Document:

exv4w2

 

Exhibit 4.2

(Face of Note)

          THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE SUPPLEMENTAL INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE
TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.02 OF THE
SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART
PURSUANT TO SECTION 2.02(a) OF THE SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE BASE INDENTURE
AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR
WRITTEN CONSENT OF THE COMPANY.

          UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

 

CUSIP 855244 AC3

6.250% Senior Notes due 2017

			
	No. _____
	 	$________

STARBUCKS CORPORATION

promises
to pay to CEDE & CO. or registered assigns, the principal sum of ____________________________________________________ on August 15, 2017.

Interest Payment Dates: February 15 and August 15

Record Dates: February 1 and August 1

Dated: August 23, 2007

	 	 	 	 	 
	 	STARBUCKS CORPORATION 

 	 
	 	By:  	 	 
	 	 	Name:  	Troy Alstead 	 
	 	 	Title:  	senior vice president, Finance 	 
	 

Date of Authentication: August 23, 2007

This is one of the Global

Notes referred to in the

within-mentioned Supplemental Indenture:

Dated: August 23, 2007

DEUTSCHE BANK TRUST COMPANY AMERICAS

BY DEUTSCHE BANK NATIONAL TRUST COMPANY

as Trustee

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 

(Back of Note)

6.250% Senior Notes due 2017

          Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     1. INTEREST. Starbucks Corporation, a Washington corporation (the “Company”), promises
to pay interest on the principal amount of this Note at 6.250% per annum from the date hereof until
maturity. The Company will pay interest semi-annually on February 15 and August 15 of each year,
or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest will
accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest
Payment Date will be February 15, 2008. The Company will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to the
then applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest at the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

     2. METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest)
to the Persons who are registered Holders of Notes at the close of business on the February 1 or
August 1 next preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in Section 2.13 of the
Base Indenture with respect to defaulted interest. Principal, premium, if any, and interest on the
Notes will be payable at the office or agency of the Paying Agent and Registrar within the Borough
of Manhattan in the City of New York or, at the option of the Company, payment of interest may be
made by check mailed to the Holders of the Notes at their respective addresses set forth in the
register of Holders of Notes; provided that all payments of principal, premium and interest with
respect to Notes the Holders of which have given wire transfer instructions to the Trustee will be
required to be made by wire transfer of immediately available funds to the accounts specified by
the Holders thereof. Such payment will be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts.

     3. PAYING AGENT AND REGISTRAR. Initially, Deutsche Bank Trust Company Americas, the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying
Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in
any such capacity.

     4. INDENTURE. This Note is one of a duly authenticated series of securities of the Company
issued and to be issued in one or more series under an indenture (the “Base Indenture”), dated as
of August 23, 2007 between the Company and the Trustee, as amended by the Supplemental Indenture
(the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), dated as of
August 23, 2007, between the Company and the Trustee. The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are subject to all such terms,
and Holders are referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the Base Indenture, the
provisions of the Note will govern and be controlling, and to the extent any provision of the Notes
conflicts with the Supplemental Indenture, the provisions of the Supplemental Indenture will govern
and be controlling, and to the extent

 

 

any provision of the Base Indenture conflicts with the express provisions of the Supplemental
Indenture, the provisions of the Supplemental Indenture will govern and be controlling. The
Company will be entitled to issue Additional Notes pursuant to Section 2.03 of the Supplemental
Indenture.

     5. OPTIONAL REDEMPTION.

          At any time prior to August 15, 2017, the Company may, on any one or more occasions,
redeem, in whole or in part, at a redemption price equal to the greater of the following amounts,
plus, in each case, accrued and unpaid interest, if any, on the principal amount of the Notes being
redeemed to the date of redemption or purchase (“Redemption Date”):

          100% of the aggregate principal amount of the Notes to be redeemed; or

     the sum of the present value at such Redemption Date of (1) the principal amount of the
Notes on the Redemption Date plus (2) all required remaining scheduled interest payments due
on such Notes (but not including any portion of such payments of interest accrued to the
Redemption Date) through August 15, 2017 computed using a discount rate equal to the
Adjusted Treasury Rate plus 25 basis points.

          Calculation of the foregoing shall be made by the Company or on the Company’s behalf by such
Person as the Company shall designate; provided, however, that such calculation shall not be a duty
or obligation of the Trustee.

          On and after the Redemption Date, interest will cease to accrue on the Notes or portions
thereof called for redemption as long as the Company has deposited with the Paying Agent funds in
satisfaction of the applicable redemption price.

     6. MANDATORY REDEMPTION. Except as set forth in paragraph 7, the Company shall not be
required to make mandatory redemption payments with respect to the Notes.

     7. REPURCHASE AT OPTION OF HOLDER.

          Upon the occurrence of a Change of Control Triggering Event, the Company will be required
to offer to purchase all of the outstanding Notes at a purchase price equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase.

     8. NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its
registered address. No Notes of a principal amount of $2,000 or less shall be redeemed in part.

     9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000. Notes may be transferred or exchanged as
provided in the Supplemental Indenture. The Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and the Company may
require a Holder to pay any taxes and fees required by law or permitted by the Supplemental
Indenture. The Company need not exchange or transfer any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the
Company need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and the corresponding
Interest Payment Date.

 

 

     10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

     11. AMENDMENT, SUPPLEMENT AND WAIVER. The Base Indenture may be amended as provided therein.
Subject to certain exceptions, the Supplemental Indenture or the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal amount of the
Notes then outstanding, including, without limitation, consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Notes, voting as a single class, and compliance
with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes, including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer for, Notes, voting as
a single class. Without the consent of any Holder of a Note, the Supplemental Indenture or the
Notes may be amended or supplemented (i) to cure any ambiguity, defect or inconsistency; (ii) to
provide for uncertificated Notes in addition to or in place of certificated Notes; (iii) to provide
for the assumption of the Company’s obligations to Holders of the Notes in case of a merger or
consolidation or sale of all or substantially all of the Company’s assets; (iv) to make any change
that would provide any additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Supplemental Indenture of any such Holder; (v) to
comply with the requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the Trust Indenture Act; (vi) to provide for the issuance of Additional Notes in
accordance with the Supplemental Indenture; or (vii) to evidence and provide for the acceptance of
appointment by a successor trustee with respect to the Notes.

     12. DEFAULTS AND REMEDIES. An “EVENT OF DEFAULT” occurs if: (i) default for a period of 30
days in the payment when due of interest on the Notes; (ii) default in the payment when due of
principal of or premium, if any, on the Notes; (iii) the Company fails for 90 days after receipt of
notice to the Company to comply with any covenant or warranty of the Company in the Indenture; or
(iv) certain events of bankruptcy or insolvency occur with respect to the Company or any Material
Subsidiary.

          If any Event of Default occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the then outstanding Notes may declare all the Notes to be due and
payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain
events of bankruptcy or insolvency with respect to the Company or any Material Subsidiary, all
outstanding Notes will become due and payable without further action or notice. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes
notice of any continuing Default or Event of Default if it determines that withholding notice is in
their interest, except a Default or Event of Default relating to the payment of principal, premium
or interest. The Holders of a majority in aggregate principal amount of the Notes then outstanding
by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing
Default or Event of Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of interest on, or the principal of, the Notes. The Company is
required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Company is required no later than five days after becoming aware of any Default or Event of
Default to deliver to the Trustee a statement specifying such Default or Event of Default.

 

 

     13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any other capacity,
may make loans to, accept deposits from, and perform services for the Company or its Affiliates,
and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

     14. NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator or stockholder,
of the Company, as such, will not have any liability for any obligations of the Company under the
Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations
or their creation. Each Holder of Notes by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance of the Notes.

     15. AUTHENTICATION. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     16. ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     17. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes
and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon. The Company will furnish to any Holder upon written request and without
charge a copy of the Base Indenture and the Supplemental Indenture. Requests may be made to:

Starbucks Corporation

2401 Utah Avenue South

Seattle, Washington 98134

Facsimile No.: (206) 318-1045

Attention: General Counsel

 

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:_____________________________________________________

                                                                               
           (Insert assignee’s legal name)

 
 (Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint ____________________________________________________________________________________
to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date:_______________________

	 	 	 	 	 
	 
	 	Your Signature:	 	 
	 
	 	 	 
	 
	 	 	 	          (sign exactly as your name appears 
	 
	 	 	 	          on the face of this senior note)

	 	 	 	 	 
	 
	 	Tax Identification No:	 	 
	 
	 	 	 
	 
	 	Signature Guarantee:	 	 
	 
	 	 	 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

 

Option of Holder to Elect Purchase

          If you want to elect to have this Note purchased by the Company pursuant to Section 4.02 of
the Supplemental Indenture, check the box below:

	 	 	 
	 o	 	Section 4.02

          If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 4.02 of the Supplemental Indenture, state the amount you elect to have purchased: $

Date: _____________________________

	 	 	 	 	 
	 
	 	Your Signature:	 	 
	 
	 	 	 
	 
	 	 	 	          (sign exactly as your name appears
	 
	 	 	 	           on the face of this senior note)

	 	 	 	 	 
	 
	 	Tax Identification No: 	 	 
	 
	 	 	 
	 
	 
	 	Signature Guarantee:	 	 
	 
	 	 	 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.exv4w3

 

Exhibit 4.3

 

STARBUCKS CORPORATION

$550,000,000

6.250% SENIOR NOTES DUE 2017

 

SUPPLEMENTAL INDENTURE

Dated as of August 23, 2007

To

INDENTURE

Dated as of August 23, 2007

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

Trustee

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 
	 
	 	 Article 1.	 	 
	 
	 	 DEFINITIONS AND INCORPORATION	 	 
	 
	 	  BY REFERENCE	 	 
	 
	 	 	 	 
	Section 1.01
	 	Relationship with Base Indenture.	 	1
	 
	 	 	 	 
	Section 1.02
	 	Definitions.	 	2
	 
	 	 	 	 
	Section 1.03
	 	Other Definitions.	 	7
	 
	 	 	 	 
	 
	 	  Article 2.	 	 
	 
	 	  THE NOTES	 	 
	 
	 	 	 	 
	Section 2.01
	 	Form and Dating.	 	7
	 
	 	 	 	 
	Section 2.02
	 	Transfer and Exchange.	 	8
	 
	 	 	 	 
	Section 2.03
	 	Issuance of Additional Notes.	 	12
	 
	 	 	 	 
	 
	 	  Article 3.	 	 
	 
	 	  REDEMPTION AND PREPAYMENT	 	 
	 
	 	 	 	 
	Section 3.01
	 	Notice of Redemption.	 	12
	 
	 	 	 	 
	Section 3.02
	 	Notes Redeemed in Part.	 	12
	 
	 	 	 	 
	Section 3.03
	 	Optional Redemption.	 	12
	 
	 	 	 	 
	Section 3.04
	 	Mandatory Redemption.	 	13
	 
	 	 	 	 
	 
	 	  Article 4.	 	 
	 
	 	PARTICULAR COVENANTS	 	 
	 
	 	 	 	 
	Section 4.01
	 	Liens.	 	13
	 
	 	 	 	 
	Section 4.02
	 	Offer to Purchase Upon Change of Control Triggering Event.	 	14
	 
	 	 	 	 
	Section 4.03
	 	Sale and Lease-Back Transactions.	 	16
	 
	 	 	 	 
	 
	 	  Article 5.	 	 
	 
	 	  SUCCESSORS	 	 
	 
	 	 	 	 
	Section 5.01
	 	Merger, Consolidation or Sale of Assets.	 	17

i

 

	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 
	 
	 	  Article 6.	 	 
	 
	 	  DEFAULTS AND REMEDIES	 	 
	 
	 	 	 	 
	Section 6.01
	 	Events of Default.	 	17
	 
	 	 	 	 
	 
	 	  Article 7.	 	 
	 
	 	 MISCELLANEOUS	 	 
	 
	 	 	 	 
	Section 7.01
	 	Trust Indenture Act Controls.	 	18
	 
	 	 	 	 
	Section 7.02
	 	Governing Law.	 	18
	 
	 	 	 	 
	Section 7.03
	 	Successors.	 	18
	 
	 	 	 	 
	Section 7.04
	 	Severability.	 	19
	 
	 	 	 	 
	Section 7.05
	 	Counterpart Originals.	 	19
	 
	 	 	 	 
	Section 7.06
	 	Table of Contents, Headings, Etc.	 	19

EXHIBITS

			
	Exhibit A	 	FORM OF NOTE

ii

 

          SUPPLEMENTAL INDENTURE dated as of August 23, 2007 by and among Starbucks Corporation, a
Washington corporation (the “Company”), and Deutsche Bank Trust Company Americas, a New York
banking corporation, as trustee (the “Trustee”).

          The Company has heretofore executed and delivered to the Trustee an indenture, dated as of
August 23, 2007 (the “Base Indenture”, and together with this Supplemental Indenture, the
“Indenture”), providing for the issuance from time to time of one or more series of the Company’s
securities.

          The Company desires and has requested the Trustee pursuant to Section 9.01 of the Base
Indenture to join with it in the execution and delivery of this Supplemental Indenture in order to
supplement the Base Indenture as, and to the extent set forth herein to provide for the issuance
and the terms of the Notes (as defined below).

          Section 9.01 of the Base Indenture provides that the Company and the Trustee, without the
consent of any holders of the Company’s Securities, may amend or waive certain terms and conditions
in the Base Indenture as permitted by Sections 2.01 and 2.02 thereof.

          The execution and delivery of this Supplemental Indenture has been duly authorized by a
resolution of the Board of Directors of the Company or a duly authorized committee thereof.

          All conditions and requirements necessary to make this Supplemental Indenture a valid, binding
and legal instrument in accordance with its terms have been performed and fulfilled by the parties
hereto and the execution and delivery thereof have been in all respects duly authorized by the
parties hereto.

          The Company and the Trustee agree as follows for the benefit of each other and for the equal
and ratable benefit of the Holders (as defined herein) of the 6.250% Senior Notes due 2017 (the
“Notes”):

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

     Section 1.01 Relationship with Base Indenture.

          The terms and provisions contained in the Base Indenture will constitute, and are hereby
expressly made, a part of this Supplemental Indenture and the Company and the Trustee, by their
execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions
and to be bound thereby. However, to the extent any provision of the Base Indenture conflicts with
the express provisions of this Supplemental Indenture, the provisions of this Supplemental
Indenture will govern and be controlling.

          The Trustee accepts the amendment of the Base Indenture effected by this Supplemental
Indenture and agrees to execute the trust created by the Base Indenture as hereby amended, but only
upon the terms and conditions set forth in this Supplemental Indenture, including the terms and
provisions defining and limiting the liabilities and responsibilities of the Trustee in the
performance of the trust created by the Base Indenture, and without limiting the generality of the
foregoing, the Trustee will not be responsible in any manner whatsoever for or with respect to any
of the recitals or statements contained herein, all of which recitals or statements are made solely
by the Company, or for or with respect to (1) the validity or sufficiency of this Supplemental
Indenture or any of the terms or provisions hereof, (2) the proper authorization hereof by the
Company, (3) the due execution hereof by the Company or (4) the consequences (direct or indirect
and whether deliberate or inadvertent) of any amendment herein provided for, and the Trustee makes
no representation with respect to any such matters.

1

 

     Section 1.02 Definitions. Capitalized terms used herein without definition shall have the
respective meanings set forth in the Base Indenture. The following terms have the meanings
given to them in this Section 1.02:

          “Additional Notes” means any Notes (other than the Initial Notes) issued under this
Supplemental Indenture in accordance with Sections 2.03 hereof, as part of the same series as the
Initial Notes.

          “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date.

          “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary that apply to such
transfer or exchange.

          “Attributable Debt” with regard to a Sale and Lease-Back Transaction with respect to any
Principal Property means, at the time of determination, the lesser of (A) the present value of the
total net amount of lease payments required to be paid under such lease during the remaining term
thereof (after deducting the amount of rent to be received under non- cancellable subleases and
including any period for which such lease has been extended), discounted at the greater of (x) the
weighted average interest rate per annum borne by the Notes or (y) the interest rate inherent in
such lease, in each case, as determined by the Chief Financial Officer, Treasurer or Controller of
the Company, compounded semi-annually, or (B) the sale price for the Principal Property so sold and
leased multiplied by a fraction the numerator of which is the remaining portion of the base term of
the lease included in such Sale and Lease-Back Transaction and the denominator of which is the base
term of such lease. In the case of any lease which is terminable by the lessee upon the payment of
a penalty, such net amount shall be the lesser of (i) the net amount determined assuming
termination upon the first date such lease may be terminated (in which case the net amount shall
also include the amount of the penalty, but shall not include any rent that would be required to be
paid under such lease subsequent to the first date upon which it may be so terminated) or (ii) the
net amount determined assuming no such termination.

          For purposes of determining such Attributable Debt, “lease payments” are the aggregate amount
of the rent payable by the lessee with respect to the applicable period, after excluding amounts
required to be paid on account of maintenance and repairs, water rates and similar utility charges.
If and to the extent the amount of any lease payment during any future period is not definitely
determinable under the lease in question, the amount of such lease payment will be estimated in
such reasonable manner as the Chief Financial Officer, Treasurer or Controller of the Company may
in good faith determine.

          “Base Indenture” means has the meaning set forth in the preamble to this Supplemental
Indenture, as amended, supplemented or otherwise modified from time to time in accordance with the
terms thereof.

          “Below Investment Grade Rating Event” means the Notes are rated below an Investment Grade
Rating by each of the Rating Agencies on any date from the date of the public notice of an
arrangement that could result in a Change of Control until the end of the 60-day period following
public notice of the occurrence of the Change of Control (which 60-day period shall be extended so
long as the rating of the Notes is under publicly announced consideration for possible downgrade by
any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising
by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a
particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event
for purposes of the definition of

2

 

Change of Control Triggering Event hereunder) if the Rating Agencies making the reduction in
rating to which this definition would otherwise apply do not announce or publicly confirm or inform
the Trustee in writing at its request that the reduction was the result, in whole or in part, of
any event or circumstance comprised of or arising as a result of, or in respect of, the applicable
Change of Control (whether or not the applicable Change of Control shall have occurred at the time
of the Below Investment Grade Rating Event).

          “Capital Stock” means:

          (1) with respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not voting) of
corporate stock, including each class of Common Stock and Preferred Stock of such Person;
and

          (2) with respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person.

          “Change of Control” means the occurrence of one or more of the following events:

          (1) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the Company to any Person
or group of related Persons for purposes of Section 13(d) of the Exchange Act (a “Group”),
together with any Affiliates thereof (whether or not otherwise in compliance with the
provisions of the Indenture);

          (2) the approval by the holders of Capital Stock of the Company of any plan or proposal
for the liquidation or dissolution of the Company (whether or not otherwise in compliance
with the provisions of the Indenture);

          (3) any Person or Group shall become the owner, directly or indirectly, beneficially or
of record, of shares representing more than 50% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock of the Company; or

          (4) during any period of 24 consecutive months, a majority of the members of the Board
of Directors or other equivalent governing body of the Company cease to be composed of
individuals (i) who were members of such Board of Directors or equivalent governing body on
the first day of such period, (ii) whose election or nomination to such Board of Directors
or equivalent governing body was approved by individuals referred to in clause (i) above
constituting at the time of such election or nomination at least a majority of such Board of
Directors or equivalent governing body or (iii) whose election or nomination to such Board
of Directors or other equivalent governing body was approved by individuals referred to in
clauses (i) and (ii) above constituting at the time of such election or nomination at least
a majority of such Board of Directors or equivalent governing body (excluding, in the case
of both clause (ii) and clause (iii), any individual whose initial nomination for, or
assumption of office as, a member of such Board of Directors or equivalent governing body
occurs as a result of an actual or threatened solicitation of proxies or consents for the
election or removal of one or more directors by any person or group other than a
solicitation for the election of one or more directors by or on behalf of the Board of
Directors).

          Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control
if (i) the Company becomes a wholly owned Subsidiary of a holding company and (ii) the holders of
the

3

 

voting stock of such holding company immediately following such transaction are substantially
the same as the holders of the Company’s voting stock immediately prior to such transaction.

          “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

          “Common Stock” of any Person means any and all shares, interests or other participations in,
and other equivalents (however designated and whether voting or non-voting) of, such Person’s
common stock, and includes, without limitation, all series and classes of such Common Stock.

          “Comparable Treasury Issue” means the United States Treasury security selected by the Company
as having an actual or interpolated maturity comparable to the remaining term of the Notes to be
redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of the Notes.

          “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the
Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee is provided fewer than
four such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer
Quotations.

          “Consolidated Net Tangible Assets” means, as of any date on which the Company effects a
transaction requiring such Consolidated Net Tangible Assets to be measured hereunder, the aggregate
amount of assets (less applicable reserves) after deducting therefrom: (a) all current liabilities,
except for current maturities of long-term debt and obligations under capital leases; and (b)
intangible assets, to the extent included in said aggregate amount of assets, all as set forth in
the Company’s most recent consolidated balance sheet and computed in accordance with GAAP applied
on a consistent basis.

          “Credit Agreement” means the Credit Agreement, dated as of August 12, 2005, among the Company,
as borrower, Bank of America, N.A., as administrative agent, swingline lender and L/C issuer,
Wachovia Bank, National Association and Citibank, N.A., as co-documentation agents, Wells Fargo
Bank, N.A., as syndication agent, and the other lenders party thereto, including any related
letters of credit, notes, guarantees, collateral documents, instruments and agreements executed in
connection therewith, in each case, as amended, restated, modified, renewed, refunded, replaced or
refinanced from time to time by one or more credit facilities, in which case, the credit agreement
or similar agreement together with all other documents and instruments related thereto shall
constitute the “Credit Agreement” under the Indenture, whether with the same or different agents
and lenders.

          “Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.02 hereof, substantially in the form of Exhibit A hereto except
that such Note will not bear the Global Note Legend.

          “Depositary” means, with respect to the Notes, DTC and any successor thereto designated as
depositary for the Notes pursuant to Section 2.02 of this Supplemental Indenture.

          “Funded Debt” means Indebtedness, whether or not contingent, for money borrowed (including all
obligations evidenced by bonds, debentures, notes or similar instruments) owed or guaranteed by the
Company or any consolidated Subsidiary, and any of the debt which under GAAP would appear as debt
on the consolidated balance sheet of the Company.

4

 

          “Global Note Legend” means the legend set forth in Section 2.02(f), which is required to be
placed on all Global Notes issued under this Supplemental Indenture.

          “Global Notes” means, individually and collectively, each of the Global Notes, in the form of
Exhibit A hereto issued in accordance with Section 2.01 hereof.

          “Holder” means a Person in whose name a Note is registered.

          “Indenture” means the Base Indenture, as supplemented by this Supplemental Indenture,
governing the Notes, in each case, as amended, supplemented or restated from time to time.

          “Indirect Participant” means a Person who holds a beneficial interest in a Global Note through
a Participant.

          “Initial Notes” means the first $550,000,000 aggregate principal amount of Notes issued under
this Supplemental Indenture on the date hereof.

          “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by S&P.

          “Material Subsidiary” means each Subsidiary of the Company that meets either of the following
tests: (a) its assets equal or exceed three percent of total assets of the Company and its
Subsidiaries on a consolidated basis, or (b) its revenues equal or exceed three percent of the
total revenues of the Company and its Subsidiaries on a consolidated basis; provided that (i) if
the Subsidiaries that meet either of the tests in (a) or (b), when combined with revenues generated
or assets owned directly by the Company (excluding any assets located or revenues generated at the
Subsidiary level), aggregate less than 90% of the total assets or total revenues of the Company and
its Subsidiaries on a consolidated basis, the Company shall designate additional Subsidiaries to
constitute Material Subsidiaries until such threshold is met, and (ii) once a Subsidiary is deemed
a Material Subsidiary, whether by virtue of the tests in (a) or (b) above, or a result of
designation pursuant to part (i) of this proviso, such Subsidiary shall continue to constitute a
Material Subsidiary throughout the term of the Notes.

          “Moody’s” means Moody’s Investors Service, Inc.

          “Nonrecourse Obligations” means Indebtedness or lease payment obligations related to (i) the
acquisition of a Principal Property not previously owned by the Company or any Subsidiary or (ii)
the financing of a project involving the development or expansion of any Principal Property owned
by the Company or any Subsidiary, as to which the obligee with respect to such Indebtedness or
obligation has no recourse to the Company or any Subsidiary or any of the Company’s or its
Subsidiaries’ assets other than such Principal Property so acquired, developed or expanded, as
applicable.

          “Notes” has the meaning assigned to it in the preamble to this Supplemental Indenture. The
Initial Notes and the Additional Notes will be treated as a single class for all purposes under
this Supplemental Indenture, and unless the context otherwise requires, all references to the Notes
will include the Initial Notes and any Additional Notes.

          “Participant” means, with respect to the Depositary, a Person who has an account with the
Depositary.

          “Person” has the meaning set forth in the Indenture and includes a “person” as used in Section
13(d)(3) of the Exchange Act.

5

 

          “Preferred Stock” of any Person means any Capital Stock of such Person that has preferential
rights to any other Capital Stock of such Person with respect to dividends or redemptions or upon
liquidation.

          “Principal Property” means any individual facility or real property, or portion thereof, owned
or hereafter acquired by the Company or any Subsidiary and located within the United States of
America, which, in the good faith opinion of the Company’s Chief Executive Officer, President, or
Chief Financial Officer, is of material importance to the total business conducted by the Company
and its Subsidiaries taken as a whole, provided that no such individual facility or property will
deemed of material importance if its gross book value (excluding therefrom any equipment and before
deducting accumulated depreciation) is less than 1.0% of the Consolidated Net Tangible Assets of
the Company. With respect to any Sale and Lease-Back Transaction or series of related Sale and
Lease-Back Transactions, the determination of whether any property is a Principal Property shall be
determined by reference to all properties affected by such transaction or series of transactions.
As of the date hereof, the only Principal Properties of the Company consists of the Carson Valley
Roasting Plant located at 2525 Starbucks Way, Minden, Nevada and the York Roasting Plant, located
at 3000 Espresso Way, York, Pennsylvania.

          “Rating Agencies” means (1) each of Moody’s and S&P; and (2) if either Moody’s or S&P ceases
to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of
the Company’s control, a “nationally recognized statistical rating organization” within the meaning
of Rule 15c3-1(e)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a
resolution of its Board of Directors) as a replacement agency for Moody’s or S&P, or both of them,
as the case may be.

          “Reference Treasury Dealer” means (i) each of Goldman, Sachs & Co., Banc of America Securities
LLC and Citigroup Global Markets Inc., and their respective successors; provided, however, that if
any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer"), the Company shall substitute another Primary Treasury Dealer and (ii)
any other Primary Treasury Dealer selected by the Company.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in writing to the Company
and the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third
business day preceding such Redemption Date.

          “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

          “Sale and Lease-Back Transaction” means any arrangement with any Person providing for the
leasing by the Company or any Subsidiary of any Principal Property, whether now owned or hereafter
acquired, which Principal Property has been or is to be sold or transferred by the Company or such
Subsidiary to such Person and which lease is required by GAAP to be capitalized on the balance
sheet of such lessee.

          “Subsidiary” means any corporation, limited liability company or other similar type of entity
in which the Company and/or one or more of its subsidiaries together own voting stock, membership
interests or other capital securities having the power to elect a majority of the Board of
Directors or similar governing body of such corporation, limited liability company or other similar
type of entity, directly or indirectly. For the purposes of this definition, “voting stock” means
stock or other capital securities which ordinarily have voting power for the election of directors
or similar governing body,

6

 

whether at all times or only so long as no senior class of stock or other capital securities
have such voting power by reason of any contingency.

          “Supplemental Indenture” means this Supplemental Indenture, dated as of the date hereof, by
and among the Company and the Trustee, governing the Notes, as amended, supplemented or otherwise
modified from time to time in accordance with the Base Indenture and the terms hereof.

     Section 1.03 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Change of Control Date”
	 	 	4.02	 
	“Change of Control Offer”
	 	 	4.02	 
	“Change of Control Payment Date”
	 	 	4.02	 
	“Change of Control Purchase Price”
	 	 	4.02	 
	“DTC”
	 	 	2.02	 
	“Event of Default”
	 	 	6.01	 
	“Mortgage”
	 	 	4.01	 
	“Redemption Date”
	 	 	3.03	 

ARTICLE 2.

THE NOTES

     Section 2.01 Form and Dating.

          (a) General. The Notes and the Trustee’s certificate of authentication will be substantially
in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements
required by law, stock exchange rule or usage. Each Note will be dated the date of its
authentication. The Notes will be in denominations of $2,000 with integral multiples of $1,000
thereof.

          The terms and provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Supplemental Indenture and the Company and the Trustee, by their execution and
delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Note conflicts with the express
provisions of the Base Indenture, the provisions of the Note will govern and be controlling, and to
the extent any provision of the Note conflicts with the express provisions of this Supplemental
Indenture, the provisions of this Supplemental Indenture will govern and be controlling.

          (b) Global Notes. Notes issued in global form will be substantially in the form of
Exhibit A attached hereto (including the Global Note Legend thereon). Notes issued in
definitive form will be substantially in the form of Exhibit A attached hereto (but without
the Global Note Legend thereon). Each Global Note will represent such of the outstanding Notes as
will be specified therein and each will provide that it will represent the aggregate principal
amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal
amount of outstanding Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the
amount of any increase or decrease in the aggregate principal amount of outstanding Notes
represented thereby will be made by the Trustee or the Custodian, at the direction of the Trustee,
in accordance with instructions given by the Holder thereof as required by Section 2.02 hereof.

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     Section 2.02 Transfer and Exchange.

          (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a whole
except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged
by the Company for Definitive Notes if:

          (1) the Company delivers to the Trustee notice from the Depositary that (A) it is
unwilling or unable to continue to act as Depositary and a successor Depositary is not
appointed by the Company within 90 days after the date of such notice from the Depositary or
(B) it is no longer a clearing agency registered under the Exchange Act; or

          (2) the Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and delivers a written notice to such
effect to the Trustee.

          Upon the occurrence of either of the preceding events in (1) or (2) above, Definitive Notes
will be issued in such names and in any approved denominations as the Depositary will instruct the
Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.08 and 2.11 of the Base Indenture. Every Note authenticated and delivered in exchange
for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.02 or Section
2.08 or 2.11 of the Base Indenture, will be authenticated and delivered in the form of, and will
be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in
this Section 2.02(a); however, beneficial interests in a Global Note may be transferred and
exchanged as provided in Sections 2.02(b), (c) or (g) hereof.

          (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes will be effected through the Depositary, in
accordance with the provisions of this Supplemental Indenture and the Applicable Procedures.
Transfers of beneficial interests in the Global Notes also will require compliance with either
subparagraph (1) or (2) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

          (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Global Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in a Global Note. No written orders or instructions will be required to
be delivered to the Registrar to effect the transfers described in this Section 2.02(b)(1).

          (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.02(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:

               (A) (i) a written order from a Participant or an Indirect Participant given to
the Depositary in accordance with the Applicable Procedures directing the Depositary
to credit or cause to be credited a beneficial interest in another Global Note in an
amount equal to the beneficial interest to be transferred or exchanged; and

                    (ii) instructions given in accordance with the Applicable Procedures
containing information regarding the Participant account to be credited with such
increase.

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          Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests
in Global Notes contained in this Supplemental Indenture and the Notes or otherwise applicable
under the Securities Act, the Trustee will adjust the principal amount of the relevant Global
Note(s) pursuant to Section 2.02(g) hereof.

          (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

          If any holder of a beneficial interest in a Global Note proposes to exchange such beneficial
interest for a Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set
forth in Section 2.02(b)(2) hereof, the Trustee will cause the aggregate principal amount of the
applicable Global Note to be reduced accordingly pursuant to Section 2.02(g) hereof, and the
Company will execute and the Trustee will authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.02(c) will be registered in such name
or names and in such authorized denomination or denominations as the holder of such beneficial
interest requests through instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the Persons
in whose names such Notes are so registered.

          (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

          A Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global
Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a
beneficial interest in a Global Note at any time. Upon receipt of a request for such an exchange
or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause to be
increased the aggregate principal amount of one of the Global Notes.

          If any such exchange or transfer from a Definitive Note to a beneficial interest is effected
pursuant to the previous paragraph at a time when a Global Note has not yet been issued, the
Company will issue and, upon receipt of the Company’s order, the Trustee will authenticate one or
more Global Notes in an aggregate principal amount equal to the principal amount of Definitive
Notes so transferred.

          A Holder of Definitive Notes may transfer such Notes to a Person who takes delivery thereof in
the form of a Definitive Note.

          (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder
of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.02(e), the
Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration
of transfer or exchange, the requesting Holder will present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by his attorney, duly authorized in
writing. In addition, the requesting Holder will provide any additional certifications, documents
and information, as applicable, required pursuant to the following provisions of this Section
2.02(e).

          (f) Legends. The following legends will appear on the face of all Global Notes issued under
this Supplemental Indenture unless specifically stated otherwise in the applicable provisions of
this Supplemental Indenture.

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE SUPPLEMENTAL
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS

9

 

NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE
MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.02 OF THE
SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
PART PURSUANT TO SECTION 2.02(a) OF THE SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL
NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF
THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER
STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

          (g) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note
has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be
returned to or retained and canceled by the Trustee in accordance with Section 2.12 of the Base
Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial
interest in another Global Note or for Definitive Notes, the principal amount of Notes represented
by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note
by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and
if the beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note will be
increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

          (h) General Provisions Relating to Transfers and Exchanges.

          (1) To permit registrations of transfers and exchanges, the Company will execute and
the Trustee will authenticate Global Notes and Definitive Notes upon the Company’s order or
at the Registrar’s request.

10

 

          (2) No service charge will be made to a holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to Section 4.02
hereof and Sections 2.11, 3.06 and 9.05 of the Base Indenture).

          (3) The Registrar will not be required to register the transfer of or exchange any Note
selected for redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part.

          (4) All Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes will be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this Supplemental
Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of
transfer or exchange.

          (5) The Company will not be required:

          (A) to issue, to register the transfer of or to exchange any Notes during a
period of 15 days before the day of any selection of Notes for redemption under
Section 3.02 of the Base Indenture and ending at the close of business on the day of
selection;

          (B) to register the transfer of or to exchange any Note so selected for
redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part; or

          (C) to register the transfer of or to exchange a Note between a record date
and the next succeeding interest payment date.

          (6) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and none of the Trustee,
any Agent or the Company will be affected by notice to the contrary.

          (7) The Trustee will authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.03 of the Base Indenture.

          (8) All certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.02 to effect a registration of transfer or
exchange may be submitted by facsimile.

          (9) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Supplemental Indenture or
under applicable law with respect to any transfer of any interest in any Note other than to
require delivery of such certificates and other documentation or evidence as are expressly
required by, and to do so if and when expressly required by the terms of, this Supplemental
Indenture, and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

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          (10) Neither the Trustee nor any Agent shall have any responsibility for any actions
taken or not taken by the Depositary.

     Section 2.03 Issuance of Additional Notes.

          The Company will be entitled, upon delivery of an Officer’s Certificate and an Opinion of
Counsel, to issue Additional Notes under this Supplemental Indenture which will have identical
terms as the Initial Notes issued on the date hereof, other than with respect to the date of
issuance and issue price. The Initial Notes issued on the date hereof and any Additional Notes
issued will be treated as a single class for all purposes under this Supplemental Indenture.

          With respect to any Additional Notes, the Company will set forth in a resolution of its Board
of Directors and an Officer’s Certificate, a copy of each which will be delivered to the Trustee,
the following information:

          (a) the aggregate principal amount of such Additional Notes to be authenticated and delivered
pursuant to this Supplemental Indenture; and

          (b) the issue price, the issue date and the CUSIP number of such Additional Notes.

ARTICLE 3.

REDEMPTION AND PREPAYMENT

     Section 3.01 Notice of Redemption.

          The Company will deliver to the Trustee, at least 45 days prior to the redemption date (or
such shorter period as the Trustee in its sole discretion may allow), an Officer’s Certificate
requesting that the Trustee give such notice and setting forth the information to be stated in such
notice as provided in Section 3.03 of the Base Indenture.

     Section 3.02 Notes Redeemed in Part.

          No Notes of $2,000 or less can be redeemed in part.

     Section 3.03 Optional Redemption.

          At any time prior to August 15, 2017, the Company may, on any one or more occasions, redeem,
in whole or in part, at a redemption price equal to the greater of the following amounts, plus, in
each case, accrued and unpaid interest, if any, on the principal amount of the Notes being redeemed
to the date of redemption or purchase (“Redemption Date”):

          (i) 100% of the aggregate principal amount of the Notes to be redeemed; or

          (ii) the sum of the present value at such Redemption Date of (1) the principal amount
of the Notes on the Redemption Date plus (2) all required remaining scheduled interest
payments due on such Notes (but not including any portion of such payments of interest
accrued to the Redemption Date) through August 15, 2017 computed using a discount rate equal
to the Adjusted Treasury Rate plus 25 basis points.

12

 

          Calculation of the foregoing shall be made by the Company or on the Company’s behalf by such
Person as the Company shall designate; provided, however, that such calculation shall not be a duty
or obligation of the Trustee.

          On and after the Redemption Date, interest will cease to accrue on the Notes or portions
thereof called for redemption as long as the Company has deposited with the Paying Agent funds in
satisfaction of the applicable redemption price.

     Section 3.04 Mandatory Redemption.

          Except as set forth in Section 4.02, the Company is not required to make any mandatory
redemption or sinking fund payments with respect to the Notes.

ARTICLE 4.

PARTICULAR COVENANTS

     Section 4.01 Liens.

          (a) The Company will not, and will not permit any of its Subsidiaries to, issue, incur,
create, assume or guarantee any Funded Debt secured by a mortgage, deed of trust, security
interest, pledge, lien, charge or other encumbrance (collectively, a “Mortgage”) upon any Principal
Property or upon any shares of stock or Indebtedness of any Subsidiary that owns any Principal
Property (whether such Principal Property, shares or Indebtedness are now existing or owed or
hereafter created or acquired) without in any such case effectively providing, concurrently with
the issuance, incurrence, creation, assumption or guaranty of any such Funded Debt, or the grant of
such Mortgage, that the Notes (together with, if the Company shall so determine, any other
Indebtedness of or guaranty by the Company or such Subsidiary ranking equally with the Notes) shall
be secured equally and ratably with (or, at the Company’s option, prior to) such Funded Debt;
provided that any Mortgage created for the benefit of the Holders of the Notes pursuant to this
provision shall provide by its terms that such Mortgage shall be automatically and unconditionally
released and discharged upon the release and discharge of the Mortgage that resulted in such
provision becoming applicable. The foregoing restriction, however, will not apply to each of the
following and therefore the following Mortgages (and the Funded Debt secured thereby), will be
excluded from any computation under subsection (b) of this Section 4.01 and Section 4.03(b):

          (1) Mortgages on property, shares of stock or Indebtedness or other assets of any
Person existing at the time such Person becomes a Subsidiary;

          (2) Mortgages on property, shares of stock or Indebtedness or other assets existing at
the time of acquisition thereof by the Company or a Subsidiary, or Mortgages thereon to
secure the payment of all or any part of the purchase price thereof or the cost of
construction, installation, renovation, improvement or development thereon or thereof, or
Mortgages on property, shares of stock or Indebtedness or other assets to secure any
Indebtedness incurred or guaranteed prior to, at the time of, or within 360 days after, the
latest of the acquisition thereof or, in the case of property, the completion of such
construction, installation, renovation, improvement or development or the commencement of
substantial commercial operation of such property for the purpose of financing all or any
part of the purchase price thereof, such construction, installation, renovation, improvement
or development;

          (3) Mortgages in favor of the Company or a Subsidiary to secure Funded Debt owing to
the Company or to a Subsidiary;

13

 

          (4) Mortgages existing on the date hereof;

          (5) Mortgages on property, shares of stock or Indebtedness or assets of a Person
existing at the time such Person is merged into or consolidated with the Company or a
Subsidiary or at the time of a sale, lease or other disposition of properties of such Person
as an entirety or substantially as an entirety to the Company or a Subsidiary;

          (6) Mortgages in favor of the United States of America or any state, territory or
possession thereof (or the District of Columbia), or any foreign government, or any
department, agency, instrumentality or political subdivision of the United States of America
or any state, territory or possession thereof (or the District of Columbia) or any foreign
government, to secure partial, progress, advance or other payments pursuant to any contract
or statute or to secure any Indebtedness incurred or guaranteed for the purpose of financing
all or any part of the purchase price or the cost of constructing or improving the property
subject to such Mortgages (including, but not limited to, Mortgages incurred in connection
with pollution control or industrial revenue bonds or similar financing);

          (7) Mortgages created in connection with a project financed with, and created to
secure, a Nonrecourse Obligation; or

          (8) extensions, renewals, refundings, or replacements, in whole of in part, of any
Mortgage referred to in the foregoing clauses; provided, however, that (A) the principal
amount of Funded Debt secured thereby shall not exceed the principal amount of Funded Debt,
plus any premium or fee payable in connection with any such extension, refunding or
replacement, so secured at the time of such extension, renewal, refunding or replacement and
(B) such extension, renewal, refunding, or replacement Mortgages will be limited to all or
part of the same property, shares of stock or Indebtedness or assets and improvement or
development thereon or thereof which secured the Indebtedness so secured at the time of such
extension, renewal, refunding or replacement.

          (b) Notwithstanding the restrictions set forth in the first sentence of the preceding
paragraph, the Company or any Subsidiary may issue, incur, create, assume or guarantee Funded Debt
secured by a Mortgage which would otherwise be subject to such restrictions, without equally and
ratably securing the Notes, provided that after giving effect thereto, the aggregate amount of all
Funded Debt so secured by Mortgages (not including Funded Debt secured by Mortgages permitted under
clauses (1) through (8) of the second sentence of paragraph (a) above) plus the aggregate amount
of all Attributable Debt in respect of Sale and Lease-Back Transactions relating to Principal
Properties (excluding any Attributable Debt permitted to be incurred pursuant to clauses (1)
through (8) of paragraph (b) of Section 4.03 hereof) does not exceed 15 percent of the Company’s
Consolidated Net Tangible Assets.

     Section 4.02 Offer to Purchase Upon Change of Control Triggering Event.

          (a) Upon the occurrence of a Change of Control Triggering Event (the date of such occurrence,
the “Change of Control Date”), each Holder shall have the right to require the Company to purchase
such Holder’s Notes in whole or in part at a purchase price (the “Change of Control Purchase
Price”) equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest, if
any, to the date of purchase (the “Change of Control Payment Date”), pursuant to and in accordance
with the offer described in this Section 4.02 (the “Change of Control Offer”).

14

 

          (b) Within 30 days following the Change of Control Date the Company shall send, by first class
mail, a notice to each Holder, with a copy to the Trustee, which notice shall govern the terms of
the Change of Control Offer. Such notice shall state:

          (i) that the Change of Control Offer is being made pursuant to this Section 4.02 and
that all Notes validly tendered will be accepted for payment;

          (ii) the Change of Control Purchase Price and the Change of Control Payment Date, which
shall be a Business Day that is no earlier than 30 days nor later than 60 days from the date
such notice is mailed, other than as may be required by law;

          (iii) that any Note not tendered will continue to accrue interest;

          (iv) that any Note accepted for payment pursuant to the Change of Control Offer shall
cease to accrue interest after the Change of Control Payment Date unless the Company shall
default in the payment of the Change of Control Purchase Price of the Notes and the only
remaining right of the Holder is to receive payment of the Change of Control Purchase Price
upon surrender of the Notes to the Paying Agent;

          (v) that Holders electing to have a portion of a Note purchased pursuant to a Change of
Control Offer may only elect to have such Note purchased in integral multiples of $1,000;

          (vi) that if a Holder elects to have a Note purchased pursuant to the Change of Control
Offer it will be required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to
the Paying Agent at the address specified in the notice prior to the close of business on
the third Business Day prior to the Change of Control Payment Date;

          (vii) that a Holder will be entitled to withdraw its election if the Company receives,
not later than the third Business Day preceding the Change of Control Payment Date, a
telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Notes such Holder delivered for purchase, and a statement that such
Holder is withdrawing its election to have such Note purchased; and

          (viii) that if Notes are purchased only in part a new Note of the same type will be
issued in a principal amount equal to the unpurchased portion of the Notes surrendered.

          (c) On or before the Change of Control Payment Date, the Company shall, to the extent lawful,
accept for payment, all Notes or portions thereof validly tendered pursuant to the Change of
Control Offer, and shall deliver to the Trustee an Officer’s Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the terms of this
Section 4.02. The Company, the Depositary or the Paying Agent, as the case may be, shall promptly
mail or deliver to each tendering Holder an amount equal to the purchase price of the Notes
tendered by such Holder and accepted by the Company for purchase, and the Company shall promptly
issue a new Note, and the Trustee, upon written request from the Company shall authenticate and
mail or deliver such new Note to such Holder, in a principal amount equal to any unpurchased
portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by
the Company to the Holder thereof.

          (d) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes pursuant to an offer hereunder. To the
extent the

15

 

provisions of any securities laws or regulations conflict with the provisions under this
Section 4.02, the Company shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations under this Section 4.02 by virtue thereof.

     Section 4.03 Sale and Lease-Back Transactions.

          (a) The Company will not, and will not permit any of its Subsidiaries to, enter into any Sale
and Lease-Back Transaction with respect to any Principal Property. The foregoing restriction,
however, will not apply to, and therefore there will be excluded from any computation under
subsection (b) below and under subsection (b) of Section 4.01, any Sale and Lease-Back Transaction
(and any Attributable Debt relating thereto) if:

          (1) the Company or a Subsidiary are permitted to created Funded Debt secured by a
Mortgage pursuant to any of clauses (1) through (8) inclusive under the second sentence of
subsection (a) of Section 4.01 on the Principal Property involved in such Sale and
Lease-Back Transaction, in an amount at least equal to the Attributable Debt with respect to
such Sale and Lease-Back Transaction, without equally and ratably securing the Notes;

          (2) the proceeds of such Sale and Lease-Back Transaction are at least equal to the fair
market value of the affected Principal Property (as determined in good faith by the
Company’s Chief Executive Officer, President, Chief Financial Officer, Treasurer or
Controller) and the Company or a Subsidiary applies an amount equal to the net proceeds of
such Sale and Lease-Back Transaction with 360 days thereof to the prepayment or retirement
of debt for borrowed money of the Company or a Subsidiary (other than debt that is
subordinated to the Notes or debt owed to the Company or a Subsidiary);

          (3) the Company or a Subsidiary apply an amount equal to the net proceeds of such Sale
and Lease-Back Transaction within 360 days thereof to the purchase, construction,
development, expansion or improvement of other property;

          (4) such Sale and Lease-Back Transaction involves a lease for a term, including
renewals, of not more than three years;

          (5) such Sale and Lease-Back Transaction is between the Company and a Subsidiary, or
between Subsidiaries;

          (6) such Sale and Lease-Back Transaction is executed at the time of, or within 12
months after the latest of, the acquisition, the completion of construction or improvement,
or the commencement of substantial commercial operation, of the Principal Property covered
thereby;

          (7) the lease in such Sale and Lease-Back Transaction secures or relates to industrial
revenue or pollution control bonds if the Company is permitted to incur a Mortgage in
connection with such industrial revenue or pollution control bonds pursuant to clause (6) of
the second sentence of subsection (a) of Section 4.01; or

          (8) the lease payment in such Sale and Lease-Back Transaction is created in connection
with a project financed with, and such obligation constitutes, a Nonrecourse Obligation.

          (b) Notwithstanding the restrictions in the first sentence of subsection (a), the Company or
any Subsidiary may enter into any Sale and Lease-Back Transaction with respect to any Principal

16

 

Property which would otherwise be subject to such restrictions, provided that after
giving effect thereto, the aggregate amount of all Attributable Debt with respect to all such Sale
and Lease-Back Transactions (not including any Attributable Debt permitted to be incurred pursuant
to clauses (1) through (8) of subsection (a) above) plus the aggregate amount of all secured Funded
Debt incurred pursuant to subsection (a) of Section 4.01 (excluding Funded Debt secured by
Mortgages permitted by clauses (1) through (8) of the second sentence of subsection (a) thereunder)
does not exceed 15 percent of the Consolidated Net Tangible Assets.

ARTICLE 5.

SUCCESSORS

     Section 5.01 Merger, Consolidation or Sale of Assets.

          The Company shall not merge or consolidate with any other Person or Persons (whether or not
affiliated with the Company) or sell, convey, transfer, lease or otherwise dispose of all or
substantially all of its property or assets to any other Person or Persons (whether or not
affiliated with the Company), unless:

          (i) either: (a) the transaction is a merger or consolidation and the Company is the surviving
entity; or (b) the successor Person (or the Person which acquires by sale, conveyance, transfer or
lease all or substantially all of the Company’s property or assets) is a corporation organized
under the laws of the United States, any state thereof or the District of Columbia and expressly
assumes, by a supplemental indenture satisfactory to the Trustee, all of the Company’s obligations
under the Notes and the Indenture;

          (ii) immediately after giving effect to the transaction and treating the Company’s obligations
in connection with or as a result of such transaction as having been incurred as of the time of
such transaction, no Event of Default (and no event or condition which, after notice or lapse of
time or both, would become an Event of Default) shall have occurred and be continuing under the
Indenture; and

          (iii) an Officer’s Certificate is delivered to the Trustee to the effect that both of the
conditions set forth in clauses (i) and (ii) above have been satisfied.

          In the event of any of the above transactions, if there is a successor Person as described in
clause (i)(b) immediately above, then the successor will expressly assume all of the Company’s
obligations under the Indenture and automatically be substituted for the Company in the Indenture
and as issuer of the Notes. Further, if the transaction is in the form of a sale or conveyance,
after any such transfer (except in the case of a lease), the Company will be discharged from all
obligations and covenants under the Indenture and all Notes issued thereunder.

ARTICLE 6.

DEFAULTS AND REMEDIES

     Section 6.01 Events of Default.

          The Notes shall not have the benefit of the Events of Default set forth in the Base Indenture.
Instead, each of the following is an “Event of Default” with respect to the Notes:

          (a) the failure to pay interest on any Notes when the same becomes due and payable and the
default continues for a period of 30 days;

          (b) failure in the payment when due of principal of or premium, if any, on the Notes;

17

 

          (c) default in the performance or breach of any covenant or warranty of the Company relating
to the Notes, which default continues uncured for a period of 90 days after receipt by the Company
of written notice given by the Trustee or Holders of such Notes after the Company and the Trustee
receive written notice from the Holders of not less than a majority in aggregate principal amount
of the Notes outstanding; or

          (d) the Company or any Material Subsidiary:

          (i) commences a voluntary case in bankruptcy,

          (ii) consents to the entry of an order for relief against it in an involuntary
bankruptcy case,

          (iii) consents to the appointment of a custodian of it or for all or substantially all
of its property,

          (iv) makes a general assignment for the benefit of its creditors, or

          (v) generally is unable to pay its debts as they become due; or

          (e) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

          (i) is for relief against the Company or any Material Subsidiary;

          (ii) appoints a custodian of the Company or any Material Subsidiary for all or
substantially all of the property of the Company or of such Material Subsidiary, as
applicable; or

          (iii) orders the liquidation of the Company or any Material Subsidiary;

and the order or decree remains unstayed and in effect for 90 consecutive days.

ARTICLE 7.

MISCELLANEOUS

     Section 7.01 Trust Indenture Act Controls.

          If any provision of this Supplemental Indenture limits, qualifies or conflicts with the duties
imposed by TIA Section 318(c), the imposed duties will control.

     Section 7.02 Governing Law.

          THE INTERNAL LAWS OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE AND THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

     Section 7.03 Successors.

          All agreements of the Company in this Supplemental Indenture and the Notes will bind its
successors. All agreements of the Trustee in this Supplemental Indenture will bind its successors.

18

 

     Section 7.04 Severability.

          In case any provision in this Supplemental Indenture or in the Notes will be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions will not in
any way be affected or impaired thereby.

     Section 7.05 Counterpart Originals.

          The parties may sign any number of copies of this Supplemental Indenture. Each signed copy
will be an original, but all of them together represent the same agreement.

     Section 7.06 Table of Contents, Headings, Etc.

          The Table of Contents and Headings of the Articles and Sections of this Supplemental Indenture
have been inserted for convenience of reference only, are not to be considered a part of this
Supplemental Indenture and will in no way modify or restrict any of the terms or provisions hereof.

[Signatures on following page]

19

 

SIGNATURES

Dated as of August 23, 2007

	 	 	 	 	 
	 	STARBUCKS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, BY DEUTSCHE
BANK NATIONAL TRUST COMPANY, as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT A

(Face of Note)

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Supplemental Indenture]

CUSIP 855244 AC3

6.250% Senior Notes due 2017

			
	 	 	 
	No. ___
	 	$___

STARBUCKS CORPORATION

promises to pay to CEDE & CO. or registered assigns, the principal sum of                      Dollars on August
15, 2017.

Interest Payment Dates: February 15 and August 15

Record Dates: February 1 and August 1

Dated: August 23, 2007

	 	 	 	 	 
	 	STARBUCKS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Troy Alstead 	 
	 	 	Title:  	senior vice president, Finance 	 
	 

Date of Authentication: August 23, 2007

This is one of the Global

Notes referred to in the

within-mentioned Supplemental Indenture:

Dated: August 23, 2007

	 	 	 	 	 
	DEUTSCHE BANK TRUST COMPANY AMERICAS
BY DEUTSCHE BANK NATIONAL TRUST COMPANY
as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:

Title:
	 	 

A-1

 

(Back of Note)

6.250% Senior Notes due 2017

          Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

          1. INTEREST. Starbucks Corporation, a Washington corporation (the “Company”), promises to pay
interest on the principal amount of this Note at 6.250% per annum from the date hereof until
maturity. The Company will pay interest semi-annually on February 15 and August 15 of each year,
or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest will
accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest
Payment Date will be February 15, 2008. The Company will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to the
then applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest at the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

          2. METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest)
to the Persons who are registered Holders of Notes at the close of business on the February 1 or
August 1 next preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in Section 2.13 of the
Base Indenture with respect to defaulted interest. Principal, premium, if any, and interest on the
Notes will be payable at the office or agency of the Paying Agent and Registrar within the Borough
of Manhattan in the City of New York or, at the option of the Company, payment of interest may be
made by check mailed to the Holders of the Notes at their respective addresses set forth in the
register of Holders of Notes; provided that all payments of principal, premium and interest with
respect to Notes the Holders of which have given wire transfer instructions to the Trustee will be
required to be made by wire transfer of immediately available funds to the accounts specified by
the Holders thereof. Such payment will be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts.

          3. PAYING AGENT AND REGISTRAR. Initially, Deutsche Bank Trust Company Americas, the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying
Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in
any such capacity.

          4. INDENTURE. This Note is one of a duly authenticated series of securities of the Company
issued and to be issued in one or more series under an indenture (the “Base Indenture”), dated as
of August 23, 2007 between the Company and the Trustee, as amended by the Supplemental Indenture
(the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), dated as of
August 23, 2007, between the Company and the Trustee. The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are subject to all such terms,
and Holders are referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the Base Indenture, the
provisions of the Note will govern and be controlling, and to the extent any provision of the Notes
conflicts with the Supplemental Indenture, the provisions of the Supplemental Indenture will govern
and be controlling, and to the extent

A-2

 

any provision of the Base Indenture conflicts with the express provisions of the Supplemental
Indenture, the provisions of the Supplemental Indenture will govern and be controlling. The
Company will be entitled to issue Additional Notes pursuant to Section 2.03 of the Supplemental
Indenture.

          5. OPTIONAL REDEMPTION.

          At any time prior to August 15, 2017, the Company may, on any one or more occasions, redeem,
in whole or in part, at a redemption price equal to the greater of the following amounts, plus, in
each case, accrued and unpaid interest, if any, on the principal amount of the Notes being redeemed
to the date of redemption or purchase (“Redemption Date”):

          (i) 100% of the aggregate principal amount of the Notes to be redeemed; or

          (ii) the sum of the present value at such Redemption Date of (1) the principal amount
of the Notes on the Redemption Date plus (2) all required remaining scheduled interest
payments due on such Notes (but not including any portion of such payments of interest
accrued to the Redemption Date) through August 15, 2017 computed using a discount rate equal
to the Adjusted Treasury Rate plus 25 basis points.

          Calculation of the foregoing shall be made by the Company or on the Company’s behalf by such
Person as the Company shall designate; provided, however, that such calculation shall not be a duty
or obligation of the Trustee.

          On and after the Redemption Date, interest will cease to accrue on the Notes or portions
thereof called for redemption as long as the Company has deposited with the Paying Agent funds in
satisfaction of the applicable redemption price.

          6. MANDATORY REDEMPTION. Except as set forth in paragraph 7, the Company shall not be
required to make mandatory redemption payments with respect to the Notes.

          7. REPURCHASE AT OPTION OF HOLDER.

          Upon the occurrence of a Change of Control Triggering Event, the Company will be required to
offer to purchase all of the outstanding Notes at a purchase price equal to 101% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the date of purchase.

          8. NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 30 days but not more
than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its
registered address. No Notes of a principal amount of $2,000 or less shall be redeemed in part.

          9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000. Notes may be transferred or exchanged as
provided in the Supplemental Indenture. The Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and the Company may
require a Holder to pay any taxes and fees required by law or permitted by the Supplemental
Indenture. The Company need not exchange or transfer any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the
Company need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and the corresponding
Interest Payment Date.

A-3

 

          10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

          11. AMENDMENT, SUPPLEMENT AND WAIVER. The Base Indenture may be amended as provided therein.
Subject to certain exceptions, the Supplemental Indenture or the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal amount of the
Notes then outstanding, including, without limitation, consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Notes, voting as a single class, and compliance
with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes, including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer for, Notes, voting as
a single class. Without the consent of any Holder of a Note, the Supplemental Indenture or the
Notes may be amended or supplemented (i) to cure any ambiguity, defect or inconsistency; (ii) to
provide for uncertificated Notes in addition to or in place of certificated Notes; (iii) to provide
for the assumption of the Company’s obligations to Holders of the Notes in case of a merger or
consolidation or sale of all or substantially all of the Company’s assets; (iv) to make any change
that would provide any additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Supplemental Indenture of any such Holder; (v) to
comply with the requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the Trust Indenture Act; (vi) to provide for the issuance of Additional Notes in
accordance with the Supplemental Indenture; or (vii) to evidence and provide for the acceptance of
appointment by a successor trustee with respect to the Notes.

          12. DEFAULTS AND REMEDIES. An “EVENT OF DEFAULT” occurs if: (i) default for a period of 30
days in the payment when due of interest on the Notes; (ii) default in the payment when due of
principal of or premium, if any, on the Notes; (iii) the Company fails for 90 days after receipt of
notice to the Company to comply with any covenant or warranty of the Company in the Indenture; or
(iv) certain events of bankruptcy or insolvency occur with respect to the Company or any Material
Subsidiary.

          If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25%
in principal amount of the then outstanding Notes may declare all the Notes to be due and payable.
Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency with respect to the Company or any Material Subsidiary, all outstanding
Notes will become due and payable without further action or notice. Holders may not enforce the
Indenture or the Notes except as provided in the Indenture. Subject to certain limitations,
Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in
its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of
any continuing Default or Event of Default if it determines that withholding notice is in their
interest, except a Default or Event of Default relating to the payment of principal, premium or
interest. The Holders of a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default
or Event of Default and its consequences under the Indenture except a continuing Default or Event
of Default in the payment of interest on, or the principal of, the Notes. The Company is required
to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the
Company is required no later than five days after becoming aware of any Default or Event of Default
to deliver to the Trustee a statement specifying such Default or Event of Default.

          13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

          14. NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator or stockholder,
of the Company, as such, will not have any liability for any obligations of the Company

A-4

 

under the Notes or the Indenture or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases
all such liability. The waiver and release are part of the consideration for the issuance of the
Notes.

          15. AUTHENTICATION. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

          16. ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

          17. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes
and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon. The Company will furnish to any Holder upon written request and without
charge a copy of the Base Indenture and the Supplemental Indenture. Requests may be made to:

Starbucks Corporation

2401 Utah Avenue South

Seattle, Washington 98134

Facsimile No.: (206) 318-1045

Attention: General Counsel

A-5

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 
 (Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 
 (Print or type assignee’s name, address and zip code)

and irrevocably appoint                                                                  
                                                                              
                 
 to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date: _______________________

	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(sign exactly as your name
appears
on the face of this senior note)
	 
	 	 	 	 	 	 
	 	 	Tax Identification No:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Signature Guarantee:	 	 
	 

	 	 	 	 	 	 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

A-6

 

Option of Holder to Elect Purchase

          If you want to elect to have this Note purchased by the Company pursuant to Section 4.02 of
the Supplemental Indenture, check the box below:

          o Section 4.02

          If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 4.02 of the Supplemental Indenture, state the amount you elect to have purchased: $

Date: _______________________

	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(sign exactly as your name
appears
on the face of this senior note)
	 
	 	 	 	 	 	 
	 	 	Tax Identification No:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Signature Guarantee:	 	 
	 

	 	 	 	 	 	 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

C-1

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