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2008
EXECUTIVE BONUS PLAN (THE “ PLAN ”)
LULULEMON
ATHLETICA INC.
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PLAN
TERM
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Fiscal year beginning
February 4, 2008 |
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PLAN EFFECTIVE
DATE
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February 4 th 2008 |
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PLAN
YEAR
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lululemon fiscal year |
PURPOSE
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The purpose of the Plan is to increase stockholder value by
providing an incentive for the achievement of goals that support
the strategic plan of lululemon athletica inc. (the “
Company ”). |
ELIGIBILITY
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The Plan is applicable for positions of executive vice
president and above, and other senior officers of the Company as
designated by the Compensation Committee of the Board of Directors
(the “ Participants ”). |
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The CEO has the authority to recommend participants. The
Compensation Committee has the sole authority to designate
Participants. |
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Eligibility will cease upon termination of the
Participant’s employment, withdrawal of designation by the
Compensation Committee, transfer to a position compensated
otherwise than as provided in the Plan, termination of the Plan by
the Company, or if the Participant engages, directly or indirectly,
in any activity which is competitive with any Company
activity. |
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If a Participant changes from an eligible position to an
ineligible position during the Plan Year, eligibility to
participate will be at the discretion of the Compensation
Committee. |
TARGET BONUS
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The target bonus shall be the amount that would be paid to the
Participant under the Plan if 100% of Financial Performance Goals
and 100% of Individual Performance Goals were met (the “
Target Bonus ”). The Target Bonus for each Participant
shall be established by the Compensation Committee no later than
ninety (90) days after the beginning of the Plan Year. |
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The Target Bonus may be established as a percentage of base
pay, or according to another method established by the Compensation
Committee. The amount of the Target Bonus earned by the Participant
shall be based on the achievement of Financial Performance Goals
and, if applicable, Individual Performance Goals. |
1
OBJECTIVE FINANCIAL PERFORMANCE GOALS
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The Compensation Committee shall select the Financial
Performance Goals for each Participant no later than ninety
(90) days after the beginning of the Plan Year and while the
outcome is substantially uncertain. |
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The Compensation Committee shall select the amount of the
Target Bonus for each Participant that will be determined by
achievement of the Financial Performance Goals no later than ninety
(90) days after the beginning of the Plan Year. |
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The Compensation Committee may establish any special
adjustments that will be applied in calculating whether the
Financial Performance Goals have been met to factor out
extraordinary items no later than ninety (90) days after the
beginning of the Plan Year and while the outcome is substantially
uncertain. |
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The Company’s overall financial performance is evaluated
against four critical financial measures: |
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diluted earnings per share |
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operating margin |
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comparable store sales |
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forward weeks sales in inventory |
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If the minimum diluted earnings per share goal established by
the Compensation Committee is not r |
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