exv10w1



 






Exhibit 10.1




	 	 	 	 
	

	 	 	  Starbucks
Coffee Company
  PO Box 34067
  Seattle, WA
98124-1067
  206/318-1575






March 30, 2005




Mr. James Donald

2401 Utah Avenue S.

Seattle, WA 98134



Dear Jim:



This document is designed to provide you with information regarding the terms and conditions of
your employment based on your promotion to president and chief executive officer, Starbucks
Corporation, effective on April 1, 2005.



Base Salary

You will continue to be paid bi-weekly at a base salary that annualizes to $840,000.00.



Bonus

You will continue to participate in the Executive Management Bonus Plan at an incentive target of
100% of your eligible base salary, effective October 4, 2004, the first day of fiscal 2005.



Stock Options

Effective April 1, 2005, you will be granted an option to purchase up to 100,000 shares of
Starbucks common stock under the 2005 Key Employee Sub-Plan to Starbucks Corporation 2005 Long-Term
Equity Incentive Plan, subject to approval by the Compensation and Management Development Committee
of the Board of Directors. The per share exercise price of the option will be the regular trading
session closing price of a share of Starbucks common stock on the date of grant. The option will
vest in equal installments over a period of three (3) years, beginning on the first anniversary of
the date of the grant, subject to your continued employment.



Management Deferred Compensation Plan

You will continue to be eligible to participate in the Management Deferred Compensation Plan (MDCP)
if you are on our U.S. payroll.



Vacation

You will continue to receive an annual vacation grant of four (4) weeks. Unused vacation is not
carried forward to the next fiscal year.



Executive Life Insurance

You will continue to receive the maximum partner life coverage benefit paid for by Starbucks of
$1,000,000.



Retirement Programs

At present, Starbucks does not offer qualified or non-qualified pension plans and provides no
retiree medical, dental, vision or other Company retiree health care plans. If Starbucks elects to
offer such plans during the course of your employment with the Company, we will provide service
credit under these plans, which will be effective from the original date of your employment with
the Company.



In the event the provisions for giving service credit back to your original date of employment with
Starbucks are not offered under a qualified pension or retiree health care plan that Starbucks
elects to offer during your period of employment, Starbucks will provide a non-qualified
arrangement to provide such service credit and benefits as are commensurate with any qualified
plans that the Company adopts during your period of employment.




 









 








Mr. Jim Donald

March 30, 2005

Page 2





Insider Trading

As president and ceo of the Company, you will continue to be prohibited from trading Starbucks
securities (or, in some circumstances, the securities of companies doing business with Starbucks)
from time to time in accordance with the Company’s Insider Trading Policy and Blackout Procedures,
a copy of which you have been provided.



Coffee Hedging

As an officer of the Company, you are prohibited from trading in coffee commodity futures for your
own account. If you have further questions, please contact your Partner Resources generalist.



Other Benefits

You will continue to be eligible to participate in the benefits, savings and stock programs
outlined in Your Special Blend, a copy of which has been provided to you. Please note that
although it is Starbucks intention to continue these plans, they may be amended or terminated at
any time without notice.



“At will” employment

In your position as president and ceo, you will remain employed “at will,” meaning that either you
or Starbucks can end the employment relationship at any time, for any reason not prohibited by law.



Non-Competition Agreement

You will continue to be bound to the terms and conditions of the Non-Competition Agreement, dated
October 15, 2002, between you and the Company.



Miscellaneous

This letter, and the agreements and documents referred to herein, constitute the entire agreement
regarding your employment with Starbucks and supersede all prior or contemporaneous agreements or
arrangements, written or oral, concerning your employment. This letter will be governed by the
laws of the State of Washington, without regard to such state’s conflicts of laws rules.




* * * * *




Warm regards,




	 	 	 	 	 	 	 
	/s/ Howard Schultz

	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	Howard
Schultz
chairman

	 	 	 		 	 








Accepted by:




	 	 	 	 	 	 	 
	/s/ James Donald

	 	 
	 	3-30-05
	 	 
	 	 	 	 	 	 	 
	James Donald

	 	 	 	Date	 	 
	 
	 	 	 	 	 	 
	cc: Partner File
	 	 	 	 	 	 
	      Stock Administration