Document:

Document

Exhibit 10.iii.d

															
	January 8, 2016				The Mosaic Company
					3033 Campus Drive
	Bruce Bodine				Plymouth, MN  55441
	6925 Moccasin Valley Road			Tel (763) 577-2700
	Edina, MN  55439				www.mosaicco.com
					

Letter of Understanding: Long Term International Assignment to Regina, Saskatchewan

Dear Bruce,

On behalf of The Mosaic Company (hereafter referred to as "the Company"), it is my pleasure to confirm the terms of your compensation and international assignment package for the position of Vice President, Potash. This Letter of Understanding outlines the terms and conditions that will govern your international assignment.
Assignment Details
For the purpose of the International Assignment, your home country place of origin will be Edina, MN, United States and your host country location will be considered Regina, Saskatchewan.

The anticipated start date of your international assignment is April 1, 2016. Your international assignment will continue for a period of approximately 36 months, after which a review to extend it will occur. Any time spent in Regina, Saskatchewan prior to the assignment start date will be considered a business trip.

Your anticipated repatriation date is May 1, 2019, and is based upon the Company's reasonable expectations at this time. This date is subject to change as determined by the Company's business needs and is conditioned upon your agreement to the terms of this Letter of Understanding. Upon completion of your international assignment, it is expected that you will repatriate to your home country location, in accordance with the terms and conditions that govern your international assignment. However, if, after 36 months on assignment, it is mutually agreed that you will remain in Regina Saskatchewan, for a longer period of time, discussions for your localization will begin.

The Company has engaged Plus Relocation Services, Inc. (hereafter  referred  to as "PLUS"),  a global relocation service provider, to administer your benefits. Your PLUS Relocation Counselor  will be available for questions and counselling throughout your international assignment.

															
	Relocation Services Representative:
		
	Kari Cinker, International Relocation Counsellor
		
	Plus Relocation Services, Inc. (PLUS)
		
	600 Hwy 169 South, Suite 500, Minneapolis, MN 55426
	
	Tel: 1.952.512.5592 Fax: 1.952.358.7705 E-mail: kcinker@plusrelocation.com

Your Role While on Assignment
Throughout the international assignment period you will be considered an employee of the Company's U.S. entity, and your payroll will be administered by your home and host payroll department.

You will assume the title of Vice President, Potash, and will be reporting to Joe O'Rourke, President & CEO. While residing in Regina, Saskatchewan,  your role will be to  develop strategic  operating plans and activities to enhance and grow the Potash business unit, establish annual operating plans across the sites, develop working relationships with government and industry officials, and ensure safety and environment programs are maintained, while continuing to meet required regulations by country.
Compensation and Incentives
As an employee of your home country, your base pay structure will remain the same as when you were working in your home country  location.  As such,  your annual base salary  will be $375,000 USD and will be subject to the annual review and adjustment process,  which is based on performance goals and objectives as defined by the Company. You will participate in your home country bonus plan and will be subject to required deductions as determined by the home countries governing tax criteria for economic and social tax collection.

Eligibility and participation with respect to incentive schemes will continue to be administered in accordance with the home country criteria for each fiscal year. Your incentive plan will be based on the Corporate Management Incentive Plan. Your incentive target will be 60% of base salary.
Expatriate Family Eligibility
Accompanying Dependents
Dependents are members of your immediate family sharing the residence with you in a bona fide dependency  status (e.g. legal spouse, children, or other  relatives). Dependents  must  fall into one of the following categories:

■A person who is a dependent on the home country tax return, or
■A person who is a dependent on your health insurance plan through the Company.

Children
Dependent children may accompany you only if there is no conflict with immigration or other laws or regulations in the host country.

															
	Dependents
	The members of an Expatriate's immediate family sharing the residence with the Expatriate in a bona fide dependency status (e.g., legal status, children or other relatives whose status qualifies as dependency under tax/legal status in the employee's home country and the Company's entity). A legal spouse is one who has legal spouse recognition/rights from the Expatriate's home country government. This does not include common-law marriage unless the home country recognizes it (usually with a certificate) as a legal marriage.

									
	Bruce Bodine	Page 2 of 10
	02/03/2016

Benefit Plans
During your international assignment, your health coverage will be provided by the Company's preferred provider that covers employees who are working away from home. You are responsible for scheduling a meeting with your benefits administrator prior to your departure date to ensure that no lapse in health coverage occurs. While on expatriate assignment you and your eligible dependents will be covered by an international expatriate plan offered by Cigna that includes medical, dental and vision. Details will be provided to you upon your acceptance of the assignment.To support home health care needs for your daughter, Mosaic will provide an annual allowance of
$65,700 gross, paid monthly. This allowance will end when your family relocates to Regina, Saskatchewan.
Physical Examinations, Inoculations, Vaccinations and Documentation
It will be your responsibility to ensure that you and any approved accompanying family members undertake necessary physical examinations, inoculations and vaccinations. Prior to commencement of the international assignment, you must also obtain any necessary medical records and documents that are required by both the home and host country laws. The Company will reimburse the expenses incurred in complying with such requirements if not covered by your health plan.
Holiday and Vacation
Your vacation plan will continue to be administered by the Company's home country location. It is expected  that you  will coordinate  planned  time off in advance  with both your home and host country managers.

Your holiday entitlement will be based on your host country location. You are expected to adopt the local working hours and employment practices in accordance with the laws and customs of the host country.
Immigration Services
Your international assignment is dependent upon the successful processing of your relevant entry, travel and work permit requirements, in accordance with the International Assignment Policy. The Company's immigration service provider will manage your home and host country immigration and relevant work permit obligations.

All immigration aspects of the international assignment, including work permits and visa applications, will be coordinated through the immigration services contact listed below.

												
	Zaifman Immigration Lawyers
		
				
	Mira Thow, LLB. LLM.
		
	Zaifman Immigration Lawyers
		
	500-191 Lombard Avenue
		
	Winnipeg, Canada R3B OX1
		
	Telephone: (204) 944-8888
		
	Direct: (204) 925-5574
		
	Cell: (204) 291-7774
		
	Fax: (204) 956-2909
		
	email:  mthow@zaifmanlaw.com
	

									
	Bruce Bodine	Page 3 of 10
	02/03/2016

Host Country Allowances and Benefits
The Company's approach for facilitating international assignments maintains both a standard of living that is appropriate for the host country location and ensures a personal tax liability roughly equivalent to your peers in your home country location. The primary objective is to ensure that you experience neither negative nor significant positive financial variances.

The table below details certain key elements of your  allowances  and  benefits,  and the location where each component will be paid/received. The allowance  and benefit  adjustments  indicated below  will become  effective  upon commencement  of the international assignment  and receipt of your work permit. It is imperative that you notify PLUS of your departure and arrival dates to ensure you are paid timely.

						
		

BENEFITS

	Immigration (Visa/Work Permit)
	▪Coordinated internally or with a selected provider
▪Reasonable costs for vaccinations or exams that are not covered by medical insurance
▪Employee and Immediate familv members going on assignment

	

Tax Consultation and Preparation
	▪Coordinated with selected provider
▪Home & Host Tax Consultation provided
▪Tax preparation & filing for duration of assignment and applicable tax situations beyond the duration of the assignment
▪Hypothetical Tax Calculation usually utilized

	Tax Assistance
	▪Tax Equalization

	

Household Goods Shipment
	▪Packing, transporting and Insuring
▪Customs duties covered
▪30 days in transit storage (no storage for autos)
▪Pet Transportation costs capped at 5,000 USD/5,000 CAD
▪Home Country Perm Storage: Up to 450 - 600 USD/month 450 - 600/CAD/month
▪Air Shipments
▪Employee, Spouse & Family    1,000 lbs/450 kg
▪Air Shipment Valuation Caps:
▪Family shipments not to exceed 17,500 USD/17,500 CAD of insurance valuation
▪Sea/Surface Shipments
▪Employee & Spouse    20ft container
▪Sea Shipment Valuation Caps;
▪Employee+ Spouse shipments not to exceed 175,000 USD/175,000 CAD of insurance valuation
▪Auto Shipments
▪No shipments or storage of autos

	Auto Loss on Sale
	▪Reimbursement for the loss on sale automobile
▪Reimbursement capped at 2,500 USD/2,500 CAD per automobile
▪Single employee approved for 1 car
▪Married employee approved for 2 cars
▪Lease breaking fees covered up to the above caps

									
	Bruce Bodine	Page 4 of 10
	02/03/2016

						
		

BENEFITS

	Preview/Home Finding Trip
	▪1 trip up to 5 days/4 nights
▪Employee, spouse and high school aged children, grades 9-12
▪Round-trip airfare per travel policy guidelines
▪Reasonable meals, lodging, and local transportation
▪Mileage at current rate, if applicable
▪Childcare 50 USD/50 CAD per day

	En Route Trip
	▪One-way airfare per travel policy
▪Ground transportation to/from airport
▪Reasonable lodging, meals, and miscellaneous expenses (luggage, taxi/airport transfer, customary gratuities, initial entry duties)

	Temporary Living
	▪Furnished housing - while in Regina, prior to family relocation
▪No meals, unless there are no cooking facilities; case by case calculation
▪Car rental/public transportation reimbursed for up to 30 days

	Annual Home Leave and On Assignment Travel
	▪1 return trip annually for employee and 3 return trips annually for accompanying spouse
▪Round-trip airfare per travel policy guidelines
▪Airport transportation, rental car, lodging
▪1 trip up to 7 days every 12 months
▪Available after the first 6 months of assignment and prior to the final 6 months prior to repatriation

	Dependent Travel
	▪1 trip annually for eligible family members
▪Round trip airfare per travel policy guidelines

	Emergency Support and    Leave
	▪Intl SOS Comprehensive Coverage in the event of serious illness, injury or death of assignee
or spouse/partner's immediate family members

	

Home Country Housing Support
	■Home Sale
■Marketing Assistance
■Appraised Value Option
■Appraisals ordered at 90 days
■Must market for 120 days before accepting offer
■After 60 days of marketing, must reduce list price to within 105% of Most Probable Sales Price
■Must use PLUS approved agents
■Equity advance
■Home Sale Incentive
■Home Sale Incentive up to 2% of sale price, capped at $6,000
■Home must be sold within the 90 day marketing period
■Not grossed-up for taxes
■If home maintained Property Management up to 200 USD/200 CAD per month for homeowners

	

Host Country Housing Support
	▪Furnished host country housing (rent) and utilities
▪Security deposits covered by company
▪Rental Commissions covered per destination norms
▪Home housing norm deduction
▪Purchases not supported or recommended

	Host Country Transportation
	▪Two cars for employee and spouse

	Cultural Training
	▪Pre-approval required
▪2-dav program for employee and spouse/partner/dependents

	

Host Country Destination Services
	▪2 days settling-in service to establish temporary residency, bank account, credit, cell phone,and other customary local services
▪Home search assistance with destination agent, up to 3 days (only 2 days if preview trip was taken)

									
	Bruce Bodine	Page 5 of 10
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BENEFITS

	

Language Lessons
	▪Pre-approval required
■Language training for employee and spouse/partner/dependents, capped at 2500 USD/CAD (or
local currency equivalent) per family member

	

Various Allowances
	▪Pre-approval required
▪Mail forwarding support (bi-weekly shipments sent to host office)
▪Goods & Services Differential (COLA) - adjusted 2 to 4 times annually, changes made If+/- 1%)
▪Hardship Premiums <annually reviewed amount determined by ORC case by case)

	Transfer Allowance
	▪1 month's salary, less taxes

Please work with your PLUS Relocation Counselor to coordinate all of these benefits and to process any payments or reimbursements.
Tax Equalization
In accordance with the Company's International Assignment Tax Policy, you will be neither advantaged nor disadvantaged during your international  assignment  as a result of the  differences in the income taxes and social security costs in the home and/or host country locations.

To achieve this balance  your  current  tax  withholdings  may cease and a hypothetical  rate of tax may be calculated and withheld from your wages. This 'hypo tax' may be retained by the Company to off-set the cost of home and host tax payments made on your behalf during your international assignment.  The 'hypo  tax" may  be adjusted  either up or down during your  international assignment.

Signing the Tax Equalization Policy Agreement acknowledging that you accept the terms and conditions of this Policy, is a pre-requisite to accepting the offer for a long-term international assignment. Under the terms of the Tax Equalization Policy Agreement, you agree to be considered tax equalized to your home state and country, which is effective from the start date of  your international assignment through any subsequent years while on the international assignment.

In the event of voluntary or involuntary  separation  from the Company,  a preliminary  tax equalization settlement may be prepared, resulting in additional terms of payment to or from the Company at time of separation.

Before your international assignment begins, you should contact the Company's Worldwide Tax Service Representative to schedule a home and host country tax consultation.

												
	Global Tax Network:
		
	Shawn Siwek, Senior Manager 
		
	7950 Main Street N, Ste 200
		
	Minneapolis, MN 55369
		
	Tel: 763.252.0643      Email: ssiwek@gtn.com
	

Repatriation
At the conclusion of your assignment, the Company will coordinate  your repatriation  back to  the home country location. You should begin to discuss job possibilities at the home country location at least six (6) 
									
	Bruce Bodine	Page 6 of 10
	02/03/2016

months prior to the  end date  of your  assignment  in  the host  country.  The following table is a list of the benefits that apply to your repatriation:

						
		:BENEFITS

	Repat Home Finding Trip
	▪May be eligible for a home finding trip if no home country housing is owned or maintained.
▪1 trip up to 5 days/4 nights
▪Employee, spouse and high school aged children, grades 9-12 
▪Round-trip airfare per travel policy
▪Reasonable lodging, rental car and fuel
▪Meal per diem 30 USD/30 CAD per adult, 15 USD/15 CAD per child age 15 and under 
▪Mileage at current rate if applicable

	Repat Household Goods Shipment
	▪Packing, transporting and insuring
▪30 days in transit storage
▪Allow 10% increase on return shipment
▪Pet Transportation costs capped at 5,000 USD/5,000 CAD

▪Air Shipments
▪Employee, Spouse & Family    1,000 lbs/450 kg

▪Air Shipment Valuation Caps;
▪Family shipments not to exceed 25,000 USD/25,000 CAD of insurance valuation

▪sea/Surface Shipments
▪Employee & Spouse    20ft container

▪sea Shipment Valuatjon caps;
▪Employee+ Spouse shipments not to exceed 175,000 USD/175,000 CAD of insurance valuation

▪Auto Shipments
▪No shipments or storage of autos

	Repat Host Country
Departure Assistance
	▪1 day departure services offered for lease breaking, lease close out, utility disconnections, local deregistration requirements

	Repat
En Route trip
	▪One-way airfare per travel policy
▪Ground transportation to/from airport
▪Reasonable lodging, meals, and miscellaneous expenses (luggage, taxi/airport transfer, customary gratuities initial entry duties)

	Repat Home Finding Trip
	▪May be eligible for a home finding trip if no home country housing is owned or maintained.
▪1 trip up to 5 days/4 nights
▪Employee, spouse and high school aged children, grades 9-12
▪Round-trip airfare per travel policy
▪Reasonable lodging, rental car and fuel
▪Meal per diem 30 USD/30 CAD per adult, 15 USD/15 CAD per child age 15 and under Mileage at current rate if applicable

									
	Bruce Bodine	Page 7 of 10
	02/03/2016

						
		:BENEFITS

	

Repat Household Goods Shipment
	▪Packing, transporting and insuring
▪30 days in transit storage
▪Allow 10% increase on return shipment
▪Pet Transportation costs capped at 5,000 USD/5,000 CAD

▪Air Shipments
▪Employee, Spouse & Family    1,000 lbs/450 kg

▪Air Shipment Valuation Caps;
▪Family shipments not to exceed 25,000 USD/25,000 CAD of insurance valuation

▪sea/Surface Shipments
▪Employee & Spouse    20ft container

▪sea Shipment Valuatjon caps;
▪Employee+ Spouse shipments not to exceed 175,000 USD/175,000 CAD of insurance valuation

▪Auto Shipments
▪No shipments or storage of autos

	Repat Host Country
Departure Assistance
	▪1 day departure services offered for lease breaking, lease close out, utility disconnections, local deregistration requirements

	Repat
En Route trip
	▪One-way airfare per travel policy
▪Ground transportation to/from airport
▪Reasonable lodging, meals, and miscellaneous expenses (luggage, taxi/airport transfer, customary gratuities initial entry duties)

	Repat Temporary Living
	▪Furnished/serviced housing Up to 30 days
▪No meals, unless there are no cooking facilities; case by case calculation
▪Car rental/public transportation reimbursed for up to 30 days

	Repat Home Country
Housing Support
	▪1 day rental tour, if applicable

	Repat Transfer Allowance
	▪1 month's salary, less taxes

Re-employment
Although the Company cannot guarantee any position of employment when your international assignment ends, the intention of the Company is to make reasonable efforts to identify a suitable location and position that will most benefit from the skills, experience, and expertise you have gained during your international assignment. In the event that a reasonably appropriate position is not available to you, and in the event your re-employment is, therefore, involuntarily terminated by the Company within 30 days of the conclusion of your assignment for reasons other than for "Cause" (as defined below), and subject to your execution of a separation agreement and release of claims reasonably acceptable to the Company, the Company will provide you with such severance benefits as may be available under the Company's applicable policy at the time your international assignment ends.

For purposes of this Agreement, "Cause" means: (a) malfeasance which has an adverse impact upon the Company; (b)  refusal to perform  duties ordinarily  performed  by an employee  in the same or similar position; (c) conviction of a crime which has an adverse impact on the Company or your ability to successfully perform job duties; (d) failure to comply with the written or known policies of the Company  or  directions  of your  superiors;  (e)  failure  to  fulfill your employment  responsibilities in a competent and professional manner;  or (f)  a material  breach of this Agreement  or the Proprietary and Confidential Information Agreement  previously  signed  by you at  your time of hire.
									
	Bruce Bodine	Page 8 of 10
	02/03/2016

Acceptance
If you are in agreement with the terms and conditions, as defined in this Letter of Understanding and the attached policies, please sign and date the copy of this letter, as well as the attached International Tax Equalization Policy Agreement. Please forward the signed copies to Renee Robideau. A copy should be retained for your personal information.

SIGNATURE  ACCEPTANCE
We are sincerely looking forward to you accepting this international assignment with the Company.

FOR AND ON BEHALF OF THE MOSAIC COMPANY
												
				
	/s/ Bruce M. Bodine			2-3-2016
	Bruce Bodine			Date
	International Assignee			
				
	/s/ Joc O'Rourke			2-5-16
	Joc O'Rourke			Date
	President & CEO			
				
	/s/ Renee Robideau			2-3-16
	Renee Robideau			
	Director, Human Resources & Global Mobility		

									
	Bruce Bodine	Page 9 of 10
	02/03/2016

INTERNATIONAL ASSIGNMENT 
RELOCATION PAYBACK AGREEMENT

In consideration  for my employment,  and the  agreement  by The Mosaic  Company  to  provide  for the above mentioned relocation and other expenses as determined by The  Mosaic  Company expatriate policy, I agree to the following:

1.Should my employment with The Mosaic Company terminate for reasons of cause or resignation within two years of my assignment start date, the following consequences will be agreed:

a.)    All assignment benefits (including allowances) will end on the date of termination or the last day the employee is in the Host Country;
b.)    The transfer allowance must be repaid according to the following schedule: payment in full if termination occurs within one year;  50% repayment  if  termination  occurs  between one and two years. No repayment would be required for termination after two years from the assignment start date;
c.)    The Mosaic Company will not pay for any repatriation expenses, including travel or moving expenses back to the home country.

2.I authorize The Mosaic Company to withhold from any monies due to me at the time of termination necessary to satisfy this obligation, above those sums exempt from attachment under Federal and State laws.

												
	PRINT NAME:	Bruce Bodine		
	SIGNATURE:	/s/ Bruce Bodine	Date:	2-3-2016

									
	Bruce Bodine	Page 10 of 10
	02/03/2016Document

STARBUCKS CORPORATION
2005 LONG-TERM EQUITY INCENTIVE PLAN
(Effective February 9, 2005, as amended and restated by the Company’s shareholders effective March 20, 2013, as restated on April 9, 2015 to reflect adjustments for the 2-for-1 forward stock split effective on such date, as amended and restated by the Board on September 11, 2018, and as amended and restated by the Company’s shareholders effective March 16, 2022)
						
	Part I PURPOSE, ADMINISTRATION AND RESERVATION OF SHARES
	1

	Section 1. Purpose of the Plan
	1

	Section 2. Definitions
	1

	(a) “2022 Annual Meeting”
	1

	(b) “Active Status”
	1

	(c) “ASC 718”
	2

	(d) “Award”
	2

	(e) “Award Agreement”
	2

	(f) “Beneficial Ownership”
	2

	(g) “Board”
	2

	(h) “Change of Control”
	2

	(i) “Code”
	3

	(j) “Committee”
	3

	(k) “Common Stock”
	3

	(l) “Company”
	3

	(m) “Consultant”
	3

	(n) “Director”
	3

	(o) “Disability”
	3

	(p) “Exchange Act”
	4

	(q) “Executive Officers”
	4

	(r) “Fair Market Value”
	4

	(s) “FLSA”
	4

	(t) “Incentive Stock Option”
	4

	(u) “Independent Director”
	4

	(v) “Maximum Annual Participant Award”
	4

	(w) “Misconduct”
	5

	(x) “Nasdaq”
	5

	(y) “Nominating and Corporate Governance Committee”
	5

						
	(z) “Non-Employee Director”
	5

	(aa) “Nonqualified Stock Option”
	5

	(bb) “Option”
	6

	(cc) “Optionee”
	6

	(dd) “Parent”
	6

	(ee) “Participant”
	6

	(ff) “Partner”
	6

	(gg) “Performance Criteria”
	6

	(hh) “Plan”
	6

	(ii) “Plan Minimum Vesting Requirements”
	6

	(jj) “Reprice”
	6

	(kk) “Resignation (or Resign) for Good Reason”
	7

	(ll) “Restricted Stock”
	7

	(mm) “Restricted Stock Units”
	7

	(nn) “Retirement”
	7

	(oo) “SAR”
	7

	(pp) “SEC”
	7

	(qq) “Share”
	7

	(rr) “Stand-Alone SARs”
	7

	(ss) “Stock Award”
	7

	(tt) “Subcommittee”
	7

	(uu) “Subsidiary”
	8

	(vv) “Tandem SARs”
	8

	Section 3. Administration of the Plan
	8

	(a) Authority
	8

	(b) Powers of the Committee
	8

	(c) Effect of Committee’s Decision
	9

	(d) Delegation
	9

	(e) Administration
	10

	Section 4. Shares Subject to the Plan
	10

	(a) Reservation of Shares
	10

	(b) Time of Granting Awards
	11

	(c) Securities Law Compliance
	11

	(d) Substitutions and Assumptions
	11

	Section 5. Adjustments to Shares Subject to the Plan
	11

	Part II TERMS APPLICABLE TO ALL AWARDS
	12

	Section 6. General Eligibility
	12

	(a) Awards
	12

	(b) Maximum Annual Participant Award
	12

ii

						
	(c) No Employment/Service Rights
	12

	(d) Plan Minimum Vesting Requirements
	13

	(e) Fractional Shares
	13

	Section 7. Procedure for Exercise of Awards; Rights as a Shareholder
	13

	(a) Procedure
	13

	(b) Method of Payment
	14

	(c) Withholding Obligations
	14

	(d) Shareholder Rights
	14

	(e) Non-Transferability of Awards
	14

	Section 8. Expiration of Awards
	15

	(a) Expiration, Termination or Forfeiture of Awards
	15

	(b) Extension of Term
	15

	Section 9. Effect of Change of Control
	15

	(a) Acceleration
	16

	(b) Definition
	16

	Part III SPECIFIC TERMS APPLICABLE TO OPTIONS, STOCK AWARDS AND SARS
	17

	Section 10. Grant, Terms and Conditions of Options
	17

	(a) Designation
	17

	(b) Terms of Options
	17

	(c) Option Exercise Prices
	17

	(d) Vesting
	18

	(e) Substitution of SARs for Options
	18

	(f) Exercise
	18

	Section 11. Grant, Terms and Conditions of Stock Awards, Restricted Stock and Restricted Stock Units
	18

	(a) Designation
	18

	(b) Performance Criteria
	19

	(c) Vesting
	20

	Section 12. Grant, Terms and Conditions of SARs
	20

	(a) Grants
	20

	(b) Tandem SARs
	20

	(c) Stand-Alone SARs
	21

	(d) Exercised SARs
	21

	Part IV TERM OF PLAN AND SHAREHOLDER APPROVAL
	22

	Section 13. Term of Plan
	22

	Section 14. Amendment and Termination of the Plan
	22

	(a) Amendment and Termination
	22

iii

						
	(b) Participants in Foreign Countries
	22

	(c) Effect of Amendment or Termination
	22

	Section 15. Shareholder Approval
	22

	Part V OTHER PROVISIONS
	23

	Section 16. No Liability of Company
	23

	Section 17. Other Policies
	23

	Section 18. Non-Exclusivity of Plan
	23

	Section 19. Governing Law
	23

iv

STARBUCKS CORPORATION
2005 LONG-TERM EQUITY INCENTIVE PLAN
PART I
PURPOSE, ADMINISTRATION AND RESERVATION OF SHARES
Section 1.  Purpose of the Plan.  The purposes of this Plan are (a) to attract and retain the most talented Partners, officers and Directors available, and (b) to promote the growth and success of the Company’s business, (i) by aligning the long-term interests of Partners, officers and Directors with those of the shareholders by providing an opportunity to acquire an interest in the Company and (ii) by providing both rewards for exceptional performance and long term incentives for future contributions to the success of the Company and its Subsidiaries.
The Plan permits the grant of Incentive Stock Options, Nonqualified Stock Options, Stock Awards, Restricted Stock, Restricted Stock Units, or SARs, at the discretion of the Committee.  Each Award will be subject to conditions specified in the Plan and in the terms of the Award Agreement, such as continued employment or satisfaction of performance criteria.
This Plan will serve as a framework for the Committee to establish sub-plans or procedures governing the grants to Partners, Directors and Consultants and Partners working outside of the United States.  
Section 2.  Definitions.  As used herein, the following definitions shall apply:
(a)  “2022 Annual Meeting” shall mean the 2022 Annual Meeting of Shareholders.
(b)  “Active Status” shall mean (i) for Partners, the absence of any interruption or termination of service as a Partner, (ii) for Directors, that the Director has not been removed from the Board for cause (as determined by the Company’s shareholders), and (iii) for Consultants, the absence of any interruption, expiration, or termination of such person’s consulting or advisory relationship with the Company or any Subsidiary or the occurrence of any termination event as set forth in such person’s Award Agreement.  Active Status shall not be considered interrupted (A) for a Partner in the case of sick leave, maternity leave, infant care leave, medical emergency leave, military leave, or any other leave of absence properly taken in accordance with the policies of the Company or any applicable Subsidiary as may be in effect from time to time, and (B) for a Consultant, in the case of any temporary interruption in such person’s availability to provide services to the Company or any Subsidiary which has been granted in writing by 
1

an authorized officer of the Company.  Whenever a mandatory severance period applies under applicable law with respect to a termination of service as a Partner, Active Status shall be considered terminated upon such Partner’s receipt of notice of termination in whatever form prescribed by applicable law.
(c)  “ASC 718” shall mean Accounting Standards Codification (ASC) Topic 718, “Stock Compensation,” as promulgated by the Financial Accounting Standards Board.
(d)  “Award” shall mean any award or benefits granted under the Plan, including Options, Stock Awards, Restricted Stock, Restricted Stock Units, and SARs.
(e)  “Award Agreement” shall mean a written or electronic agreement or other instrument as may be approved from time to time by the Committee setting forth the terms of the Award.  An Award Agreement may be in the form of an agreement to be executed by both the Participant and the Company (or an authorized representative of the Company) or certificates, notices or similar instruments as approved by the Committee.
(f)  “Beneficial Ownership” shall have the meaning set forth in Rule 13d-3 promulgated under the Exchange Act.
(g)  “Board” shall mean the Board of Directors of the Company.
(h)  “Change of Control” shall mean the first day that any one or more of the following conditions shall have been satisfied:
(i)  the sale, liquidation or other disposition of all or substantially all of the Company’s assets in one or a series of related transactions;
(ii)  an acquisition (other than directly from the Company) of any outstanding voting securities by any person, after which such person (as the term is used for purposes of Section 13(d) or 14(d) of the Exchange Act) has Beneficial Ownership of twenty-five percent (25%) or more of the then outstanding voting securities of the Company, other than a Board approved transaction;
(iii)  during any 12-consecutive month period, the individuals who, at the beginning of such period, constitute the Board (“Incumbent Directors”) cease for any reason other than death to constitute at least a majority of the members of the Board; provided however that except as set forth in this Section 2(h)(iii), an individual who becomes a member of the Board subsequent to the beginning of the 12-month period, shall be deemed to have satisfied such 12-month requirement and shall be deemed an 
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Incumbent Director if such Director was elected by or on the recommendation of or with the approval of at least two-thirds of the Directors who then qualified as Incumbent Directors either actually (because they were Directors at the beginning of such period) or by operation of the provisions of this section; if any such individual initially assumes office as a result of or in connection with either an actual or threatened solicitation with respect to the election of Directors (as such terms are used in Rule 14a-12(c) of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitations of proxies or consents by or on behalf of a person other than the Board, then such individual shall not be considered an Incumbent Director; or
(iv)  a merger, consolidation or reorganization of the Company, as a result of which the shareholders of the Company immediately prior to such merger, consolidation or reorganization own directly or indirectly immediately following such merger, consolidation or reorganization less than fifty percent (50%) of the combined voting power of the outstanding voting securities of the entity resulting from such merger, consolidation or reorganization.
(i)  “Code” shall mean the Internal Revenue Code of 1986, as amended.
(j)  “Committee” shall mean the Compensation and Management Development Committee appointed by the Board.
(k)  “Common Stock” shall mean the common stock of the Company, par value $0.001 per share, subject to adjustment as provided in Section 5.
(l)  “Company” shall mean Starbucks Corporation, a Washington corporation, and any successor thereto.
(m)  “Consultant” shall mean any person, except a Partner, engaged by the Company or any Subsidiary of the Company, to render personal services to such entity, including as an advisor, pursuant to the terms of a written agreement.
(n)  “Director” shall mean a member of the Board.
(o)  “Disability” shall mean (i) in the case of a Participant whose employment with the Company or a Subsidiary is subject to the terms of an employment or consulting agreement that includes a definition of “Disability,” the term “Disability” as used in this Plan shall have the meaning set forth in such employment or consulting agreement during the period that such employment or consulting agreement remains in effect; and (ii) in all other cases, the term “Disability” as used in this Plan shall have the same meaning as set forth under the Company’s long-term disability plan applicable to the 
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Participant as may be amended from time to time, and in the event the Company does not maintain any such plan with respect to a Participant, a physical or mental condition resulting from bodily injury, disease or mental disorder which renders the Participant incapable of continuing his or her usual and customary employment with the Company or a Subsidiary, as the case may be, for a period of not less than 120 days or such other period as may be required by applicable law.
(p)  “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
(q)  “Executive Officers” shall mean the officers of the Company as such term is defined in Rule 16a-1 under the Exchange Act.
(r)  “Fair Market Value” shall mean the closing price per share of the Common Stock on Nasdaq as to the date specified (or the previous trading day if the date specified is a day on which no trading occurred), or if Nasdaq shall cease to be the principal exchange or quotation system upon which the shares of Common Stock are listed or quoted, then such exchange or quotation system as the Company elects to list or quote its shares of Common Stock and that the Committee designates as the Company’s principal exchange or quotation system.
(s)  “FLSA” shall mean the Fair Labor Standards Act of 1938, as amended.
(t)  “Incentive Stock Option” shall mean any Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.
(u)  “Independent Director” shall mean a Director who: (1) meets the independence requirements of Nasdaq, or if Nasdaq shall cease to be the principal exchange or quotation system upon which the shares of Common Stock are listed or quoted, then such exchange or quotation system as the Company elects to list or quote its shares of Common Stock and that the Committee designates as the Company’s principal exchange or quotation system; (2) qualifies as a “non-employee director” under Rule 16b-3 promulgated under the Exchange Act; and (3) satisfies independence criteria under any other applicable laws or regulations relating to the issuance of Shares to Partners.
(v)  “Maximum Annual Participant Award” shall have the meaning set forth in Section 6(b).
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(w)  “Misconduct” shall mean any of the following; provided, however, that with respect to Non-Employee Directors “Misconduct” shall mean subsection (viii) only:
(i)  any material breach of an agreement between the Participant and the Company or any Subsidiary which, if curable, has not been cured within twenty (20) days after the Participant has been given written notice of the need to cure such breach, or which breach, if previously cured, recurs;
(ii)  willful unauthorized use or disclosure of confidential information or trade secrets of the Company or any Subsidiary by the Participant;
(iii)  the Participant’s continued willful and intentional failure to satisfactorily perform Participant’s essential responsibilities, provided that the Participant has been given at least thirty (30) days’ written notice of the need to cure the failure and cure has not been effected within that time period, or which failure, if previously cured, recurs;
(iv)  material failure of the Participant to comply with rules, policies or procedures of the Company or any Subsidiary as they may be amended from time to time, provided that the Participant has been given at least thirty (30) days’ written notice of the need to cure the failure, if such failure is curable, and cure has not been effected within that time period, or which failure, if previously cured, recurs;
(v)  Participant’s dishonesty, fraud or gross negligence related to the business or property of the Company or any Subsidiary;
(vi)  personal conduct that is materially detrimental to the business of the Company or any Subsidiary;
(vii)  conviction of or plea of nolo contendere to a felony; or
(viii)  in the case of Non-Employee Directors, the removal from the Board for cause (as determined by the Company’s shareholders).
(x)  “Nasdaq” shall mean The Nasdaq Stock Market, Inc.
(y)  “Nominating and Corporate Governance Committee” shall mean the Nominating and Corporate Governance Committee appointed by the Board.
(z)  “Non-Employee Director” shall mean a Director who is not a Partner.
(aa)  “Nonqualified Stock Option” shall mean an Option that does not qualify or is not intended to qualify as an Incentive Stock Option.
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(ab)  “Option” shall mean a stock option granted pursuant to Section 10 of the Plan.
(ac)  “Optionee” shall mean a Participant who has been granted an Option.
(ad)  “Parent” shall mean a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.
(ae)  “Participant” shall mean a Partner, Director or Consultant granted an Award.
(af)  “Partner” shall mean any person, including an officer, who is a common law employee of, receives remuneration for personal services to, is reflected on the official human resources database as an employee of, and is on the payroll of the Company or any Subsidiary of the Company.  A person is on the payroll if he or she is paid from or at the direction of the payroll department of the Company, or any Subsidiary of the Company.  Persons providing services to the Company, or to any Subsidiary of the Company, pursuant to an agreement with a staff leasing organization, temporary workers engaged through or employed by temporary or leasing agencies, and workers who hold themselves out to the Company, or a Subsidiary to which they are providing services as being independent contractors, or as being employed by or engaged through another company while providing the services, and persons covered by a collective bargaining agreement (unless the collective bargaining agreement applicable to the person specifically provides for participation in this Plan) are not Partners for purposes of this Plan and do not and cannot participate in this Plan, whether or not such persons are, or may be reclassified by the courts, the Internal Revenue Service, the U.S. Department of Labor, or other person or entity as, common law employees of the Company, or any Subsidiary, either solely or jointly with another person or entity.
(ag)  “Performance Criteria” shall have the meaning set forth in Section 11(b).
(ah)  “Plan” shall mean this Starbucks Corporation 2005 Long-Term Equity Incentive Plan, including any amendments thereto.
(ai)  “Plan Minimum Vesting Requirements” shall mean the minimum vesting requirements set forth under Plan Section 6(d) hereunder.
(aj)  “Reprice” shall mean the reduction of the exercise price of Options or SARs previously awarded, and, at any time when the exercise price of Options or SARs is above the Fair Market Value of a share of Common Stock, the cancellation and re-grant or the exchange of such outstanding Options or SARs for either cash or a new Award with a lower (or no) exercise price.
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(ak)  “Resignation (or Resign) for Good Reason” shall mean any voluntary termination by written resignation of the Active Status of any Partner after a Change of Control because of: (1) a material reduction in the Partner’s authority, responsibilities or scope of employment; (2) an assignment of duties to the Partner inconsistent with the Partner’s role at the Company (including its Subsidiaries) prior to the Change of Control, (3) a reduction in the Partner’s base salary or total incentive compensation; (4) a material reduction in the Partner’s benefits unless such reduction applies to all Partners of comparable rank; or (5) the relocation of the Partner’s primary work location more than fifty (50) miles from the Partner’s primary work location prior to the Change of Control; provided that the Partner’s written notice of voluntary resignation must be tendered within one (1) year after the Change of Control, and shall specify which of the events described in (1) through (5) resulted in the resignation.
(al)  “Restricted Stock” shall mean a grant of Shares pursuant to Section 11 of the Plan.
(am)  “Restricted Stock Units” shall mean a grant of the right to receive Shares or their cash equivalent (or both) pursuant to Section 11 of the Plan.
(an)  “Retirement” shall mean, (i) with respect to any Partner, voluntary termination of employment after attainment of age 55 and at least ten (10) years of credited service with the Company or any Subsidiary (but only during the time the Subsidiary was a Subsidiary), as determined by the Committee in its sole discretion, and (ii) with respect to any Non-Employee Director, ceasing to be a Director pursuant to election by the Company’s shareholders or by voluntary resignation with the approval of the Board’s chair after having attained the age of 55 years and served continuously on the Board for at least six years.
(ao)  “SAR” shall mean a stock appreciation right awarded pursuant to Section 12 of the Plan.
(ap)  “SEC” shall mean the Securities and Exchange Commission.
(aq)  “Share” shall mean one share of Common Stock, as adjusted in accordance with Section 5 of the Plan.
(ar)  “Stand-Alone SARs” shall have the meaning set forth in Section 12(c) of the Plan.
(as)  “Stock Award” shall mean an award of fully vested Shares granted pursuant to Section 11 of the Plan.
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(at)  “Subcommittee” shall have the meaning set forth in Section 3(d).
(au)  “Subsidiary” shall mean (1) in the case of an Incentive Stock Option a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, and (2) in the case of a Nonqualified Stock Option, Restricted Stock, a Restricted Stock Unit or a SAR, in addition to a subsidiary corporation as defined in (1), (A) a limited liability company, partnership or other entity in which the Company controls fifty percent (50%) or more of the voting power or equity interests, or (B) an entity with respect to which the Company possesses the power, directly or indirectly, to direct or cause the direction of the management and policies of that entity, whether through the Company’s ownership of voting securities, by contract or otherwise.
(av)  “Tandem SARs” shall have the meaning set forth in Section 12(b) of the Plan.
Section 3.  Administration of the Plan.  
(a)  Authority.  The Plan shall be administered by the Committee.  The Committee shall have full and exclusive power to administer the Plan on behalf of the Board, subject to such terms and conditions as the Committee may prescribe.  Notwithstanding anything herein to the contrary, the Committee’s power to administer the Plan, and actions the Committee takes under the Plan, shall be subject to the limitation that certain actions may be subject to review and approval by either the full Board or a panel consisting of all of the Independent Directors of the Company.
(b)  Powers of the Committee.  Subject to the other provisions of this Plan, the Committee shall have the authority, in its discretion:
(i)  to grant Incentive Stock Options, Nonqualified Stock Options, Stock Awards, Restricted Stock, Restricted Stock Units, and SARs to Participants and to determine the terms and conditions of such Awards, including the determination of the Fair Market Value of the Shares and the exercise price, and to modify or amend each Award, with the consent of the Participant when required;
(ii)  to determine the Participants, to whom Awards, if any, will be granted hereunder, the timing of such Awards, and the number of Shares to be represented by each Award;
(iii)  to construe and interpret the Plan and the Awards granted hereunder;
(iv)  to prescribe, amend, and rescind rules and regulations relating to the Plan, including the forms of Award Agreement and manner of acceptance of an Award, and to 
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take or approve such further actions as it determines necessary or appropriate to the administration of the Plan and Awards, such as correcting a defect or supplying any omission, or reconciling any inconsistency so that the Plan or any Award Agreement complies with applicable law, regulations and listing requirements and so as to avoid unanticipated consequences or address unanticipated events (including any temporary closure of Nasdaq, disruption of communications or natural catastrophe) deemed by the Committee to be inconsistent with the purposes of the Plan or any Award Agreement, provided that no such action shall be taken absent shareholder approval to the extent required under Section 14;
(v)  to establish performance criteria for Awards made pursuant to the Plan in accordance with a methodology established by the Committee, and to determine whether performance goals have been attained;
(vi)  to accelerate or defer (with the consent of the Participant) the exercise or vested date of any Award;
(vii)  to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Award previously granted by the Committee;
(viii)  to establish sub-plans, procedures or guidelines for the grant of Awards to Partners, Directors, Consultants and Partners working outside of the United States; and
(ix)  to make all other determinations deemed necessary or advisable for the administration of the Plan;
provided that, no consent of a Participant is necessary under clauses (i) or (vi) if a modification, amendment, acceleration, or deferral, in the reasonable judgment of the Committee confers a benefit on the Participant or is made pursuant to an adjustment in accordance with Section 5.
(c)  Effect of Committee’s Decision.  All decisions, determinations, and interpretations of the Committee shall be final and binding on all Participants, the Company (including its Subsidiaries), any shareholder and all other persons.
(d)  Delegation.  Consistent with the Committee’s charter, as such charter may be amended from time to time, and subject to applicable law, the Committee may delegate (i) to one or more separate committees consisting of members of the Committee or other Directors (any such committee a “Subcommittee”), or (ii) to an Executive Officer of the Company, the ability to grant Awards and take the other actions described in Section 3(b) with respect to Participants who are not Executive Officers, and such 
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actions shall be treated for all purposes as if taken by the Committee; provided that the grant of Awards shall be made in accordance with parameters established by the Committee.  Any action by any such Subcommittee or Executive Officer within the scope of such delegation shall be deemed for all purposes to have been taken by the Committee.
(e)  Administration.  The Committee may delegate the administration of the Plan to an officer or officers of the Company, and such administrator(s) may have the authority to directly, or under their supervision, execute and distribute agreements or other documents evidencing or relating to Awards granted by the Committee under this Plan, to maintain records relating to the grant, vesting, exercise, forfeiture or expiration of Awards, to process or oversee the issuance of Shares upon the exercise, vesting and/or settlement of an Award, to interpret the terms of Awards and to take such other actions as the Committee may specify.  Any action by any such administrator within the scope of its delegation shall be deemed for all purposes to have been taken by the Committee and references in this Plan to the Committee shall include any such administrator, provided that the actions and interpretations of any such administrator shall be subject to review and approval, disapproval or modification by the Committee.
Section 4.  Shares Subject to the Plan.  
(a)  Reservation of Shares.  Subject to the provisions of Section 5 of the Plan, the number of shares authorized for issuance under the Plan pursuant to Awards granted on or after October 3, 2021 shall be 106,035,135 plus any shares that on October 3, 2021 are subject to outstanding awards under the Plan that after such date cease to be subject to such awards for any reason other than such awards having been exercised.  Subject to the provisions of Section 5 of the Plan, the maximum aggregate number of Shares (adjusted, proportionately, in the event of any stock split or stock dividend with respect to the Shares) which may be granted as Incentive Stock Options under the Plan shall not exceed 69,612,358.  The aggregate number of Shares available for issuance under the Plan will be reduced by 2.1 Shares for each Share delivered in settlement of any Stock Award or any award of Restricted Stock or Restricted Stock Unit and one Share for each Share delivered in settlement of an Option or a SAR.  If an Award expires, is forfeited, is settled in cash or becomes unexercisable for any reason without having been exercised in full, the undelivered Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for future Awards under the Plan.  Notwithstanding the foregoing, Shares subject to an Award under this Plan may not again be made available for issuance under this Plan if such Shares are: (i) shares that were subject to a stock-settled SAR and were not issued upon the net settlement or net exercise of such SAR, (ii) shares used to pay the exercise or purchase 
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price of an Award, (iii) shares delivered to or withheld by the Company to pay the withholding taxes related to an Award, or (iv) shares repurchased on the open market with the proceeds of an Option exercise.  Any Shares that become available for grant pursuant to this Section 4(a) shall be added back as one Share if such shares were subject to Options or SARs granted under this Plan, and as 2.1 Shares if such shares were subject to Awards other than Options or SARs granted under this Plan.  The Shares may be authorized but unissued, or reacquired shares of Common Stock.
(b)  Time of Granting Awards.  The date of grant of an Award shall, for all purposes, be the date on which the Company completes the corporate action relating to the grant of such Award and all conditions to the grant have been satisfied, provided that conditions to the exercise of an Award shall not defer the date of grant.  Notice of a grant shall be given to each Participant to whom an Award is so granted within a reasonable time after the determination has been made.
(c)  Securities Law Compliance.  Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated under either such Act, and the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted, and shall be further subject to the approval of counsel for the Company with respect to such compliance.
(d)  Substitutions and Assumptions.  The Board or the Committee shall have the right to substitute or assume Awards in connection with mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code applies, provided such substitutions and assumptions are permitted by Section 424 of the Code and the regulations promulgated thereunder.  The number of Shares reserved pursuant to Section 4(a) may be increased by the corresponding number of Awards assumed and, in the case of a substitution, by the net increase in the number of Shares subject to Awards before and after the substitution.
Section 5.  Adjustments to Shares Subject to the Plan.  If any change is made to the Shares by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Shares as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan, (ii) the number and/or class of securities and/or the price per Share covered by outstanding Awards under the Plan, (iii) the Maximum Annual Participant Award, and (iv) the 
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maximum number of Shares that can be granted as Incentive Stock Options under the Plan.  The Committee may also make adjustments described in (i)-(iv) of the previous sentence in the event of any distribution of assets to shareholders other than a normal cash dividend.  In determining adjustments to be made under this Section 5, the Committee may take into account such factors as it deems appropriate, including the restrictions of applicable law and the potential tax consequences of an adjustment, and in light of such factors may make adjustments that are not uniform or proportionate among outstanding Awards.  Adjustments, if any, and any determinations or interpretations, including any determination of whether a distribution is other than a normal cash dividend, made by the Committee shall be final, binding and conclusive.  For purposes of this Section 5, conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.”
Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Award.
PART II
TERMS APPLICABLE TO ALL AWARDS
Section 6.  General Eligibility.  
(a)  Awards.  Awards may be granted to Participants who are Partners, Directors or Consultants; provided however that Incentive Stock Options may only be granted to Partners.
(b)  Maximum Annual Participant Award.  Subject to adjustment pursuant to Section 5, the aggregate number of Shares with respect to which an Award or Awards may be granted to any one Participant in any one taxable year of the Company (the “Maximum Annual Participant Award”) shall not exceed 10,000,000 shares of Common Stock.  If an Option is in tandem with a SAR, such that the exercise of the Option or SAR with respect to a Share cancels the tandem SAR or Option right, respectively, with respect to each Share, the tandem Option and SAR rights with respect to each Share shall be counted as covering but one Share for purposes of the Maximum Annual Participant Award.
(c)  No Employment/Service Rights.  Nothing in the Plan shall confer upon any Participant the right to an Award or to continue in service as a Partner or Consultant for any period of specific duration, or interfere with or otherwise restrict in any way the 
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rights of the Company (or any Subsidiary employing or retaining such person), or of any Participant, which rights are hereby expressly reserved by each, to terminate such person’s services at any time for any reason, with or without cause.
(d)  Plan Minimum Vesting Requirements.  All Awards granted under the Plan after the 2022 Annual Meeting will not vest in whole or in part prior to the one-year anniversary of the date of grant (excluding, for this purpose, any (i) Awards that are substituted or assumed pursuant to Section 4(d) and (ii) Awards to Non-Employee Directors that vest on the earlier of the one year anniversary of the date of grant or the next annual meeting of shareholders, which is at least 50 weeks after the immediately preceding annual meeting of shareholders); provided, however, that up to 5% of the Shares available for future distribution under the Plan immediately following the 2022 Annual Meeting may be granted pursuant to Awards without such Plan Minimum Vesting Requirement. Nothing in this Section 6(d) shall limit (i) the Committee’s ability to grant Awards that are subject to agreements providing for accelerated vesting on a termination of employment or service or to otherwise accelerate vesting, or (ii) any rights to accelerated vesting in connection with a (A) Change of Control as described in Section 9 (including vesting acceleration in connection with employment termination following such event), (B) the death of the Participant, (C) the Disability of the Participant, or (D) the Participant’s Retirement, whether set forth in the Plan, an agreement or otherwise.
(e)  Fractional Shares.  For the avoidance of doubt, fractional Options, Stock Awards, Restricted Stock, Restricted Stock Units, and SARs, and fractional Shares may be issued pursuant to this Plan or in settlement of Awards granted under the Plan, and adjustments made under Section 5 may result in fractional Shares.
Section 7.  Procedure for Exercise of Awards; Rights as a Shareholder.  
(a)  Procedure.  An Award shall be exercised when written, electronic or verbal notice of exercise has been given to the Company, or the brokerage firm or firms approved by the Company to facilitate exercises and sales under this Plan, in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised has been received by the Company or the brokerage firm or firms, as applicable.  The notification to the brokerage firm shall be made in accordance with procedures of such brokerage firm approved by the Company.  Full payment may, as authorized by the Committee, consist of any consideration and method of payment allowable under Section 7(b) of the Plan.  The Company shall issue (or cause to be issued) such share certificate promptly upon exercise of the Award.  In the event that the exercise of an Award is treated in part 
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as the exercise of an Incentive Stock Option and in part as the exercise of a Nonqualified Stock Option pursuant to Section 10(a), the Company shall issue a share certificate evidencing the Shares treated as acquired upon the exercise of an Incentive Stock Option and a separate share certificate evidencing the Shares treated as acquired upon the exercise of a Nonqualified Stock Option, and shall identify each such certificate accordingly in its share transfer records.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the share certificate is issued, except as provided in Section 5 of the Plan.
(b)  Method of Payment.  The consideration to be paid for any Shares to be issued upon exercise or other required settlement of an Award, including the method of payment, shall be determined by the Committee and which forms may include: (i) with respect to an Option, a request that the Company or the designated brokerage firm conduct a cashless exercise of the Option; (ii) cash; (iii) tender of shares of Common Stock owned by the Participant; and (iv) withholding of shares of Common Stock that otherwise would be issued upon exercise or settlement of the Award, in each case, in accordance with rules established by the Committee from time to time.  Shares used to pay the exercise price shall be valued at their Fair Market Value on the exercise date.
(c)  Withholding Obligations.  To the extent required by applicable federal, state, local or foreign law, the Committee may and/or a Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise with respect to any Incentive Stock Option, Nonqualified Stock Option, SAR, Stock Award, Restricted Stock or Restricted Stock Units, or any sale of Shares.  The Company shall not be required to issue Shares or to recognize the disposition of such Shares until such obligations are satisfied.  These obligations may be satisfied by having the Company withhold a portion of the Shares that otherwise would be issued to a Participant under such Award or by tendering Shares previously acquired by the Participant in accordance with rules established by the Committee from time to time.  The value of the Shares so withheld or tendered shall be equal to the amount required to be withheld under applicable tax laws, subject to applicable accounting guidance. The Fair Market Value of the Shares to be withheld or tendered will be determined based on such methodology that the Company deems to be reasonable and in accordance with applicable law.
(d)  Shareholder Rights.  Except as otherwise provided in this Plan, until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the share certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall 
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exist with respect to the Shares subject to the Award, notwithstanding the exercise of the Award.
(e)  Non-Transferability of Awards.  An Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in exchange for consideration, except that an Award may be transferred by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant; unless the Committee permits further transferability, on a general or specific basis, in which case the Committee may impose conditions and limitations on any permitted transferability.
Section 8.  Expiration of Awards.  
(a)  Expiration, Termination or Forfeiture of Awards.  Unless otherwise provided in this Plan or in the applicable Award Agreement or any severance or employment agreement, unvested Awards granted under this Plan shall expire, terminate, or otherwise be forfeited immediately upon termination of a Participant’s Active Status for any reason, and vested Awards granted under this Plan shall expire, terminate, or otherwise be forfeited as follows:
(i)  three (3) months after the date the Company delivers a notice of termination of Active Status for a Participant other than a Non-Employee Director, other than in circumstances covered by (ii), (iii), (iv) or (v) below; or thirty-six (36) months after the date a Non-Employee Director ceases to be a Director, other than in circumstances covered by (ii) and (iv) below;
(ii)  immediately upon termination of a Participant’s Active Status for Misconduct;
(iii)  twelve (12) months after the date on which a Participant other than a Non-Employee Director ceased performing services as a result of his or her total and permanent Disability;
(iv)  twelve (12) months after the date of the death of a Participant whose Active Status terminated as a result of his or her death; and
(v)  thirty-six (36) months after the date on which the Participant ceased performing services as a result of Retirement.
(b)  Extension of Term.  Notwithstanding subsection (a) above, the Committee shall have the authority to extend the expiration date of any outstanding Option, other than an Incentive Stock Option, or SAR in circumstances in which it deems such action 
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to be appropriate (provided that no such extension shall extend the term of an Option or SAR beyond the date on which the Option or SAR would have expired if no termination of the Partner’s Active Status had occurred).
Section 9.  Effect of Change of Control.  Notwithstanding any other provision in the Plan to the contrary, the following provisions shall apply unless otherwise provided in the most recently executed agreement between the Participant and the Company, or specifically prohibited under applicable laws, or by the rules and regulations of any applicable governmental agencies or national securities exchanges or quotation systems.
(a)  Acceleration.  Awards of a Participant shall be Accelerated (as defined in Section 9(b) below) as follows:
(i)  With respect to Non-Employee Directors, upon the occurrence of a Change of Control;
(ii)  With respect to any Partner, upon the occurrence of a Change of Control described in Section 2(h)(i);
(iii)  With respect to any Partner who Resigns for Good Reason or whose Active Status is terminated within one year after a Change of Control described in Section 2(h)(ii) or (iii);
(iv)  With respect to any Partner, upon the occurrence of a Change of Control described in Section 2(h)(iv) in connection with which each Award is not assumed or an equivalent award substituted by such successor entity or a parent or subsidiary of such successor entity; and
(v)  With respect to any Partner who Resigns for Good Reason or whose Active Status is terminated within one year after a Change of Control described in Section 2(h)(iv) in connection with which each Award is assumed or an equivalent award substituted by the successor entity or a parent or subsidiary of such successor entity.
(b)  Definition.  For purposes of this Section 9, Awards of a Participant being “Accelerated” means, with respect to such Participant:
(i)  any and all Options and SARs shall become fully vested and immediately exercisable (with any performance-based Options and SARs for which the performance 
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period has not yet been completed, vesting at the target level specified in the award agreement), and shall remain exercisable throughout their entire term;
(ii)  any restriction periods and restrictions imposed on Restricted Stock or Restricted Stock Units that are not performance-based shall lapse;
(iii)  any restriction periods and restrictions imposed on Restricted Stock or Restricted Stock Units that are performance-based (and for which the performance period has not yet been completed) shall lapse, with such performance-based criteria deemed achieved at the target level specified in the Award Agreement; and
(iv)  the restrictions and deferral limitations and other conditions applicable to any other Awards shall lapse, and such other Awards shall become free of all restrictions, limitations or conditions and become fully vested and transferable to the full extent of the original grant.
PART III
SPECIFIC TERMS APPLICABLE TO OPTIONS, STOCK AWARDS AND SARS
Section 10.  Grant, Terms and Conditions of Options.  
(a)  Designation.  Each Option shall be designated in an Award Agreement as either an Incentive Stock Option or a Nonqualified Stock Option.  However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of the Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Partner during any calendar year (under all plans of the Company) exceeds $100,000, such excess Options shall be treated as Nonqualified Stock Options.  Options shall be taken into account in the order in which they were granted.
(b)  Terms of Options.  The term of each Incentive Stock Option shall be no more than ten (10) years from the date of grant.  However, in the case of an Incentive Stock Option granted to a Participant who, at the time the Option is granted, owns Shares representing more than ten percent (10%) of the voting power of all classes of shares of the Company or any Parent or Subsidiary, the term of the Option shall be no more than five (5) years from the date of grant.  The term of all Nonqualified Stock Options shall be no more than ten (10) years from the date of grant.
(c)  Option Exercise Prices.  
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(i)  The per Share exercise price under an Incentive Stock Option shall be as follows:
(A)If granted to a Partner who, at the time of the grant of such Incentive Stock Option, owns shares representing more than ten percent (10%) of the voting power of all classes of shares of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.
(B)If granted to any other Partner, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.
(ii)  The per Share exercise price under a Nonqualified Stock Option or SAR shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.
(iii)  In no event shall the Board or the Committee be permitted to Reprice an Option after the date of grant without shareholder approval.
(d)  Vesting.  Unless otherwise provided in the applicable Award Agreement or any written severance or employment agreement between the Company and the Optionee, to the extent Options vest and become exercisable in increments, such Options shall cease vesting as of the date of the Optionee’s Disability or termination of such Optionee’s Active Status (or, for Directors, as of the date the Director ceases to serve as a Director) for reasons other than Retirement or death, and, in case of such Optionee’s termination of Active Status (or, for Directors, the Director’s ceasing to serve as a Director) due to Retirement or death, such Options shall become fully vested and immediately exercisable.
(e)  Substitution of SARs for Options.  Notwithstanding anything in this Plan to the contrary, if the Company is required to or elects to record as an expense in its consolidated statements of earnings the cost of Options pursuant to ASC 718 or a similar accounting requirement, the Committee shall have the sole discretion to substitute, without receiving Participants’ permission, SARs paid only in stock for outstanding Options; provided, the terms of the substituted SARs are the same as the terms of the Options, the number of shares underlying the number of SARs equals the number of shares underlying the Options and the difference between the Fair Market Value of the underlying Shares and the grant price of the SARs is equivalent to the difference between the Fair Market Value of the underlying shares and the exercise price of the Options.
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(f)  Exercise.  Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Committee at the time of grant, and as are permissible under the terms of the Plan, including but not limited to, the Performance Criteria set forth in Section 11(b).  
Section 11.  Grant, Terms and Conditions of Stock Awards, Restricted Stock and Restricted Stock Units.  
(a)  Designation.  Stock Awards, Restricted Stock or Restricted Stock Units may be granted either alone, in addition to, or in tandem with other Awards granted under the Plan.  Restricted Stock or Restricted Stock Units (but no other Awards under this Plan) may include dividend or dividend equivalent rights, as may be specified in the Award Agreement; provided, however, that dividends or dividend equivalent rights shall not be paid currently with respect to any Shares underlying awards of Restricted Stock or Restricted Stock Units, except to the extent that such Shares are earned.  After the Committee determines that it will offer a Stock Award, Restricted Stock or Restricted Stock Units, it will advise the Participant in writing or electronically, by means of an Award Agreement, of the terms, conditions and restrictions, including vesting, if any, related to the offer, including the number of Shares that the Participant shall be entitled to receive or purchase, the price to be paid, if any, and, if applicable, the time within which the Participant must accept the offer.  The offer shall be accepted by execution of an Award Agreement or as otherwise directed by the Committee.  Payment, if any, of a Stock Award, Restricted Stock and Restricted Stock Units may be made as permitted by Section 7(b).  Restricted Stock Units can be settled in Shares valued at Fair Market Value on the settlement date, in cash, or partly in Shares and partly in cash, as the Committee shall deem appropriate.  The term of each award of Restricted Stock or Restricted Stock Units shall be at the discretion of the Committee.
(b)  Performance Criteria.  Restricted Stock and Restricted Stock Units may be subject to the attainment of performance goals relating to the Performance Criteria selected by the Committee and specified at the time such Restricted Stock and Restricted Stock Units are granted.  For purposes of this Plan, “Performance Criteria” means one or more of the following (as selected by the Committee): (i) cash flow; (ii) earnings per share, as adjusted for any stock split, stock dividend or other recapitalization; (iii) earnings measures; (iv) return on equity; (v) total shareholder return; (vi) share price performance, as adjusted for any stock split, stock dividend or other recapitalization; (vii) return on capital; (viii) revenue; (ix) income; (x) operating or profit margin; (xi) return on operating revenue; (xii) brand recognition/acceptance; (xiii) customer satisfaction; (xiv) productivity; (xv) expense targets; (xvi) market share; (xvii) cost control measures; (xiii) inventory turns or cycle time; (xix) balance sheet 
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metrics; (xx) strategic initiatives; (xxi) store count; (xxii) comparable store sales; or (xxiii) environmental, social and governance goals; provided, however, that “Performance Criteria” shall include any derivations of these Performance Criteria (e.g., income shall include pre-tax income, net income, operating income, etc.).  Any of these Performance Criteria may be used to measure the performance of the Company as a whole or any business unit or division of the Company.  Performance Criteria may be stated in absolute terms or relative to comparison companies or indices to be achieved during a period of time.
The Committee may provide, at the time it establishes performance goals for any award (as well as at any time when the achievement of the performance goals remains substantially uncertain), that any evaluation of performance shall include or exclude any one or more of the following events that occurs during a performance period: (i) significant acquisitions or dispositions of businesses or assets by the Company, (ii) litigation or claim judgments or settlements; (iii) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results; (iv) any reorganization and restructuring programs; (v) the effect of items that are unusual in nature or occur infrequently as determined under generally accepted accounting principles; (vi) significant, non-recurring charges or credits; (vii) foreign exchange rates; and (viii) any such other events that are determined to be appropriate by the Committee, which would result in objective and non-discretionary adjustments.  
(c)  Vesting.  Unless the Committee determines otherwise, the Award Agreement shall provide for the forfeiture of the non-vested Shares underlying Restricted Stock or Restricted Stock Units upon the termination of a Participant’s Active Status.  To the extent that the Participant purchased the Shares granted under such Restricted Stock or Restricted Stock Units and any such Shares remain non-vested at the time the Participant’s Active Status terminates, the termination of Active Status shall cause an immediate sale of such non-vested Shares to the Company at the original price per Share paid by the Participant.
Section 12.  Grant, Terms and Conditions of SARs.  
(a)  Grants.  The Committee shall have the full power and authority, exercisable in its sole discretion, to grant SARs to selected Participants.  The Committee is authorized to grant both tandem stock appreciation rights, consisting of SARs with underlying Options (“Tandem SARs”), and stand-alone stock appreciation rights (“Stand-Alone SARs”) as described below.  The terms of SARs shall be at the discretion of the Committee.  In no event shall the Board or the Committee be permitted to Reprice a SAR after the date of grant without shareholder approval.
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(b)  Tandem SARs.  
(i)  Participants may be granted a Tandem SAR, exercisable upon such terms and conditions as the Committee shall establish, to elect between the exercise of the underlying Option for Shares or the surrender of the Option in exchange for a distribution from the Company in an amount equal to the excess of (A) the Fair Market Value (on the Option surrender date) of the number of Shares in which the Participant is at the time vested under the surrendered Option (or surrendered portion thereof) over (B) the aggregate exercise price payable for such vested Shares.
(ii)  No such Option surrender shall be effective unless it is approved by the Committee, either at the time of the actual Option surrender or at any earlier time.  If the surrender is so approved, then the distributions to which the Participant shall become entitled under this Section 12(b) may be made in Shares valued at Fair Market Value (on the Option surrender date), in cash, or partly in Shares and partly in cash, as the Committee shall deem appropriate.
(iii)  If the surrender of an Option is not approved by the Committee, then the Participant shall retain whatever rights he or she had under the surrendered Option (or surrendered portion thereof) on the Option surrender date and may exercise such rights at any time prior to the later of (A) five (5) business days after the receipt of the rejection notice or (B) the last day on which the Option is otherwise exercisable in accordance with the terms of the instrument evidencing such Option, but in no event may such rights be exercised more than ten (10) years after the date of the Option grant.
(c)  Stand-Alone SARs.  
(i)  A Participant may be granted a Stand-Alone SAR not tied to any underlying Option under Section 10 of the Plan.  The Stand-Alone SAR shall cover a specified number of Shares and shall be exercisable upon such terms and conditions as the Committee shall establish.  Upon exercise of the Stand-Alone SAR, the holder shall be entitled to receive a distribution from the Company in an amount equal to the excess of (A) the aggregate Fair Market Value (on the exercise date) of the Shares underlying the exercised right over (B) the aggregate base price in effect for those Shares.
(ii)  The number of Shares underlying each Stand-Alone SAR and the base price in effect for those Shares shall be determined by the Committee at the time the Stand-Alone SAR is granted.  In no event, however, may the base price per Share be less than the Fair Market Value per underlying Share on the grant date.
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(iii)  The distribution with respect to an exercised Stand-Alone SAR may be made in Shares valued at Fair Market Value on the exercise date, in cash, or partly in Shares and partly in cash, as the Committee shall deem appropriate.
(iv)  The term of all Stand-Alone SARs shall be no more than ten (10) years from the date of grant.
(d)  Exercised SARs.  The Shares issued in settlement of any SARs exercised under this Section 12, and the Shares underlying any exercised SARs that were not issued in settlement of the SAR, shall not be available for subsequent issuance under the Plan.
PART IV
TERM OF PLAN AND SHAREHOLDER APPROVAL
Section 13.  Term of Plan.  The Plan shall continue in effect until terminated under Section 14 of the Plan. No Incentive Stock Options may be granted after November 9, 2031. 
Section 14.  Amendment and Termination of the Plan.  
(a)  Amendment and Termination.  The Board or the Committee may amend or terminate the Plan from time to time in such respects as the Board may deem advisable (including, but not limited to amendments which the Board deems appropriate to enhance the Company’s ability to claim deductions related to stock option exercises); provided that to the extent required by the Code or the rules of Nasdaq or the SEC, shareholder approval shall be required for any amendment of the Plan.  Subject to the foregoing, it is specifically intended that the Board or Committee may amend the Plan without shareholder approval to comply with legal, regulatory and listing requirements and to avoid unanticipated consequences deemed by the Committee to be inconsistent with the purpose of the Plan or any Award Agreement.
(b)  Participants in Foreign Countries.  The Committee shall have the authority to adopt such modifications, procedures, and sub-plans as may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or its Subsidiaries may operate to assure the viability of the benefits from Awards granted to Participants performing services in such countries and to meet the objectives of the Plan.
(c)  Effect of Amendment or Termination.  Any amendment or termination of the Plan shall not impair the rights of holders of Awards and such Awards shall remain in full 
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force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Participant and the Committee, which agreement must be in writing and signed by the Participant and the Company.
Section 15.  Shareholder Approval.  The effectiveness of the Plan is subject to approval by the shareholders of the Company in accordance with applicable Nasdaq rules.
PART V
OTHER PROVISIONS
Section 16.  No Liability of Company.  The Company and any Subsidiary that is in existence or hereafter comes into existence shall not be liable to a Participant or any other person as to: (i) the non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder; and (ii) any tax consequence expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Award granted hereunder.
Section 17.  Other Policies.  Each Award may be subject to the terms and conditions of any other policy (and any amendments thereto) adopted by the Company from time to time, which may include any policy related to the vesting or transfer of equity awards. Whether any such policy will apply to a particular Award may depend, among other things, on when the Award was granted, whom the Award was granted to, and the type of Award.
Section 18.  Non-Exclusivity of Plan.  Neither the adoption of this Plan by the Board nor the submission of this Plan to the shareholders of the Company for approval shall be construed as creating any limitations on the power of the Board or the Committee to adopt such other incentive arrangements as either may deem desirable, including without limitation, the granting of Stock Awards, Restricted Stock, Restricted Stock Units, or Options otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases.
Section 19.  Governing Law.  This Plan and any agreements or other documents hereunder shall be interpreted and construed in accordance with the laws of the state of Washington and applicable federal law. Any reference in this Plan or in the agreement or other document evidencing any Award to a provision of law or to a rule or regulation 
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shall be deemed to include any successor law, rule or regulation of similar effect or applicability.

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