-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UYXuli5r+/PqefsMVYq+GlOc5PhfnnupSSLba/bAS2Qse7TB6PHGNv916QPuuWal XNq0inqC9QDdDzOwPR7RFw== 0001209191-07-009489.txt : 20070213 0001209191-07-009489.hdr.sgml : 20070213 20070212171734 ACCESSION NUMBER: 0001209191-07-009489 CONFORMED SUBMISSION TYPE: 4 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070208 FILED AS OF DATE: 20070212 DATE AS OF CHANGE: 20070212 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: SCHULTZ HOWARD D CENTRAL INDEX KEY: 0000901737 FILING VALUES: FORM TYPE: 4 SEC ACT: 1934 Act SEC FILE NUMBER: 000-20322 FILM NUMBER: 07604341 BUSINESS ADDRESS: BUSINESS PHONE: 2064471575 MAIL ADDRESS: STREET 1: 2401 UTAH AVE SOUTH CITY: SEATTLE STATE: WA ZIP: 98134 ISSUER: COMPANY DATA: COMPANY CONFORMED NAME: STARBUCKS CORP CENTRAL INDEX KEY: 0000829224 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING & DRINKING PLACES [5810] IRS NUMBER: 911325671 STATE OF INCORPORATION: WA FISCAL YEAR END: 1002 BUSINESS ADDRESS: STREET 1: P O BOX 34067 CITY: SEATTLE STATE: WA ZIP: 98124-1067 BUSINESS PHONE: 2064471575 MAIL ADDRESS: STREET 1: 2401 UTAH AVENUE SOUTH CITY: SEATTLE STATE: WA ZIP: 98134 4 1 doc4.xml FORM 4 SUBMISSION X0202 4 2007-02-08 0 0000829224 STARBUCKS CORP SBUX 0000901737 SCHULTZ HOWARD D 2401 UTAH AVENUE SOUTH SEATTLE WA 98134 1 1 0 0 chairman Common Stock 2007-02-08 4 J 0 3567615 D 13437181 D Common Stock 124144 I By Family Foundation Put Equivalent Position (Right to Sell) 2007-02-08 4 J 0 6756164 D Common 6756164 0 D See Exhibit 99 Howard Schultz, by Andrew M. Paalborg, His Attorney-in-Fact 2007-02-12 EX-99.4_172029 2 attachment.txt EX-99 DOCUMENT EXHIBIT 99 (1) On March 28, 2001, Mr. Schultz entered into a previously reported variable prepaid forward contract with an unaffiliated third-party buyer (the "Buyer"). Mr. Schultz pledged 6,756,164 (split adjusted) shares of Common Stock to secure his obligations under the Contract. On February 17, 2004, Mr. Schultz and the Buyer amended the contract (as amended, the "Contract"). The Contract had a maturity date of March 16, 2007. Pursuant to the Contract, at maturity a "Settlement Price" was to be determined based on the average of the closing sale prices of the Common Stock from March 12, 2007 through March 16, 2007, and Mr. Schultz was obligated to deliver to the Buyer a number of shares determined by multiplying a "Delivery Ratio" by the 6,756,164 shares (or an equivalent amount of cash, if elected by Mr. Schultz). The Delivery Ratio was to be determined as follows: (1) if the Settlement Price is less than or equal to the Floor Price (which was $17.2679, split adjusted), then the Delivery Ratio is 1; (2) if the Settlement Price is greater than the Floor Price but less than the Ceiling Price (which was $35.6869, split adjusted), then the Delivery Ratio is the Floor Price divided by the Settlement Price; and (3) if the Settlement Price is equal to or greater than the Ceiling Price, then the Delivery Ratio is the Settlement Price minus the Ceiling Price, plus the Floor Price, divided by the Settlement Price. In exchange for assuming this obligation, Mr. Schultz received a cash payment of $55,180,969 as of the date of entering into the Contract. Mr. Schultz and the Buyer further amended the Contract, effective as of February 8, 2007, to provide that: (1) the Settlement Date would be accelerated to February13, 2007 and (2) the Contract would be settled by the delivery of 3,567,615 shares of Common Stock. The number of shares required to be delivered was calculated as follows. The Settlement Price was based on the volume-weighted average price of the Common Stock on February 8, 2007 less $0.01, which was $33.3173. Because the Settlement Price was greater than the Floor Price but less than the Ceiling Price, the Delivery Ratio was determined by dividing the Floor Price by the Settlement Price with an adjustment for early settlement of the Contract. As a result of the settlement of the Contract, Mr.Schultz is not required to deliver 3,188,549 of the originally Pledged Shares; as of the Settlement Date, these remaining 3,188,549 shares are no longer subject to the terms of the Contract. 18177-0057/LEGAL13005523.2 -----END PRIVACY-ENHANCED MESSAGE-----