Document:

Class A(2008-13) Terms Document

 Exhibit 4.1 
 CHASE ISSUANCE TRUST 
 as Issuing Entity 
 CLASS A(2008-13) TERMS DOCUMENT 
 dated as of September 16, 2008 
 to 
 AMENDED AND RESTATED 
 CHASESERIES INDENTURE SUPPLEMENT 
 dated as of October 15, 2004 
 to 
 THIRD AMENDED AND RESTATED 
 INDENTURE 
 dated as of December 19, 2007 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Indenture Trustee and Collateral Agent 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE
		 	ARTICLE I Definitions and Other Provisions of General Application	  	
			
	 Section 1.01
	 	Definitions	  	1
	 Section 1.02
	 	Governing Law	  	4
	 Section 1.03
	 	Counterparts	  	4
	 Section 1.04
	 	Ratification of Indenture and Indenture Supplement	  	4
			
		 	 ARTICLE II The Class A(2008-13) Notes
	  	
			
	 Section 2.01
	 	Creation and Designation	  	5
	 Section 2.02
	 	Specification of Required Subordinated Amount and Other Terms	  	5
	 Section 2.03
	 	Interest Payment	  	6
	 Section 2.04
	 	Calculation Agent; Determination of LIBOR	  	6
	 Section 2.05
	 	Payments of Interest and Principal	  	7
	 Section 2.06
	 	Form of Delivery of Class A(2008-13) Notes; Depository; Denominations.	  	8
	 Section 2.07
	 	Delivery and Payment for the Class A(2008-13) Notes	  	8
	 Section 2.08
	 	Supplemental Indenture	  	8

 THIS CLASS A(2008-13) TERMS DOCUMENT (this “Terms Document”), among the CHASE ISSUANCE TRUST, a
statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), having its principal office at c/o Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-1600, and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and as collateral agent (the “Collateral Agent”), is made and entered into as of September 16, 2008. 
 Pursuant to this Terms Document, the Issuing Entity and the Indenture Trustee shall create a new Tranche of CHASEseries Class A Notes and shall
specify the principal terms thereof. 
 ARTICLE I 
 Definitions and Other Provisions of General Application 
 Section 1.01 Definitions For all
purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires: 
 (1) the terms defined in
this Article have the meanings assigned to them in this Article, and include the plural as well as the singular; 
 (2) all other terms used
herein which are defined in the Indenture Supplement, the Indenture or the Asset Pool Supplement, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) as used in this Terms Document and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in
this Terms Document or in any such certificate or other document, and accounting terms partly defined in this Terms Document or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them
under GAAP. To the extent that the definitions of accounting terms in this Terms Document or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions contained in this Terms Document or
in any such certificate or other document shall control; 
 (4) the words “hereof,” “herein,” “hereunder” and
words of similar import when used in this Terms Document shall refer to this Terms Document as a whole and not to any particular provision of this Terms Document; references to any subsection, Section, clause, Schedule or Exhibit are references to
subsections, Sections, clauses, Schedules and Exhibits in or to this Terms Document unless otherwise specified; the term “including” means “including without limitation”; references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or regulation; references to any Person include that Person’s successors and assigns; and references to any agreement refer to such agreement, as amended, supplemented or
otherwise modified from time to time; 

 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with
any term or provision contained in the Indenture Supplement, the Indenture or the Asset Pool Supplement, the terms and provisions of this Terms Document shall be controlling; and 
 (6) each capitalized term defined herein shall relate only to the Class A(2008-13) Notes and no other Tranche of CHASEseries Notes issued by the Issuing
Entity. 
 “Asset Pool Supplement” means the Second Amended and Restated Asset Pool One Supplement to the Indenture, dated
as of December 19, 2007, by and among the Issuing Entity, the Indenture Trustee and the Collateral Agent. 
 “Beneficiary” means Chase Bank USA, National Association, in its capacity as beneficial owner of the Issuing Entity. 
 “Calculation Agent” is defined in Section 2.04(a). 
 “Class A(2008-13) Adverse Event” means
the occurrence of any of the following: (a) an Early Amortization Event with respect to the Class A(2008-13) Notes, (b) an Event of Default and acceleration of the Class A(2008-13) Notes, (c) the Class A Usage of the Class B
Required Subordinated Amount for the Class A(2008-13) Notes becomes greater than zero or (d) the Class A Usage of the Class C Required Subordinated Amount for the Class A(2008-13) Notes becomes greater than zero. 
 “Class A(2008-13) Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated
therein as a Class A(2008-13) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class A(2008-13)
Noteholder” means a Person in whose name a Class A(2008-13) Note is registered in the Note Register. 
 “Class A(2008-13)
Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2008-13) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on
which the Indenture is discharged and satisfied pursuant to Article V thereof. 
 “Class A Required Subordinated Amount of Class B
Notes” is defined in Section 2.02(a). 
 “Class A Required Subordinated Amount of Class C Notes” is defined in
Section 2.02(b). 
 “Controlled Accumulation Amount” means $47,083,333.34; provided, however, if the
Accumulation Period Length is determined to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount for any Note Transfer Date with respect to the Class A(2008-13) Notes will be

 
the amount specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 
 “Indenture” means the Third Amended and Restated Indenture, dated as of December 19, 2007, between the Issuing Entity and the
Indenture Trustee. 
 “Indenture Supplement” means the Amended and Restated CHASEseries Indenture Supplement, dated as of
October 15, 2004, among the Issuing Entity, the Indenture Trustee and the Collateral Agent. 
 “Initial Dollar Principal
Amount” means $565,000,000. 
 “Interest Payment Date” means December 15, 2008 and the 15th day of each March,
June, September and December thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day; provided, however, that if an Early Amortization Event or an Event of Default and acceleration of the Class A(2008-13) Notes
shall have occurred, the “Interest Payment Date” shall mean the 15th day of each month thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day, beginning in the month following the Monthly Period during
which such Early Amortization Event or acceleration occurs. 
 “Interest Period” means, with respect to any Interest Payment
Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and including the Issuance Date) to but excluding such Interest Payment Date. 
 “Issuance Date” means September 16, 2008. 
 “Legal Maturity Date” means September 15, 2015. 
 “LIBOR” means, for
any Interest Period, the London interbank offered rate for three-month United States dollar deposits (or, if an Early Amortization Event or an Event of Default and acceleration of the Class A(2008-13) Notes shall have occurred, the London interbank
offered rate for one-month United States dollar deposits) determined by the Calculation Agent on the LIBOR Determination Date for each Interest Period in accordance with the provisions of Section 2.04. 
 “LIBOR Determination Date” means (1) September 12, 2008 for the period from and including the Issuance Date through but
excluding the initial Interest Payment Date and (2) for each Interest Period thereafter, the second London Business Day prior to the commencement of the second and each subsequent Interest Period. 
 “London Business Day” means any Business Day on which dealings in deposits in United States Dollars are transacted in the London
interbank market. 
 “Note Interest Rate” means a rate per annum equal to 1.50 % in excess of LIBOR, as determined by
the Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period. 

 “Paying Agent” means Wells Fargo Bank, National Association. 
 “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 3.06 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note. 
 “Record Date” means, for any Note Transfer Date, the last Business
Day of the preceding Monthly Period. 
 “Reference Banks” means four major banks in the London interbank market selected by
the Beneficiary. 
 “Reuters Screen LIBOR01 Page” means the display page so designated on the Reuters Monitor Money Rates
(or such other page as may replace that page on that service, or such other service as may be nominated as the information vendor, for the purposes of displaying rates comparable to LIBOR). 
 “Scheduled Principal Payment Date” means September 16, 2013. 
 “Stated Principal Amount” means $565,000,000. 
 Section 1.02 Governing Law THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 1.03
Counterparts This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.04 Ratification of Indenture and Indenture Supplement As supplemented by this Terms Document, each of the Indenture, the Asset Pool
Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Asset Pool Supplement and the Indenture Supplement as so supplemented by this Terms Document shall be read, taken and
construed as one and the same instrument. 
 [END OF ARTICLE I] 

 ARTICLE II 
 The Class A(2008-13) Notes 
 Section 2.01 Creation and Designation There is hereby created a
Tranche of CHASEseries Class A Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the “CHASEseries Class A(2008-13) Notes.” 
 Section 2.02 Specification of Required Subordinated Amount and Other Terms 
 (a) For the Class A(2008-13) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal
to 6.49718% of (i) prior to the occurrence of a Class A(2008-13) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2008-13) Notes on such date of determination or (ii) on and after the date on which a Class
A(2008-13) Adverse Event shall have occurred, the greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2008-13) Notes on such date of determination and (2) the Adjusted Outstanding Dollar Principal Amount of the
Class A(2008-13) Notes as of the close of business on the day immediately preceding the date on which such Class A(2008-13) Adverse Event shall have occurred. 
 (b) For the Class A(2008-13) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to 6.49718% of (i) prior to the occurrence of a Class
A(2008-13) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2008-13) Notes on such date or (ii) on and after the date on which a Class A(2008-13) Adverse Event shall have occurred, the greater of (1) the
Adjusted Outstanding Dollar Principal Amount of the Class A(2008-13) Notes on such date of determination and (2) Adjusted Outstanding Dollar Principal Amount of the Class A(2008-13) Notes as of the close of business on the day immediately
preceding the date on which such Class A(2008-13) Adverse Event shall have occurred. 
 (c) The Issuing Entity may change the percentages or
the formulas set forth in either clause (a) or (b) above without the consent of any Noteholder so long as the Issuing Entity has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes that
the change in either of such percentages or formulas, as applicable, will not result in a Ratings Effect with respect to any Outstanding Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion
and an Issuing Entity Tax Opinion. 

 Section 2.03 Interest Payment 
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class A(2008-13) Notes shall be an amount equal to the product of
(i) (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, times, (B) the Note Interest Rate in effect with respect to the related Interest
Period, times, (ii) the Outstanding Dollar Principal Amount of the Class A(2008-13) Notes determined as of the close of business on the Interest Payment Date preceding the related Note Transfer Date for the Class A(2008-13) Notes;
provided, however, that for the first Interest Payment Date, the amount of interest due with respect to the Class A(2008-13) Notes shall be an amount equal to the product of (x) the Outstanding Dollar Principal Amount of the Class
A(2008-13) Notes on the Issuance Date, (y) 90 divided by 360 and (z) the Note Interest Rate in effect with respect to the Class A(2008-13) Notes determined on September 12, 2008. Interest on the Class A(2008-13) Notes will be
calculated on the basis of the actual number of days elapsed and a 360-day year. 
 (b) Pursuant to Section 3.03 of the Indenture
Supplement, on each Note Transfer Date with respect to the Class A(2008-13) Notes, the Indenture Trustee shall deposit into the Class A(2008-13) Interest Funding Sub-Account the portion of CHASEseries Available Finance Charge Collections allocable
to the Class A(2008-13) Notes. 
 Section 2.04 Calculation Agent; Determination of LIBOR 
 (a) The Issuing Entity hereby agrees that for so long as any Class A(2008-13) Notes are Outstanding, there shall at all times be an agent appointed to
calculate LIBOR for each Interest Period (the “Calculation Agent”). The Issuing Entity hereby initially appoints the Indenture Trustee as the Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation
Agent may be removed by the Issuing Entity at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuing Entity, or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuing
Entity shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuing Entity or its Affiliates. The Calculation Agent may not resign its duties, and the Issuing Entity
may not remove the Calculation Agent, without a successor having been duly appointed. 
 (b) On each LIBOR Determination Date, the
Calculation Agent shall determine LIBOR on the basis of the rate for deposits in United States dollars for a three-month period (or, if an Early Amortization Event or an Event of Default and acceleration of the Class A(2008-13) Notes shall have
occurred, for a one-month period) which appears on Reuters Screen LIBOR01 Page or on such comparable system as is customarily used to quote LIBOR as of 11:00 a.m., London time, on such date. If such rate does not appear on Reuters Screen LIBOR01
Page or on a comparable system as is 

 
customarily used to quote LIBOR the rate for that LIBOR Determination Date shall be determined on the basis of the rates at which deposits in United States
dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a three-month period (or, if an Early Amortization Event or an Event of Default and acceleration of
the Class A(2008-13) Notes shall have occurred, for a one-month period). The Calculation Agent shall request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided,
the rate for that LIBOR Determination Date shall be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by major
banks in New York City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks for a three-month period (or, if an Early Amortization Event or an Event
of Default and acceleration of the Class A(2008-13) Notes shall have occurred, for a one-month period). 
 (c) The Note Interest Rate
applicable to the then current and the immediately preceding Interest Periods may be obtained by telephoning the Indenture Trustee at its corporate trust office at (612) 667-8058 or such other telephone number as shall be designated by the
Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time. 
 (d) On each
LIBOR Determination Date, the Calculation Agent shall send to the Indenture Trustee and the Beneficiary, via email or by facsimile transmission, notification of LIBOR for the following Interest Period. 
 Section 2.05 Payments of Interest and Principal 
 (a) Any installment of interest or principal payable on any Class A(2008-13) Note which is punctually paid or duly provided for by the Issuing Entity and the Indenture Trustee on the applicable Interest Payment Date
or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class A(2008-13) Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such
Person’s account as has been designated by written instructions received by the Paying Agent from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so
designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of
Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee. 
 (b)
The right of the Class A(2008-13) Noteholders to receive payments from the Issuing Entity will terminate on the first Business Day following the Class A(2008-13) Termination Date. 

 Section 2.06 Form of Delivery of Class A(2008-13) Notes; Depository; Denominations.

 (a) The Class A(2008-13) Notes shall be delivered in the form of a global Registered Note as provided in Sections 2.02 and 3.01(i) of the
Indenture, respectively. 
 (b) The Depository for the Class A(2008-13) Notes shall be The Depository Trust Company, and the Class A(2008-13)
Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class A(2008-13) Notes will be issued in
minimum denominations of $100,000 and integral multiples of $1,000 in excess of $100,000. 
 Section 2.07 Delivery and Payment for
the Class A(2008-13) Notes 
 The Issuing Entity shall execute and deliver the Class A(2008-13) Notes to the Indenture Trustee for
authentication, and the Indenture Trustee shall deliver the Class A(2008-13) Notes when authenticated, each in accordance with Section 3.03 of the Indenture. 
 Section 2.08 Supplemental Indenture 
 The Issuing Entity may enter into a supplemental indenture
with respect to the Class A(2008-13) Notes as provided in Section 9.01 of the Indenture; provided, however, that any supplemental indenture which provides for an additional or alternative form of credit enhancement for the Class A(2008-13)
Notes shall, in addition to the requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of the CHASEseries that such change in credit enhancement will not
result in a Ratings Effect with respect to any Outstanding Notes of the CHASEseries. 
 [END OF ARTICLE II] 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the
day and year first above written. 
  

			
	CHASE ISSUANCE TRUST
		
	By:	 	 CHASE BANK USA, NATIONAL
 ASSOCIATION,
 as Beneficiary and not in its
 individual capacity

		
	By:	 	 /s/ Keith W. Schuck

	Name:	 	Keith W. Schuck
	Title:	 	President
	
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as
Indenture Trustee and
 Collateral Agent

		
	By:	 	 /s/ Cheryl C. Zimmerman

	Name:	 	Cheryl C. Zimmerman
	Title:	 	Vice President

 Chase Issuance Trust 
 CHASEseries Class A(2008-13) Terms Document 
 Signature PageForbearance Agreement

 Exhibit 10.1 
 FORBEARANCE AGREEMENT 
 THIS FORBEARANCE AGREEMENT (this “Agreement”) is dated for
reference purposes September 5, 2008, and is by and between BENAROYA CAPITAL COMPANY, L.L.C., a Washington limited liability company (“Lender”), and TULLY’S COFFEE CORPORATION, a Washington corporation (“Borrower”).

 RECITALS 
 A. Borrower
has previously executed that certain Secured Promissory Note dated April 26, 2007, in favor of Lender in the original principal amount of FOUR MILLION AND 00/100 DOLLARS ($4,000,000.00), as amended by that certain Amendment to Secured
Promissory Note and Security Agreement dated July 12, 2007 (collectively herein call the “Note”). The Note evidences a loan from Lender to Borrower in the amount of up to TEN MILLION AND 00/100 DOLLARS ($10,000,000.00) plus accrued
interest (the “Loan”). To secure repayment of the Note, Borrower executed and delivered to Lender that certain Security Agreement dated April 26, 2007, also as amended by that certain Amendment to Secured Promissory Note and Security
Agreement dated July 12, 2007 (collectively, the “Security Agreement”). A UCC-1 Financing Statement was filed with the Washington State Department of Licensing, UCC Division, on April 27, 2007 under File No. 2007-117-1708-6
(the “Financing Statement”). The Note, the Security Agreement and the Financing Statement are herein called the “Loan Documents”. All words beginning with a capital letter in this Agreement that are defined in the Loan Documents
shall have the same meaning in this Agreement as in the Loan Documents. 
 B. The Maturity Date of the Note is August 31, 2008, and
Borrower has requested that Lender forbear from commencing collection efforts after the Maturity Date, to which request Lender has agreed upon the terms and conditions set forth below. 
 C. Tom T. O’Keefe (“O’Keefe”) has guaranteed repayment of the Note pursuant to that certain Guaranty Agreement dated as of
April 25, 2007, as amended by that certain Amendment to Guaranty Agreement dated as of July 12, 2007 (collectively, the “O’Keefe Guaranty”). Mary Kay McCaw (“McCaw” and together with O’Keefe herein called the
“Guarantors”) has guaranteed repayment of a portion of the Note pursuant to that certain Guaranty Agreement dated as of July 12, 2007 (the “McCaw Guaranty” and together with the O’Keefe Guaranty herein called the
“Guaranties”). 
 AGREEMENT 
 NOW, THEREFORE, In consideration of the foregoing recitals and the covenants set forth below the parties hereby agree as follows: 
 1. Subject to the terms and conditions of this Agreement, Lender agrees to forbear from taking any action to foreclose on the Security Agreement, bring action to collect on the Notes, or take other action to realize
on any security for the Loan or to otherwise effect remedies permitted to be taken by Lender. 

 2. Nothing in this Agreement shall prohibit Lender from: 
 a. executing, publishing, filing or otherwise delivering to any person or other entity including, without limitation, any governmental
office or agency any notice to secure, perfect, renew or otherwise evidence or establish any security interest of Lender in or to the property securing repayment of the Note; 
 b. the defense of any claim, action or proceeding brought against Lender which in any manner arises out of or in connection with the Loan
or any security given for the Loan; or 
 c. exercising its rights under the Warrant or the New Warrant. 
 3. Each of the following shall be a condition to the obligation of Lender to forebear in accordance with Section 1 above (the
“Conditions”): 
 a. Except for the failure to pay the Note on the Maturity Date, there are no defaults of any of
Borrower’s obligations under the Loan Documents or of Guarantors’ obligations under the Guaranties; 
 b. No claim,
litigation or other proceeding is made or instituted against Lender by any person or other entity which disputes the indebtedness evidenced by the Note, asserts any offset against said indebtedness, or any claim against Lender arising out of or in
connection with said indebtedness; 
 c. No bankruptcy proceeding or other federal or state proceeding is commenced by any
party that has the purpose or effect of seeking a moratorium against, or reorganization of, or liquidation of, the assets or liabilities of Borrower or the Guarantors; 
 d. No lien or other encumbrance, whether voluntary or involuntary, arises to affect title to the Collateral; 
 e. There is no breach by Borrower of this Agreement; and 
 f. Within ten (10) days after mutual execution of this Agreement Borrower shall have paid all of Lender’s costs and fees
incurred in connection with the preparation, negotiation and execution of this Agreement. 
 If any one or more of the foregoing Conditions
occurs at any time, the obligations of Lender to forbear hereunder shall immediately terminate and Lender shall have no further obligations pursuant to Section 1 above. Borrower shall immediately notify Lender in writing if it becomes aware of
the occurrence of any of the foregoing Conditions. 
  

 2 

 4. As a material inducement to cause Lender to enter into this Agreement, Borrower hereby agrees that if
any of the foregoing Conditions occur and if either (a) the same result from the affirmative act of Borrower, or (b) Borrower fails to immediately notify Lender of the existence of the same upon learning of the occurrence of such
Condition, then any and all amounts expended or incurred by Lender as a result of such Condition, and any and all loss, damage and expense to Lender as a result of such Condition, whether or not foreseeable, shall be an additional obligation of
Borrower. All amounts so expended or incurred in connection with the same by Lender shall be due and payable by Borrower to Lender on demand, together with interest as described below. All such obligations shall be evidenced by this Agreement, and
all sums expended or incurred by Lender shall bear interest from when expended or incurred until repaid in full by Borrower, at the same rate as if they were evidenced by the Note. Further, all such obligations shall constitute Indebtedness for
purposes of the Guaranties, subject to the limitations set forth in the applicable McCaw Guaranty and O’Keefe Guaranty. 
 5. The
obligation of Lender pursuant to Section 1 of this Agreement to forbear (subject to the provisions of Section 2 and subsection 3 of this Agreement) shall terminate on the earliest to occur of: (a) written notice to Borrower and to
Guarantors from Lender that Lender has terminated its forbearance obligations; or (b) the occurrence of any of the Conditions set forth in Section 3 of this Agreement. Such termination shall not release or relieve Borrower from any
obligation pursuant to this Agreement that arose prior to such termination, including, without limitation, any and all loss, damage, cost and expense to Lender as a result of or arising out of any breach of any representation and warranty given to
Lender pursuant to this Agreement. 
 6. Borrower represents and warrants to Lender that: 
 a. Neither the execution and delivery of this Agreement, nor the performance of Borrower’s obligations under it, will conflict with,
or result in a breach of, any agreement or instrument to which Borrower is a party or by which Borrower is bound; 
 b. No
consent of any person or other entity is required to Borrower’s execution, delivery and performance of this Agreement; 
 c. Borrower is duly formed and validly existing under the laws of the state of its existence; 
 d. Borrower owns fee
title to the Collateral and there are no matters affecting title to the Collateral or Improvements other than as set forth in the Security Agreement; 
 e. The most recent financial statements and all statements of operating expense and income pertaining to the Borrower and to the Collateral previously delivered to Lender by Borrower are true, accurate and complete;
and 
  

 3 

 f. As of August 31, 2008, the outstanding balance of the Loan is Eight Million Seven
Hundred Seventeen Thousand One Hundred Twenty Four and 68/100 Dollars ($8,717,124.68) and Borrower is not entitled to any further draws of principal. 
 7. The Loan Documents are hereby confirmed by Borrower and Guarantors as being in full force and effect. The Guaranties are hereby confirmed by Guarantors as being in full force and effect. As of the date of this
Agreement, Borrower does not have nor is Borrower aware of any defenses or offsets to its obligations under the Loan Documents and Borrower acknowledges and agrees that Lender has performed all of its obligations to Borrower under the Loan Documents
to the date of this Agreement. As of the date of this Agreement, neither of the Guarantors has nor is aware of any defenses or offsets to their obligations under their respective Guaranties and the Guarantors acknowledge and agree that Lender has
performed all of its obligations to Borrower under the Loan Documents to the date of this Agreement. Borrower, as a material inducement to cause Lender to enter into this Agreement, hereby waives any and all defenses it may now or hereafter have
under the Loan. Borrower acknowledges that Lender’s execution of this Agreement constitutes a material modification of the Loan and that the same supplies adequate consideration for the foregoing waivers. The foregoing waivers shall survive any
termination of this Agreement. 
 8. O’Keefe hereby (a) consents to this Agreement and all terms thereof, (b) reaffirms his
liability as guarantor pursuant to the O’Keefe Guaranty, (c) expressly waives and reaffirms his waiver of any and all rights, defenses and benefits otherwise available to him, and (d) confirms that the O’Keefe Guaranty remains in
full force and effect now and after August 31, 2008. 
 9. McCaw hereby (a) consents to this Agreement and all terms thereof,
(b) reaffirms her liability as guarantor pursuant to the McCaw Guaranty, (c) expressly waives and reaffirms her waiver of any and all rights, defenses and benefits otherwise available to her, and (d) confirms that the McCaw Guaranty
remains in full force and effect now and after August 31, 2008. 
 10. BORROWER AND GUARANTORS HEREBY CONFIRM THAT THERE ARE
NO LOANS, LOAN COMMITMENTS OR ALLEGED LOAN COMMITMENTS, VERBAL OR WRITTEN, MADE OR CLAIMED TO HAVE BEEN MADE BY LENDER TO BORROWER WITH RESPECT TO THE PROPERTY, EXCEPT AS SET FORTH IN THE LOAN DOCUMENTS AND THIS AGREEMENT. ORAL AGREEMENTS OR ORAL
COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. 
 11. Miscellaneous. 
 a. This Agreement is the sole agreement between Lender and Borrower pertaining to any
obligation of Lender to forbear in the exercise of its remedies to enforce and collect the Loan. Borrower is not relying on any representations of any kind in making this Agreement and acknowledges that Lender may terminate the forbearance set forth
in Section 1 at any time. 
  

 4 

 b. Borrower acknowledges that it has had advice of counsel of its own choosing before
executing this Agreement, that it fully understands this Agreement and all of its provisions including, without limitation, the waivers set forth in this Agreement, and freely and voluntarily has executed this Agreement and intends to be bound by
it. 
 c. Notwithstanding this Agreement, any existing Event of Default shall permit Lender to effect all rights and remedies
pursuant to the Loan Documents from and after termination of Lender’s obligation to forbear pursuant to Section 5 of this Agreement; 
 d. This Agreement is made solely for the benefit of Borrower and Lender and, except as to assignees of Lender’s interest in the Loan, may not be relied upon by any other persons or entity; 
 e. Any notice that a party is required or may desire to give to the other shall be in writing and may be sent by personal delivery or by
overnight courier addressed as set forth in the Loan Documents or the Guaranties. 
 f. This Agreement may be modified or
amended only by an agreement in writing signed by Borrower and Lender. This Agreement shall be governed by the laws of the state of Washington. This Agreement shall be interpreted as if mutually drafted and negotiated by Borrower and Lender. Time is
of the essence of this Agreement. If any provision of this Agreement is determined to be unenforceable, the other provisions of this Agreement shall continue in full force and effect. This Agreement shall be enforceable on the heirs, successors and
assigns of Borrower and Lender. 
 g. This Agreement may be executed in any number of original counterparts, each of which
shall be deemed an original, but all of which when taken together shall constitute one and the same instrument. Each party (i) has agreed to permit the use, from time to time and where appropriate, of telecopied signatures in order to expedite
the transaction contemplated by this Agreement, (ii) intends to be bound by its respective telecopied signature, (iii) is aware that the other parties will rely on the telecopied signature, and (iv) acknowledges such reliance and
waives any defenses to the enforcement of the documents effecting the transaction contemplated by this Agreement based on the fact that a signature was sent by telecopy. As used herein, the term “telecopied signature” shall include any
signature sent via email or in portable document format (“pdf”). 
 [Signatures of the Parties Appear on the Following Page] 

  

 5 

 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first set forth
above. 
  

			
	BORROWER:
	
	TULLY’S COFFEE CORPORATION
		
	By:	 	 
	Name:	 	Carl W. Pennington
	Title:	 	President

  

			
	LENDER:
	
	BENAROYA CAPITAL COMPANY, L.L.C.
		
	By:	 	 
	Name:	 	Larry R. Benaroya
	Title:	 	Manager

  

					
	GUARANTORS:	 		 	
			
	  	 		 	  
	Tom T. O’Keefe	 		 	Mary Kay McCaw

  

 6

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