Starbucks FY11 Bean Stock Reward

[Pages:2]Stock

Starbucks FY11 Bean Stock Reward

Celebrating 21 years of Partners Sharing in the Financial Success of Starbucks

Questions and Answers (Q & A) for U.S. Partners

Who is eligible to receive a Bean Stock reward? You are eligible for a Bean Stock reward if you: ? Are a current partner employed by Starbucks as of May 1, 2011 ? Are paid at least 360 hours during the fiscal year (October 4, 2010 through October 2, 2011), and ? Are in a position up to, but not including, the director level.

What is Bean Stock and how does it work? ? Bean Stock is granted annually to eligible partners in the form of Restricted Stock Units (RSUs). RSUs give you the right to

receive shares of Starbucks stock after a specified period of time, also known as vesting. There is no need to enroll. ? Bean Stock is an opportunity for partners to share in the financial success of the company through the shares of Starbucks

stock you receive upon vesting of the RSUs.

What is Vesting? ? Vesting is basically a waiting period when you must remain employed by Starbucks without any break in service. ? RSUs vest 50 percent after the first year, and 25 percent each for the second and third years. This means on the first

anniversary date of your grant--when it vests--you become a Starbucks shareholder.

How are RSUs taxed? ? When RSUs vest, depending on where you work and/or live, you may be required to pay income tax on the market value of

the vested shares. ? Starbucks will satisfy any tax-withholding obligations, if applicable, by reducing the number of vested shares equal to the

amount of income tax you owe; this is referred to as `netting of shares.' ? The residual tax will be refunded to you through payroll within three pay periods after the vest.

How many Bean Stock RSUs will I receive? ? The number of Bean Stock RSUs you may receive vary year-to-year based on your job (retail) or annualized salary (nonretail), and the fair market value of Starbucks stock on the grant date. ? Log in to Fidelity at netbenefits. on December 2 or later to view your specific reward. ? If this is your first Bean Stock reward or you've received previous Bean Stock rewards but have not logged in, you will be prompted to activate your Fidelity account prior to logging in at netbenefits.; select REGISTER NOW and click ACTIVATE.

Will the RSUs be eligible for cash dividends before they vest? No, RSUs are not eligible to receive cash dividends. Only after vesting will the net shares you receive upon vesting be eligible to receive future dividends.

When will I learn more about my Bean Stock reward? ? Visit the Bean Stock page on Go to partners to watch the Bean Stock videos and learn more. ? Eligible partners will receive their personalized reward packets with the specific terms of the Bean Stock reward beginning in February.

What about past Bean Stock grant rewards? For partners who received a Bean Stock RSU grant last year, upon vesting of RSUs the net shares of Starbucks stock are deposited into the individual section of your Fidelity account. If you received Stock Options grants in years prior, the options are exercisable (for cash or actual shares of Starbucks stock) upon vesting. Prior grants vest on the following dates: ? November 15 ? The 2010 Bean Stock Restricted Stock Units (RSU) grant vests the first 50 percent. ? November 16 ? The 2009 Stock Option grant at $22.06 vests the second 25 percent. ? November 17 ? The 2008 Stock Option grant at $8.64 vests the third 25 percent. ? November 19 ? The 2007 Stock Option grant at $22.87 vests the last 25 percent. Where can I go for more information? ? Contact Fidelity online at netbenefits.. ? You may also speak to a Fidelity Representative at (866) 697-1048 from 2 p.m. Sunday through 9 p.m. Friday, Pacific. Every effort has been made to communicate this benefit information clearly and in easily understandable terms. If there is any discrepancy between the information set forth above and the legal plan and trust documents, the terms of the legal plan and trust documents always govern. Starbucks must also reserve the right to amend or terminate any benefit plan referred to herein in accordance with its terms.

? 2011 Starbucks Coffee Company. All Rights Reserved. Company Confidential. For Internal Use Only.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download