Document:

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                                                                   EXHIBIT 10.23

                  SECOND AMENDED AND RESTATED PUT OPTION LETTER

June 29, 2004

Arabica Funding, Inc.
c/o Global Securitization Services, LLC
445 Broad Hollow Road
Suite 239
Melville, NY 11747

             Re:      Second Amended and Restated Lease and License Financing
                      and Purchase Option Agreement

Dear Sirs:

      We refer to the Second Amended and Restated Lease and License Financing
and Purchase Option Agreement, dated as of the date hereof, between you and us
(the "AGREEMENT"). Terms defined in the Agreement are, unless otherwise
specified, used herein with the same meaning. This Second Amended and Restated
Put Option Letter amends and restates the Amended and Restated Put Option
Letter, dated as of April 25, 2001, issued by us to you. In consideration of
your entering into the Agreement and the other Lease/Purchase Documents and,
among other things, providing the favorable lease and license financing terms
therein provided and undertaking the transactions contemplated by the Agreement,
we hereby grant to you the options described below:

      SECTION 1. PUT UPON DEFAULT.

      (a) We hereby grant to you an option (the "DEFAULT OPTION") to require us
to purchase from you all (but not less than all) of the Assets then subject to
the Agreement, upon the delivery to us of a written notice from you which
declares that an Event of Default has occurred under Section 23 of the Agreement
(the "DEFAULT DECLARATION") for a consideration equal to the Exercise Price as
of the Exercise Price Payment Date, provided, however, that such option shall be
deemed to have been exercised immediately prior to the occurrence of an Event of
Default under Section 23(f)(i) of the Agreement and immediately prior to the
commencement of any case, proceeding or other action of the type referenced in
Section 23(f)(ii) of the Agreement. The "EXERCISE PRICE" of the Assets means, as
of any Exercise Price Payment Date, the sum of (i) the aggregate unpaid
Acquisition Cost of the Assets, plus (ii) any and all accrued and unpaid Rent to
the Exercise Price Payment Date, plus (iii) $10. The "EXERCISE PRICE PAYMENT
DATE" means the date for payment of the Exercise Price, as specified in the
notice referred to below in this subsection, provided, however, that in the
event of a deemed exercise of the option, as provided above, the Exercise Price
Payment Date shall be the date on which the option is deemed to have been
exercised. The Default Option may not be exercised if an Event of Loss has
occurred. The Default Option must be exercised by notice in substantially the
form attached hereto as Schedule 1 (the "DEFAULT OPTION NOTICE"), signed by you
or on your behalf and served simultaneously with or during a period of thirty
(30) days following the delivery of the Default Declaration.

                     Second Amended and Restated Put Option

<PAGE>

      (b) On the Exercise Price Payment Date: (i) possession and title to the
Assets shall vest in us on an "as-is and where-is" basis, irrespective of
whether the Exercise Price has been paid by us to you, free from all Liens
(other than Liens created by us or, until payment of the Exercise Price and all
other amounts payable under the Lease/Purchase Documents, the Liens of the
Company Security Documents and other Liens referenced in Sections 8 and 33 of
the Agreement), but without any warranty by or recourse to you with regard to
the condition or fitness of the Assets or otherwise in any respect, provided
that if we fail to pay the Exercise Price in full you may retain possession of
the Assets and may exercise remedies under the Company Security Documents and
other Lease/Purchase Documents and (ii) the Exercise Price shall become due and
immediately payable by us to you. Any passing of title hereunder shall be
without prejudice to the rights of the parties under the Agreement or under this
letter.

      SECTION 2. PUT UPON ILLEGALITY.

      (a) This Section 2 shall apply in the event that the effects of any law,
order, regulation or official directive cannot be avoided pursuant to the
provisions of Section 16 of the Agreement (an "UNAVOIDABLE ILLEGALITY"). In such
circumstances, we hereby grant you an option (the "ILLEGALITY UNWIND Option") to
require us to purchase from you in the event of an Unavoidable Illegality all
(but not less than all) of the Assets, such option to be exercised by your
delivery to us of a written notice in substantially the form attached hereto as
Schedule 1 (the "ILLEGALITY UNWIND OPTION NOTICE"). Then, and in each such case,
we shall purchase all of the Assets by paying (i) the unpaid Acquisition Cost
upon demand, plus (ii) any and all accrued and unpaid Rent, plus (iii) $10.00
(the "ILLEGALITY REPURCHASE PRICE").

      (b) Upon the exercise of the Illegality Unwind Option and payment of the
Illegality Repurchase Price, property and title to the Assets shall vest in and
be accepted by us on an "as-is and where-is" basis and shall be deemed to have
passed on such delivery free from all Liens created by you (other than Liens
created by us or, until payment of the Exercise Price and all other amounts
payable under the Lease/Purchase Documents, the Liens of the Company Security
Documents and other Liens referenced in Sections 8 and 33 of the Agreement), but
without any warranty by or recourse to you with regard to the condition or
fitness of the Assets or otherwise in any respect. Any passing of title
hereunder shall be without prejudice to the rights of the parties under the
Agreement or under this letter.

      SECTION 3. PUT UPON CAPITAL EVENT.

      (a) We hereby grant to you the option (the "CAPITAL EVENT OPTION") to
require us to purchase from you upon the occurrence of a Capital Event all or a
pro rata portion of all of the Assets, such option to be exercised by delivery
to us of a written notice from you to us in substantially the form attached
hereto as Schedule 1, signed by you or on your behalf, for a consideration equal
to the Capital Event Exercise Price as of the Capital Event Exercise Price
Payment Date. If a pro rata portion of all of the Assets is to be purchased
pursuant to an exercise of the Capital Event Option, such pro rata portion shall
be equal to the pro rata portion that the unpaid Capital Event Asset Acquisition
Cost (as defined below) represents of the aggregate unpaid Acquisition Cost.

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      "CAPITAL EVENT" means the unpaid Acquisition Cost exceeding the Reference
Amount as a result of a reduction, if any, of the Reference Amount pursuant to
clause (ii)(x) of the definition of "Reference Amount".

      "CAPITAL EVENT EXERCISE PRICE" means, as of any Capital Event Exercise
Price Payment Date, the sum of (i) the unpaid Capital Event Asset Acquisition
Cost, plus (ii) any and all accrued and unpaid Rent in respect of the unpaid
Capital Event Asset Acquisition Cost to the Capital Event Exercise Price Payment
Date, plus (iii) $10.

      "UNPAID CAPITAL EVENT ASSET ACQUISITION COST" means an amount equal to the
excess of the unpaid Acquisition Cost over the Reference Amount as determined on
the Capital Event Exercise Price Payment Date.

      "CAPITAL EVENT EXERCISE PRICE PAYMENT DATE" means the date for payment of
the Exercise Price, as specified in the notice referred to above in this
subsection.

      (b) The Capital Event Option may not be exercised if an Event of Loss has
occurred.

      (c) On the Capital Event Exercise Price Payment Date: (i) possession and
title to all or a pro rata portion of the Assets, as the case may be, shall vest
in us on an "as-is and where-is" basis, irrespective of whether the Capital
Event Exercise Price has been paid by us to you, free from all Liens (other than
Liens created by us or, until payment of the Capital Event Exercise Price and
all other amounts payable under the Lease/Purchase Documents, the Liens of the
Security Documents and other Liens referenced in Sections 8 and 33 of the
Agreement), but without any warranty by or recourse to you with regard to the
condition or fitness of the Assets or otherwise in any respect, provided that if
we fail to pay the Capital Event Exercise Price in full you may retain
possession of the Assets and may exercise remedies under the Company Security
Documents and other Lease/Purchase Documents and (ii) the Capital Event Exercise
Price shall become due and immediately payable by us to you. Any passing of
title hereunder shall be without prejudice to the rights of the parties under
the Agreement or under this letter.

      SECTION 4. PUT UPON ASSET SALE EVENT.

      (a) We hereby grant to you the option (the "ASSET SALE EVENT OPTION") to
require us to purchase from you upon the occurrence of an Asset Sale Event all
or a pro rata portion of all of the Assets, such option to be exercised by
delivery to us of a written notice from you to us in substantially the form
attached hereto as Schedule 1, signed by you or on your behalf, for a
consideration equal to the Asset Sale Event Exercise Price as of the Asset Sale
Event Exercise Price Payment Date. If a pro rata portion of all of the Assets is
to be purchased pursuant to an exercise of the Asset Sale Event Option, such pro
rata portion shall be equal to the pro rata portion that the unpaid Asset Sale
Event Asset Acquisition Cost (as defined below) represents of the aggregate
unpaid Acquisition Cost.

      "ASSET SALE EVENT" means any date on which the unpaid Acquisition Cost
exceeds the Reference Amount as a result of a reduction, if any, of the
Reference Amount pursuant to clause (ii)(y) of the definition of "Reference
Amount".

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      "ASSET SALE EVENT EXERCISE PRICE" means, as of any Asset Sale Event
Exercise Price Payment Date, the sum of (i) the unpaid Asset Sale Event Asset
Acquisition Cost, plus (ii) any and all accrued and unpaid Rent in respect of
the unpaid Asset Sale Event Asset Acquisition Cost to the Asset Sale Event
Exercise Price Payment Date, plus (iii) $10.

      "UNPAID ASSET SALE EVENT ASSET ACQUISITION COST" means an amount equal to
the excess of the unpaid Acquisition Cost over the Reference Amount as
determined on the Asset Sale Event Exercise Price Payment Date.

      "ASSET SALE EVENT EXERCISE PRICE PAYMENT DATE" means the date for payment
of the Exercise Price, as specified in the notice referred to above in this
subsection.

      (b) The Asset Sale Event Option may not be exercised if an Event of Loss
has occurred.

      (c) On the Asset Sale Event Exercise Price Payment Date: (i) possession
and title to all or a pro rata portion of all of the Assets, as the case may be,
shall vest in us on an "as-is and where-is" basis, irrespective of whether the
Asset Sale Event Exercise Price has been paid by us to you, free from all Liens
(other than Liens created by us or, until payment of the Asset Sale Event
Exercise Price and all other amounts payable under the Lease/Purchase Documents,
the Liens of the Security Documents and other Liens referenced in Sections 8 and
33 of the Agreement), but without any warranty by or recourse to you with regard
to the condition or fitness of the Assets or otherwise in any respect, provided
that if we fail to pay the Asset Sale Event Exercise Price in full you may
retain possession of the Assets and may exercise remedies under the Company
Security Documents and other Lease/Purchase Documents and (ii) the Asset Sale
Event Exercise Price shall become due and immediately payable by us to you. Any
passing of title hereunder shall be without prejudice to the rights of the
parties under the Agreement or under this letter.

      SECTION 5. PUT UPON RECOVERY EVENT.

      (a) We hereby grant to you the option (the "RECOVERY EVENT OPTION") to
require us to purchase from you upon the occurrence of a Recovery Option Event
all or a portion of the Assets, such option to be exercised by delivery to us of
a written notice from you to us in substantially the form attached hereto as
Schedule 1, signed by you or on your behalf, for a consideration equal to the
Recovery Event Exercise Price as of the Recovery Event Exercise Price Payment
Date. If a pro rata portion of all of the Assets is to be purchased pursuant to
an exercise of the Recovery Event Option, such pro rata portion shall be equal
to the pro rata portion that the unpaid Recovery Event Asset Acquisition Cost
(as defined below) represents of the aggregate unpaid Acquisition Cost.

      "RECOVERY OPTION EVENT" means any date on which any member of the
Restricted Group shall receive Net Cash Proceeds from a Recovery Event and no
Reinvestment Notice shall have been delivered in respect thereof.

      "RECOVERY EVENT EXERCISE PRICE" means, as of any Recovery Event Exercise
Price Payment Date, the sum of (i) the unpaid Recovery Event Asset Acquisition
Cost, plus (ii)

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any and all accrued and unpaid Rent in respect of the unpaid Recovery Event
Asset Acquisition Cost to the Recovery Event Exercise Price Payment Date, plus
(iii) $10.

      "RECOVERY EVENT EXERCISE PRICE PAYMENT DATE" means the date for payment of
the Exercise Price, as specified in the notice referred to above in this
subsection.

      "UNPAID RECOVERY EVENT ASSET ACQUISITION COST" means an amount equal to
50% of the Net Cash Proceeds from the relevant Recovery Event received by any
member of the Restricted Group.

      (b) The Recovery Event Option may not be exercised if an Event of Loss has
occurred.

      (c) On the Recovery Event Exercise Price Payment Date: (i) possession and
title to all or a pro rata portion of all of the Assets, as the case may be,
shall vest in us on an "as-is and where-is" basis, irrespective of whether the
Recovery Event Exercise Price has been paid by us to you, free from all Liens
(other than Liens created by us or, until payment of the Recovery Event Exercise
Price and all other amounts payable under the Lease/Purchase Documents, the
Liens of the Security Documents and other Liens referenced in Sections 8 and 33
of the Agreement), but without any warranty by or recourse to you with regard to
the condition or fitness of the Assets or otherwise in any respect, provided
that if we fail to pay the Recovery Event Exercise Price in full you may retain
possession of the Assets and may exercise remedies under the Company Security
Documents and other Lease/Purchase Documents and (ii) the Recovery Event
Exercise Price shall become due and immediately payable by us to you. Any
passing of title hereunder shall be without prejudice to the rights of the
parties under the Agreement or under this letter.

      SECTION 6. PUT UPON REINVESTMENT OPTION EVENT.

      (a) We hereby grant to you the option (the "REINVESTMENT EVENT OPTION") to
require us to purchase from you upon the occurrence of a Reinvestment Option
Event all or a pro-rata portion of the Assets, such option to be exercised by
delivery to us of a written notice from you to us in substantially the form
attached hereto as Schedule 1, signed by you or on your behalf, for a
consideration equal to the Reinvestment Event Exercise Price as of the
Reinvestment Event Exercise Price Payment Date. If a pro rata portion of all of
the Assets is to be purchased pursuant to an exercise of the Reinvestment Event
Option, such pro rata portion shall be equal to the pro rata portion that the
unpaid Reinvestment Event Asset Acquisition Cost (as defined below) represents
of the aggregate unpaid Acquisition Cost.

      "REINVESTMENT OPTION EVENT" means the earlier of (i) the date occurring
270 days after the relevant Reinvestment Event and (ii) the date on which the
Company shall have determined not to, or shall have otherwise ceased to, acquire
or repair assets useful in the Company's business with all or any portion of the
relevant Reinvestment Deferred Amount.

      "REINVESTMENT EVENT EXERCISE PRICE" means, as of any Reinvestment Event
Exercise Price Payment Date, the sum of (i) the unpaid Reinvestment Event Asset
Acquisition Cost, plus (ii) any and all accrued and unpaid Rent in respect of
the unpaid Reinvestment Event Asset Acquisition Cost to the Reinvestment
Exercise Price Payment Date, plus (iii) $10.

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      "REINVESTMENT EVENT EXERCISE PRICE PAYMENT DATE" means the date for
payment of the Exercise Price, as specified in the notice referred to above in
this subsection.

      "UNPAID REINVESTMENT EVENT ASSET ACQUISITION COST" means an amount equal
to (x) the Reinvestment Deferred Amount relating to the relevant Reinvestment
Event minus (y) any amount expended prior to the relevant Reinvestment Event
Exercise Price Payment Date to acquire or repair assets useful in the Company's
business.

      (b) The Reinvestment Event Option may not be exercised if an Event of Loss
has occurred.

      (c) On the Reinvestment Event Exercise Price Payment Date: (i) possession
and title to all or a pro rata portion of all of the Assets, as the case may be,
shall vest in us on an "as-is and where-is" basis, irrespective of whether the
Reinvestment Event Exercise Price has been paid by us to you, free from all
Liens (other than Liens created by us or, until payment of the Reinvestment
Event Exercise Price and all other amounts payable under the Lease/Purchase
Documents, the Liens of the Security Documents and other Liens referenced in
Sections 8 and 33 of the Agreement), but without any warranty by or recourse to
you with regard to the condition or fitness of the Assets or otherwise in any
respect, provided that if we fail to pay the Reinvestment Event Exercise Price
in full you may retain possession of the Assets and may exercise remedies under
the Company Security Documents and other Lease/Purchase Documents and (ii) the
Reinvestment Event Exercise Price shall become due and immediately payable by us
to you. Any passing of title hereunder shall be without prejudice to the rights
of the parties under the Agreement or under this letter.

      SECTION 7. PUT WITHIN FIVE BUSINESS DAYS OF LEASE OF NEW ASSETS.

      (a) We hereby grant to you the option (the "NEW ASSET OPTION") to require
us to purchase from you all or a pro-rata portion of all of any new Assets made
subject to the Agreement on a particular date (the "REFERENCE DATE"), which
option may only be exercised within 5 Business Days of such Reference Date by
delivery to us of a written notice from you to us in substantially the form
attached hereto as Schedule 1, signed by you or on your behalf, for a
consideration equal to the New Exercise Price as of the New Asset Exercise Price
Payment Date. If a pro rata portion of all of such new Assets is to be purchased
pursuant to an exercise of the New Asset Option, such pro rata portion shall be
equal to the pro rata portion that the unpaid New Asset Acquisition Cost (as
defined below) represents of the aggregate unpaid Acquisition Cost for all of
such new Assets.

      "NEW ASSET EXERCISE PRICE" means, as of any New Asset Exercise Price
Payment Date, the sum of (i) the aggregate unpaid New Asset Acquisition Cost,
plus (ii) any and all accrued and unpaid Rent in respect of the unpaid New Asset
Acquisition Cost to the New Asset Exercise Price Payment Date, plus (iii) $10.

      "NEW ASSET EXERCISE PRICE PAYMENT DATE" means the date for payment of the
Exercise Price, as specified in the notice referred to above in this subsection.

      "UNPAID NEW ASSET ACQUISITION COST" means the unpaid Acquisition Cost
attributable to the new Assets in respect of which the New Asset Option has been
exercised.

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      (b) The New Asset Option may not be exercised if an Event of Loss has
occurred.

      (c) On the New Asset Exercise Price Payment Date: (i) possession and title
to all or a pro rata portion of all of the Assets, as the case may be, shall
vest in us on an "as-is and where-is" basis, irrespective of whether the New
Asset Exercise Price has been paid by us to you, free from all Liens (other than
Liens created by us or, until payment of the New Asset Exercise Price and all
other amounts payable under the Lease/Purchase Documents, the Liens of the
Security Documents and other Liens referenced in Sections 8 and 33 of the
Agreement), but without any warranty by or recourse to you with regard to the
condition or fitness of the Assets or otherwise in any respect, provided that if
we fail to pay the New Asset Exercise Price in full you may retain possession of
the Assets and may exercise remedies under the Company Security Documents and
other Lease/Purchase Documents and (ii) the New Asset Exercise Price shall
become due and immediately payable by us to you. Any passing of title hereunder
shall be without prejudice to the rights of the parties under the Agreement or
under this letter.

      SECTION 8. MISCELLANEOUS. We hereby undertake to pay to you, upon demand,
to the extent permitted by law, a late fee on any amount payable under this
letter that is not paid when due, for any period for which any of the same is
overdue (without regard to any grace period) at a rate per annum equal to the
Late Payment Rate. This letter shall be binding upon, and inure to and for the
benefit of, you and us and our respective successors and assigns. You and we
agree that this letter may not be assigned in whole or in part without the prior
written consent of the other party hereto. You and we agree that any assignment
of the Agreement by any party thereto must include an assignment and assumption
of this letter. Each communication to be made under this letter shall be made in
writing in accordance with the notice provisions of the Agreement. We hereby
covenant and agree to complete and convey an acknowledgment in substantially the
form set out in Schedule 2 hereto to you (i) immediately, in the case of our
receipt of an Illegality Unwind Option Notice, and (ii) on the relevant exercise
price payment date, in the case of our receipt of any of the other option
exercise notices hereunder. The options granted by this letter are irrevocable
for so long as any sums remain outstanding under the Agreement. This letter
shall be governed by, and construed in accordance with, the laws of the State of
New York. The parties agree that the last sentence of Section 33 of the
Agreement (relating to submission to jurisdiction) and the provisions of Section
34 of the Agreement (relating to waiver of jury trial) are incorporated by
reference into this letter with the same force and effect as if such provisions
were set forth herein in full.

                             SIGNATURE PAGE FOLLOWS

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                                      CARIBOU COFFEE COMPANY, INC.

                                      By: /s/ George E. Mileusnic
                                          ___________________________________
                                          Name:  George E. Mileusnic
                                          Title: Chief Financial Officer<PAGE>

                                                                   EXHIBIT 10.24

                SECOND AMENDED AND RESTATED TAX MATTERS AGREEMENT

      THIS SECOND AMENDED AND RESTATED TAX MATTERS AGREEMENT, dated as of June
29, 2004 (as supplemented, amended, modified, restated or replaced from time to
time this "AGREEMENT"), is made between ARABICA FUNDING, INC., a Delaware
corporation ("ARABICA") and CARIBOU COFFEE COMPANY, INC. a Minnesota corporation
(the "COMPANY").

                             PRELIMINARY STATEMENTS

      A. On December 27, 2000, the Company sold certain assets to Arabica
pursuant to that certain Asset Purchase Agreement dated as of such date between
the Company and Arabica, as amended and restated by that certain Amended and
Restated Asset Purchase Agreement, dated as of April 25, 2001 (the "ORIGINAL
ASSET PURCHASE AGREEMENT").

      B. Upon the completion of such purchase, Arabica and the Company entered
into (i) a Lease and License Financing and Purchase Option Agreement, dated as
of December 27, 2000, as amended and restated by that certain Amended and
Restated Lease and License Financing and Purchase Option Agreement, dated as of
April 25, 2001, pursuant to which Arabica leased such assets to the Company,
(the "ORIGINAL LEASE") (ii) a Supplemental Agreement, dated as of December 27,
2000, as amended and restated by that certain Amended and Restated Supplemental
Agreement, dated as of April 25, 2001, pursuant to which the Company has agreed
to execute certain tasks related to the Equipment (the "ORIGINAL SUPPLEMENTAL
AGREEMENT"), and (iii) a Tax Matters Agreement, dated as of December 27, 2000,
as amended and restated by that certain Amended and Restated Tax Matters
Agreement dated April 25, 2001 (the "ORIGINAL AGREEMENT"), to address certain
tax issues. In connection therewith, the Company issued to Arabica a Put Option
Letter, dated December 27, 2000, as amended and restated by that certain Amended
and Restated Put Option Letter (the "ORIGINAL PUT OPTION LETTER") and Arabica
issued to the Company a Call Option Letter (the "ORIGINAL CALL OPTION LETTER"),
dated December 27, 2000, as amended and restated by that certain Amended and
Restated Call Option Letter.

      C. Arabica and the Company have entered into that certain Second Amended
and Restated Asset Purchase Agreement, dated the date hereof (the "AMENDED ASSET
PURCHASE AGREEMENT"), pursuant to which the Company may from time to time sell
certain assets to Arabica.

      D. Arabica and the Company have entered into that certain Second Amended
and Restated Lease and License Financing and Purchase Option Agreement, dated
the date hereof (the "AMENDED LEASE"), which Amended Lease amends and restates
the Original Lease. In connection therewith, Arabica and the Company have (i)
entered into a Second Amended and Restated Supplemental Agreement, dated the
date hereof (the "AMENDED SUPPLEMENTAL AGREEMENT"), which Amended Supplemental
Agreement amends and restates the Original Supplemental Agreement, (ii) entered
into a Second Amended and Restated Put Option Letter, dated the date hereof (the
"AMENDED PUT OPTION LETTER"), which Second Amended Put Option Letter amends and
restates the Original Put Option Letter, and (iii) entered into a Amended and

<PAGE>

Restated Call Option Letter, dated the date hereof (the "AMENDED CALL OPTION
LETTER"), which Amended Call Option Letter amends and restates the Original Call
Option Letter.

      E. Arabica and the Company are entering into this Agreement to address
certain U.S. federal and state tax issues arising from the transactions
contemplated by the Amended Asset Purchase Agreement, the Amended Lease, the
Amended Supplemental Agreement, the Amended Put Option Letter and the Amended
Call Option Letter (said transactions being herein referred to as the "OVERALL
TRANSACTION" and said instruments, agreements and letters being herein referred
to as the "TRANSACTION DOCUMENTS"), and to confirm the manner in which they will
treat and report, for U.S. federal and state tax purposes, the Overall
Transaction and the Transaction Documents.

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

      SECTION 1. FEDERAL AND STATE TAX CONSEQUENCES(a) . (a) It is expressly
agreed that the parties have entered into the Overall Transaction and the
Transaction Documents intending such agreements to accomplish a single
transaction, and intending such transaction to be characterized as a mere
financing for all income tax purposes and intending for the Company to be
considered the owner of the Assets for such tax purposes. Arabica and the
Company agree that, for all income tax purposes only, the Acquisition Cost to be
paid by the Company (whether under Section 1 of Schedule 6(a) to the Amended
Lease, pursuant to the Amended Put Option Letter, pursuant to the Amended Call
Option Letter, or otherwise) constitutes a payment of principal and the Rental
Rate to be paid by the Company (whether under Section 1 of Schedule 6(a) to the
Amended Lease, Section 6 of the Amended Lease, or otherwise) constitutes a
payment of interest.

      (b) The Company and Arabica agree that the amounts to be paid by the
Company to Arabica pursuant to Section 1(a)(iv) of Schedule 6(a) to the Amended
Lease shall be adjusted pursuant to Section 1(e) of Schedule 6(a) to the Amended
Lease as necessary so that Arabica is reimbursed for the actual costs it incurs
in obtaining or causing to be obtained property insurance for the Equipment and
performing or causing to be performed Major Maintenance and Required Alterations
for the Equipment. The parties acknowledge and agree that payment of this amount
by the Company to Arabica and the payment by Arabica to the Company under the
Amended Supplemental Agreement of the same amount fully offset each other and
are to be disregarded for all income tax purposes.

      (c) Arabica (and any assignee and or any person who holds a participation
interest in the Assets, the Amended Lease or any other Transaction Document) and
the Company agree to report the tax consequences of the Overall Transaction
accomplished pursuant to the Transaction Documents on their respective tax
returns (to the extent same are required to be filed) consistently and in
accordance with the intended tax treatment described in this Section 1.

      SECTION 2. PERSONAL PROPERTY TAXES. Arabica and the Company hereby agree
that to the extent permitted by law (i) the Company will file all returns and
other appropriate documentation in regard to personal property taxes on the
Assets, (ii) pay all such personal

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property taxes and (iii) reimburse Arabica for any and all such personal
property taxes previously paid by Arabica.

      SECTION 3. ASSIGNMENT; EVENT OF DEFAULT. The parties to this Agreement
agree that an assignment of either party's interest (i) in the Assets may not be
effected without also assigning such party's interest in each Transaction
Document to the same assignee and (ii) in any Transaction Document may not be
effected without also assigning such party's interest in the Assets and each
other Transaction Document to the same assignee. Any assignee of Arabica's
interest must be a Registered Holder; each assignee and any Person to which
Arabica grants a participation interest shall comply with each of Arabica's
agreements and covenants under the Transaction Documents, including without
limitation the agreements and covenants in Sections 1 and 2 of this Agreement. A
failure by the Company to comply with the terms of this Agreement shall
constitute an event for which Arabica may declare an Event of Default under, and
subject to the conditions of, Section 23(d) of the Amended Lease.

      SECTION 4. MISCELLANEOUS. This Agreement shall be binding upon, and inure
to and for the benefit of, the parties hereto and their respective successors
and assigns. The parties hereto agree that this Agreement may not be assigned in
whole or in part without the prior written consent of the other party hereto.
The parties hereto agree that any assignment of the Amended Lease by any party
thereto must include an assignment and assumption of this Agreement. Each
communication to be made under this Agreement shall be made in writing in
accordance with the notice provisions of the Amended Lease. This Agreement shall
be governed by, and construed in accordance with, the law of the State of New
York. The parties agree that the last sentence of Section 32 of the Amended
Lease (relating to submission to jurisdiction) and the provisions of Section 34
of the Amended Lease (relating to waiver of jury trial) are incorporated by
reference into this Agreement with the same force and effect as if such
provisions were set forth herein in full.

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      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives as of the date first above
written.

                          ARABICA FUNDING, INC.

                          By: /s/ Bernard J. Angelo
                             --------------------------------------------------
                             Name:  Bernard J. Angelo
                             Title: Vice President

                          CARIBOU COFFEE COMPANY, INC.

                          By: /s/ George E. Mileusnic
                             --------------------------------------------------
                             Name:  George E. Mileusnic
                             Title: Chief Financial Officer

                                       4

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