Starbucks Canada Tuition Reimbursement FREQUENTLY ASKED QUESTIONS

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1 Starbucks Canada Tuition Reimbursement FREQUENTLY ASKED QUESTIONS The following FAQ has been developed to assist you with any questions you may have about the Canada Tuition Reimbursement Program. It is divided into the following sections: Introduction Eligibility Expenses eligible for reimbursement Course qualification Applying for a tuition reimbursement benefit Tuition reimbursement benefit amount Submitting expenses for reimbursement Tuition reimbursement benefit taxation General questions Q. What s happening and when? A. Starbucks partners on the Canada payroll who plan to hit the books in January 2005 or later may be eligible for Starbucks new tuition reimbursement program. This benefit can help partners with some of their costs when they successfully complete pre-approved courses. Q. Why is Starbucks offering a tuition reimbursement benefit? A. Starbucks is launching a tuition reimbursement program in Canada in response to partner feedback and in support of partner growth and development. The tuition reimbursement program recognizes the contributions made by partners to Starbucks success, adds to a great work environment and promotes the shared responsibility between Starbucks and you for individual and company success. It s one more great benefit that makes up your Total Pay and helps Starbucks rank as one of the Best Places to Work. Q. How did Starbucks decide eligibility, benefit level and other design features? A. With the launch of our Canadian Tuition Reimbursement Program, Starbucks joins a very small handful of retail companies that offer this type of benefit to part-time as well as full-time employees. It is projected that our program, after applying eligibility criteria, will assist more than 2,000 partners in 2005 with the costs of education. Once we have a better understanding of Starbucks partner actual participation rates, we

2 will review the plan design features, including eligibility and benefit levels, to assess if any changes are appropriate. Q. Who administers Starbucks tuition reimbursement plan? A. Total Pay in Canada administers the tuition reimbursement program via the Canadian Total Pay Helpline. This includes approving or denying course and tuition reimbursement requests based on criteria established by Starbucks and the administrative system, toll-free number and customer service necessary to deliver tuition reimbursement benefits to partners. Q. Who is eligible to participate in this program? A. To participate, you must meet four eligibility criteria: be a partner on the Canada payroll and actively employed with Starbucks when reimbursement is processed, have a minimum of one continuous year of service from your most recent date of hire, be considered eligible for Starbucks Benefits programs (what Starbucks refers to as Benefits eligible ) at the time of class approval, and earn at least a C grade pr pass in pass/fail classes Q. What does it take to become eligible for Starbucks Benefits? A. Following hire, at the end of each month Starbucks checks your eligibility for benefits by reviewing the number of your paid hours. You become eligible for benefits on the first day of the second month after you have been paid for at least 160 hours by the last Friday of a two month period. For example, if you receive paycheques in July and August totaling at least 160 hours, you become eligible for Benefits the first of October. Q. What does it take to maintain my eligibility for Starbucks Benefits? A. Once you have established benefits eligibility, you need to be paid at least 240 hours each calendar quarter to remain eligible. Paid hours are all hours that are paid to you on pay dates that occur between the first day and the last day of the calendar quarter. Your paid hours are shown on your pay stub as quarter-to-date (QTD) hours. You must have 240 QTD hours by the last paycheque of the quarter to remain benefits eligible. If you lose benefits eligibility because your paid hours fell below the 240 threshold, you can become eligible again if you increase your hours. After you are paid 240 hours in a calendar quarter, your eligibility will

3 begin one month after the end of the quarter. For example, if you are paid 240 hours October through December, your benefits eligibility will begin on February 1. If you have any questions regarding Benefits eligibility or your Benefit plans, call the Canadian Total Pay helpline at Q. Do I have to remain Benefits eligible throughout the entire course? A. No. You only need to be Benefits eligible at the time your course starts. Q. I thought I was Benefits eligible, but have been told I am not. Who can I talk to about this? A. Speak with a representative at the Canadian Total Pay helpline at Q. What expenses/fees are eligible for reimbursement? A. The cost of tuition, books, class-required supplies, exam fees and lab fees charged to all students for the approved course are eligible expenses. Correspondence courses and online courses may qualify for tuition reimbursement. Q. What expenses are not eligible? A. Expenses not listed above are not covered. This would include, but is not limited to, parking, late registration fees, purchase of a personal computer, and general school supplies. In addition, expenses related to professional meetings, workshops, conventions, licensures, insurance costs, and preparation for tests are not covered. Q. What education institutions qualify under this program? A. Accredited national and regional educational institutions qualify under this program. Q. What courses and/or programs qualify? A. Accredited courses relating to your current position or potential future opportunities with Starbucks a GED, undergraduate, post-baccalaureate or eligible certificate program will be considered for approval. A course that does not support Starbucks business will only qualify when that course is required in the pursuit of a qualifying degree. Q. What is accreditation?

4 A. Accreditation is a status granted to educational institutions found to either meet or exceed academic quality standards established by an accrediting agency through an assessment process. Q. Why does Starbucks Tuition Reimbursement Program require accreditation? A. Accreditation assures you and Starbucks that the course and/or educational institution meets academic quality standards, including academic core values of performance, integrity and quality assurance. Q. How do I find out if the course I want to take qualifies? A. When you apply for a tuition reimbursement benefit, a Starbucks Tuition Reimbursement Center representative will review your application to confirm you meet the eligibility criteria as outlined earlier and confirm the course you have submitted qualifies under Starbucks plan. A letter confirming approval or denial will be mailed to you at your home address following a review of your application. Q. How do I apply for a tuition reimbursement benefit? A. Apply online by accessing select Canada, click on Tuition Reimbursement, and access the Tuition Reimbursement Application Form. If you do not have access to the Internet, you may request an application form be mailed to you by calling the Canadian Total Pay Helpline toll free at Fax the completed form to the Canadian Total Pay Helpline at or mail to Vancouver Regional Office MS 150 Attention: Tuition Reimbursement, West 6 th Ave. Vancouver, BC. V5Y 1K6. New applications are required for each term and school. Incomplete applications cannot be processed and will be denied, in which case a new complete application will need to be submitted. Q. What information do I need to apply? A. Here is a check list of what you will need to apply: Your address Your school's name and street address

5 For each course, the course/certificate number, name, and credit hours For each course, cost of tuition, books, class-required supplies and lab fees Cost of registration and other covered fees Source and amount of financial aid you will be receiving from other sources Major and degree or certificate program name The actual term/program start and end dates Q. What is the application deadline? A. Your application must be submitted for approval prior to the first day of class. In addition, you may not apply more than 30 days prior and/or 21 days after the first day of class. Q. Can I apply for more than one course at a time? A. Yes, however the tuition reimbursement program does have a maximum calendar year reimbursement amount. Q. What different methods of taking a course qualify? A. You may complete your course study in class, by video, online (e.g., via the Internet) or self-study. On the application form, select from the following options in the Program Location field: Traditional (in class) Video Online (e.g., via the Internet) Other (self-study) Q. I am taking a course for a certificate. What should I enter in the School field on the application page/form? A. Please enter the name of the institution you are taking the course through. Q. What if I am attending more than one school? A. Separate application forms must be submitted for each institution that you are attending. Q. How long does the application approval process take? A. Once your application has been successfully completed and submitted to Starbucks Tuition Reimbursement representative for processing, it will be reviewed within four business days. Once reviewed, a letter confirming the

6 approval or denial of your application will be mailed to you. You may follow up on your application status by contacting the Canadian Total Pay Helpline at Q. How much is reimbursed? A. The maximum reimbursement is based on your position and length of continuous services at the beginning of each calendar year as shown below: Partner Position Continuous Length of Service as of January 1 each year Maximum Calendar year reimbursement All levels Less than 36 months $ but less than 60 months $ months or more $1,000 Q. How is the amount of my reimbursement benefit determined? A. Your reimbursement amount is determined annually. On the first day of each January, your length of service is calculated and that establishes your benefit for the calendar year. For example, if your hire date was June 28, 2001, you completed 30 months of service on January 1, This would qualify you for a $500 maximum benefit during the 2004 calendar year. On January 1, 2005, you will have completed 42 months of service, qualifying you for a $750 maximum benefit during calendar year Q. I was hired April 3, I won t have a year of service on January 1, Am I eligible for a tuition reimbursement benefit in 2005? A. You would become eligible for a benefit on April 3, 2005 when you have completed one year of service. The amount of your reimbursement benefit would be $500 because you have less than 36 months service. Q. What if I receive additional educational assistance, such as a scholarship? A. Any other educational assistance received through a scholarship, fellowship, grant, or similar means for expenses covered by Starbucks Tuition Reimbursement program must be reported on the application form. Financial assistance meant to cover eligible expenses (e.g., tuition, books, etc.) will be applied against your total eligible expenses first, then any ineligible expenses (e.g., meals, parking, etc.) if applicable. These funds may reduce your tuition reimbursement amount. Q. My tuition reimbursement application was approved in August 2004 and my last day of class was December 14, I did not receive my grades until

7 January 20, Will my reimbursement apply against my 2004 benefit or my 2005 benefit? A. In this example, your reimbursement will apply against your 2004 benefit. The date of your last day of class determines the year against which your reimbursement will apply. Q. My application for a tuition reimbursement benefit was approved. I have completed my course. What do I need to do to receive reimbursement for my eligible expenses? A. To be eligible for reimbursement payment you must submit the following within 60 days from the last day of the course: a reimbursement request form found at the original of a passing grade report of C- or better or a pass for a pass/fail course, and original receipts of all eligible pre-paid expenses. Send this information via fax to the Canadian Total Pay Helpline at or mail to Toronto Regional Office MS 4000 Attention: Tuition Reimbursement, Yonge Street, Toronto, ON M2N 6L7 Q. Will I still receive a reimbursement if I only partially pay my eligible expenses? A. Yes, you will. However, you will only receive reimbursement up to the amount you pre-paid, or your maximum reimbursement benefit amount you are entitled to whichever is less. Q. What if my employment with Starbucks ends before I receive my grades or reimbursement? A. You will forfeit any tuition reimbursement benefit. To receive reimbursement, you must remain employed with Starbucks through the date your reimbursement is processed by Starbucks Payroll Department. Q. Is the amount reimbursed subject to tax? A. The current reimbursement benefit is not taxable if the course/training is primarily for the benefits of Starbucks. Q. How do I determine if a course that I m interested in relates to my current or potential future opportunities with Starbucks?

8 A. To determine if a course relates to your current or potential further opportunities with Starbucks consider the following questions: A. Is the course part of a study program, which can qualify you for a new job, position, trade or business opportunity within Starbucks? job? B. Is the course required to meet the minimum requirements for your current job? C. Is this course required by Starbucks Coffee Company or by law or regulation for you to keep your current job? D. Does this course maintain or improve skills required in your current Q. Are there any deadlines for the program? A. Yes. Your completed application must be submitted between 30 days prior and 21 days after the start of your course. All documentation (grades, receipts, and financial aid information) must be submitted within 60 days of the last day of class. Q. Where can I get an application? A. Beginning in March 2005 you may access applications at Select Canada and Tuition Reimbursement to access an application form. Q. When may I take courses? A. You may take courses on your own time. Q. What if I need to drop a class that I am taking? A. Please notify Starbucks Tuition Reimbursement representative at that you are dropping the class. You will not be eligible for reimbursement for any courses you drop. Q. What do I need to do if I move? A. To change either your work or home address, please complete and submit a personal information change PAN to PAN- PROD@starbucks.net. Your change of address will be electronically updated with the Canadian Total Pay Helpline within two weeks of Starbucks processing your change. Q. What if I have a change in my employment status?

9 A. If you transfer positions within Starbucks without a break in your employment, your tuition reimbursement benefit will not be impacted. If you take an approved leave of absence your tuition reimbursement benefit will not be impacted. If you leave Starbucks for any reason prior to course commencement, completion or before you are reimbursed for an approved course, you will forfeit any reimbursement benefit you might have otherwise received had you remained employed. Q. Who can I talk to if I disagree with my calendar year maximum reimbursement amount, the denial of my application, or expenses denied for reimbursement? A. You may speak with a Starbucks Tuition Reimbursement representative at Q. Will the eligibility criteria and program benefits always remain the same? A. Not necessarily. After gaining actual experience with the program, Starbucks may adjust eligibility criteria, approved courses and degrees, and benefit levels. Starbucks currently intends for the program to continue for the foreseeable future, but circumstances could change and Starbucks has the right to discontinue the program at any time. Q. Who do I call if I have additional questions? A. Please contact the Canadian Total Pay Helpline at

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