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TULLY'S COFFEE CORPORATION
SUMMARY OF EMPLOYMENT

Name:   Kristopher S. Galvin ("Employee")
Position:
 
Vice President, Chief Financial Officer
Reports To:
 
President, Chief Executive officer
Responsibilities:
 
Responsibilities include all aspects of the financial affairs of the Tully's
Coffee Corporation ("Company"), including the Retail, Wholesale and
International business units. Officer of the Company. Member of Executive
Leadership Team. Secretary to the Board of Directors.
Base Salary:
 
$150,000.00 annually. Employee shall receive an annual performance appraisal and
be eligible for salary adjustments.
Car Allowance:
 
$600.00/month and subject to statutory tax withholdings.
Bonus Potential:
 
Employee shall be eligible for an annual bonus award (percentage of base salary)
based on a Board approved EBITDA target for each fiscal year. The annual bonus
award and payout is at the sole discretion of the Board. The payout targets will
be as follows:

FY 2003*

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% EBITDA
(Achieved vs Target)

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  % Bonus
(% Base Salary)

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Less than 100%   Discretionary 100%   35.0% payout 100% + $1.0 million   50.0%
payout 100% + $1.8 million   75.0% payout

FY 2004 & Beyond*

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% EBITDA
(Achieved vs Target)

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  % Bonus
(% Base Salary)

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Less than 100%   Discretionary: up to $37,500 100%   50.0% payout 125%   67.0%
payout Greater than 125%   67.0% plus sliding scale

    Note: There will be a ratable calculation for bonus payout between EBITDA
hurdles.
Benefits:
 
Employee eligible for participation in Company's executive benefit program
including medical, dental, vision and death benefits.
Options:
 
Employee shall receive the following non-qualified options subject to the
vesting, exercise and other general terms and conditions contained in the
Company's 1994 Stock Option Plan:

# Shares

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  Share Exercise Price

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100,000   $ 0.01/share 75,000   $ 1.78/share 50,000   $ 2.50/share

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    Note: Additional option grants may be issued from time to time as
recommended by the CEO and approved by the Board.
Severance:
 
Employee shall receive six (6) months severance (of annual base salary) if
terminated by Company. Executive shall not receive severance if terminated for
cause, nor if executive voluntarily resigns. Termination for cause shall
include: (1) felony conviction, (2) employee theft, fraud, or gross dishonesty
(3) moral turpitude, (4) willful insubordination or (5) any action that is
injurious to the Company's reputation or business. Employee must sign the
Company's standard employee release document to receive severance. Severance
payout shall be made monthly in accordance with Company's normal payroll policy.
Term:
 
Employment may be terminated by either Employee or the Company on 30 days
written notice, subject to the severance provisions as outlined above.
Other:
 
Employee is subject to the Company's standard Confidentiality Agreement.

Tully's Coffee Company   Employee
Date:
 
June 21, 2002
 
Date:
 
June 21, 2002
By:
 
/s/ Anthony J. Gioia

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By:
 
/s/ Kristopher S. Galvin

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Title:   President, CEO   Title:   VP, CFO

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TULLY'S COFFEE CORPORATION SUMMARY OF EMPLOYMENT