trusts”) do not own, in the aggregate, more than 35% of the
Outstanding Company Common Stock or Outstanding Company Voting Securities; or 
 (ii) 30% or more of either 

(A) The Outstanding Company Common Stock; or 

(B) The Outstanding Company Voting Securities, if immediately following such acquisition the Trusts own, in the
aggregate, more than 35% of the Outstanding Company Common Stock or Outstanding Company Voting Securities; 
 provided, however, that,
for purposes of this Section 2.6(a), the following acquisitions shall not constitute a Change of Control: (1) any acquisition directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any of its Affiliates, (4) any acquisition by the Trusts or (5) any acquisition by any corporation pursuant to a transaction that complies with Sections 2.6(c)(i),
2.6(c)(ii) and 2.6(c)(iii); or 
 (b) Individuals who, as of the Effective Date, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though that individual were a member of the Incumbent Board, but excluding, for this purpose, any
individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or 
 (c) Consummation of a reorganization, merger, consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, 

(i) All or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination 

  
 2 

 
(including, without limitation, a corporation that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be; 

(ii) No Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination; and 

(iii) At least a majority of the members of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 

(d) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

 

	 	2.7	Code. The Internal Revenue Code of 1986, as amended from time to time. 

  

	 	2.8	Committee. The Compensation Committee of the Board. 

  

	 	2.9	Company. Kellogg Company, a Delaware corporation, and any successor thereto. 

  

	 	2.10	Date of Termination. Date of Termination means: 

 (a) If
the Participant’s employment is terminated by the Company for Cause, or by the Participant for Good Reason, the date of receipt of the Notice of Termination (as described in Section 4.2(c)) or any later date specified therein, as the case
may be, 
 (b) If the Participant’s employment is terminated by the Company other than for Cause or Disability,
the Date of Termination shall be the date on which the Company notifies the Participant of his or her termination, and 

(c) If the Participant’s employment is terminated by reason of death or Disability, the Date of Termination shall
be the date of death of the Participant or the Disability Effective Date, as the case may be. 
  

	 	2.11	Disability. As defined in Section 4.2(b)(ii). 

  

	 	2.12	Disability Effective Date. As defined in Section 4.2(b)(ii). 

  
 3 

	 	2.13	Effective Date. May 26, 2000, which is the original effective date of the Plan. 

  

	 	2.14	Employer. The Company or any of its Affiliates. 

  

	 	2.15	Good Reason. As defined in Section 4.2(a). 

  

	 	2.16	Key Executive. A key executive employee of an Employer who is not a party to an employment agreement with the Company that becomes effective in the event of a Change of Control of the Company and who is
listed on Appendix A to the Plan, as amended by the Committee from time to time. 

  

	 	2.17	Participant. A Key Executive who meets the eligibility requirements of Section 3.1. 

  

	 	2.18	Participation Letter. A letter from the Company to a Key Executive notifying the Key Executive of his or her selection for participation in the Plan. 

 

	 	2.19	Plan. The Kellogg Company Change of Control Severance Policy for Key Executives, as set forth in this document. 

  

	 	2.20	Retirement Plan. As defined in Section 4.3(a)(iii). 

  

	 	2.21	Separation Benefits. The amounts and benefits payable or required to be provided in accordance with Section 4.3. 

  

	 	2.22	SERP. As defined in Section 4.3(a)(iii). 

  

	 	2.23	Target Annual Bonus. The Participant’s Target Annual Bonus Percentage multiplied by the Participant’s Annual Base Salary. 

 

	 	2.24	Target Annual Bonus Percentage. The Participant’s target bonus percentage under the Company’s or its Affiliate’s annual incentive plans, or any comparable bonus under any predecessor or
successor plans in effect for the year in which the Change of Control occurs, or if higher, the year in which the Date of Termination occurs. 

ARTICLE III  

ELIGIBILITY 

3.1     Participation. Each Key Executive who has received a Participation Letter from the Company that has
not been rescinded (which may occur solely due to the Participant’s removal from Appendix A as provided below) shall be a Participant in the Plan. Appendix A may be amended by the Committee by adding or removing Key Executives at any time prior
to the occurrence of a Change of Control, and, upon removal of a Key Executive from Appendix A, the Participation Letter shall thereafter have no further force and effect; provided, however, that no Key Executive may be so removed after the Board
has knowledge of a transaction or event that, if consummated, would constitute a Change of Control, unless and until the Board has determined that the potential Change of Control has been abandoned and shall not be consummated, and the Board does
not have knowledge of other transactions or events that, if consummated, would constitute a Change of Control; provided further that any such removal of a Participant shall not be effective until the date that is 12 months following the date the
Participant is notified of such removal. 

  
 4 

 3.2    Duration of Participation. A Participant shall cease to
be a Participant in the Plan and the Participant’s Participation Letter shall have no further force and effect, if he or she: 

(a)    Ceases to be employed by an Employer under circumstances not entitling him or her to Separation Benefits; or

 (b)    Otherwise ceases to be a Key Executive, provided that no Key Executive may be removed from Plan
participation in connection with or in anticipation of a Change of Control that actually occurs. 
 Notwithstanding the foregoing, a
Participant who is entitled, as a result of ceasing to be a Key Executive of an Employer, to receive benefits under the Plan shall remain a Participant in the Plan until the amounts and benefits payable under the Plan have been paid or provided to
the Participant in full. 
 ARTICLE IV  

SEPARATION BENEFITS 

4.1    Right to Separation Benefits. A Participant shall be entitled to receive from the Company the
Separation Benefits as provided in Section 4.3 if a Change of Control has occurred and the Participant’s employment with an Employer is terminated under circumstances specified in Section 4.2(a), whether the termination is voluntary
or involuntary, and if the termination: 
 (a)    Occurs after the Change of Control and on or before the second
anniversary of the Change of Control; or 
 (b)    Is reasonably demonstrated by the Participant to have been
initiated by a third party that has taken steps reasonably calculated to effect a Change of Control or otherwise to have arisen in connection with or in anticipation of a Change of Control. 

4.2    Termination of Employment. 

(a)    Terminations Which Give Rise To Separation Benefits Under The Plan. Any termination of a
Participant’s employment with an Employer by action of the Company or any of its Affiliates or by the Participant for Good Reason shall give rise to Separation Benefits under the Plan except as set forth in Section 4.2(b) below. 

For purposes of the Plan, “Good Reason” shall mean: 

(i)    A diminution in any material respect of the Participant’s position (including status,
offices, titles and reporting requirements), authority, duties or responsibilities from those in effect immediately prior to the Change of Control, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith
and that is remedied by the Company and/or the Affiliate promptly after receipt of notice thereof given by the Participant; or 

  
 5 

 (ii)    A decrease in the Participant’s Annual
Base Salary or a decrease in the Participant’s target Annual Bonus percentage from the target Annual Bonus percentage in effect for the Participant immediately prior to the Change of Control or, if higher, the Date of Termination (excluding a
decrease in Annual Base Salary or target Annual Bonus percentage resulting from an across-the-board change to the applicable bonus plan or policy which generally has an equal impact on the other senior executives of the Company and its Affiliates);
or 
 (iii)    The Company’s or the Affiliate’s requiring the Participant to be based at
any office or location, other than the office or location where the Participant was based and performed services immediately prior to the Change of Control, that is not reasonably commutable by the Participant on a daily basis. 

For purposes of this Section 4.2(a), any good faith determination of Good Reason made by the Participant shall be conclusive. 

(b)    Terminations Which Do Not Give Rise to Separation Benefits Under This Plan. Notwithstanding
Section 4.2(a), if a Participant’s employment is terminated for Cause or Disability (as those terms are defined below) or as a result of the Participant’s death, or the Participant terminates his or her employment other than for Good
Reason, the Participant shall not be entitled to Separation Benefits under the Plan, regardless of the occurrence of a Change of Control. 

(i)    A termination for “Cause” shall have occurred where a Participant is terminated
because of: 
 (A)    The willful and continued failure of the Participant to perform
substantially the Participant’s duties with the Company or any of the Affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the
Participant by the Board or the Chief Executive Officer of the Company which specifically identifies the manner in which the Board or the Chief Executive Officer believes that the Participant has not substantially performed the Participant’s
duties; or 
 (B)    The willful engaging by the Participant in illegal conduct or gross
misconduct which is materially and demonstrably injurious to the Company or the Affiliate. 
 For purposes of this Section 4.2(b)(i), no
act, or failure to act, on the part of the Participant shall be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief that the Participant’s action or omission was
in the best interests of the Company or the Affiliate. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer of the Company or a senior
officer of the Company or based upon the advice of counsel for the Company or the Affiliate shall be conclusively presumed to be done, or omitted to be done, by the Participant in good faith and in the best interests of the Company or the Affiliate.

  
 6 

 (ii)    A termination for “Disability” shall
have occurred where a Participant is absent from the Participant’s duties with the Employer on a full-time basis for 180 consecutive business days as a result of incapacity due to mental or physical illness which is determined to be total and
permanent by a physician selected by the Company or its insurers and acceptable to the Participant or the Participant’s legal representative. In that event, the Participant’s employment with the Employer shall terminate effective on the
30th day after receipt of such notice by the Participant (the “Disability Effective Date”), provided that, within the 30 days after such receipt, the Participant shall not have returned to full-time performance of the Participant’s
duties. 
 (c)    Notice of Termination. Any termination by the Company for Cause, or by the Participant
for Good Reason, shall be communicated by a Notice of Termination to the other party in accordance with Section 7.6 of the Plan. For purposes of the Plan, a “Notice of Termination” means a written notice that: 

(i)    Indicates the specific termination provision in the Plan relied upon; 

(ii)    To the extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Participant’s employment under the provision so indicated; and 

(iii)    If the Date of Termination is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than 30 days after the giving of such notice). 
 The failure by a Participant or the Company
to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Participant or the Company, respectively, under the Plan or preclude the Participant or the
Company, respectively, from asserting such fact or circumstance in enforcing the Participant’s or the Company’s rights under the Plan. 

4.3    Separation Benefits. If a Participant’s employment is terminated under the circumstances set
forth in Section 4.2(a) entitling him or her to Separation Benefits, the Company shall pay or provide, as the case may be, to the Participant the amounts and benefits set forth in subsections (a) through (e) below (collectively, the
“Separation Benefits”): 
 (a)    The Company shall pay to the Participant, in a lump
sum in cash, the aggregate of the following amounts: 
 (i)    The sum of the amounts described in
subsections (A), (B) and (C) below: 
 (A)    The Participant’s Annual Base Salary
through the Date of Termination to the extent not theretofore paid; 

  
 7 

 (B)    The product of: 

(x)    The Annual Bonus equal to the product of: 

(1)    The Participant’s Annual Base Salary; and 

(2)    The Participant’s Target Annual Bonus Percentage; and 

(y)    A fraction, the numerator of which is the number of days in the current fiscal year through
the Date of Termination and the denominator of which is 365; and 
 (C)    Any compensation
previously deferred by the Participant (together with any accrued interest or earnings thereon) and any accrued vacation pay, in each case, to the extent not theretofore paid (the sum of the amounts described in subsections (A), (B) and
(C) above, the (“Accrued Obligations”)); and 
 (ii)    The amount equal to the
product of the amounts described in subsections (A) and (B) below: 
 (A)    Two; and

 (B)    The sum of 

(x)    The Participant’s Annual Base Salary; and 

(y)    The Participant’s Target Annual Bonus; and 

(iii)    An amount equal to the excess of the amount described in subsection (A) below over the
amount described in subsection (B) below: 
 (A)    The actuarial equivalent of the benefit
under the Company’s or its Affiliate’s qualified defined benefit retirement plan or plans, including any plan or arrangement maintained or sponsored in a jurisdiction other than the United States pursuant to statute or otherwise, in which
the Participant participates (the “Retirement Plan”) (utilizing actuarial assumptions no less favorable to the Participant than those in effect under the Retirement Plan immediately prior to the Change of Control) and any excess or
supplemental retirement plan or plans in which the Participant participates, including any individual contract, agreement, letter or other arrangement to which the Participant is a party (taking into account, without limitation, any additional age
and/or service credit that would have been earned thereunder) (collectively, the “SERP”) that the Participant would receive if the Participant’s employment continued for two years after the Date of Termination (and using the
additional two years of age and service for purposes of determining actuarial equivalency), assuming for this purpose that all accrued benefits are fully vested and assuming that the Participant’s compensation in each of the two years consists
of the Annual Base Salary and the Target Annual Bonus. 

  
 8 

 (B)    The actuarial equivalent of the
Participant’s actual benefit (paid or payable), if any, under the Retirement Plan and the SERP as of the Date of Termination (for purposes of this Section 4.3(a)(iii), actuarial equivalent shall mean the approximate basis at which insured
annuities could be purchased in the open market on the Date of Termination or, in the case of plans where such equivalency is explicitly defined, actuarial equivalency shall be calculated on the basis specified in the applicable plan document;
furthermore, all currency translations shall be made based on the rate in effect on the Date of Termination, and such rate shall apply to both the benefit accrued on the Date of Termination, as well as to the value of the benefit calculated that
includes the additional two years of age and service; furthermore, for purposes of calculating actuarial equivalence of a pension benefit (with or without the additional two years of age and service), the Participant’s eligibility to receive,
and the amount of, an immediately commencing early retirement benefit shall be reflected in the calculation of the actuarial equivalent benefit). 

Notwithstanding the first sentence of this Section 4.3(a), the benefits described in this Section 4.3(a) shall be paid in equal
bi-weekly installments over a two-year period if the circumstances set forth in Section 4.2(a) entitling the Participant to Separation Benefits do not satisfy the definition of a “change in control” under Section 409A of the
Code. 
 (b)    For two years after the Participant’s Date of Termination, or such longer period as may be
provided by the terms of the appropriate plan, program, practice or policy, the Participant shall be deemed to be on a leave of absence from the Company or its Affiliates and the Company shall continue to provide welfare benefits to the Participant
and/or the Participant’s family at least equal to those that would have been provided to them in accordance with the welfare benefit plans, practices, policies and programs provided by the Company and its Affiliates (including, without
limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other peer executives of the Company and its Affiliates, but
in no event shall such plans, practices, policies and programs provide the Participant with benefits that are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for the Participant at
any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Participant, as in effect generally at any time thereafter with respect to other peer executives of the Company and its Affiliates and their
families., provided, however, that if the Participant becomes reemployed with another employer and is eligible to receive medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described in
this subsection shall be secondary to the benefits provided under the other employer’s plan during the applicable period of eligibility. For purposes of determining eligibility (but not the time of commencement of benefits) of the Participant
for retiree benefits pursuant to such plans, practices, programs and policies, the Participant shall be considered to have remained employed until two years after the Date of Termination and to have retired on the last day of such period; 

(d)    For all purposes of the vesting and exercisability of equity-based awards granted under the Company’s
stock incentive plans and the award agreements thereunder, the Participant shall be deemed to be on a leave of absence from the Company or its Affiliates for two years after the Date of Termination and the Participant’s termination of
employment from the Company or its Affiliates shall be deemed to occur on the second anniversary of the Date of Termination; 

  
 9 

 (e)    The Company shall, at its sole expense as incurred, provide the
Participant with outplacement services the scope and provider of which shall be selected by the Participant in the Participant’s sole discretion; provided, however, such outplacement services shall not be provided later than the last day of the
second taxable year following the taxable year in which the Participant’s Date of Termination occurs; and 

(f)    To the extent not theretofore paid or provided, the Company shall timely pay or provide to the Participant
any other amounts or benefits required to be paid or provided or that the Participant is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its Affiliates. 

Notwithstanding the foregoing, to the extent necessary to comply with the provisions of Section 409A of the Code, the payment of
separation benefits under this Section 4.4 to a specified employee shall be delayed until the date which is six months after the Participant’s severance from employment (within the meaning of Section 409A of the Code). For purposes of
this paragraph, a specified employee means a Participant who, at the time payment is to be made, is a “key employee” of the Company or its Affiliates, within the meaning of Section 416(i) of the Code, but disregarding
Section 416(i)(5) of the Code. The determination of who is a specified employee shall be made during the 90-day period following the close of each calendar year, based on total compensation and job position for the preceding calendar year, and
shall apply for the period beginning on April 1 following such 90-day period and ending the following March 31. 

4.4    Separation Payments Contingency. Upon a Change of Control and termination of employment under the
circumstances described in Section 4.2(a), the obligations of the Company to pay or provide Separation Benefits to a Participant are contingent on the following: 

(a)    Non-Solicitation. The Participant’s entering into and adhering to a written agreement providing
that the Participant will not solicit any employee of the Company or an Affiliate to leave the Company or an Affiliate and to work for any other entity, whether as an employee, independent contractor or in any other capacity, for a period of up to
one year following the Participant’s Date of Termination. Should the Participant violate this non-solicitation agreement, the Participant will be obligated to pay back to the Company all payments received pursuant to this Plan, and the Company
will have no further obligation to pay or provide the Participant any Separation Benefits that may be remaining due under this Plan; 

(b)    Non-Disparagement. The Participant’s entering into and adhering to a written agreement providing
that, in discussing the Participant’s relationship with the Employer, the Participant will not disparage, discredit or otherwise treat in a detrimental manner the Employer, its affiliated and parent companies or their officers, directors and
employees. In this written agreement the Employer shall also agree that, in discussing its relationship with the Participant, the Employer will not disparage, discredit or otherwise treat the Participant in a detrimental way. Should the Participant
violate this non-disparagement agreement, the Participant will be obligated to pay back to the Company all payments received pursuant to this Plan, and the Company will have no further obligation to pay or provide the Participant any Separation
Benefits that may be remaining due under this Plan; and 

  
 10 

 (c)     General Release of Claims. The Participant’s
execution of a general release of claims in the form and substance to be reasonably acceptable to the Company, releasing the Employer, its affiliated companies and their officers, directors, agents and employees from any claims or causes of action
of any kind that the Participant might have against any one or more of them regarding the Participant’s employment or the termination of that employment as of the date of the release of claims, and provided the Participant does not thereafter
revoke the release of claims. 
 Payment of Separation Benefits shall be made promptly after the release of claims is executed, but in no
event later than 90 days following the date the release of claims is executed. 
 4.5     Payment Obligations
Absolute. Upon a Change of Control, the obligations of the Company and the Affiliates to pay or provide the payments or benefits under the Plan shall be absolute and unconditional and shall not be affected by any circumstances, including,
without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or the Affiliates may have against any Participant. In no event shall a Participant be obligated to seek other employment or take any other action by
way of mitigation of the amounts payable to a Participant under any of the provisions of the Plan, nor shall the amount of any payment under the Plan be reduced by any compensation or benefits earned by a Participant as a result of employment by
another employer. 
 4.6     Eliminate Excise Tax Coverage. If a Change of Control occurs and a Participant
becomes entitled to Separation Benefits under the Plan that would be subject to the excise tax imposed under Section 4999 of the Code, the Company shall reduce its payment of Separation Benefits to the Participant to $1.00 less than that amount
which would trigger the excise tax if such reduction would result in the Participant receiving an equal or greater after-tax benefit than the Participant would receive if the full Separation Benefits were paid. The Separation Benefits shall be
reduced in the following order of priority: (i) first from cash compensation under Section 4.3(a), (ii) next from any additional SERP benefits under Section 4.3(b), then (iii) from equity-based awards under
Section 4.3(c), and then (iv) pro-rata among all remaining payments and benefits, provided, however, that this payment structure complies with applicable law, including Section 409A of the Code. 

4.7     Non-exclusivity of Rights. Nothing in the Plan shall prevent or limit a Participant’s continuing
or future participation in any plan, program, policy or practice provided by the Company or the Affiliates and for which the Participant may qualify (other than a severance or termination pay plan providing severance benefits or termination pay that
would be duplicative of the benefits provided under the Plan, unless required by statute), nor, subject to Section 7.2, shall anything in the Plan limit or otherwise affect rights the Participant may have under any contract or agreement with
the Company or the Affiliates (other than an agreement or contract providing severance benefits or termination pay that would be duplicative of the benefits provided under the Plan, unless required by statute). Amounts or benefits that are vested
benefits or that the Participant is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company or the Affiliates at or subsequent to the Date of Termination shall be payable in
accordance with such plan, policy, practice or program or contract or agreement, except as explicitly modified by this Plan. 

  
 11 

 ARTICLE V 

SUCCESSOR TO COMPANY 

The Plan shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation
or otherwise), in the same manner and to the same extent that the Company would be obligated under the Plan if no succession had taken place. 

In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by the Plan, the
Company shall require the successor to expressly and unconditionally assume and agree to perform the Company’s obligations under the Plan, in the same manner and to the same extent that the Company would be required to perform if no such
succession had taken place. The term “Company,” as used in the Plan, shall mean the Company as defined in Section 2.6 and any successor or assignee to the business or assets which by reason hereof becomes bound by the Plan. 

ARTICLE VI 
 AMENDMENT
AND TERMINATION 
 The Plan may be terminated or amended in any respect by resolution adopted by a majority of the Board, unless a
Change of Control has previously occurred. Any such permitted termination or amendment that would be adverse to any Participant, as determined in the reasonable, good faith discretion of the Company, shall not be effective until the date that is 12
months following the date Participant is notified of the termination or amendment. 
 However, after the Board has knowledge of a possible
transaction or event that, if consummated would constitute a Change of Control, the Plan may not be terminated or amended in any manner that would adversely affect the rights or potential rights of Participants, unless and until the Board has
determined that all transactions or events that, if consummated, would constitute a Change of Control have been abandoned and will not be consummated, and, provided that, the Board does not have knowledge of other transactions or events that, if
consummated, would constitute a Change of Control. If a Change of Control occurs, the Plan shall no longer be subject to amendment, change, substitution, deletion, revocation or termination in any respect that adversely affects the rights of
Participants. 
 ARTICLE VII  

MISCELLANEOUS 

7.1     Indemnification. The Company agrees to pay as incurred, to the full extent permitted by law, all
legal fees and expenses which the Participant may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company or its Affiliates, the Participant or others of the validity or enforceability of, or liability under,
any provision of the Plan or any guarantee of performance thereof (including as a result of any contest by the Participant about the amount of any payment pursuant to the Plan), plus in each case interest on any delayed payment at the applicable
Federal rate provided for in Section 7872(f)(2)(A) of the Code. 

  
 12 

 7.2    Employment Status. The Plan does not constitute a
contract of employment or impose on a Participant, the Company or the Affiliates any obligation to retain the Participant as an employee, to change the status of the Participant’s employment as an “at will” employee, or to change the
Company’s or the Affiliate’s policies regarding termination of employment. 
 7.3    Taxes and Tax
Withholding. The Company may withhold from any amounts payable under the Plan such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 

7.4    Validity and Severability. The invalidity or unenforceability of any provision of the Plan shall not
affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. 
 7.5    Governing Law. The validity, interpretation, construction and performance of
the Plan shall in all respects be governed by the laws of Delaware, without reference to principles of conflict of law. 

7.6    Notice. All notices and other communications under the Plan shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	 If to the Participant:
	  	At the last address on file on the Company’s records.
		
	 If to the Company:
	  	 Kellogg Company
 One Kellogg Square

Battle Creek, MI 49016-3599
  

Attention: General Counsel

 or to such other address as either party shall have furnished to the other in writing in accordance with the Plan. Notice and
communications shall be effective when actually received by the addressee. 
 7.7    Unfunded Plan Status.
The Plan is intended to be an unfunded plan providing benefits to a select group of management or highly compensated employees. All payments pursuant to the Plan shall be made from the general funds of the Company and no special or separate fund
shall be established or other segregation of assets made to assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company or the Affiliates as a result of
participating in the Plan. Notwithstanding the foregoing, the Company may (but shall not be obligated to) create one or more grantor trusts, the assets of which are subject to the claims of the Company’s creditors, to assist it in accumulating
funds to pay its obligations under the Plan. 

  
 13

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