SEVENTH AMENDMENT TO LEASE AGREEMENT

Exhibit 10.7(h)

SEVENTH AMENDMENT TO LEASE AGREEMENT

THIS SEVENTH AMENDMENT TO LEASE AGREEMENT is made and entered into as of the 23 ^rd day of July, 2004, between RAINIER COMMONS, LLC, a Washington limited liability company (“Lessor”), and TULLY’S COFFEE CORPORATION, a Washington corporation (“Lessee”).

RECITALS

A. Pursuant to that certain Lease Agreement dated August 16, 1999, entered into between Kent Central, LLC (“KCL”) and Lessee, as modified by those certain amendments described in the attached Exhibit B (collectively, the “KCL Lease”), KCL agreed to lease to Lessee certain premises as further described in the Lease (the “Original Lease Premises”) on the real property located at 3100 Airport Way South, Seattle, Washington, which is legally described as set forth on the attached Exhibit A (the “Property”). On July 17, 2003, Lessor purchased the Property from KCL, and thereby assumed all of KCL’s rights and obligations under Lease. Lessor and Lessee modified the lease by the Sixth Amendment to Lease Agreement dated as of June 26, 2003, which became effective upon the July 17, 2003 closing of the purchase of the Property from KCL (the “Sixth Amendment”). The KCL Lease, as modified by the Sixth Amendment, is referred to herein as the Lease. !

B. Lessor and Lessee have agreed to make certain modifications to the Lease on the terms and conditions set forth in this Seventh Amendment to Lease Agreement (the “Seventh Amendment”).

AGREEMENT

NOW, THEREFORE, in consideration of foregoing and the promises made below, and other good and valuable consideration, the parties agree as follows:

1. Definition . Except as otherwise stated in this Seventh Amendment, terms which are defined in the Lease shall have the same meanings for this Seventh Amendment.

2. Amendments . Effective as provided herein, the Lease is hereby amended as follows:

2.1 Cell Towers Sublease: Under the Option and Sublease Agreement dated as of December 21, 2001 (the “2001 Sublease”), Lessee is sub-lessor to AT&T Wireless Services, Inc. (“AWS”) with respect to portions of the Tully’s premises, for purposes of operation of AWS’s communications antenna and equipment (the “AWS Equipment”). Lessor and Lessee desire to have the AWS Equipment relocated to a different location in the Property (described on Exhibit E attached hereto), and AWS has agreed to relocate the AWS Equipment at the expense of AWS, provided that a new sub-lease agreement is executed by AWS and Lessee (terminating the 2001 Sublease), and provided that Lessor shall give its written consent for the new sub-lease. For purposes of this section 2.2, “relocation” shall mean the removal of

the equipment currently comprising the AWS Equipment and the installation of new equipment at such locations in the Property as are agreed to by Lessor, Lessee and AWS. Lessor and Lessee have agreed as follows:

a) Lessor and Lessee shall reasonably cooperate with AWS in the evaluation and planning for the relocation of the AWS Equipment.

b) Lessee shall execute a Sublease Agreement in substantially the form attached hereto as Exhibit C (the “New AWS Sublease”) as soon as reasonably possible. Within five business days after the later of (1) the date Lessee delivers the New AWS Sublease executed by Lessee and AWS to Lessor and (2) the execution of this Seventh Amendment by the parties hereto, Lessor shall give its written consent to the New AWS Sublease by executing the Landlord’s Consent to Sublease the form of which is attached hereto as Exhibit D. Provided that the New AWS Sublease has been executed in their respective capacities by AWS, Lessee and Lessor:

3. Notice . All notices or other communications requir