Document:

Form of Common Stock Purchase Warrants

 Exhibit 4.2(c) 
 FORM OF COMMON STOCK PURCHASE WARRANT 
 NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE
HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED EXCEPT (1) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT AND REGISTRATION OR QUALIFICATION OF SUCH SECURITIES UNDER APPLICABLE STATE SECURITIES LAWS OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE SECURITIES REASONABLY SATISFACTORY TO
THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS. 
  

	
	Warrant No.             , Date

 COMMON STOCK PURCHASE WARRANT 
 Tully’s Coffee Corporation, a Washington corporation (the “Company”), hereby grants to , or their registered assigns or transferees
(each being referred to herein as a “holder” and collectively as the “holders”) the right to purchase, at any time and from time to time on and after the Vesting Date (as defined below) until the Expiration Date (as defined
below), up to             shares of Common Stock of the Company (the “Common Stock”), on the terms and subject to the conditions set forth below 
 1. Exercise, Vesting and Expiration of Warrant. 
 1.1 Exercise. Subject to adjustment as hereinafter provided, the rights represented by this Warrant are exercisable in whole or part on and after the Vesting Date until the Expiration Date, at a price per share
(the “Exercise Price”) of the Common Stock issuable hereunder (hereinafter, “Warrant Shares”) of five cents ($0.05). The Exercise Price shall be payable by check acceptable to the Company, by cancellation by the holder of
indebtedness or other obligations of the Company to the holder, or by wire transfer of immediately available funds. 
 1.2
Procedure. Upon surrender of this Warrant with a duly executed Notice of Exercise in the form of Annex A attached hereto, together with payment of the Exercise Price for the number of Warrant Shares being purchased upon exercise of this Warrant,
at the Company’s principal executive offices presently located at 3100 Airport Way South, Seattle, WA, 98134, or at such other address as the Company shall have advised the holder in writing (the “Designated Office”), the holder shall
be entitled to receive a certificate or certificates for 

  

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the Warrant Shares so purchased. The Warrant Shares shall be deemed to have been issued to the holder as of the close of business on the date on which this
Warrant shall have been surrendered together with the Notice of Exercise and payment for such Warrant Shares. 
 1.3
Vesting. This Warrant will vest and become exercisable in full on the earliest of (i) the first anniversary of the date hereof; (ii) the merger or consolidation of the Company with or into another corporation in which the Company is
not the surviving entity, or a merger in which the Company is the surviving entity but the shares of the Company’s capital stock outstanding immediately prior to the merger are converted into other property, whether in the form of securities,
cash, or otherwise; (iii) the sale or transfer of all or substantially all of the Company’s properties and assets as an entirety to any other person; (iv) the effectiveness of the registration statement relating to a Qualified Public
Offering (as defined below) of the Company’s common stock; or (v) the conversion of more than 25% of the Company’s outstanding Series A preferred shares in any twelve month period (any such date, the “Vesting Date”). This
Warrant is not callable or redeemable by the Company. 
 1.4 Term of Warrant. This Warrant shall expire and be of no
further force or effect upon the earlier of: 
  

	 	 (a)
	 the tenth (10th) anniversary of the Vesting Date (the “Expiration Date”); or 

  

	 	(b)	the completion by the Company of a “Qualified Public Offering” (as defined herein); provided, that the Company shall deliver to the holder notice of the Qualified Public
Offering, and the holder’s right to exercise this Warrant, no less than thirty (30) days before the date scheduled for the effectiveness of the registration statement relating thereto. For purposes of this subsection 1.4(b),
“Qualified Public Offering” shall mean the consummation of the Company’s first underwritten sale of its Common Stock to the public pursuant to a registration statement on Form S-1 or Form SB-2 (or any successor form) under the
Securities Act of 1933, as amended, at an aggregate price to the public of at least $15 million and a per share price to the public of at least $5 (as adjusted for stock splits, combinations, recapitalizations and the like).

 2. Transfer; Issuance of Stock Certificates: Restrictive Legends. 
 2.1 Transfer. Subject to compliance with the restrictions on transfer set forth in this Section 2 and the legends set forth
below, each transfer of this Warrant and all rights hereunder, in whole or in part, shall be registered on the books of the Company to be maintained for such purpose, upon surrender of this Warrant at the Designated Office, together with a written
assignment of this Warrant in the form of Annex B attached hereto duly executed by the holder or its agent or attorney. Upon such surrender and delivery, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, if any. A Warrant, if properly assigned in compliance with the
provisions hereof, may be exercised by the new holder for the 

  

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purchase of Warrant Shares without having a new Warrant issued. Prior to due presentment for registration of transfer thereof, the Company may deem and treat
the registered holder of this Warrant as the absolute owner hereof (notwithstanding any notations of ownership or writing thereon made by anyone other than a duly authorized officer of the Company) for all purposes and shall not be affected by any
notice to the contrary. All Warrants issued upon any assignment of Warrants shall be the valid obligations of the Company, evidencing the same rights, and entitled to the same benefits as the Warrants surrendered upon such registration of transfer
or exchange. 
 2.2 Stock Certificates. Certificates for the Warrant Shares shall be delivered to the holder within a
reasonable time after the rights represented by this Warrant shall have been exercised pursuant to Section 1 (but in any event no later than twenty (20) business days thereafter), and a new Warrant representing the shares of Common Stock,
if any, with respect to which this Warrant shall not then have been exercised shall also be issued to the holder within such time period. The issuance of certificates for Warrant Shares upon the exercise of this Warrant shall be made without charge
to the holder hereof including, without limitation, any documentary, stamp or similar tax that may be payable in respect thereof; provided, however, that the Company shall not be required to pay any income tax to which the holder hereof may be
subject in connection with the issuance of this Warrant or the Warrant Shares. 
 2.3 Compliance with Securities Laws;
Restrictive Legends. 
 2.3.1 Compliance with Securities Laws. The holder, by acceptance hereof,
acknowledges that this Warrant and the shares of Common Stock to be issued upon exercise hereof are being acquired solely for the holder’s own account and not as a nominee for any other party, and for investment, and that the holder will not
offer, sell or otherwise dispose of this Warrant or any shares of Common Stock to be issued upon exercise hereof except under circumstances that will not result in a violation of the 1933 Act or applicable state securities laws. Upon exercise of
this Warrant, the holder shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the shares of Common Stock so purchased are being acquired solely for the holder’s own account and not as a nominee for
any other party, for investment, and not with a view toward distribution or resale. 
 2.3.2 Share Legends. Except as
otherwise provided in this Section 2, each certificate for Warrant Shares initially issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued to any subsequent transferee of any such certificate, shall be stamped
or otherwise imprinted with a legend in substantially the following form: 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE
BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR THE SECURITIES LAWS OF ANY STATE. THESE SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR EXEMPTION THEREFROM UNDER
SAID ACT AND LAWS. 
  

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 2.3.3 Warrant Legends. Except as otherwise provided in this Section 2, each
Warrant issued upon transfer shall be stamped or otherwise imprinted with a legend in substantially the following form: 
 NEITHER THIS
WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED OR
HYPOTHECATED EXCEPT (1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND REGISTRATION OR QUALIFICATION OF SUCH SECURITIES UNDER APPLICABLE STATE SECURITIES LAWS OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS. 
 2.3.4 Removal of Legends. Notwithstanding the foregoing, the legend requirements of Sections 2.3.1 and 2.3.2 shall terminate as to
any particular Warrant or Warrant Share when the Company shall have received from the holder thereof an opinion of counsel in form and substance satisfactory to the Company that such legend is not required in order to ensure compliance with the
Securities Act. Whenever the restrictions imposed by this Section 2 shall terminate, the holder hereof or of Warrant Shares, as the case may be, shall be entitled to receive from the Company, without cost to such holder, a new Warrant or
certificate for Warrant Shares of like tenor, as the case may be, without such restrictive legend. 
 3. Adjustment of Number of Shares;
Exercise Price: Nature of Securities Issuable Upon Exercise of Warrants. 
 3.1 Exercise Price: Adjustment of Number of
Shares. The Exercise Price set forth in Section 1 hereof and the number of shares purchasable hereunder shall be subject to adjustment from time to time as hereinafter provided. 
 3.1.1 Stock Splits, Stock Dividends and Reverse Stock Splits. In case at any time the Company shall split or subdivide the
outstanding shares of Common Stock into a greater number of shares, or shall declare and pay any stock dividend with respect to its outstanding stock that has the effect of increasing the number of outstanding shares of Common Stock, the Exercise
Price in effect immediately prior to such subdivision or stock dividend, shall be proportionately reduced and the number of Warrant Shares purchasable pursuant to this Warrant immediately prior to such subdivision or stock dividend shall be
proportionately increased, and conversely, in case at any time the Company shall combine its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be
proportionately increased and the number of Warrant Shares 

  

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purchasable upon the exercise of this Warrant immediately prior to such combination shall be proportionately reduced. By way of example, in the event the
Company implements a two-for-one stock split, the holder of a Warrant to purchase 100 Warrant Shares with an exercise price of $.05 per Warrant Share would, following such stock split, be entitled to purchase 200 Warrant Shares, and the Exercise
Prices therefor set forth in Section 1.1 would each be halved; accordingly, a full exercise of said Warrant would result in a purchase of 200 Warrant Shares at an Exercise Price of $0.025 per Warrant Share, for an aggregate purchase price of
$5.00. 
 3.1.2 Merger, Sale of Assets, etc. If at any time while this Warrant, or any portion thereof, is outstanding
and unexpired there shall be a reorganization (other than a combination, reclassification, exchange, or subdivision of shares as provided in Sections 3.1.1 and 3.1.3), merger or consolidation of the Company with or into another corporation in which
the Company is not the surviving entity, or a merger in which the Company is the surviving entity but the shares of the Company’s capital stock outstanding immediately prior to the merger are converted into other property, whether in the form
of securities, cash, or otherwise, or a sale or transfer of all or substantially all of the Company’s properties and assets as an entirety to any other person, then, as a part of such reorganization, merger, consolidation, sale or transfer,
lawful provision shall be made so that the holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Exercise Price then in effect, the number of shares
of stock or other securities or cash or property of the successor corporation resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this Warrant would have been entitled
to receive in such reorganization, consolidation, merger, sale or transfer if this warrant had been exercised immediately before such reorganization, consolidation, merger, sale or transfer, all subject to final adjustment as provided in this
Section 3. The foregoing provisions of this Section 3.1.2 shall similarly apply to successive reorganizations, consolidations, mergers, sales and transfers and to the stock and securities of any other corporation that are at the time
receivable upon the exercise of this Warrant. If the per share consideration payable to the holder hereof for shares in connection with any such transaction is in a form other than cash or securities, then the value of such consideration shall be
determined in good faith by the Company’s Board of Directors. In all events, appropriate adjustment shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the holder hereof after the
transaction, to the end that the provisions of this Warrant shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable after that event upon exercise of this Warrant. 
 3.1.3 Reclassification, etc. If the Company, at any time while this Warrant, or any portion thereof, remains outstanding and
unexpired, shall, by the reclassification or exchange of securities or otherwise, change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this
Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification, exchange, or other change and the Exercise Price therefor in effect immediately prior to such reclassification, exchange or other change, and each of the subsequent applicable Exercise Prices, shall be
appropriately adjusted, all subject to further adjustment as provided in this Section 3. 
  

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 3.2 Dissolution, Liquidation or Wind-Up. In case the Company shall, at any time
prior to the exercise of this Warrant, dissolve, liquidate or wind up its affairs, the holder hereof shall be entitled, upon the exercise of this Warrant, to receive, in lieu of the Warrant Shares which the holder would have been entitled to
receive, the same kind and amount of assets as would have been issued, distributed or paid to such holder upon any such dissolution, liquidation or winding up with respect to such Warrant Shares, had such holder hereof been the holder of record of
the Warrant Shares receivable upon the exercise of this Warrant on the record date for the determination of those persons entitled to receive any such liquidating distribution. The Company shall provide the Holder notice of any such liquidation,
dissolution or winding up and of the Holder’s right to exercise this Warrant at least thirty (30) days prior to the date scheduled for the effective date thereof. 
 3.3 Certificate. In each case of an adjustment in the Exercise Prices, number of Warrant Shares or other stock, securities or
property receivable upon the exercise of this Warrant, the Company shall compute, certified by the Company’s Chief Financial officer, such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such
adjustment and showing in detail the facts upon which such adjustment is based, including a statement of (i) the number of shares of Common Stock of each class outstanding or deemed to be outstanding, (ii) the adjusted Exercise Price and
(iii) the number of Warrant Shares issuable upon exercise of this Warrant. The Company will forthwith mail a copy of each such certificate to the holder hereof. In the event that the holder disputes such adjustment, the holder shall be
entitled, at the holder’s sole expense, to request the Company’s independent certified public accountants to certify such adjustment, which in the absence of manifest error shall be final and binding. Upon determination of such adjustment,
the Board of Directors shall forthwith make the adjustments described therein. No certificate shall be required under this section unless the adjustment of the Exercise Prices would require an increase or decrease of at least $.01 per Warrant Share
in such price; provided that any adjustments which by reason of this sentence are not required to be made shall be carried forward and shall be made at the time of the next subsequent adjustment which, together with any adjustment(s) so carried
forward, shall require an increase or decrease of at least $.01 per Warrant Share in the Exercise Prices. 
 4. Registration; Exchange and
Replacement of Warrant; Reservation of Shares. 
 4.1 Warrant Register. The Company shall keep at the Designated
Office a register in which the Company shall provide for the registration, transfer and exchange of this Warrant. The Company shall not at any time, except upon the dissolution, liquidation or winding up of the Company, close such register so as to
result in preventing or delaying the exercise or transfer of this Warrant. 
 4.2 Named Holder as Owner. The Company
may deem and treat the person in whose name this Warrant is registered as the holder and owner hereof for all purposes and shall not be affected by any notice to the contrary, until presentation of this Warrant for registration or transfer as
provided in this Section 4. 
  

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 4.3 Replacement in Event of Loss, Theft, etc. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant and (in case of loss, theft or destruction) of indemnity satisfactory to it, and (in the case of mutilation) upon surrender and cancellation of this
Warrant, the Company will (in the absence of notice to the Company that the Warrant has been acquired by a bona fide purchaser) make and deliver a new Warrant of like tenor, in lieu of this Warrant without requiring the posting of any bond or
the giving of any security. 
 4.4 Shares Reserved. The Company shall at all times reserve and keep available out of
its authorized shares of Common Stock, solely for the purpose of issuance upon the exercise of this Warrant, such number of shares of Common Stock as shall be issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of
this Warrant and payment of the Exercise Price therefor, all Warrant Shares issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable. 
 5. Fractional Shares. 
 If the number of Warrant Shares purchasable upon the exercise of this Warrant
is adjusted pursuant to Section 3 hereof, the Company shall nevertheless not be required to issue fractions of shares, upon exercise of this Warrant or otherwise, or to distribute certificates that evidence fractional shares. With respect to
any fraction of a share called for upon any exercise hereof, the Company shall pay to the holder an amount in cash equal to such fraction multiplied by the current market value of such fractional share as may be prescribed by the Board of Directors
of the Company, but shall not be required to pay such amount if the aggregate amount for the holder is less than $1.00. 
 6. Notices.

 All notices, requests, consents and other communications hereunder shall be in writing and shall be deemed to have been duly made when
delivered personally, or mailed by registered or certified mail, return receipt requested, or telecopied or telexed and confirmed in writing and delivered personally or mailed by registered or certified mail, return receipt requested: 
  

	 	(a)	If to the holder of this Warrant, to the address of such holder as shown on the books of the Company; or 

  

	 	(b)	If to the Company, as follows: 

 Tully’s Coffee
Corporation 
 Attention: President 
 3100 Airport Way South 
 Seattle, WA 98134 
 Telephone: (206) 233-2070 
 Facsimile: (206) 233-2077 
 or at such other address as the holder or the Company may hereafter have advised the other. 
  

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 7. Successors. 
 The covenants, agreements, representations and warranties contained in this warrant shall bind the parties hereto and their respective heirs, executors, administrators, distributees, successors assigns and
transferees. 
 8. Voting and Dividends. 
 Subject to Sections 3.1.1 and 3.2 of this Warrant, the holder shall not be entitled to vote or receive dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be
issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any
matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, or change of stock to no par
value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise, until the Warrant shall have been exercised as provided herein. 
 9. Registration Rights. 
 The Company
shall grant Holder registration rights for the Warrant Shares that are no less favorable than those accruing to holders of Company’s Common Stock, if any. 
 10. Law Governing. 
 This Warrant shall be construed and enforced in accordance with, and governed by,
the laws of the State of Washington (not including the choice of law rules thereof) regardless of the jurisdiction of creation or domicile of the Company or its successors or of the holder at any time hereof. 
 11. Entire Agreement; Amendments and Waivers. 
 This Warrant sets forth the entire understanding of the parties with respect to the transactions contemplated hereby. The failure of any party to seek redress for the violation or to insist upon the strict performance of any term of this
Warrant shall not constitute a waiver of such term and such party shall be entitled to enforce such term without regard to such forbearance. This Warrant may be amended, and any breach of or compliance with any covenant, agreement, warranty or
representation may be waived, only if the Company has obtained the written consent or written waiver of the holder, and then such consent or waiver shall be effective only in the specific instance and for the specific purpose for which given.

  

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 12. Severability; Headings. 
 If any term of this Warrant as applied to any person or to any circumstance is prohibited, void, invalid or unenforceable in any jurisdiction, such term
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or invalidity without in any way affecting any other term of this Warrant or affecting the validity or enforceability of this Warrant or of such provision in any other
jurisdiction. The Section headings in this Warrant have been inserted for purposes of convenience only and shall have no substantive effect. 
 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date first written above. 
  

	
	TULLY’S COFFEE CORPORATION
	
	  

	AnthonyJ. Gioia, CEO

  

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 ANNEX A 
 NOTICE OF EXERCISE 
 (To be executed upon partial or full 
 exercise of the within Warrant) 
 To TULLY’S
COFFEE CORPORATION: 
 The undersigned hereby irrevocably elects to exercise the right to purchase shares of Common Stock covered by
the within Warrant according to the conditions hereof and herewith makes full payment of the Exercise Price of such shares in the amount of $0.05 per share. 
 In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Common Stock are being acquired solely for the account of the undersigned and not as a nominee for any other party, and
for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Common Stock except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state
securities laws. 
 Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in
such other name as is specified below: 
  

	
	
	  

	(Name)
	
	  

	(Name)

 Please issue a new Warrant for the unexercised portion of the attached Warrant in the name
of the undersigned or in such other name as is specified below: 
  

	
	  

	(Name)

  

			
		
	By:	 	  

		
	 	 	  

		 	(Signature of Registered Holder)

  

			
		
	Name:	 	  

		
	Address:	 	  

		
		 	  

		
		 	  

		
	Dated:	 	  

  

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 ANNEX B 
 ASSIGNMENT FORM 
 FOR VALUE RECEIVED the undersigned registered owner of this Warrant hereby sells,
assigns and transfers unto the Assignee named below all of the rights of the undersigned under this Warrant, with respect to the number of shares of Common Stock set forth below: 
  

			
	 Name and Address of Assignee
	 	No. of Shares of Common Stock

  
 and does hereby irrevocably constitute and
appoint attorney- in-fact to register such transfer onto the books of Tully’s Coffee Corporation maintained for the purpose, with full power of substitution in the premises. The undersigned hereby certifies that this assignment complies
in all respects with the provisions of that certain Warrant Agreement dated                     ,
         . 
  

	
	Dated:

  

			
		
	Print Name:	 	  

		
	Signature:	 	  

		
	Witness:	 	  

 NOTICE: The signature on this assignment must correspond with the name as written upon the face of this
Warrant in every particular, without alteration or enlargement or any change whatsoever. 
  

 11Common Stock Purchase Warrant

 Exhibit 4.2 (d) 
 THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT. 
  

					
	 Warrant No.     
	  	Date of Issuance:	  	April 26, 2007

 TULLY’S COFFEE CORPORATION 
 STOCK PURCHASE WARRANT 
 This Warrant is issued to Benaroya
Capital Company, L.L.C. (“Holder”) by Tully’s Coffee Corporation, a Washington corporation (the “Company”), for good and valuable consideration, in connection with Holder’s loan to the
Company in the amount of $4,000,000 pursuant to the terms of that certain Secured Promissory Note (the “Note”) of even date herewith. The number and class of shares of the Company’s capital stock for which this Warrant
is to be exercisable, and the exercise price, is as set forth herein. 
 1. Exercisability. This Warrant shall first become
exercisable on the earliest to occur of the following: 
 (a) immediately prior to the completion of the Company’s first underwritten
public offering of common stock; 
 (b) immediately prior to a Change of Control Event (as defined in Section 4(c) hereof); or

 (c) one year from the Date of Issuance. 
 2. Right to Purchase Shares. Subject to the terms and conditions set forth herein, the holder of this Warrant or its registered assigns (the “Registered Holder”) is entitled to
purchase from the Company, at any time following the date upon which it first becomes exercisable pursuant to Section 1 above and on or before the Expiration Date (as defined in Section 8 below), 99,291 shares of common stock of the
Company (the “Warrant Stock”) at an exercise price per share of $0.33 (the “Exercise Price”). 
 3. Exercise. 
 (a) Manner of Exercise. This Warrant may be exercised by the Registered Holder, in whole
or in part, by surrendering this Warrant, with the purchase form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered Holder’s 

 
duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in
full of the Exercise Price payable in respect of the number of shares of Warrant Stock purchased upon such exercise. The Exercise Price may be paid by cash, check or wire transfer of immediately available funds, or by the surrender of promissory
notes or other instruments representing indebtedness of the Company to the Registered Holder. 
 (b) Effective Time of
Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 3(a) above. At
such time, the person or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such exercise as provided in Section 3(d) below shall be deemed to have become the holder or holders of record of the Warrant
Stock represented by such certificates. 
 (c) Net Issue Exercise. 
 (i) In lieu of exercising this Warrant in the manner provided above in Section 3(a), the Registered Holder may elect to receive shares equal to the
value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such net issue exercise election in the form appended hereto as Exhibit B in which event
the Company shall issue to such Holder a number of shares of Warrant Stock computed using the following formula: 
  

			
	X =	  	Y (A - B)
		  	      A

  

					
	Where	  	X =	  	The number of shares of Warrant Stock to be issued to the Registered Holder.
			
		  	Y =	  	The number of shares of Warrant Stock purchasable under this Warrant or the portion thereof being cancelled (at the date of such calculation).
			
		  	A =	  	The fair market value of one share of Warrant Stock (at the date of such calculation).
			
		  	B =	  	The Exercise Price (as adjusted to the date of such calculation).

 (ii) For purposes of this Section 3(c), the fair market value of Warrant Stock on the date
of calculation shall mean with respect to each share of Warrant Stock: 
 (A) if the Warrant Stock is traded on an exchange or is quoted on
the Nasdaq Stock Market, the average of the closing or last sale price of the Warrant Stock reported for the five business days immediately preceding the date of net issuance exercise; 
 (B) if the Warrant Stock is not traded on an exchange or quoted on the Nasdaq Stock Market, but is traded in the over-the-counter market, the mean of
the closing bid and asked prices of the Warrant Stock reported for the five business days immediately preceding the date of net issuance exercise; 
  

 -2- 

 (C) if (A) or (B) is not applicable, the fair market value of Warrant Stock shall be at the
highest price per share which the Company could obtain on the date of calculation from a willing buyer (not a current employee or director) for shares of common stock sold by the Company, from authorized but unissued shares, as determined in good
faith by the Board of Directors, unless the Company is at such time subject to an acquisition as described in Section 8 below, in which case the fair market value of a share of Warrant Stock shall be deemed to be the value received by the
holders of such stock had this Warrant been exercised immediately prior to such acquisition. 
 (d) Delivery to Holder. As soon
as practicable after the exercise of this Warrant in whole or in part, and in any event within ten (10) days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as such
Holder (upon payment by such Holder of any applicable transfer taxes) shall direct: 
 (i) a certificate or certificates for the number of
shares of Warrant Stock to which such Registered Holder shall be entitled, and 
 (ii) in case such exercise is in part only, a new warrant
or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect to any adjustment therein) to the number of such shares called for on the
face of this Warrant minus the number of such shares purchased by the Registered Holder upon such exercise as provided in Section 3(a) or 3(c) above. 
 4. Adjustments. 
 (a) Stock Splits and Dividends. If the Warrant Stock
shall be subdivided into a greater number of shares or a dividend in the applicable Warrant Stock shall be paid in respect of such Warrant Stock, the Exercise Price in effect immediately prior to such subdivision or at the record date of such
dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced. If outstanding shares of the applicable Warrant Stock shall be combined into a smaller number
of shares, the Exercise Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased. When any adjustment is required to be made in the Exercise Price, the
number of shares of Warrant Stock purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to
such adjustment, multiplied by the Exercise Price in effect immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately after such adjustment. 
 (b) Reclassification, Etc. In case there occurs any reclassification or change of the outstanding securities of the Company or of any
reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such
case the Registered Holder, upon the exercise hereof at any time after the consummation of such reclassification, change, or reorganization shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the
exercise hereof prior to such consummation, the 

  

 -3- 

 
stock or other securities or property to which such Holder would have been entitled upon such consummation if such Holder had exercised this Warrant
immediately prior thereto, all subject to further adjustment pursuant to the provisions of this Section 4. 
 (c) Change of
Control. If at any time after the date of this Warrant, there is a sale, conveyance or disposal of all or substantially all of the Company’s property or business or the Company’s merger into or consolidation with any other
corporation or any other transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Company is disposed of (other than a merger effected exclusively for the purpose of changing the domicile
of the Company) (the “Change of Control Event”), then at the Registered Holder’s option, this Warrant may be exercised immediately prior to such Change of Control Event. This Warrant shall terminate upon the closing of a
Change of Control Event. 
 (d) Adjustment Certificate. When any adjustment is required to be made in the Warrant Stock or the
Exercise Price pursuant to this Section 4, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Exercise Price after such
adjustment and (iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment. 
 (e) Acknowledgement. In order to avoid doubt, it is acknowledged that the holder of this Warrant shall be entitled to the benefit of all adjustments in the number of shares of Common Stock of the Company
issuable upon conversion of the applicable preferred stock of the Company which occur prior to the exercise of this Warrant, including without limitation, any increase in the number of shares of Common Stock issuable upon conversion as a result of a
dilutive issuance of capital stock. 
 5. Transfers. 
 (a) Unregistered Security. Each holder of this Warrant acknowledges that this Warrant and the Warrant Stock (together, the
“Securities”) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of
any of the Securities in the absence of (i) an effective registration statement under the Securities Act as to such Securities and registration or qualification of such Securities under any applicable U.S. federal or state securities law then
in effect, or (ii) if requested by the Company after a holder of this Warrant has provided written notice to the Company of a proposed sale, pledge, distribution, offer for sale, transfer or other disposition, an opinion of counsel,
satisfactory to the Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Stock issued upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect.

 (b) Transferability. Subject to the provisions of Section 5(a) hereof, this Warrant and all rights hereunder are
transferable upon surrender of the Warrant with a properly executed assignment (in the form of Exhibit C hereto) at the principal office of the Company,  
  

 -4- 

 provided, however, that this Warrant may not be transferred unless the Company consents to the transfer in
writing, except for transfers to affiliates. 
  
 (c) Warrant
Register. The Company will maintain a register containing the names and addresses of the Registered Holders of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of
this Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for
all purposes, notwithstanding any notice to the contrary. Any Registered Holder may change such Registered Holder’s address as shown on the warrant register by written notice to the Company requesting such change. 
 6. No Impairment. The Company will not, by amendment of its charter or through reorganization, consolidation, merger, dissolution, sale of
assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment. 
 7. Representations
and Warranties of Holder. The Registered Holder hereby represents and warrants to the Company as follows: 
 (a) Purchase
Entirely for Own Account. The Registered Holder acknowledges that this Warrant is given to the Registered Holder in reliance upon the Registered Holder’s representation to the Company, which by its acceptance of this Warrant the
Registered Holder hereby confirms, that the Securities being acquired by the Registered Holder are being acquired for investment for the Registered Holder’s own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Registered Holder has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Warrant, the Registered Holder further represents that the
Registered Holder does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities. The Registered
Holder represents that it has full power and authority to enter into this Warrant. The Registered Holder has not been formed for the specific purpose of acquiring any of the Securities. 
 (b) Disclosure of Information. The Registered Holder has had an opportunity to discuss the Company’s business, management, financial
affairs and the terms and conditions of the offering of the Securities with the Company’s management and has had an opportunity to review the Company’s facilities and its most recent financial statements. The Registered Holder understands
that such discussions, as well as the written information issued by the Company, were intended to describe the aspects of the Company’s business which it believes to be material. 
 (c) Restricted Securities. The Registered Holder understands that the Securities have not been, and will not be, registered under the
Securities Act, by reason of a 

  

 -5- 

 
specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment
intent and the accuracy of the Registered Holder’s representations as expressed herein. The Registered Holder understands that the Securities are “restricted securities” under applicable U.S. federal and state securities laws and
that, pursuant to these laws, the Registered Holder must hold the Securities indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and
qualification requirements is available. The Registered Holder acknowledges that the Company has no obligation to register or qualify the Securities for resale. The Registered Holder further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which are outside of the
Registered Holder’s control, and which the Company is under no obligation and may not be able to satisfy. 
 (d) No Public
Market. The Registered Holder understands that no public market now exists for any of the securities issued by the Company, that the Company has made no assurances that a public market will ever exist for the Securities. 
 (e) Legends. The Registered Holder understands that the Securities, and any securities issued in respect of or exchange for the Securities,
may bear one or all of the following legends: 
 (i) “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER
SUCH STATUTE OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.” 
 (ii) Any legend
required by the Blue Sky laws of any state to the extent such laws are applicable to the shares represented by the certificate so legended. 
 (f) Accredited Investor. The Registered Holder is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. 
 8. Termination. This Warrant (and the right to purchase securities upon exercise hereof) shall terminate upon the earliest to occur of the
following (the “Expiration Date”): (a) April     , 2012 or (b) the closing of a Change of Control Event. 
 9. Notices of Certain Transactions. In case: 
 (a) the Company shall take a record of the
holders of its preferred stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right 

  

 -6- 

 
to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, to subscribe for or purchase any shares
of stock of any class or any other securities, or to receive any other right, or 
 (b) of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or merger of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving
entity), or any transfer of all or substantially all of the assets of the Company, or 
 (c) of the voluntary or involuntary dissolution,
liquidation or winding-up of the Company, 
 (d) of any redemption of the applicable preferred stock or mandatory conversion of the
applicable preferred stock into common stock of the Company, or 
 (e) the filing of a registration statement by the Company with the
Securities and Exchange Commission in connection with a underwritten public offering, 
 then, and in each such case, the Company will mail or cause to be
mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such
dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption, conversion or registration statement is to take
place, and the time, if any is to be fixed, as of which the holders of record of preferred stock (or such other stock or securities at the time deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation, winding-up, redemption or conversion) are to be determined. Such notice shall be mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice, except that for purposes of
(e) above, such notice shall be mailed at least ten (10) days prior to the filing of such registration statement. 
 10.
Reservation of Stock. The Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property, as from time
to time shall be issuable upon the exercise of this Warrant. 
 11. Exchange of Warrants. Upon the surrender by the Registered
Holder of any Warrant or Warrants, properly endorsed, to the Company at the principal office of the Company, the Company will issue and deliver to or upon the order of such Holder, at the Company’s expense, a new Warrant or Warrants of like
tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of
preferred stock called for on the face or faces of the Warrant or Warrants so surrendered. 
  

 -7- 

 12. Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company,
or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. 
 13. Mailing of Notices. Any notice required or permitted pursuant to this Warrant shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or sent by courier, overnight
delivery service or confirmed facsimile, or forty-eight (48) hours after being deposited in the regular mail, as certified or registered mail (airmail if sent internationally), with postage prepaid, addressed (a) if to the Registered
Holder, to the address of the Registered Holder most recently furnished in writing to the Company and (b) if to the Company, to the address set forth below or subsequently modified by written notice to the Registered Holder. 
 14. No Rights as Shareholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any
rights by virtue hereof as a shareholder of the Company. 
 15. No Fractional Shares. No fractional shares of preferred stock
will be issued in connection with any exercise hereunder. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of the
applicable preferred stock on the date of exercise, as determined in good faith by the Company’s Board of Directors. 
 16.
Amendment or Waiver. Any term of this Warrant may be amended or waived only by an instrument in writing signed by the party against which enforcement of the amendment or waiver is sought. 
 17. Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any
provision of this Warrant. 
 18. Governing Law. This Warrant shall be governed, construed and interpreted in accordance with
the laws of the State of Washington, without giving effect to principles of conflicts of law. 
 19. “Market Stand-Off”
Agreement. The Registered Holder hereby agrees that, during the period of duration (up to, but not exceeding, 180 days) specified by the Company and an underwriter of Common Stock or other securities of the Company, following the effective
date of a registration statement of the Company filed under the Securities Act, it shall not, to the extent requested by the Company or such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation,
any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) this Warrant and the Warrant Stock held by it at any time during such period except common stock included in
such registration; provided, however, that: 
  

 -8- 

 (a) such agreement shall be applicable only to the first such registration statement of the Company which
covers Common Stock (or other securities) to be sold on its behalf to the public in an underwritten offering; and 
 (b) all of the Company
directors, officers and holders of at least 5.0% of the Company’s equity securities are subject to substantially the same lockup restrictions as contained in this Section 19. 
 In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Warrant Stock (and the shares or
securities of every other person subject to the foregoing restriction) until the end of such period, and the Registered Holder agrees that, if so requested, such Holder will execute an agreement in the form provided by the underwriter containing
terms which are essentially consistent with the provisions of this Section 19. 
 [Signature page follows.] 
  

 -9- 

 SIGNATURE PAGE TO 
 STOCK PURCHASE WARRANT 
  

			
	COMPANY:
	
	TULLY’S COFFEE CORPORATION
		
	By:	 	  

		 	John K. Buller, President and CEO
		
	Address:	 	3100 Airport Way South
		 	Seattle, WA 98134
		
	Facsimile:	 	206/ 233-2075

  

			
	AGREED TO AND ACCEPTED:
		
	By:	 	  

		
	Name:	 	  

		 	(print)
		
	Title:	 	  

	
	Address:
	
	Facsimile:

 EXHIBIT A 
 PURCHASE FORM 

					
	 To:
	  	Tully’s Coffee Corporation	  	Dated:                    

 The undersigned, pursuant to the provisions set forth in the attached Warrant No.
            , hereby irrevocably elects to purchase             shares of common stock and herewith makes payment
of $            , representing the full purchase price for such shares at the price per share provided for in such Warrant. 
 The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 7 of the Warrant and the covenants
contained in Section 19 of the Warrant, and by its signature below hereby makes such representations, warranties and covenants to the Company. 
  

			
	Signature:	 	  

		
	Name (print):	 	  

		
	Title (if applic.)	 	  

		
	Company (if applic.):	 	  

 EXHIBIT B 
 NOTICE OF NET ISSUANCE EXERCISE 
  

					
	 To:
	  	Tully’s Coffee Corporation	  	Dated:                    

 The undersigned, pursuant to the provisions set forth in the attached Warrant No.
            , hereby irrevocably elects to convert the attached Warrant into such number of shares of common stock as is determined pursuant to Section 3(c) of the Warrant.

 The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 7 of the Warrant and the
covenants contained in Section 19 of the Warrant, and by its signature below hereby makes such representations, warranties and covenants to the Company. 
  

			
	Signature:	 	  

		
	Name (print):	 	  

		
	Title (if applic.)	 	  

		
	Company (if applic.):	 	  

  

 EXHIBIT C 
 ASSIGNMENT FORM 
 FOR VALUE RECEIVED,
                                         
                        hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with
respect to the number of shares of preferred stock covered thereby set forth below, unto: 
  

					
	 Name of Assignee
	  	Address/Facsimile Number	  	No. of Shares

  

					
	Dated:                        	 	Signature:	  	  

			
		 		  	  

			
		 	Witness:

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