Document:

exv10w2

 

Exhibit 10.2

	 	 	 
	

	 	Starbucks Coffee Company

PO. Box 34110

Seattle, WA 98124-1110

206/318-1575

Howard Schultz

chairman

January 10, 2008

Mr. Chet Kuchinad

[Address]

[Address]

Dear Chet:

Thank you for your contributions to the Company’s success and congratulations on your
promotion to executive vice president, Partner Resources reporting to me at Starbucks
Coffee Company. I value your passion for the organization and look forward to you beginning
your new role on January 14, 2008.

Here are the specifics of your offer:

You will be paid bi-weekly at a base salary that annualizes to $400,000.

Executive Management Bonus Plan

You will become eligible to participate in the Executive Management Bonus Plan (EMBP)
beginning the effective date of your promotion. Your new incentive target is 50% of your
eligible base salary. For the first three months of this fiscal year, you will continue to
participate in the General Management Incentive Plan (GMIP) at an incentive target of 40% of
your eligible base salary. Your bonus will be based on the achievement of company, business
unit/department and individual goals. Starbucks reserves the right to review, change, amend, or
cancel incentive plans at any time.

For the current fiscal year, you will have:

	 	 	 	 	 	 	 
	# of Months	 	Target %	 	Plan	 	Primary Measure
	3
	 	40	 	GMIP	 	operating income
	9
	 	50	 	EMIP	 	operating income

Stock Options

You will be granted stock options to purchase shares of Starbucks common stock with an
economic value of $400,000 (USD) under the Key Employee Sub-PIan to the 2005 Long-Term Equity
Incentive Plan, subject to approval by the Compensation and Management Development Committee of
the Board of Directors or its designee. The exercise price of the options will be the regular
trading session closing price of a share of Starbucks stock on the date of grant. The grant date
of your options will be after you assume your new position and otherwise effective in accordance
with the Company’s stock option grant policy. The options will be non-qualified and will vest

 

 

Chet Kuchinad

January 10, 2008

Page 2

in equal installments over a period of four (4) years, beginning on the first anniversary
date of the grant, subject to your continued employment.

Insider Trading

As a senior vice president, executive vice president of the Company, or a member of a
department with access to sensitive business and financial information about the Company, you
will be prohibited from trading Starbucks securities (or, in some circumstances, the
securities of companies doing business with Starbucks) from time to time in accordance with the
Company’s Insider Trading Policy and Blackout Procedures. A copy of the policy will be provided
to you your first day and you will be required to sign a certificate indicating that you have
read and understood the policy.

Management Deferred Compensation Plan

You will continue to be eligible to participate in the Management Deferred Compensation Plan
(MDCP) if you are on our U.S. payroll and meet the eligibility criteria. The MDCP provides
eligible partners with the opportunity to save on a tax-deferred basis. If you have questions
about the MDCP, please contact the Starbucks Savings Team at savings@starbucks.com. You may
also obtain more information about the MDCP on the Savings link at http://LifeAt.sbux.com.

Executive Life Insurance

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

Coffee Hedging

As an officer of the Company, a member of the Coffee Management Group, or a partner
involved in coffee procurement and trading on behalf of the Company, you are prohibited fiom
trading in coffee commodity futures for your own account. If you have further questions, please
contact your Partner Resources generalist.

Executive Physical Exam

You will continue to be eligible to participate in Starbucks executive physical program.
Information about the program and our program provider will be emailed to you. The program
provider will contact you shortly thereafter to establish an appointment. If you have questions
about this physical, please contact Kelley Hardin at 206-318-7756.

 

 

Chet Kuchinad

January 10, 2008

Page 3

Benefits

To understand how this change may affect your benefits, please contact the Starbucks Partner
Contact Center at 1-866-504-7368 or your Partner Resources generalist. Please note that
although it is Starbucks intent to continue these plans, they may be amended or terminated at
any time without notice

As a condition of being promoted and in consideration for the increase in your base
compensation, you are asked sign a Non-Competition Agreement. Enclosed are two copies. Please
review and sign both copies of the Non-Competition Agreement and this letter, and return one
copy of each document to me.

In your position, you will remain employed ‘at will,’ meaning that either you or your
employer can end the employment relationship at any time, for any reason not prohibited by law.

On behalf of the entire team, I wish you the best in your new role and look forward to
your continued success. If you have any questions, please call me at 206-318-4010.

	 	 	 
	Warm regards,
	 	 
	 
	/s/ Howard Schultz
 

Howard Schultz

	 	 
	chairman, president & chief executive officer
	 	 

	 	 	 
	cc:

	 	partner file
	 

	 	Stock Administration (S-HR3)
	 
	 	 
	Enc.

	 	Non-Competition Agreement

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

	 	 	 	 
	/s/ Chet Kuchinad
 

	 	1/10/08 
	Chet Kuchinad

	 	Date of Acceptanceexv10w3

 

Exhibit 10.3

	 	 	 
	

	 	Starbucks Coffee Company

P. O. Box 34110

Seattle WA 98124-1110

Martin Coles

chief operating officer

February 21, 2008

Mr. Clifford Burrows

[Address]

[Address]

Dear Cliff:

Thank you
for your contributions to the Company’s success and congratulations on your promotion to
president, Starbucks Coffee U.S. reporting to me at Starbucks Coffee Company. I value your passion
for the organization and look forward to you beginning your new role
on or around March 10, 2008.

Here are the specifics of your offer:

You will be paid bi-weekly at a base salary that annualizes to $595,000 (USD).

Annual
Bonus

You will become eligible to participate in the Executive Management Bonus Plan (EMBP) beginning the
effective date of your promotion. Your new incentive target is 65% of your eligible base salary.
For the first five months of this fiscal year, you will continue to participate in the General
Management Incentive Plan (GMIP) at an incentive target of 40% of your eligible base salary. Your
bonus will be based on the achievement of company, business unit and individual goals. Starbucks
reserves the right to review, change, amend, or cancel incentive plans at any time.

For
the current fiscal year, you will have:

	 	 	 	 	 	 	 	 	 
	# of Months	 	Target %	 	Plan	 	Primary Measure
	5

	 	 	40	 	 	GMIP
	 	Profit Contribution  — EMEA
	7

	 	 	65	 	 	EMBP
	 	Profit Contribution  — U.S.    

Stock Options

You will be granted stock options to purchase shares of Starbucks common stock with
an economic value of $250,000 (USD) under the Key Employee Sub-Plan to the 2005 Long-Term Equity
Incentive Plan, subject to approval by the Compensation and Management Development Committee of the
Board of Directors. The exercise price of the options will be the regular trading session closing
price of a share of Starbucks stock on the date of grant. The grant date of your options will be after you assume your new position and
otherwise effective in accordance with the Company’s option grant policy. The options will

 

 

be non-qualified and will vest in equal installments over a period of four (4) years, beginning on
the first anniversary date of the grant, subject to your continued employment.

As a senior executive the company’s executive stock ownership guidelines will apply to you. The guidelines require covered executives to achieve a minimum investment in Starbucks stock within
five years. A copy of the guidelines will be provided to you as part of your immersion.

Insider Trading

As an executive access to sensitive business and financial information about the Company, you will
be prohibited from trading Starbucks securities (or, in some circumstances, the securities of
companies doing business with Starbucks) from time to time in accordance with the Company’s Insider
Trading Policy and Blackout Procedures. A copy of the policy will be provided to you and you will
be required to sign a certificate indicating that you have read and understood the policy.

Management Deferred Compensation Plan

You may be eligible to participate in the Management Deferred Compensation Plan (MDCP) if you are
on our U.S. payroll and meet the eligibility criteria. The MDCP provides eligible partners with the
opportunity to save on a tax-deferred basis. If you are eligible, you will receive general
information and enrollment materials at your home address as soon as administratively possible
after your start date on U.S. payroll. If you have questions about the MDCP, please contact the
Starbucks Savings Team at savings@starbucks.com. You may also obtain more information about the
MDCP on the Savings link at http://LifeAt.sbux.com.

Executive Life Insurance

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

Executive Physical Exam

You are eligible to participate in Starbucks executive physical program. Information about
the program and our program provider wiIl be emailed to you (new participants are notified at the
beginning of each calendar quarter). The program provider will contact you shortly thereafter to
establish an appointment. If you have questions about this physical, please contact Kelley Hardin
at 206-318-7756.

Relocation Benefits

This letter summarizes the terms of your relocation to Starbucks Coffee Company located in the
United States. Starbucks wants your more to Seattle, WA to be a positive one. To assist you, we
have partnered with Altair Global Relocation to provide you with relocation services. You will be
assigned a counselor to be your central point of contact to address issues and questions you many
have regarding your relocation.

Starbucks will activate your relocation services upon acceptance of our offer. A consultant
will contact you to begin the process within 24 hours of receiving the relocation authorization
from Starbucks. If you have any questions in the interim, please contact either your Altair
consultant at 925-945-1001 or 800-

- 2 -

 

934-5400 or contact your Starbucks Partner Resources generalist, Bob Ravener at 206-318-5780. The
following relocation benefits are available to  you. Please refer to the enclosed Relocation
Policy for further detail and important information on each benefit.

	 	•	 	Miscellaneous expense payment of $15,000 less payroll taxes
	 
	 	•	 	Moving your household goods by a Starbucks preferred van line and storage to a maximum time limit of 60 days if renter, 90 days if homeowner
	 
	 	•	 	Temporary housing in your destination city, to a maximum time limit of 60 days if renter, 90 days if homeowner
	 
	 	•	 	New area orientation tour in your destination area and Rental Finding Assistance
	 
	 	•	 	Home finding trips for a maximum of seven (7) in total, to include meals, lodging, airfare and car rental
	 
	 	•	 	Final Move expenses associated with relocating you and your spouse, partner, dependents and pets to your destination area
	 
	 	•	 	Home Marketing Assistance, which includes reimbursement of usual and customary closing costs if homeowner
	 
	 	•	 	New Home Purchase Closing Costs if homeowner.

No relocation expenses should be charged to a Starbucks Corporate Credit Card, nor should they be
submitted to Starbucks Accounts Payable via Gelco. If you have any questions regarding your
relocation expenses, please reach out to your relocation consultant. All relocation benefits must
be utilized within one year of offer acceptance date.

The federal gross-up rate for your relocation is 33% plus mandatory FICA, Medicare, and any
applicable state/local taxes (subject to change in accordance with Federal guidelines). Please
refer to the enclosed Policy Summaries for information on each benefit’s eligibility for gross-up.

Please Note: Should you voluntarily terminate your reemployment with Starbucks Coffee Company
during the first year, you will be responsible for reimbursing Starbucks for a pro-rata share of
all relocation expenses incurred by Starbucks on your behalf.

Immigration Assistance

Starbucks will apply any required work permits. on your behalf and will reimburse you for cost
associated with obtaining passports, work and residence permits. The relocation terms below are
conditioned upon your receiving the appropriate work authorization and residence permits in the
U.S.

Taxes

Starbucks will retain the services of a third party independent tax consultant to assist you
with your tax return preparation obligations for the year of your relocation. Tax returns may be
required for U.K. as well as for U.S. In addition, the tax consultants will handle any inquiries
from the taxing authorities relating to the relocation.

You are responsible for providing the tax consultants with all information and records
relating to your compensation, investments, and relocation in a timely manner. Starbucks will not
reimburse for any fees incurred by you in utilizing the services of an unauthorized tax preparer.

You are responsible for the payment in full of any taxes owed to the U.K. or U.S. tax authorities.

- 3 -

 

Coffee Hedging

As an officer of the Company, a member of the Coffee Management Group, or a partner involved in
coffee procurement and trading on behalf of the Company, you are prohibited from trading in coffee
commodity futures for your own account. If you have further questions, please contact your Partner
Resources generalist.

Additional Information

Attached to this letter is Your Special Blend, an overview of Starbucks benefits, savings and stock
programs. If you have questions regarding these programs or eligibility, please call Dave Hill at
206-318-7162. Please note that although it is Starbucks intent to continue these plans, they may
be amended or terminated at any time without notice.

As a condition of being promoted and in consideration for the increase in your base compensation,
you are asked sign a Non-Competition Agreement. Enclosed are two copies. Please review and sign
both copies of the Non-Competition Agreement and this letter, and return one copy of each document
to Chet Kuchinad.

This offer supersedes your terms and conditions of employment both as an employee of Starbucks
UK and under the letter of understanding dated September 6, 2005 concerning your assignment to work
in the Netherlands as president, EMEA. Accordingly, your employment with Starbucks Corporation is
‘at will,’ meaning that either you or your employer can end the employment relationship at any time,
for any reason not prohibited by law.

On behalf of the entire team, I am excited to have you join us in the U.S. in this key
position at a very exciting time in our history. If you have any questions, please call me at
206-318-7175.

	 	 	 
	Warm regards,
	 	 
	 
	/s/ Martin Coles
 

Martin Coles

	 	 
	chief operating officer
	 	 

	 	 	 
	cc:

	 	partner file

Stock Administration (S-HR3)

Chet Kuchinad
	 
	 	 
	Enc.

	 	Non-Competition Agreement

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

	 	 	 	 	 
	/s/ Clifford Burrows
 

Clifford Burrows

	 	28th February 2008
 

Date
	 	 

- 4 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]