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AMENDMENT NO. 1 TO BUSINESS LOAN AGREEMENT    
  

    This Amendment No. 1 to Business Loan Agreement (this "Amendment") is entered into as of February 16, 2001, between Tully's Coffee Corporation
("Borrower") and Bank of America, N.A. ("Lender") with reference to the following: 

RECITALS  

    A.  Borrower
and Lender are parties to that certain Business Loan Agreement dated as of June 28, 2000 ("the Loan Agreement"). 

    B.  The
parties hereto now desire to amend the Loan Agreement on the terms and conditions set forth below: 

AGREEMENT  

    NOW, THEREFORE, the parties hereto agree as follows: 

    1.  Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings
ascribed to them in the Loan Agreement. 

    2.  Amendments.  The Loan Agreement shall be amended as follows: 

	2.1
	Section 1(b)
of Exhibit A to the Loan Agreement is amended in full to read as follows: 

"(b) Commitment: 'Commitment Amount' shall mean $6,000,000.00; provided, however, that the Commitment Amount shall automatically reduce by
$500,000.00 on each of the following dates: March 1, 2001; April 2, 2001; May 1, 2001, and June 1, 2001. If the principal amount of loans outstanding at any time exceeds
the Commitment Amount, as reduced, the Borrower will immediately pay to Lender the amount of such excess." 

	2.2
	Section 4.2
of Exhibit A of the Loan Agreement is deleted in its entirety.

	2.3
	Section 4.5
of Exhibit A of the Loan Agreement is deleted in its entirety. 

    3.  Representations and Warranties.  Borrower represents and warrants to Lender that: (i) after
giving effect to the waiver being issued by Lender to Borrower concurrently with this Amendment, no Event of Default under the Loan Agreement and no event which, with notice or lapse of time or both,
would become an Event of Default, has occurred and is continuing; (ii) after giving effect to the waiver being issued by Lender to Borrower concurrently with this Amendment, Borrower's
representations and warranties made under the Loan Agreement are true as of the date hereof; (iii) the making and performance by Borrower of this Amendment have been duly authorized by all
necessary corporate action; and (iv) no consent, approval, authorization, permit, or license is required in connection with the making or performance of this Amendment. 

    IN
WITNESS THEREOF, the parties hereto have executed this Amendment as of the date first above written. 

	BANK OF AMERICA, N.A.	 	TULLY'S COFFEE CORPORATION
	

By:	
 	

/s/ NANCY NUERENBERG   
 Nancy Nuerenberg
 Senior Vice President	
 	

By:	
 	

/s/ RANDY HALTER   
 Name: Randy Halter

Title:  SVP &CFO

1

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AMENDMENT NO. 1 TO BUSINESS LOAN AGREEMENTPrepared by MERRILL CORPORATION

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AMENDMENT NO. 2 TO BUSINESS LOAN AGREEMENT AND NOTE    
  

    This Amendment No. 2 to Business Loan Agreement and Note (this "Amendment") is entered into effective as of July 1, 2001, between Tully's Coffee
Corporation ("Borrower") and Bank of America, N.A. ("Lender"") with reference to the following: 

RECITALS  

    A.  Borrower
and Lender are parties to that certain Business Loan Agreement dated as of June 28, 2000, which was amended by Amendment No. 1 dated as of
February 16, 2001 (collectively, the "Loan Agreement"). 

    B.  Borrower
executed a Promissory Note with an original Principal Amount of $6,000,000.00 in favor of Lender dated as of June 28, 2000 (the "Note"). 

    C.  The
parties hereto now desire to amend the Loan Agreement and the Note on the terms and conditions set forth below: 

AGREEMENT  

    NOW, THEREFORE, the parties hereto agree as follows: 

    1.  Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings
ascribed to them in the Loan Agreement and / or the Note. 

    2.  Amendments.  The Loan Agreement, Exhibit A to the Loan Agreement and the Note shall be amended
as follows: 

    2.1 All
references to the Principal Amount of the Revolving Line of Credit, whether in the Promissory Note, the Loan Agreement, or Exhibit A to the Loan
Agreement, shall be amended to $2,500,000.00. 

    2.2 Section 1(b)
of Exhibit A to the Loan Agreement shall be amended to read in full as follows: 

"(b) Commitment
Amount: 'Commitment Amount' shall mean $2,500,000.00. If the principal amount of loans outstanding at any time exceeds the Commitment Amount, the Borrower will
immediately pay to Lender the amount of such excess." 

    2.3 All
references to the Availability Period and to the Maturity of the Revolving Line of Credit, whether in the Promissory Note, the Loan Agreement, or
Exhibit A to the Loan Agreement, shall be amended to October 1, 2001. 

    2.4 The
interest rate shall be increased, and the VARIABLE INTEREST RATE section of the Note shall be amended to read as follows: 

VARIABLE
INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an index which is the Lender's publicly announced Prime Rate (the "Index"). The
interest rate change will not occur more often than each day the Prime Rate changes. Lender will tell Borrower the current Index rate upon Borrower's request. Borrower understands that Lender may make
loans based on other rates as well. The Interest rate change will not occur more often than each day. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate of
1.000 percentage points over the Index. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. 

    3.  Amendment Fee.  Borrower will pay a $1,500.00 Amendment Fee on July 1, 2001, which shall be
fully earned and non-refundable unless Borrower satisfies all obligations of the Note and the Loan Agreement on or before that date. 

    4.  Representations and Warranties.  Borrower represents and warrants to Lender that (i) except as
otherwise waived by Lender in writing, no Event of Default under the Loan Agreement and the Note, and no event which, with notice or lapse of time or both, would become an Event of Default, has
occurred and is continuing; (ii) except as otherwise waived by Lender in writing, Borrower's representations and warranties made under the Loan Agreement are true as of the date hereof;
(iii) the making and performance by Borrower of this Amendment have been duly authorized by all necessary corporate
action; and (iv) no consent, approval, authorization, permit or license is required in connection with the making or performance of this Agreement. 

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

	BANK OF AMERICA, N.A.	 	TULLY'S COFFEE CORPORATION
	

By:	
 	

/s/ NANCY NUERENBERG   
 Nancy Nuerenberg
 Senior Vice President	
 	

By:	
 	

/s/ TOM T. O'KEEFE   
 Name: Tom T. O'Keefe

Title:  Chairman & CEO

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AMENDMENT NO. 2 TO BUSINESS LOAN AGREEMENT AND NOTEPrepared by MERRILL CORPORATION

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THIRD LEASE AMENDMENT
  
    Between
  
    KENT CENTRAL, LLC
  
    and
  
    TULLY'S COFFEE CORPORATION.    
  

This
Third Lease Amendment dated the 7th day of November, 2000 is attached to and made part of that certain Lease dated August 16, 1999, as amended by that certain First Lease
Amendment dated December 17, 1999 and as further amended by that certain Second Lease Amendment dated June 6, 2000 (hereinafter collectively referred to as the "Lease") by and between
Kent Central, LLC., a Washington limited liability company, hereinafter called Lessor ("Lessor"), and Tully's Coffee Corporation., a Washington corporation, hereinafter called the Lessee ("Lessee"),
covering the Premises located at 3100 Airport Way South, in Seattle, Washington (the "Premises"). The Premises are more particularly described in the Lease as amended. 

The
terms used herein shall have the same definitions as set forth in the Lease. 

In
consideration of the mutual covenants and promises contained in this Third Lease Amendment and the Lease, Lessor and Lessee agree as follows: 

	1.
	For the period from the date hereof until December 31, 2000 Section 1,
"Premises", of the Lease is hereby amended to modify the definition of the Premises by adding approximately 10,000 square feet of space selected by Lessee within a portion of
the Building located west of the Premises and depicted as "Warehouse Bldg. #43" on Exhibit A attached hereto. The additional Premises is designated the "Temporary Expansion Premises" and will
be leased to Lessee with no increase in Rent.

	2.
	Lessee understands and acknowledges that it is imperative that Lessee vacate the Temporary Expansion Premises on or before
December 31, 2000. Failure to vacate will cause a delay of a pending transaction and will result in substantial damages to Lessor. Therefore, Lessee agrees that in addition to the remedies
available to Lessor under Section 25 of the Lease, "Holdover", Lessee will be obligated
to pay Lessor $6,000 per day for each day after December 31, 2000 that Lessee occupies any portion of the Temporary Expansion Premises. Lessee also understands and agrees that this amount
($6,000 per day) approximates the actual damages that would be suffered by Lessor resulting from a delay and is not a penalty. 

Except
as otherwise modified by the terms of this Third Lease Amendment, all other terms and conditions of the Lease remain unchanged and in full force and effect. 

	LESSOR:

KENT CENTRAL, LLC	 	LESSEE:

TULLY'S COFFEE CORPORATION
	

 	
 	

 	
 	

 	
 	

 
	/s/ LARRY R. BENAROYA   
	 	/s/ TOM T. O'KEEFE   

	By:	 	Larry R. Benaroya	 	By:	 	Tom T. O'Keefe
	Its:	 	Manager	 	Its:	 	Chairmand & CEO
	Date:	 	 	 	Date:	 	11/20/00

 

	STATE OF WASHINGTON	]	 	 	 	 
	 	]	 	ss.	 	 
	COUNTY OF KING	]	 	 	 	 

    I
certify that I know or have satisfactory evidence that Larry R. Benaroya is the person who appeared before me, a Notary Public in and for the State of Washington duly commissioned
and sworn, and acknowledged that he is the Manager of Kent Central, LLC, a Washington limited liability company,
who executed the within and foregoing instrument, and acknowledged the instrument to be the free and voluntary act and deed of said company for the uses and purposes therein mentioned, and on oath
stated that affiant is authorized to execute said instrument on behalf of said company. 

IN
WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. 

	 	 	/s/ REBECCA A. BETHELL   
 Notary Public in and for the

State of Washington

residing at Seattle

Commission expires 11/9/02

Print Name Rebecca A. Bethell

	STATE OF WASHINGTON	]	 	 	 	 
	 	]	 	ss.	 	 
	COUNTY OF KING	]	 	 	 	 

    I
certify that I know or have satisfactory evidence that TOM T O'KEEFE is the person who appeared before me, a Notary Public in and for the State of Washington duly commissioned and
sworn, and acknowledged that he/she is the Chairman & CEO, of Tully's Coffee Corporation, a Washington corporation who executed the within and foregoing instrument, and acknowledged the
instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that affiant is authorized to execute said instrument on behalf
of said corporation. 

IN
WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. 

	 	 	/s/ PAMELA K. JOHNSON   
 Notary Public in and for the

State of Washington

residing at Bellevue

Commission expires 2/2/04

Print Name Pamela K. Johnson

2

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THIRD LEASE AMENDMENT Between KENT CENTRAL, LLC and TULLY'S COFFEE CORPORATION.

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