page 3. "we require our suppliers to address identified non-compliance with our VCoE through the development of corrective and preventative action plans."

We require our suppliers to address identified non-compliance with our VCoE through the development of corrective and preventative action plans. Our approach to corrective action is one of continuous improvement intended to create positive and lasting change. Suppliers are able to leverage our support, including training and coaching, to develop and implement these plans.

Although our interest is always to work in partnership with suppliers to resolve issues, for severe or persistent non-compliance issues, we maintain the right to terminate a supplier relationship.3

Any concerns from any lululemon athletica inc. or subsidiary employees regarding a likely risk of, or actual, breach of the VCoE must be raised to the Vice President of Sustainable Business and Impact at the earliest opportunity. Such matters are reported to Senior Management and the Board of Directors for review.1