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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*

	% EBITDA

(Achieved vs Target)
	 	% Bonus

(% Base Salary)

	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*

	% EBITDA

(Achieved vs Target)
	 	% Bonus

(% Base Salary)

	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
 
	 	Share Exercise Price

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










	 	 	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
	
 	

By:	
 	

/s/ Kristopher S. Galvin

	Title:	 	President, CEO	 	Title:	 	VP, CFO











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TULLY'S COFFEE CORPORATION SUMMARY OF EMPLOYMENT