Document:

Limited Partnership Agreement

 Exhibit 10.1 
 Confidential 
 LIMITED PARTNERSHIP AGREEMENT

 THIS LIMITED PARTNERSHIP AGREEMENT is made this 21st day of December 2007, by and between Tully’s Coffee Asia Pacific, Inc., a Nevada
Corporation, as the General Partner (“TCAP”) and Asia Food Culture Management Pte Ltd, a Singapore company, as Limited Partner (“AFCM”). 
 Explanatory Statement 
 The business and purposes of the Partnership are to expand the Tully’s brand throughout
the territories designated under the October 12, 2007 license agreement with Tully’s Coffee Corporation (“Tully’s”), including, but not limited to, franchise activities, the opening of Company-operated and or
franchised stores, selling coffee, ready to drink beverages, and related activities (“Franchise Activities”), and such other businesses and purposes as the Partners may from time to time determine in accordance with Section 8
of this Agreement. In order to accomplish their aforesaid desires, the parties hereto desire to join together in a United States limited partnership, registered in the state of Washington, under and pursuant to the Washington Uniform Limited
Partnership Act, RCW 25.10, as amended from time to time (the “Act”). 
 NOW THEREFORE, in consideration of their mutual promises,
covenants, and agreements, and the Explanatory Statement, which Explanatory Statement is incorporated by reference herein and made a substantive part of this Partnership Agreement, the parties hereto do hereby promise, covenant and agree as follows:

 SECTION 1. DEFINITIONS 
 Throughout this Limited
Partnership Agreement, and unless the context otherwise requires, the word or words set forth below within the quotation marks shall be deemed to mean the words which follow them: 
 1.1 “Affiliate” – Each Person who and entity which, directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with a
Partner, each officer and director of a Partner and each other person having decision-making authority for a Partner. 
  

	1.2	“Agreement” – This Limited Partnership Agreement. 

 1.3 “Bankruptcy” – The filing by a Partner of a petition commencing a voluntary case under the Bankruptcy Code; a general assignment by a Party for the benefit of creditors; an
admission in writing by a Partner of his inability to pay his debts as they become due; the filing by a Partner of any petition or answer in any proceeding seeking for himself or consenting to, or acquiescing in, any insolvency, receivership,
composition, readjustment, liquidation, dissolution, or similar relief under any present or future statute, law or regulation, or the filing by a Partner of an answer or other pleading 

			
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admitting or failing to deny, or to contest, the material allegations of the petition filed against him in any such proceeding; the seeking or consenting to,
or acquiescence by a Partner in, the appointment of any trustee, receiver, or liquidator of him, or any part of his property; and the commencement against a Partner of an involuntary case under the Bankruptcy Code, or a proceeding under any
receivership, composition, readjustment, liquidation, insolvency, dissolution or like law or statute, which case or proceeding is not dismissed or vacated within 60 days. 
 1.4 “Capital Account” – The account established for each Partner on the books of the Partnership pursuant to Section 5.5. Any reference to the Capital Account of a Partner
shall include the Capital Account of a predecessor holder of the interest of the Partner, or a proportionate share of that Capital Account if the Partner has succeeded to less than all of the predecessor’s interest. 
 1.5 “Capital Contribution” – The total amount of money and the fair market value of property (net of liabilities secured by such
property that the Partnership is considered to assume or take subject to under Code Section 752) actually contributed to the Partnership by each Partner pursuant to the terms of this Agreement. Any reference to the Capital Contribution of a
Partner shall include the Capital Contribution made by a predecessor holder of the interest of the Partner. 
 1.6
“Certificate” – The separate certificate of limited partnership which is required, under RCW 25.10.080, to be executed and filed in the office of the Secretary of State to form the Partnership as a limited
partnership under the laws of the State. 
 1.7 “Code” – the Internal Revenue Code of 1986, as amended; and
“Regulations” means the Treasury Regulations promulgated under the Code. 
 1.8 “General Partner” –
TCAP, any person or other entity substituted for it, and any additional General Partner admitted to the Partnership pursuant to this Agreement. 
 1.9
“Limited Partner” – AFCM, any Persons or other entity substituted for him, and any additional Limited Partners admitted to the Partnership pursuant to this Agreement. 
  

	1.10	“Partner” – Either a General Partner or Limited Partner. 

  

	1.11	“Partnership” – This limited partnership. 

 1.12 “Partnership Interest” – For any Partner, the number of Units owned by the Partner divided by the aggregate number of Units owned by all Partners. 
 1.13 “Persons” – Individuals, partnership, corporations, unincorporated associations, trusts, estates and any other type of entity.

  

	1.14	“Secretary of State” – The secretary of state of the State. 

			
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 1.15 “State” – The State of Washington. 
 1.16 “Managing General Partner” – The Managing General Partner as set forth in Section 8.1.3. 
 1.17 “Unit” – An interest in the Partnership which entitles the holder to that percentage of each item of the
Partnership’s gain, income, loss, deduction, credit, or other tax items which is equal to one (1) divided by the total number of Units owned by all Partners considered in the aggregate. 
 1.18 “Days” and “Business Days” – All references to “days” shall mean actual days. All references to
“business days” shall mean Monday through Friday. Both definitions shall exclude national holidays in the United States for the purposes of tolling timelines. 
 SECTION 2. ORGANIZATION 
 2.1 Formation. The parties agree to form a limited partnership pursuant to the
terms and conditions contained in this Agreement. Except as otherwise provided in this Agreement, the rights and liabilities of the Partners will be governed by the Act. 
 2.2 Name. The name of the Partnership shall be Tully’s Coffee Asia Pacific Partners, LP. 
 2.3 Principal
Place of Business, Registered Office, and Agent. The principal office and place of business of the Partnership (the “Office”) shall be located at 3100 Airport Way South, Seattle, WA 98134. The Partnership shall have such other
or additional offices as the Partners may, from time to time, determine in accordance with Section 8 of this Agreement. The General Partner may from time to time designate a different principal place of business or establish additional places
of business either within or outside the State. If the General Partner establishes a place of business outside the State, it will be required to qualify the Partnership to conduct business as a limited partnership in any such foreign jurisdiction.
The Partnership will maintain an office at its principal place of business at which it will maintain all records it is required to maintain pursuant to RCW 25.10.050. The General Partner will be the Partnership’s agent for service of
process in the State. The General Partner’s address for that purpose will be the address of the Partnership’s principal place of business. The General Partner may from time to time designate a different registered agent by filing with the
Secretary of State an amendment to the Certificate in the manner required by the Act. 
 2.4 Certificate of Limited Partnership; Fictitious-Name
Statements. The General Partner will execute the Certificate and cause it to be filed in the office of the Secretary of State, as required by the Act. In addition, the General Partner will execute, and cause to be filed in the appropriate
offices, any fictitious-name or doing-business statements or registrations that may be required by the laws of any state, and any other certificates or documents the General Partner deems necessary or appropriate to comply with the requirements for
qualification and operation of limited partnerships under the laws of the 

			
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State or of any locality or any other jurisdiction in which the Partnership does business or owns property. Any such statement, registration, certificate, or
document may be executed on behalf of any Partner by its attorney-in-fact. 
 SECTION 3. PURPOSES 
 3.1 Business and Purpose. The business and purposes of the Partnership are to expand the Tully’s brand throughout the territories set forth in Exhibit A
hereto (each a “Territory” and collectively, the “Territories”), including, but not limited to, the Franchise Activities, the opening of franchise stores, franchise kiosks, the opening and operating of
retail stores owned in part or in whole by the Partnership, the wholesale sale of coffee, ready to drink beverages and other Tully’s-branded products, and related activities, and such other businesses and purposes as the Partners may from time
to time determine in accordance with Section 8 of this Agreement and as may be permitted under licenses and other agreements from Tully’s Coffee Corporation and its affiliates. Such businesses and purposes may be conducted directly by the
Partnership, and they may be conducted through one or more corporations or other entities established and owned by the Partnership. 
 3.2 Authority of
the Partnership. The Partnership may also do and engage in any and all other things and activities and have all powers incident to the said expansion, or any part or parts thereof, including, by way of illustration and not by way of limitation,
arranging for and delivering contracts of sale, deeds, leases, deeds of trust, ground leases, mortgages, notes and other evidence of indebtedness, security agreements, and other security instruments; entering into agreements for the licensing,
franchising, sale, and development of the Tully’s brand; and doing all things reasonably incident to the development and management of the Tully’s brand. 
 SECTION 4. TERM 
 The Partnership shall commence upon the date of this Agreement, as set forth above. Unless sooner terminated pursuant to
the further provisions of this Agreement, the Partnership shall continue in perpetuity throughout the activities set out in Section 3, and may continue past that time if so agreed. 
 SECTION 5. CAPITAL CONTRIBUTIONS 
 5.1 Capital Commitments. Each Partner, upon admission to the
Partnership, shall be deemed to have made a “Capital Commitment” equal to the following US dollar amounts set forth after their respective names. The Capital Commitment of a Partner shall represent the maximum aggregate amount of cash and
property that such Partner shall be required to contribute to the capital of the Partnership and without such Partner’s consent, shall not be changed during the term of the Partnership. 
  

				
	 General Partner
	  	$	9,000,000.00
	 Limited Partner
	  	$	6,000,000.00

			
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 5.1.1 General Partner’s Capital Contribution. General Partner’s Capital Contribution shall be due
and payable at the time of the General Partner’s admission to the Partnership in the form of the following, which, for the purpose of this Agreement, the parties have agreed the value shall be $9,000,000.00: 
  

	 	•	 	 Assignment of General Partner’s rights and interest in the License Agreement, which includes a provision for Roasting Rights, dated as of October 12, 2007
with Tully’s Coffee Corporation (the “Tully’s License Agreement”). 

 5.1.2 Limited Partner’s
Capital Contribution. Limited Partner’s initial Capital Contribution shall be in the form of $250,000 cash and a promissory note for $2,750,000 payable to the Partnership in the form attached hereto as Exhibit B, due and payable at
the time of the Limited Partner’s admission to the Partnership (“Limited Partner’s Initial Capital Contribution”). 
 5.1.3 Limited Partner’s Additional Capital Contribution. Capital Contributions in respect of and in proportion to (but not to exceed) the Limited Partner’s remaining Capital Commitment shall be due and payable no later than
March 31, 2008 (the “Commitment Period”), provided however, that General Partner, in its sole discretion, may accept such additional Capital Contributions by Limited Partner at any time prior to the Commitment Period.

 5.1.4 Failure to Make Capital Contributions. 
 (a) Event of Default. If Limited Partner fails to make all or any portion of a Capital Contribution when due, then it shall (i) be deemed a “Defaulting Limited Partner” and the following provisions of this
Section 5.1.4 shall apply. The General Partner, in its sole and absolute discretion, may choose not to designate Limited Partner as a Defaulting Limited Partner and may agree to waive or permit the cure of such default, subject to such
conditions as the General Partner and Limited Partner may agree upon. 
 (b) Interest of Overdue Amounts. A Defaulting Limited Partner
may, in the sole discretion of the General Partner, be required to pay to the Partnership interest on the past due amount at an annual rate equal to 10 percent (10%), compounded monthly (which interest shall be treated as income of the Partnership
and not as a Capital Contribution by the Defaulting Limited Partner) from the date such balance was due and payable through the date full payment for such contribution is actually made. 
 (c) Loss of Voting Rights. The General Partner may, in is sole discretion, declare that whenever the vote, consent or decision of a Limited Partner
or of the Partners is required or permitted pursuant to this Agreement, except 

			
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as required by the Act, a Defaulting Limited Partner shall not be entitled to participate in such vote or consent, or to make such decision, and such vote,
consent or decision shall be tabulated or made as if such Defaulting Limited Partner were not a Partner. 
 (d) Additional Remedies. If
a Defaulting Limited Partner fails to make all or any portion of a Capital Contribution within ten (10) business days after the original due date thereof, the General Partner shall give the Defaulting Limited Partner written notice of the
failure. The Defaulting Limited Partner shall then have ten (10) business days to remedy such failure. If the Defaulting Limited Partner fails to remedy such default within such ten (10) business day period, then the General Partner may
elect to impose any one or more of the following remedies: 
 (i) The General Partner may reduce such Defaulting Limited Partner’s
Capital Account balance by the interest due under Section 5.1.4(b); 
 (ii) The General Partner may cause the Partnership to commence
proceedings against the Defaulting Limited Partner to collect the due and unpaid Capital Contribution as well as (x) the interest due under Section 5.1.4(b); and (y) the expenses of collection including attorneys fees. Any such
amounts collected in excess of the Defaulting Limited Partner’s due and unpaid Capital Contribution shall be deemed for purposes of this Agreement to be income of or a reimbursement to the Partnership, as appropriate, and shall not be treated
as a Capital Contribution by the Defaulting Limited Partner; 
 (iii) The General Partner may designate one or more Persons (with the prior
consent of such Person or Persons) to assume responsibility for (A) the due and unpaid portion of the Defaulting Limited Partner’s Capital Commitment or (B) the entire unpaid portion of the Defaulting Limited Partner’s Capital
Commitment, and to assume and succeed to all of the rights of the Defaulting Limited Partner’s interest in the Partnership attributable to such portion of the Defaulting Limited Partner’s Capital Commitment; 
 (iv) The General Partner may cancel all or any portion of the Defaulting Limited Partner’s unpaid Capital Commitment and adjust the Capital Account
balances of the Partners to cause the Capital Account balance of each Partner to reflect, as closely as possible, the profit and losses allocations that would have been made if the Defaulting Limited Partner’s Capital Commitment had at no time
included the canceled portion thereof; and 

			
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 (v) The General Partner may declare the Defaulting Limited Partner a Defaulting Partner under
Section 16.1. 
 (e) Remedies are Cumulative. The foregoing remedies are cumulative and in addition to and not in limitation of
any other right or remedy of the Partnership provided by law or under this Agreement. 
 5.2 Reduction of General Partner’s Capital Contribution.
Upon the completion of General Partner’s Capital Contribution and as Limited Partner makes Limited Partner’s Initial Capital Contribution and Limited Partner’s Additional Capital Contribution as provided above, the Partnership
shall pay the General Partner (or to Tully’s on its behalf) in one or more installments totaling $3,000,000 in cash to reduce the value of the General Partner’s Capital Contribution amount and the General Partner’s Capital Account
will be accordingly adjusted. The entire amount of Limited Partner’s Initial Capital Contribution and Limited Partner’s Additional Capital Contribution shall be paid to General Partner (or to Tully’s on its behalf) when and as
received by the Partnership, until the total of such payments to General Partner is $3,000,000. After payment to General Partner of a total of $3,000,000 from Limited Partner’s Initial Capital Contribution and Limited Partner’s Additional
Capital Contribution and corresponding adjustments to the General Partner’s Capital Account, the finalized Capital Contributions of the General Partner shall be: 
  

				
	 General Partner
	  	$	6,000,000.00

 5.3 Except as specifically provided in this Agreement, or as otherwise provided by and in accordance with
law to the extent such law is not inconsistent with this Agreement, no Partner shall have the right to withdraw or reduce his or her contributions to the capital of the Partnership. 
 5.4 Capital Accounts. The Partnership will establish and maintain on its books a separate Capital Account for each Partner. The initial balance of the General Partner’s Capital Account will be the amount
of the General Partner’s initial contribution. The initial balance of the Limited Partner’s Capital Account will be the amount of the Limited Partner’s Initial Capital Contribution. Each Partner’s Capital Account balance will be
increased by the Partner’s additional Capital Contributions, by any amounts contributed by the Partner to the Partnership in exchange for additional Units and by the Partner’s distributive share of Partnership income and gain. Each
Partner’s Capital Account balance will be decreased by the Partner’s distributive share of Partnership loss and expense, and by all distributions to the Partner of cash or other property. Each Capital Account will be maintained in
accordance with the rules of Section 1.704-1 and Section 1.704-2 of the Regulations, which provisions are incorporated in the Agreement by this reference. 
 5.5 Right to Cure Partner Defaults. In the event that any Partner (the “Partner-in-Default”) defaults on an obligation that is secured by a security interest in such Partner’s
Partnership Interest (a “Secured Obligation Default”), the Partnership and the other 

			
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Partner shall have the right but not the obligation to pay all such amounts (each the “Cure Amount”) as may be necessary to cure any
Secured Obligation Default. The Partnership shall have the first option to pay any Cure Amount. If the Partnership does not pay the Cure Amount within the lesser of (a) ten (10) days of receiving written notice of a Secured Obligation
Default or (b) the time period permitted for the payment of the Cure Amount under the applicable agreement or document, then the other Partner shall have the right to pay the Cure Amount. In the event that either the Partnership or the other
Partner elect to pay the Cure Amount, such payment shall be deemed to be a loan (each a “Secured Obligation Default Loan”) from the Partnership and/or the other Partner, as applicable, to the Partner-in-Default (the
“Secured Obligation Default”). Any such Secured Obligation Default Loan shall bear interest at rate equal to fifteen percent (15%) per annum until repaid in full. In addition, until a Secured Obligation Default Loan has
been repaid in full by the Partner-in-Default, any and all distribution, dividends or other cash payments otherwise owed to the Partner-in-Default by the Partnership, including without limitation, with respect to General Partner, royalty payable to
the General Partner under the Tully’s License Agreement, shall be paid to the Partnership and/or the other Partner, as applicable, who has made the Secured Obligation Default Loan to the Partner-in-Default. Secured Obligation Default Loans
shall be due and payable upon written demand. If the Partner-in-Default fails to pay a Secured Obligation Default Loan upon written demand, the party making the Secured Obligation Default Loan shall have the right to pursue all legal remedies
available against the Partner-in-Default in order to recover immediate payment of the Secured Obligation Default Loan. Nothing contained in this Section 5.5 is or shall be deemed to be for the benefit of any person or entity other than the
other Partner and the Partnership, and no such person or entity shall under any circumstances have any right to compel any actions or payments by the Partner-in-Default. If any Partner becomes a Partner-in-Default, or determines in its reasonable
judgment that there is an imminent probability that the Partner will become a Partner-in-Default, the Partner shall notify the Managing General Partner and the other Partners in the Partnership. The provisions of this Section 5.5 are applicable
notwithstanding any other provision in this Agreement. 
 SECTION 6. ALLOCATION OF PROFITS AND LOSSES 
 6.1 General Rule. After completion of each Partner’s Capital Commitments, as adjusted as provided herein, the percentages of Partnership Interest of
each of the Partners shall be as follows: 
  

				
	 TCAP
	  	50	%
	 AFCM
	  	50	%

 6.2 Except as provided in Section 7.3. of this Agreement, for purposes of Sections 702 and 704 of the
Code, or the corresponding provisions of any future federal internal revenue law, or any similar tax law of any applicable state or jurisdiction, the determination of each Partner’s distributive share of all items of income, gain, loss,
deduction, credit or allowance of the Partnership for any period or year shall be made in accordance with, and in proportion to, such Partner’s percentage of Partnership Interest as it may then exist. 

			
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 6.3 Transferred Units. For any taxable year of the Partnership, the portion of any item of
income, gain, profit, or loss that is allocable to any Unit which has been transferred during the year in accordance with the provisions of this Agreement will be allocated between the transferor and the transferee of the Unit, based upon the number
of days during the year that each was the owner of the Unit pursuant to the provisions of this Agreement. Except as provided in the last sentence of this Section 6.3, the allocation between transferor and transferee will be made without regard
to when the item, or any portion of the item, was actually realized by the Partnership, and without regard to whether cash distributions were made to the transferor or transferee of the Unit. Notwithstanding any suggestion to the contrary in this
Section 6.3, any item of income, gain, profit, or loss attributable to the sale or other disposition of Partnership assets that is allocable to a Unit that has been transferred will be allocated to the record owner of the Unit as of the time of
the sale or other disposition. 
 SECTION 7. DISTRIBUTION OF PROFITS 
 7.1 Net Cash From Operations. The net cash from operations of the Partnership shall be distributed at such times as may be determined by the Partners in accordance with Section 8 of this Agreement among
the Partners in proportion to their respective percentages of Partnership Interest, provided, however, that no amount of net cash from operations shall be distributed during any fiscal year of the Partnership until after the Partnership has paid any
required installment of the aggregate purchase price pursuant to a right or option of the Partnership to acquire all of the Partnership Interest of a Partner, if any such right or option has been exercised by the Partnership, as provided in Sections
13, 15, or 16 hereof. 
 7.2 Definition. As used in this Section 7, the term “net cash from operations” shall mean: 

7.2.1 The taxable income of the Partnership for federal income tax purposes as shown on the books of the Partnership, increased by (a) the
amount of depreciation and amortization deductions taken in computing such taxable income and (b) any non-taxable income or receipts of the Partnership, and reduced by (i) payments upon the principal of any installment obligations,
mortgages or deeds of trust respecting Partnership assets or of other Partnership debts, and (ii) such expenditures for capital improvements or replacements, such reserves for said improvements and replacements and such reserves for repairs and
to meet anticipated expenses and for working capital as the Partners, in accordance with Section 8 of this Agreement, shall deem to be reasonably necessary in the efficient conduct of the business; plus 

			
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 7.2.2 Any excess funds resulting from the placement, or excess of refinancing of, any
mortgages or deeds of trust on Partnership property or the encumbrancing or financing of such property in any other manner; plus 
 7.2.3
Any other funds (including amounts previously set aside for reserves by the Partners, in accordance with Section 8 of this Agreement, to the extent the Partners, in accordance with Section 8 of this Agreement, no longer regard such
reserves as reasonably necessary in the efficient conduct of the Partnership business) deemed available for the distribution by the Partners, in accordance with Section 8 of this Agreement. 
 7.2.4 In determining the amount of net cash from operations any negative balances in any category described in Section 7.2.1., 7.2.2. and
7.2.3. shall be netted against the positive balances in the other such categories. Cumulative negative or positive balances shall be carried forward. 
 7.3 Partnership Asset Dispositions. In addition to the distributions pursuant to Section 7.1. of this Agreement, upon any sale, transfer or other disposition of any capital asset of the Partnership (hereinafter referred to as a
“Disposition”), the proceeds of such Disposition shall first be applied to the payment or repayment of any selling or other expenses incurred in connection with the Disposition and to the payment of any indebtedness secured
by the asset subject to the Disposition immediately prior thereto; all proceeds remaining thereafter (the “Net Proceeds”) shall be retained by the Partnership or be distributed, at such time or times as shall be determined by
the Partners in accordance with Section 8 of this Agreement to the Partners in proportion to their respective percentages of Partnership Interest; provided, however, that for purposes of Sections 702 and 704 of the Code, or the corresponding
provisions of any future federal internal revenue law, or any similar tax law of any applicable state or jurisdiction, each Partner’s distributive share of all items of income, gain, loss, deduction, credit or allowance in respect of any such
Disposition shall be made and based upon such Partner’s basis in such capital asset. 
 SECTION 8. MANAGEMENT OF THE PARTNERSHIP BUSINESS 

 8.1 Management of the Partnership. Except to the extent that the consent of the Limited Partners is required by Section 8.4.2 and as otherwise
provided in this Agreement, the Managing General Partner will have the right to make all decisions respecting the management, operation and control of the Partnership business. Except as otherwise provided in this Agreement or the Act, the Managing
General Partner will have all rights and powers and will be subject to the restrictions of a partner in a partnership without limited partners. 
 8.1.1 General Partner’s Duty of Care. In carrying out its duties and exercising its powers under this Agreement, the Managing General Partner will be required to exercise reasonable skill, care, and business judgment. General
Partner will be deemed to be exercising reasonable care and business judgment in relying on the 

			
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advice of counsel or public accountants experienced in a particular matter, and will not be liable to the Partnership or any Partner for any action taken or
omitted on behalf of the Partnership in good faith and in reliance on any such advice. 
 8.1.2 Managing Director. The Managing General
Partner shall have the right to delegate management tasks to a managing director to manage and supervise the operations and business of the Partnership in accordance with this Agreement and applicable law, subject to the consent of the Limited
Partner pursuant to Section 8.4.2 below (the “Managing Director”). 
 8.1.3 Managing General Partner. The
Managing General Partner shall be selected annually from the General Partners by the General Partners as the primary voice and leader of the General Partners. In the event there is only one General Partner, then the single General Partner will be
the Managing General Partner. When there are two or more General Partners, the Managing General Partner will be chosen by consensus of the General Partners. The Managing General Partner will be required to have the consent of the other General
Partners in the same circumstances where the consent of the Limited Partners is required pursuant to Section 8.4.2. 
 8.2 Conflicts of Interest.
Nothing herein contained shall be construed to appoint any Partner the agent of another Partner, except as expressly provided herein. Except as expressly provided herein, nothing in this Agreement shall be construed in any manner to limit the
Partners’ freedom to carry on of their own respective businesses or activities. Any of the Partners, or any agent, servant or employee of any of the Partners, may engage in and possess any interest in other businesses or ventures of every
nature and description, independently or with other persons, whether or not, directly or indirectly, in competition with the business or purpose of the Partnership, and neither the Partnership nor any of the Partners shall have any rights, by virtue
of this Agreement or otherwise, in and to such independent ventures or the income or profits derived therefrom, or any rights, duties or obligations in respect thereof. This section does not, and may not be interpreted to, reduce the duty of loyalty
owed to the Partnership by any Partner by law or by the terms of this Agreement. 
 8.3 General Partner’s Undertakings. The Partners shall devote
to the conduct of the Partnership business so much of their respective time as may be reasonably necessary for the efficient operation of the Partnership business. 
 8.3.1 Initial Public Offering. The Partners acknowledge the desirability of undertaking an initial public offering of the Partnership on an internationally recognized stock exchange (an
“IPO”), that an IPO would be in the best interest of the Partnership and the Partners, and undertake to engage an underwriter to assess, prepare and underwrite an IPO at such time as the Partners believes the business and
financial condition of the Partnership will support a successful offering, subject to the approval of the Limited Partner under Section 8.4.2. 

			
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 8.3.2 Tully’s License Agreement. The General Partner covenants to enforce to the fullest
extent of the law all of the Partnership’s rights under the exclusive license agreement between the General Partner and Tully’s Coffee Corporation dated October 12, 2007 as assigned to the Partnership pursuant to an Assignment
Agreement dated December 14, 2007 (the “Tully’s License Agreement”). 
 8.4 Limitations on Authority of General Partner.
Notwithstanding anything to the contrary in this Agreement: 
 8.4.1 The General Partner has no authority to perform any action in
violation of any applicable law or regulation, or in contravention to this Agreement, or encumber Partnership property for anything other than a Partnership purpose. 
 8.4.2 Special Voting Rights of the Limited Partners. Notwithstanding anything to the contrary in this Agreement, any action by the General Partner on any of the following items (each, a “Major
Decision”) shall require the consent of the Limited Partner, which consent shall not be unreasonably withheld: 
  

	 	(i)	Make any capital expenditure in any single transaction in excess of the greater of (a) US $250,000 or (b) 10% of the Partners’ Capital Accounts at the time of
the expenditure; 

  

	 	(ii)	Incur, refinance or guarantee any debt out of the ordinary course of business; 

  

	 	(iii)	Admit one or more additional or substitute Partners; 

  

	 	(iv)	Consolidate or merge with or into any other entity, or the sale, lease, exchange, mortgage, pledge, transfer or license of all or substantially all of the assets of the
Partnership; 

  

	 	(v)	Dissolution and winding up of the Partnership; 

  

	 	(vi)	Cause the Partnership to seek protection from creditors under federal or state bankruptcy or insolvency laws; 

  

	 	(vii)	Adopt the annual business and financial plans of the Partnership; 

  

	 	(viii)	Change the nature of the Partnership business; 

  

	 	(ix)	Enter a transaction involving an actual or potential conflict of interest between the General Partner and the Partnership or the Limited Partner; 

  

	 	(x)	Amend this Agreement or the Certificate; 

			
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	 	(xi)	Allow the use of the name of the Limited Partner to be used in the name of the Partnership or in the business of the Partnership (however, Limited Partner may not use the
name “Tully’s” or any derivative of “Tully’s” or the name of the Partnership in the name of Limited Partner); 

  

	 	(xii)	Appoint or remove the Managing Director of the Partnership; 

  

	 	(xiii)	Make a distribution of Partnership assets or profits or adopt a plan of distribution with respect thereto; 

  

	 	(xiv)	Appoint an underwriter for purposes of evaluating the potential for an initial public offering of the Partnership; 

  

	 	(xv)	Appoint a master franchisee with rights to establish and operate Tully’s branded stores for any country within the Territories; 

  

	 	(xvi)	Alter, modify, amend, terminate or grant a waiver under the Tully’s License Agreement. 

 8.5 Rights and Obligations of Limited Partner. 
 8.5.1 Management of the Partnership. No
Limited Partner may take part in the management or control of the business of the Partnership or transact any business in the name of the Partnership. No Limited Partner, in its capacity as such, has the power or authority to bind the Partnership or
to sign any agreement or document in the name of the Partnership. The Limited Partner, in its capacity as such, will have no vote on matters related to the operation of the Partnership or its business other than as set forth in this Agreement or as
required by law. 
 8.5.2 Liability of Limited Partners. A Limited Partner will be liable for, and will have the duty to pay as and
when due, its Capital Commitment. Except for such Capital Commitment, a Limited Partner will not be required to make any further contributions or loans to the Partnership, and will not be personally liable for any obligations of the Partnership.

 8.5.3 Special Restrictions for AFCM. Beyond and in addition to the terms of this Agreement, AFCM must adhere to the following
restrictions at all times in order to remain a Limited Partner absent express written consent of the General Partner. Any failure to do so will be considered a default under 16.1.3. 
 (i) To change the management company of AFCM to a Person other than Kouta Matsuda or Person controlled by Kouta Matsuda either through the
ownership of securities or by contract (a “Controlled Entity”), approval of the General Partner must be sought and received in writing a minimum of 30 days in advance. The General Partner shall be given a minimum of 30 days
to make this decision. 

			
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 (ii) Kouta Matsuda or a Controlled Entity shall have the sole power to manage, operate and
control the affairs of AFCM. 
 (iii) AFCM may not make investments that would be considered a competitive conflict of interest to the
Partnership or the partners. 
 (iv) Investors in AFCM or a Controlled Entity must not be: (a) engaged in the retail coffee
business, (b) a person or entity of questionable moral or financial character, or (c) a person or entity who would place the Partnership in violation of United States law, such as the Patriot Act. 
 8.6 Advisory Board. The Partnership shall form an Advisory Board to serve solely in an advisory capacity to the Partnership and to assist the Partnership in
setting and achieving its strategic objectives. The Advisory Board will consist of the Managing Director, two (2) members selected by General Partner and two (2) members selected by Limited Partner. The Advisory Board shall have no
authority to manage, direct or act for the Partnership. Compensation for the Advisory Board shall be zero dollars ($0) unless otherwise agreed by the Partners. 
 SECTION 9. SALARIES 
 Unless otherwise agreed by the Partners in accordance with Section 8 of this Agreement, no Partner shall
receive any salary for services rendered to or for the Partnership. 
 SECTION 10. LEGAL TITLE TO PARTNERSHIP PROPERTY 
 Legal title to the property of the Partnership shall be held in the name of the Partnership, unless all of the Partners consent to its being held in another matter. It is
expressly understood and agreed that the manner of holding title to property (or any part thereof) of the Partnership is solely for the convenience of the Partnership, and that all such property shall be treated as Partnership property subject to
the terms of this Agreement. Notwithstanding the above, the Partnership shall not invest in United States real property holding companies or hold United States real property interests. 
 SECTION 11. BANKING 
 All revenue of the Partnership shall be deposited regularly in the Partnership savings and
checking accounts at such bank or banks as shall be selected by the General Partner or its delegate, and the signatures of such Persons shall be honored for banking purposes, other than the extension of credit to, or the borrowing of money by or on
behalf of, the Partnership. 

			
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 SECTION 12. FISCAL YEAR, AUDITS 
 Accurate and complete books of account shall be kept by General Partner for the Partners and entries promptly made therein of all of the transactions of the Partnership, and such books of account shall be open at all
times to the inspection and examination of the Partners. The books shall be kept on the basis of accounting selected by the accountant regularly servicing the Partnership and the fiscal year of General Partner shall be fiscal year of the
Partnership. An audit of the Partnership, unless otherwise agreed by the Partnership, in accordance with Section 8 of this Agreement, shall be made as of the closing of each fiscal year of the Partnership by the accountants who shall then be
engaged by the Partnership. The auditor selected for the Partnership must be acceptable to the auditor used by the General Partner. 
 SECTION 13.
TRANSFER OF PARTNERSHIP INTEREST AND PARTNERSHIP RIGHTS 
 No Partner shall hypothecate, pledge or otherwise create a security interest over any part or
all of its Units in the Partnership except upon the written consent of the other Partners. Except as otherwise provided in Sections 13, 14, 15 and 16 hereof, no Partner (hereinafter referred to as the “Offering Partner”)
shall, during the term of the Partnership, sell, convey, assign or otherwise transfer (hereinafter collectively referred to as a “Transfer”) any part or all of his Units in the Partnership to any other person (a
“Transferee”). Each Partner proposing to Transfer all or a portion of its Units in the Partnership (hereinafter referred to as the “Offered Interest”) shall first offer the Offered Interest on the same
terms and conditions as those offered to the Transferee to the Partnership, and secondly, to the other Partners, in a manner as follows: 
 13.1 The
Offering Partner shall give the Partnership and each Partner written notice of the Transferor’s intention to make a Transfer (the “Transfer Notice”). The Transfer Notice which shall contain (i) the number of Units
comprising the Offered Interest, (ii) the identity of the prospective Transferee, (iii) the consideration to be paid for the Offered Interest (the “Transfer Purchase Price”), and (iv) the material terms and
conditions upon which the proposed Transfer is to be made. The Transfer Notice shall certify that the Transferor has received a bona fide firm offer from the prospective Transferee and in good faith believes a binding agreement for the Transfer is
obtainable on the terms set forth in the Transfer Notice. The Transfer Notice shall also include a copy of any written proposal, term sheet or letter of intent or other agreement related to the proposed Transfer. 
 13.1.2 If the Partnership desires to purchase all or any part of the Offered Interest, the Partnership must, within a thirty (30) day period
(the “Partnership Refusal Period”) commencing on the date of receipt of the Transfer Notice, give written notice of its election to purchase the Offered Interest equal to the Transfer Purchase Price. To the extent the
Partnership elects not to purchase any of the Offered Interest, the remaining Offered Interest may be purchased by the other Partners as set forth below. A failure by the Partnership to exercise its right of first refusal within the Partnership
Refusal Period shall be deemed a waiver of such right. 

			
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 13.1.3 Within five (5) days after the earlier of (i) receipt by the Transferor of
notice from the Partnership pursuant to Section 13.1.2 above, and (ii) the expiration of the Partnership Refusal Period, the Transferor will give written notice (the “Second Transfer Notice”) to the other Partners
specifying either (A) that all or a portion of the Offered Interest was subscribed by the Partnership exercising its right of first refusal, and setting forth the number of Units comprising the Offered Interest not subscribed for by the
Partnership, if any, or (B) that the Partnership waived its right to purchase any of the Offered Interest. 
 13.1.4 To the
extent the Partnership does not purchase all of the Offered Interest pursuant to Section 13.1.2 above, each Partner (excluding the Transferor) shall have an option for a period of thirty (30) days (the “Partner Refusal
Period”) from the receipt of the Second Transfer Notice to submit notice of its irrevocable commitment to elect to purchase its respective pro rata share of the remaining Offered Interest at a price per Unit equal to Transfer Purchase
Price, and subject to the same material terms and conditions as described in the Transfer Notice. 
 13.1.5 Each Partner may exercise
such purchase option and, thereby, purchase all or any portion of its pro rata share of the remaining Offered Interest, by notifying the Transferor and the Partnership in writing, before expiration of the Partner Refusal Period as to the number of
such Offered Interest which it wishes to purchase. For the purposes of this clause (ii), each Holder’s “pro rata” share of the remaining Offered Interest shall be a fraction of such remaining Offered Interest, of which the number of
Units owned by such Partner on the date of the Second Transfer Notice shall be the numerator and the total number of Units held by all Partners (excluding the Transferor) on the date of the Second Transfer Notice shall be the denominator.

 13.1.6 If any Partner fails to exercise its right to purchase its full pro rata share of the remaining Offered Interest, the
Transferor shall deliver written notice within five (5) days after the expiration of the Partner Refusal Period to any Exercising Partner (as defined below) specifying the number of unpurchased Offered Interest. Each Partner that exercises in
full its right of first refusal under clause (ii) above (an “Exercising Partner”) shall have a right of re-allotment, and may exercise an additional right to purchase such unpurchased Offered Interest by notifying the
Transferor and the Partnership in writing within ten (10) days after receipt of the notice by the Transferor pursuant to the prior sentence of this subsection (iii); provided, however, that if the Exercising Partners desire to
purchase in aggregate more than the number of such unpurchased Offered Interest, then such unpurchased Offered Shares will be allocated to the extent necessary among the Exercising Partners in accordance with their relative pro rata shares.

 13.1.7 If any Holder gives the Transferor notice that it desires to purchase its pro rata share of the Offered Interest and, as the
case may be, its re-allotment, then payment for the Offered Interest shall be by check or wire transfer, against delivery of the Offered Interest to be purchased at a place agreed by the parties and at the time of the scheduled closing therefor,
which shall be no later than sixty (60) days after the Holder’s receipt of the Second Transfer Notice. 

			
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 13.2 If the Partnership or the other Partners fail to accept the Offer or, if the Offer is accepted by the
Partnership or the other Partners and the Partnership or the other Partners fail to purchase all of the Offered Interest at the Transfer Purchase Price within the time and in the manner specified in this Section 13, then the Offering Partner
shall be free, for a period (hereinafter referred to as the “Free Transfer Period”) of sixty (60) days from the occurrence of such failure, to transfer the Offered Interest to the proposed Transferee identified in the
Transfer Notice on the terms contained therein; subject only to any additional restrictions on such Transfer that may be imposed by this Agreement or any other agreement. Any such Transferee, upon acquiring the Offered Interest, shall automatically
be bound by the terms of this Agreement and shall be required to join in, execute, acknowledge, seal and deliver a copy of this Agreement as a result of which he shall become an additional party hereto. If the Offering Partner shall not transfer the
Offered Interest within the Free Transfer Period, his right to transfer the Offered Interest free of the foregoing restrictions shall thereupon cease and terminate. 
 13.3 No transfer made pursuant to this Section 13 shall dissolve or terminate the Partnership or cause the Partnership to be wound-up, but instead, the business of the Partnership shall be continued as if
such Transfer had not occurred. 
 13.4 Notwithstanding any other section of this agreement, no Partner may transfer a portion or the entirety of the
control of themselves as a corporate entity, through stock or otherwise, without the express consent of the Partners (“Indirect Transfer”). Should such an Indirect Transfer occur without consent, the transferee shall have no
rights of management in the Partnership through the partner entity, nor shall they have the ability to bind the Partnership through the partner entity. This provision shall not apply to the following (the “Acceptable Indirect
Transfers”): 
 13.4.1 A transfer or a series of transfers through which a party or parties other than Tully’s
acquire a total of not more than 49% ownership interest in General Partner, provided that the transferee and any affiliates are not engaged in the retail coffee business, is not a person of questionable moral or financial character, is not a person
who would be otherwise considered of nefarious character, and is not a person who would place the Partnership in violation of United States law, such as the Patriot Act; or 
 13.4.2 A transfer or a series of transfers of equity securities in AFCM, provided that the transferee or recipient of the newly issued equity
securities and any affiliates are not: (a) engaged in the retail coffee business, (b) a person or entity of questionable moral or financial character, (c) a person or entity who would be otherwise considered of nefarious character,
(d) a person or entity who would place the Partnership in violation of United States law, such as the Patriot Act, and (e) Kouta Matsuda or a Controlled Entity maintains his or its position and power to manage, operate and control the
affairs of AFCM. 

			
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 An Acceptable Indirect Transfer may only proceed after 30 days advance written notice to the other Partner. The other
non-transferring Partner may, at its discretion, question the validity of the transferee under this section. In the event the validity of the transferee is questioned, the transfer must be placed on hold until the non-transferring Partner issues a
decision with respect to the transfer under this section. 
 13.5 In the event of any unapproved or forced transfer, the transferee’s interest
shall be limited to an economic interest in the Partnership, defined as the economic right to receive distributions whenever made by the Partnership and the Partner’s allocable share of taxable income, gain, loss, deduction, and credit (the
“Economic Rights”). Any transfer of Economic Rights will not include any right to participate in management of the Partnership, including any right to vote, consent to, and will not include any right to information on the
Partnership or its operations or financial condition. Following any transfer of only the Economic Rights of a Partner’s Interest in the Partnership, the transferring Partner’s power and right to vote or consent to any matter submitted to
the Partners will be eliminated, and the Ownership Interests of the remaining Partners, for purposes only of such votes, consents, and participation in management, will be proportionately increased until such time, if any, as the transferee of the
Economic Rights becomes a fully substituted Partner. 
 SECTION 14. ALTERATION OF THE TULLY’S BRAND 
 14.1 In the event that (a) a single third party entity acquires more than 50% ownership of Tully’s, through acquisition, merger or otherwise, and, within
eighteen (18) months of closing on such transaction, announces its intention to close or change the brand identity of the company-operated stores which comprised 50% or more of the number of Tully’s company-operated outlets in the U.S., or
(b) during any eighteen (18) month period during the term of this Agreement, Tully’s closes or changes the brand identity of the company-operated stores which comprised 50% or more of the number of Tully’s company-operated
outlets in the U.S., operating at the commencement of such eighteen (18) month period; the following may occur: 
 14.1.1 Limited
Partner may purchase all of General Partner’s Partnership Interest in order to continue operating in substantially the same manner under the License Agreement. In this event, Limited Partner may initiate a Negotiated Buy-Sell transaction as set
forth in Section 18 of this Agreement and General Partner will have thirty (30) days from the date a Final Appraised Value is obtained in which to consummate the purchase. 
 14.1.2 Limited Partner may sell its Partnership Interest to General Partner, pursuant to a Negotiated Buy-Sell transaction as set forth in
Section 18 of this Agreement and General Partner will have thirty (30) days from the date a Final Appraised Value is obtained in which to consummate the sale. 
 14.1.3 Limited Partner may sell all of its Partnership Interest, subject to a right of first refusal by General Partner pursuant to Sections 13.1 and 13.2 . 

			
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 14.2 In no event shall the following trigger an occurrence under Section 14: 
 14.2.1 Tully’s is acquired but the Tully’s brand continues to operate in a manner generally consistent with the operation,
pre-acquisition, and, within eighteen months of closing on such transaction, the buyer has not made an announcement that it intends to close or change the brand identity of the company-operated stores which comprised 50% or more of the number of
Tully’s company-operated outlets in the U.S. 
 SECTION 15. PURCHASE UPON BANKRUPTCY. 
 15.1 Upon the Bankruptcy of any Partner (the “Withdrawing Partner”), the Partnership shall neither be terminated nor wound-up, but,
instead, the business of the Partnership shall be continued as if such Bankruptcy had not occurred. Upon any such event, the estate, legal representative, guardian or other successor to the Partner’s interests will have all rights to receive
distributions which otherwise would be made to the Partner, and will succeed to all obligations of such Partner under the terms of this Agreement; provided however, that the remaining Partner shall have the option but not the obligation to
purchase the Withdrawing Partner’s Partnership Interest in the Partnership at any time within seventy-five (75) days of the date of such Bankruptcy (the “Withdrawal Date”). The remaining Partner shall, by written
notice addressed to the Withdrawing Partner or to the legal representative of a Withdrawing Partner, fix a closing date for such purchase which shall be not less than seventy-five (75) days after the Withdrawal Date. The Withdrawing
Partner’s Interest shall be purchased by the remaining Partner on such closing date at a price (the “Withdrawing Purchase Price”) which shall be the Final Appraised Value (as defined in Section 18.1 of this
Agreement.). 
 15.2 The aggregate dollar amount of the Withdrawing Purchase Price shall be payable in cash on the closing date, unless the acquiring
Partner shall elect prior to or on the closing date to purchase the Withdrawing Partner’s Interest in installments as provided in Section 18 of this Agreement. 
 SECTION 16. CERTAIN FURTHER EVENTS GIVING RIGHTS TO PURCHASE OPTION. 
  

	16.1	In the event that any Partner (the “Defaulting Partner”): 

 16.1.1 Shall have filed against him any tax lien respecting all or substantially all of his property and such tax lien shall not be discharged, removed or bonded within sixty (60) days of the date on which
it was filed; or 
 16.1.2 Shall subject his Partnership Interest or any part thereof or interest therein to a charging order entered
by any court of competent jurisdiction; or 
 16.1.3 Shall die or be adjudicated incompetent, for Partners who are natural persons, or
dissolve or wind up, for Partners who are not natural persons; 

			
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 then, immediately upon the occurrence of either of said events (the “Occurrence
Date”), the non-Defaulting Partner shall have the right and option, exercisable by written notice to the Defaulting Partner, within thirty (30) days of the Occurrence Date, to purchase from the Defaulting Partner, who shall sell to
the non-Defaulting Partner, all of the Partnership Interest (the “Defaulting Partner’s Interest) owned by the Defaulting Partner in the Partnership on the Occurrence Date. The non-Defaulting Partner shall, by written notice
delivered to the Defaulting Partner or his successors, fix a closing date for such purchase which shall be not less than forty (40) days after the Occurrence Date, but in no event longer than seventy-five (75) days after the Occurrence
Date. The Defaulting Partner’s Interest shall be purchased by the non-Defaulting Partner on such closing date at a price (the “Defaulting Partner’s Purchase Price”) which shall be the Final Appraised Value (as
defined in Section 18.1 of this Agreement). 
 16.2 The aggregate dollar amount of the Defaulting Partner’s Purchase Price shall be payable
in cash on the closing date, unless the non-Defaulting Partner shall elect prior to or on the closing date to purchase the Defaulting Partner’s Interest in installments as provided in Section 18 of this Agreement. 
 16.3 The Partners may mutually agree, in writing, to make the default under any other agreements of the individual Partners or Partnership trigger a purchase
option pursuant to this agreement. Should such a secondary agreement occur, the party in default in the secondary agreement shall be the Defaulting Party under this provision. The procedure shall be the same as is set forth in Section 16.1.

 16.4 If an event pursuant to Sections 14, 15, or 16 occurs, the Partnership shall have the right to terminate all existing management agreements
subject to the terms and conditions thereof. 
 SECTION 17. CERTAIN TAX ASPECTS INCIDENT TO TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 It is the intention of the parties that the Transfer Purchase Price, the Decedent Purchase Price, the Withdrawing Purchase Price and the Defaulting
Partner’s Purchase Price shall constitute and be considered as made in exchange for the interest of the retired Partner in partnership property, including good will, within the meaning of Section 736(b) of the Code, as amended. 

SECTION 18. THE APPRAISED VALUE. 
 18.1 Certain
sections of this Agreement provide the right for a Partner to initiate a “Negotiated Buy-Sell transaction.” For purposes of this Agreement, that shall mean a negotiation initiated by a Partner with the other Partner(s) to sell all of its
interest in the Partnership to those Partners(s) or to buy all of the interest in the Partnership of all other Partners(s), as follows: 

			
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 18.1.1 The parties, being the buyer and seller, shall each, at their own expense, hire an
appraiser. The hired appraisers shall then hire an additional appraiser upon their independent agreement. The cost for the independent, third appraiser, shall be divided evenly between the parties. The three appraisers shall each independently
appraise the Partnership and arrive at their estimated appraisal value for the sale. The three shall then confer and reach an agreed appraisal value as a committee (the “Final Appraised Value”). This Final Appraised Value
shall be binding upon the parties so long as: 
 18.1.1.1 The three appraisals do not vary greater than 25% from the mean of the three
appraisals; 
 18.1.1.2 The final appraised value is no greater than 10% above the highest appraised value, nor lesser than 10% below
the lowest appraised value; 
 18.1.1.3 The appraisal process was performed in good faith by all appraisers. 
 In the event that the terms of this section are not satisfied, then the parties must have the interest re-appraised, or the parties may seek a remedy
through a court of law. In the event that there are more than one buyer and/or seller involved in the transaction, absent an agreement among the parties, each party must hire their own appraiser. 
 18.1.2 In a Negotiated Buy-Sell, the terms of payment shall be as follows, unless otherwise agreed to by the buying and selling Partners:

 18.1.2.1 The lesser of the amount which is twenty-five percent of the purchase price or $1,000,000.00, shall be paid in cash, bank
cashier’s check, or certified funds at the closing; 
 18.1.2.2 The balance of the purchase price by the buying Partner executing
and delivering its promissory note for the balance, with interest at the prime interest rate stated by primary banking institution utilized by the Partnership. Interest will be payable monthly, with the principal sum being due and payable in three
equal annual installments. The promissory note will be secured by the ownership interest being purchased by the Partner and will contain provisions that the principal sum may be paid in whole or in part at any time, without penalty. 
 SECTION 19. DEATH, INCOMPETENCE OR BANKRUPTCY OF KOUTA MATSUDA. 
 The Bankruptcy, death or adjudicated incompetence of Kouta Matsuda while AFCM is the Limited Partner shall give rise to a default option. The General Partner may, at its 

			
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discretion, treat the Bankruptcy, death or adjudicated incompetence of Kouta Matsuda as a default for AFCM under 16.1.3 if the General Partner feels the loss
of AFCM will affect the performance, viability, stability, or any other operating factor of AFCM or if the General Partner feels the death will have any impact on the Partnership. 
 SECTION 20. DELIVERY OF EVIDENCE OF INTEREST 
 On the closing date, upon payment of the Final Appraised Value for
the purchase of the Interest hereunder or, if payment is to be made in installments pursuant to the provisions of Section 18 hereof, upon the first payment, the Offering Partner, the Withdrawing Partner, the personal representative of the
Withdrawing Partner (in the event of the bankruptcy of the Withdrawing Partner) or the Defaulting Partner, as the case may be, shall execute, acknowledge, seal and deliver to the purchasing person such instrument or instruments of transfer to
evidence the purchase of the Interest (the “Instrument of Transfer”) that shall be reasonably requested by counsel to the purchasing person in form and substance; reasonably satisfactory to such counsel. If a tender of the
Final Appraised Value, or the tender of the first payment thereof, shall be refused, or if the Instrument of Transfer shall not be delivered contemporaneously with the tender of the Final Appraised Value or of the first payment thereof, as
aforesaid, then the purchasing person shall be appointed, and the same is hereby irrevocably constituted and appointed the attorney-in-fact with full power and authority to execute, acknowledge, seal and deliver the Instrument of Transfer.

 SECTION 21. INDEMNIFICATION. 
 21.1 General
Indemnification. The Partnership shall indemnify any person who was or is a party defendant or is threatened to be made a party defendant, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative
(other than an action by or in the right of the Partnership) by reason of the fact that he is or was a Partner of the Partnership, Managing Director, employee or agent of the Partnership, or is or was serving at the request of the Partnership,
against expenses (including attorney’s fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed
to be in or not opposed to the best interest of the Partnership, and with respect to any criminal action proceeding, has no reasonable cause to believe his/her conduct was unlawful. The termination of any action, suit, or proceeding by judgment,
order, settlement, conviction, or upon a plea of “no lo Contendere” or its equivalent, shall not in itself create a presumption that the person did or did not act in good faith and in a manner which he reasonably believed to be in the best
interest of the Partnership, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his/her conduct was lawful. 
 21.2 Special Indemnification. The general indemnification set forth in Section 21.1 shall be separate from and subordinated in priority to the Indemnification Agreement among Tully’s, Limited Partner and AFCM
regarding any action brought by UCC Ueshima Coffee Corporation, Ltd. (“UCC”) with regard to the past agreement between Tully’s and UCC (the “AFCM Indemnification Agreement”). 

			
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 SECTION 22. NOTICES. 
 22.1 Any and all notices, offers, acceptances, requests, certifications and consents provided for in this Agreement shall be in writing and shall be given and be deemed to have been given when personally delivered against a signed
receipt or mailed by registered or certified mail, return receipt requested, to the last address which the addressee has given to the Partnership. The address of each partner is set in Section 22.2 of this agreement, and each partner agrees to
notify the Partnership of any change of address. The address of the Partnership shall be its principal office. 
 22.2 The Partner notice addresses are
as follows: 
 General Partner 
 Tully’s Coffee Asia Pacific, Inc. 
 3100 Airport Way South 
 Seattle, WA 98134 U.S.A. 
 Attn: President

 Facsimile No. (206) 233-2075 
 With Copies To: 
 The Vernon Law Group, PLLC 
 Attn: John Vernon, Esq. 
 4242 Renaissance Tower 
 1201 Elm Street 
 Dallas, TX 75270 

Limited Partner 
 Asia Food Culture Management Pte Ltd 
 ______________________________ 
 ______________________________ 
 ______________________________ 
 With Copies To: 
 venture counsel law international, pllc 
 Attn: Christopher Evans, Esq. 
 601 108th Avenue NE, Suite 1900 
 Bellevue, WA 98004 

			
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 SECTION 23. GOVERNING LAW. 
 It is the intent of the parties hereto that all questions with respect to the construction of this Agreement and the rights, duties, obligations and liabilities of the parties shall be determined in accordance with
the applicable provisions of the laws of the State of Washington. 
 SECTION 24. MISCELLANEOUS PROVISIONS. 
 24.1 Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of, all parties hereto, their personal and legal representatives,
guardians, successors, and their assigns to the extent, but only to the extent, that assignment is provided for in accordance with, and permitted by, the provisions of this Agreement. 
 24.2 No Limitation. Except as expressly provided in this Agreement, nothing herein contained shall be construed to limit in any manner the Partners, or their respective agents, servants, and employees, in
carrying on their own respective businesses or activities. 
 24.3 Necessary Actions. The Partners agree that they and each of them will take whatever
action or actions as are deemed by counsel to the Partnership to be reasonably necessary or desirable from time to time to effectuate the provisions of intent of this Agreement, and to that end, the Partners agree that they will execute,
acknowledge, seal and deliver any further instruments or documents which may be necessary to give force and effect to this Agreement or any of the provisions hereof, or to carry out the intent of this Agreement, or any of the provisions hereof.

 24.4 Meanings. Throughout this Agreement, where such meanings would be appropriate: (a) the masculine gender shall be deemed to include the
feminine and the neuter and vice-versa, and (b) the singular shall be deemed to include the plural, and vice-versa. 
 24.5 Entire Agreement;
Modification. This Agreement constitutes the entire understanding and agreement between the Partners with respect to the subject matter of this Agreement. No agreements, understandings, restrictions, representations, or warranties exist between
or among the Partners other than those in this Agreement or referred to or provided for in this Agreement. No modification or amendment of any provision of this Agreement will be binding on any Partner unless in writing and signed by all the
Partners. 
 24.6. Force of Law. Nothing contained in this Agreement shall be construed as requiring the commission of any act contrary to law. In the
event there is any conflict between any provision of this Agreement and any statute, law, ordinance or regulation contrary to which the Partners have no legal right to contract, the later shall prevail, but in such event the provisions of this
Agreement thus affected shall be curtailed and limited only to the extent necessary to conform with said requirement of law. In the event that 

			
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any part, article, section, paragraph or clause of this Agreement shall be held to be indefinite, invalid or otherwise unenforceable, the entire Agreement
shall not fail on account thereof, and the balance of this Agreement shall continue in full force and effect. 
 24.7 Amendments. Amendments to this
Agreement may be proposed by any Partner. A proposed amendment will be adopted and become effective as an amendment only on the written approval of all of the Partners. 
 24.8 [Reserved]. 
 24.9 Dispute Resolution. 
 24.9.1 Meet and Discuss Requirement. Before proceeding under Sections 24.9.2, the party who intends to initiate action must make a good faith
effort to meet and discuss the dispute with the other party. The meeting must take place at least ten (10) business days before any action is filed. The meeting shall take place at either the office of the party not intending to initiate action
or at a mutually agreeable location. The travel expenses for the meeting shall be incurred by the party intending to initiate action. In the event that both parties are intending to initiate action, each party shall pay their own travel expenses and
the meeting shall be at a mutually agreeable location. 
 24.9.2 Unresolved Disputes. Any dispute under this agreement not resolved by
Section 24.9.1 shall be settled within the court system in the United States of America in any court with jurisdiction over the agreement and/or the parties, pursuant to the laws of the United States at the time of the conflict. In no event
shall a conflict under this agreement be settled in any jurisdiction other than the United States, nor shall disputes be submitted to mediation, arbitration, or any other alternative dispute resolution procedure unless: 
 (1) The Members unanimously agree to submit the issue to mediation, arbitration, or any other alternative dispute resolution procedure; or

 (2) A court orders mediation, arbitration, or another alternative dispute resolution procedure. 
 24.9.3 Attorney Fees. In the event of any suit or action to enforce or interpret any provision of this Agreement (or that is based on this
Agreement), the prevailing party is entitled to recover, in addition to other costs, reasonable attorney fees in connection with the suit, action, or arbitration, and in any appeals. The determination of who is the prevailing party and the amount of
reasonable attorney fees to be paid to the prevailing party will be decided by the court or courts, including any appellate courts, in which the matter is tried, heard, or decided. 

			
	 TULLY’S COFFEE ASIA PACIFIC PARTNERS, LP
 PARTNERSHIP AGREEMENT
	  	PAGE 26 OF 29

  

 24.10 Captions. The captions/headings used in this Agreement are for the convenience of the parties
only and will not be interpreted to enlarge, contract, or alter the terms and provisions of this Agreement. The captions/headings herein are inserted only as a matter of convenience and reference, and in no way define, limit or describe the scope of
this Agreement, or the intent of any provisions thereof. 
 24.11 Severability. If any term or provision of this Agreement is held to be void
or unenforceable, that term or provision will be severed from this Agreement, the balance of the Agreement will survive, and the balance of this Agreement will be reasonably construed to carry out the intent of the parties as evidenced by the terms
of this Agreement. 
 24.12 Further Effect. The parties agree to execute other documents reasonably necessary to further effect and evidence the terms
of this Agreement, as long as the terms and provisions of the other documents are fully consistent with the terms of this Agreement. 

			
	 TULLY’S COFFEE ASIA PACIFIC PARTNERS, LP
 PARTNERSHIP AGREEMENT
	  	PAGE 27 OF 29

  

 IN WITNESS WHEREOF, the parties hereunto set their hands and seals and acknowledged this Agreement as of the date
first above written. 
  

									
	Tully’s Coffee Asia Pacific, Inc.	 		 	GENERAL PARTNER
			
	 	 		 	
					
	By:	 	 	 		 		 	
					
	Title:	 	 	 		 		 	
					
	Date:	 	 	 		 		 	

  

									
	Asia Food Culture Management Pte Ltd	 		 	LIMITED PARTNER
			
	 	 		 	
					
	By:	 	Kouta Matsuda	 		 		 	
					
	Title:	 	 	 		 		 	
					
	Date:	 	 	 		 		 	

			
	 TULLY’S COFFEE ASIA PACIFIC PARTNERS, LP
 PARTNERSHIP AGREEMENT
	  	PAGE 28 OF 29

  

 EXHIBIT A 
 LIST OF COUNTRIES 
 American Samoa 
 Australia 
 Bangladesh 
 Bhutan 
 Brunei 
 China 
 Cook Islands 
 Guam

 Hong Kong 
 India 
 Indonesia 
 Laos 
 Macao 
 Malaysia 
 Mongolia

 Myanmar (Formerly Known as Burma) 
 Nepal 
 New Zealand 
 North Korea 
 Pakistan 
 Palau 
 Philippines 
 Saipan 
 Singapore

 Solomon Islands 
 South Korea 
 Sri Lanka (Formerly Known as Ceylon) 
 Taiwan 
 Thailand 
 Vietnam 

			
	 TULLY’S COFFEE ASIA PACIFIC PARTNERS, LP
 PARTNERSHIP AGREEMENT
	  	PAGE 29 OF 29

  

 EXHIBIT B 
 PROMISSORY NOTETully's TCAP license agreement

 Exhibit 10.2 
 TULLY’S COFFEE EXCLUSIVE LICENSE AGREEMENT 
 THIS AGREEMENT, effective as of the 12th day of
October, 2007, is entered into between TULLY’S COFFEE CORPORATION, a Washington corporation, doing business at 3100 Airport Way South, Seattle, Washington 98134 U.S.A. (“Licensor”), and TULLY’S COFFEE ASIA PACIFIC, INC., a Nevada
corporation (“Licensee”). 
 RECITALS 
 A. Licensor is in the business of developing and operating specialty stores featuring coffee drinks and other beverages and a light food menu for on and off premises consumption and which offer retail sales of whole
beans and ground coffee, tea, herbal teas, and related goods and services (referred to herein as a “Tully’s Store” or as “Tully’s Stores”). 
 B. Tully’s Stores are operated with uniform design, formats, signs, equipment, layout, systems, and procedures utilizing the know-how, confidential business information and proprietary trade dress and designs of
Licensor. 
 C. Licensor owns rights in, and uses, promotes and licenses, certain business names and trademarks for services relating to such
stores and trademarks for goods and services sold through such stores including without limitation the business names shown in Schedule A (the “Business Names”), the trademarks for services and trademarks for goods shown in
Schedule B (the “Trademarks”). 
 D. Licensee was incorporated in the state of Nevada on July 13, 2007 and seeks
to establish and advance the purpose of developing, constructing, managing and promoting Tully’s Stores and the wholesale and retail sale of coffee and related products through the use of sublicensees, franchisees and distributors in the
business territories described below. Subject to the terms and conditions of this Agreement, Licensee is interested in acquiring the sole, perpetual, exclusive license to use Licensor’s know how, trade secrets, proprietary trade dress and
designs, tradenames and trademarks (registered and unregistered) Business Names, and Trademarks in association with the operation of Tully’s Stores in the territories identified in Schedule C (referred to herein as the
“Territories”). 
 NOW, THEREFORE, in consideration of the covenants and obligations of this agreement and for other good and
valuable consideration, the parties hereto have agreed with each other as follows: 
 1. Grant. Subject to the terms and conditions of
this Agreement, Licensor hereby grants to Licensee, under all its current or future intellectual property rights, the sole, exclusive and perpetual license to operate Tully’s Stores in the Territories and to 

  

 Page 1 of 28 

 
use all such designs, formats, signs, equipment, layout, systems, procedures, copyrights, know how, trade secrets, proprietary trade dress and designs,
tradenames and trademarks (registered and unregistered), the Business Names, and the Trademarks for Tully’s Stores in the Territories, including the U.S. rights in the same to the extent such rights relate to use of the same in the Territories
(collectively, the “Asia Rights”) only in association with the Licensee or authorized sublicensee’s operation of Tully’s Stores and as otherwise provided in this Section 1. The Asia Rights include the rights (i) to
utilize in the Territories the now owned or hereafter acquired registered and unregistered intangible proprietary rights used by Licensor in its operations of Tully’s Stores whether registered or unregistered, (ii) the current or future
right to sell packages of roasted coffee, roasted coffee beans, tea, herbal tea and related goods under the Business Names and with the Trademarks in third party retail locations other than Tully’s Stores in the Territories, (iii) the
right to create, operate and support a franchise system of Tully’s Stores within the Territories, (iv) the right to operate web sites under the Business Names and Trademarks to market and sell, solely to consumers within the Territories,
branded product and merchandise, and (v) the right to create or have created branded merchandise using the Trademarks for sale solely within the Territories; provided that in each case all such licensed activities are (a) conducted in a
manner that is consistent with the Tully’s brand concept and image of high quality, premium, gourmet specialty coffee, (b) otherwise complies with the terms of this Agreement, (c) that all such sales are subject to the royalty and
service fees provided for in this Agreement and (d) either contained within the list of existing items distributed in the United States listed in Schedule D or approved by Licensor in writing prior to sale. Consistent with the exclusive
nature of the license grants of this Agreement, Licensor shall not license or sell the Asia Rights, or any portion related thereto, to any third party, and shall not allow any other party to utilize the Business Names and Trademarks in the
Territories except either as set forth in this Agreement or in a manner beyond the scope of this Agreement. 
 Licensee may sublicense
(without any permission from Licensor) the right conferred by this Agreement to any entity in which Licensee holds—directly or indirectly—at least fifty percent of the actual or beneficial voting control of such subsidiary. Otherwise, upon
the prior written consent of Licensor (which consent shall not unreasonably be withheld), Licensee may sublicense all or part of the rights conferred upon Licensee by this Agreement. Licensor’s consent shall be subject to, among other things,
the execution and delivery of such documents and agreements as Licensor shall find reasonably necessary to protect Licensor’s interests with respect to such proposed sublicense and the execution and delivery of a officer’s certificate to
Licensor stating that Licensee’s sublicense is in compliance with applicable legal and regulatory requirements for that sublicense. 
 2. Operation and Development of Stores. Licensor will furnish to Licensee standard basic plans and specifications for Tully’s Store’s (the “Standard Specifications”) for use in the Territories, including
specifications for general interior 

  

 Page 2 of 28 

 
design, color schemes, finish materials, furniture, equipment and signs. Licensee agrees that all of Licensee’s stores in the Territories which are
identified to the public as a Tully’s Store or which utilize any of the Business Names or Trademarks (referred to herein as a “Licensee Tully’s Store”) shall materially comply with Licensor’s Standard Specifications as
announced by Licensor from time to time. Notwithstanding the foregoing, Licensee Tully’s Stores may be modified to the extent necessary to comply with applicable ordinances, building codes, permit requirements, lease or deed requirements and
restrictions, and shall give due consideration to local culture, tastes, market conditions and tendencies (the foregoing being collectively referred to herein as “Local Regulations and Conditions”). 
 3. Equipment, Fixtures and Signs. Licensee agrees to use in the operation of each Licensee Tully’s Store equipment, fixtures, and furniture
that are materially consistent with Licensor’s Standard Specifications with due consideration for the Local Regulations and Conditions. Licensee further agrees to place or display at the premises of each Store (interior and exterior) only such
signs, emblems, logos, lettering, and display materials that are consistent with Licensor’s Standard Specifications. Licensee may purchase equipment, fixtures, furniture and signs (“Store Furnishings”) used in connection with the
operation of Tully’s Stores from Licensor or from other sources, when such sources are more competitive with respect to price, applicable taxes, delivery costs and other terms; provided, however, that all such Store Furnishings obtained from
other sources are consistent with Tully’s brand concept and image of high quality. 
 4. Training and Operating Assistance.

 a. Initial Training. Prior to the opening of Licensee’s first Tully’s Store in the Territories,
Licensor shall train one or more Licensee managers in the operation of a Tully’s Store. Training shall be conducted at Licensor’s training headquarters at a time which is mutually acceptable to the parties. Licensee and Licensor shall
share the cost for any travel and living expenses which Licensee and the manager(s) incur in connection with such training. Licensor shall provide at its own cost all materials and personnel and facilities for such training. 
 b. Additional Training. Upon Licensee’s request Licensor will conduct additional training for Licensee’s employees at
Licensee’s travel and living cost and expense (not more than five of Licensee’s employees at any one time semiannually). Licensor shall provide at its own cost all materials, personnel and facilities for such training. 
 c. Hiring and Training of Employees by Licensee. Licensee shall hire all employees of each Tully’s Store in the Territories,
and shall be exclusively responsible for the terms of their employment and compensation and for the proper training of such employees in the operation of a Tully’s Store. 
  

 Page 3 of 28 

 d. Consulting Assistance. Licensor shall be available at mutually convenient times
to consult with Licensee from time to time with respect to general operating issues related to any Tully’s Store in the Territories, including without limitation any problems or deficiencies disclosed by reports submitted to or inspections made
by Licensor related to Tully’s Stores in the Territories. 
 e. Annual Meetings. Except as otherwise hereinafter
agreed to by the parties, Licensor and Licensee agree that the parties shall meet at least annually on or about the anniversary date of the signing of this Agreement to review the status of the operations of the Licensee Tully’s Stores and
Licensor’s operation and licensing of Tully’s Stores in the United States and elsewhere. The first such meeting shall take place at a location to be designated by Licensee. Thereafter, Licensor and Licensee shall take turns designating the
location of such annual meetings. 
 f. Web Sites and Other Software. Licensor shall all retain all rights to any
software or other computer code furnished to Licensee, if any, pursuant to this Agreement. Should Licensee desire to create web sites for any or all of the countries listed in Schedule C, Licensee shall ensure all such web sites maintain a
“look and feel” consistent in all material respects with the appearance and design elements utilized in Licensor’s web site, with due consideration given to Local Regulations and Conditions, and at all times consistent with the
Tully’s brand concept and image of high quality. Licensee shall have the right to operate and maintain web sites on their own servers or on the servers of a hosting service provider. Licensee is limited to use of country code top level domain
names for the countries listed in the Territories. Licensor shall have the right to inspect the websites at their discretion, and if, in Licensor’s sole discretion, an element of the Licensee’s web sites does not conform to the standards
of “look and feel” or contains inappropriate elements, Licensor may demand that that element be immediately removed. Upon such demand, Licensee shall have 24 hours to remove the offending element. 
 5. Store Image and Operating Standards. 
 a. Condition and Appearance of Stores. Licensee agrees to maintain the condition and appearance of each Licensee Tully’s Store consistent in all material respects with the image of a Licensor owned
and operated Tully’s Stores with each Licensee Tully’s Store as an attractive, modern, sanitary, convenient, and efficiently operated store selling premium, high quality products and service with due consideration given to Local
Regulations and Conditions. Licensee agrees to effect such maintenance in all material respects of each Licensee Tully’s Store as is reasonably required from time to time to maintain such condition, appearance, and efficient operation,
including, without limitation, replacement of worn out or obsolete 

  

 Page 4 of 28 

 
equipment, fixtures, furniture, and signs; repair of the interior and exterior of such Stores. If at any time in Licensor’s commercially reasonable
judgment, the general state of repair, appearance, or cleanliness of the premises of a Licensee Tully’s Store or its equipment, fixtures, furniture, signs, or decor does not meet Licensor’s standards therefor, Licensor shall so notify
Licensee, specifying the action Licensor believes should be taken by Licensee to correct such deficiency. 
 b. Authorized
Products and Services. The presentation of a uniform image to the public and the furnishing of uniform products and services are an essential element of the Tully’s Store system and brand concept. Licensee therefore agrees that each
Licensee Tully’s Store will offer beverages, food, and other products and services that are consistent in all material respects with the Tully’s Store concept as announced from time to time by Licensor with due consideration given to Local
Regulations and Conditions. 
 c. Food and Beverage Products, Supplies, and Materials. The reputation and goodwill of
the Tully’s Store system is based upon, and can be maintained and enhanced only by, the sale of consistent, quality products and the rendering of fast, efficient, consistent and quality service. Licensee therefore agrees that all beverages and
food products, cooking materials, containers, packaging materials, other paper and plastic products, glassware, utensils, uniforms, menus, forms, cleaning and sanitation materials, and other supplies and materials used in the operation of Licensee
Tully’s Stores shall conform to Licensor’s specifications and quality standards as established by Licensor from time to time with due consideration given to Local Regulations and Conditions. 
 d. Use of Materials Imprinted With Trademarks. Licensee shall in the operation of each Tully’s Store in the Territories use
containers, napkins, uniforms, packaging, and other forms and materials imprinted with the Trademarks that conform to Licensor’s specifications and quality standards as established by Licensor from time to time with due consideration given to
Local Regulations and Conditions. 
 6. Specifications, Standards, and Procedures. With due consideration given to Local Regulations
and Conditions, Licensee agrees to comply with Licensor’s specifications, standards and general procedures for the operation of Tully’s Stores including without limitation the following: 
 a. Recipes, quality of ingredients, portions, and methods and procedures relating to the storage, handling, preparation, and
serving of beverages and food; 
 b. Safety, maintenance, cleanliness, sanitation, function, and appearance of each
Tully’s Store premises and its equipment, fixtures, furniture, and signs; and 
  

 Page 5 of 28 

 c. Uniforms to be worn by and general appearance of Store employees; 

7. Compliance with Laws and Good Business Practices. Licensee shall secure and maintain in force all required licenses, permits, and
certificates relating to the operation of each Licensee Tully’s Store and shall operate each such Store in full compliance with all applicable, material laws, ordinances, and regulations. Licensee agrees to refrain from any business or
advertising practice which may be injurious to the business of Licensor and the goodwill associated with the Business Names and Trademarks and Tully’s Stores. Licensor and Licensee each agrees to refrain from any business or advertising
practice which may be injurious to the business of Licensee and the goodwill associated with the Business Names and Trademarks and Tully’s Stores. 
 8. Management of Store. All stores shall at all times be under the direct, on-premises supervision of Licensee or a trained and competent employee thereof. Licensee agrees to use its best efforts to promote and
enhance the business of the Tully’s Stores in the Territories. 
 9. Indemnification. 
 (a) By Licensee. Licensee agrees to indemnify, defend and hold harmless Licensor and all of its shareholders, directors, officers,
employees and representatives from and against all claims, lawsuits, fines, penalties or damages of any kind by a third party (collectively, “Damages”) arising out of or related to (i) Licensee’s use of the Business Names or
Trademarks or operation of Tully’s Stores, (ii) a breach by Licensee of any representation, warranty or covenant of Licensee set forth in this Agreement, except to the percentage extent that any such Damages are caused by Licensor’s
negligence. 
 (b) By Licensor. Licensor agrees to indemnify, defend and hold harmless Licensee and all of
Licensee’s shareholders, directors, officers, employees and representatives from and against all claims, lawsuits, fines, penalties or damages of any kind by a third party (collectively, “Damages”) arising out of or related to
(i) Licensor’s use of the Business Names or Trademarks or operation of Tully’s Stores, and (ii) a breach by Licensor of any representation, warranty or covenant of Licensor set forth in this Agreement, except to the percentage
extent that any such Damages are caused by Licensee’s negligence. 
 10. Trade Secrets of Licensor. Licensor will take
commercially reasonable steps to safeguard the trade secrets of Licensor provided under this Agreement. Licensee acknowledges that its knowledge of the operation of a Tully’s Store will be derived from information disclosed to Licensee by
Licensor pursuant to the License and that certain of such information, including without limitation all recipes and 

  

 Page 6 of 28 

 
Licensor’s Standard Specifications is proprietary, confidential, and a trade secret of Licensor. Except for disclosing such information to sublicensees
authorized under Section 1 hereof, Licensee agrees that Licensee will maintain the absolute confidentiality of all such information during and after the term of the License, and that Licensee and its sublicensees will not use any such
information in any other business or in any manner not specifically authorized or approved in writing by Licensor. 
 11. Business Names
and Trademarks. 
 a. Ownership of Names and Marks. Licensee acknowledges and agrees that Licensor is the
owner of all Business Names and Trademarks licensed to Licensee by this Agreement, that Licensee’s right to use the Business Names and Trademarks is derived solely from this Agreement and is limited to the operation of Licensee Tully’s
Stores in the Territories and as otherwise provided for in this Agreement. Licensee agrees that after the termination or expiration of the License, Licensee will not directly or indirectly at any time or in any manner identify itself or any other
business operation of Licensee as a Tully’s Store, a former Tully’s Store, or as a Licensee of or otherwise associated with Licensor, or use in any manner or for any purpose any Business Name or Trademark or other indicia of a Tully’s
Store. 
 b. Limitations on Licensee’s Use of Business Names and Trademarks. Licensee agrees to use the
Business Names and Trademarks as the sole service mark and trademark and trade name identification of each Licensee Tully’s Store, except as otherwise consented to in writing by Licensor. 
 c. Domain Names and Web Sites. Licensor’s currently owned domain names are included in Schedule B as attached to this
Agreement. Licensor shall retain all rights to any and all domain names created for the websites created for the countries in Schedule C. Licensor may grant written permission for Licensee to register localized domain names at Licensee’s
request, however, these domain names will remain the intellectual property of Licensor. Any and all web sites related to Licensor’s business must be published through Licensor’s present domain name or any future domain name owned by
Licensor, including the herein described localized domain names. 
 12. License Fee. Upon the execution of this Agreement by the
parties and the satisfaction or waiver of the conditions precedent set forth in Sections 20 b. and c. below, Licensee shall immediately pay to Licensor the sum of one dollar ($1.00) (the “License Fee”) in cash or by wire transfer of
immediately available funds. The License Fee shall be fully earned by Licensor upon payment. 
  

 Page 7 of 28 

 13. Royalty and Service Fee. 
 a. Amount and Payment of Royalty and Service Fee. Licensee agrees to pay to Licensor a quarterly royalty and service fee of one
percent (1%) of the aggregate net revenues, as defined in section 13(b) below, of the Tully’s Stores in the Territories together with all other sales of products or services made in connection with the Tully’s Business Names and
Trademarks, for net revenues and sales after March 31, 2008, payable by the end of each month immediately following the month in which a calendar quarter of a year ends on net revenues for the preceding quarter. Licensee agrees to pay to
Licensor a quarterly royalty and service fee of zero percent (0%) of the aggregate net revenues of the Tully’s Stores in the Territories together with all other sales of products or services made in connection with the Tully’s Business
Names and Trademarks, for net revenues and sales after the after the effective date of this Agreement and before April 1, 2008. 
 b. Definition of Net Revenues. As used in this Agreement, the term “net revenues” shall mean and include the actual gross charges for all products and services of any kind or nature sold in connection with the Tully’s
Business Names or Trademarks, for cash or credit, whether such purchases are made in, upon, or from the premises of any Licensee Tully’s Store, or through or by means of the business conducted therein or otherwise by Licensee or any sublicensee
thereof, but excluding sales, use, service, or excise taxes collected from customers and paid to the appropriate taxing authority. 
 c. Interest on Late Payments. All royalties and service fees, amounts due for products purchased from Licensor, and any other amounts owed to Licensor by Licensee pursuant to the License shall be subject to a late payment interest
calculated at an annual rate equal to twelve percent (12%) during delinquency. 
 d. Reporting Requirements.
During the term of this Agreement, Licensee shall furnish to Licensor quarterly reports setting forth new store openings, net revenues and comparable store sales (totaled or reasonably grouped) for Tully’s Store in the Territories
(“Quarterly Reports”). 
 14. Inspections and Audits. 
 a. Licensor’s Right to Inspect Stores. To determine whether Licensee is complying with this Agreement, Licensor shall have the
right, at any time during business hours and without prior notice to Licensee, to inspect any of the Licensee Tully’s Stores. 
 b. Licensor’s Right to Audit. Licensor shall have the right, upon prior written notice, to audit or cause to be audited the Quarterly Reports. Licensee shall fully cooperate with representatives of Licensor and independent
accountants hired by Licensor conducting any such audit including without limitation providing all 

  

 Page 8 of 28 

 
back up records, information and financial statements related to the calculation of net revenues. In the event any such audit, taking into account local
variations in generally accepted accounting principles, shall disclose an understatement of the net revenues of the the Licensee Tully’s Stores for any period or periods, Licensee shall pay to Licensor, within fifteen (15) calendar days
after receipt of the audit report, the royalty and service fee due on the amount of such understatement. Further, in the event such audit is made necessary by the failure of Licensee to furnish Quarterly Reports for three or more quarters as herein
required, or if an understatement of net revenues for any period is determined by any such audit to be greater than five percent (5%), Licensee shall reimburse Licensor for the reasonable cost of such audit, including, without limitation, the
charges of any independent accountant and the travel and lodging expenses. 
 15. Termination of License. 
 a. By Licensee. If Licensee is in substantial compliance with this Agreement and Licensor breaches this Agreement and fails to cure
such breach within cure periods described below, Licensee may, in addition to exercising any other right or remedy hereunder, terminate this Agreement subject to its compliance with Section 15 d. below or seek specific performance of the
obligation pursuant to Section 21. 
 b. By Licensor. Subject to compliance with Section 15 d. below,
Licensor may, in addition to exercising any other right or remedy hereunder, terminate this Agreement or seek specific performance of the obligation pursuant to Section 21 if Licensee: 
 (1) Makes an assignment for the benefit of creditors or an admission of its inability to pay its obligations as they become due;

 (2) Files or has filed against it a petition in bankruptcy or any similar proceeding or files any pleading seeking any
reorganization, liquidation, or dissolution under any law, or admits or fails to contest the material allegations of any such pleading filed against it, or is adjudicated a bankrupt or insolvent, or a receiver is appointed for a substantial part of
the assets of Licensee, or the claims of creditors of Licensee are abated or subject to a moratorium under any law; 
 (3)
Makes an unauthorized assignment of the License or ownership of Licensee as hereinafter defined in the section entitled “Assignment, Transfer, and Encumbrance;” 
 (4) Fails to comply with any provision of this Agreement (other than a payment default for which the remedy shall be an action for
damages) or any other mandatory specification, standard, or operating procedure prescribed by Licensor. 
  

 Page 9 of 28 

 c. [Reserved.]  
 d. Termination Procedures. Prior to exercising a right to terminate this Agreement under either Section 15 a. or 15 b. above,
Licensor or Licensee, as applicable, shall give written notice to the other party (the “Party in Breach”) of any alleged breach of this Agreement which gives rise to a right of termination as provided in either Section 15 a. or b.
above. The Party in Breach shall then have thirty calendar days after the receipt of such written notice to cure the alleged breach (the “Cure Period”). In the event that the alleged breach is not cured by the Party in Breach within the
Cure Period, the parties shall commence a mandatory mediation regarding the alleged breach within thirty calendar days of the end of the Cure Period. Upon the earlier of (1) the completion of the required mediation or (2) sixty calendar
days following the end of the Cure Period (unless otherwise extended by agreement of the parties) if for any reason the parties are unable to arrange or conclude the mediation, the party alleging the default shall, if no acceptable resolution of the
alleged default shall have been reached, have the right to declare a termination of this Agreement and thereafter pursue all remedies under this Agreement including without limitation any of the proceedings described in Section 21 below.

 16. Licensee’s Obligation upon Termination or Expiration. In the event this Agreement is terminated by either party, or
expires pursuant to any provision of the Agreement or any decision by an arbiter or judicial authority then Licensee shall, within the time prescribed in the decision or within 30 days in the absence of such a prescription: 
 a. Payment of Amounts Owed to Licensor. Licensee shall pay to Licensor such royalty and service fees, amounts owed for products
purchased by Licensee from Licensor, and all other amounts owed to Licensor which are then unpaid. 
 b. Return of
Information. Licensee shall immediately return to Licensor all copies of any manuals, recipes, specifications, menus, software, records or documents of any kind (in any form of media) delivered to Licensee by Licensor during the term of the
License. 
 c. Cancellation or Transfer of Assumed Names. Licensee shall take such action as may be required to cancel
all assumed name or equivalent registrations relating to its use of any Business Name or Trademark, or transfer said registrations to Licensor in full and without recourse. 
 d. Continuing Obligations. All rights and obligations of Licensor and Licensee which expressly, or by their nature, survive the
expiration or termination of the License shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of the License under this Agreement and until they are satisfied in full or by their nature expire.

  

 Page 10 of 28 

 17. Assignment, Transfer, and Encumbrance. 
 a. By Licensor. With the prior written consent of Licensee (which consent may not unreasonably be withheld) this Agreement may be
assigned by Licensor and shall inure to the benefit of any assignee or other legal successor to the interest of Licensor herein, provided that Licensor, subsequent to any such assignment, shall remain liable for the performance of its obligations
under this Agreement. 
 b. By Licensee. With the prior written consent of Licensor (which consent may not unreasonably
be withheld) this Agreement may be assigned by Licensee and shall inure to the benefit of any assignee or other legal successor to the interest of Licensee herein, provided that Licensee, subsequent to any such assignment, shall remain liable for
the performance of its obligations under this Agreement. It shall be a condition of any such consent that the proposed transferee agrees to be bound by all of the terms of this Agreement. Notwithstanding the foregoing, Licensee shall, upon prior
written notice to Licensor, be entitled to assign its rights and obligations under this Agreement to Licensee’s parent or any entity in which Licensee holds—directly or indirectly—at least fifty percent of the actual or beneficial
voting control of such subsidiary provided that Licensee, subsequent to any such assignment, shall remain liable for the performance of its obligations under this Agreement. In connection with an assignment, Licensee and its assignee shall execute
such documents of assignment as Licensor may reasonably require. The rights contained in Sections 1 to 37 of this Agreement may not be assigned separately from the Roasting Rights, which appear as Schedule E to this Agreement, nor may the Roasting
Rights be assigned separately from the rights contained in Sections 1 to 37 of this Agreement. 
 18. Representations and Warranties. 

 a. By Licensor. Licensor hereby represents and warrants as follows: 
 1. Licensor shall use all commercially reasonable efforts to maintain and protect the value of the Asia Rights against any
infringement, unauthorized disclosure, misuse bankruptcy or other failures or any other acts by Licensor or its affiliates and shall bear all costs associated therewith. 
 2. This Agreement has been entered into at arms length between Licensor and Licensee and that there is no overreaching on the part
of Licensee. 
  

 Page 11 of 28 

 3. Except as disclosed with respect to the security interest claimed by UCC
Ueshima Coffee Company, Ltd. (“UCC”) under a 2001 exclusive license agreement as described below, the Asia Rights are free of any encumbrances, security interest, or other limitations except the blanket security interest held by Benaroya
Capital. Licensor shall assist Licensee in the execution of a separate Security Agreement, subject only to the claims of UCC. 
 4. UCC and Licensor were parties to a 2001 exclusive license agreement for certain territories which are included among the Territories. In June 2006, Licensor notified UCC that it was in breach of that agreement, and on
November 14, 2006, Licensor notified UCC that the UCC license was terminated. UCC disputes that it was in breach and disputes the termination of the UCC license. Licensor is a party to litigation with UCC. Except for that matter, there is no
action or proceeding pending or threatened against it before any court, administrative agency or other tribunal which might have a material adverse effect on its business or condition, financial or otherwise or on the Asia Rights. Licensor knows of
no infringement by any third party of Licensor’s trademarks, trade secrets or other intellectual property rights in the U.S. or the Territories, other than any infringement by UCC since the termination and the possible third party use or claim
of right with regard to the “Bellaccino” mark in some of the Territories. Licensor agrees to indemnify, defend and hold harmless Licensee from and against any claims, losses, lawsuits or damages of any kind related to (1) any third
party (including UCC) claim of infringement brought against Licensee related to Licensee’s use of the Asian Rights in the Territories, and (2) any third party claim of senior use of the trademark (“Tully’s”) in the U.S. to
the extent such use, if any, has a material adverse effect upon the Asian Rights. 
 5. Licensor has full power and
authority to grant a license in the Asia Rights to Licensee, unless a court of competent jurisdiction should determine otherwise in connection with the litigation with UCC. 
 6. Licensor is a corporation duly organized, validly existing and in good standing under the laws of the state of Washington, USA.

 7. Licensor has taken all actions necessary to authorize it to enter into and perform fully its obligations under
this Agreement and all other documents specifically referenced herein (“Licensor Documents”) and to consummate the transactions contemplated herein and therein. This Agreement is, and upon their execution the Licensor Documents will be,
the legal, valid and binding obligations of Licensor, enforceable in accordance with their respective terms. 
 8.
There have not been and there is not now existing any product liability claims associated with Licensor’s products represented by Licensor’s intellectual property. 
  

 Page 12 of 28 

 9. Neither the execution of this Agreement or any of the Licensor Documents nor
the consummation of the transactions contemplated herein or therein will: (a) violate any provision of the Articles of Incorporation, bylaws or other constituent documents of Licensor; (b) violate, conflict with or constitute a default
under, permit the termination or acceleration of, or cause the loss of any rights or options under, any agreement binding upon Licensor; or (c) require the approvals of any third parties. 
 b. By Licensee. Licensee hereby represents and warrants as follows: 
 1. Licensee has full power and authority to license the Asia Rights from Licensor. 
 2. Licensee is a corporation duly organized, validly existing and in good standing under the laws of the state of Nevada.

 3. Licensee has taken all actions necessary to authorize it to enter into and perform fully its obligations under
this Agreement and to consummate the transactions contemplated herein and therein. This Agreement is the legal, valid and binding obligation of Licensee, enforceable in accordance with its terms. 
 4. Neither the execution of this Agreement nor the consummation of the transactions contemplated herein or therein will:
(a) violate any provision of the Articles of Incorporation, bylaws or other constituent documents of Licensee. 
 c.
Survival. The covenants, representations and warranties made by Licensor and Licensee herein shall survive the Closing. 
 19.
Covenants. 
 a. [Reserved.] 
 b. Financial Records. Licensor shall on an annual basis provide Licensee with copies of Licensor’s audited financial
statements. 
 20. Closing. 
 a. Time and Place. Subject to the conditions precedent stated herein, the consummation of this License Agreement (the “Closing”) shall take place at the designated office of Licensee, provided that
all parties agree to accept facsimile signatures on documents for the purposes of the Closing. 
  

 Page 13 of 28 

 b. Deliveries at Closing. Subject to the satisfaction of the conditions precedent
contained in Section 20 c., at the Closing the following shall occur: 
 1. Licensee shall pay to Licensor the
License Fee, in cash or by wire transfer of immediately available funds. 
 2. Licensor shall provide to Licensee a
certificate of good standing and certified copy of its Articles of Incorporation, and Licensee shall provide to Licensor documentation as to Licensee’s company standing. 
 3. Licensor shall provide to Licensee copies of all U.S. federal and international registrations made with respect to the Business
Names and Trademarks together with copies of available state registrations of the same. 
 c. Conditions Precedent. At
Closing, all of the following conditions precedent shall be complete and true, as applicable, unless waived by the party entitled to receive the same: 
 1. [Reserved.] 
 2. All representations and warranties made by each party shall
be true and correct in all respects on and as of the Closing with the same force and effect as though made on and as of the Closing. Each party shall have performed and complied with all agreements and conditions required to be performed or complied
with prior to or at the Closing. 
 3. There shall have been no material adverse change to the business or operations
of Licensor since the commencement of the parties’ negotiations. 
 4. No action or proceeding shall have been
initiated to restrain or challenge this Agreement or any matter contemplated hereby. 
 21. Enforcement. 
 a. Judicial Enforcement, Injunction, and Specific Performance. Notwithstanding Section 21 b., the parties shall have the right
to elect to seek injunctive or equitable relief as provided for in this Section 21 a. in the state or federal courts situated in Seattle, Washington, USA (and/or in any appellate court therefrom). The parties each consent to jurisdiction in
such courts, waive objection to such venue, waive trial by jury. The parties stipulate and agree that any judgment relating to this Agreement which is entered in a court located within the State of Washington shall be binding throughout the world
and may be sued upon, docketed, entered and/or enforced, without challenge or opposition on their part and without re-trial of any of the issues 

  

 Page 14 of 28 

 
which gave rise to such judgment, in any state, country, province, commonwealth or territory having jurisdiction over their respective persons or properties.
Each party shall be entitled, without bond, to the entry of temporary and permanent injunctions and orders of specific performance enforcing the provisions of this Agreement; with respect to Licensor, such provisions include without limitation those
relating to Licensee’s use of the Business Names and Trademarks, the obligations of Licensee upon termination or expiration of this Agreement and assignment of the License and ownership interests in Licensee, and to prohibit any act or omission
by Licensee that constitutes a violation of any applicable law, ordinance, or regulation, is dishonest or misleading to customers or prospective customers of any Licensee Tully’s Store, constitutes a danger to employees or customers of the
Store or to the public, or may impair the goodwill associated with the Business Names and Trademarks and Tully’s Stores. If a party secures any such injunction or order of specific performance, the other agrees to pay it an amount equal to the
aggregate of its costs of obtaining such relief, including without limitation reasonable attorney and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses, and any
damages incurred as a result of the breach of any such provision. If Licensor commences any such action for an injunction or order of specific performance and is not the prevailing party therein, Licensor agrees to pay to Licensee an amount equal to
the aggregate of Licensee’s costs of defending against such relief, including without limitation reasonable attorney and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses, and travel and
living expenses, and any damages incurred by Licensee as a result of such proceedings. 
 b. Arbitration. Except
insofar as a party elects to enforce this Agreement by judicial process, injunction, or specific performance as hereinabove provided, all disputes, controversies and claims arising out of or relating to any provision hereof, not otherwise resolved
through good faith discussions pursuant to Section 21 c. below, shall be settled by arbitration in Seattle, Washington, under the U.S. Arbitration Act (9 U.S.C. §§ 1 et seq.), if applicable, and the Rules of the American
Arbitration Association (relating to the arbitration of disputes arising under License and license agreements, if any, otherwise the general rules of commercial arbitration), provided that the arbitrator shall award, or include in his award, the
specific performance of this Agreement unless he determines that performance is impossible. Judgment upon the award of the arbitrator may be entered in any court having jurisdiction thereof or over Licensor or Licensee. 
 c. Meet and Discuss Requirement. Before proceeding under Sections 21 a or b, the party who intends to initiate action must provide
written notice of dispute to the other party referencing this subsection and proposing a date at which the parties will meet in a good faith effort to resolve the dispute. The meeting shall take place at the office of the party receiving notice of
the dispute, or at a mutually agreeable location. If the parties are unable to resolve the dispute within thirty (30)

  

 Page 15 of 28 

 
calendar days after delivery of the written notice of dispute, then either may pursue any claim or action pursuant to Sections 21a or 21b. Each party shall
pay their own travel expenses and the meeting shall take place at the office of the party receiving notice of the dispute, or at a mutually agreeable location. In the interest of both time and expense, parties shall make a good faith effort to
resolve multiple disputes in one meeting should multiple disputes arise at one time. 
 d. Severability and Substitution of
Valid Provisions. All provisions of this Agreement are severable, and this Agreement shall be interpreted and enforced as if all completely invalid or unenforceable provisions were not contained herein, and partially valid and enforceable
provisions shall be enforced to the extent valid and enforceable. If any applicable and binding law or rule of any jurisdiction requires a greater prior notice of the termination of or refusal to renew this Agreement than is required hereunder, or
the taking of some other action not required hereunder, or if under any applicable and binding law or rule of any jurisdiction, any provision of this Agreement or any specification, standard, or operating procedure prescribed by Licensor is invalid
or unenforceable, the prior notice and/or other action required by such law or rule shall be substituted for the notice requirements hereof, or such invalid or unenforceable provision, specification, standard, or operating procedure shall be
modified to the extent required to be valid and enforceable. Such modifications to this Agreement shall be effective only in such jurisdiction and shall be enforced as originally made and entered into in all other jurisdictions. 
 e. Rights Of Parties Are Cumulative. The right of Licensor and Licensee hereunder are cumulative, and no exercise or enforcement by
Licensor or Licensee of any right or remedy hereunder shall preclude the exercise or enforcement by Licensor or Licensee of any other right or remedy hereunder, or which Licensor or Licensee is entitled by law to enforce. 
 22. U.S. Dollars. All references to dollars as expressed herein are to United States currency. All payments are to be calculated using the
applicable exchange rate to U.S. Dollars as reported by the Wall Street Journal or, if such report should be come unavailable, by another publication or online journal of record, for the end of the day prior to the date of payment. 
 23. Goodwill, Trademark and Business Name Protection, Third Party Litigation, Cessation of Use. 
 a. [Reserved.] 
 b. Licensor retains the right to protect the Trademarks and Business Names from infringement and to prosecute infringers. Licensor and Licensee shall cooperate to bring suit for infringement of the Trademarks and Business Names. In
the event Licensor fails to prosecute any infringement of the Trademarks and Business 

  

 Page 16 of 28 

 
Names, Licensee shall have the right to prosecute such infringement and seek reimbursement for all reasonable costs incurred in such prosecution from
Licensor. Licensor has the right to control all actions against infringers and to resolve such matters whether by settlement or suit. If Licensee becomes aware of any infringement of the Trademarks or Business Names, it shall notify Licensor in
writing. Licensee shall cooperate with Licensor by promptly supplying, at a reasonable cost to Licensor, assistance and information reasonably considered necessary by Licensor for settlement or suit. 
 c. Subject to Section 24, Licensee agrees not to adopt, use, apply to register or register anywhere any trademark or Business
Names, service mark or business name which is confusingly similar to the Trademarks or which contain the designations “TULLY” or “TULLY’S”, without regard to the nature of the associated goods, services or business either
during the term of Licensee or thereafter. 
 24. Registration of Business Names and Trademarks in the Territories. The parties
acknowledge that the Asia Rights have not been registered in the Territories. Trademarks have been applied for in some of the Territories, and Trademarks have been registered in certain of these Territories as indicated in Schedule B. The
effectiveness and requirements for Trademark registrations varies by nation. Licensee agrees to give Licensor advance written notice of its intention to open one or more Tully’s Stores in any one or more of the Territories. Upon such notice the
parties agree to cooperate in taking all commercially reasonable steps to obtain such registrations or in taking all such preliminary steps as are necessary to protect the Business Names and Trademarks prior to the opening of any Tully’s Store
in any of the Territories. Licensor shall bear all of the costs of making such registrations, including any such registrations that Licensor request Licensee to undertake on its behalf. Licensee shall be responsible for all costs associated with
registering Licensee’s interest in the Asia Rights in any jurisdiction or any of the Territories. 
 25. Notices. All notices and
requests in connection with this Agreement shall be in writing and may be given by registered or certified mail, personal delivery or facsimile addressed as follows. 
  

			
	 To:
	 	Tully’s Coffee Corporation
		 	3100 Airport Way South
		 	Seattle, WA 98134 U.S.A.
		 	Attn: President
		 	Facsimile No. (206) 233-2075
		
	 with a copy to:
	 	The Vernon Law Group, PLLC
		 	Attn: John Vernon, Esq.
		 	4242 Renaissance Tower
		 	1201 Elm Street
		 	Dallas, TX 75270
		 	Facsimile No. (214) 751-2002

  

 Page 17 of 28 

			
	 To:
	 	Tully’s Coffee Asia Pacific, Inc.
		 	3100 Airport Way South
		 	Seattle, WA 98134 U.S.A.
		 	Attn: President
		 	Facsimile No. (206) 233-2075

 or to such other address as the party to receive the notice or request shall designate by written notice to the
other. The effective date of any notice or request shall be five (5) calendar days from the date on which it is sent by the addressor, or when received when personally delivered or sent by facsimile. 
 26. Waiver. The failure of either party to insist in any one or more instances upon strict performance by the other of its obligations hereunder
shall not constitute a waiver or relinquishment of any such obligation for the future, and the obligation shall continue in full force and effect. 
 27. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington, U.S.A. without giving effect to the conflict of law rules or choice of law rules thereof to the contrary,
and by applicable federal law. 
 28. Headings. Headings used in this Agreement are for reference purposes only and shall not be
deemed part of this Agreement. 
 29. Relationship. The relationship between the parties hereto is that of Licensor and Licensee as
defined in this Agreement, and this Agreement is not to be construed as creating a partnership, joint venture, master-servant, principal-agent, or other relationship for any purpose whatsoever. Except as may be expressly provided herein, neither
party may be held for the acts either of omission or commission of the other party, and neither party is authorized to, or has the power to, obligate or bind the other party by contract, agreement, warranty, representation or otherwise in any manner
whatsoever. 
 30. Force Majeure. If either party is delayed or interrupted in or prevented from, the performance of its obligations
hereunder by reason of an act of God, fire, flood, war, public disaster, strikes or labor difficulties, governmental enactment, regulation or order, or any other cause beyond its control, such party shall not be liable to the other therefor; and the
time for the performance of its obligations shall thereupon be extended for a period equal to the duration of the contingency that occasioned the delay, interruption or prevention. 
  

 Page 18 of 28 

 31. Integration and Modification. This is the entire agreement between the parties. There are no
other agreements or representations not set forth herein, and this Agreement incorporates all prior negotiations, agreements, and representations. This Agreement may not be modified except in writing signed by each party. 
 32. Languages. Both parties acknowledge that this Agreement is written in English. 
 33. Counterparts. This Agreement may be signed in one or more counterparts, each of which may be deemed an original, but all of which together
shall constitute one and the same agreement notwithstanding that both parties are not signatories to each counterpart, however, this Agreement shall not be enforceable against any party until a counterpart has been executed by both parties hereto.

 34. Waiver of Breach. The waiver by either party of any breach of this Agreement shall not be deemed a waiver of any subsequent
breach. 
 35. Other Agreement. This Agreement is entered into contemporaneously with the Roasting Rights Agreement. 
 36. Franchising. To the extent this Agreement is applied to franchising, sub-franchising, area development or other similar systems, the following
provisions shall apply: 
 a. Licensee shall be responsible for ensuring that any franchisee, sub-franchisee, area
developer or other unit applies the standards and other elements set forth in this Agreement to their locations. This includes, but is not limited to, the quality of any in-store merchandise, the quality of signage, and the look and feel of the
store. 
 b. Should any franchisee, sub-franchisee, area developer or other unit allow any element of their business to
fall below the standards set forth in this Agreement, or pursue lines of business not authorized by this or another agreement, Licensee shall have 30 days to cause the franchisee or other unit to be in compliance or to initiate termination
proceedings against the franchisee or other unit pursuant to the agreement particular to that relationship. Should Licensee fail to either cause the defect to be cured or start termination proceedings, the Licensee shall be in breach of this
Agreement. In the event the Licensee is in breach pursuant to this provision, the procedure shall be the same as that which is set forth in section 15(d) of this Agreement. 
 c. The various franchise agreements may designate additional remedies for termination or breach in addition to those contained in
this agreement. In instances 

  

 Page 19 of 28 

 
where both agreements shall apply, remedies may be cumulative to the extent allowed by the agreements, but the causes of action under both agreements must be
addressed in the same hearing, trial, arbitration, mediation, or other resolution procedure. 
 37. Roasting Rights. This Agreement
shall be supplemented by a grant of Roasting Rights. Those rights are set forth in Schedule E, the Grant of Roasting Rights. The Roasting Rights are hereby integrated into this Agreement, and are not severable from this Agreement. 
 The remainder of this page has been left blank intentionally. 
  

 Page 20 of 28 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written. 
 Executed as of the date set forth above. 
 LICENSOR: 
  

			
	 TULLY’S COFFEE CORPORATION

		
	By:	 	 
	Printed Name:	 	Kristopher S. Galvin
	Title:	 	Executive Vice President and CFO

 LICENSEE: 
  

			
	 TULLY’S COFFEE ASIA PACIFIC, INC.

		
	By:	 	 
	Printed Name:	 	Tom T. O’Keefe
	Title:	 	Chairman

  

 Page 21 of 28 

 SCHEDULE A 
 TO 
 TULLY’S COFFEE LICENSE AGREEMENT 
 LIST OF BUSINESS NAMES 
 Tully’s

 Tully’s Coffee 
 Tully’s Roaster of Fine Coffee 
 Bellaccino 
 And the equivalents of any of the above in any foreign languages 
 And any derivatives of foregoing.

  

 Page 22 of 28 

 SCHEDULE B 
 TO 
 TULLY’S COFFEE LICENSE AGREEMENT 
 LIST OF TRADEMARKS FOR SERVICES AND GOODS 
 LIST OF CURRENTLY ACTIVE1 DOMAIN NAMES 
 Tullys.com 
 Telltullys.com 
 Mytullyscard.com 
  

	 1
	 Tully’s owns and protects many domain names that are similar to its
trademarks. However, the domains listed are the current primary websites. 

  

 Page 23 of 28 

 SCHEDULE C 
 TO 
 TULLY’S COFFEE LICENSE AGREEMENT 
 DESCRIPTION OF TERRITORIES COVERED BY THE LICENSE AGREEMENT 
 American Samoa 
 Australia 
 Bangladesh 
 Bhutan 
 Brunei 
 China 
 Cook Islands 
 Guam

 Hong Kong 
 India 
 Indonesia 
 Laos 
 Macao 
 Malaysia 
 Mongolia

 Myanmar (Formerly Burma) 
 Nepal 
 New Zealand 
 North Korea 
 Pakistan 
 Palau 
 Philippines 
 Saipan 
 Singapore

 Solomon Islands 
 South Korea 
 Sri Lanka (Formerly Ceylon) 
 Taiwan 
 Thailand 
 Vietnam 
  

 Page 24 of 28 

 SCHEDULE D 
 TO 
 TULLY’S COFFEE LICENSE AGREEMENT 
 Items, bearing any marks of Licensor, that are being offered for sale in the United States through Licensor’s Tully’s stores or other channels authorized by
Licensor, unless the sale of such items by Licensee would conflict with trademarks of any other party within that Territory, or would conflict with local laws or regulations. 
  

 Page 25 of 28 

 SCHEDULE E 
 TO 
 TULLY’S COFFEE LICENSE AGREEMENT 
 GRANT OF ROASTING RIGHTS 
 1. Licensee’s
Roasting and Purchase Right. Except as provided in this Schedule and the Agreement, all coffee purchased by Licensee shall be purchased from Licensor. Except as provided in this Schedule, Licensor shall not sell, and shall not allow or cause any
third party to sell, Tully’s branded coffee to any party within the Territories other than Licensee without the prior written consent of Licensee in its sole discretion. All coffee roasted by Licensee (or its wholly owned subsidiary) or
produced for Licensee by an Authorized Third Party Roaster as permitted by this Schedule must comply with Licensor’s quality and service standards for sourcing, roasting, packaging, labeling, storage and transportation of coffee,
Licensor’s recipes and specifications and such other standards as reasonably established by Licensor from time to time (the “Roasting Standards”). 
  

	 	a.	Roasting of coffee by Licensee. Licensee may roast coffee beans and package whole bean and ground coffee for its own use and for sale to third parties pursuant to the
Agreement so long as Licensee satisfies the Roasting Standards and all other requirements of this Schedule. Such roasting and packaging must occur within the Territories, and the coffee produced by Licensee may not be sold, shipped or otherwise used
outside the Territories. Licensee may conduct such roasting and packaging operations directly or through one or more wholly-owned subsidiaries (Licensee shall be wholly responsible for the obligations and performance of such wholly-owned
subsidiaries with respect to this Schedule). 

  

	 	b.	 Roasting of coffee for Licensee by Authorized Third Party Roasters. From time to time, Licensor may designate one or more third parties as being authorized
to roast and package certain coffees for the Territories, or for some portion of the Territories. Parties which have been evaluated by Licensor and approved by Licensor are referred to as “Authorized Third Party Roasters.” Licensor shall
establish the criteria for approval in its sole discretion and may add or terminate Authorized Third Party Roasters from time to time in its sole discretion, and shall notify Licensee of such changes. Licensee and its wholly owned subsidiaries may
purchase from these Authorized Third Party Roasters whole bean and ground coffee for their own use and for sale to third parties pursuant to the Agreement, so long as Licensee satisfies the requirements of this 

  

 Page 26 of 28 

	 	 
Schedule. The coffee purchased from Authorized Third Party Roasters may not be sold, shipped or otherwise used outside the Territories. Licensee may
recommend candidates for Authorized Third Party Roaster to Licensor, and Licensor will reasonably consider whether such candidates meet its criteria. 

 2. Establishment and Termination of Third Party Roasting. 
  

	 	a.	Territory Election Notice. Licensee shall not roast any coffee, or purchase any coffee from any party other than Licensor, unless Licensee has given written notice to
Licensor, not less than 60 days prior to the effective date for the notice, that Licensee wishes to roast some or all of its own coffee or to purchase some or all of its coffee requirements from an Authorized Third Party Roaster. This Territory
Election Notice shall be made on a Territory by Territory basis from the Territories. The Territory Election Notice shall state the particular Territory covered by the notice, the particular coffees covered by the notice, the effective date for the
notice, whether the coffee will be roasted by Licensee or purchased from an Authorized Third Party Roaster for that Territory. Licensor shall review the Territory Election Notice and, if the roasting facility has been approved for this purpose,
shall give its approval to Licensee. 

  

	 	b.	Territory Resumption Notice. Licensee may determine, subsequent to the effective date for a Territory Election Notice, that Licensee wishes to resume the purchase of some or
all of its coffee for that Territory from Licensor. In that event, Licensee shall give written notice to Licensor, not less than 60 days prior to the effective date for the notice, that Licensee wishes to establish Licensor as supplier of coffee for
that Territory (a “Territory Resumption Notice”). This Territory Election Notice shall be made on a Territory by Territory basis from the Territories. The Territory Resumption Notice shall state the particular Territory covered by the
notice, the particular coffees covered by the notice, and the effective date for the notice. 

  

	 	c.	Reporting. Within thirty (30) days after the end of each calendar month, Licensee will send Licensor a written report indicating for the calendar month just completed,
for each Territory the: (i) amount and types of coffee roasted by Licensee, and (ii) names of the Authorized Third Party Roasters supplying Licensee. 

  

 Page 27 of 28 

	 	d.	Record Keeping. Licensee agrees to maintain complete and accurate records related to its performance under this Schedule. Licensor shall have the right to inspect, on a
quarterly basis during normal business hours, Licensee’s records with respect to coffee purchased and produced pursuant to this Schedule. 

  

	 	e.	Audits; Quality Control Inspections. Licensor shall have the right, on a quarterly basis during the term of this Schedule to perform quality control inspections (using
Licensor’s employees or third party representatives) at the coffee production, storage and distribution facilities in the Territories. 

 3. International Carrier Sales. Licensee and Licensor may have opportunities to sell coffee to airlines, railroads, and cruise lines (“transportation enterprises”) that have vehicles, vessels or trains that travel between
locations outside the Territories and one or more of the Territories. It shall not be a violation of the Agreement or this Schedule for Licensor to sell and deliver coffee to a transportation enterprise outside of the Territories, and for that
transportation enterprise to serve that coffee to its customers within one or more of the Territories. It shall not be a violation of the Agreement or this Schedule for Licensee to sell and deliver coffee to a transportation enterprise within the
Territories, and for that transportation enterprise to serve that coffee to its customers outside the Territories. If Licensee or Licensor should establish such a relationship with a transportation enterprise, it will advise the other party.

 4. Integration. References in this Schedule to the “Agreement” shall mean the Tully’s Coffee Exclusive License Agreement dated as of
October 12, 2007 between Tully’s Coffee Corporation and Tully’s Coffee Asia Pacific, Inc. to which this Schedule appears as Schedule E. Except as otherwise stated in this Schedule, terms defined in the Agreement shall have the same
meaning for purposes of this Schedule. This Schedule shall be considered fully integrated into the Agreement. It will be governed by the terms of the Agreement. It may not be transferred or assigned independently from the Agreement, nor may it be
terminated separately or independently from the Agreement. 
  

 Page 28 of 28

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