Document:

exv10w1w1

 

Exhibit 10.1.1

COMMERCIAL PAPER DEALER AGREEMENT

4(2) PROGRAM

between

STARBUCKS CORPORATION, as Issuer

and

BANC OF AMERICA SECURITIES LLC, as Dealer

Concerning Notes to be issued pursuant to an Issuing and Paying Agency Agreement, dated as
of March 27, 2007, between the Issuer and JPMorgan Chase Bank, National Association, as
Issuing and Paying Agent

Dated as of March 27, 2007

 

 

 

COMMERCIAL PAPER DEALER AGREEMENT

4(2) Program

This agreement (the “Agreement”), dated as of March 27, 2007, sets forth the understandings between
Starbucks Corporation (the “Issuer”) and Banc of America Securities LLC (the “Dealer”), each named
on the cover page hereof, in connection with the issuance and sale by the Issuer of its short-term
promissory notes (the “Notes”) through the Dealer.

Certain terms used in this Agreement are defined in Section 6 hereof.

The Addendum to this Agreement, and any Annexes or Exhibits described in this Agreement or such
Addendum, are hereby incorporated into this Agreement and made fully a part hereof.

	1.	 	Offers, Sales and Resales of Notes.

	 	1.1	 	While (i) the Issuer has and shall have no obligation to sell the Notes to the Dealer
or to permit the Dealer to arrange any sale of the Notes for the account of the Issuer, and
(ii) the Dealer has and shall have no obligation to purchase the Notes from the Issuer or
to arrange any sale of the Notes for the account of the Issuer, the parties hereto agree
that in any case where the Dealer purchases Notes from the Issuer, or arranges for the sale
of Notes by the Issuer, such Notes will be purchased or sold by the Dealer in reliance on
the representations, warranties, covenants and agreements of the Issuer contained herein or
made pursuant hereto and on the terms and conditions and in the manner provided herein.
	 
	 	1.2	 	So long as this Agreement shall remain in effect, and in addition to the limitations
contained in Section 1.7 hereof, the Issuer shall not, without the consent of the Dealer,
offer, solicit or accept offers to purchase, or sell, any Notes except (a) in transactions
with one or more dealers which may from time to time after the date hereof become dealers
with respect to the Notes by executing with the Issuer one or more agreements which contain
provisions substantially identical to those contained in Section 1 of this Agreement, of
which the Issuer hereby undertakes to provide the Dealer prompt notice or (b) in
transactions with the other dealers listed on the Addendum hereto, which are executing
agreements with the Issuer which contain provisions substantially identical to Section 1 of
this Agreement contemporaneously herewith. So long as this Agreement is in effect, in no
event shall the Issuer offer, solicit or accept offers to purchase, or sell, any Notes
directly on its own behalf in transactions with persons other than broker-dealers as
specifically permitted in this Section 1.2.
	 
	 	1.3	 	The Notes shall be in a minimum denomination of $250,000 or integral multiples of
$1,000 in excess thereof, will bear such interest rates, if interest bearing, or will be
sold at such discount from their face amounts, as shall be agreed upon by the Dealer and
the Issuer, shall have a maturity not exceeding 397 days from the date of
issuance and may have such terms as are specified in Exhibit C hereto or the Private

2

 

	 	 	 	Placement Memorandum. The Notes shall not contain any provision for extension, renewal
or automatic “rollover.”
	 
	 	1.4	 	The authentication and issuance of, and payment for, the Notes shall be effected in
accordance with the Issuing and Paying Agency Agreement, and the Notes shall be either
individual physical certificates or book-entry notes evidenced by one or more master notes
(each, a “Master Note”) registered in the name of The Depository Trust Company (“DTC”) or
its nominee, in the form or forms annexed to the Issuing and Paying Agency Agreement.
	 
	 	1.5	 	If the Issuer and the Dealer shall agree on the terms of the purchase of any Note by
the Dealer or the sale of any Note arranged by the Dealer (including, but not limited to,
agreement with respect to the date of issue, purchase price, principal amount, maturity and
interest rate or interest rate index and margin (in the case of interest-bearing Notes) or
discount thereof (in the case of Notes issued on a discount basis), and appropriate
compensation for the Dealer’s services hereunder) pursuant to this Agreement, the Issuer
shall cause such Note to be issued and delivered in accordance with the terms of the
Issuing and Paying Agency Agreement and payment for such Note shall be made by the
purchaser thereof, either directly or through the Dealer, to the Issuing and Paying Agent,
for the account of the Issuer. Except as otherwise agreed, in the event that the Dealer is
acting as an agent and a purchaser shall either fail to accept delivery of or make payment
for a Note on the date fixed for settlement, the Dealer shall promptly notify the Issuer,
and if the Dealer has theretofore paid the Issuer for the Note, the Issuer will promptly
return such funds to the Dealer against its return of the Note to the Issuer, in the case
of a certificated Note, and upon notice of such failure in the case of a book-entry Note.
If such failure occurred for any reason other than default by the Dealer, the Issuer shall
reimburse the Dealer on an equitable basis for the Dealer’s loss of the use of such funds
for the period such funds were credited to the Issuer’s account.
	 
	 	1.6	 	In the case of any agreement by the Dealer to purchase a Note hereunder (other than as
agent) which provides for a settlement date that is three New York Business Days or more
after the date of such agreement, the obligation of the Dealer to purchase the Note under
such agreement shall be subject to the conditions set forth on Exhibit D.
	 
	 	1.7	 	The Dealer and the Issuer hereby establish and agree to observe the following
procedures in connection with offers, sales and subsequent resales or other transfers of
the Notes:

	 	(a)	 	Offers and sales of the Notes by or through the Dealer shall be made only
to: (i) investors reasonably believed by the Dealer to be Qualified Institutional
Buyers, Institutional Accredited Investors or Sophisticated Individual Accredited
Investors and (ii) non-bank fiduciaries or agents that will be purchasing Notes for
one or more accounts, each of which is reasonably believed by the Dealer to be an
Institutional Accredited Investor or Sophisticated Individual Accredited Investor.

3

 

	 	(b)	 	Resales and other transfers of the Notes by the holders thereof shall be
made only in accordance with the restrictions in the legend described in clause (e)
below.
	 
	 	(c)	 	No general solicitation or general advertising shall be used in connection
with the offering of the Notes. Without limiting the generality of the foregoing,
without the prior written approval of the Dealer, the Issuer shall not issue any
press release or place or publish any “tombstone” or other advertisement relating to
the Notes.
	 
	 	(d)	 	No sale of Notes to any one purchaser shall be for less than $250,000
principal or face amount, and no Note shall be issued in a smaller principal or face
amount. If the purchaser is a non-bank fiduciary acting on behalf of others, each
person for whom such purchaser is acting must purchase at least $250,000 principal or
face amount of Notes.
	 
	 	(e)	 	Offers and sales of the Notes by the Issuer through the Dealer acting as
agent for the Issuer shall be made in accordance with Rule 506 under the Securities
Act, and shall be subject to the restrictions described in the legend appearing on
Exhibit A hereto. A legend substantially to the effect of such Exhibit A shall
appear as part of the Private Placement Memorandum used in connection with offers and
sales of Notes hereunder, as well as on each individual certificate representing a
Note and each Master Note representing book-entry Notes offered and sold pursuant to
this Agreement.
	 
	 	(f)	 	The Dealer shall furnish or shall have furnished to each purchaser of Notes
for which it has acted as the dealer a copy of the then-current Private Placement
Memorandum unless such purchaser has previously received a copy of the Private
Placement Memorandum as then in effect. The Private Placement Memorandum shall
expressly state that any person to whom Notes are offered shall have an opportunity
to ask questions of, and receive publicly available information from, the Issuer and
the Dealer and shall provide the names, addresses and telephone numbers of the
persons from whom information regarding the Issuer may be obtained. Notwithstanding
the foregoing, nothing in this Agreement or the Private Placement Memorandum shall
obligate the Issuer to provide information which has not been previously made
available to the public.
	 
	 	(g)	 	The Issuer agrees, for the benefit of the Dealer and each of the holders
and prospective purchasers from time to time of the Notes that, if at any time the
Issuer shall not be subject to Section 13 or 15(d) of the Exchange Act, the Issuer
will furnish, upon request and at its expense, to the Dealer and to holders and
prospective purchasers of Notes information required by Rule 144A(d)(4)(i) in
compliance with Rule 144A(d).
	 
	 	(h)	 	In the event that any Note offered or to be offered by the Dealer would be
ineligible for resale under Rule 144A(d)(3), the Issuer shall immediately notify 

4

 

	 	 	 	the
Dealer (by telephone, confirmed in writing) of such fact and shall promptly
prepare and deliver to the Dealer an amendment or supplement to the Private Placement
Memorandum describing the Notes that are ineligible, the reason for such ineligibility
and any other relevant information relating thereto.
	 
	 	(i)	 	The Issuer represents that it is not currently issuing commercial
paper in the United States market in reliance upon the exemption provided by Section
3(a)(3) of the Securities Act. The Issuer agrees that, if it shall issue commercial
paper after the date hereof in reliance upon such exemption (a) the proceeds from the
sale of the Notes will be segregated from the proceeds of the sale of any such
commercial paper by being placed in a separate account; (b) the Issuer will institute
appropriate corporate procedures to ensure that the offers and sales of notes issued
by the Issuer pursuant to the Section 3(a)(3) exemption are not integrated with
offerings and sales of Notes hereunder; and (c) the Issuer will comply with each of
the requirements of Section 3(a)(3) of the Securities Act in selling commercial paper
or other short-term debt securities other than the Notes in the United States.

	 	1.8	 	The Issuer hereby represents and warrants to the Dealer, in connection with offers, sales
and resales of Notes, as follows:

	 	(a)	 	The Issuer hereby confirms to the Dealer that within the preceding six months
neither the Issuer nor any person other than the Dealer or the other dealers referred
to in Section 1.2 hereof acting on behalf of the Issuer has offered or sold any Notes,
or any substantially similar security of the Issuer (including, without limitation,
medium-term notes issued by the Issuer), to, or solicited offers to buy any such
security from, any person other than the Dealer or the other dealers referred to in
Section 1.2 hereof. The Issuer also agrees that as long as the Notes are being
offered for sale by the Dealer and the other dealers referred to in Section 1.2 hereof
as contemplated hereby and until at least six months after the offer of Notes hereunder
has been terminated, neither the Issuer nor any person other than the Dealer or the
other dealers referred to in Section 1.2 hereof (except as contemplated by Section 1.2
hereof) will offer the Notes or any substantially similar security of the Issuer for
sale to, or solicit offers to buy any such security from, any person other than the
Dealer or the other dealers referred to in Section 1.2 hereof, it being understood that
such agreement is made with a view to bringing the offer and sale of the Notes within
the exemption provided by Section 4(2) of the Securities Act and Rule 506 thereunder
and shall survive any termination of this Agreement. The Issuer hereby represents and
warrants that it has not taken, and will not take, any action that would, and has not
omitted to take, and will not omit to take, any action the absence of which would,
cause the offering and sale of Notes hereunder to be integrated with any other offering
of securities, whether such offering is made by the Issuer or some other party or
parties.
	 
	 	(b)	 	The Issuer represents and agrees that the proceeds of the sale of the Notes may
be used for the purpose of buying, carrying or trading securities within the meaning of
Regulation T and the interpretations thereunder by the Board of Governors of the

5

 

	 	 	 	Federal Reserve System. In the event that the Issuer determines to use such proceeds
for the purpose of buying, carrying or trading securities, whether in connection with
an acquisition of another company or otherwise, the Issuer shall
give the Dealer at least three (3) business days’ prior written notice to that effect;
provided, however, that no such notice shall be required of the Issuer
for purchases of securities issued by the Issuer and purchased for immediate retirement.
The Issuer shall also give the Dealer prompt notice of the actual date that it
commences to purchase securities with the proceeds of the Notes. Thereafter, in the
event that the Dealer purchases Notes as principal and does not resell such Notes on the
day of such purchase, to the extent necessary to comply with Regulation T and the
interpretations thereunder, the Dealer will sell such Notes either (i) only to offerees
it reasonably believes to be Qualified Institutional Buyers or to Qualified
Institutional Buyers it reasonably believes are acting for other Qualified Institutional
Buyers, in each case in accordance with Rule 144A or (ii) in a manner which would not
cause a violation of Regulation T and the interpretations thereunder.

	2.	 	Representations and Warranties of Issuer.
	 
	 	 	The Issuer represents and warrants that:

	 	2.1	 	The Issuer is a corporation duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation and has all the requisite power and
authority to execute, deliver and perform its obligations under the Notes, this Agreement
and the Issuing and Paying Agency Agreement.
	 
	 	2.2	 	This Agreement and the Issuing and Paying Agency Agreement have been duly authorized,
executed and delivered by the Issuer and constitute legal, valid and binding obligations of
the Issuer enforceable against the Issuer in accordance with their terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).
	 
	 	2.3	 	The Notes have been duly authorized, and when issued as provided in the Issuing and
Paying Agency Agreement, will be duly and validly issued and will constitute legal, valid
and binding obligations of the Issuer enforceable against the Issuer in accordance with
their terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally, and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or at law).
	 
	 	2.4	 	The offer and sale of the Notes in the manner contemplated hereby do not require
registration of the Notes under the Securities Act, pursuant to the exemption from
registration contained in Section 4(2) thereof, and no indenture in respect of the Notes is
required to be qualified under the Trust Indenture Act of 1939, as amended.

6

 

	 	2.5	 	The Notes will rank pari passu with all other unsecured and unsubordinated indebtedness
of the Issuer.
	 
	 	2.6	 	No consent or action of, or filing or registration with, any governmental or public
regulatory body or authority, including the SEC, is required to authorize, or is otherwise
required in connection with the execution, delivery or performance of, this Agreement, the
Notes or the Issuing and Paying Agency Agreement, except as may be required by the
securities or Blue Sky laws of the various states in connection with the offer and sale of
the Notes.
	 
	 	2.7	 	Neither the execution and delivery of this Agreement and the Issuing and Paying Agency
Agreement, nor the issuance of the Notes in accordance with the Issuing and Paying Agency
Agreement, nor the fulfillment of or compliance with the terms and provisions hereof or
thereof by the Issuer, will (i) result in the creation or imposition of any mortgage, lien,
charge or encumbrance of any nature whatsoever upon any of the properties or assets of the
Issuer, or (ii) violate or result in a breach or a default under any of the terms of the
Issuer’s charter documents or by-laws, any contract or instrument to which the Issuer is a
party or by which it or its property is bound, or any law or regulation, or any order,
writ, injunction or decree of any court or government instrumentality, to which the Issuer
is subject or by which it or its property is bound, which breach or default might have a
material adverse effect on the condition (financial or otherwise), operations or business
prospects of the Issuer or the ability of the Issuer to perform its obligations under this
Agreement, the Notes or the Issuing and Paying Agency Agreement.
	 
	 	2.8	 	Except as otherwise disclosed by the Issuer in the Company Information (as defined
below), there is no litigation or governmental proceeding pending, or to the knowledge of
the Issuer threatened, against or affecting the Issuer or any of its subsidiaries which is
reasonably likely to result in a material adverse change in the condition (financial or
otherwise), operations or business prospects of the Issuer or the ability of the Issuer to
perform its obligations under this Agreement, the Notes or the Issuing and Paying Agency
Agreement.
	 
	 	2.9	 	The Issuer is not an “investment company” within the meaning of the Investment Company
Act of 1940, as amended.
	 
	 	2.10	 	Neither the Private Placement Memorandum nor the Company Information contains any
untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.
	 
	 	2.11	 	Each (a) sale and issuance of Notes by the Issuer hereunder and (b) amendment or
supplement of the Private Placement Memorandum shall be deemed a representation and
warranty by the Issuer to the Dealer, as of the date and time thereof, that, both before
and after giving effect to such sale and issuance and after giving effect to such amendment
or supplement, (i) the representations and warranties given by the Issuer set forth in this
Section 2 remain true and correct on and as of such date as if 

7

 

	 	 	 	made on and as of such date
and at such time, and (ii) in the case of an issuance of Notes, the Notes being issued
on such date have been duly and validly issued and constitute legal, valid and binding
obligations of the Issuer, enforceable against the Issuer in accordance with their terms,
subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law) and (iii) in the case of an issuance or sale of Notes, since the
date of the most recent Private Placement Memorandum, there has been no material adverse
change in the condition (financial or otherwise), operations or business prospects of the
Issuer which has not been disclosed to the Dealer in writing.

	3.	 	Covenants and Agreements of Issuer.
	 
	 	 	The Issuer covenants and agrees that:

	 	3.1	 	The Issuer will give the Dealer prompt notice (but in any event prior to any subsequent
sale or issuance of Notes hereunder) of any amendment to, modification of or waiver with
respect to, the Notes or the Issuing and Paying Agency Agreement, including a complete copy
of any such amendment, modification or waiver.
	 
	 	3.2	 	The Issuer shall, whenever there shall occur any change in the Issuer’s condition
(financial or otherwise), operations or business prospects or any development or occurrence
in relation to the Issuer that would be materially adverse to holders of the Notes or
potential holders of the Notes (including any downgrading or receipt of any notice of
intended or potential downgrading or any review for potential change in the rating accorded
any of the Issuer’s securities by any nationally recognized statistical rating organization
which has published a rating of the Notes), promptly, and in any event prior to any
subsequent sale or issuance of Notes hereunder, notify the Dealer (by telephone, confirmed
in writing) of such materially adverse change, development or occurrence.
	 
	 	3.3	 	To the extent permitted by applicable law, the Issuer shall from time to time furnish
to the Dealer such information as the Dealer may reasonably request, including, without
limitation, any press releases or publicly available material provided by the Issuer to
any national securities exchange or rating agency, regarding (i) the Issuer’s operations
and financial condition, (ii) the due authorization and execution of the Notes and (iii)
the Issuer’s ability to pay the Notes as they mature.
	 
	 	3.4	 	The Issuer will take all such action as the Dealer may reasonably request to ensure
that each offer and each sale of the Notes will comply with any applicable state Blue Sky
laws; provided, however, that the Issuer shall not be obligated to file any general
consent to service of process or to qualify as a foreign corporation in any jurisdiction
in which it is not so qualified or subject itself to taxation in respect of doing business
in any jurisdiction in which it is not otherwise so subject.

8

 

	 	3.5	 	The Issuer will not be in default of any of its obligations hereunder, under the
Notes or under the Issuing and Paying Agency Agreement, at any time that any of the Notes
are outstanding.
	 
	 	3.6	 	The Issuer shall not issue or sell Notes hereunder until the Dealer shall have
received (a) an opinion of counsel to the Issuer, addressed to the Dealer, satisfactory in
form and substance to the Dealer, (b) a copy of the executed Issuing and Paying Agency
Agreement as then in effect, (c) a copy of resolutions adopted by the Board of Directors
of the Issuer, satisfactory in form and substance to the Dealer and certified by the
Secretary or similar officer of the Issuer, authorizing execution and delivery by the
Issuer of this Agreement, the Issuing and Paying Agency Agreement and the Notes and
consummation by the Issuer of the transactions contemplated hereby and thereby, (d) prior
to the issuance of any book-entry Notes represented by a master note registered in the
name of DTC or its nominee, a copy of the executed Letter of Representations among the
Issuer, the Issuing and Paying Agent and DTC and of the executed master note, (e) prior to
the issuance of any Notes in physical form, a copy of such form (unless attached to this
Agreement or the Issuing and Paying Agency Agreement) and (f) such other certificates,
opinions, letters and documents as the Dealer shall have reasonably requested.
	 
	 	3.7	 	The Issuer shall reimburse the Dealer for all of the Dealer’s reasonable
out-of-pocket expenses related to this Agreement, including expenses incurred in
connection with its preparation and negotiation, and the transactions contemplated hereby
(including, but not limited to, the reasonable costs of printing and distribution of the
Private Placement Memorandum), but not including the fees and out-of-pocket expenses of
the Dealer’s counsel.
	 
	 	3.8	 	Without limiting any obligation of the Issuer pursuant to this Agreement to provide
the Dealer with credit and financial information, the Issuer hereby acknowledges and
agrees that the Dealer may share the Company Information and any other publicly available
information or matters relating to the Issuer or the transactions contemplated hereby with
affiliates of the Dealer, including, but not limited to, Bank of America, N.A., and that
such affiliates may likewise share such publicly available information relating to the
Issuer or such transactions with the Dealer.

	4.	 	Disclosure.

	 	4.1	 	The Private Placement Memorandum and its contents (other than the Dealer Information)
shall be the sole responsibility of the Issuer. The Private Placement Memorandum shall
contain a statement expressly offering an opportunity for each prospective purchaser to ask
questions of, and receive answers with publicly available information from, the Issuer
concerning the offering of Notes and to obtain relevant additional publicly available
information which the Issuer possesses or can acquire without unreasonable effort or
expense. Notwithstanding the foregoing, nothing in this Agreement or the Private Placement
Memorandum shall obligate the Issuer to provide information which has not been previously
made available to the public.

9

 

	 	4.2	 	The Issuer agrees to promptly furnish the Dealer with any material public Company
Information, as it becomes available.
	 
	 	4.3	 	(a) The Issuer further agrees to notify the Dealer promptly upon the occurrence of any
event relating to or affecting the Issuer that would cause the Company Information then in
existence to include an untrue statement of a material fact or to omit to state a material
fact necessary in order to make the statements contained therein, in light of the
circumstances under which they are made, not misleading.
	 
	 	 	 	(b) In the event that the Issuer gives the Dealer notice pursuant to Section 4.3(a) and the
Dealer notifies the Issuer that it then has Notes it is holding in inventory, the Issuer
agrees promptly to supplement or amend the Private Placement Memorandum so that the Private
Placement Memorandum, as amended or supplemented, shall not contain an untrue statement of
a material fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, and the
Issuer shall make such supplement or amendment available to the Dealer.
	 
	 	 	 	(c) In the event that (i) the Issuer gives the Dealer notice pursuant to Section 4.3(a),
(ii) the Dealer does not notify the Issuer that it is then holding Notes in inventory and
(iii) the Issuer chooses not to promptly amend or supplement the Private Placement
Memorandum in the manner described in clause (b) above, then all solicitations and sales of
Notes shall be suspended until such time as the Issuer has so amended or supplemented the
Private Placement Memorandum, and made such amendment or supplement available to the
Dealer.

	5.	 	Indemnification and Contribution.

	 	5.1	 	The Issuer will indemnify and hold harmless the Dealer, each individual, corporation,
partnership, trust, association or other entity controlling the Dealer, any affiliate of
the Dealer or any such controlling entity and their respective directors, officers,
employees, partners, incorporators, shareholders, servants, trustees and agents
(hereinafter the “Indemnitees”) against any and all liabilities, penalties, suits, causes
of action, losses, damages, claims, costs and expenses (including, without limitation,
reasonable fees and disbursements of counsel) or judgments of whatever kind or nature (each
a “Claim”), imposed upon, incurred by or asserted against the Indemnitees (i) arising out
of or based upon any allegation that the Private Placement Memorandum, the Company
Information or any information provided by the Issuer to the Dealer included (as of any
relevant time) or includes an untrue statement of a material fact or omitted (as of any
relevant time) or omits to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading or (ii)
arising out of or based upon the breach by the Issuer of any agreement, covenant or
representation made in or pursuant to this Agreement. The Issuer and the Dealer agree that
the Issuer shall have no liability under this section for any Claim arising out of or based
on Dealer Information.

10

 

	 	5.2	 	Provisions relating to claims made for indemnification under this Section 5 are set
forth on Exhibit B to this Agreement.
	 
	 	5.3	 	In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for in this Section 5 is held to be unavailable or insufficient to
hold harmless the Indemnitees, although applicable in accordance with the terms of this
Section 5, the Issuer shall contribute to the aggregate costs incurred by the Dealer in
connection with any Claim in the proportion of the respective economic interests of the
Issuer and the Dealer; provided, however, that such contribution by the Issuer shall be in
an amount such that the aggregate costs incurred by the Dealer do not exceed the aggregate
of the commissions and fees earned by the Dealer hereunder with respect to the issue or
issues of Notes to which such Claim relates. The respective economic interests shall be
calculated by reference to the aggregate proceeds to the Issuer of the Notes issued
hereunder and the aggregate commissions and fees earned by the Dealer hereunder.

	6.	 	Definitions.

	 	6.1	 	“Claim” shall have the meaning set forth in Section 5.1.
	 
	 	6.2	 	“Company Information” at any given time shall mean the Private Placement Memorandum
together with, to the extent applicable, (i) the Issuer’s most recent report on Form 10-K
filed with the SEC and each report on Form 10-Q or 8-K filed by the Issuer with the SEC
since the most recent Form 10-K, (ii) the Issuer’s most recent annual audited financial
statements and each published interim financial statement or report prepared subsequent
thereto, if not included in item (i) above, (iii) the Issuer’s other publicly available
recent reports, including, but not limited to, any publicly available filings or reports
provided to its shareholders, (iv) any other information or disclosure prepared pursuant to
Section 4.3 hereof and (v) any information prepared or approved by the Issuer for
dissemination to investors or potential investors in the Notes.
	 
	 	6.3	 	“Dealer Information” shall mean material concerning the Dealer provided by the Dealer
in writing expressly for inclusion in the Private Placement Memorandum.
	 
	 	6.4	 	“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended.
	 
	 	6.5	 	“Indemnitee” shall have the meaning set forth in Section 5.1.
	 
	 	6.6	 	“Institutional Accredited Investor” shall mean an institutional investor that is an
accredited investor within the meaning of Rule 501 under the Securities Act and that has
such knowledge and experience in financial and business matters that it is capable of
evaluating and bearing the economic risk of an investment in the Notes, including, but not
limited to, a bank, as defined in Section 3(a)(2) of the Securities Act, or a savings and
loan association or other institution, as defined in Section 3(a)(5)(A) of the Securities
Act, whether acting in its individual or fiduciary capacity.

11

 

	 	6.7	 	“Issuing and Paying Agency Agreement” shall mean the issuing and paying agency
agreement described on the cover page of this Agreement, as such agreement may be amended
or supplemented from time to time.
	 
	 	6.8	 	“Issuing and Paying Agent” shall mean the party designated as such on the cover page of
this Agreement, as issuing and paying agent under the Issuing and Paying Agency Agreement,
or any successor thereto in accordance with the Issuing and Paying Agency Agreement.
	 
	 	6.9	 	“Non-bank fiduciary or agent” shall mean a fiduciary or agent other than (a) a bank, as
defined in Section 3(a)(2) of the Securities Act, or (b) a savings and loan association, as
defined in Section 3(a)(5)(A) of the Securities Act.
	 
	 	6.10	 	“Private Placement Memorandum” shall mean offering materials prepared in accordance
with Section 4 (including materials referred to therein or incorporated by reference
therein, if any) provided to purchasers and prospective purchasers of the Notes, and shall
include amendments and supplements thereto which may be prepared from time to time in
accordance with this Agreement (other than any amendment or supplement that has been
completely superseded by a later amendment or supplement).
	 
	 	6.11	 	“Qualified Institutional Buyer” or “QIB” shall have the meaning assigned to that term
in Rule 144A under the Securities Act.
	 
	 	6.12	 	“Rule 144A” shall mean Rule 144A under the Securities Act.
	 
	 	6.13	 	“SEC” shall mean the U.S. Securities and Exchange Commission.
	 
	 	6.14	 	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended.
	 
	 	6.15	 	“Sophisticated Individual Accredited Investor” shall mean an individual who (a) is an
accredited investor within the meaning of Regulation D under the Securities Act and (b)
based on his or her pre-existing relationship with the Dealer, is reasonably believed by
the Dealer to be a sophisticated investor (i) possessing such knowledge and experience (or
represented by a fiduciary or agent possessing such knowledge and experience) in financial
and business matters that he or she is capable of evaluating and bearing the economic risk
of an investment in the Notes and (ii) having not less than $5 million in investments (as
defined, for purposes of this section, in Rule 2a51-1 under the Investment Company Act of
1940, as amended).

	7.	 	General

	 	7.1	 	Unless otherwise expressly provided herein, all notices under this Agreement to
parties hereto shall be in writing and shall be effective when received at the address of
the respective party set forth in the Addendum to this Agreement.

12

 

	 	7.2	 	This Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to its conflict of laws provisions.
	 
	 	7.3	 	The Issuer agrees that any suit, action or proceeding brought by the Issuer against
the Dealer in connection with or arising out of this Agreement or the Notes or the offer
and sale of the Notes shall be brought solely in the United States federal courts located
in the Borough of Manhattan or the courts of the State of New York located in the Borough
of Manhattan. EACH OF THE DEALER AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY
SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.
	 
	 	7.4	 	This Agreement may be terminated, at any time, by the Issuer, upon one business day’s
prior notice to such effect to the Dealer, or by the Dealer upon one business day’s prior
notice to such effect to the Issuer. Any such termination, however, shall not affect the
obligations of the Issuer under Sections 3.7, 5 and 7.3 hereof or the respective
representations, warranties, agreements, covenants, rights or responsibilities of the
parties made or arising prior to the termination of this Agreement.
	 
	 	7.5	 	This Agreement is not assignable by either party hereto without the written consent
of the other party; provided, however, that the Dealer may assign its rights and
obligations under this Agreement to any affiliate of the Dealer.
	 
	 	7.6	 	This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.
	 
	 	7.7	 	This Agreement is for the exclusive benefit of the parties hereto, and their
respective permitted successors and assigns hereunder, and shall not be deemed to give any
legal or equitable right, remedy or claim to any other person whatsoever.
	 
	 	7.8	 	The Issuer acknowledges and agrees that (i) purchases and sales, or placements, of
the Notes pursuant to this Agreement, including the determination of any prices for the
Notes and Dealer compensation, are arm’s-length commercial transactions between the Issuer
and the Dealer, (ii) in connection therewith and with the process leading to such
transactions, the Dealer is acting solely as a principal and not the agent (except to the
extent explicitly set forth herein) or fiduciary of the Issuer or any of its affiliates,
(iii) the Dealer has not assumed an advisory or fiduciary responsibility in favor of the
Issuer or any of its affiliates with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether the Dealer has advised or is currently
advising the Issuer or any of its affiliates on other matters) or any other obligation to
the Issuer or any of its affiliates except the obligations expressly set forth in this
Agreement, (iv) the Issuer is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated by this
Agreement, (v) the Dealer and its affiliates may be engaged in a broad range of
transactions that involve interests that 

13

 

	 	 	 	differ from those of the Issuer and that the
Dealer has no obligation to disclose
any of those interests by virtue of any advisory or fiduciary relationship, (vi) the
Dealer has not provided any legal, accounting, regulatory or tax advice with respect to
the transactions contemplated hereby, and (vii) the Issuer has consulted its own legal and
financial advisors to the extent it deemed appropriate. The Issuer agrees that it will not
claim that the Dealer has rendered advisory services of any nature or respect, or owes a
fiduciary or similar duty to the Issuer in connection with such transactions or the
process leading thereto. Any review by the Dealer of the Issuer, the transactions
contemplated hereby or other matters relating to such transactions shall be performed
solely for the benefit of the Dealer and shall not be on behalf of the Issuer. The Issuer
hereby waives and releases, to the fullest extent permitted by law, any claims the Issuer
may have against the Dealer with respect to any breach or alleged breach of fiduciary duty
arising out of the offer and sale of the Notes.
	 
	 	7.9	 	This Agreement supersedes all prior agreements and understandings (whether written or
oral) between the Issuer and the Dealer with respect to the subject matter hereof.

14

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and
year first above written.

	 	 	 	 	 	 	 
	 	 	STARBUCKS CORPORATION,	 	 
	 	 	        as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BANC OF AMERICA SECURITIES LLC,	 	 
	 	 	        as Dealer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	Title: Authorized signatory	 	 

15

 

Addendum

The following additional clauses shall apply to the Agreement and be deemed a part thereof.

	1.	 	The other dealer(s) referred to in clause (b) of Section 1.2 of the Agreement are Goldman,
Sachs & Co.

	2.	 	The addresses of the respective parties for purposes of notices under Section 7.1 are as
follows:

	 	 	 
	For the Issuer:
	 	 
	 
	 	 
	Address:

	 	Starbucks Corporation
	 

	 	2401 Utah Avenue South
	 

	 	Seattle, Washington 98134
	 
	 	 
	Attention:

	 	Richard Lautch, treasurer
	 
	 	 
	Telephone number:

	 	(206) 318-4438
	 
	 	 
	Fax number:

	 	(206) 903-2820
	 
	 	 
	For the Dealer:
	 	 
	 
	 	 
	Address:

	 	Banc of America Securities LLC
	 

	 	600 Montgomery St., 15th Floor
	 

	 	CA5-801-15-31
	 

	 	San Francisco CA 94111
	 
	 	 
	Attention:

	 	Money Market Origination, Manager
	 
	 	 
	Telephone number:

	 	(415) 913-3689
	 
	 	 
	Fax number:

	 	(415) 913-6288

16

 

Exhibit A

Form of Legend for Private Placement Memorandum and Notes

THE NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY
OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY BE MADE ONLY IN COMPLIANCE WITH
AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS. BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I)
IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE NOTES,
(II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF AND (III) IT IS EITHER
(A)(1) AN INSTITUTIONAL INVESTOR OR SOPHISTICATED INDIVIDUAL INVESTOR THAT IS AN ACCREDITED
INVESTOR WITHIN THE MEANING OF RULE 501(a) UNDER THE ACT AND WHICH, IN THE CASE OF AN INDIVIDUAL,
(i) POSSESSES SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS THAT HE OR SHE IS
CAPABLE OF EVALUATING AND BEARING THE ECONOMIC RISK OF AN INVESTMENT IN THE NOTES AND (ii) HAS NOT
LESS THAN $5 MILLION IN INVESTMENTS (AN “INSTITUTIONAL ACCREDITED INVESTOR” OR “SOPHISTICATED
INDIVIDUAL ACCREDITED INVESTOR”, RESPECTIVELY) AND (2)(i) PURCHASING NOTES FOR ITS OWN ACCOUNT,
(ii) A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS AND LOAN ASSOCIATION OR OTHER
INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT) ACTING IN ITS INDIVIDUAL OR FIDUCIARY
CAPACITY OR (iii) A FIDUCIARY OR AGENT (OTHER THAN A U.S. BANK OR SAVINGS AND LOAN ASSOCIATION)
PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN INSTITUTIONAL
ACCREDITED INVESTOR OR SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR; OR (B) A QUALIFIED
INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE ACT THAT IS ACQUIRING NOTES
FOR ITS OWN ACCOUNT OR FOR ONE OR MORE ACCOUNTS, EACH OF WHICH ACCOUNTS IS A QIB; AND THE PURCHASER
ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY RELY UPON THE EXEMPTION FROM THE REGISTRATION
PROVISIONS OF SECTION 5 OF THE ACT PROVIDED BY RULE 144A. BY ITS ACCEPTANCE OF A NOTE, THE
PURCHASER THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR OTHER TRANSFER THEREOF WILL BE
MADE ONLY (A) IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR
TO A PLACEMENT AGENT DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE
“PLACEMENT AGENTS”), NONE OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH A
PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR, SOPHISTICATED INDIVIDUAL ACCREDITED
INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE REQUIREMENTS OF RULE 144A AND
(B) IN MINIMUM AMOUNTS OF $250,000.

17

 

Exhibit B

Further Provisions Relating to Indemnification

	(a)	 	The Issuer agrees to reimburse each Indemnitee for all expenses (including reasonable fees
and disbursements of external counsel) as they are incurred by it in connection with
investigating or defending any loss, claim, damage, liability or action in respect of which
indemnification may be sought under Section 5 of the Agreement (whether or not it is a party
to any such proceedings).

	(b)	 	Promptly after receipt by an Indemnitee of notice of the existence of a Claim, such
Indemnitee will, if a claim in respect thereof is to be made against the Issuer, notify the
Issuer in writing of the existence thereof; provided that (i) the omission so to notify the
Issuer will not relieve the Issuer from any liability which it may have hereunder unless and
except to the extent it did not otherwise learn of such Claim and such failure results in the
forfeiture by the Issuer of substantial rights and defenses, and (ii) the omission so to
notify the Issuer will not relieve it from liability which it may have to an Indemnitee
otherwise than on account of this indemnity agreement. In case any such Claim is made against
any Indemnitee and it notifies the Issuer of the existence thereof, the Issuer will be
entitled to participate therein, and to the extent that it may elect by written notice
delivered to the Indemnitee, to assume the defense thereof, with counsel reasonably
satisfactory to such Indemnitee; provided that if the defendants in any such Claim include
both the Indemnitee and the Issuer, and the Indemnitee shall have concluded that there may be
legal defenses available to it which are different from or additional to those available to
the Issuer, the Issuer shall not have the right to direct the defense of such Claim on behalf
of such Indemnitee, and the Indemnitee shall have the right to select separate counsel to
assert such legal defenses on behalf of such Indemnitee. Upon receipt of notice from the
Issuer to such Indemnitee of the Issuer’s election so to assume the defense of such Claim and
approval by the Indemnitee of counsel, the Issuer will not be liable to such Indemnitee for
expenses incurred thereafter by the Indemnitee in connection with the defense thereof (other
than reasonable costs of investigation) unless (i) the Indemnitee shall have employed separate
counsel in connection with the assertion of legal defenses in accordance with the proviso to
the next preceding sentence (it being understood, however, that the Issuer shall not be liable
for the expenses of more than one separate counsel (in addition to any local counsel in the
jurisdiction in which any Claim is brought), selected by such Indemnitees, representing the
Indemnitees who are party to such Claim; provided, further, that if the defendants in any such
Claim include multiple Indemnitees, all such Indemnitees shall be entitled to select only one
counsel to serve as separate counsel for all of the Indemnitees, unless such Indemnitees have
concluded that there may be legal defenses available to an Indemnitee which are different from
or additional to those available to any other Indemnitee, in which case any such Indemnitee
with different or additional legal defenses shall have the right to select separate counsel
from any other Indemnitees to assert such legal defenses on behalf of such Indemnitee), (ii)
the Issuer shall not have employed counsel reasonably satisfactory to the Indemnitee to
represent the Indemnitee within a reasonable time after notice of existence of the Claim or
(iii) the Issuer has authorized in writing the employment of counsel for the Indemnitee. The
indemnity, reimbursement and contribution obligations of the Issuer
hereunder shall 

18

 

	 	 	be in addition to any other liability the Issuer may otherwise have to an
Indemnitee and shall be binding upon and inure to the benefit of any successors, assigns, heirs
and personal representatives of the Issuer and any Indemnitee. The Issuer agrees that without
the Dealer’s prior written consent, it will not settle, compromise or consent to the entry of
any judgment in any Claim in respect of which indemnification may be sought under the
indemnification provision of the Agreement (whether or not the Dealer or any other Indemnitee is
an actual or potential party to such Claim), unless such settlement, compromise or consent (i)
includes an unconditional release of each Indemnitee from all liability arising out of such
Claim and (ii) does not include a statement as to or an admission of fault, culpability or
failure to act, by or on behalf of any Indemnitee.

19

 

Exhibit C

Statement of Terms for Interest – Bearing Commercial Paper Notes of Starbucks Corporation

THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC
PRIVATE PLACEMENT MEMORANDUM SUPPLEMENT (THE “SUPPLEMENT”) (IF ANY) SENT TO EACH PURCHASER AT THE
TIME OF THE TRANSACTION.

1. General. (a) The obligations of the Issuer to which these terms apply (each a
“Note”) are represented by one or more Master Notes (each, a “Master Note”) issued in the name
of (or of a nominee for) The Depository Trust Company (“DTC”), which Master Note includes the
terms and provisions for the Issuer’s Interest-Bearing Commercial Paper Notes that are set forth
in this Statement of Terms, since this Statement of Terms constitutes an integral part of the
Underlying Records as defined and referred to in the Master Note.

(b) “Business Day” means any day other than a Saturday or Sunday that is neither a legal
holiday nor a day on which banking institutions are authorized or required by law, executive
order or regulation to be closed in New York City and, with respect to LIBOR Notes (as defined
below) is also a London Business Day. “London Business Day” means, a day, other than a Saturday
or Sunday, on which dealings in deposits in U.S. dollars are transacted in the London interbank
market.

2. Interest. (a) Each Note will bear interest at a fixed rate (a “Fixed Rate Note”)
or at a floating rate (a “Floating Rate Note”).

(b) The Supplement sent to each holder of such Note will describe the following terms: (i)
whether such Note is a Fixed Rate Note or a Floating Rate Note and whether such Note is an
Original Issue Discount Note (as defined below); (ii) the date on which such Note will be issued
(the “Issue Date”); (iii) the Stated Maturity Date (as defined below); (iv) if such Note is a
Fixed Rate Note, the rate per annum at which such Note will bear interest, if any, and the
Interest Payment Dates; (v) if such Note is a Floating Rate Note, the Base Rate, the Index
Maturity, the Interest Reset Dates, the Interest Payment Dates and the Spread and/or Spread
Multiplier, if any (all as defined below), and any other terms relating to the particular method
of calculating the interest rate for such Note; and (vi) any other terms applicable specifically
to such Note. “Original Issue Discount Note” means a Note which has a stated redemption price
at the Stated Maturity Date that exceeds its Issue Price by more than a specified de minimis
amount and which the Supplement indicates will be an “Original Issue Discount Note”.

(c) Each Fixed Rate Note will bear interest from its Issue Date at the rate per annum specified
in the Supplement until the principal amount thereof is paid or made available for payment.
Interest on each Fixed Rate Note will be payable on the dates specified in the Supplement (each
an “Interest Payment Date” for a Fixed Rate Note) and on the

20

 

Maturity Date (as defined below). Interest on Fixed Rate Notes will be computed on the basis of
a 360-day year of twelve 30-day months.

If any Interest Payment Date or the Maturity Date of a Fixed Rate Note falls on a day that is
not a Business Day, the required payment of principal, premium, if any, and/or interest will be
payable on the next succeeding Business Day, and no additional interest will accrue in respect
of the payment made on that next succeeding Business Day.

(d) The interest rate on each Floating Rate Note for each Interest Reset Period (as defined
below) will be determined by reference to an interest rate basis (a “Base Rate”) plus or minus a
number of basis points (one basis point equals one-hundredth of a percentage point) (the
“Spread”), if any, and/or multiplied by a certain percentage (the “Spread Multiplier”), if any,
until the principal thereof is paid or made available for payment. The Supplement will
designate which of the following Base Rates is applicable to the related Floating Rate Note: (a)
the CD Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial Paper Rate Note”),
(c) the Federal Funds Rate (a “Federal Funds Rate Note”), (d) LIBOR (a “LIBOR Note”), (e) the
Prime Rate (a “Prime Rate Note”), (f) the Treasury Rate (a “Treasury Rate Note”) or (g) such
other Base Rate as may be specified in such Supplement.

The rate of interest on each Floating Rate Note will be reset daily, weekly, monthly, quarterly
or semi-annually (the “Interest Reset Period”). The date or dates on which interest will be
reset (each an “Interest Reset Date”) will be, unless otherwise specified in the Supplement, in
the case of Floating Rate Notes which reset daily, each Business Day, in the case of Floating
Rate Notes (other than Treasury Rate Notes) that reset weekly, the Wednesday of each week; in
the case of Treasury Rate Notes that reset weekly, the Tuesday of each week; in the case of
Floating Rate Notes that reset monthly, the third Wednesday of each month; in the case of
Floating Rate Notes that reset quarterly, the third Wednesday of March, June, September and
December; and in the case of Floating Rate Notes that reset semiannually, the third Wednesday of
the two months specified in the Supplement. If any Interest Reset Date for any Floating Rate
Note is not a Business Day, such Interest Reset Date will be postponed to the next day that is a
Business Day, except that in the case of a LIBOR Note, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date shall be the immediately preceding Business
Day. Interest on each Floating Rate Note will be payable monthly, quarterly or semiannually (the
“Interest Payment Period”) and on the Maturity Date. Unless otherwise specified in the
Supplement, and except as provided below, the date or dates on which interest will be payable
(each an “Interest Payment Date” for a Floating Rate Note) will be, in the case of Floating Rate
Notes with a monthly Interest Payment Period, on the third Wednesday of each month; in the case
of Floating Rate Notes with a quarterly Interest Payment Period, on the third Wednesday of
March, June, September and December; and in the case of Floating Rate Notes with a semiannual
Interest Payment Period, on the third Wednesday of the two months specified in the Supplement.
In addition, the Maturity Date will also be an Interest Payment Date.

If any Interest Payment Date for any Floating Rate Note (other than an Interest Payment Date
occurring on the Maturity Date) would otherwise be a day that is not a Business Day,

21

 

such
Interest Payment Date shall be postponed to the next day that is a Business Day,
except that in the case of a LIBOR Note, if such Business Day is in the next succeeding
calendar month, such Interest Payment Date shall be the immediately preceding Business Day. If
the Maturity Date of a Floating Rate Note falls on a day that is not a Business Day, the payment
of principal and interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after such maturity.

Interest payments on each Interest Payment Date for Floating Rate Notes will include accrued
interest from and including the Issue Date or from and including the last date in respect of
which interest has been paid, as the case may be, to, but excluding, such Interest Payment Date.
On the Maturity Date, the interest payable on a Floating Rate Note will include interest
accrued to, but excluding, the Maturity Date. Accrued interest will be calculated by
multiplying the principal amount of a Floating Rate Note by an accrued interest factor. This
accrued interest factor will be computed by adding the interest factors calculated for each day
in the period for which accrued interest is being calculated. The interest factor (expressed as
a decimal) for each such day will be computed by dividing the interest rate applicable to such
day by 360, in the cases where the Base Rate is the CD Rate, Commercial Paper Rate, Federal
Funds Rate, LIBOR or Prime Rate, or by the actual number of days in the year, in the case where
the Base Rate is the Treasury Rate. The interest rate in effect on each day will be (i) if such
day is an Interest Reset Date, the interest rate with respect to the Interest Determination Date
(as defined below) pertaining to such Interest Reset Date, or (ii) if such day is not an
Interest Reset Date, the interest rate with respect to the Interest Determination Date
pertaining to the next preceding Interest Reset Date, subject in either case to any adjustment
by a Spread and/or a Spread Multiplier.

The “Interest Determination Date” where the Base Rate is the CD Rate or the Commercial Paper
Rate will be the second Business Day next preceding an Interest Reset Date. The Interest
Determination Date where the Base Rate is the Federal Funds Rate or the Prime Rate will be the
Business Day next preceding an Interest Reset Date. The Interest Determination Date where the
Base Rate is LIBOR will be the second London Business Day next preceding an Interest Reset Date.
The Interest Determination Date where the Base Rate is the Treasury Rate will be the day of the
week in which such Interest Reset Date falls when Treasury Bills are normally auctioned.
Treasury Bills are normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is held on the following Tuesday or the preceding Friday. If
an auction is so held on the preceding Friday, such Friday will be the Interest Determination
Date pertaining to the Interest Reset Date occurring in the next succeeding week.

The “Index Maturity” is the period to maturity of the instrument or obligation from which the
applicable Base Rate is calculated.

The “Calculation Date,” where applicable, shall be the earlier of (i) the tenth calendar day
following the applicable Interest Determination Date or (ii) the Business Day preceding the
applicable Interest Payment Date or Maturity Date.

22

 

All times referred to herein reflect New York City time, unless otherwise specified.

The Issuer shall specify in writing to the Issuing and Paying Agent which party will be the
calculation agent (the “Calculation Agent”) with respect to the Floating Rate Notes. The
Calculation Agent will provide the interest rate then in effect and, if determined, the interest
rate which will become effective on the next Interest Reset Date with respect to such Floating
Rate Note to the Issuing and Paying Agent as soon as the interest rate with respect to such
Floating Rate Note has been determined and as soon as practicable after any change in such
interest rate.

All percentages resulting from any calculation on Floating Rate Notes will be rounded to the
nearest one hundred-thousandth of a percentage point, with five-one millionths of a percentage
point rounded upwards. For example, 9.876545% (or .09876545) would be rounded to 9.87655% (or
        .0987655). All dollar amounts used in or resulting from any calculation on Floating Rate Notes
will be rounded, in the case of U.S. dollars, to the nearest cent or, in the case of a foreign
currency, to the nearest unit (with one-half cent or unit being rounded upwards).

CD Rate Notes

“CD Rate” means the rate on any Interest Determination Date for negotiable certificates of
deposit having the Index Maturity as published by the Board of Governors of the Federal Reserve
System (the “FRB”) in “Statistical Release H.15(519), Selected Interest Rates” or any successor
publication of the FRB (“H.15(519)”) under the heading “CDs (Secondary Market)”.

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, the CD
Rate will be the rate on such Interest Determination Date set forth in the daily update of
H.15(519), available through the world wide website of the FRB at
http://www.federalreserve.gov/releases/h15/Update, or any successor site or publication or other
recognized electronic source used for the purpose of displaying the applicable rate (“H.15 Daily
Update”) under the caption “CDs (Secondary Market)”.

If such rate is not published in either H.15(519) or H.15 Daily Update by 3:00 p.m. on the
Calculation Date, the Calculation Agent will determine the CD Rate to be the arithmetic mean of
the secondary market offered rates as of 10:00 a.m. on such Interest Determination Date of three
leading nonbank dealers1 in negotiable U.S. dollar certificates of deposit in New
York City selected by the Calculation Agent for negotiable U.S. dollar certificates of deposit
of major United States money center banks of the highest credit standing in the market for
negotiable certificates of deposit with a remaining maturity closest to the Index Maturity in
the denomination of $5,000,000.

If the dealers selected by the Calculation Agent are not quoting as set forth above, the CD Rate
will remain the CD Rate then in effect on such Interest Determination Date.

Commercial Paper Rate Notes

 

			
	1	 	Such nonbank dealers referred to in this
Statement of Terms may include affiliates of the Dealer.

23

 

“Commercial Paper Rate” means the Money Market Yield (calculated as described below) of the rate
on any Interest Determination Date for commercial paper having the Index Maturity, as published in H.15(519) under the heading “Commercial Paper-Nonfinancial”.

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, then the
Commercial Paper Rate will be the Money Market Yield of the rate on such Interest Determination
Date for commercial paper of the Index Maturity as published in H.15 Daily Update under the
heading “Commercial Paper-Nonfinancial”.

If by 3:00 p.m. on such Calculation Date such rate is not published in either H.15(519) or H.15
Daily Update, then the Calculation Agent will determine the Commercial Paper Rate to be the
Money Market Yield of the arithmetic mean of the offered rates as of 11:00 a.m. on such Interest
Determination Date of three leading dealers of U.S. dollar commercial paper in New York City
selected by the Calculation Agent for commercial paper of the Index Maturity placed for an
industrial issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized
statistical rating organization.

If the dealers selected by the Calculation Agent are not quoting as mentioned above, the
Commercial Paper Rate with respect to such Interest Determination Date will remain the
Commercial Paper Rate then in effect on such Interest Determination Date.

“Money Market Yield” will be a yield calculated in accordance with the following formula:

	 	 	 	 	 
	Money Market Yield =

	 	D x 360
	 	x 100
	 

	 	 	 	 
	 

	 	360 — (D x M)	 	 

where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and “M” refers to the actual number of days in the interest
period for which interest is being calculated.

Federal Funds Rate Notes

“Federal Funds Rate” means the rate on any Interest Determination Date for federal funds as
published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Moneyline
Telerate (or any successor service) on page 120 (or any other page as may replace the specified
page on that service) (“Telerate Page 120”).

If the above rate does not appear on Telerate Page 120 or is not so published by 3:00 p.m. on
the Calculation Date, the Federal Funds Rate will be the rate on such Interest Determination
Date as published in H.15 Daily Update under the heading “Federal Funds/(Effective)”.

If such rate is not published as described above by 3:00 p.m. on the Calculation Date, the
Calculation Agent will determine the Federal Funds Rate to be the arithmetic mean of the rates
for the last transaction in overnight U.S. dollar federal funds arranged by each of

24

 

three leading brokers of Federal Funds transactions in New York City selected by the Calculation
Agent prior to 9:00 a.m. on such Interest Determination Date.

If the brokers selected by the Calculation Agent are not quoting as mentioned above, the Federal
Funds Rate will remain the Federal Funds Rate then in effect on such Interest Determination
Date.

LIBOR Notes

The London Interbank offered rate (“LIBOR”) means, with respect to any Interest Determination
Date, the rate for deposits in U.S. dollars having the Index Maturity that appears on the
Designated LIBOR Page as of 11:00 a.m., London time, on such Interest Determination Date.

If no rate appears, LIBOR will be determined on the basis of the rates at approximately 11:00
a.m., London time, on such Interest Determination Date at which deposits in U.S. dollars are
offered to prime banks in the London interbank market by four major banks in such market
selected by the Calculation Agent for a term equal to the Index Maturity and in principal amount
equal to an amount that in the Calculation Agent’s judgment is representative for a single
transaction in U.S. dollars in such market at such time (a “Representative Amount”). The
Calculation Agent will request the principal London office of each of such banks to provide a
quotation of its rate. If at least two such quotations are provided, LIBOR will be the
arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR for such
interest period will be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in
New York City, on such Interest Determination Date by three major banks in New York City,
selected by the Calculation Agent, for loans in U.S. dollars to leading European banks, for a
term equal to the Index Maturity and in a Representative Amount; provided, however, that if
fewer than three banks so selected by the Calculation Agent are providing such quotations, the
then existing LIBOR rate will remain in effect for such Interest Payment Period.

“Designated LIBOR Page” means the display designated as page “3750” on Moneyline Telerate (or
such other page as may replace the 3750 page on that service or such other service or services
as may be nominated by the British Bankers’ Association for the purposes of displaying London
interbank offered rates for U.S. dollar deposits).

Prime Rate Notes

“Prime Rate” means the rate on any Interest Determination Date as published in H.15(519) under
the heading “Bank Prime Loan”.

If the above rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation Date, then
the Prime Rate will be the rate on such Interest Determination Date as published in H.15 Daily
Update opposite the caption “Bank Prime Loan”.

If the rate is not published prior to 3:00 p.m. on the Calculation Date in either H.15(519) or
H.15 Daily Update, then the Calculation Agent will determine the Prime Rate to be the arithmetic
mean of the rates of interest publicly announced by each bank that appears on

25

 

the Reuters Screen US PRIME1 Page (as defined below) as such bank’s prime rate or base
lending rate as of 11:00 a.m., on that Interest Determination Date.

If fewer than four such rates referred to above are so published by 3:00 p.m. on the Calculation
Date, the Calculation Agent will determine the Prime Rate to be the arithmetic mean of the prime
rates or base lending rates quoted on the basis of the actual number of days in the year divided
by 360 as of the close of business on such Interest Determination Date by three major banks in
New York City selected by the Calculation Agent.

If the banks selected are not quoting as mentioned above, the Prime Rate will remain the Prime
Rate in effect on such Interest Determination Date.

“Reuters Screen US PRIME1 Page” means the display designated as page “US PRIME1” on the Reuters
Monitor Money Rates Service (or such other page as may replace the US PRIME1 page on that
service for the purpose of displaying prime rates or base lending rates of major United States
banks).

Treasury Rate Notes

“Treasury Rate” means:

(1) the rate from the auction held on the Interest Determination Date (the “Auction”) of direct
obligations of the United States (“Treasury Bills”) having the Index Maturity specified in the
Supplement under the caption “INVESTMENT RATE” on the display on Moneyline Telerate (or any
successor service) on page 56 (or any other page as may replace that page on that service)
(“Telerate Page 56”) or page 57 (or any other page as may replace that page on that service)
(“Telerate Page 57”), or

(2) if the rate referred to in clause (1) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for the applicable
Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government
Securities/Treasury Bills/Auction High”, or

(3) if the rate referred to in clause (2) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield of the auction rate of the applicable Treasury Bills
as announced by the United States Department of the Treasury, or

(4) if the rate referred to in clause (3) is not so announced by the United States Department of
the Treasury, or if the Auction is not held, the Bond Equivalent Yield of the rate on the
particular Interest Determination Date of the applicable Treasury Bills as published in
H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or

(5) if the rate referred to in clause (4) is not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date of the applicable
Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government
Securities/Treasury Bills/Secondary Market”, or

26

 

(6) if the rate referred to in clause (5) is not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date calculated by the
Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market
bid rates, as of approximately 3:30 p.m. on that Interest Determination Date, of three primary
United States government securities dealers selected by the Calculation Agent, for the issue of
Treasury Bills with a remaining maturity closest to the Index Maturity specified in the
Supplement, or

(7) if the dealers so selected by the Calculation Agent are not quoting as mentioned in clause
(6), the Treasury Rate in effect on the particular Interest Determination Date.

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the
following formula:

	 	 	 	 	 
	Bond Equivalent Yield =

	 	D x N
	 	x 100
	 

	 	 	 	 
	 

	 	360 — (D x M)	 	 

	 	 	where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers
to the actual number of days in the applicable Interest Reset Period.
	 
	3.	 	Final Maturity. The Stated Maturity Date for any Note will be the date so
specified in the Supplement, which shall be no later than 397 days from the date of issuance.
On its Stated Maturity Date, or any date prior to the Stated Maturity Date on which the
particular Note becomes due and payable by the declaration of acceleration, each such date
being referred to as a Maturity Date, the principal amount of each Note, together with accrued
and unpaid interest thereon, will be immediately due and payable.
	 
	4.	 	Events of Default. The occurrence of any of the following shall constitute an
“Event of Default” with respect to a Note: (i) default in any payment of principal of or
interest on such Note (including on a redemption thereof); (ii) the Issuer makes any
compromise arrangement with its creditors generally including the entering into any form of
moratorium with its creditors generally; (iii) a court having jurisdiction shall enter a
decree or order for relief in respect of the Issuer in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or there
shall be appointed a receiver, administrator, liquidator, custodian, trustee or sequestrator
(or similar officer) with respect to the whole or substantially the whole of the assets of the
Issuer and any such decree, order or appointment is not removed, discharged or withdrawn
within 60 days thereafter; or (iv) the Issuer shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent
to the entry of an order for relief in an involuntary case under any such law, or consent to
the appointment of or taking possession by a receiver, administrator, liquidator, assignee,
custodian, trustee or sequestrator (or similar official), with respect to the whole or
substantially the whole of the assets of the Issuer or make any general assignment for the
benefit of creditors. Upon the occurrence of an Event of Default, the principal of each

27

 

	 	 	obligation evidenced by such Note (together with interest accrued and
unpaid thereon) shall become, without any notice or demand, immediately due and
payable.2
	 
	5.	 	Obligation Absolute. No provision of the Issuing and Paying Agency Agreement
under which the Notes are issued shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on each Note at the times,
place and rate, and in the coin or currency, herein prescribed.
	 
	6.	 	Supplement. Any term contained in the Supplement shall supercede any conflicting
term contained herein.

 

			
	2	 	Unlike single payment notes, where a
default arises only at the stated maturity, interest-bearing notes with
multiple payment dates should contain a default provision permitting
acceleration of the maturity if the Issuer defaults on an interest payment.

28

 

Exhibit D

          In the case of any agreement by the Dealer to purchase a Note hereunder (other than as
agent) which provides for a settlement date that is three New York Business Days or more after the
date of such agreement, the obligation of the Dealer to purchase the Note under such agreement
shall be subject to the following conditions:

	 	(a)	 	the representations and warranties given by the Issuer set forth above in Section 1.7
and Section 2 shall be true and correct on and as of the settlement date as if made on and
as of such date, and the Issuer shall have performed all of its obligations hereunder to
be performed as of such date,
	 
	 	(b)	 	since the date of the most recent Private Placement Memorandum, there shall have been
no material adverse change in the condition (financial or otherwise), operations or
business prospects of the Issuer (whether occurring before or after such agreement was
entered into) which was not disclosed to the Dealer in writing prior to the time such
agreement was entered into,
	 
	 	(c)	 	the Issuer shall not be in default of any of its obligations hereunder, under the Notes
or under the Issuing and Paying Agency Agreement,
	 
	 	(d)	 	on or after the date of such agreement there shall not have occurred any of the
following: (i) a suspension or material limitation in trading in securities generally on
the New York Stock Exchange; (ii) a suspension or material limitation in trading in the
Issuer’s securities on the New York Stock Exchange; (iii) a general moratorium on
commercial banking activities declared by either Federal or New York State authorities or a
material disruption in commercial banking or securities settlement or clearance services in
the United States; (iv) the outbreak or escalation of hostilities involving the United
States or the declaration by the United States of a national emergency or war or (v) the
occurrence of any other calamity or crisis or any change in financial, political or
economic conditions in the United States or elsewhere, if the effect of any such event
specified in clause (iv) or (v) in the judgment of the Dealer makes it impracticable or
inadvisable to proceed with the offering or the delivery of the Note on the terms and in
the manner contemplated in the Private Placement Memorandum, and
	 
	 	(e)	 	on or after the date of such agreement, (i) no downgrading shall have occurred in the
rating accorded the Issuer’s debt securities by any nationally recognized statistical
rating organization and (ii) no such organization shall have publicly announced that it has
under surveillance or review, with possible negative implications, its rating of any of the
Issuer’s debt securities.

“New York Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in New York are generally authorized or obligated by law or
executive order to close.

29exv10w1w2

 

Exhibit 10.1.2

COMMERCIAL PAPER DEALER AGREEMENT

4(2) PROGRAM

between

STARBUCKS CORPORATION, as Issuer

and

GOLDMAN, SACHS & CO., as Dealer

Concerning Notes to be issued pursuant to an Issuing and Paying Agency Agreement, dated as
of March 27, 2007, between the Issuer and JPMorgan Chase Bank, National Association, as
Issuing and Paying Agent

Dated as of March 27, 2007

 

 

 

COMMERCIAL PAPER DEALER AGREEMENT

4(2) Program

This agreement (the “Agreement”), dated as of March 27, 2007, sets forth the understandings between
Starbucks Corporation (the “Issuer”) and Goldman, Sachs & Co. (the “Dealer”), each named on the
cover page hereof, in connection with the issuance and sale by the Issuer of its short-term
promissory notes (the “Notes”) through the Dealer.

Certain terms used in this Agreement are defined in Section 6 hereof.

The Addendum to this Agreement, and any Annexes or Exhibits described in this Agreement or such
Addendum, are hereby incorporated into this Agreement and made fully a part hereof.

	1.	 	Offers, Sales and Resales of Notes.

	 	1.1	 	While (i) the Issuer has and shall have no obligation to sell the Notes to the Dealer
or to permit the Dealer to arrange any sale of the Notes for the account of the Issuer, and
(ii) the Dealer has and shall have no obligation to purchase the Notes from the Issuer or
to arrange any sale of the Notes for the account of the Issuer, the parties hereto agree
that in any case where the Dealer purchases Notes from the Issuer, or arranges for the sale
of Notes by the Issuer, such Notes will be purchased or sold by the Dealer in reliance on
the representations, warranties, covenants and agreements of the Issuer contained herein or
made pursuant hereto and on the terms and conditions and in the manner provided herein.
	 
	 	1.2	 	So long as this Agreement shall remain in effect, and in addition to the limitations
contained in Section 1.7 hereof, the Issuer shall not, without the consent of the Dealer,
offer, solicit or accept offers to purchase, or sell, any Notes except (a) in transactions
with one or more dealers which may from time to time after the date hereof become dealers
with respect to the Notes by executing with the Issuer one or more agreements which contain
provisions substantially identical to those contained in Section 1 of this Agreement, of
which the Issuer hereby undertakes to provide the Dealer prompt notice or (b) in
transactions with the other dealers listed on the Addendum hereto, which are executing
agreements with the Issuer which contain provisions substantially identical to Section 1 of
this Agreement contemporaneously herewith. So long as this Agreement is in effect, in no
event shall the Issuer offer, solicit or accept offers to purchase, or sell, any Notes
directly on its own behalf in transactions with persons other than broker-dealers as
specifically permitted in this Section 1.2.
	 
	 	1.3	 	The Notes shall be in a minimum denomination of $250,000 or integral multiples of
$1,000 in excess thereof, will bear such interest rates, if interest bearing, or will be
sold at such discount from their face amounts, as shall be agreed upon by the Dealer and
the Issuer, shall have a maturity not exceeding 397 days from the date of
issuance and may have such terms as are specified in Exhibit C hereto or the Private

2

 

	 	 	 	Placement Memorandum. The Notes shall not contain any provision for extension, renewal
or automatic “rollover.”
	 
	 	1.4	 	The authentication and issuance of, and payment for, the Notes shall be effected in
accordance with the Issuing and Paying Agency Agreement, and the Notes shall be either
individual physical certificates or book-entry notes evidenced by one or more master notes
(each, a “Master Note”) registered in the name of The Depository Trust Company (“DTC”) or
its nominee, in the form or forms annexed to the Issuing and Paying Agency Agreement.
	 
	 	1.5	 	If the Issuer and the Dealer shall agree on the terms of the purchase of any Note by
the Dealer or the sale of any Note arranged by the Dealer (including, but not limited to,
agreement with respect to the date of issue, purchase price, principal amount, maturity and
interest rate or interest rate index and margin (in the case of interest-bearing Notes) or
discount thereof (in the case of Notes issued on a discount basis), and appropriate
compensation for the Dealer’s services hereunder) pursuant to this Agreement, the Issuer
shall cause such Note to be issued and delivered in accordance with the terms of the
Issuing and Paying Agency Agreement and payment for such Note shall be made by the
purchaser thereof, either directly or through the Dealer, to the Issuing and Paying Agent,
for the account of the Issuer. Except as otherwise agreed, in the event that the Dealer is
acting as an agent and a purchaser shall either fail to accept delivery of or make payment
for a Note on the date fixed for settlement, the Dealer shall promptly notify the Issuer,
and if the Dealer has theretofore paid the Issuer for the Note, the Issuer will promptly
return such funds to the Dealer against its return of the Note to the Issuer, in the case
of a certificated Note, and upon notice of such failure in the case of a book-entry Note.
If such failure occurred for any reason other than default by the Dealer, the Issuer shall
reimburse the Dealer on an equitable basis for the Dealer’s loss of the use of such funds
for the period such funds were credited to the Issuer’s account.
	 
	 	1.6	 	In the case of any agreement by the Dealer to purchase a Note hereunder (other than as
agent) which provides for a settlement date that is three New York Business Days or more
after the date of such agreement, the obligation of the Dealer to purchase the Note under
such agreement shall be subject to the conditions set forth on Exhibit D.
	 
	 	1.7	 	The Dealer and the Issuer hereby establish and agree to observe the following
procedures in connection with offers, sales and subsequent resales or other transfers of
the Notes:

	 	(a)	 	Offers and sales of the Notes by or through the Dealer shall be made only
to: (i) investors reasonably believed by the Dealer to be Qualified Institutional
Buyers, Institutional Accredited Investors or Sophisticated Individual Accredited
Investors and (ii) non-bank fiduciaries or agents that will be purchasing Notes for
one or more accounts, each of which is reasonably believed by the Dealer to be an
Institutional Accredited Investor or Sophisticated Individual Accredited Investor.

3

 

	 	(b)	 	Resales and other transfers of the Notes by the holders thereof shall be
made only in accordance with the restrictions in the legend described in clause (e)
below.
	 
	 	(c)	 	No general solicitation or general advertising shall be used in connection
with the offering of the Notes. Without limiting the generality of the foregoing,
without the prior written approval of the Dealer, the Issuer shall not issue any
press release or place or publish any “tombstone” or other advertisement relating to
the Notes.
	 
	 	(d)	 	No sale of Notes to any one purchaser shall be for less than $250,000
principal or face amount, and no Note shall be issued in a smaller principal or face
amount. If the purchaser is a non-bank fiduciary acting on behalf of others, each
person for whom such purchaser is acting must purchase at least $250,000 principal or
face amount of Notes.
	 
	 	(e)	 	Offers and sales of the Notes by the Issuer through the Dealer acting as
agent for the Issuer shall be made in accordance with Rule 506 under the Securities
Act, and shall be subject to the restrictions described in the legend appearing on
Exhibit A hereto. A legend substantially to the effect of such Exhibit A shall
appear as part of the Private Placement Memorandum used in connection with offers and
sales of Notes hereunder, as well as on each individual certificate representing a
Note and each Master Note representing book-entry Notes offered and sold pursuant to
this Agreement.
	 
	 	(f)	 	The Dealer shall furnish or shall have furnished to each purchaser of Notes
for which it has acted as the dealer a copy of the then-current Private Placement
Memorandum unless such purchaser has previously received a copy of the Private
Placement Memorandum as then in effect. The Private Placement Memorandum shall
expressly state that any person to whom Notes are offered shall have an opportunity
to ask questions of, and receive publicly available information from, the Issuer and
the Dealer and shall provide the names, addresses and telephone numbers of the
persons from whom information regarding the Issuer may be obtained.
	 
	 	(g)	 	The Issuer agrees, for the benefit of the Dealer and each of the holders
and prospective purchasers from time to time of the Notes that, if at any time the
Issuer shall not be subject to Section 13 or 15(d) of the Exchange Act, the Issuer
will furnish, upon request and at its expense, to the Dealer and to holders and
prospective purchasers of Notes information required by Rule 144A(d)(4)(i) in
compliance with Rule 144A(d).
	 
	 	(h)	 	In the event that any Note offered or to be offered by the Dealer would be
ineligible for resale under Rule 144A(d)(3), the Issuer shall immediately notify the
Dealer (by telephone, confirmed in writing) of such fact and shall promptly prepare
and deliver to the Dealer an amendment or supplement to the Private 

4

 

	 	 	 	Placement
Memorandum describing the Notes that are ineligible, the reason for such
ineligibility and any other relevant information relating thereto.
	 
	 	(i)	 	The Issuer represents that it is not currently issuing commercial
paper in the United States market in reliance upon the exemption provided by Section
3(a)(3) of the Securities Act. The Issuer agrees that, if it shall issue commercial
paper after the date hereof in reliance upon such exemption (a) the proceeds from the
sale of the Notes will be segregated from the proceeds of the sale of any such
commercial paper by being placed in a separate account; (b) the Issuer will institute
appropriate corporate procedures to ensure that the offers and sales of notes issued
by the Issuer pursuant to the Section 3(a)(3) exemption are not integrated with
offerings and sales of Notes hereunder; and (c) the Issuer will comply with each of
the requirements of Section 3(a)(3) of the Securities Act in selling commercial paper
or other short-term debt securities other than the Notes in the United States.

	 	1.8	 	The Issuer hereby represents and warrants to the Dealer, in connection with
offers, sales and resales of Notes, as follows:

	 	(a)	 	The Issuer hereby confirms to the Dealer that within the preceding six months
neither the Issuer nor any person other than the Dealer or the other dealers referred
to in Section 1.2 hereof acting on behalf of the Issuer has offered or sold any Notes,
or any substantially similar security of the Issuer (including, without limitation,
medium-term notes issued by the Issuer), to, or solicited offers to buy any such
security from, any person other than the Dealer or the other dealers referred to in
Section 1.2 hereof. The Issuer also agrees that as long as the Notes are being
offered for sale by the Dealer and the other dealers referred to in Section 1.2 hereof
as contemplated hereby and until at least six months after the offer of Notes hereunder
has been terminated, neither the Issuer nor any person other than the Dealer or the
other dealers referred to in Section 1.2 hereof (except as contemplated by Section 1.2
hereof) will offer the Notes or any substantially similar security of the Issuer for
sale to, or solicit offers to buy any such security from, any person other than the
Dealer or the other dealers referred to in Section 1.2 hereof, it being understood that
such agreement is made with a view to bringing the offer and sale of the Notes within
the exemption provided by Section 4(2) of the Securities Act and Rule 506 thereunder
and shall survive any termination of this Agreement. The Issuer hereby represents and
warrants that it has not taken, and will not take, any action that would, and has not
omitted to take, and will not omit to take, any action the absence of which would,
cause the offering and sale of Notes hereunder to be integrated with any other offering
of securities, whether such offering is made by the Issuer or some other party or
parties.
	 
	 	(b)	 	The Issuer represents and agrees that the proceeds of the sale of the Notes may
be used for the purpose of buying, carrying or trading securities within the meaning of
Regulation T and the interpretations thereunder by the Board of Governors of the
Federal Reserve System. In the event that the Issuer determines to use such proceeds
for the purpose of buying, carrying or trading securities, whether in 

5

 

	 	 	 	connection with
an acquisition of another company or otherwise, the Issuer shall give the Dealer at
least three (3) business days’ prior written notice to that effect; provided,
however, that no such notice shall be required of the Issuer for purchases of
securities issued by the Issuer and purchased for immediate retirement. The Issuer
shall also give the Dealer prompt notice of the actual date
that it commences to purchase securities with the proceeds of the Notes. Thereafter, in
the event that the Dealer purchases Notes as principal and does not resell such Notes on
the day of such purchase, to the extent necessary to comply with Regulation T and the
interpretations thereunder, the Dealer will sell such Notes either (i) only to offerees
it reasonably believes to be Qualified Institutional Buyers or to Qualified
Institutional Buyers it reasonably believes are acting for other Qualified Institutional
Buyers, in each case in accordance with Rule 144A or (ii) in a manner which would not
cause a violation of Regulation T and the interpretations thereunder.

2. Representations and Warranties of Issuer.

The Issuer represents and warrants that:

	 	2.1	 	The Issuer is a corporation duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation and has all the requisite power and
authority to execute, deliver and perform its obligations under the Notes, this Agreement
and the Issuing and Paying Agency Agreement.
	 
	 	2.2	 	This Agreement and the Issuing and Paying Agency Agreement have been duly authorized,
executed and delivered by the Issuer and constitute legal, valid and binding obligations of
the Issuer enforceable against the Issuer in accordance with their terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).
	 
	 	2.3	 	The Notes have been duly authorized, and when issued as provided in the Issuing and
Paying Agency Agreement, will be duly and validly issued and will constitute legal, valid
and binding obligations of the Issuer enforceable against the Issuer in accordance with
their terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally, and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or at law).
	 
	 	2.4	 	The offer and sale of the Notes in the manner contemplated hereby do not require
registration of the Notes under the Securities Act, pursuant to the exemption from
registration contained in Section 4(2) thereof, and no indenture in respect of the Notes is
required to be qualified under the Trust Indenture Act of 1939, as amended.

6

 

	 	2.5	 	The Notes will rank pari passu with all other unsecured and unsubordinated indebtedness
of the Issuer.
	 
	 	2.6	 	No consent or action of, or filing or registration with, any governmental or public
regulatory body or authority, including the SEC, is required to authorize, or is otherwise
required in connection with the execution, delivery or performance of,
this Agreement, the Notes or the Issuing and Paying Agency Agreement, except as may be
required by the securities or Blue Sky laws of the various states in connection with the
offer and sale of the Notes.
	 
	 	2.7	 	Neither the execution and delivery of this Agreement and the Issuing and Paying Agency
Agreement, nor the issuance of the Notes in accordance with the Issuing and Paying Agency
Agreement, nor the fulfillment of or compliance with the terms and provisions hereof or
thereof by the Issuer, will (i) result in the creation or imposition of any mortgage, lien,
charge or encumbrance of any nature whatsoever upon any of the properties or assets of the
Issuer, or (ii) violate or result in a breach or a default under any of the terms of the
Issuer’s charter documents or by-laws, any contract or instrument to which the Issuer is a
party or by which it or its property is bound, or any law or regulation, or any order,
writ, injunction or decree of any court or government instrumentality, to which the Issuer
is subject or by which it or its property is bound, which breach or default might have a
material adverse effect on the condition (financial or otherwise), operations or business
prospects of the Issuer or the ability of the Issuer to perform its obligations under this
Agreement, the Notes or the Issuing and Paying Agency Agreement.
	 
	 	2.8	 	Except as otherwise disclosed by the Issuer in the Company Information (as defined
below), there is no litigation or governmental proceeding pending, or to the knowledge of
the Issuer threatened, against or affecting the Issuer or any of its subsidiaries which is
reasonably likely to result in a material adverse change in the condition (financial or
otherwise), operations or business prospects of the Issuer or the ability of the Issuer to
perform its obligations under this Agreement, the Notes or the Issuing and Paying Agency
Agreement.
	 
	 	2.9	 	The Issuer is not an “investment company” within the meaning of the Investment Company
Act of 1940, as amended.
	 
	 	2.10	 	Neither the Private Placement Memorandum nor the Company Information contains any
untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.
	 
	 	2.11	 	Each (a) sale and issuance of Notes by the Issuer hereunder and (b) amendment or
supplement of the Private Placement Memorandum shall be deemed a representation and
warranty by the Issuer to the Dealer, as of the date and time thereof, that, both before
and after giving effect to such sale and issuance and after giving effect to such amendment
or supplement, (i) the representations and warranties given by the Issuer set forth in this
Section 2 remain true and correct on and as of such date and 

7

 

	 	 	 	time as if made on and as of
such date and at such time, and (ii) in the case of an issuance of Notes, the Notes
being issued on such date have been duly and validly issued and constitute legal, valid and
binding obligations of the Issuer, enforceable against the Issuer in accordance with their
terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law) and
(iii) in the case of an issuance or sale of Notes, since the date of the most recent
Private
Placement Memorandum, there has been no material adverse change in the condition
(financial or otherwise), operations or business prospects of the Issuer which has not
been disclosed to the Dealer in writing.

	3.	 	Covenants and Agreements of Issuer.
	 
	 	 	The Issuer covenants and agrees that:

	 	3.1	 	The Issuer will give the Dealer prompt notice (but in any event prior to any subsequent
sale or issuance of Notes hereunder) of any amendment to, modification of or waiver with
respect to, the Notes or the Issuing and Paying Agency Agreement, including a complete copy
of any such amendment, modification or waiver.
	 
	 	3.2	 	The Issuer shall, whenever there shall occur any change in the Issuer’s condition
(financial or otherwise), operations or business prospects or any development or occurrence
in relation to the Issuer that would be materially adverse to holders of the Notes or
potential holders of the Notes (including any downgrading or receipt of any notice of
intended or potential downgrading or any review for potential change in the rating accorded
any of the Issuer’s securities by any nationally recognized statistical rating organization
which has published a rating of the Notes), promptly, and in any event prior to any
subsequent sale or issuance of Notes hereunder, notify the Dealer (by telephone, confirmed
in writing) of such materially adverse change, development or occurrence.
	 
	 	3.3	 	To the extent permitted by applicable law, the Issuer shall from time to time furnish
to the Dealer such information as the Dealer may reasonably request, including, without
limitation, any press releases or publicly available material provided by the Issuer to
any national securities exchange or rating agency, regarding (i) the Issuer’s operations
and financial condition, (ii) the due authorization and execution of the Notes and (iii)
the Issuer’s ability to pay the Notes as they mature.
	 
	 	3.4	 	The Issuer will take all such action as the Dealer may reasonably request to ensure
that each offer and each sale of the Notes will comply with any applicable state Blue Sky
laws; provided, however, that the Issuer shall not be obligated to file any general
consent to service of process or to qualify as a foreign corporation in any jurisdiction
in which it is not so qualified or subject itself to taxation in respect of doing business
in any jurisdiction in which it is not otherwise so subject.

8

 

	 	3.5	 	The Issuer will not be in default of any of its obligations hereunder, under the
Notes or under the Issuing and Paying Agency Agreement, at any time that any of the Notes
are outstanding.
	 
	 	3.6	 	The Issuer shall not issue or sell Notes hereunder until the Dealer shall have
received (a) an opinion of counsel to the Issuer, addressed to the Dealer, satisfactory in
form and substance to the Dealer, (b) a copy of the executed Issuing and Paying
Agency Agreement as then in effect, (c) a copy of resolutions adopted by the Board of
Directors of the Issuer, satisfactory in form and substance to the Dealer and certified by
the Secretary or similar officer of the Issuer, authorizing execution and delivery by the
Issuer of this Agreement, the Issuing and Paying Agency Agreement and the Notes and
consummation by the Issuer of the transactions contemplated hereby and thereby, (d) prior
to the issuance of any book-entry Notes represented by a master note registered in the
name of DTC or its nominee, a copy of the executed Letter of Representations among the
Issuer, the Issuing and Paying Agent and DTC and of the executed master note, (e) prior to
the issuance of any Notes in physical form, a copy of such form (unless attached to this
Agreement or the Issuing and Paying Agency Agreement) and (f) such other certificates,
opinions, letters and documents as the Dealer shall have reasonably requested.
	 
	 	3.7	 	The Issuer shall reimburse the Dealer for all of the Dealer’s reasonable
out-of-pocket expenses related to this Agreement, including expenses incurred in
connection with its preparation and negotiation, and the transactions contemplated hereby
(including, but not limited to, the reasonable costs of printing and distribution of the
Private Placement Memorandum), but not including the fees and out-of-pocket expenses of
the Dealer’s counsel.

	4.	 	Disclosure.

	 	4.1	 	The Private Placement Memorandum and its contents (other than the Dealer Information)
shall be the sole responsibility of the Issuer. The Private Placement Memorandum shall
contain a statement expressly offering an opportunity for each prospective purchaser to ask
questions of, and receive answers with publicly available information from, the Issuer
concerning the offering of Notes and to obtain relevant additional publicly available
information which the Issuer possesses or can acquire without unreasonable effort or
expense. Notwithstanding the foregoing, nothing in this Agreement or the Private Placement
Memorandum shall obligate the Issuer to provide information which has not been previously
made available to the public.
	 
	 	4.2	 	The Issuer agrees to promptly furnish the Dealer with any material public Company
Information, as it becomes available.

	4.3	 	(a) The Issuer further agrees to notify the Dealer promptly upon the occurrence of any
event relating to or affecting the Issuer that would cause the Company Information then in
existence to include an untrue statement of a material fact or to 

9

 

	 	 	omit to state a material
fact necessary in order to make the statements contained therein, in light of the
circumstances under which they are made, not misleading.
	 
	 	 	(b) In the event that the Issuer gives the Dealer notice pursuant to Section 4.3(a) and the
Dealer notifies the Issuer that it then has Notes it is holding in inventory, the Issuer
agrees promptly to supplement or amend the Private Placement Memorandum so that the Private
Placement Memorandum, as amended or supplemented, shall not contain an untrue statement of
a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading, and the Issuer shall make such supplement or
amendment available to the Dealer.
	 
	 	 	 (c) In the event that (i) the Issuer gives the Dealer notice pursuant to Section 4.3(a),
(ii) the Dealer does not notify the Issuer that it is then holding Notes in inventory and
(iii) the Issuer chooses not to promptly amend or supplement the Private Placement
Memorandum in the manner described in clause (b) above, then all solicitations and sales of
Notes shall be suspended until such time as the Issuer has so amended or supplemented the
Private Placement Memorandum, and made such amendment or supplement available to the
Dealer.

	5.	 	Indemnification and Contribution.

	 	5.1	 	The Issuer will indemnify and hold harmless the Dealer, each individual, corporation,
partnership, trust, association or other entity controlling the Dealer, any affiliate of
the Dealer or any such controlling entity and their respective directors, officers,
employees, partners, incorporators, shareholders, servants, trustees and agents
(hereinafter the “Indemnitees”) against any and all liabilities, penalties, suits, causes
of action, losses, damages, claims, costs and expenses (including, without limitation,
reasonable fees and disbursements of counsel) or judgments of whatever kind or nature (each
a “Claim”), imposed upon, incurred by or asserted against the Indemnitees (i) arising out
of or based upon any allegation that the Private Placement Memorandum, the Company
Information or any information provided by the Issuer to the Dealer included (as of any
relevant time) or includes an untrue statement of a material fact or omitted (as of any
relevant time) or omits to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading or (ii)
arising out of or based upon the breach by the Issuer of any agreement, covenant or
representation made in or pursuant to this Agreement. The Issuer and the Dealer agree that
the Issuer shall have no liability under this section for any Claim arising out of or based
on Dealer Information.
	 
	 	5.2	 	Provisions relating to claims made for indemnification under this Section 5 are set
forth on Exhibit B to this Agreement.
	 
	 	5.3	 	In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for in this Section 5 is held to be unavailable or insufficient to
hold harmless the Indemnitees, although applicable in accordance with the terms of 

10

 

	 	 	 	this
Section 5, the Issuer shall contribute to the aggregate costs incurred by the Dealer in
connection with any Claim in the proportion of the respective economic interests of the
Issuer and the Dealer; provided, however, that such contribution by the Issuer shall be in
an amount such that the aggregate costs incurred by the Dealer do not exceed the aggregate
of the commissions and fees earned by the Dealer hereunder with respect to the issue or
issues of Notes to which such Claim relates. The respective economic interests shall be
calculated by
reference to the aggregate proceeds to the Issuer of the Notes issued hereunder and the
aggregate commissions and fees earned by the Dealer hereunder.

	6.	 	Definitions.

	 	6.1	 	“Claim” shall have the meaning set forth in Section 5.1.
	 
	 	6.2	 	“Company Information” at any given time shall mean the Private Placement Memorandum
together with, to the extent applicable, (i) the Issuer’s most recent report on Form 10-K
filed with the SEC and each report on Form 10-Q or 8-K filed by the Issuer with the SEC
since the most recent Form 10-K, (ii) the Issuer’s most recent annual audited financial
statements and each published interim financial statement or report prepared subsequent
thereto, if not included in item (i) above, (iii) the Issuer’s other publicly available
recent reports, including, but not limited to, any publicly available filings or reports
provided to its shareholders, (iv) any other information or disclosure prepared pursuant to
Section 4.3 hereof and (v) any information prepared or approved by the Issuer for
dissemination to investors or potential investors in the Notes.
	 
	 	6.3	 	“Dealer Information” shall mean material concerning the Dealer provided by the Dealer
in writing expressly for inclusion in the Private Placement Memorandum.
	 
	 	6.4	 	“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended.
	 
	 	6.5	 	“Indemnitee” shall have the meaning set forth in Section 5.1.
	 
	 	6.6	 	“Institutional Accredited Investor” shall mean an institutional investor that is an
accredited investor within the meaning of Rule 501 under the Securities Act and that has
such knowledge and experience in financial and business matters that it is capable of
evaluating and bearing the economic risk of an investment in the Notes, including, but not
limited to, a bank, as defined in Section 3(a)(2) of the Securities Act, or a savings and
loan association or other institution, as defined in Section 3(a)(5)(A) of the Securities
Act, whether acting in its individual or fiduciary capacity.
	 
	 	6.7	 	“Issuing and Paying Agency Agreement” shall mean the issuing and paying agency
agreement described on the cover page of this Agreement, as such agreement may be amended
or supplemented from time to time.

11

 

	 	6.8	 	“Issuing and Paying Agent” shall mean the party designated as such on the cover page of
this Agreement, as issuing and paying agent under the Issuing and Paying Agency Agreement,
or any successor thereto in accordance with the Issuing and Paying Agency Agreement.
	 
	 	6.9	 	“Non-bank fiduciary or agent” shall mean a fiduciary or agent other than (a) a bank, as
defined in Section 3(a)(2) of the Securities Act, or (b) a savings and loan association, as
defined in Section 3(a)(5)(A) of the Securities Act.
	 
	 	6.10	 	“Private Placement Memorandum” shall mean offering materials prepared in accordance
with Section 4 (including materials referred to therein or incorporated by reference
therein, if any) provided to purchasers and prospective purchasers of the Notes, and shall
include amendments and supplements thereto which may be prepared from time to time in
accordance with this Agreement (other than any amendment or supplement that has been
completely superseded by a later amendment or supplement).
	 
	 	6.11	 	“Qualified Institutional Buyer” or “QIB” shall have the meaning assigned to that term
in Rule 144A under the Securities Act.
	 
	 	6.12	 	“Rule 144A” shall mean Rule 144A under the Securities Act.
	 
	 	6.13	 	“SEC” shall mean the U.S. Securities and Exchange Commission.
	 
	 	6.14	 	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended.
	 
	 	6.15	 	“Sophisticated Individual Accredited Investor” shall mean an individual who (a) is an
accredited investor within the meaning of Regulation D under the Securities Act and (b)
based on his or her pre-existing relationship with the Dealer, is reasonably believed by
the Dealer to be a sophisticated investor (i) possessing such knowledge and experience (or
represented by a fiduciary or agent possessing such knowledge and experience) in financial
and business matters that he or she is capable of evaluating and bearing the economic risk
of an investment in the Notes and (ii) having not less than $5 million in investments (as
defined, for purposes of this section, in Rule 2a51-1 under the Investment Company Act of
1940, as amended).

	7.	 	General

	 	7.1	 	Unless otherwise expressly provided herein, all notices under this Agreement to
parties hereto shall be in writing and shall be effective when received at the address of
the respective party set forth in the Addendum to this Agreement.
	 
	 	7.2	 	This Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to its conflict of laws provisions.

12

 

	 	7.3	 	The Issuer agrees that any suit, action or proceeding brought by the Issuer against
the Dealer in connection with or arising out of this Agreement or the Notes or the offer
and sale of the Notes shall be brought solely in the United States federal courts located
in the Borough of Manhattan or the courts of the State of New York located in the Borough
of Manhattan. EACH OF THE DEALER AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY
SUIT, ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
	 
	 	7.4	 	This Agreement may be terminated, at any time, by the Issuer, upon one business day’s
prior notice to such effect to the Dealer, or by the Dealer upon one business day’s prior
notice to such effect to the Issuer. Any such termination, however, shall not affect the
obligations of the Issuer under Sections 3.7, 5 and 7.3 hereof or the respective
representations, warranties, agreements, covenants, rights or responsibilities of the
parties made or arising prior to the termination of this Agreement.
	 
	 	7.5	 	This Agreement is not assignable by either party hereto without the written consent
of the other party; provided, however, that the Dealer may assign its rights and
obligations under this Agreement to any affiliate of the Dealer.
	 
	 	7.6	 	This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.
	 
	 	7.7	 	This Agreement is for the exclusive benefit of the parties hereto, and their
respective permitted successors and assigns hereunder, and shall not be deemed to give any
legal or equitable right, remedy or claim to any other person whatsoever.
	 
	 	7.8	 	The Issuer acknowledges and agrees that (i) purchases and sales, or placements, of
the Notes pursuant to this Agreement, including the determination of any prices for the
Notes and Dealer compensation, are arm’s-length commercial transactions between the Issuer
and the Dealer, (ii) in connection therewith and with the process leading to such
transactions, the Dealer is acting solely as a principal and not the agent (except to the
extent explicitly set forth herein) or fiduciary of the Issuer or any of its affiliates,
(iii) the Dealer has not assumed an advisory or fiduciary responsibility in favor of the
Issuer or any of its affiliates with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether the Dealer has advised or is currently
advising the Issuer or any of its affiliates on other matters) or any other obligation to
the Issuer or any of its affiliates except the obligations expressly set forth in this
Agreement, (iv) the Issuer is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated by this
Agreement, (v) the Dealer and its affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Issuer and that the
Dealer has no obligation to disclose any of those interests by virtue of any advisory or
fiduciary relationship, (vi) the Dealer has not provided any legal, accounting, regulatory
or tax advice with respect to the 

13

 

	 	 	 	transactions contemplated hereby, and (vii) the Issuer
has consulted its own legal and financial advisors to the extent it deemed appropriate.
The Issuer agrees that it will not claim that the Dealer has rendered advisory services of
any nature or respect, or owes a fiduciary or similar duty to the Issuer in connection
with such transactions or the process leading thereto. Any review by the Dealer of the
Issuer, the transactions contemplated hereby or other matters relating to such
transactions shall be performed solely for the benefit of the Dealer and shall not be on
behalf of
the Issuer. The Issuer hereby waives and releases, to the fullest extent permitted by
law, any claims the Issuer may have against the Dealer with respect to any breach or
alleged breach of fiduciary duty arising out of the offer and sale of the Notes.
	 
	 	7.9	 	This Agreement supersedes all prior agreements and understandings (whether written or
oral) between the Issuer and the Dealer with respect to the subject matter hereof.

14

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and
year first above written.

	 	 	 	 	 	 	 
	 	 	STARBUCKS CORPORATION,	 	 
	 	 	        as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GOLDMAN, SACHS & CO.,	 	 
	 	 	        as Dealer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 	 	Title: Authorized Signatory	 	 

15

 

Addendum

The following additional clauses shall apply to the Agreement and be deemed a part thereof.

	1.	 	The other dealer referred to in clause (b) of Section 1.2 of the Agreement is Banc of America
Securities LLC.

	2.	 	The addresses of the respective parties for purposes of notices under Section 7.1 are as
follows:

	 	 	 
	For the Issuer:
	 	 
	 
	 	 
	Address:

	 	Starbucks Corporation
	 

	 	2401 Utah Avenue South
	 

	 	Seattle, Washington 98134
	 
	 	 
	Attention:

	 	Richard Lautch, treasurer
	 
	 	 
	Telephone number:

	 	(206) 318-4438
	 
	 	 
	Fax number:

	 	(206) 903-2820
	 
	 	 
	For the Dealer:
	 	 
	 
	 	 
	Address:

	 	Goldman, Sachs & Co.
	 

	 	85 Broad Street
	 

	 	New York, New York 10004
	 
	 	 
	Attention:

	 	Money Market Origination
	 
	 	 
	Telephone number:

	 	(212) 902-6181
	 
	 	 
	Fax number:

	 	(212) 902-0683

16

 

Exhibit A

Form of Legend for Private Placement Memorandum and Notes

THE NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY
OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY BE MADE ONLY IN COMPLIANCE WITH
AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS. BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I)
IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE NOTES,
(II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF AND (III) IT IS EITHER
(A)(1) AN INSTITUTIONAL INVESTOR OR SOPHISTICATED INDIVIDUAL INVESTOR THAT IS AN ACCREDITED
INVESTOR WITHIN THE MEANING OF RULE 501(a) UNDER THE ACT AND WHICH, IN THE CASE OF AN INDIVIDUAL,
(i) POSSESSES SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS THAT HE OR SHE IS
CAPABLE OF EVALUATING AND BEARING THE ECONOMIC RISK OF AN INVESTMENT IN THE NOTES AND (ii) HAS NOT
LESS THAN $5 MILLION IN INVESTMENTS (AN “INSTITUTIONAL ACCREDITED INVESTOR” OR “SOPHISTICATED
INDIVIDUAL ACCREDITED INVESTOR”, RESPECTIVELY) AND (2)(i) PURCHASING NOTES FOR ITS OWN ACCOUNT,
(ii) A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS AND LOAN ASSOCIATION OR OTHER
INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT) ACTING IN ITS INDIVIDUAL OR FIDUCIARY
CAPACITY OR (iii) A FIDUCIARY OR AGENT (OTHER THAN A U.S. BANK OR SAVINGS AND LOAN ASSOCIATION)
PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN INSTITUTIONAL
ACCREDITED INVESTOR OR SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR; OR (B) A QUALIFIED
INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE ACT THAT IS ACQUIRING NOTES
FOR ITS OWN ACCOUNT OR FOR ONE OR MORE ACCOUNTS, EACH OF WHICH ACCOUNTS IS A QIB; AND THE PURCHASER
ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY RELY UPON THE EXEMPTION FROM THE REGISTRATION
PROVISIONS OF SECTION 5 OF THE ACT PROVIDED BY RULE 144A. BY ITS ACCEPTANCE OF A NOTE, THE
PURCHASER THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR OTHER TRANSFER THEREOF WILL BE
MADE ONLY (A) IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR
TO A PLACEMENT AGENT DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE
“PLACEMENT AGENTS”), NONE OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH A
PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR, SOPHISTICATED INDIVIDUAL ACCREDITED
INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE REQUIREMENTS OF RULE 144A AND
(B) IN MINIMUM AMOUNTS OF $250,000.

17

 

Exhibit B

Further Provisions Relating to Indemnification

	(a)	 	The Issuer agrees to reimburse each Indemnitee for all expenses (including reasonable fees
and disbursements of external counsel) as they are incurred by it in connection with
investigating or defending any loss, claim, damage, liability or action in respect of which
indemnification may be sought under Section 5 of the Agreement (whether or not it is a party
to any such proceedings).

	(b)	 	Promptly after receipt by an Indemnitee of notice of the existence of a Claim, such
Indemnitee will, if a claim in respect thereof is to be made against the Issuer, notify the
Issuer in writing of the existence thereof; provided that (i) the omission so to notify the
Issuer will not relieve the Issuer from any liability which it may have hereunder unless and
except to the extent it did not otherwise learn of such Claim and such failure results in the
forfeiture by the Issuer of substantial rights and defenses, and (ii) the omission so to
notify the Issuer will not relieve it from liability which it may have to an Indemnitee
otherwise than on account of this indemnity agreement. In case any such Claim is made against
any Indemnitee and it notifies the Issuer of the existence thereof, the Issuer will be
entitled to participate therein, and to the extent that it may elect by written notice
delivered to the Indemnitee, to assume the defense thereof, with counsel reasonably
satisfactory to such Indemnitee; provided that if the defendants in any such Claim include
both the Indemnitee and the Issuer, and the Indemnitee shall have concluded that there may be
legal defenses available to it which are different from or additional to those available to
the Issuer, the Issuer shall not have the right to direct the defense of such Claim on behalf
of such Indemnitee, and the Indemnitee shall have the right to select separate counsel to
assert such legal defenses on behalf of such Indemnitee. Upon receipt of notice from the
Issuer to such Indemnitee of the Issuer’s election so to assume the defense of such Claim and
approval by the Indemnitee of counsel, the Issuer will not be liable to such Indemnitee for
expenses incurred thereafter by the Indemnitee in connection with the defense thereof (other
than reasonable costs of investigation) unless (i) the Indemnitee shall have employed separate
counsel in connection with the assertion of legal defenses in accordance with the proviso to
the next preceding sentence (it being understood, however, that the Issuer shall not be liable
for the expenses of more than one separate counsel (in addition to any local counsel in the
jurisdiction in which any Claim is brought), selected by such Indemnitees, representing the
Indemnitees who are party to such Claim; provided, further, that if the defendants in any such
Claim include multiple Indemnitees, all such Indemnitees shall be entitled to select only one
counsel to serve as separate counsel for all of the Indemnitees, unless such Indemnitees have
concluded that there may be legal defenses available to an Indemnitee which are different from
or additional to those available to any other Indemnitee, in which case any such Indemnitee
with different or additional legal defenses shall have the right to select separate counsel
from any other Indemnitees to assert such legal defenses on behalf of such Indemnitee), (ii)
the Issuer shall not have employed counsel reasonably satisfactory to the Indemnitee to
represent the Indemnitee within a reasonable time after notice of existence of the Claim or
(iii) the Issuer has authorized in writing the employment of counsel for the Indemnitee. The
indemnity, reimbursement and contribution obligations of the Issuer
hereunder shall 

18

 

	 	 	be in addition to any other liability the Issuer may otherwise have to an
Indemnitee and shall be binding upon and inure to the benefit of any successors, assigns, heirs
and personal representatives of the Issuer and any Indemnitee. The Issuer agrees that without
the Dealer’s prior written consent, it will not settle, compromise or consent to the entry of
any judgment in any Claim in respect of which indemnification may be sought under the
indemnification provision of the Agreement (whether or not the Dealer or any other Indemnitee is
an actual or potential party to such Claim), unless such settlement, compromise or consent (i)
includes an unconditional release of each Indemnitee from all liability arising out of such
Claim and (ii) does not include a statement as to or an admission of fault, culpability or
failure to act, by or on behalf of any Indemnitee.

19

 

Exhibit C

Statement of Terms for Interest – Bearing Commercial Paper Notes of Starbucks Corporation

THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC
PRIVATE PLACEMENT MEMORANDUM SUPPLEMENT (THE “SUPPLEMENT”) (IF ANY) SENT TO EACH PURCHASER AT THE
TIME OF THE TRANSACTION.

1. General. (a) The obligations of the Issuer to which these terms apply (each a
“Note”) are represented by one or more Master Notes (each, a “Master Note”) issued in the name
of (or of a nominee for) The Depository Trust Company (“DTC”), which Master Note includes the
terms and provisions for the Issuer’s Interest-Bearing Commercial Paper Notes that are set forth
in this Statement of Terms, since this Statement of Terms constitutes an integral part of the
Underlying Records as defined and referred to in the Master Note.

(b) “Business Day” means any day other than a Saturday or Sunday that is neither a legal
holiday nor a day on which banking institutions are authorized or required by law, executive
order or regulation to be closed in New York City and, with respect to LIBOR Notes (as defined
below) is also a London Business Day. “London Business Day” means, a day, other than a Saturday
or Sunday, on which dealings in deposits in U.S. dollars are transacted in the London interbank
market.

2. Interest. (a) Each Note will bear interest at a fixed rate (a “Fixed Rate Note”)
or at a floating rate (a “Floating Rate Note”).

(b) The Supplement sent to each holder of such Note will describe the following terms: (i)
whether such Note is a Fixed Rate Note or a Floating Rate Note and whether such Note is an
Original Issue Discount Note (as defined below); (ii) the date on which such Note will be issued
(the “Issue Date”); (iii) the Stated Maturity Date (as defined below); (iv) if such Note is a
Fixed Rate Note, the rate per annum at which such Note will bear interest, if any, and the
Interest Payment Dates; (v) if such Note is a Floating Rate Note, the Base Rate, the Index
Maturity, the Interest Reset Dates, the Interest Payment Dates and the Spread and/or Spread
Multiplier, if any (all as defined below), and any other terms relating to the particular method
of calculating the interest rate for such Note; and (vi) any other terms applicable specifically
to such Note. “Original Issue Discount Note” means a Note which has a stated redemption price
at the Stated Maturity Date that exceeds its Issue Price by more than a specified de minimis
amount and which the Supplement indicates will be an “Original Issue Discount Note”.

(c) Each Fixed Rate Note will bear interest from its Issue Date at the rate per annum specified
in the Supplement until the principal amount thereof is paid or made available for payment.
Interest on each Fixed Rate Note will be payable on the dates specified in the Supplement (each
an “Interest Payment Date” for a Fixed Rate Note) and on the

20

 

Maturity Date (as defined below). Interest on Fixed Rate Notes will be computed on the basis of
a 360-day year of twelve 30-day months.

If any Interest Payment Date or the Maturity Date of a Fixed Rate Note falls on a day that is
not a Business Day, the required payment of principal, premium, if any, and/or interest will be
payable on the next succeeding Business Day, and no additional interest will accrue in respect
of the payment made on that next succeeding Business Day.

(d) The interest rate on each Floating Rate Note for each Interest Reset Period (as defined
below) will be determined by reference to an interest rate basis (a “Base Rate”) plus or minus a
number of basis points (one basis point equals one-hundredth of a percentage point) (the
“Spread”), if any, and/or multiplied by a certain percentage (the “Spread Multiplier”), if any,
until the principal thereof is paid or made available for payment. The Supplement will
designate which of the following Base Rates is applicable to the related Floating Rate Note: (a)
the CD Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial Paper Rate Note”),
(c) the Federal Funds Rate (a “Federal Funds Rate Note”), (d) LIBOR (a “LIBOR Note”), (e) the
Prime Rate (a “Prime Rate Note”), (f) the Treasury Rate (a “Treasury Rate Note”) or (g) such
other Base Rate as may be specified in such Supplement.

The rate of interest on each Floating Rate Note will be reset daily, weekly, monthly, quarterly
or semi-annually (the “Interest Reset Period”). The date or dates on which interest will be
reset (each an “Interest Reset Date”) will be, unless otherwise specified in the Supplement, in
the case of Floating Rate Notes which reset daily, each Business Day, in the case of Floating
Rate Notes (other than Treasury Rate Notes) that reset weekly, the Wednesday of each week; in
the case of Treasury Rate Notes that reset weekly, the Tuesday of each week; in the case of
Floating Rate Notes that reset monthly, the third Wednesday of each month; in the case of
Floating Rate Notes that reset quarterly, the third Wednesday of March, June, September and
December; and in the case of Floating Rate Notes that reset semiannually, the third Wednesday of
the two months specified in the Supplement. If any Interest Reset Date for any Floating Rate
Note is not a Business Day, such Interest Reset Date will be postponed to the next day that is a
Business Day, except that in the case of a LIBOR Note, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date shall be the immediately preceding Business
Day. Interest on each Floating Rate Note will be payable monthly, quarterly or semiannually (the
“Interest Payment Period”) and on the Maturity Date. Unless otherwise specified in the
Supplement, and except as provided below, the date or dates on which interest will be payable
(each an “Interest Payment Date” for a Floating Rate Note) will be, in the case of Floating Rate
Notes with a monthly Interest Payment Period, on the third Wednesday of each month; in the case
of Floating Rate Notes with a quarterly Interest Payment Period, on the third Wednesday of
March, June, September and December; and in the case of Floating Rate Notes with a semiannual
Interest Payment Period, on the third Wednesday of the two months specified in the Supplement.
In addition, the Maturity Date will also be an Interest Payment Date.

If any Interest Payment Date for any Floating Rate Note (other than an Interest Payment Date
occurring on the Maturity Date) would otherwise be a day that is not a Business Day,

21

 

such Interest Payment Date shall be postponed to the next day that is a Business Day,
except that in the case of a LIBOR Note, if such Business Day is in the next succeeding
calendar month, such Interest Payment Date shall be the immediately preceding Business Day. If
the Maturity Date of a Floating Rate Note falls on a day that is not a Business Day, the payment
of principal and interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after such maturity.

Interest payments on each Interest Payment Date for Floating Rate Notes will include accrued
interest from and including the Issue Date or from and including the last date in respect of
which interest has been paid, as the case may be, to, but excluding, such Interest Payment Date.
On the Maturity Date, the interest payable on a Floating Rate Note will include interest
accrued to, but excluding, the Maturity Date. Accrued interest will be calculated by
multiplying the principal amount of a Floating Rate Note by an accrued interest factor. This
accrued interest factor will be computed by adding the interest factors calculated for each day
in the period for which accrued interest is being calculated. The interest factor (expressed as
a decimal) for each such day will be computed by dividing the interest rate applicable to such
day by 360, in the cases where the Base Rate is the CD Rate, Commercial Paper Rate, Federal
Funds Rate, LIBOR or Prime Rate, or by the actual number of days in the year, in the case where
the Base Rate is the Treasury Rate. The interest rate in effect on each day will be (i) if such
day is an Interest Reset Date, the interest rate with respect to the Interest Determination Date
(as defined below) pertaining to such Interest Reset Date, or (ii) if such day is not an
Interest Reset Date, the interest rate with respect to the Interest Determination Date
pertaining to the next preceding Interest Reset Date, subject in either case to any adjustment
by a Spread and/or a Spread Multiplier.

The “Interest Determination Date” where the Base Rate is the CD Rate or the Commercial Paper
Rate will be the second Business Day next preceding an Interest Reset Date. The Interest
Determination Date where the Base Rate is the Federal Funds Rate or the Prime Rate will be the
Business Day next preceding an Interest Reset Date. The Interest Determination Date where the
Base Rate is LIBOR will be the second London Business Day next preceding an Interest Reset Date.
The Interest Determination Date where the Base Rate is the Treasury Rate will be the day of the
week in which such Interest Reset Date falls when Treasury Bills are normally auctioned.
Treasury Bills are normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is held on the following Tuesday or the preceding Friday. If
an auction is so held on the preceding Friday, such Friday will be the Interest Determination
Date pertaining to the Interest Reset Date occurring in the next succeeding week.

The “Index Maturity” is the period to maturity of the instrument or obligation from which the
applicable Base Rate is calculated.

The “Calculation Date,” where applicable, shall be the earlier of (i) the tenth calendar day
following the applicable Interest Determination Date or (ii) the Business Day preceding the
applicable Interest Payment Date or Maturity Date.

22

 

All times referred to herein reflect New York City time, unless otherwise specified.

The Issuer shall specify in writing to the Issuing and Paying Agent which party will be the
calculation agent (the “Calculation Agent”) with respect to the Floating Rate Notes. The
Calculation Agent will provide the interest rate then in effect and, if determined, the interest
rate which will become effective on the next Interest Reset Date with respect to such Floating
Rate Note to the Issuing and Paying Agent as soon as the interest rate with respect to such
Floating Rate Note has been determined and as soon as practicable after any change in such
interest rate.

All percentages resulting from any calculation on Floating Rate Notes will be rounded to the
nearest one hundred-thousandth of a percentage point, with five-one millionths of a percentage
point rounded upwards. For example, 9.876545% (or .09876545) would be rounded to 9.87655% (or
        .0987655). All dollar amounts used in or resulting from any calculation on Floating Rate Notes
will be rounded, in the case of U.S. dollars, to the nearest cent or, in the case of a foreign
currency, to the nearest unit (with one-half cent or unit being rounded upwards).

CD Rate Notes

“CD Rate” means the rate on any Interest Determination Date for negotiable certificates of
deposit having the Index Maturity as published by the Board of Governors of the Federal Reserve
System (the “FRB”) in “Statistical Release H.15(519), Selected Interest Rates” or any successor
publication of the FRB (“H.15(519)”) under the heading “CDs (Secondary Market)”.

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, the CD
Rate will be the rate on such Interest Determination Date set forth in the daily update of
H.15(519), available through the world wide website of the FRB at
http://www.federalreserve.gov/releases/h15/Update, or any successor site or publication or other
recognized electronic source used for the purpose of displaying the applicable rate (“H.15 Daily
Update”) under the caption “CDs (Secondary Market)”.

If such rate is not published in either H.15(519) or H.15 Daily Update by 3:00 p.m. on the
Calculation Date, the Calculation Agent will determine the CD Rate to be the arithmetic mean of
the secondary market offered rates as of 10:00 a.m. on such Interest Determination Date of three
leading nonbank dealers1 in negotiable U.S. dollar certificates of deposit in New
York City selected by the Calculation Agent for negotiable U.S. dollar certificates of deposit
of major United States money center banks of the highest credit standing in the market for
negotiable certificates of deposit with a remaining maturity closest to the Index Maturity in
the denomination of $5,000,000.

If the dealers selected by the Calculation Agent are not quoting as set forth above, the CD Rate
will remain the CD Rate then in effect on such Interest Determination Date.

Commercial Paper Rate Notes

 

			
	1	 	Such nonbank dealers referred to in this
Statement of Terms may include affiliates of the Dealer.

23

 

“Commercial Paper Rate” means the Money Market Yield (calculated as described below) of the rate
on any Interest Determination Date for commercial paper having the Index Maturity, as published in H.15(519) under the heading “Commercial Paper-Nonfinancial”.

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, then the
Commercial Paper Rate will be the Money Market Yield of the rate on such Interest Determination
Date for commercial paper of the Index Maturity as published in H.15 Daily Update under the
heading “Commercial Paper-Nonfinancial”.

If by 3:00 p.m. on such Calculation Date such rate is not published in either H.15(519) or H.15
Daily Update, then the Calculation Agent will determine the Commercial Paper Rate to be the
Money Market Yield of the arithmetic mean of the offered rates as of 11:00 a.m. on such Interest
Determination Date of three leading dealers of U.S. dollar commercial paper in New York City
selected by the Calculation Agent for commercial paper of the Index Maturity placed for an
industrial issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized
statistical rating organization.

If the dealers selected by the Calculation Agent are not quoting as mentioned above, the
Commercial Paper Rate with respect to such Interest Determination Date will remain the
Commercial Paper Rate then in effect on such Interest Determination Date.

“Money Market Yield” will be a yield calculated in accordance with the following formula:

	 	 	 	 	 
	Money Market Yield =

	 	D x 360
	 	x 100
	 

	 	 	 	 
	 

	 	360 — (D x M)	 	 

where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and “M” refers to the actual number of days in the interest
period for which interest is being calculated.

Federal Funds Rate Notes

“Federal Funds Rate” means the rate on any Interest Determination Date for federal funds as
published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Moneyline
Telerate (or any successor service) on page 120 (or any other page as may replace the specified
page on that service) (“Telerate Page 120”).

If the above rate does not appear on Telerate Page 120 or is not so published by 3:00 p.m. on
the Calculation Date, the Federal Funds Rate will be the rate on such Interest Determination
Date as published in H.15 Daily Update under the heading “Federal Funds/(Effective)”.

If such rate is not published as described above by 3:00 p.m. on the Calculation Date, the
Calculation Agent will determine the Federal Funds Rate to be the arithmetic mean of the rates
for the last transaction in overnight U.S. dollar federal funds arranged by each of

24

 

three leading brokers of Federal Funds transactions in New York City selected by the Calculation
Agent prior to 9:00 a.m. on such Interest Determination Date.

If the brokers selected by the Calculation Agent are not quoting as mentioned above, the Federal
Funds Rate will remain the Federal Funds Rate then in effect on such Interest Determination
Date.

LIBOR Notes

The London Interbank offered rate (“LIBOR”) means, with respect to any Interest Determination
Date, the rate for deposits in U.S. dollars having the Index Maturity that appears on the
Designated LIBOR Page as of 11:00 a.m., London time, on such Interest Determination Date.

If no rate appears, LIBOR will be determined on the basis of the rates at approximately 11:00
a.m., London time, on such Interest Determination Date at which deposits in U.S. dollars are
offered to prime banks in the London interbank market by four major banks in such market
selected by the Calculation Agent for a term equal to the Index Maturity and in principal amount
equal to an amount that in the Calculation Agent’s judgment is representative for a single
transaction in U.S. dollars in such market at such time (a “Representative Amount”). The
Calculation Agent will request the principal London office of each of such banks to provide a
quotation of its rate. If at least two such quotations are provided, LIBOR will be the
arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR for such
interest period will be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in
New York City, on such Interest Determination Date by three major banks in New York City,
selected by the Calculation Agent, for loans in U.S. dollars to leading European banks, for a
term equal to the Index Maturity and in a Representative Amount; provided, however, that if
fewer than three banks so selected by the Calculation Agent are providing such quotations, the
then existing LIBOR rate will remain in effect for such Interest Payment Period.

“Designated LIBOR Page” means the display designated as page “3750” on Moneyline Telerate (or
such other page as may replace the 3750 page on that service or such other service or services
as may be nominated by the British Bankers’ Association for the purposes of displaying London
interbank offered rates for U.S. dollar deposits).

Prime Rate Notes

“Prime Rate” means the rate on any Interest Determination Date as published in H.15(519) under
the heading “Bank Prime Loan”.

If the above rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation Date, then
the Prime Rate will be the rate on such Interest Determination Date as published in H.15 Daily
Update opposite the caption “Bank Prime Loan”.

If the rate is not published prior to 3:00 p.m. on the Calculation Date in either H.15(519) or
H.15 Daily Update, then the Calculation Agent will determine the Prime Rate to be the arithmetic
mean of the rates of interest publicly announced by each bank that appears on

25

 

the Reuters Screen US PRIME1 Page (as defined below) as such bank’s prime rate or base
lending rate as of 11:00 a.m., on that Interest Determination Date.

If fewer than four such rates referred to above are so published by 3:00 p.m. on the Calculation
Date, the Calculation Agent will determine the Prime Rate to be the arithmetic mean of the prime
rates or base lending rates quoted on the basis of the actual number of days in the year divided
by 360 as of the close of business on such Interest Determination Date by three major banks in
New York City selected by the Calculation Agent.

If the banks selected are not quoting as mentioned above, the Prime Rate will remain the Prime
Rate in effect on such Interest Determination Date.

“Reuters Screen US PRIME1 Page” means the display designated as page “US PRIME1” on the Reuters
Monitor Money Rates Service (or such other page as may replace the US PRIME1 page on that
service for the purpose of displaying prime rates or base lending rates of major United States
banks).

Treasury Rate Notes

“Treasury Rate” means:

(1) the rate from the auction held on the Interest Determination Date (the “Auction”) of direct
obligations of the United States (“Treasury Bills”) having the Index Maturity specified in the
Supplement under the caption “INVESTMENT RATE” on the display on Moneyline Telerate (or any
successor service) on page 56 (or any other page as may replace that page on that service)
(“Telerate Page 56”) or page 57 (or any other page as may replace that page on that service)
(“Telerate Page 57”), or

(2) if the rate referred to in clause (1) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for the applicable
Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government
Securities/Treasury Bills/Auction High”, or

(3) if the rate referred to in clause (2) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield of the auction rate of the applicable Treasury Bills
as announced by the United States Department of the Treasury, or

(4) if the rate referred to in clause (3) is not so announced by the United States Department of
the Treasury, or if the Auction is not held, the Bond Equivalent Yield of the rate on the
particular Interest Determination Date of the applicable Treasury Bills as published in
H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or

(5) if the rate referred to in clause (4) is not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date of the applicable
Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government
Securities/Treasury Bills/Secondary Market”, or

26

 

(6) if the rate referred to in clause (5) is not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date calculated by the
Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market
bid rates, as of approximately 3:30 p.m. on that Interest Determination Date, of three primary
United States government securities dealers selected by the Calculation Agent, for the issue of
Treasury Bills with a remaining maturity closest to the Index Maturity specified in the
Supplement, or

(7) if the dealers so selected by the Calculation Agent are not quoting as mentioned in clause
(6), the Treasury Rate in effect on the particular Interest Determination Date.

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the
following formula:

	 	 	 	 	 
	Bond Equivalent Yield =

	 	D x N
	 	x 100
	 

	 	 	 	 
	 

	 	360 — (D x M)	 	 

	 	 	where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers
to the actual number of days in the applicable Interest Reset Period.
	 
	3.	 	Final Maturity. The Stated Maturity Date for any Note will be the date so
specified in the Supplement, which shall be no later than 397 days from the date of issuance.
On its Stated Maturity Date, or any date prior to the Stated Maturity Date on which the
particular Note becomes due and payable by the declaration of acceleration, each such date
being referred to as a Maturity Date, the principal amount of each Note, together with accrued
and unpaid interest thereon, will be immediately due and payable.

	4.	 	Events of Default. The occurrence of any of the following shall constitute an
“Event of Default” with respect to a Note: (i) default in any payment of principal of or
interest on such Note (including on a redemption thereof); (ii) the Issuer makes any
compromise arrangement with its creditors generally including the entering into any form of
moratorium with its creditors generally; (iii) a court having jurisdiction shall enter a
decree or order for relief in respect of the Issuer in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or there
shall be appointed a receiver, administrator, liquidator, custodian, trustee or sequestrator
(or similar officer) with respect to the whole or substantially the whole of the assets of the
Issuer and any such decree, order or appointment is not removed, discharged or withdrawn
within 60 days thereafter; or (iv) the Issuer shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent
to the entry of an order for relief in an involuntary case under any such law, or consent to
the appointment of or taking possession by a receiver, administrator, liquidator, assignee,
custodian, trustee or sequestrator (or similar official), with respect to the whole or
substantially the whole of the assets of the Issuer or make any general assignment for the
benefit of creditors. Upon the occurrence of an Event of Default, the principal of each

27

 

	 	 	obligation evidenced by such Note (together with interest accrued and
unpaid thereon) shall become, without any notice or demand, immediately due and
payable.2

	5.	 	Obligation Absolute. No provision of the Issuing and Paying Agency Agreement
under which the Notes are issued shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on each Note at the times,
place and rate, and in the coin or currency, herein prescribed.

	6.	 	Supplement. Any term contained in the Supplement shall supercede any conflicting
term contained herein.

 

			
	2	 	Unlike single payment notes, where a
default arises only at the stated maturity, interest-bearing notes with
multiple payment dates should contain a default provision permitting
acceleration of the maturity if the Issuer defaults on an interest payment.

28

 

Exhibit D

          In the case of any agreement by the Dealer to purchase a Note hereunder (other than as
agent) which provides for a settlement date that is three New York Business Days or more after the
date of such agreement, the obligation of the Dealer to purchase the Note under such agreement
shall be subject to the following conditions:

	 	(a)	 	the representations and warranties given by the Issuer set forth above in Section 1.7
and Section 2 shall be true and correct on and as of the settlement date as if made on and
as of such date, and the Issuer shall have performed all of its obligations hereunder to
be performed as of such date,
	 
	 	(b)	 	since the date of the most recent Private Placement Memorandum, there shall have been
no material adverse change in the condition (financial or otherwise), operations or
business prospects of the Issuer (whether occurring before or after such agreement was
entered into) which was not disclosed to the Dealer in writing prior to the time such
agreement was entered into,
	 
	 	(c)	 	the Issuer shall not be in default of any of its obligations hereunder, under the Notes
or under the Issuing and Paying Agency Agreement,
	 
	 	(d)	 	on or after the date of such agreement there shall not have occurred any of the
following: (i) a suspension or material limitation in trading in securities generally on
the New York Stock Exchange; (ii) a suspension or material limitation in trading in the
Issuer’s securities on the New York Stock Exchange; (iii) a general moratorium on
commercial banking activities declared by either Federal or New York State authorities or a
material disruption in commercial banking or securities settlement or clearance services in
the United States; (iv) the outbreak or escalation of hostilities involving the United
States or the declaration by the United States of a national emergency or war or (v) the
occurrence of any other calamity or crisis or any change in financial, political or
economic conditions in the United States or elsewhere, if the effect of any such event
specified in clause (iv) or (v) in the judgment of the Dealer makes it impracticable or
inadvisable to proceed with the offering or the delivery of the Note on the terms and in
the manner contemplated in the Private Placement Memorandum, and
	 
	 	(e)	 	on or after the date of such agreement, (i) no downgrading shall have occurred in the
rating accorded the Issuer’s debt securities by any nationally recognized statistical
rating organization and (ii) no such organization shall have publicly announced that it has
under surveillance or review, with possible negative implications, its rating of any of the
Issuer’s debt securities.

“New York Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in New York are generally authorized or obligated by law or
executive order to close.

29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]