EX-10.1






Exhibit 10.1








October 17, 2008



Daniel J. Hurdle

91 Shy Bear Way NW

Issaquah, WA 98027




Dear Daniel,



I am pleased to offer you the position of Senior Vice President Supply Chain, Product Management
and Real Estate Development of Caribou Coffee Company, Inc. (“Caribou Coffee”). The general terms
of the offer are as follows:



	 	 	 
	START DATE:

	 	November 6, 2008
	 
	 	 
	COMPENSATION:

	 	$250,000 Annual Salary
	 
	 	 
	BONUS:

	 	You will be eligible for a target bonus up to 40% of your salary as
defined by your specific bonus plan. Caribou Coffee bonus programs are
contingent upon meeting company objectives.
	 
	 	 
	RELOCATION:

	 	You will receive a lump sum of $90,000 to cover your relocation
expenses on or before January 9, 2009. As a result of this lump sum relocation
payment you will not be eligible for any other relocation expense reimbursement
under any other company programs. When Caribou Coffee pays to relocate an
employee, that employee must make a commitment to continue employment with
Caribou Coffee for a minimum of 12 months after the relocation. If you do not
continue employment for a minimum of 12 months you will be responsible for
reimbursing Caribou Coffee for all relocation expenses. Caribou Coffee expects
full reimbursement at the time of the employee’s departure.
	 
	 	 
	LONG-TERM INCENTIVE:

	 	Stock Options: You will be issued 100,000 stock
options subject to a four-year vesting schedule
pursuant to the 2005 Equity Incentive Plan. The
stock options will be granted the first business day
of the month following your start of employment with
Caribou Coffee.
	 
	 	 
	 

	 	Co-Investment: You will be issued a Co-Investment Letter which sets
forth your agreement to invest in shares of Caribou Coffee, common
stock, par value $0.01 per share (“Common Stock”). Subject
to the Co-Investment Letter you must agree to purchase (in the open
market) shares of Common Stock with an aggregate purchase price of at
least $25,000 with such purchase(s) to be made at the market price no
later than the end of the first trading window of at least ten (10)
days occurring in calendar year 2009, subject to approval by
Caribou’s general counsel applying standard Caribou policies and
procedures. As soon as practical after you have completed your
purchase of the required amount of Common Stock, Caribou Coffee will
grant you shares of restricted stock under Caribou’s 2005 Equity
Incentive Plan in an amount equal to the same number of shares of Common Stock that you
purchase during these






 









 






	 	 	 
	 

	 	window trading periods, up to a maximum of
25,000 shares of restricted stock. This restricted stock shall be
subject to a four year (25% per year) vesting schedule and such other
terms and conditions as set forth by Caribou Coffee in the restricted
stock certificate. In addition, on each vesting date for this
restricted stock you will certify to Caribou in writing that you own
a number of shares of Common Stock acquired by you in open market
purchases that is at least equal to the number of shares in the
restricted stock grant described in this letter. Any failure to make
such certification or to own the required number of shares of Common
Stock will subject you to forfeiture of the restricted stock as
further described in the restricted stock certificate.
	 
	 	 
	BENEFITS:

	 	You will be eligible to enroll in Caribou Coffee’s medical,
dental, flexible spending account and life insurance
benefits the first of the month following 30 days of
employment. You will be eligible for other benefits, such as
401(k) and short and long-term disability, as your length of
service at Caribou Coffee increases. More detailed
information regarding all of Caribou Coffee’s benefits will
be discussed during your orientation. Benefits information,
including the New Team Member Enrollment Packet, is
available on Caribou Coffee’s benefit website located at
www.mycaribou.com. The User ID is Caribou and the Password
is Benefits.
	 
	 	 
	POOLED LEAVE:

	 	You will become eligible to accrue pooled leave on the first
day of your employment. However, you may not use your
accrued leave until you have completed six months of
continuous service with Caribou Coffee. Pooled leave will
accrue on a per check basis if you were paid for at least 64
hours. The schedule below shows how you will accrue pooled
leave in detail:






	 	 	 	 	 	 	 
	 	 	 	 	 	 	Maximum
	 	 	Days of Pooled Leave	 	Accrual Rate	 	Pooled
	Years of Service	 	Per Year	 	Per Paycheck	 	Leave Bank
	0 to 2 years
	 	12.5	 	3.85 hours	 	100 hours
	2-4 years
	 	15	 	4.62 hours	 	120 hours
	4-7 years
	 	20	 	6.16 hours	 	160 hours
	7-10 years
	 	22.5	 	6.93 hours	 	180 hours
	10+ years
	 	25	 	7.70 hours	 	200 hours






	 	 	 
	HOLIDAYS:

	 	In general, eight holidays are recognized throughout the
calendar year when Caribou Coffee Support Center offices
are officially closed. This includes seven national
holidays and the day after Thanksgiving. During your first
year of employment, you are eligible for holidays occurring
from your start date through the end of the calendar year.
	 
	 	 
	NEXT REVIEW:

	 	All management-level team members at Caribou Caribou are
reviewed with an opportunity for a merit increase in March
of each year. That review considers your performance for
the previous calendar year. For any employee starting
during that year his or her merit increase will be
pro-rated to reflect the length of time in the position. If
a hire, promotion or compensation adjustment exists in the same calendar year,
pro-ration will occur from the last compensation action.





 











 






This offer is contingent upon: (i) approval of the offer by the Compensation Committee and Board of
Directors of Caribou Coffee Company, Inc.; and (ii) successful completion of a background check and
reference check with no adverse or untruthful information resulting from such background check and
reference check.


If you have any questions, please do not hesitate to call me at 763 592 2220. I look forward to
having you on my Team!


Sincerely,



Mike Tattersfield

Chief Executive Officer

Caribou Coffee Company




Cc: Karen McBride, Vice President Human Resources