Document:

home_Current folio_10Q_Q2FY18_Exhibit 1024

		

			 

		

		
			Exhibit 10.24
		

		
			 
		

		
			AT HOME GROUP INC. 2016 Equity Incentive Plan
		

		
			NONSTATUTORY STOCK OPTION - Notice of Grant
		

		
			 
		

		
			At Home Group Inc. (the “Company”), a Delaware corporation, hereby grants to the Optionee set forth below (the “Optionee”) an option (the “Option”) to purchase the number of Shares of common stock of the Company (“Shares”) set forth below at the Option Price set forth below, pursuant to the terms and conditions of this Notice of Grant (the “Notice”), the Nonstatutory Stock Option Award Agreement (reference number 2017-A) attached hereto as Exhibit A (the “Award Agreement”), and the At Home Group Inc. 2016 Equity Incentive Plan (the “Plan”).
		

		
			 
		

			
					
						Date of Grant:

					
					
						[●] 

				
	
					
						Name of Optionee:

					
					
						[●]

				
	
					
						Number of Shares 

					
					
						 

				
	
					
						Subject to Option:

					
					
						[●] Shares

				
	
					
						Option Price 

					
					
						 

				
	
					
						(Price Per Share):

					
					
						$[●]1 per Share

				
	
					
						Expiration Date:

					
					
						7 year anniversary of the Date of Grant.

				
	
					
						Vesting:

					
					
						The Option shall vest pursuant to the terms and conditions set forth in Section ‎3 of the Award Agreement.

				
	
					
						Vesting Start Date:

					
					
						[●]

				

		
			 
		

		
			The Option shall be subject to the execution and return of this Notice by the Optionee to the Company within 30 days of the date hereof (including by utilizing an electronic signature and/or web-based approval and notice process or any other process as may be authorized by the Company). This Option is a non-qualified stock option and is not intended by the parties hereto to be, and shall not be treated as, an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. Capitalized terms used but not defined herein shall have the meaning attributed to such terms in the Award Agreement or, if not defined therein, in the Plan, unless the context requires otherwise.  By executing this Notice, the Optionee acknowledges that his or her agreement to the covenants set forth in Section ‎7 of the Award Agreement is a material inducement to the Company in granting this Award to the Optionee. 
		

		
			 
		

		
			This Notice may be executed by facsimile or electronic means (including, without limitation, PDF) and in one or more counterparts, each of which shall be considered an original instrument, but all of which together shall constitute one and the same agreement, and shall become binding when one or more counterparts have been signed by each of the parties hereto and delivered to the other party hereto.
		

		
			 
		

		

		
			1 Option Price to equal fair market value per Share on Date of Grant.
		

		
			 
		

		
			[Signature Page Follows]
		

		
			 
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			IN WITNESS WHEREOF, the parties hereto have executed this Notice of Grant as of the Date of Grant set forth above. 
		

		
			 
		

			
					
						 

					
					
						AT HOME GROUP INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

				
	
					
						 

					
					
						Title:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						OPTIONEE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			[Signature Page to Notice of Grant for At Home Group Inc. 2016 Equity Incentive Plan Nonqualified Stock Option]

		

 

		

			 

		

		

		
			Exhibit A
		

		
			 
		

		
			AT HOME GROUP INC.
		

		
			2016 Equity Incentive Plan
		

		
			NON-STATUTORY STOCK OPTION
		

		
			Award Agreement
		

		
			 
		

		
			Reference Number: 2017-A
		

		
			 
		

		
			THIS NONSTATUTORY STOCK OPTION AWARD AGREEMENT (the “Award Agreement”) is entered into by and among At Home Group Inc. (the “Company”) and the individual set forth on the signature page to that certain Notice of Grant (the “Notice”) to which this Award Agreement is attached.  The terms and conditions of the Option granted hereby, to the extent not controlled by the terms and conditions contained in the Plan, shall be as set forth in the Notice and this Award Agreement.  Capitalized terms used but not defined herein shall have the meaning attributed to such terms in the Notice or, if not defined therein, in the Plan, unless the context requires otherwise.
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			No Right to Continued Employee Status or Consultant Service 

		
			 
		

		
			Nothing contained in this Award Agreement shall confer upon the Optionee the right to the continuation of his or her Employee status, or, in the case of a Consultant or Director, to the continuation of his or her service arrangement, or in either case to interfere with the right of the Company or any of its Subsidiaries or other Affiliates to Terminate the Optionee.
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			Term of Option 

		
			 
		

		
			As a general matter, the Option will expire on the Expiration Date set forth in the Notice and be deemed to have been forfeited by the Optionee. As provided below, the Optionee’s right to exercise the Option may expire prior to the Expiration Date if the Optionee Terminates, including in the event of the Optionee’s Disability or death. This Award Agreement shall remain in effect until the Option has fully vested and been exercised or any unexercised portion thereof has been forfeited by the Optionee as provided in this Award Agreement. No portion of this Option shall be exercisable after the Expiration Date, or such earlier date as may be applicable, except as provided herein. 
		

		
			 
		

			
	
			
				 3.
			

			
	
			
			Vesting of Option 

		
			 
		

		
			Subject to the remainder of this Section ‎3, the Option will vest in substantially equal annual installments on each of the first four anniversaries of the Vesting Start Date, such that the Option shall become fully (100%) vested as of the fourth anniversary of the Vesting Start Date, subject to the Optionee not having Terminated as of the applicable vesting date.  If the Optionee Terminates for any reason, the portion of the Option that has not vested as of such date shall terminate upon such Termination and be deemed to have been forfeited by the Optionee without consideration. 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

			
	
			
				 4.
			

			
	
			
			Exercise 

		
			 
		

		
			Prior to the Expiration Date and at any time prior to the Optionee’s Termination, the Optionee may exercise all or a portion of the Option, to the extent vested, by giving notice in the form, to the person, and using the administrative method and the exercise procedures established by the Committee from time to time (including any procedures utilizing an electronic signature and/or web-based approval and notice process), specifying the number of Shares to be acquired. The Optionee’s right to exercise the vested portion of the Option following the date that of the Optionee’s Termination will depend on the reason for such Termination, as described in Sections ‎5 and ‎6 below. 
		

		
			 
		

		
			The Optionee must pay to the Company at the time of exercise the amount of the Option Price for the number of Shares covered by the notice to exercise (“Aggregate Option Price”). The Aggregate Option Price for any Shares purchased pursuant to the exercise of an Option shall be paid in any or any combination of the following forms: (w) cash or its equivalent (e.g., a check);  (x) by making arrangements through a registered broker-dealer pursuant to cashless exercise procedures established by the Committee from time to time; (y) if permitted by the Committee in its sole discretion, the transfer, either actually or by attestation, to the Company of Shares that have been held by the Optionee for at least six (6) months (or such lesser period as may be permitted by the Committee) prior to the exercise of the Option, such transfer to be upon such terms and conditions as determined by the Committee; or (z) in the form of other property as determined by the Committee in its sole discretion. Any Shares transferred to the Company as payment of the exercise price under an Option shall be valued at their Fair Market Value on the last business day preceding the date of exercise of such Option. In addition, at the discretion of the Committee in its sole discretion at the time of exercise, the Optionee may provide for the payment of the Aggregate Option Price through Share withholding as a result of which the number of Shares issued upon exercise of an Option would be reduced by a number of Shares having a Fair Market Value equal to the Aggregate Option Price. If requested by the Committee, the Optionee shall deliver this Award Agreement to the Company, which shall endorse thereon a notation of such exercise and return such Award Agreement to the Optionee. No fractional Shares (or cash in lieu thereof) shall be issued upon exercise of an Option and the number of Shares that may be purchased upon exercise shall be rounded down to the nearest number of whole Shares. 
		

		
			 
		

			
	
			
				 5.
			

			
	
			
			Termination of Service 

		
			 
		

		
			If the Optionee incurs a Termination for any reason, whether voluntarily or involuntarily, without Cause, other than as a result of the Optionee’s death or Disability, then the portion of this Option that has previously vested but has not been exercised shall remain exercisable until, and shall terminate upon, the first to occur of (a) the end of the day that is ninety (90) days following the date of the Optionee’s Termination or, (b) the Expiration Date. If the Optionee incurs a Termination for Cause, then this Option and all rights attached hereto shall be forfeited and terminate immediately upon the effective date of such Termination for Cause. 
		

		
			 
		

			
	
			
				 6.
			

			
	
			
			Death or Disability of the Optionee 

		
			 
		

		
			Upon the Optionee’s Termination by reason of death or Disability, the vested portion of the Option shall remain exercisable until, and shall terminate upon, the first to occur of (a) the end of the day that is one (1) year after the date of the Optionee’s Termination for death or Disability, as
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			applicable, or (b) the Expiration Date of the Option.  Until such termination of the Option, the vested portion of the Option may, to the extent that this Option has not previously been exercised by the Optionee, be exercised by the Optionee in the case of his or her Disability, or, in the case of death, by the Optionee’s personal representative or the person entitled to the Optionee’s rights under this Award Agreement. 
		

		
			 
		

			
	
			
				 7.
			

			
	
			
			Prohibited Activities 

		
			 
		

			
	
			
				 (a)
			No Sale or Transfer. Unless otherwise required by law, this Option shall not be (i) sold, transferred or otherwise disposed of, (ii) pledged or otherwise hypothecated or (iii) subject to attachment, execution or levy of any kind, other than by will or by the laws of descent or distribution; provided,  however, that any transferred Option will be subject to all of the same terms and conditions as provided in the Plan and this Award Agreement and the Optionee’s estate or beneficiary appointed in accordance with the Plan will remain liable for any withholding tax that may be imposed by any federal, state or local tax authority.

		
			 
		

			
	
			
				 (b)
			Right to Terminate Option and Recovery. The Optionee understands and agrees that the Company has granted this Option to the Optionee to reward the Optionee for the Optionee’s future efforts and loyalty to the Company and its Affiliates by giving the Optionee the opportunity to participate in the potential future appreciation of the Company.  Accordingly, if (a) the Optionee materially violates the Optionee’s obligations relating to the non-disclosure or non-use of confidential or proprietary information under any Restrictive Agreement to which the Optionee is a party, or (b) the Optionee materially breaches or violates the Optionee’s obligations relating to non-disparagement under any Restrictive Agreement to which the Optionee is a party, or (c) the Optionee engages in any activity prohibited by Section 7 of this Award Agreement, or (d) the Optionee materially breaches or violates any non-solicitation obligations under any Restrictive Agreement to which the Optionee is a party, or (e) the Optionee breaches or violates any non-competition obligations under any Restrictive Agreement to which the Optionee is a party, or (f) the Optionee is convicted of a felony against the Company or any of its Affiliates, then, in addition to any other rights and remedies available to the Company, the Company shall be entitled, at its option, exercisable by written notice, to terminate the Option (including the vested portion of the Option), or any unexercised portion thereof, which shall be of no further force and effect.  “Restrictive Agreement” shall mean any agreement between the Company or any Subsidiary and the Optionee (including any prior option agreement) that contains non-competition, non-solicitation, non-hire, non-disparagement, or confidentiality restrictions applicable to the Optionee. 

		
			 
		

			
	
			
				 (c)
			Other Remedies. The Optionee specifically acknowledges and agrees that its remedies under this Section 7 shall not prevent the Company or any Subsidiary from seeking injunctive or other equitable relief in connection with the Optionee’s breach of any Restrictive Agreement.  In the event that the provisions of this Section 7 should ever be deemed to exceed the limitation provided by applicable law, then the Optionee and the Company agree that such provisions shall be reformed to set forth the maximum limitations permitted. 

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

			
	
			
				 8.
			

			
	
			
			No Rights as Stockholder 

		
			 
		

		
			The Optionee shall have no rights as a stockholder with respect to the Shares covered by any exercise of this Option until the effective date of issuance of the Shares and the entry of the Optionee’s name as a shareholder of record on the books of the Company following exercise of this Option. 
		

		
			 
		

			
	
			
				 9.
			

			
	
			
			Taxation Upon Exercise of Option; Tax Withholding; Parachute Tax Provisions

		
			 
		

		
			The Optionee understands that, upon exercise of this Option, the Optionee will recognize income, for Federal, state and local income tax purposes, as applicable, in an amount equal to the amount by which the Fair Market Value of the Shares, determined as of the date of exercise, exceeds the Option Price. The acceptance of the Shares by the Optionee shall constitute an agreement by the Optionee to report such income in accordance with then applicable law and to cooperate with Company and its subsidiaries in establishing the amount of such income and corresponding deduction to the Company and/or its subsidiaries for its income tax purposes. 
		

		
			 
		

		
			The Optionee is responsible for all tax obligations that arise as a result of the exercise of this Option. The Company may withhold from any amount payable to the Optionee an amount sufficient to cover any Federal, state or local withholding taxes which may become required with respect to such exercise or take any other action it deems necessary to satisfy any income or other tax withholding requirements as a result of the exercise this Option. The Company shall have the right to require the payment of any such taxes and require that the Optionee, or the Optionee’s beneficiary, to furnish information deemed necessary by the Company to meet any tax reporting obligation as a condition to exercise or before the issuance of any Shares pursuant to this Option. The Optionee may pay his or her withholding tax obligation in connection with the exercise of the Option, by making (w) a cash payment to the Company, or (x) arrangements through a registered broker-dealer pursuant to cashless exercise procedures established by the Committee from time to time.  In addition, the Committee, in its sole discretion, may allow the Optionee, to pay his or her withholding tax obligation in connection with the exercise of the Option, by (y) having withheld a portion of the Shares then issuable to him or her upon exercise of the Option or (z) surrendering Shares that have been held by the Optionee for at least six (6) months (or such lesser period as may be permitted by the Committee) prior to the exercise of the Award, in each case having an aggregate Fair Market Value equal to the withholding taxes.    
		

		
			 
		

		
			In connection with the grant of this Option, the parties wish to memorialize their agreement regarding the treatment of any potential golden parachute payments as set forth in Exhibit A attached hereto.
		

		
			 
		

			
	
			
				 10.
			

			
	
			
			Securities Laws; Tolling of Exercise Period Expiration 

		
			 
		

			
	
			
				 (a)
			Upon the acquisition of any Shares pursuant to the exercise of the Option, the Optionee will make such written representations, warranties, and agreements as the Committee may reasonably request in order to comply with securities laws or with this Award Agreement. Optionee hereby agrees not to offer, sell or otherwise attempt to dispose of any Shares issued to the Optionee upon exercise of the Option in any way which would: (x) require the Company to

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			file any registration statement with the Securities and Exchange Commission (or any similar filing under state law or the laws of any other county) or to amend or supplement any such filing or (y) violate or cause the Company to violate the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, or any other Federal, state or local law, or the laws of any other country. The Company reserves the right to place restrictions on any Shares the Optionee may receive as a result of the exercise of the Option. 
		

		
			 
		

			
	
			
				 (b)
			Notwithstanding any provision contained in this Award Agreement or the Plan to the contrary, 

		
			 
		

			
	
			
				(i)
			if, following the Optionee’s Termination, all or a portion of the exercise period applicable to the Option occurs during a time when the Optionee cannot exercise the Option without violating (w) an applicable Federal, state or local law, (x) the rules related to a blackout period declared by the Company, (y) any agreed to lock-up arrangement, or (z) other similar circumstance, in each case, the exercise period applicable to the Option will be tolled for the number of days that such prohibitions or restrictions apply, such that the exercise period will be extended by the same number of days as were subject to the prohibitions or restrictions; provided,  however, that the exercise period may not be extended due to such tolling past the Expiration Date of the Option as set forth above; and 

		
			 
		

			
	
			
				(ii)
			if the Expiration Date is set to occur during a time that the Optionee cannot exercise the Option without violating an applicable Federal, state or local law (and the Option has not previously been exercised or otherwise terminated), the exercise period will be tolled until such time as the violation would no longer apply; provided,  however, that the exercise period applicable to the Option in this event will be fifteen (15) days from the date such potential violation is longer applicable. 

		
			 
		

			
	
			
				 11.
			

			
	
			
			Modification, Extension and Renewal of Options 

		
			 
		

		
			This Award Agreement may not be modified, amended, terminated and no provision hereof may be waived in whole or in part except by a written agreement signed by the Company and the Optionee and no modification shall, without the consent of the Optionee, alter to the Optionee’s material detriment or materially impair any rights of the Optionee under this Award Agreement except to the extent permitted under the Plan. 
		

		
			 
		

			
	
			
				 12.
			

			
	
			
			Notices 

		
			 
		

		
			Unless otherwise provided herein, any notices or other communication given or made pursuant to the Notice, this Award Agreement or the Plan shall be in writing and shall be deemed to have been duly given (i) as of the date delivered, if personally delivered (including receipted courier service) or overnight delivery service, with confirmation of receipt; (ii) on the date the delivering party receives confirmation, if delivered by facsimile to the number indicated or by email to the address indicated or through an electronic administrative system designated by the Company; (iii) one (1) business day after being sent by reputable commercial overnight delivery service courier, with confirmation of receipt; or (iv) three (3) business days after being mailed by registered or certified
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below: 
		

		
			 
		

			
	
			
				 (a)
			If to the Company at the address below: 

		
			 
		

		
			At Home Group Inc. 
		

		
			1600 East Plano Parkway
		

		
			Plano, Texas 75074
		

		
			Attn: General Counsel 
		

		
			Phone: (972) 265-6227
		

		
			 
		

			
	
			
				 (b)
			If to the Optionee, at the most recent address, facsimile number or email contained in the Company’s records. 

		
			 
		

			
	
			
				 13.
			

			
	
			
			Award Agreement Subject to Plan and Applicable Law 

		
			 
		

		
			This Option is made pursuant to the Plan and shall be interpreted to comply therewith. A copy of the Plan is attached hereto. Any provision of this Option inconsistent with the Plan shall be considered void and replaced with the applicable provision of the Plan. The Plan shall control in the event there shall be any conflict between the Plan, the Notice, and this Award Agreement, and it shall control as to any matters not contained in this Award Agreement. The Committee shall have authority to make constructions of this Award Agreement, and to correct any defect or supply any omission or reconcile any inconsistency in this Award Agreement, and to prescribe rules and regulations relating to the administration of this Award and other Awards granted under the Plan. 
		

		
			 
		

		
			This Option shall be governed by the laws of the State of Delaware, without regard to the conflicts of law principles thereof, and subject to the exclusive jurisdiction of the courts therein. The Optionee hereby consents to personal jurisdiction in any action brought in any court, federal or state, within the State of Delaware having subject matter jurisdiction in the matter. 
		

		
			 
		

			
	
			
				 14.
			

			
	
			
			Headings and Capitalized Terms 

		
			 
		

		
			Unless otherwise provided herein, capitalized terms used herein that are defined in the Plan and not defined herein shall have the meanings set forth in the Plan. Headings are for convenience only and are not deemed to be part of this Award Agreement. Unless otherwise indicated, any reference to a Section herein is a reference to a Section of this Award Agreement.
		

		
			 
		

			
	
			
				 15.
			

			
	
			
			Severability and Reformation 

		
			 
		

		
			If any provision of this Award Agreement shall be determined by a court of law of competent jurisdiction to be unenforceable for any reason, such unenforceability shall not affect the enforceability of any of the remaining provisions hereof; and this Award Agreement, to the fullest extent lawful, shall be reformed and construed as if such unenforceable provision, or part thereof, had never been contained herein, and such provision or part thereof shall be reformed or construed so that it would be enforceable to the maximum extent legally possible. 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

			
	
			
				 16.
			

			
	
			
			Binding Effect 

		
			 
		

		
			This Award Agreement shall be binding upon the parties hereto, together with their personal executors, administrator, successors, personal representatives, heirs and permitted assigns. 
		

		
			 
		

			
	
			
				 17.
			

			
	
			
			Entire Agreement 

		
			 
		

		
			This Award Agreement, together with the Plan, supersedes all prior written and oral agreements and understandings among the parties as to its subject matter and constitutes the entire agreement of the parties with respect to the subject matter hereof.  If there is any conflict between the Notice, this Award Agreement and the Plan, then the applicable terms of the Plan shall govern. 
		

		
			 
		

			
	
			
				 18.
			

			
	
			
			Waiver 

		
			 
		

		
			Waiver by any party of any breach of this Award Agreement or failure to exercise any right hereunder shall not be deemed to be a waiver of any other breach or right whether or not of the same or a similar nature. The failure of any party to take action by reason of such breach or to exercise any such right shall not deprive the party of the right to take action at any time while or after such breach or condition giving rise to such rights continues. 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			Exhibit A
		

		
			 
		

		
			PARACHUTE TAX PROVISIONS
		

		
			 
		

		
			This Exhibit A sets forth the terms and provisions applicable to the Optionee pursuant to the provisions of Section 9 of the Award Agreement.  This Exhibit A shall be subject in all respects to the terms and conditions of the Award Agreement.  
		

		
			 
		

		
			(a)To the extent that the Optionee, would otherwise be eligible to receive a payment or benefit pursuant to the terms of this Award Agreement, any employment or other agreement with the Company or any Subsidiary or otherwise in connection with, or arising out of, the Optionee’s employment with the Company or a change in ownership or effective control of the Company or of a substantial portion of its assets (any such payment or benefit, a “Parachute Payment”), that a nationally recognized United States public accounting firm selected by the Company (the “Accountants”) determines, but for this sentence would be subject to excise tax imposed by Section 4999 of the Code (the “Excise Tax”), subject to clause (c) below, then the Company shall pay to the Optionee whichever of the following two alternative forms of payment would result in the Optionee’s receipt, on an after-tax basis, of the greater amount of the Parachute Payment notwithstanding that all or some portion of the Parachute Payment may be subject to the Excise Tax: (1) payment in full of the entire amount of the Parachute Payment (a “Full Payment”), or (2) payment of only a part of the Parachute Payment so that the Optionee receives the largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”).
		

		
			 
		

		
			(b)If a reduction in the Parachute Payment is necessary pursuant to clause (a), then the reduction shall occur in the following order:  (1) cancellation of acceleration of vesting on any equity awards for which the exercise price exceeds the then fair market value of the underlying equity; (2) reduction of cash payments (with such reduction being applied to the payments in the reverse order in which they would otherwise be made, that is, later payments shall be reduced before earlier payments); and (3) cancellation of acceleration of vesting of equity awards not covered under (1) above; provided,  however, that in the event that acceleration of vesting of equity awards is to be cancelled, acceleration of vesting of full value awards shall be cancelled before acceleration of options and stock appreciation rights and within each class such acceleration of vesting shall be cancelled in the reverse order of the date of grant of such equity awards, that is, later equity awards shall be canceled before earlier equity awards; and provided,  further, that to the extent permitted by Code Section 409A and Sections 280G and 4999 of the Code, if a different reduction procedure would be permitted without violating Code Section 409A or losing the benefit of the reduction under Sections 280G and 4999 of the Code, the Optionee may designate a different order of reduction.
		

		
			 
		

		
			(c)For purposes of determining whether any of the Parachute Payments (collectively the “Total Payments”) will be subject to the Excise Tax and the amount of such Excise Tax, (i) the Total Payments shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless and except to the extent that, in the opinion of the Accountants, such Total Payments (in whole or in part):  (1) do not constitute “parachute payments,” including giving effect to the recalculation of
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			stock options in accordance with Treasury Regulation Section 1.280G-1, Q&A 33, (2) represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the “base amount” or (3) are otherwise not subject to the Excise Tax, and (ii) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the Code.
		

		
			 
		

		
			(d)All determinations hereunder shall be made by the Accountants, which determinations shall be final and binding upon the Company and the Optionee.
		

		
			 
		

		
			(e)The federal tax returns filed by the Optionee (and any filing made by a consolidated tax group which includes the Company) shall be prepared and filed on a basis consistent with the determination of the Accountants with respect to the Excise Tax payable by the Optionee.  The Optionee shall make proper payment of the amount of any Excise Tax, and at the request of the Company, provide to the Company true and correct copies (with any amendments) of his or her federal income tax return as filed with the Internal Revenue Service, and such other documents reasonably requested by the Company, evidencing such payment (provided that the Optionee may delete information unrelated to the Parachute Payment or Excise Tax and provided,  further that the Company at all times shall treat such returns as confidential and use such return only for purpose contemplated by this paragraph).  
		

		
			 
		

		
			(f)In the event of any controversy with the Internal Revenue Service (or other taxing authority) with regard to the Excise Tax, the Optionee shall permit the Company to control issues related to the Excise Tax (at its expense), provided that such issues do not potentially materially adversely affect the Optionee but the Optionee shall control any other issues.  In the event that the issues are interrelated, the Optionee and the Company shall in good faith cooperate so as not to jeopardize resolution of either issue.  In the event of any conference with any taxing authority as to the Excise Tax or associated income taxes, the Optionee shall permit the representative of the Company to accompany the Optionee, and the Optionee and his representative shall cooperate with the Company and its representative.
		

		
			 
		

		
			(g)The Company shall be responsible for all charges of the Accountants.
		

		
			 
		

		
			(h)The Company and the Optionee shall promptly deliver to each other copies of any written communications, and summaries of any verbal communications, with any taxing authority regarding the Excise Tax covered by this Exhibit A.
		

		
			 
		

		
			(i)Nothing in this  Exhibit A is intended to violate the Sarbanes-Oxley Act of 2002 and to the extent that any advance or repayment obligation hereunder would do so, such obligation shall be modified so as to make the advance a nonrefundable payment to the Optionee and the repayment obligation null and void.
		

		
			 
		

		
			(j)Notwithstanding the foregoing, any payment or reimbursement made pursuant to this Exhibit A shall be paid to the Optionee promptly and in no event later than the end of the calendar year next following the calendar year in which the related tax is paid by the Optionee or where no taxes are required to be remitted, the end of the Optionee’s calendar year following the
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			Optionee’s calendar year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the litigation.
		

		
			 
		

		
			(k)The provisions of this Exhibit A shall survive the termination of the Optionee’s employment with the Company for any reason and the termination of the Award Agreement.Exhibit

Exhibit 10.1

August 23, 2017
 
Rosalind Brewer

Dear Roz,

Congratulations!  It is with great pleasure that I confirm your offer of employment for the position of group president, chief operating officer at Starbucks Corporation (“Starbucks” or “the Company”) reporting directly to me.  I look forward to your first day on a mutually agreeable start date.  

As a new partner, you will soon be participating in various immersion activities that will provide you information about Starbucks history and culture.

Please note, this offer is contingent upon meeting all pre-employment requirements listed on the last page of the offer.

Here Are The Specifics Of Your Offer:

Base Salary 
You will be paid a base salary that annualizes to $1,000,000.

Sign-On Bonus 
You will receive a one-time cash sign-on bonus of $1,000,000, less payroll taxes, payable in three installments. The first installment of $334,000 will be paid on your next regularly scheduled pay period after 30 days of employment. The second installment of $333,000 will be paid on your next regularly scheduled pay period after 12 months of employment.  The third installment of $333,000 will be paid on your next regularly scheduled pay period after 24 months of employment.

Please note, should you voluntarily leave Starbucks during your first year of employment, you will be responsible for reimbursing Starbucks for a pro-rata portion of the first installment of the sign-on bonus and will not be entitled to the second or third installments, such reimbursement to be calculated as follows: 

((365 - # days employed)/365) x $334,000

Should you voluntarily leave Starbucks during your second year of employment, you will be responsible for reimbursing Starbucks for a pro-rata portion of the second installment of the sign-on bonus and will not be entitled to the third installment, such reimbursement to be calculated as follows: 

((730 - # days employed)/365) x $333,000

Should you voluntarily leave Starbucks during your third year of employment, you will be responsible for reimbursing Starbucks for a pro-rata portion of the third installment of the sign-on bonus, such reimbursement to be calculated as follows: 

((1,095 - # days employed)/365) x $333,000

Your sign-on bonus is not eligible pay for purposes of making contributions into Starbucks savings plans.  By accepting this position you agree that in the event you are responsible for reimbursing a prorated gross portion of the sign-on bonus, the amount may be deducted from your final pay, to the extent allowed by law.  If the amount due exceeds that collected from the final pay, then you agree to pay the balance within 30 days after the effective termination date of employment with Starbucks. 

Sign-On Equity Award 
You will receive an equity award with an economic value of $7,000,000 (USD) under the 2005 Key Employee Sub−Plan to Starbucks Corporation Amended and Restated 2005 Long−Term Equity Incentive Plan (the "Key Employee Plan") with 60% in the form of restricted stock units and 40% in the form of stock options. The exercise price of the options will be the regular trading session closing price of a share of Starbucks stock on the grant date. The grant date for your equity awards will be after you assume your new position and otherwise effective in accordance with the Company's equity grant timing guidelines. Subject to your continued employment, the stock options will vest in equal installments over a period of three (3) years beginning on the first anniversary of the grant date. Subject to the achievement of positive fiscal 2018 adjusted operating income and your continued employment, the restricted stock units will vest in equal installments over a period of three (3) years, beginning on the first anniversary of your start date.

To ensure processing of this grant, please sign this offer letter and email a copy to Stock
Administration at stockadm@starbucks.com.

Executive Management Bonus Plan
You will be eligible to participate in the Executive Management Bonus Plan (EMBP) starting in fiscal 2018.  Your incentive target will be 150% of your eligible base salary, prorated from your eligibility date through the end of fiscal 2018.  For more information about the EMBP please talk with your Partner Resources contact. Starbucks reserves the right to review, change, amend, or cancel incentive plans at any time.

Long-Term Incentives 
Starbucks Total Rewards philosophy includes long-term incentives.  Each year, as determined by the Compensation & Management Development Committee (the “Committee”), you may be eligible to receive an equity award under the Leadership Stock Plan with 60% of the economic value in the form of performance restricted stock units and 40% of the economic value in the form of stock options.  Annual awards are typically granted in November and are contingent upon Committee approval after considering a number of factors.  You will be eligible for an annual long-term incentive award starting in fiscal 2019 (with an expected grant sometime in November 2018).  Starbucks reserves the right to review, change, amend, or cancel long-term incentive plans at any time.

Stock Ownership
As a senior executive, the Company’s executive stock ownership guidelines will apply to you.  The guidelines require covered executives to achieve a minimum investment in Starbucks stock within five (5) years.  Your minimum investment as group president, chief operating officer is three (3) times your annual base salary.  A copy of the guidelines will be provided to you.

Management Deferred Compensation Plan
Eligibility for the Management Deferred Compensation Plan (MDCP) is limited to certain partners on Starbucks (or a participating affiliate’s) U.S. payroll who are in the position of director level or above.  The MDCP is a non-qualified deferred compensation plan that provides eligible partners with the opportunity to save a portion of their eligible pay on a pre-tax basis.  If you are eligible, you will receive enrollment information at your home address as soon as administratively possible after your start date.  These materials will outline the limited window in which you will have an opportunity to enroll. If you have questions about the MDCP, please contact the Starbucks Savings Team at savings@starbucks.com.  Once eligible, you may also obtain more information about the MDCP online at netbenefits.fidelity.com. 

If you are determined to be eligible to enroll during the annual MDCP open enrollment period between August 26 and September 18, in addition to base pay you may also elect to defer a portion of the Executive Management Bonus Plan (EMBP) as defined in the MDCP plan document. That election will apply to EMBP payments, if any, that are paid at the end of the subsequent calendar year.  Any amount that you elect to defer, whether base pay or eligible bonus pay, will be subject to the terms and conditions of the MDCP. 

Relocation Benefits 
You will be eligible for relocation benefits if you accept our offer of employment.  Starbucks wants your move to the Seattle, Washington area to be a positive one.  Our relocation provider will support your relocation. 

Your relocation benefits will be determined after you complete an assessment call with a consultant from our relocation provider.  After the completion of the assessment, you will be provided with an outline of the relocation benefits that will be offered to you.  Relocation benefits will not be authorized until you accept our offer of employment.  Once accepted, a relocation consultant will then contact you to begin the process.  You will be required to sign the Partner Relocation Repayment 

Agreement and return it to your relocation consultant before relocation benefits will be administered.  If you have any questions in the interim, please consult your Starbucks Partner Resources contact.

401(k)
The Future Roast 401(k) Savings Plan provides eligible partners with the opportunity to save on a 401(k) pre-tax as well as a Roth after-tax basis, and to receive Starbucks Match of 100% on the first 5% of eligible pay (subject to IRS imitations) contributed each pay period.  Partners will be able to enroll online at netbenefits.fidelity.com or by phone by calling Fidelity at (866) 697-1048 starting approximately 75 days prior to attainment of Plan eligibility (90 days of employment, age 18 and on the Starbucks  or a participating affiliate’s U.S. payroll).  Payroll contributions will start within one to two pay periods after you enroll or the date you meet the Plan's eligibility requirements.   Fidelity will mail a welcome letter containing enrollment instructions and information to your home shortly before you are expected to meet the eligibility requirements if you have not yet enrolled.  These materials will outline the specific Plan provisions including eligibility for and crediting of the employer matching contributions. If after meeting the eligibility requirements, you do not receive the welcome letter, or if you have any questions about the Future Roast 401(k) Savings Plan, please contact the Starbucks Savings team via email at savings@starbucks.com. Once you are eligible to enroll, you may obtain more information about the Plan online at netbenefits.fidelity.com.

COBRA
Should you elect COBRA (continuation of health coverage) from your previous employer, Starbucks will reimburse you for your COBRA premiums less applicable taxes until you become eligible for Starbucks benefits after the mandatory waiting period.  Once you have signed up for COBRA coverage (within the 60-day election period), submit proof of payment(s) to your Partner Resources contact for processing.  The proof of payment must be submitted for reimbursement within 60 days of your Starbucks benefit eligibility date.  The reimbursement is classified as income by the federal government and is subject to all applicable payroll taxes and deductions. 

Executive Life Insurance
As an executive, you and your family have a greater exposure to financial loss resulting from your death.  Starbucks recognizes this exposure and has provided for coverage greater than outlined in Your Special Blend.  You will receive partner life coverage equal to three (3) times your annualized base pay, paid for by Starbucks.  You may purchase up to an additional two (2) times your annualized base pay (for a total of five (5) times pay) to a maximum life insurance benefit of $2,000,000.  

Executive Physical Exam
You are eligible to participate in Starbucks executive physical program.  Information about the program and our program provider will be emailed to you (new participants are notified at the beginning of each calendar quarter).  The program provider will contact you shortly thereafter to establish an appointment.  If you have questions about this physical, please consult your Partner Resources contact. 

Insider Trading
You will 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.  A copy of the policy will be provided to you on your first day and you will be required to complete an online training and certify that you have read and understood the policy.  

Coffee and Dairy Hedging 
As an officer of the Company you are prohibited from trading in coffee or dairy futures, options or similar instruments for your own account.  If you have further questions, please consult your Partner Resources contact.

An overview of Starbucks benefits, savings and stock programs can be found at http://www.starbucks.com/ysb.  If you have questions regarding these programs or eligibility, please call the Starbucks Benefits Center at (877) SBUXBEN.  Please note that although it is Starbucks intent to continue these plans, they may be amended or terminated at anytime without notice.

All Starbucks partners in the State of Washington are required to have their pay electronically deposited in a bank or financial institution of their choice within the United States or electronically loaded on a paycard.  The deposits may be made to your checking, savings, paycard, or money market account or a combination thereof.  Please be prepared to fill out the necessary automatic deposit information during your first week of employment with the company. 

If you accept this offer it is contingent on the following conditions of hire including: 

		
	•
	Employment Eligibility Verification; proof of eligibility to work in the United States (All Employees)

		
	•
	Background Check

		
	•
	Signing a Confidentiality, Non-Solicitation and Non-Competition Agreement 

		
	•
	Partner Guide Acknowledgement

Your employment with Starbucks Corporation will be “at will,” meaning that either you or  the Company will be entitled to terminate your employment at any time and for any reason, not prohibited by law.  

On behalf of the entire team, I am excited to welcome you to Starbucks and look forward to working with you.  
  
Warm regards,

/s/ Kevin R. Johnson

Kevin Johnson
president and ceo

Cc:    Stock Administration 
Executive Recruiting

Enc.    MDCP Summary and Enrollment Guide
Your Special Blend
COBRA Reimbursement Information
Enrollment Guide
Future Roast 401(k) Plan Summary
Insider Trading Policy
Confidentiality, Non-Solicitation and Non-Competition Agreement
Stock Ownership Guidelines

I accept employment with Starbucks Corporation, or its wholly-owned subsidiaries, according to the terms set forth above.

/s/ Rosalind G. Brewer                                 05 Sept 2017                                    
Name                                Date of Acceptance

Please email this signed letter to: 
Stock Administration Stockadm@starbucks.com
And Executive Recruiting ExecutiveRecruiting@starbucks.com

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