EX-10.1 2 v09553exv10w1.txt EXHIBIT 10.1 EXHIBIT 10.1 May 25, 2005 Mr. Michael Casey 2401 Utah Avenue S. Seattle, WA 98134 Dear Michael: This document is designed to provide you with information regarding the terms and conditions of your employment as executive vice president, chief financial officer and chief administrative officer of Starbucks Corporation. Base Salary You will continue to be paid bi-weekly at a base salary that annualizes to $575,000. Bonus You will continue to participate in the Executive Management Bonus Plan at an incentive target of 50% of your eligible base salary. Stock Awards You will continue to be eligible to receive stock awards under the Key Employee Stock Plan. Management Deferred Compensation Plan You will continue to be eligible to participate in the Management Deferred Compensation Plan (MDCP) if you are on our U.S. payroll. Executive Life Insurance You will continue to receive the maximum partner life coverage benefit paid for by Starbucks of $1,000,000. Insider Trading As executive vice president, chief financial officer and chief administrative officer of Starbucks, you will continue to be prohibited from trading Starbucks securities (or, in some circumstances, the securities of companies doing business with Starbucks) from time to time in accordance with the Company's Insider Trading Policy and Blackout Procedures, a copy of which you have been provided. Coffee Hedging As an officer of Starbucks, you are prohibited from trading in coffee commodity futures for your own account. Other Benefits You will continue to be eligible to participate in the benefits, savings and stock programs outlined in Your Special Blend, a copy of which has been provided to you. Please note that although it is Starbucks intention to continue these plans, they may be amended or terminated at any time without notice. "At will" employment You will remain employed "at will," meaning that either you or Starbucks can end the employment relationship at any time, for any reason not prohibited by law. Non-Competition Agreement You will continue to be bound to the terms and conditions of the Non-Competition Agreement, dated August 1, 1995, between you and Starbucks. Mr. Michael Casey May 25, 2005 Page 2 Miscellaneous This letter, and the agreements and documents referred to herein, constitute the entire agreement regarding your employment with Starbucks and supersede all prior or contemporaneous agreements or arrangements, written or oral, concerning your employment. This letter will be governed by the laws of the State of Washington, without regard to such state's conflicts of laws rules. * * * * * Warm regards, /s/ James L. Donald ----------------------- James L. Donald president and chief executive officer Accepted by: /s/ Michael Casey 5/25/05 ----------------------- ------------------ Michael Casey Date cc: Partner File