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Starbucks FY11 Bean Stock Reward

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<strong>Stock</strong><br />

<strong>Starbucks</strong> <strong>FY11</strong> <strong>Bean</strong> <strong>Stock</strong> <strong>Reward</strong><br />

Celebrating 21 years of Partners Sharing in the Financial Success of <strong>Starbucks</strong><br />

Questions and Answers (Q & A) for U.S. Partners<br />

Who is eligible to receive a <strong>Bean</strong> <strong>Stock</strong> reward?<br />

You are eligible for a <strong>Bean</strong> <strong>Stock</strong> reward if you:<br />

• Are a current partner employed by <strong>Starbucks</strong> as of May 1, 2011<br />

• Are paid at least 360 hours during the fiscal year (October 4, 2010 through October 2, 2011), and<br />

• Are in a position up to, but not including, the director level.<br />

What is <strong>Bean</strong> <strong>Stock</strong> and how does it work?<br />

• <strong>Bean</strong> <strong>Stock</strong> is granted annually to eligible partners in the form of Restricted <strong>Stock</strong> Units (RSUs). RSUs give you the right to<br />

receive shares of <strong>Starbucks</strong> stock after a specified period of time, also known as vesting. There is no need to enroll.<br />

• <strong>Bean</strong> <strong>Stock</strong> is an opportunity for partners to share in the financial success of the company through the shares of <strong>Starbucks</strong><br />

stock you receive upon vesting of the RSUs.<br />

What is Vesting?<br />

• Vesting is basically a waiting period when you must remain employed by <strong>Starbucks</strong> without any break in service.<br />

• RSUs vest 50 percent after the first year, and 25 percent each for the second and third years. This means on the first<br />

anniversary date of your grant—when it vests—you become a <strong>Starbucks</strong> shareholder.<br />

How are RSUs taxed?<br />

• When RSUs vest, depending on where you work and/or live, you may be required to pay income tax on the market value of<br />

the vested shares.<br />

• <strong>Starbucks</strong> will satisfy any tax-withholding obligations, if applicable, by reducing the number of vested shares equal to the<br />

amount of income tax you owe; this is referred to as ‘netting of shares.’<br />

• The residual tax will be refunded to you through payroll within three pay periods after the vest.<br />

How many <strong>Bean</strong> <strong>Stock</strong> RSUs will I receive?<br />

• The number of <strong>Bean</strong> <strong>Stock</strong> RSUs you may receive vary year-to-year based on your job (retail) or annualized salary (nonretail),<br />

and the fair market value of <strong>Starbucks</strong> stock on the grant date.<br />

• Log in to Fidelity at netbenefits.fidelity.com on December 2 or later to view your specific reward.<br />

• If this is your first <strong>Bean</strong> <strong>Stock</strong> reward or you’ve received previous <strong>Bean</strong> <strong>Stock</strong> rewards but have not logged in, you will be<br />

prompted to activate your Fidelity account prior to logging in at netbenefits.fidelity.com; select REGISTER NOW and<br />

click ACTIVATE.<br />

Will the RSUs be eligible for cash dividends before they vest? No, RSUs are not eligible to receive cash dividends. Only after<br />

vesting will the net shares you receive upon vesting be eligible to receive future dividends.


When will I learn more about my <strong>Bean</strong> <strong>Stock</strong> reward?<br />

• Visit the <strong>Bean</strong> <strong>Stock</strong> page on Go to <strong>Starbucks</strong>.com/partners to watch the <strong>Bean</strong> <strong>Stock</strong> videos and learn more.<br />

• Eligible partners will receive their personalized reward packets with the specific terms of the <strong>Bean</strong> <strong>Stock</strong> reward beginning<br />

in February.<br />

What about past <strong>Bean</strong> <strong>Stock</strong> grant rewards?<br />

For partners who received a <strong>Bean</strong> <strong>Stock</strong> RSU grant last year, upon vesting of RSUs the net shares of <strong>Starbucks</strong> stock are deposited<br />

into the individual section of your Fidelity account. If you received <strong>Stock</strong> Options grants in years prior, the options are exercisable<br />

(for cash or actual shares of <strong>Starbucks</strong> stock) upon vesting. Prior grants vest on the following dates:<br />

• November 15 – The 2010 <strong>Bean</strong> <strong>Stock</strong> Restricted <strong>Stock</strong> Units (RSU) grant vests the first 50 percent.<br />

• November 16 – The 2009 <strong>Stock</strong> Option grant at $22.06 vests the second 25 percent.<br />

• November 17 – The 2008 <strong>Stock</strong> Option grant at $8.64 vests the third 25 percent.<br />

• November 19 – The 2007 <strong>Stock</strong> Option grant at $22.87 vests the last 25 percent.<br />

Where can I go for more information?<br />

• Contact Fidelity online at netbenefits.fidelity.com.<br />

• You may also speak to a Fidelity Representative at (866) 697-1048 from 2 p.m. Sunday through 9 p.m. Friday, Pacific.<br />

Every effort has been made to communicate this benefit information clearly and in easily understandable terms. If there is<br />

any discrepancy between the information set forth above and the legal plan and trust documents, the terms of the legal<br />

plan and trust documents always govern. <strong>Starbucks</strong> must also reserve the right to amend or terminate any benefit plan<br />

referred to herein in accordance with its terms.<br />

© 2011 <strong>Starbucks</strong> Coffee Company. All Rights Reserved. Company Confidential. For Internal Use Only.

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