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*% EBITDA
(Achieved vs Target)

% Bonus
(% Base Salary)Less than 100%

Discretionary100%

35.0% payout100% + $1.0 million

50.0% payout100% + $1.8 million

75.0% payout


FY 2004 & Beyond*% EBITDA
(Achieved vs Target)

% Bonus
(% Base Salary)Less than 100%

Discretionary: up to $37,500100%

50.0% payout125%

67.0% payoutGreater 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

Share Exercise Price100,000

$
0.01/share75,000

$
1.78/share50,000

$
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       
|By:                    |  | /s/ Anthony J. Gioia
|Title:                 |  | President, CEO      

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