Lululemon 2015 Annual Report Download - page 41

Table of Contents
We agreed to provide Mr. Almeida relocation services through a third party vendor in accordance with our standard executive relocation policy. If Mr.
Almeida voluntarily resigns or we terminate his employment for cause, we are entitled to deduct the pro-rata amount of relocation fees we paid in connection with
his relocation from any final payments owed to Mr. Almeida.
Mr. Almeida's employment may be terminated by him or by us at any time, with or without cause. In the event Mr. Almeida voluntarily resigns or we
terminate his employment for cause, he will receive only his base salary then in effect and benefits earned and payable as of the date of termination. In the event
we terminate Mr. Almeida's employment without cause, in addition to the amounts described above Mr. Almeida will be entitled to severance equal to 15 months
of his then-current base salary, subject to his compliance with the surviving terms of the employment agreement and a non-compete, non-solicitation and non-
disparagement agreement and his release of all employment-related claims he may have against us.
Lee Holman
On October 26, 2015, we entered into an Executive Employment Agreement with our current Executive Vice President, Creative Director, Lee Holman.
Under the terms of his employment agreement, Mr. Holman received an annual base salary of $500,000 and he is eligible to receive an annual target performance
bonus of 75% of his base salary for the applicable fiscal year, if specified financial performance and individual performance goals are met for that year. Mr.
Holman's annual base salary was subsequently adjusted to $550,000 for fiscal 2016 .
Mr. Holman will be eligible for annual equity awards as determined by the Compensation Committee. In addition, we will reimburse Mr. Holman for all
reasonable out-of-pocket expenses properly incurred in the course of his employment and he is entitled to participate in the applicable employee benefit plans as
are in effect from time to time.
Mr. Holman's employment may be terminated by him or by us at any time, with or without cause. In the event Mr. Holman voluntarily resigns or we
terminate his employment for cause, he will receive only his base salary then in effect and benefits earned and payable as of the date of termination. In the event
we terminate Mr. Holman's employment without cause, in addition to the amounts described above Mr. Holman will be entitled to severance equal to 15 months of
his then-current base salary, subject to his compliance with the surviving terms of the employment agreement and a non-compete, non-solicitation and non-
disparagement agreement and his release of all employment-related claims he may have against us.
Potential Post-Employment Payments
We do not have a pre-defined involuntary termination severance plan or policy for employees, including our named executive officers. Our practice in an
involuntary termination situation may include the following non-equity benefits:
• salary continuation dependent on the business reason for the termination;
• lump-sum payment based on job level and years of service with lululemon;
• paid health care coverage and COBRA payments for a limited time; and
•outplacement services.
The following table summarizes the terms that our current equity incentive plan and standard form of award agreements establish for how stock options,
performance-based restricted stock units, restricted shares, and restricted stock units would be treated in the event of termination of employment for cause,
retirement, death, disability, and other termination, and upon a change in control. As discussed above under "Agreements with Named Executive Officers", the
provisions of individual employment agreements may also establish how stock options, performance-based restricted stock units, restricted shares, and restricted
stock units would be treated in the event of termination or upon a change in control.
Summary of the Treatment of Equity Awards Upon Termination of Employment and Change in Control
Termination Scenario
Stock Options
Performance-Based Restricted Stock Units (PSUs)
Restricted Shares
Restricted Stock Units
(RSUs)
Cause
All options immediately
expire.
All PSUs are immediately forfeited.
All unvested shares of
restricted stock are
immediately forfeited.
All RSUs are immediately
forfeited.
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