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Exhibit 10.1  

 
 

TULLY'S COFFEE EXCLUSIVE LICENSE AGREEMENT    
  

    THIS AGREEMENT, effective as of the 11th day of April, 2001, 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 UCC UESHIMA COFFEE COMPANY, Ltd., a company organized under the laws of Japan ("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
currently engages in the wholesale and retail sale of coffee and related products. 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 and effective immediately upon payment
of the License Fee (this sum being the net amount after applicable tax withholdings in Japan and subject to refunding to Licensee of the amount upon which Licensor successfully receives a tax credit),
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 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, and, for the
purpose of the security interest granted Section 19 below, the goodwill associated with any of the foregoing (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 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. The rights conferred by this Agreement
include 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, provided such off site sales 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 

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with the terms of this Agreement, and (c) that all such sales are subject to the royalty and service fees provided for in 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. 

    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 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 with due consideration to local 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 agrees to purchase all equipment, fixtures, furniture and signs ("Store Furnishings") used in connection with the operation of Tully's Stores from Licensor provided that the price, applicable
taxes, delivery cost to the applicable store, and other terms for such purchases from Licensor shall be competitive with the price, applicable taxes, delivery cost to the applicable store, and other
terms Licensee can obtain such items from other sources. In the event Licensor's price and terms for such items are not competitive with other sources with respect to any proposed purchase of such
items, Licensee shall be entitled to purchase such items from other sources. In the event Licensor fails to respond to any request from Licensee for prices and terms with respect to any purchase of
Store Furnishings within fourteen calendar days, Licensee shall then have the right to immediately purchase such items from other sources. 

    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. 

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    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. 

    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 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 as prescribed from time to time by Licensor except as otherwise consented to
by Licensor in writing. 

    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 

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    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.  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 Licensee's use of the Business Names or Trademarks or operation of Tully's Stores, except to the percentage extent that any such Damages are caused by Licensor's own acts or omissions
to act. Licensor agrees to indemnify, defend and hold harmless Licensee 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 Licensor's use of the Business Names or Trademarks or operation of Tully's Stores, except to the percentage extent
that any such Damages are caused by Licensee's own acts or omissions to act. 

    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 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 Licensor will maintain the absolute confidentiality of all such
information during and after the term of the License, and that they 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. 

    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 Twelve Million United States Dollars (USD 12,000,000) (the "License Fee") in
cash or by wire transfer of immediately available funds (this sum being the net amount after 

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applicable tax withholdings in Japan and subject to refunding to Licensee of the amount upon which Licensor successfully receives a tax credit). The License Fee shall be fully earned upon payment. 

    13.  Royalty and Service Fee.  

    a.  Amount and Payment of Royalty and Service Fee.  Upon payment of the License Fee, the licensing fee
shall be deemed fully paid up for the first seven years. Commencing on the eight anniversary of the date of this Agreement, Licensee agrees to pay to Licensor a * royalty and service fee of * 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, *. 

    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 first eight years of this Agreement, upon request by Licensor
(not more than semi-annually), Licensee shall furnish to Licensor a report setting forth new store openings, net revenues and comparable store sales (totaled or reasonably grouped) for
Tully Stores in the Territories. Commencing on the eighth anniversary of the date of this Agreement, and continuing thereafter during the remaining term of this Agreement, Licensee shall furnish to
Licensor * reports setting forth new store openings, net revenues and comparable store sales (totaled or reasonably grouped) for Tully's Store in the Territories ("* 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.  Commencing on the eighth anniversary of this Agreement, Licensor shall
have the right, upon prior written notice, to audit or cause to be audited the * Reports. Licensee shall fully cooperate with representatives of Licensor and independent accountants hired by Licensor
conducting any such audit including without limitation providing all 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 *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. 

	*
	Confidential
material has been intentionally omitted at this point pursuant to a request for confidential treatment, and such material has been filed separately with the Securities
and Exchange Commission. 

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       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 terminate this Agreement subject to its compliance with Section 15 d. below. 

    b.  By Licensor.  Subject to compliance with Section 15 d. below, Licensor may terminate
this Agreement 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. 

    c.  Unilateral Termination by Licensee.  Notwithstanding Section 15 d. below, this Agreement may
be terminated by Licensee effective upon one year's prior written notice to Licensor, provided that such termination will not have any effect on payments previously received by Licensor or Licensee's
obligations under this Agreement with respect to royalty and service fees which arise prior to the effective date of the termination under this Section 15 c. 

    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 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 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. 

    e.  Termination of Security Interest. The Asia Rights Security Interest (defined herein in Section 19) shall
automatically terminate (1) effective upon the effective date of a unilateral termination of this Agreement by Licensee pursuant to Section 15 c. above; (2) effective upon such
date as the parties shall mutually agree upon in the case of any mutually agreed upon termination of this Agreement; and (3) effective upon the final and conclusive arbitration decision of any
arbitrator rendered pursuant to Section 21 b. below if such decision upholds a declared termination of this Agreement by any Party hereto. The terminations referred to in subparagraphs'
(1) to (3) above are collectively referred to herein as an "Automatic Termination". Upon Automatic Termination, Licensee agrees to execute and/or file any documents or instruments
necessary to release or terminate any filing made by or on behalf of Licensee with respect to the Security Interest. 

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    16.  Licensee's Obligation upon Termination or Expiration.  

    a.  Payment of Amounts Owed to Licensor.  Licensee agrees to pay to Licensor within fifteen
(15) calendar days after the effective date of termination or expiration of the License 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 further agrees that upon termination of the License, it will
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 of Assumed Names.  Licensee further agrees that upon termination or expiration of the
License, it will 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. 

    d.  Continuing Obligations.  All 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. 

    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 UCC 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 UCC, subsequent to
any such assignment, shall remain liable for the performance of its obligations under 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. 

    3.  Except as disclosed with respect to Korea, the Asia Rights are free of any encumbrances, security interest, or other
limitations except the blanket security interest held by Bank of America NT&SA. Licensor agrees to procure from Bank of America NT&SA a release (the "BofA Release") of its security interest in the
Asia Rights and the related other collateral described in Section 19 and shall
assist Licensee in filing and perfecting a security interest in the Asia Rights and the other collateral described in Section 19. 

    4.  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 

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or condition, financial or otherwise or on the Asia Rights. Other than in Korea and New York, 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. 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 unauthorized registration of Licensor trademark or tradename in Korea occurring prior to the date of this Agreement, (2) any third party claim of infringement brought
against Licensee related to Licensee's use of the Asian Rights in the Territories, and (3) 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 or the Security Interest. 

    5.  Licensor has full power and authority to grant a license in the Asia Rights to Licensee. 

    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. 

    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 Hong Kong. 

    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.  Security Agreement; Exclusive and Perpetual License Registration.  Effective immediately upon the
Payment of the License Fee (less any applicable tax withholding) Licensor hereby grants to Licensee a security interest (the "Asia Rights Security Interest") in all of Licensor's right title and
interest in and to the (a) Asia Rights, (b) the registered and unregistered intangible proprietary rights held or used by Licensor related to Tully's Stores in the Territories; and
(c) all increases in any of the foregoing, all cash proceeds and noncash proceeds (including, without limitation, payments due under this Agreement), products, offspring, rents and profits and
all related goodwill of all of the foregoing 

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collateral, and all payments under insurance (whether or not Secured Party (Licensee) is the loss payee thereof) of such collateral, to secure Licensor's performance of its obligations under this
Agreement (other than any obligation which is limited to the payment of money or which involves an obligation to protect the Asia Rights from infringement where Licensee shall have the right to
prosecute such action on its own and seek reimbursement from Licensor) and agrees if reasonably necessary to execute a separate security agreement in form and substance acceptable to the parties to
effectuate the security interest herein provided for. Licensor covenants that Licensee shall have a first priority security interest in the Asia Rights and other collateral described in this
paragraph. Licensor shall provide all reasonably necessary assistance and shall execute and deliver such documents and instruments as shall be reasonably necessary to Licensee to register (at
Licensee's sole expense) Licensee's sole and
exclusive rights in the Asia Rights and perfect the Asia Rights Security Interest in applicable jurisdictions and in the Territories. 

    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 other than the UCC-1 financing
statement described in Section 20.c.1 for the purposes of the Closing. 

    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 (this sum being the net amount after applicable tax withholdings in
Japan and subject to refunding to Licensee of the amount upon which Licensor successfully receives a tax credit), 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 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.  There shall have been filed in the state of Washington a UCC-1 Financing Statement which shall include
the Asia Rights as the collateral described therein and Licensee shall have received evidence that Licensor shall have executed and placed in first class mail to the United States Patent and Trademark
office a notice in form suitable for recording with such office and satisfactory to licensee counsel providing that Licensor has granted to Licensee a security interest with respect to the Asia
Rights.. 

    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. 

9

 

    4.  No action or proceeding shall have been initiated to restrain or challenge this License Agreement or any matter
contemplated hereby. 

    5.  Licensor shall have delivered to Licensee a fax copy of the BofA Release showing filing with the state of
Washington. 

    21.  Enforcement.  

    a.  Judicial Enforcement, Injunction, and Specific Performance.  Notwithstanding Section 21 b.,
Licensor 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, 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 which
gave rise to such judgment, in any state, country, province, commonwealth or territory having jurisdiction over their respective persons or properties. Licensor shall be entitled, without bond, to the
entry of temporary and permanent injunctions and orders of specific performance enforcing the provisions of this Agreement 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 Licensor secures any such injunction or order
of specific performance, Licensee agrees to pay to Licensor 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 by Licensor 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 Licensor elects to enforce this Agreement by judicial process,
injunction, or specific performance as hereinabove provided, all disputes and claims relating to any provision hereof, any specification, standard, or operating procedure, or any other obligation of
Licensee prescribed by Licensor, or any obligation of Licensor, or the alleged breach thereof (including without limitation any claim that this Agreement, any provision thereof, any specification,
standard, or operating procedure, or any other obligation of Licensee or Licensor, is illegal or otherwise unenforceable or voidable under any law, ordinance, or ruling) shall be settled by
arbitration at 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.  *  

	*
	Confidential
material has been intentionally omitted at this point pursuant to a request for confidential treatment, and such material has been filed separately with the Securities
and Exchange Commission. 

10

  

    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. 

    23.  Goodwill, Trademark and Business Name Protection, Third Party Litigation, Cessation of Use.  

    a.  To the extent that the ownership of any rights in the Trademarks and Business Names becomes established in Licensee,
whether by operation of law or otherwise, Licensee agrees to execute such assignments and other documents as Licensor may reasonably request to transfer such rights to Licensor, provided that no such
assignments or other documents in any way affect or limit Licensee's exclusive and perpetual license to use the rights conferred under this Agreement. In addition, this Section 23 a. shall not
apply to a transfer of rights in the Business Names and Trademarks pursuant to a foreclosure of the security interest granted pursuant to Section 19 a. below. 

    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 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. 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 making 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 

11

 

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: Mr. Jamie S. Colbourne

Facsimile No. (206) 233-2077
	

with a copy to:	
 	

Carney Badley Smith & Spellman, P.S.

2200 Bank of America Tower

701 Fifth Avenue

Seattle, Washington 98104

Attn: Patrick R. Lamb

Facsimile No. (206) 467-8215
	

To:	
 	

UCC Ueshima Coffee Company Ltd.

7-7, Minatojima Nakamachi 7-Chome

Kobe, Japan 650-8577

Attn: Mr. Gota Ueshima

Facsimile No. 011-078-304-8879
	

with a copy to:	
 	

Sakura Kyodo Law Offices

Shuwa Kioicho TBR Suite 814

5-7 Kohjimachi

Chiyoda-Ku Tokyo, Japan 102-0083

Facsimile No. 011-03 3263-7785

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, 

12

 

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. 

    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.  Licensor and Licensee have agreed to discuss and execute a memorandum or agreement
relating to certain other matters related to the supply and roasting of coffee. 

    The
remainder of this page has been left blank intentionally. 

13

 

    Executed as of the date set forth above. 

	

 	
 	
LICENSOR:
	
 	
 	
TULLY'S COFFEE CORPORATION
	

 	

 	

By:	

 	

/s/ JAMIE S. COLBOURNE   
 Jamie S. Colbourne,

its President and CEO
	

 	
 	
LICENSOR:
	
 	
 	
UCC UESHIMA COFFEE COMPANY LTD.
	

 	

 	

By:	

 	

/s/ TATSUSHI UESHIMA   
 Tatsushi Ueshima,

its Chairman/President/CEO

14

 
 
 

SCHEDULE A
  TO
  TULLY'S COFFEE LICENSE AGREEMENT    
  

LIST OF BUSINESS NAMES 

Tully's

Tully's Coffee

Tully's Roaster of Fine Coffee

Swirkle

Tullini

Tullini Sandwiches 

And the equivalents of any of the above in any foreign languages

And any derivatives of foregoing. 

15

  

  
 

    SCHEDULE B
  TO
  TULLY'S COFFEE LICENSE AGREEMENT    
  

LIST OF TRADEMARKS FOR SERVICES AND GOODS 

See
attached Seed Intellectual Property Group Status Report re All Pending/Registered Applications Dated February 14, 2001. 

16

 

	Trademark Status Report

Tully's Coffee Corporation
 Sorted by Country, then by Mark	 	February 14, 2001
	

	Docket No:	 	910114.217CA	 	Appln No:	 	859106	 	Reg No:	 	 	 	Status:	 	Pending
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

10/17/97	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Canada	
 	

Class:	
 	

N/A	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Coffee, ground coffee, whole bean coffee, coffee beverages and coffee-based beverages, sandwiches, pastries. Coffee bar services, restaurant services (cafe services), coffee distribution services, catering services,
retail store services in the field of coffee, coffee making equipment and supplies.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.218CA	
 	

Appln No:	
 	

859105	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Pending
	

Mark:	
 	

TULLY'S AND DESIGN	
 	

Filing Date:	
 	

10/17/97	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Canada	
 	

Class:	
 	

N/A	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Ground coffee, whole bean coffee, coffee beverages and coffee-based beverages, sandwiches, pastries. Coffee bar services, restaurant services (cafe services), coffee distribution services, catering services, retail
store services in the field of coffee, coffee making equipment and supplies.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.215CN	
 	

Appln No:	
 	

9700114735	
 	

Reg No:	
 	

1253051	
 	

Status:	
 	

Registered
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

10/30/97	
 	

Reg Date:	
 	

3/7/99	
 	

 	
 	

 
	

Country:	
 	

China	
 	

Class:	
 	

30	
 	

Renewal:	
 	

3/7/09	
 	

 	
 	

 
	

Goods/Services:	
 	
Ground coffee, whole bean coffee, cocoa-based beverages, coffee-based beverages, sandwiches, pastries, chocolate-based beverages, tea.	
 	

 	
 	

 
	

	Prepared by Seed Intellectual Property Law Group	N/A = Not Applicable
	 	U = Unknown
 

17

 

	Docket No:	 	910114.216CN	 	Appln No:	 	9700114734	 	Reg No:	 	1235907	 	Status:	 	Registered
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

10/30/97	
 	

Reg Date:	
 	

12/28/98	
 	

 	
 	

 
	

Country:	
 	

China	
 	

Class:	
 	

42	
 	

Renewal:	
 	

12/28/08	
 	

 	
 	

 
	

Goods/Services:	
 	
Coffee bar services, restaurant services.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.226CT	
 	

Appln No:	
 	

1261387	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Pending
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

7/30/99	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

European Community	
 	

Class:	
 	

30,35,39,42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Ground coffee, whole bean coffee, coffee beverages, coffee-based beverages, flavorings (other than essential oils), tea leaves, tea powder, tea beverages, tea-based beverages, cocoa, cocoa-based beverages, sandwiches,
pastries, confectionery, in Class 30.	
 	

 	
 	

 
	

 	
 	
The bringing together, for the benefit of others goods, in the field of coffee, coffee making equipment and supplies, enabling customers to conveniently view and purchase those goods; advertising and promotions services
in the field of coffee, coffee making equipment and supplies and information relating thereto including such services provided on-line from a computer database or the Internet; retail store services in the field of coffee, coffee making equipment and
supplies, retail store services, available through computer communications and interactive television, featuring coffee making equipment and supplies, in Class 35.	
 	

 	
 	

 
	

 	
 	
Coffee distribution services, in Class 39.	
 	

 	
 	

 
	

 	
 	
Restaurant services, coffee distribution services, catering services, in Class 42.	
 	

 	
 	

 
	

18

 

	Docket No:	 	910114.227CT	 	Appln No:	 	1275874	 	Reg No:	 	 	 	Status:	 	Pending
	

Mark:	
 	

TULLY'S ROASTER OF FINE COFFEE AND DESIGN	
 	

Filing Date:	
 	

8/12/99	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

European Community	
 	

Class:	
 	

30,35,42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Ground coffee, whole bean coffee, coffee beverages, coffee-based beverages, flavorings (other than essential oils), tea leaves, tea powder, tea beverages, tea-based beverages, cocoa, cocoa-based beverages, sandwiches,
pastries, confectionery, in Class 30.	
 	

 	
 	

 
	

 	
 	
The bringing together, for the benefit of others goods, in the field of coffee, coffee making equipment and supplies, enabling customers to conveniently view and purchase those goods; advertising and promotions services
in the field of coffee, coffee making equipment and supplies and information relating thereto including such services provided on-line from a computer database or the Internet; retail store services in the field of coffee, coffee making equipment and
supplies, retail store services, available through computer communications and interactive television, featuring coffee making equipment and supplies.	
 	

 	
 	

 
	

 	
 	
Restaurant services, café services, coffee bar services, coffee distribution services, catering services, in Class 42.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.213JP	
 	

Appln No:	
 	

9-166518	
 	

Reg No:	
 	

4357668	
 	

Status:	
 	

Registered
	

Mark:	
 	

TULLY'S AND TULLY'S (in Katakana)	
 	

Filing Date:	
 	

10/9/97	
 	

Reg Date:	
 	

1/28/2000	
 	

 	
 	

 
	

Country:	
 	

Japan	
 	

Class:	
 	

30,42	
 	

Renewal:	
 	

1/28/10	
 	

 	
 	

 
	

Goods/Services:	
 	
Roasted ground coffee, artificial coffee and other coffee and cocoa, in Class 30.	
 	

 	
 	

 
	

 	
 	
Catering services, serving coffee and other restaurant services in Class 42.	
 	

 	
 	

 
	

19

 

	Docket No:	 	910114.214JP	 	Appln No:	 	 	 	Reg No:	 	 	 	Status:	 	Closed
	

Mark:	
 	

TULLY'S AND TULLY'S (in Katakana)	
 	

Filing Date:	
 	

10/9/97	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Japan	
 	

Class:	
 	

42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Catering services, coffee distribution services, serving coffee and other restaurant services.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.219JP	
 	

Appln No:	
 	

11-050237	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Pending
	

Mark:	
 	

TULLY'S AND TULLY'S (in Katakana)	
 	

Filing Date:	
 	

10/9/97	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Japan	
 	

Class:	
 	

30	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Coffee beans, sandwiches, pastries and other confectionery and bread.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.229SG	
 	

Appln No:	
 	

T00/04891A	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Pending
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

3/17/2000	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Singapore	
 	

Class:	
 	

35	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Retail store services in the field of coffee, coffee making equipment and supplies.	
 	

 	
 	

 
	

20

 

	Docket No:	 	910114.220SG	 	Appln No:	 	T99/07375A	 	Reg No:	 	T99/07375A	 	Status:	 	Registered
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

7/16/99	
 	

Reg Date:	
 	

7/16/09	
 	

 	
 	

 
	

Country:	
 	

Singapore	
 	

Class:	
 	

30	
 	

Renewal:	
 	

7/16/99	
 	

 	
 	

 
	

Goods/Services:	
 	
Ground coffee, coffee beans, coffee beverages and coffee-based beverages; flavorings other than essential oils); tea leaves, tea powder and tea; cocoa and cocoa-based beverages; substitutes for all the aforesaid goods;
sugar and sugar substitutes; pastries, confectionery and sandwiches.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.221SG	
 	

Appln No:	
 	

T99/07376Z	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Pending
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

7/16/99	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Singapore	
 	

Class:	
 	

42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Restaurant, cafe, coffee bar and catering services; consultancy, research and development (for others).	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.224SG	
 	

Appln No:	
 	

T99/08215G	
 	

Reg No:	
 	

T99/0821G	
 	

Status:	
 	

Registered
	

Mark:	
 	

TULLY'S AND DESIGN	
 	

Filing Date:	
 	

8/4/99	
 	

Reg Date:	
 	

8/4/99	
 	

 	
 	

 
	

Country:	
 	

Singapore	
 	

Class:	
 	

30	
 	

Renewal:	
 	

8/4/09	
 	

 	
 	

 
	

Goods/Services:	
 	
Ground coffee, coffee beans, coffee beverages and coffee-based beverages; flavorings (other than essential oils); tea leaves, tea powder and tea; cocoa and cocoa-based beverages; substitutes for all the aforesaid goods;
sugar and sugar substitutes; pastries, confectionery and sandwiches.	
 	

 	
 	

 
	

21

  

	Docket No:	 	910114.225SG	 	Appln No:	 	T99/08216E	 	Reg No:	 	 	 	Status:	 	Pending
	

Mark:	
 	

TULLY'S AND DESIGN	
 	

Filing Date:	
 	

8/4/99	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Singapore	
 	

Class:	
 	

42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Restaurant, café, coffee bar and catering services, consultancy, research and development (for others).	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.228SG	
 	

Appln No:	
 	

T00/02834A	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Pending
	

Mark:	
 	

TULLY'S AND DESIGN	
 	

Filing Date:	
 	

2/24/2000	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Singapore	
 	

Class:	
 	

35	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Retail store services in the field of coffee, coffee making equipment and supplies.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.223TW	
 	

Appln No:	
 	

88035008	
 	

Reg No:	
 	

128542	
 	

Status:	
 	

Registered
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

7/19/99	
 	

Reg Date:	
 	

9/1/2000	
 	

 	
 	

 
	

Country:	
 	

Taiwan	
 	

Class:	
 	

42	
 	

Renewal:	
 	

8/31/10	
 	

 	
 	

 
	

Goods/Services:	
 	
Restaurant services; coffee bar services; catering services.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.222TW	
 	

Appln No:	
 	

88034428	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Published
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

7/15/99	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

Taiwan	
 	

Class:	
 	

30	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Ground coffee, whole bean coffee, coffee beverages and coffee-based beverages, sandwiches, pastries.	
 	

 	
 	

 
	

22

 

	Docket No:	 	910114.208	 	Appln No:	 	75/211,578	 	Reg No:	 	2,354,315	 	Status:	 	Registered
	

Mark:	
 	

FANCIFUL COFFEE CUP DESIGN	
 	

Filing Date:	
 	

12/11/96	
 	

Reg Date:	
 	

6/6/2000	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

35, 42	
 	

Renewal:	
 	

6/6/10	
 	

 	
 	

 
	

Goods/Services:	
 	
Retail coffee store services and cafe services, in Class 35.

Cafe services, in Class 42.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.211	
 	

Appln No:	
 	

 	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Unfiled
	

Mark:	
 	

FANCIFUL COFFEE CUP DESIGN	
 	

Filing Date:	
 	

 	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

30	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
 	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.206	
 	

Appln No:	
 	

75/096,562	
 	

Reg No:	
 	

2,179,028	
 	

Status:	
 	

Registered
	

Mark:	
 	

SWIRKLE	
 	

Filing Date:	
 	

5/2/96	
 	

Reg Date:	
 	

8/4/98	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

32	
 	

Renewal:	
 	

8/4/08	
 	

 	
 	

 
	

Goods/Services:	
 	
Non-alcoholic coffee-flavored drinks.	
 	

 	
 	

 
	

23

 

	Docket No:	 	910114.205	 	Appln No:	 	75/001,005	 	Reg No:	 	2,089,778	 	Status:	 	Registered
	

Mark:	
 	

TULLINI	
 	

Filing Date:	
 	

10/2/95	
 	

Reg Date:	
 	

8/19/97	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

30	
 	

Renewal:	
 	

8/19/07	
 	

 	
 	

 
	

Goods/Services:	
 	
Sandwiches.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.201	
 	

Appln No:	
 	

74/731,366	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Opposed
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

9/20/95	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Retail coffee store services; cafe services.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.202	
 	

Appln No:	
 	

74/732,538	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Opposed
	

Mark:	
 	

TULLY'S	
 	

Filing Date:	
 	

9/20/95	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

30	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Coffee.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.209	
 	

Appln No:	
 	

75/211,522	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Suspended
	

Mark:	
 	

TULLY'S AND DESIGN	
 	

Filing Date:	
 	

12/11/96	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Retail coffee store services and cafe services.	
 	

 	
 	

 
	

24

 

	Docket No:	 	910114.212	 	Appln No:	 	 	 	Reg No:	 	 	 	Status:	 	Unfiled
	

Mark:	
 	

TULLY'S AND DESIGN	
 	

Filing Date:	
 	

 	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

30	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
 	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.203	
 	

Appln No:	
 	

74/732,537	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Abandoned
	

Mark:	
 	

TULLY'S COFFEE AND DESIGN	
 	

Filing Date:	
 	

9/20/95	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Retail coffee shop services.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.204	
 	

Appln No:	
 	

74/732,536	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Abandoned
	

Mark:	
 	

TULLY'S COFFEE AND DESIGN	
 	

Filing Date:	
 	

9/20/95	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States of America	
 	

Class:	
 	

30	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Coffee.	
 	

 	
 	

 
	

25

 

	

Docket No:	
 	

910114.207	
 	

Appln No:	
 	

75/211,363	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Suspended
	

Mark:	
 	

TULLY'S ROASTERS OF FINE COFFEE AND DESIGN	
 	

Filing Date:	
 	

12/11/96	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States

of America	
 	

Class:	
 	

42	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Retail coffee store services and cafe services.	
 	

 	
 	

 
	

	

Docket No:	
 	

910114.210	
 	

Appln No:	
 	

75/097,761	
 	

Reg No:	
 	

 	
 	

Status:	
 	

Suspended
	

Mark:	
 	

TULLY'S ROASTERS OF FINE COFFEE AND DESIGN	
 	

Filing Date:	
 	

5/2/96	
 	

Reg Date:	
 	

 	
 	

 	
 	

 
	

Country:	
 	

United States

of America	
 	

Class:	
 	

30	
 	

Renewal:	
 	

 	
 	

 	
 	

 
	

Goods/Services:	
 	
Coffee.	
 	

 	
 	

 
	

26

 
 
 

SCHEDULE C
  TO
  TULLY'S COFFEE LICENSE AGREEMENT    
  

    DESCRIPTION OF TERRITORIES COVERED BY THE LICENSE AGREEMENT 

American
Samoa

Australia

Cook Islands

Guam

New Zealand

Palau

Solomon Islands

Saipan

China

Hong Kong

Indonesia

Laos

Macao

Malaysia

Mongolia

Nepal

North Korea

South Korea

Phillipines

Russia

Singapore

Sri Lanka

Taiwan

Thailand

Vietnam 

27

QuickLinks

TULLY'S COFFEE EXCLUSIVE LICENSE AGREEMENT

RECITALS

SCHEDULE A TO TULLY'S COFFEE LICENSE AGREEMENT

SCHEDULE B TO TULLY'S COFFEE LICENSE AGREEMENT

SCHEDULE C TO TULLY'S COFFEE LICENSE AGREEMENT<PAGE>

                                                                     EXHIBIT 4.2

================================================================================

                          REGISTRATION RIGHTS AGREEMENT

                          Dated as of February 2, 2001

                                     Between

                                 SIX FLAGS, INC.

                                       and

                              LEHMAN BROTHERS INC.
               MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
                        MORGAN STANLEY & CO. INCORPORATED
                            SALOMON SMITH BARNEY INC.
                          ALLEN & COMPANY INCORPORATED
                            BNY CAPITAL MARKETS, INC.
                      CREDIT LYONNAIS SECURITIES (USA) INC.
                            SCOTIA CAPITAL (USA) INC.

                              as Initial Purchasers

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                     PAGE

1.       Definitions...................................................1

2.       Securities Subject to This Agreement..........................3

3.       Registered Exchange Offer.....................................3

4.       Shelf Registration............................................5

5.       Liquidated Damages............................................6

6.       Registration Procedures.......................................7

7.       Registration Expenses........................................14

8.       Indemnification and Contribution.............................15

9.       Rule 144A....................................................18

10.      Participation in Underwritten Registrations..................18

11.      Selection of Underwriters....................................18

12.      Miscellaneous................................................18

<PAGE>

                  This Registration Rights Agreement (this "Agreement") is made
and entered into as of February 2, 2001, by Six Flags, Inc., a Delaware
corporation (the "Company"), and Lehman Brothers Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated, Salomon Smith
Barney Inc., Allen & Company Incorporated, BNY Capital Markets, Inc., Credit
Lyonnais Securities (USA) Inc. and Scotia Capital (USA) Inc. (collectively, the
"Initial Purchasers").

                  This Agreement is entered into in connection with the Purchase
Agreement, dated as of January 30, 2001, between the Company and the Initial
Purchasers (the "Purchase Agreement"), which provides for the sale by the
Company to the Initial Purchasers of $375,000,000 principal amount of the
Company's 9-1/2% Senior Notes due 2009 (the "Notes"). Capitalized terms used but
not specifically defined herein have the respective meanings ascribed thereto in
the Purchase Agreement. As an inducement to the Initial Purchasers to enter into
the Purchase Agreement and in satisfaction of a condition to its obligations
thereunder, the Company agrees with the Initial Purchasers, for the benefit of
the holders of the Notes (including the Initial Purchasers) (the "Holders"), as
follows:

         1. Definitions. As used in this Agreement, the following capitalized
terms shall have the following meanings:

                  Broker-Dealer: Any broker or dealer registered under the
         Exchange Act.

                  Closing Date:  The date hereof.

                  Commission:  The Securities and Exchange Commission.

                  Consummate: A Registered Exchange Offer shall be deemed
         "Consummated" for purposes of this Agreement upon the occurrence of (i)
         the filing and effectiveness under the Securities Act of the Exchange
         Offer Registration Statement relating to the Exchange Notes to be
         issued in the Exchange Offer, (ii) the maintenance of such Registration
         Statement continuously effective and the keeping of the Exchange Offer
         open for a period not less than the minimum period required pursuant to
         Section 3(b) hereof, and (iii) the delivery by the Company of the
         Exchange Notes in the same aggregate principal amount as the aggregate
         principal amount of Transfer Restricted Securities that were validly
         tendered by Holders thereof pursuant to the Exchange Offer.

                  Damages Payment Date: With respect to the Notes, each Interest
         Payment Date until the earlier of (i) the date on which Liquidated
         Damages no longer are payable or (ii) maturity of the Notes.

                  Effectiveness Target Date: As defined in Section 5.

                  Exchange Act: The Securities Exchange Act of 1934, as amended.

                  Exchange Notes: The Notes to be issued pursuant to the
         Indenture in the Exchange Offer.

<PAGE>

                  Exchange Offer: The registration by the Company under the
         Securities Act of the Exchange Notes pursuant to a Registration
         Statement pursuant to which the Company offers the Holders of all
         outstanding Transfer Restricted Securities the opportunity to exchange
         all such outstanding Transfer Restricted Securities held by such
         Holders for Exchange Notes in an aggregate amount equal to the
         aggregate amount of the Transfer Restricted Securities tendered in such
         exchange offer by such Holders.

                  Exchange Offer Registration Statement: The Registration
         Statement relating to the Exchange Offer, including the Prospectus
         which forms a part thereof.

                  Exempt Resales: The transactions in which the Initial
         Purchasers propose to sell the Notes to certain "qualified
         institutional buyers," as such term is defined in Rule 144A under the
         Securities Act, and to certain non-U.S. persons.

                  Holders: As defined in Section 2(b) hereof.

                  Indenture: The Indenture, dated as of February 2, 2001,
         between the Company and The Bank of New York, as trustee (the
         "Trustee"), pursuant to which the Notes are to be issued, as such
         Indenture is amended or supplemented from time to time in accordance
         with the terms thereof.

                  Initial Purchasers:  As defined in the preamble hereto.

                  NASD:  National Association of Securities Dealers, Inc.

                  Person: An individual, partnership, corporation, limited
         liability company, trust or unincorporated organization, or a
         government or agency or political subdivision thereof.

                  Prospectus: The prospectus included in a Registration
         Statement, as amended or supplemented by any prospectus supplement and
         by all other amendments thereto, including post-effective amendments,
         and all material incorporated by reference into such Prospectus.

                  Registration Default:  As defined in Section 5 hereof.

                  Registration Statement: Any registration statement of the
         Company relating to (a) an offering of Exchange Notes pursuant to an
         Exchange Offer or (b) the registration for resale of Transfer
         Restricted Securities pursuant to the Shelf Registration Statement,
         which is filed pursuant to the provisions of this Agreement, in either
         case, including the Prospectus included therein, all amendments and
         supplements thereto (including post-effective amendments) and all
         exhibits and material incorporated by reference therein.

                  Securities Act:  The Securities Act of 1933, as amended.

                  Shelf Filing Deadline:  As defined in Section 4 hereof.

                                      -2-
<PAGE>

                  Shelf Registration Statement: As defined in Section 4 hereof.

                  TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section
         77aaa-77bbbb), as amended.

                  Transfer Restricted Securities: Each Note, until the earliest
         to occur of (a) the date on which such Note has been exchanged by a
         person other than a Broker-Dealer for Exchange Notes in the Exchange
         Offer, (b) following the exchange by a Broker-Dealer in the Exchange
         Offer of such Note for one or more Exchange Notes, the date on which
         such Exchange Notes are sold to a purchaser who receives from such
         Broker-Dealer on or prior to the date of such sale a copy of the
         prospectus contained in the Exchange Offer Registration Statement, (c)
         the date on which such Notes have been effectively registered under the
         Securities Act and disposed of in accordance with the Shelf
         Registration Statement or (d) the date on which such Notes are eligible
         to be distributed to the public pursuant to Rule 144 under the
         Securities Act;

                  Underwritten Registration or Underwritten Offering: A
         registration in which securities of the Company are sold to an
         underwriter for reoffering to the public.

         2. Securities Subject to This Agreement. Transfer Restricted
Securities. The securities entitled to the benefits of this Agreement are the
Transfer Restricted Securities.

                  (a) Holders of Transfer Restricted Securities. A Person is
deemed to be a holder of Transfer Restricted Securities (each, a "Holder")
whenever such Person owns Transfer Restricted Securities.

         3. Registered Exchange Offer. (a) Unless the Exchange Offer shall not
be permissible under applicable law or Commission policy (after the procedures
set forth in Section 6(a) below have been complied with) or one of the events
set forth in Section 4(a)(ii) has occurred the Company shall (i) cause to be
filed with the Commission prior to 90 days after the Closing Date a Registration
Statement under the Securities Act relating to the Exchange Notes and the
Exchange Offer, (ii) use all commercially reasonable efforts to cause such
Registration Statement to become effective no later than 180 days after the
Closing Date, (iii) in connection with the foregoing, file (A) all pre-effective
amendments to such Registration Statement as may be necessary in order to cause
such Registration Statement to become effective, (B) if applicable, a
post-effective amendment to such Registration Statement pursuant to Rule 430A
under the Securities Act and (C) cause all necessary filings in connection with
the registration and qualification of the Exchange Notes to be made under the
Blue Sky laws of such jurisdictions as are necessary to permit Consummation of
the Exchange Offer, and (iv) unless the Exchange Offer would not be permitted by
applicable law or Commission policy, the Company will commence the Exchange
Offer and use all commercially reasonable efforts to issue on or prior to 30
business days, or longer if required by the federal securities laws, after the
date on which such Registration Statement was declared effective by the
Commission, Exchange Notes in exchange for all Transfer Restricted Securities
tendered prior thereto in the Exchange Offer. The Exchange Offer shall be on the
appropriate form permitting registration of the Exchange Notes to be offered in
exchange for the Transfer Restricted Securities and to permit resales of
Exchange Notes held by Broker-Dealers as contemplated by Section 3(c) below. The

                                      -3-
<PAGE>

90, 180 and 30 business day periods referred to in (i), (ii) and (iii) of this
Section 3(a) shall not include any period during which the Company is pursuing a
Commission ruling pursuant to Section 6(a)(i) below.

                  (b) The Company shall use all commercially reasonable efforts
to cause the Exchange Offer Registration Statement to be effective continuously
and shall keep the Exchange Offer open for a period of not less than the minimum
period required under applicable federal and state securities laws to Consummate
the Exchange Offer; provided, however, that in no event shall such period be
less than 20 business days. The Company shall cause the Exchange Offer to comply
in all material respects with all applicable federal and state securities laws.
The Company shall use all commercially reasonable efforts to cause the Exchange
Offer to be Consummated on the earliest practicable date after the Exchange
Offer Registration Statement has become effective, but in no event later than 30
business days thereafter.

                  (c) The Company shall indicate in a "Plan of Distribution"
section contained in the Prospectus contained in the Exchange Offer Registration
Statement that any Broker-Dealer who holds Notes that are Transfer Restricted
Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Company), may exchange such
Notes pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed
to be an "underwriter" within the meaning of the Securities Act and must,
therefore, deliver a prospectus meeting the requirements of the Securities Act
in connection with any resales of the Exchange Notes received by such
Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may
be satisfied by the delivery by such Broker-Dealer of the Prospectus contained
in the Exchange Offer Registration Statement. Such "Plan of Distribution"
section shall also contain all other information with respect to such resales by
Broker-Dealers that the Commission may require in order to permit such resales
pursuant thereto, but such "Plan of Distribution" shall not name any such
Broker-Dealer or disclose the amount of Exchange Notes held by any such
Broker-Dealer except to the extent required by the Commission as a result of a
change in policy announced after the date of this Agreement or otherwise.

                  The Company shall use all commercially reasonable efforts to
keep the Exchange Offer Registration Statement continuously effective,
supplemented and amended as required by the provisions of Section 6(c) below to
the extent necessary to ensure that it is available for resales of Exchange
Notes (that are Transfer Restricted Securities) acquired by Broker-Dealers for
their own accounts as a result of market-making activities or other trading
activities, and to ensure that it conforms with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period of 180 days from the
date on which the Exchange Offer Registration Statement is declared effective.

                  The Company shall provide sufficient copies of the latest
version of such Prospectus to Broker-Dealers promptly upon request at any time
during such 180-day period in order to facilitate such resales.

                                      -4-
<PAGE>

         4. Shelf Registration.

                  (a) Shelf Registration. If (i) the Company is not required to
file an Exchange Offer Registration Statement or to consummate the Exchange
Offer because the Exchange Offer is not permitted by applicable law or
Commission policy (after the procedures set forth in Section 6(a) below have
been complied with) or (ii) if any Holder of Transfer Restricted Securities that
is a "qualified institutional buyer" (as defined in Rule 144A under the
Securities Act) shall notify the Company prior to the 20th day following the
Consummation of the Exchange Offer (A) that such Holder is prohibited by
applicable law or Commission policy from participating in the Exchange Offer, or
(B) that such Holder may not resell the Exchange Notes acquired by it in the
Exchange Offer to the public without delivering a prospectus and that the
Prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder, or (C) that such
Holder is a Broker-Dealer and holds Notes acquired directly from the Company or
one of its affiliates, then the Company shall in lieu of, or in the event of
(ii) above, in addition to effecting the registration of the Exchange Notes
pursuant to the Exchange Offer Registration Statement, use all commercially
reasonable efforts to:

                           (x) cause to be filed a shelf registration statement
         pursuant to Rule 415 under the Securities Act, which may be an
         amendment to the Exchange Offer Registration Statement (in either
         event, the "Shelf Registration Statement"), on or prior to the earlier
         to occur of (1) the 60th day after the date on which the Company
         determines that it is not required to file the Exchange Offer
         Registration Statement or (2) the 60th day after the date on which the
         Company receives notice from a Holder of Transfer Restricted Securities
         as contemplated by clause (ii) above (such earlier date being the
         "Shelf Filing Deadline"), which Shelf Registration Statement shall
         provide for resales of all Transfer Restricted Securities the Holders
         of which shall have provided the information required pursuant to
         Section 4(b) hereof; and

                           (y) cause such Shelf Registration Statement to be
         declared effective by the Commission on or before the 120th day after
         the Shelf Filing Deadline.

         The Company shall use all commercially reasonable efforts to keep such
Shelf Registration Statement continuously effective, supplemented and amended as
required by the provisions of Sections 6(b) and (c) hereof to the extent
necessary to ensure that it is available for resales of Notes by the Holders of
Transfer Restricted Securities entitled to the benefit of this Section 4(a), and
to ensure that it conforms with the requirements of this Agreement, the
Securities Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period ending on the second anniversary of
the Closing Date; provided, however, that the Company shall in no event be
obligated to keep such Shelf Registration Statement effective for a period of
more than 180 days from the date the Shelf Registration Statement is declared
effective by the Commission if the Shelf Registration Statement is required to
be filed solely to permit resales by a Broker-Dealer that holds Notes acquired
directly from the Company or one of its affiliates or such shorter period that
will terminate when all the Notes or Exchange Notes, as applicable, cease to be
Transfer Restricted Securities.

                                      -5-
<PAGE>

                  (b) Provision by Holders of Certain Information in Connection
with the Shelf Registration Statement. No Holder of Transfer Restricted
Securities may include any of its Transfer Restricted Securities in any Shelf
Registration Statement pursuant to this Agreement unless and until such Holder
furnishes to the Company in writing, within 20 business days after receipt of a
request therefor, such information as the Company may reasonably request for use
in connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. No Holder of Transfer Restricted Securities shall
be entitled to Liquidated Damages pursuant to Section 5 hereof unless and until
such Holder shall have used its best efforts to provide all such reasonably
requested information. Each Holder as to which any Shelf Registration Statement
is being effected agrees to furnish promptly to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Holder not materially misleading.

         5. Liquidated Damages

                  (a) If (a) any of the Registration Statements required by this
Agreement is not filed with the Commission on or prior to the date specified for
such filing in this Agreement, (b) any of such Registration Statements has not
been declared effective by the Commission on or prior to the date specified for
such effectiveness in this Agreement (the "Effectiveness Target Date"), (c) the
Exchange Offer has not been Consummated within 30 business days after the
Effectiveness Target Date with respect to the Exchange Offer Registration
Statement or (d) any Registration Statement required by this Agreement is filed
and declared effective but shall thereafter cease to be effective or fail to be
usable for its intended purpose without being succeeded within 10 business days
by a post-effective amendment to such Registration Statement that cures such
failure and that is itself immediately declared effective (each such event
referred to in clauses (a) through (d), a "Registration Default"), the Company
will be obligated to pay additional cash interest ("Liquidated Damages") to each
Holder of the Notes commencing upon the occurrence of such Registration Default
in an amount equal to $.05 per week per $1,000 principal amount of Notes held by
such Holder. The amount of Liquidated Damages will increase by an additional
$.05 per week per $1,000 principal amount of Notes with respect to each
subsequent 90-day period until all Registration Defaults have been cured, up to
a maximum amount of Liquidated Damages of $.50 per week per $1,000 principal
amount of Notes. All accrued Liquidated Damages shall be paid to Holders by the
Company in the same manner as interest is made pursuant to the Indenture. The
Company will not be required to pay Liquidated Damages for more than one
Registration Default at any given time. Following the cure of all Registration
Defaults relating to any particular Transfer Restricted Securities, the accrual
of Liquidated Damages with respect to such Transfer Restricted Securities will
cease.

                  All obligations of the Company set forth in the preceding
paragraph that have accrued and are outstanding with respect to any Transfer
Restricted Security at the time such security ceases to be a Transfer Restricted
Security shall survive until such time as all such obligations with respect to
such Transfer Restricted Security shall have been satisfied in full.

                  (b) The Company shall notify the Trustee within one business
day after each and every date on which an event occurs in respect of which
Liquidated Damages are required to be paid (an "Event Date"). Liquidated Damages
shall be paid by depositing Liquidated Damages with the Trustee, in trust, for

                                      -6-
<PAGE>

the benefit of the Holders of the Notes, on or before the applicable Interest
Payment Date (whether or not any payment other than Liquidated Damages is
payable on such Notes), in immediately available funds in sums sufficient to pay
the Liquidated Damages then due to such Holders. Each obligation to pay
Liquidated Damages shall be deemed to accrue from the applicable date of the
occurrence of the Registration Default.

         6. Registration Procedures.

                  (a) Exchange Offer Registration Statement. In connection with
the Exchange Offer, the Company shall comply with all of the provisions of
Section 6(c) below, shall use all commercially reasonable efforts to effect such
exchange to permit the sale of Transfer Restricted Securities being sold in
accordance with the intended method or methods of distribution thereof, and
shall comply with all of the following provisions:

                           (i) If in the reasonable opinion of counsel to the
         Company there is a question as to whether the Exchange Offer is
         permitted by applicable law, the Company hereby agrees to seek a
         no-action letter or other favorable decision from the Commission
         allowing the Company to Consummate an Exchange Offer for such Notes.
         The Company hereby agrees to pursue the issuance of such a decision to
         the Commission staff level but shall not be required to take
         commercially unreasonable action to effect a change of Commission
         policy. The Company hereby agrees, however, to (A) participate in
         telephonic conferences with the Commission, (B) deliver to the
         Commission staff an analysis prepared by counsel to the Company setting
         forth the legal bases, if any, upon which such counsel has concluded
         that such an Exchange Offer should be permitted and (C) diligently
         pursue a resolution (which need not be favorable) by the Commission
         staff of such submission.

                           (ii) As a condition to its participation in the
         Exchange Offer pursuant to the terms of this Agreement, each Holder of
         Transfer Restricted Securities shall furnish, upon the request of the
         Company, prior to the Consummation thereof, a written representation to
         the Company (which may be contained in the letter of transmittal
         contemplated by the Exchange Offer Registration Statement) to the
         effect that (A) it is not an affiliate of the Company, (B) it is not
         engaged in, and does not intend to engage in, and has no arrangement or
         understanding with any person to participate in, a distribution of the
         Exchange Notes to be issued in the Exchange Offer and (C) it is
         acquiring the Exchange Notes in its ordinary course of business. In
         addition, all such Holders of Transfer Restricted Securities shall
         otherwise cooperate in the Company's preparations for the Exchange
         Offer. Each Holder hereby acknowledges and agrees that any
         Broker-Dealer and any such Holder using the Exchange Offer to
         participate in a distribution of the securities to be acquired in the
         Exchange Offer (1) could not under Commission policy as in effect on
         the date of this Agreement rely on the position of the Commission
         enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and
         Exxon Capital Holdings Corporation (available May 13, 1988), as
         interpreted in the Commission's letter to Shearman & Sterling dated
         July 2, 1993, and similar no-action letters (including Brown & Wood LLP
         (available February 7, 1997), and any no-action letter obtained
         pursuant to clause (i) above), and (2) must comply with the
         registration and prospectus delivery requirements of the Securities Act

                                      -7-
<PAGE>

         in connection with a secondary resale transaction and that such a
         secondary resale transaction should be covered by an effective
         registration statement containing the selling security holder
         information required by Item 507 or 508, as applicable, of Regulation
         S-K if the resales are of Exchange Notes obtained by such Holder in
         exchange for Notes acquired by such Holder directly from the Company.

                           (iii) Prior to the effectiveness of the Exchange
         Offer Registration Statement, the Company shall provide a supplemental
         letter to the Commission (A) stating that the Company is registering
         the Exchange Offer in reliance on the position of the Commission
         enunciated in Exxon Capital Holdings Corporation (available May 13,
         1988), Morgan Stanley and Co., Inc. (available June 5, 1991), Brown &
         Wood LLP (available February 7, 1997) and, if applicable, any no-action
         letter obtained pursuant to clause (i) above and (B) including a
         representation that the Company has not entered into any arrangement or
         understanding with any Person to distribute the Exchange Notes to be
         received in the Exchange Offer and that, to the best of the Company's
         information and belief, each Holder participating in the Exchange Offer
         is acquiring the Exchange Notes in its ordinary course of business and
         has no arrangement or understanding with any Person to participate in
         the distribution of the Exchange Notes received in the Exchange Offer.

                  (b) Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company shall comply with all the provisions of
Section 6(c) below and shall use all commercially reasonable efforts to effect
such registration to permit the sale of the Transfer Restricted Securities being
sold in accordance with the intended method or methods of distribution thereof,
and pursuant thereto the Company will as expeditiously as possible prepare and
file with the Commission a Registration Statement relating to the registration
on any appropriate form under the Securities Act, which form shall be available
for the sale of the Transfer Restricted Securities in accordance with the
intended method or methods of distribution thereof.

                  (c) General Provisions. In connection with any Registration
Statement and any Prospectus required by this Agreement to permit the sale or
resale of Transfer Restricted Securities (including, without limitation, any
Registration Statement and the related Prospectus required to permit resales of
Notes by Broker-Dealers), the Company shall:

                           (i) use all commercially reasonable efforts to keep
         such Registration Statement continuously effective and provide all
         requisite financial statements for the period specified in Section 3 or
         4 of this Agreement, as applicable; upon the occurrence of any event
         that would cause any such Registration Statement or the Prospectus
         contained therein (A) to contain a material misstatement or omit to
         state a material fact necessary to make the statements therein not
         misleading or (B) not to be effective and usable for resale of Transfer
         Restricted Securities during the period required by this Agreement, the
         Company shall file promptly an appropriate amendment to such
         Registration Statement, in the case of clause (A), correcting any such
         misstatement or omission, and, in the case of either clause (A) or (B),
         use all commercially reasonable efforts to cause such amendment to be

                                      -8-
<PAGE>

         declared effective and such Registration Statement and the related
         Prospectus to become usable for their intended purpose(s) as soon as
         practicable thereafter;

                           (ii) prepare and file with the Commission such
         amendments and post-effective amendments to the Registration Statement
         as may be necessary to keep the Registration Statement effective for
         the applicable period set forth in Section 3 or 4 hereof, as
         applicable, or such shorter period as will terminate when all Transfer
         Restricted Securities covered by such Registration Statement have been
         sold; cause the Prospectus to be supplemented by any required
         Prospectus supplement, and as so supplemented to be filed pursuant to
         Rule 424 under the Securities Act, and to comply fully with the
         applicable provisions of Rules 424 and 430A under the Securities Act in
         a timely manner; and comply with the provisions of the Securities Act
         with respect to the disposition of all securities covered by such
         Registration Statement during the applicable period in accordance with
         the intended method or methods of distribution by the sellers thereof
         set forth in such Registration Statement or supplement to the
         Prospectus;

                           (iii) in the case of a Shelf Registration, advise any
         Holders at their record address and, if requested by such Persons, to
         confirm such advice in writing, (A) when the Prospectus or any
         Prospectus supplement or post-effective amendment has been filed, and,
         with respect to any Registration Statement or any post-effective
         amendment thereto, when the same has become effective, (B) of any
         request by the Commission for amendments to the Registration Statement
         or amendments or supplements to the Prospectus or for additional
         information relating thereto, (C) of the issuance by the Commission of
         any stop order suspending the effectiveness of the Registration
         Statement under the Securities Act or of the suspension by any state
         securities commission of the qualification of the Transfer Restricted
         Securities for offering or sale in any jurisdiction, or the initiation
         of any proceeding for any of the preceding purposes, (D) of the
         existence of any fact or the happening of any event that makes any
         statement of a material fact made in the Registration Statement, the
         Prospectus, any amendment or supplement thereto, or any document
         incorporated by reference therein untrue, or that requires the making
         of any additions to or changes in the Registration Statement or the
         Prospectus in order to make the statements therein not misleading. If
         at any time the Commission shall issue any stop order suspending the
         effectiveness of the Registration Statement, or any state securities
         commission or other regulatory authority shall issue an order
         suspending the qualification or exemption from qualification of the
         Transfer Restricted Securities under state securities or Blue Sky laws,
         the Company shall use all commercially reasonable efforts to obtain the
         withdrawal or lifting of such order at the earliest possible time;

                           (iv) in the case of a Shelf Registration, furnish to
         each of the selling or exchanging Holders that are Initial Purchasers
         upon request (and upon receipt of such confidentiality agreements as
         may reasonably be requested by the Company) and each of their
         underwriter(s), if any, before filing with the Commission, copies of
         any Registration Statement or any Prospectus included therein or any
         amendments or supplements to any such Registration Statement or
         Prospectus (including all documents incorporated by reference after the

                                      -9-
<PAGE>

         initial filing of such Registration Statement), which documents will be
         subject to the review of such Holders and underwriter(s), if any, for a
         period of at least five business days, and the Company will not file
         any such Registration Statement or Prospectus or any amendment or
         supplement to any such Registration Statement or Prospectus (including
         all such documents incorporated by reference) to which selling Holders
         of a majority in aggregate principal amount of Transfer Restricted
         Securities covered by such Registration Statement or the
         underwriter(s), if any, shall reasonably object within five business
         days after the receipt thereof. A selling Holder or underwriter, if
         any, shall be deemed to have reasonably objected to such filing if such
         Registration Statement, amendment, Prospectus or supplement, as
         applicable, as proposed to be filed, contains a material misstatement
         or omission;

                           (v) in the case of a Shelf Registration, make
         available at reasonable times for inspection by the selling Holders
         that are Initial Purchasers and any of their underwriters participating
         in any disposition pursuant to such Registration Statement, and any
         attorney or accountant retained by such selling Holders or any of the
         underwriter(s), all financial and other records, pertinent corporate
         documents and properties of the Company and cause the Company's
         officers, directors, managers and employees to supply all information
         reasonably requested by any such Holder, underwriter, attorney or
         accountant in connection with such Registration Statement subsequent to
         the filing thereof and prior to its effectiveness;

                           (vi) in the case of a Shelf Registration, if
         requested by any selling Holders that are Initial Purchasers or any of
         their underwriter(s), promptly incorporate in any Registration
         Statement or Prospectus, pursuant to a supplement or post-effective
         amendment if necessary, such information as such selling Holders and
         underwriter(s), if any, may reasonably request to have included
         therein, including, without limitation, information relating to the
         "Plan of Distribution" of the Transfer Restricted Securities,
         information with respect to the principal amount of Transfer Restricted
         Securities being sold to such underwriter(s), the purchase price being
         paid therefor and any other terms of the offering of the Transfer
         Restricted Securities to be sold in such offering; and make all
         required filings of such Prospectus supplement or post-effective
         amendment as soon as practicable after the Company is notified of the
         matters to be incorporated in such Prospectus supplement or
         post-effective amendment;

                           (vii) in the case of a Shelf Registration, furnish to
         each selling Holder and, in the case of any selling Holder that is an
         Initial Purchase, each of their underwriter(s), if any, without charge,
         at least one copy of the Registration Statement, as first filed with
         the Commission, and of each amendment thereto, including all documents
         incorporated by reference therein and all exhibits (including exhibits
         incorporated therein by reference);

                           (viii) in the case of a Shelf Registration, deliver
         to each selling Holder and, in the case of any selling Holder that is
         an Initial Purchaser, each of their underwriter(s), if any, without
         charge, as many copies of the Prospectus (including each preliminary
         prospectus) and any amendment or supplement thereto as such Persons

                                      -10-
<PAGE>

         reasonably may request; the Company hereby consents to the use of the
         Prospectus and any amendment or supplement thereto by each of the
         selling Holders and each of the underwriter(s), if any, in connection
         with the offering and the sale of the Transfer Restricted Securities
         covered by the Prospectus or any amendment or supplement thereto;

                           (ix) in the case of a Shelf Registration requested by
         an Initial Purchaser, enter into such agreements (including an
         underwriting agreement), and make such representations and warranties,
         and take all such other actions in connection therewith in order to
         expedite or facilitate the disposition of the Transfer Restricted
         Securities pursuant to any Registration Statement contemplated by this
         Agreement, all to such extent as may be requested by any Purchaser or
         by any Holder of Transfer Restricted Securities or underwriter in
         connection with any sale or resale pursuant to any Registration
         Statement contemplated by this Agreement; and in connection with an
         Underwritten Registration, the Company shall:

                           (A) upon request, furnish to each selling Holder and
                  each underwriter, if any, in such substance and scope as they
                  may request and as are customarily made by issuers to
                  underwriters in primary underwritten offerings, upon the date
                  of the effectiveness of the Shelf Registration Statement:

                                    (1) a certificate, dated the date of the
                           effectiveness of the Shelf Registration Statement,
                           signed by (y) the Chairman of the Board, its
                           President or a Vice President and (z) the Chief
                           Financial Officer of the Company, confirming, as of
                           the date thereof, such matters as such parties may
                           reasonably request;

                                    (2) an opinion, dated the date of the
                           effectiveness of the Shelf Registration Statement, of
                           counsel for the Company, covering such matters as
                           such parties may reasonably request, and in any event
                           including a statement to the effect that such counsel
                           has participated in conferences with officers and
                           other representatives of the Company, representatives
                           of the independent public accountants for the
                           Company, the Initial Purchasers' representatives and
                           the Initial Purchasers' counsel in connection with
                           the preparation of such Registration Statement and
                           the related Prospectus and have considered the
                           matters required to be stated therein and the
                           statements contained therein, although such counsel
                           has not independently verified the accuracy,
                           completeness or fairness of such statements; and that
                           such counsel advises that, on the basis of the
                           foregoing (relying as to materiality to a large
                           extent upon facts provided to such counsel by
                           officers and other representatives of the Company and
                           without independent check or verification), no facts
                           came to such counsel's attention that caused such
                           counsel to believe that the applicable Registration
                           Statement, at the time such Registration Statement or
                           any post-effective amendment thereto became
                           effective, contained an untrue statement of a
                           material fact or omitted to state a material fact
                           required to be stated therein or necessary to make
                           the statements therein not misleading, or that the

                                      -11-
<PAGE>

                           Prospectus contained in such Registration Statement
                           as of its date, contained an untrue statement of a
                           material fact or omitted to state a material fact
                           necessary in order to make the statements therein, in
                           light of the circumstances under which they were
                           made, not misleading. Without limiting the foregoing,
                           such counsel may state further that such counsel
                           assumes no responsibility for, and has not
                           independently verified, the accuracy, completeness or
                           fairness of the financial statements, notes and
                           schedules and other financial and statistical data
                           included in any Registration Statement contemplated
                           by this Agreement or the related Prospectus; and

                                    (3) a customary comfort letter, dated the
                           date of the effectiveness of the Shelf Registration
                           Statement, from the Company's independent
                           accountants, in the customary form and covering
                           matters of the type customarily covered in comfort
                           letters to underwriters in connection with primary
                           underwritten offerings.

                           (B) set forth in full or incorporated by reference in
                  the underwriting agreement, if any, the indemnification
                  provisions and procedures of Section 8 hereof with respect to
                  all parties to be indemnified pursuant to said Section; and

                           (C) deliver such other documents and certificates as
                  may be reasonably requested by such parties to evidence
                  compliance with clause (A) above and with any customary
                  conditions contained in the underwriting agreement or other
                  agreement entered into by the Company pursuant to this clause
                  (xi), if any.

                           If at any time the representations and warranties of
                  the Company contemplated in clause (A)(1) above cease to be
                  true and correct, the Company shall so advise the Initial
                  Purchasers and the underwriter(s), if any, and each selling
                  Holder promptly and, if requested by such Persons, shall
                  confirm such advice in writing;

                           (x) in the case of a Shelf Registration, prior to any
         public offering of Transfer Restricted Securities, cooperate with the
         selling Holders that are Initial Purchasers, their underwriter(s), if
         any, and their respective counsel in connection with the registration
         and qualification of the Transfer Restricted Securities under the
         securities or Blue Sky laws of such jurisdictions as the selling
         Holders or underwriter(s) may reasonably request and do any and all
         other acts or things necessary or advisable to enable the disposition
         in such jurisdictions of the Transfer Restricted Securities covered by
         the Shelf Registration Statement; provided, however, that the Company
         shall not be required to register or qualify as a foreign corporation
         where it is not now so qualified or to take any action that would
         subject it to the service of process in suits or to taxation, other
         than as to matters and transactions relating to the Registration
         Statement, in any jurisdiction where it is not now so subject;

                                      -12-
<PAGE>

                           (xi) in the case of a Shelf Registration , shall
         issue, upon the request of any Holder of Notes covered by the Shelf
         Registration Statement, Exchange Notes in the same amount as the Notes
         surrendered to the Company by such Holder in exchange therefor or being
         sold by such Holder; such Exchange Notes to be registered in the name
         of such Holder or in the name of the purchaser(s) of such Exchange
         Notes, as the case may be; in return, the Notes held by such Holder
         shall be surrendered to the Company for cancellation;

                           (xii) in the case of a Shelf Registration, cooperate
         with the selling Holders and, in the case of any selling Holder that is
         an Initial Purchaser, each of their underwriter(s), if any, to
         facilitate the timely preparation and delivery of certificates
         representing Transfer Restricted Securities to be sold and not bearing
         any restrictive legends; and enable such Transfer Restricted Securities
         to be in such denominations and registered in such names as the Holders
         or the underwriter(s) acting on behalf of any Initial Purchaser, if
         any, may request at least two business days prior to any sale of
         Transfer Restricted Securities made by such underwriter(s);

                           (xiii) use all commercially reasonable efforts to
         cause the Transfer Restricted Securities covered by the Registration
         Statement to be registered with or approved by such other governmental
         agencies or authorities as may be necessary to enable the seller or
         sellers thereof or, in the case Initial Purchasers are selling Holders,
         the underwriter(s), if any, to consummate the disposition of such
         Transfer Restricted Securities, subject to the proviso contained in
         clause (xii) above;

                           (xiv) if any fact or event contemplated by clause
         (c)(iii)(D) above shall exist or have occurred, prepare a supplement or
         post-effective amendment to the Registration Statement or related
         Prospectus or any document incorporated therein by reference or file
         any other required document so that, as thereafter delivered to the
         purchasers of Transfer Restricted Securities, the Prospectus will not
         contain an untrue statement of a material fact or omit to state any
         material fact necessary to make the statements therein not misleading;

                           (xv) provide CUSIP numbers for all Transfer
         Restricted Securities not later than the effective date of the
         Registration Statement and provide certificates for the Transfer
         Restricted Securities;

                           (xvi) cooperate and assist in any filings required to
         be made with the NASD and in the performance of any due diligence
         investigation by any Initial Purchaser or any underwriter acting on its
         behalf (including any "qualified independent underwriter") that is
         required to be retained in accordance with the rules and regulations of
         the NASD, and use all commercially reasonable efforts to cause such
         Registration Statement to become effective and approved by such
         governmental agencies or authorities as may be necessary to enable the
         Holders selling Transfer Restricted Securities to consummate the
         disposition of such Transfer Restricted Securities; provided, however,
         that the Company shall not be required to register or qualify as a
         foreign corporation where it is not now so qualified or to take any
         action that would subject it to the service of process in suits or to

                                      -13-
<PAGE>

         taxation, other than as to matters and transactions relating to the
         Registration Statement, in any jurisdiction where it is not now so
         subject;

                           (xvii) otherwise use all commercially reasonable
         efforts to comply with all applicable rules and regulations of the
         Commission, and make generally available to their security holders, as
         soon as practicable, a consolidated earnings statement meeting the
         requirements of Rule 158 (which need not be audited) for the
         twelve-month period (A) commencing at the end of any fiscal quarter in
         which Transfer Restricted Securities are sold to underwriters acting on
         behalf of any Initial Purchaser in a firm or best efforts Underwritten
         Offering or (B) if not sold to underwriters in such an offering,
         beginning with the first month of the Company's first fiscal quarter
         commencing after the effective date of the Registration Statement;

                           (xviii) cause the Indenture to be qualified under the
         TIA not later than the effective date of the first Registration
         Statement required by this Agreement, and, in connection therewith,
         cooperate with the Trustee and the Holders of Notes to effect such
         changes to the Indenture as may be required for such Indenture to be so
         qualified in accordance with the terms of the TIA; and execute and use
         all commercially reasonable efforts to cause the Trustee to execute all
         documents that may be required to effect such changes and all other
         forms and documents required to be filed with the Commission to enable
         such Indenture to be so qualified in a timely manner; and

                           (xix) provide promptly to each Holder upon request
         each document filed with the Commission pursuant to the requirements of
         Section 13 and Section 15 of the Exchange Act.

                  Each Holder agrees by acquisition of a Transfer Restricted
Security that, upon receipt of any notice from the Company of the existence of
any fact of the kind described in Section 6(c)(iii)(D) hereof, such Holder will
forthwith discontinue disposition of Transfer Restricted Securities pursuant to
the applicable Registration Statement until such Holder's receipt of the copies
of the supplemented or amended Prospectus contemplated by Section 6(c)(xvi)
hereof, or until it is advised in writing (the "Advice") by the Company that the
use of the Prospectus may be resumed, and has received copies of any additional
or supplemental filings that are incorporated by reference in the Prospectus. If
so directed by the Company, each Holder will deliver to the Company (at the
Company's expense) all copies, other than permanent file copies then in such
Holder's possession, of the Prospectus covering such Transfer Restricted
Securities that was current at the time of receipt of such notice. In the event
the Company shall give any such notice, the time period regarding the
effectiveness of such Registration Statement set forth in Section 3 or 4 hereof,
as applicable, shall be extended by the number of days during the period from
and including the date of the giving of such notice pursuant to Section
6(c)(iii)(D) hereof to and including the date when each selling Holder covered
by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof or
shall have received the Advice.

         7. Registration Expenses.

                                      -14-
<PAGE>

                  All expenses incident to the Company's performance of or
compliance with this Agreement will be borne by the Company, regardless of
whether a Registration Statement becomes effective, including without
limitation: (i) all registration and filing fees and expenses (including filings
made by any Initial Purchaser with the NASD (and, if applicable, the fees and
expenses of any "qualified independent underwriter" and its counsel that may be
required by the rules and regulations of the NASD)); (ii) all fees and expenses
of compliance with federal securities and state Blue Sky or securities laws;
(iii) all expenses of printing (including printing certificates for the Exchange
Notes to be issued in the Exchange Offer and printing of Prospectuses), and
associated messenger and delivery services and telephone; (iv) all fees and
disbursements of counsel for the Company; and (v) all fees and disbursements of
independent certified public accountants of the Company (including the expenses
of any special audit and comfort letters required by or incident to such
performance).

         The Company will, in any event, bear their internal expenses
(including, without limitation, all salaries and expenses of their officers and
employees performing legal or accounting duties), the expenses of any annual
audit and the fees and expenses of any Person, including special experts,
retained by the Company.

         8. Indemnification and Contribution.

                  (a) In connection with a Shelf Registration Statement or in
connection with any delivery of a Prospectus contained in an Exchange Offer
Registration Statement by any participating Broker-Dealer or Initial Purchaser,
as applicable, who seeks to sell Exchange Notes, the Company shall indemnify and
hold harmless each Holder of Transfer Restricted Securities included within any
such Shelf Registration Statement and each participating Broker-Dealer or
Initial Purchaser selling Exchange Notes, and each person, if any, who controls
any such person within the meaning of Section 15 of the Securities Act (each, a
"Participant") from and against any loss, claim, damage or liability, joint or
several, or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability or action relating to purchases and sales of
Notes) to which such Participant or controlling person may become subject, under
the Securities Act or otherwise, insofar as such loss, claim, damage, liability
or action arises out of, or is based upon, (i) any untrue statement or alleged
untrue statement of a material fact contained in any such Registration Statement
or any prospectus forming part thereof or in any amendment or supplement thereto
or (ii) the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and shall reimburse each Participant promptly upon demand for any
legal or other expenses reasonably incurred by such Participant in connection
with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided,
however, that (i) the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, liability or action arises out of, or is
based upon, any untrue statement or alleged untrue statement or omission or
alleged omission made in any such Registration Statement or any prospectus
forming part thereof or in any such amendment or supplement in reliance upon and
in conformity with written information furnished to the Company by or on behalf
of any Participant specifically for inclusion therein; and provided further that
as to any preliminary Prospectus, the indemnity agreement contained in this
Section 8(a) shall not inure to the benefit of any such Participant or any
controlling person of such Participant on account of any loss, claim, damage,

                                      -15-
<PAGE>

liability or action arising from the sale of the Exchange Notes to any person by
that Participant if (i) that Participant failed to send or give a copy of the
Prospectus, as the same may be amended or supplemented, to that person within
the time required by the Securities Act and (ii) the untrue statement or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact in such preliminary Prospectus was corrected in the Prospectus,
unless, in each case, such failure resulted from non-compliance by the Company
with Section 6(c). The foregoing indemnity agreement is in addition to any
liability which the Company may otherwise have to any Participant or to any
controlling person of that Participant.

                  (b) Each Participant, severally and not jointly, shall
indemnify and hold harmless the Company, its directors, officers, employees or
agents and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof, to which the
Company or any such director, officer, employees or agents or controlling person
may become subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon, (i) any
untrue statement or alleged untrue statement of a material fact contained in any
preliminary Prospectus, Registration Statement or Prospectus or in any amendment
or supplement thereto or (ii) the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading, but in each case only to the extent that the
untrue statement or alleged untrue statement or omission or alleged omission was
made in reliance upon and in conformity with written information furnished to
the Company by or on behalf of that Participant specifically for inclusion
herein, and shall reimburse the Company and any such director, officer,
employees or agents or controlling person for any legal or other expenses
reasonably incurred by the Company or any such director, officer, employees or
agents or controlling person in connection with investigating or defending or
preparing to defend against any such loss, claim, damage, liability or action as
such expenses are incurred. The foregoing indemnity agreement is in addition to
any liability which any Participant may otherwise have to the Company or any
such director, officer or controlling person.

                  (c) Promptly after receipt by an indemnified party under this
Section 8 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has
been materially prejudiced by such failure and, provided further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 8.
If any such claim or action shall be brought against an indemnified party, and
it shall have notified the indemnifying party thereof, the indemnifying party
shall be entitled to participate therein and, to the extent that it wishes,
jointly with any other similarly notified indemnifying party, to assume the
defense thereof with counsel satisfactory to the indemnified party. After notice
from the indemnifying party to the indemnified party of its election to assume
the defense of such claim or action, the indemnifying party shall not be liable
to the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense

                                      -16-
<PAGE>

thereof other than reasonable costs of investigation; provided, however, that
the indemnified party shall have the right to employ counsel to represent
jointly the indemnified party and those other Participants and its respective
officers, employees and controlling persons who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the
Participants against the indemnifying party under this Section 8 if, in the
reasonable judgment of the indemnified party it is advisable for the indemnified
party and those Participants, officers, employees and controlling persons to be
jointly represented by separate counsel, and in that event the fees and expenses
of such separate counsel shall be paid by the indemnifying party. In no event
shall the indemnifying parties be liable for the fees and expenses of more than
one counsel (in addition to local counsel). Each indemnified party, as a
condition of the indemnity agreements contained in Section 8, shall use its best
efforts to cooperate with the indemnifying party in the defense of any such
action or claim. No indemnifying party shall (i) without the prior written
consent of the indemnified parties (which consent shall not be unreasonably
withheld), settle or compromise or consent to the entry of any judgment with
respect to any pending or threatened claim, action, suit or proceeding in
respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified parties are actual or potential parties to such
claim or action) unless such settlement, compromise or consent includes an
unconditional release of each indemnified party from all liability arising out
of such claim, action, suit or proceeding, or (ii) be liable for any settlement
of any such action effected without its written consent (which consent shall not
be unreasonably withheld), but if settled with its written consent or if there
be a final judgment of the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment.

                  (d) If the indemnification provided for in this Section 8
shall for any reason be unavailable to or insufficient to hold harmless an
indemnified party under Section 8(a) or 8(b) in respect of any loss, claim,
damage or liability, or any action in respect thereof, referred to therein, then
each indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect thereof, in such
proportion as shall be appropriate to reflect the relative fault of the Company
on the one hand and the Participants on the other with respect to the statements
or omissions which resulted in such loss, claim, damage or liability, or action
in respect thereof, as well as any other relevant equitable considerations. The
relative fault shall be determined by reference to whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company or the
Participants, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Company and the Participants agree that it would not be just and equitable
if contributions pursuant to this Section 8(d) were to be determined by pro rata
allocation (even if the Participants were treated as one entity for such
purpose) or by any other method of allocation which does not take into account
the equitable considerations referred to herein. The amount paid or payable by
an indemnified party as a result of the loss, claim, damage or liability, or
action in respect thereof, referred to above in this Section 8(d) shall be
deemed to include, for purposes of this Section 8(d), any legal or other
expenses reasonably incurred by such indemnified party in connection with

                                      -17-
<PAGE>

investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8(d), no Participant shall be required to contribute
any amount in excess of the amount by which proceeds received by such
Participant from an offering of the Notes exceeds the amount of any damages
which such Participant has otherwise paid or become liable to pay by reason of
any untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Participants'
obligations to contribute as provided in this Section 8(d) are several and not
joint.

         9. Rule 144A.

                  The Company hereby agrees with each Holder, for so long as any
Transfer Restricted Securities remain outstanding, to make available to any
Holder or beneficial owner of Transfer Restricted Securities in connection with
any sale thereof and any prospective purchaser of such Transfer Restricted
Securities from such Holder or beneficial owner, the information required by
Rule 144A(d)(4) under the Securities Act in order to permit resales of such
Transfer Restricted Securities pursuant to Rule 144A.

         10. Participation in Underwritten Registrations.

                  No Initial Purchaser may participate in any Underwritten
Registration hereunder unless such Holder (a) agrees to sell such Holder's
Transfer Restricted Securities on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all reasonable questionnaires,
powers of attorney, indemnities, underwriting agreements, lock-up letters and
other documents required under the terms of such underwriting arrangements.

         11. Selection of Underwriters.

                  Initial Purchasers of Transfer Restricted Securities covered
by the Shelf Registration Statement who desire to do so may sell such Transfer
Restricted Securities in an Underwritten Offering. In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers
that will administer the offering will be selected by the Company; provided,
that such investment bankers and managers must be reasonably satisfactory to the
Holders of a majority in aggregate principal amount of the Transfer Restricted
Securities included in such offering.

         12. Miscellaneous.

                  (a) No Inconsistent Agreements. The Company will not on or
after the date of this Agreement enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions hereof. The rights granted
to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Company's securities
under any agreement in effect on the date hereof.

                                      -18-
<PAGE>

                  (b) Adjustments Affecting the Notes. The Company will not take
any action, or permit any change to occur, with respect to Notes that would
materially and adversely affect the ability of the Holders to Consummate any
Exchange Offer unless such action or change is required by applicable law.

                  (c) Amendments and Waivers. The provisions of this Agreement
may not be amended, modified or supplemented, and waivers or consents to or
departures from the provisions hereof may not be given unless the Company has
obtained the written consent of Holders of a majority of the outstanding
principal amount of Transfer Restricted Securities. Notwithstanding the
foregoing, a waiver or consent to departure from the provisions hereof that
relates exclusively to the rights of Holders whose securities are being tendered
pursuant to the Exchange Offer and that does not affect directly or indirectly
the rights of other Holders whose securities are not being tendered pursuant to
such Exchange Offer may be given by the Holders of a majority of the outstanding
principal amount of Transfer Restricted Securities being tendered or registered.

                  (d) Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand-delivery, first-class
mail (registered or certified, return receipt requested), telex, telecopier, or
air courier guaranteeing overnight delivery:

                           (i) if to a Holder, at the address of such Holder
         maintained by the Registrar under the Indenture; and

                           (ii) if to the Company:

                                    Six Flags, Inc.
                                    122 East 42nd Street
                                    49th Floor
                                    New York, NY 10168
                                    Attention:  General Counsel
                                    Facsimile:  212-949-6203

                                    With a copy to:

                                    Weil, Gotshal & Manges LLP
                                    767 West Fifth Street
                                    New York, NY 10053
                                    Attention:  David Lefkowitz, Esq.
                                    Facsimile:  212-310-8007

                  All such notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five
business days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if telecopied; and on
the next business day, if timely delivered to an air courier guaranteeing
overnight delivery.

                                      -19-
<PAGE>

                  Copies of all such notices, demands or other communications
shall be concurrently delivered by the Person giving the same to the Trustee at
the address specified in the Indenture.

                  (e) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be binding
upon a successor or assign of a Holder unless and to the extent such successor
or assign acquired Transfer Restricted Securities from such Holder.

                  (f) Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                  (g) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                  (i) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                  (j) Entire Agreement. This Agreement together with the other
transaction documents is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter
contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein with respect to
the registration rights granted by the Company with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and
understandings among the parties with respect to such subject matter.

                  (k) Required Consents. Whenever the consent or approval of
Holders of a specified percentage of Transfer Restricted Securities is required
hereunder, Transfer Restricted Securities held by the Company or any of its
respective affiliates (as such term is defined in Rule 405 under the Securities
Act) shall not be counted in determining whether such consent or approval was
given by the Holders of such required percentage.

                                      -20-
<PAGE>

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

                                    SIX FLAGS, INC.

                                    By:   _________________________________
                                          Name:
                                          Title:

Accepted as of the date thereof

LEHMAN BROTHERS INC.
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
MORGAN STANLEY & CO. INCORPORATED
SALOMON SMITH BARNEY INC.
ALLEN & COMPANY INCORPORATED
BNY CAPITAL MARKETS, INC.
CREDIT LYONNAIS SECURITIES (USA) INC.
SCOTIA CAPITAL (USA) INC.

By:   LEHMAN BROTHERS INC.

By:      _______________________
         Name:
         Title:

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