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EXHIBIT 10.1    
  

EMPLOYMENT AGREEMENT  

        THIS EMPLOYMENT AGREEMENT (this "Agreement"), dated effective September 1, 2002, is between Array Biopharma Inc., a Delaware corporation (the
"Company"), and                        ("Employee"). 

        In
consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: 

        1.    Employment.    The Company hereby employs Employee and Employee hereby agrees to be employed by the Company for
the period and upon the terms and conditions hereinafter set forth. 

        2.    Capacity and Duties.    Employee shall be employed by the Company in such executive capacity as the officers or
directors of the Company shall determine. During his employment Employee shall perform the duties and bear the responsibilities commensurate with his position and shall serve the Company faithfully
and to the best of his ability, under the direction of the board of directors and the duly elected officers of the Company. Employee shall devote his entire working time, attention and energies to the
business of the Company. His actions shall at all times be such that they do not discredit the Company or its products and services. Employee shall not engage in any other business activity or
activities that, in the judgment of the board of directors, may conflict with the proper performance of Employee's duties hereunder, including constituting a conflict of interest between such activity
and the Company's business. 

        3.    Compensation.    

        (a)  For
all services rendered by Employee the Company shall pay Employee during the term of this Agreement an annual salary as set forth herein, payable semimonthly in
arrears. Employee's initial annual salary shall be $            .(1) During the term of this Agreement, the amount of Employee's salary shall
be reviewed at periodic intervals and, upon agreement of the parties hereto, appropriate adjustments in such salary may be made. In addition, Employee shall be eligible for performance bonuses in cash
and/or equity on an annual or more frequent basis, as determined by, and at the discretion of the Company. 

	(1)
	See
Schedule 1 to this Exhibit 10.1. 

        (b)  In
addition to salary payments as provided in Section 3(a), the Company shall provide Employee, during the term of this Agreement, with the benefits of such
insurance plans, hospitalization plans and other employee fringe benefit plans as shall be generally provided to employees of the Company and for which Employee may be eligible under the terms and
conditions thereof. Nothing herein contained shall require the Company to adopt or maintain any such employee benefit plans. 

        (c)  During
the term of this Agreement, except as otherwise provided in Section 5(b), Employee shall be entitled to sick leave and annual vacation consistent with the
Company's customary sick leave and vacation policies. 

        (d)  During
the term of this Agreement the Company shall reimburse Employee for all reasonable out-of-pocket expenses incurred by Employee in
connection with the business of the Company and in the performance of his duties under this Agreement upon presentation to the Company of an itemized accounting of such expenses with reasonable
supporting data. 

        4.    Term.    Unless sooner terminated in accordance with Section 5, the term of this Agreement shall be two
years from the date of this Agreement, and thereafter shall continue for one year terms from year to year unless and until either party shall give notice to the other at least 60 days prior to
the end of the original or then current renewal term of his or its intention to terminate at the end of such term. The provisions of Sections 6, 7, 8 and 10 shall remain in full force and
effect for the time periods specified in such Sections notwithstanding the termination of this Agreement. 

 

        5.    Termination/Severance.    

        (a)  If
Employee dies during the term of this Agreement, the Company shall pay his estate the compensation that would otherwise be payable to him for the month in which his
death occurs, this Agreement shall be considered terminated on the last day of such month and the Company shall cause any issued but unvested options granted to Employee to immediately vest. 

        (b)  If
during the term of this Agreement Employee is prevented from performing his duties by reason of illness or incapacity for a continuous period of 120 days the
Company may terminate this Agreement upon 30 days' prior notice thereof to Employee or his duly appointed legal representative. For the purposes of this Section 5(b), a period of illness
or incapacity shall be deemed "continuous" notwithstanding Employee's performance of his duties during such period for continuous periods of less than 15 days in duration. 

        (c)  The
Company may terminate this Agreement at any time, upon 10 days' prior notice, for Employee's (1) gross negligence; (2) a material breach of any
obligation created by this Agreement; (3) a violation of any policy, procedure or guideline of the Company, or any material injury to the economic or ethical welfare of the Company caused by
Employee's malfeasance, misfeasance, misconduct or inattention to Employee's duties and responsibilities, or any other material failure to comply with the Company's reasonable performance
expectations, upon notice of the same from the Company and failure to cure such violation, injury or failure within 30 days; or (4) misconduct, including but not limited to, commission
of any felony, or of any misdemeanor involving dishonesty or moral turpitude, or violation of any state or federal law in the course of his employment; theft or misuse of the Company's property or
time. 

        (d)  The
Company may terminate this Agreement at any time for any or no reason upon 30 days' notice to Employee. 

        (e)  If
this Agreement is terminated by the Company prior to the end of the term pursuant to any provision other than 5(a) or 5(c), then (i) the Company shall pay to
Employee one year's annual salary, or the amount due Employee through the remainder of the term, whichever is greater, in equal monthly installments, subject to all applicable deductions and
withholdings; and (ii) the Company shall cause any issued but unvested options granted to Employee to immediately vest. In the event of (x) reduction of Employee's salary to a rate below
the initial annual salary; or (y) consolidation or merger involving the Company in which the Company is not the surviving entity or any transaction in which more than 50% of the Company's
voting power is transferred or more than 50% of the Company's assets are sold (the items in subparagraph (y), collectively, a "Change of Control"), Employee may elect to treat such event, by
notice of termination within 30 days of its occurrence, as a termination pursuant to 5(d); provided, that any accelerated vesting pursuant to (ii) caused by such notice of termination as
a result of (y) shall cause no more than 75% of all outstanding and unvested options granted to Employee to vest. 

        (f)    If
a Change of Control occurs, 75% of all outstanding and unvested options granted to Employee as of such event shall immediately vest, and the remainder of all
outstanding and unvested options granted to Employee as of such event shall vest one year from the date of the closing of such event if Employee remains in continuous service with the Company for one
year from such closing date; provided, that any termination of Employee pursuant to Paragraph (5)(d) within the first year after a Change of Control occurs shall cause the remaining 25%
unvested options outstanding as of the Change of Control to immediately vest. The foregoing acceleration provision shall be supplementary to, and shall not diminish any rights that Employee has under,
any other written agreement with the Company, including an option certificate or agreement. 

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        6.    Confidential Information.    This Agreement incorporates by reference all the terms of that certain Confidential
Information Agreement dated as of December 1998 between Employee and the Company, as if fully set forth herein. 

        7.    Covenants Not to Compete or Interfere.    This Agreement incorporates all the terms of that certain Noncompete
Agreement dated as of December 1998 between Employee and the Company, as if fully set forth herein. 

        8.    Waiver of Breach.    A waiver by the Company of a breach of any provision of this Agreement by Employee shall
not operate or be construed as a waiver of any subsequent breach by Employee. 

        9.    Severability.    It is the desire and intent of the parties that the provisions of this Agreement shall be
enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision or portion of this
Agreement shall be adjudicated to be invalid or unenforceable, this Agreement shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable, such deletion to
apply only with respect to the operation of this Section in the particular jurisdiction in which such adjudication is made. 

        10.    Notices.    All communications, requests, consents and other notices provided for in this Agreement shall be in
writing and shall be deemed given if mailed by first class mail, postage prepaid, addressed as follows: (i) If to the Company: to its principal office at 3200 Walnut Street, Boulder, Colorado
80301; (ii) If to Employee: at the Company's principal office; or such other address as either party may hereafter designate by notice as herein provided. Notwithstanding the foregoing
provisions of this Section 10, so long as Employee is employed by the Company any such communication, request, consent or other notice shall be deemed given if delivered as follows: if to the
Company, by hand delivery to any executive officer of the Company (other than Employee), and if to Employee, by hand delivery to him. 

        11.    Governing Law.    This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of Colorado without regard to choice of law provisions thereof, and the parties each agree to exclusive jurisdiction in the state and federal courts in Colorado. 

        12.    Assignment.    The Company may assign its rights and obligations under this Agreement to any affiliate of the
Company or to any acquirer of substantially all of the business of the Company, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by or against any such
assignee. Neither this Agreement nor any rights or duties hereunder may be assigned or delegated by Employee. 

        13.    Entire Agreement.    This Agreement sets forth the entire agreement and understanding of the parties and
supersedes all prior understandings, agreements or representations by or between the parties, whether written or oral, which relate in any way to the subject matter hereof. 

        14.    Amendments.    No provision of this Agreement shall be altered, amended, revoked or waived except by an
instrument in writing signed by the party sought to be charged with such amendment, revocation or waiver. 

        15.    Binding Effect.    Except as otherwise provided herein, this Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective legal representatives, heirs, successors and assigns. 

***Signature
Page Follows*** 

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        IN
WITNESS WHEREOF the parties have executed this Agreement as of the date first above written. 

	 	 	THE COMPANY:
	

 	
 	

ARRAY BIOPHARMA INC.
	

 	
 	

By:	

/s/  ROBERT E. CONWAY      
 Robert E. Conway, Chief Executive Officer
	

 	
 	
EMPLOYEE:
	

 	
 	

/s/        

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Schedule 1 to Exhibit 10.1  

        The following executive officers entered into an Employment Agreement with Array BioPharma Inc. (the "Registrant") effective September 1, 2002 in
the form filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q by the Registrant for the period ended September 30, 2002. The terms of each Employment Agreement
do not differ from the Employment Agreement filed as Exhibit 10.1 except for the annual salary amounts specified in Section 3(a) of each Employment Agreement, as set forth opposite each
person's name below: 

	Employee
 
	 	Section 3(a):

Annual Salary

	Kevin Koch, Ph.D.	 	$	240,000
	David L. Snitman, Ph.D.	 	$	230,000
	Anthony D. Piscopio, Ph.D.	 	$	190,000
	R. Michael Carruthers	 	$	165,000

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EXHIBIT 10.1Exhibit 10.1  

PROMISSORY NOTE  

	$2,890,037.09	 	Dated: November 1, 2002

Seattle, Washington

        FOR VALUE RECEIVED, the undersigned, TULLY'S COFFEE CORPORATION, a Washington corporation ("Maker"), hereby promises to pay to the order of KENT CENTRAL, L.L.C.,
a Washington limited liability company ("Holder"), 1001 Fourth Avenue, Suite 4700, Seattle, Washington 98154, or at such other place as the Holder may from time to time designate in writing, the
principal sum of TWO MILLION EIGHT HUNDRED NINETY THOUSAND THIRTY SEVEN AND 09/100 DOLLARS ($2,890,037.09), or so much as may be outstanding hereunder (herein called the "Principal Balance"), with
interest on the unpaid Principal Balance, until paid in full, at the rates per annum hereinafter specified. 

        This
Note shall be payable as follows: 

        (a)  Commencing
on or about (but not prior to) the last Business Day of November, 2002, and on or about (but not prior to) the last Business Day of each calendar month
thereafter until this Note is paid in full, Holder shall send to Maker a statement identifying all interest which has accrued under this Note for the previous month and the applicable rate or rates at
which such interest has accrued (each such statement being referred to herein as an "Interest Statement"). The Interest Statement shall be sent via facsimile and/or email to Kristopher S. Galvin,
Chief Financial Officer, Tully's Coffee Corporation, 3100 Airport Way South, Seattle, WA 98134; Facsimile No.: (206) 233-2075; Email address:
Kris.Galvin@Tullys.com, and shall be deemed received when an electronic confirmation is received by Holder's facsimile machine or computer. Maker may change the person,
address, facsimile number and/or email address by giving Holder, at the address set forth above for Holder, Attn: Larry R. Benaroya and Attn: Marc G. Nemirow, written notice of such change(s) at least
five (5) business days prior to earliest date on which Holder may give its next statement of accrued interest. Within three (3) Business Days of receiving each Interest Statement, Maker
shall pay Holder all interest which has accrued under this Note for the previous month. As used herein, the term "Business Day" shall mean a day on which banks are open for business in Seattle,
Washington. Any monthly interest which is not paid by the third (3rd) Business Day following Maker's receipt of an Interest Statement shall be compounded by adding said interest to the
Principal Balance of this Note as of the first (1st) day of the month in which Maker received the Interest Statement and thereafter such increased principal balance shall bear interest
at the Note Rate or the Default Rate (defined below), as applicable; provided, however, that the compounding of interest provided for herein shall not be interpreted as permitting Maker to not make a
monthly payment, i.e., it is an Event of Default if Maker does not make a monthly payment on or before the third (3rd) Business Day following Maker's receipt of an Interest Statement.
Notwithstanding anything to the contrary contained herein, (a) if Maker obtains any equity after the date hereof but before November 1, 2003, by way of (A) the sale of stock,
common or preferred, in Maker or any affiliate of Maker, or (B) the sale of any rights to acquire stock, common or preferred, in Maker or any affiliate of Maker, Maker shall pay all of the cash
proceeds from such sale(s), after deducting cash costs of such sale(s), to Holder until the outstanding Principal Balance of this Note has been paid down to an amount that is no greater than EIGHT
HUNDRED NINETY THOUSAND THIRTY SEVEN AND 09/100 DOLLARS ($890,037.09), which shall thereafter be the maximum amount which Maker shall be entitled to borrow hereunder, and, in any event, on or before
November 1, 2003, Maker shall have paid down the outstanding Principal Balance of this Note to an
amount that is no greater than EIGHT HUNDRED NINETY THOUSAND THIRTY SEVEN AND 09/100 DOLLARS ($890,037.09), which shall thereafter be the maximum amount which Maker shall be entitled to borrow
hereunder, and (b) the entire unpaid Principal Balance plus any accrued interest which remains unpaid under this Note shall be paid in full in the form of a final balloon payment on
April 29, 2005 (the "Maturity Date"). All scheduled payments shall, in the absence of a default by Maker under this Note, be applied first to interest due, and any balance shall be applied in
reduction of principal. 

 

        (b)  From
and after the date hereof until the date on which this Note is paid in full, Maker shall pay interest on the Principal Balance at a rate (herein called the "Note
Rate") equal to the per annum rate of interest from time to time publicly announced by Bank of America as its Prime Rate minus one-half (1/2) of one percent per annum. The
term "Prime Rate" as used herein means the rate of interest announced by Bank of America from time to time as its Prime Rate; provided, however, that Bank of America may lend to its customers at
interest rates that are at, above or below its Prime Rate. The Note Rate shall adjust on each date any change in the Prime Rate of Bank of America is announced. In the event Bank of America ceases
announcing a Prime Rate, Holder shall have the right to substitute a similar index using Holder's commercially reasonable business judgment. Interest on this Note shall be computed on a
360-day year comprised of twelve 30 day months, but shall be charged for the actual number of days principal is unpaid. The principal and interest hereto shall be payable in lawful
money of the United States of America which shall be legal tender for public and private debts at the time of payment. In no event shall the interest rate exceed the legal rate of interest provided
for under the laws of the State of Washington. 

        (c)  On
November 1, 2002, November 1, 2003, and November 1, 2004, Maker shall pay Holder a fee equal to three percent (3%) of the maximum permitted
outstanding balance which Maker may borrow hereunder for the period commencing on said date, disregarding the fact that Maker may not have delivered fully executed guaranties from all "Guarantors"
(described below). For example, on November 1, 2002, Maker shall pay Holder $86,701.11 (3% of $2,890,037.09), and on November 1, 2003, Maker shall pay Holder a maximum fee of $26,701.11
(3% of $890,037.09) or a lesser fee if Maker then elects that Maker will have a permitted outstanding balance on this Note at all times after November 1, 2003 which is less than $890,037.09. 

        The
purpose of the foregoing paragraph is to allow Maker, effective on each anniversary date of this Note, to voluntarily reduce the permitted maximum outstanding Principal Balance under
this Note, i.e., the amount that Maker may borrow from Holder, thereafter. 

        This
Note may be prepaid in whole or in part at any time without payment of any prepayment penalty or premium. 

        This
Note evidences a revolving line of credit. Advances under this Note may be requested by Maker no more frequently than once per week and may be requested only in writing by a person
whom Borrower has authorized in writing to request advances from Holder. Once an advance has been repaid, it may be borrowed again under this Note so long as such advance, together with the then
outstanding Principal Balance, does not exceed the maximum permitted amount which may be borrowed under this Note. The following parties are presently authorized to request advances under this Note
until the Holder receives from Borrower at the Holder's address shown above written notice of revocation of their authority: Anthony J. Gioia or Kris Galvin or such other representative of Maker as
shall be designated in writing by Maker from time to time. The unpaid Principal Balance owing on this Note at any time may be evidenced by the Holder's internal records. The Holder shall have no
obligation to advance funds under this Note if: (a) Borrower or any guarantor is in default under the terms of this Note or any of the Loan Documents; (b) Borrower ceases doing business
or is insolvent; (c) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor's guarantee of this Note; or (d) the Holder in good faith deems that a
material adverse change has occurred in Maker's financial condition. 

        This
Note evidences a loan and is secured by a Security Agreement covering certain personal property therein described, together with any other security given to further secure this Note
(collectively called the "Property" herein). This Note, the Security Agreement and any other instruments or documents evidencing, securing or relating to the loan evidenced by this Note are herein
called the "Loan Documents". A $2,000,000 portion of this Note is also guaranteed, or to be guaranteed, by Marc Evanger and Heidi Evanger, husband and wife, Richard Padden and Laurie 

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Padden, husband and wife, Tom T. O'Keefe and Cathy O'Keefe, husband and wife, Kevin Fortun and Cheryl Fortun, husband and wife, George Hubman and Carolyn Hubman, husband and wife, Ron Neubauer and
Linda Neubauer, husband and wife, Larry Hood and Ritchie Hood, husband and wife (the "Guarantors"). This $2,000,000 portion is hereafter referred to as the "Guaranteed Portion." To the extent Maker
has not delivered fully executed guaranties to Holder from all of the foregoing Guarantors, the Guaranteed Portion of the permitted outstanding Principal Balance shall be reduced to
seventy-five percent (75%) of the aggregate amount of the fully executed guaranties delivered to Holder. Once fully executed guaranties from all of the Guarantors have been delivered to
Holder, the permitted outstanding Principal Balance relating to the Guaranteed Portion will thereafter be 100% of the Guaranteed Portion. Notwithstanding the foregoing, the Lease dated
August 16, 1999 entered into between Maker and Holder, together with any and all amendments thereto, shall not be deemed to be a Loan Document. 

        The
following shall be an Event of Default hereunder: 

        (1)  Maker
fails to pay any installment of interest and/or principal when due hereunder; or 

        (2)  Maker
fails to pay, after the expiration of a three (3) day grace period, any monetary amount, other than installments of interest and/or principal for which
there is no grace period, when due hereunder or when due under any of the other Loan Documents; or 

        (3)  Any
non-monetary default or breach by Maker under this Note or any of the other Loan Documents which is not cured within the applicable cure period, if any. 

        Upon
an Event of Default, Maker shall pay interest on the Principal Balance at a rate equal to eighteen percent (18%) per annum (herein called the "Default Rate") until such Event of
Default is cured by Maker. Further, upon an Event of Default, the entire indebtedness represented hereby shall, at the option of the Holder of this Note, without notice and without any additional
opportunity to cure, become immediately due and payable. 

        For
the purpose of protecting Holder's security, Maker agrees that any sale, conveyance or transfer of all or substantially all of the Property or substantially all of the shares of
Maker without Holder's prior written consent shall be an Event of Default hereunder. Similarly, Maker shall not grant, sell, exchange, transfer, assign, lease or otherwise dispose (collectively, a
"Disposition") of any of the Property unless (i) such asset or assets is immediately replaced with an asset or assets of equal or greater net book value, (ii) after such Disposition the
aggregate net book value of the remaining Property, excluding goodwill, is equal to or greater than the aggregate net book value of the Property, excluding goodwill, on the date of this Note, or
(iii) the net sales proceeds from the Disposition of such Property, after payment of ordinary, necessary and reasonable sales' costs and commissions, is paid to Lender to reduce the outstanding
Principal Balance of this Note (and the permitted outstanding Principal Balance of this Note shall thereafter be correspondingly reduced). The foregoing shall not apply to (a) any sale of
inventory or immaterial equipment in the ordinary course of business, and (b) a one-time encumbrance of assets in connection with an asset based secured financing obtained by Maker
not to exceed $1,000,000 (as said amount may be increased under the terms and conditions set forth in Section 22.2 of the Security Agreement). Maker may repay and re-borrow under
such asset based secured financing without such repaying and re-borrowing constituting more than a one-time encumbrance of assets. 

        In
the event an action is brought to enforce any of the terms or obligations under this Note, the prevailing party shall be entitled to recover all of its costs and expenses of such
action, including reasonable attorneys' fees incurred by such prevailing party. 

        Delay
in exercising any of the Holder's rights or options hereunder shall not constitute a waiver thereof, and waiver of any right or option shall not constitute a waiver of the right to
exercise the same in the event of any subsequent Event of Default. 

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        The
provisions of this Note shall be binding upon and inure to the benefit of the heirs, personal representatives, successors and assigns of the parties hereto. 

        This
Note shall be construed according to the laws of the State of Washington. 

        Time
is of the essence of this Note and each and every term and provision hereof. 

	 	 	MAKER:	TULLY'S COFFEE CORPORATION, a Washington corporation
	

 	
 	

 	

By:	

/s/ ANTHONY J. GIOIA

	 	 	 	Name:	Anthony J. Gioia

	 	 	 	Title:	President, CEO

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