Document:

Employment Summary for Ronald Gai

 Exhibit 10.16 
 TULLY’S COFFEE CORPORATION 
 SUMMARY OF EMPLOYMENT 

 

					
	Name:	  	Ron Gai (“Employee”)	  	
			
	Position:	  	Vice President, Wholesale Division	  	
			
	Reports To:	  	President, Chief Executive Officer	  	
		
	Responsibilities:	  	Responsibilities include all aspects of Wholesale channel distribution (grocery, food service, office coffee services, mass feeders and direct accounts) for Tully’s Coffee
Corporation (“Company”) within the U.S. market, including strategy/business development, customer relations, distributorship relations, employee staffing and financial performance against planned targets. Member of Executive Leadership
Team. This Summary of Employment supersedes in its entirety that certain Employment Letter issued to Employee dated May 6, 2002.
		
	Base Salary:	  	$100,000.00 annually, effective April 7, 2003. Employee shall be eligible for annual salary adjustments. Effective April 7, 2003, Employee will also be participating in the
Company’s Deferred Compensation Plan (“Plan”) and as such will be deferring 10 percent of salary ($10,000.00 annual deferment) until conditions outlined within the Plan are achieved.
		
	Car Allowance:	  	$600.00/month and subject to statutory tax withholdings. Employee is responsible for all auto expenses including gas, insurance, maintenance, etc.
		
	Bonus Potential:	  	Employee shall be eligible for an annual bonus award (percentage of base salary) based on a Board approved Company EBITDA target for each fiscal year. The annual bonus award and
payout is at the sole discretion of the Board. The payout targets will be as follows:
		
	  	  	FY 2004 & Beyond
			
	 	  	 % EBITDA
 (Achieved vs Target)
	  	 % Bonus
 (% Base Salary)

		  	Less than 100%	  	Discretionary: up to $15,000
		  	100%	  	35.0% payout
		  	125%	  	50.0% payout
		  	Greater than 125%	  	50.0% plus sliding scale
		
		  	  
 Note: There will be a ratable calculation for bonus payout between
EBITDA targets.
  
 Employee shall no longer participate in any bonus plan tied to grocery
channel performance.

 TULLY’S COFFEE CORPORATION 
 SUMMARY OF EMPLOYMENT 
  

							
	 Benefits:
	  	Employee eligible for participation in Company’s benefit program including medical, dental, vision and death benefits.
		
	 Options:
	  	Employee shall receive the following non-qualified options subject to the vesting, exercise and other general terms and conditions contained in the Company’s 1994 Stock
Option Plan:
				
	  	  	 # Shares
	    	 Share Exercise Price
	  	  
		  	 50,000
	    	$0.01/share	  	
		
		  	Note: Additional option grants may be issued from time to time as recommended by the CEO and approved by the Board.
		
	 Severance:
	  	Employee shall receive three (3) months severance (of current annual base salary) if terminated by Company. Executive shall not receive severance if terminated for cause, nor if
executive voluntarily resigns. Termination for cause shall include: (1) felony conviction, (2) employee theft, fraud, or gross dishonesty (3) moral turpitude, (4) willful insubordination or (5) any action that is injurious to the Company’s
reputation or business. Employee must sign the Company’s standard employee release document to receive severance. Severance payout shall be made in accordance with Company’s normal payroll policy.
		
	 Term:
	  	Employment may be terminated by either Employee or the Company on 30 days written notice, subject to the severance provisions as outlined above.
		
	 Other:
	  	Employee is subject to the Company’s standard Confidentiality Agreement.

  

									
	Tully’s Coffee Company	 		 	Employee
			
	Date: April 15, 2003	 		 	Date: April 15, 2003
					
	By:	 	 /s/ John D. Dresel
	 		 	By:	 	 /s/ Ron Gai

	Title:	 	President, CEO	 		 	Title:	 	VP, Wholesale

 

 
 September 16, 2005 
 Ron Gai 
 18109 NE 155th St 
 Woodinville, WA 98072 
  

	 	RE:	Change in Bonus Plan Participation 

 Dear Ron, 
 In the past you have had additional variable compensation opportunities based on Tully’s achievement of certain performance goals. As of the
beginning of Fiscal 2006, those prior variable compensation opportunities have concluded and will no longer be a part of your total compensation. However, for Fiscal 2006 you are eligible to participate in the “Drive for 285” bonus
program. The “Drive for 285” program is intended for Fiscal 2006 only. Bonus opportunities beyond Fiscal 2006, if any, have not yet been defined, and your participation in the Fiscal 2006 program does not guarantee participation in future
years. 
 Details regarding your “Drive for 285” bonus program are available from Kris Galvin. Please contact me if you have any
questions about this change. 
  

	
	Sincerely,
	
	TULLY’S COFFEE CORPORATION
	
	 /s/ John D. Dresel

	 John D. Dresel
 President & COO

  

 3100 AIRPORT WAY SOUTH  SEATTLE, WASHINGTON 98134  TELEPHONE (206) 233 2070  FACSIMILE (206) 233 2077  (800) 96
TULLY  WWW.TULLYS.COMOffer Letter for Robert Martin

 Exhibit 10.17 
 

 
 December 1, 2004 
 HAND DELIVERED 
 Rob Martin 
  

	RE:	Offer Letter 

 We are pleased to confirm our offer of
employment to you for the position of Vice President, Merchandising and Production of Tully’s Coffee Corporation (the “Company”). The terms and conditions of the Company’s offer are contained in the attached Tully’s Coffee
Corporation Summary of Employment. 
 To indicate your acceptance of the Company’s offer, please sign and date this offer letter and the
attached Summary of Employment. We look forward to having you join the Tully’s Coffee team. 
 Very truly yours, 
 Tully’s Coffee Corporation 
 John Dresel 
 President and Chief Operations Officer 
 I agree to and accept employment
with Tully’s Coffee Corporation on the terms and conditions set forth in this offer letter and the attached Summary of Employment. 
  

			
	Date: December 1, 2004	  	 /s/ Rob Martin

		  	Rob Martin

  

	
	495 BARNEVELD AVENUE  SAN FRANCISCO, CALIFORNIA
91124  TELEPHONE (415) 821 7100  FACSIMILE (415) 821 7199  (800) 96
TULLY
WWW.TULLYS.COM

			
	Name:	  	 Rob Martin (“Employee”)

		
	Position:	  	 Vice President, Merchandising and Production

		
	Reports to:	  	 President and Chief Operating Officer, Tully’s Coffee Corporation

		
	Service Date:	  	 Employee shall commence employment on January 3, 2005.

		
	Responsibilities:	  	
		
	Merchandising:	  	
		
		  	 •    Responsibilities include all aspects of the merchandising, advertising, promotional affairs, and media relations
across the retail and wholesale divisions of the company. Responsible for the development, execution and communication of Tully’s brand strategy and positioning. Marketing liaison to Company’s international licensees. Advises and assist in
the development, planning and execution of the Companies business strategies.

		
	Supply Chain:	  	
		
		  	 •    Establishes and manages towards achieving an annual Supply Chain operating
plan and budget that aligns with Tully’s annual plan and budget.
  
 •    Develops and integrates a coherent, effective and actionable supply chain strategy that aligns with Tully’s strategic interests.
  
 •    Provides executive leadership
to the Tully’s enterprise within the role of an Executive Leadership Team member.
  
 •    Provides organizational leadership and coaching to the Supply Chain team. Ensures
business

			
		  	       needs are met through effective management, training and personal
development.
  
 •    Leads consistently within Tully’s “Code of Business Conduct.”
  
 •    Establishes the appropriate business protocol with all key vendors doing business with Tully’s
including, selection (competitive bidding), negotiations, supply agreements, ongoing business relationships, etc.
  
 •    Secure green coffee contracts to meet Tully’s annual demand. Appropriately manages the balance
of green bean supply, quality and cash-flow risk.
  
 •    Ensures Tully’s business forecast across all three operating divisions (retail, wholesale and international) have adequate supply of inventory to meet expected demand.
  
 •    Optimizes customer service
requirements with Tully’s cash-flow need.
  
 •    Provide training and documentation to ensure a safe work environment.
  
 •    Provide and manage coffee product R & Development.
  
 •    Establish and document
Tully’s product quality standards.
  
 •    Responsible for the general operational aspects of Tully’s corporate facilities.

		
	 Base Salary:
	  	 Salary to begin January 3, 2005 at the annualized rate of $125,000 paid in arrears in accordance with the Company’s normal payroll practices (currently
bi-weekly) and shall be reviewed annually on April 1.

			
	Car Allowance:	  	 Employee shall receive a $650 per month automobile allowance, subject to statutory tax withholdings.

		
	Bonus Potential:	  	 Employee shall participate in the Company’s annual bonus plan for the fiscal year beginning April 4, 2005.

		
	Paid Vacation:	  	 Employee will receive 3 weeks paid vacation annually.

		
	Benefits:	  	 Participation in the Company’s employee benefits program (subject to plan requirements) including medical, dental, vision and death benefits, 401(k) plan,
holidays and employee discounts.

		
	Options:	  	 Subject to granting by the Board of Directors, employee shall receive a nonqualified option grant of 95,000 shares (summarized
below), subject to the vesting, exercise and other general terms and condition contained in the Company’s 2004 Stock Option Plan:
  
 10,000 shares with an option price of $0.31 per share that vest 100% on January 31, 2005;
  
 25,000 shares with an option price of $0.31 per share that vest 100% on January
1, 2006;
  
 30,000 shares with an option price of $1.50 per share that
vest 100% on January 1, 2007;
  
 30,000 shares with an option price of
$2.00 per share that vest 100% on January 1, 2008;

			
	Termination:	  	 Termination for cause shall include: (1) felony conviction, (2) Employee theft, fraud, or gross dishonesty (3) moral
turpitude, (4) willful insubordination or (5) any action that is injurious to the Company’s reputation of business.
  
 Termination without cause may be initiated by either Employee or the Company on 30 days written notice.

		
	Other:	  	 Employee is subject to the Company’s standard Confidentiality Agreement and the Tully’s Code of Business Conduct.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]