Document:

Second Amendment to Lease

 EXHIBIT 10.5B 
  
 SECOND AMENDMENT TO LEASE 
  
 This Second Amendment to Lease is dated March 1, 2005 between R2H2 LLC, a Washington limited liability company
(“Landlord”), and Jones Soda Co. (formerly known as “Urban Juice & Soda Company”), a Washington corporation (“Tenant”). 
  
 By written Lease Agreement dated March 14, 2000, Tenant leased from Landlord approximately 7,989 square feet of rentable space located at 234 –
9th Avenue North, Seattle, Washington 98109. Such documents are hereinafter jointly referred to as the
“Lease.” The original Lease expired February 28, 2003. The First Lease Amendment, agreed to on March 1, 2003, expired on February 28, 2005. 
  
 Landlord and Tenant now wish to extend the term of the Lease on the following terms and conditions: 
  
 1. Defined Terms. As used herein, all defined terms shall have the meanings as set
forth in the Lease. 
  
 2. Term. Section 1.9 “TERM” shall be
amended as follows: 
  
 The Term of this Lease shall be extended
for two (2) years commencing on March 1, 2005 and ending on February 28, 2007. 
  
 3. Fixed Rent. Section 1.5 “FIXED RENT” shall be amended as follows: 
  
 Commencing on March 1, 2005 the monthly Fixed Rent for the period from March 1, 2005 to February 28, 2006 shall be $7323.25 per month. 
  
 Commencing on March 1, 2006 the monthly Fixed Rent for the period from March
1, 2006 to February 28, 2007 shall be $7989.00 per month. 
  
 4. Free
Products. Section 13.9 “FREE JONES SODA PRODUCTS” shall be amended as follows: 
  
 The parties agree that during the Term from March 1, 2005 to February 28, 2007, the Tenant shall deliver to the Landlord on the first day of each month, five (5) cases of mixed Jones Soda products at no cost to the
Landlord. 
  
 5. Early Termination by Landlord. The Landlord intends to
redevelop the Building. Accordingly, Tenant agrees that Landlord shall have the right at any time during the Term to terminate the Lease by delivering nine (9) months’ advance written notice to Tenant. The Lease shall terminate at the end of
such nine-month notice period. 

 6. Nonmodification. Except as set forth herein, the Lease shall remain in full force and effect and is unmodified.

  
 IN WITNESS WHEROF, the parties have executed this agreement
as of the day and year first written above. 
  

							
	LANDLORD:	 	TENANT:
		
	R2H2 LLC	 	JONES SODA CO.
				
	By:	 	 /s/

	 	By:	 	 /s/

	Name:	 	  

	 	Name:	 	  

	Its:	 	  

	 	Its:Licensing and Distribution Agreement, dated April 1, 2005

 EXHIBIT 10.12 
  
 CERTAIN INFORMATION HAS BEEN OMITTED FROM THIS EXHIBIT, AS INDICATED BY “XXX”, PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
THAT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
 LICENSING AND DISTRIBUTION AGREEMENT 
  
 This Licensing and Distribution Agreement (“Agreement”) is dated effective this first day of April, 2005 by and between Jones Soda Co., a Washington corporation (“Jones”) and The Kroger Co., an Ohio corporation, on
behalf of itself and its Jackson Ice Cream division (“Kroger”). 
  
 RECITALS 
  

	 	A.	Jones markets and sells Jones Soda and other products through its distribution network in select markets across North America. 

  

	 	B.	Kroger is a national grocery retailer and manufacturer. 

  

	 	C.	The parties desire to enter into a business relationship whereby Jones will license to Kroger its proprietary trade names and trademarks and provide certain ingredients, and Kroger
will manufacture, market and sell to consumers certain Jones products pursuant to the terms herein. 

  
 AGREEMENT 
  
 Now, therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree: 
  

	 	1.	Definitions. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them below. 

  
 “Concentrate” means flavor only concentrate to be provided by
Jones to Kroger (whether made by Jones or a third party) for use in manufacturing Novelties. 
  
 “Design Work” means all artwork, photographs, designs, drawings, and sketches produced by or for Jones in connection with the Products, and all writings or other documentation produced by or for Jones in
connection with such artwork, photographs, designs, drawings, and sketches. 
  
 “Effective Date” means April 1, 2005. 
  
 “Novelty” or “Novelties” means the frozen, consumable novelty (such as a frozen pop or like product, but not including ice cream, sorbet or similar frozen confection) licensed, manufactured and
sold under the terms of this Agreement. 
  
 “Pack”
means a package containing twelve (12) Novelties. 
  
 “Packaging” means any wrapper or other package used to surround an individual Novelty or any carton, enclosure or other package used to segregate the Novelties into Packs or other assemblage of Novelties, together with any
appurtenant wraps, promotions or advertising. 
  
 “Products” means the Novelties (individually and in Packs) and Packaging. 
  
 “Samples” means the Novelties and Packaging purchased by Jones from Kroger in order to promote the sale of the Products, as more fully set forth in Section 7(e) below. 
  
 “Term” has the meaning set forth in Section 11 below. 

 

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	 	2.	License. 

  
 (a) Grant. Jones is the owner of certain trade names, trademarks and service marks (collectively, “Marks”) which constitute valuable
intellectual property of Jones and through substantial investments by Jones have attached to them substantial goodwill and consumer recognition. The Marks that are the subject of this Agreement are shown in the attached Exhibit A, which may be
amended from time to time as agreed by the parties. Jones hereby grants to Kroger an exclusive right and license to use the Marks and Design Work in connection with the manufacturing of Novelties for the Term of this Agreement and in accordance with
the terms and conditions set forth in this Agreement. 
  
 (b)
Scope. Kroger agrees that it shall use the Marks and Design Work only for the purposes contemplated by this Agreement, including the promotion and sale of the Products. The Marks will not be used by Kroger as the name, or any part of any
name, of any corporation, partnership or other entity or proprietorship under which Kroger transacts any business. Jones shall not use the Kroger name or any of its trade names or trademarks without the prior written consent of Kroger; provided,
however, that Kroger will provide Jones with a standard logo that Jones can use solely to identify Kroger as a customer and supplier of Jones. 
  
 (c) Jones’ control. Kroger’s use of the Marks and Design Work is subject to the control and approval of Jones in every respect, and any
unauthorized use shall constitute an infringement of Jones’ rights. 
  
 (d) Advertisements. All advertisements, promotional and sales materials, or other use of the Marks, whether in written, electronic or other form, shall be approved in writing by an authorized representative of
Jones before release to members of the public. For the purpose of providing such approval, Jones shall designate an authorized representative to whom Kroger shall forward such items, and Jones shall be obligated to respond to any request for
approval within three (3) business days, including the day upon which notice is delivered via e-mail, fax or hand-delivery if before 12:00 p.m. at the location of Jones’ designee. In the event no response is received from Jones by 5:00 p.m. on
the third business day, the materials shall be deemed approved. Notwithstanding the above, Jones shall provide Kroger with a standard logo that Kroger can use without prior approval from Jones. 
  
 (e) No disparagement. Kroger will not take any action that will
impugn the reputation of Jones or in any way denigrate or adversely affect the Marks, Design Work, or associated goodwill. By way of illustration and without limitation, Kroger shall not knowingly sell Products where the Packaging has been torn or
noticeably damaged, or any aspect of the Novelty is found to be defective. 
  
 (f) Claims. If Kroger receives notice of a threatened or actual claim asserted by any third party with respect to a prior use or other infringement of any of the Marks or Design Work, Kroger shall promptly give
notice to Jones of such claim. In such event, Jones shall defend such claim and otherwise take such action as it deems appropriate in its sole discretion subject to its obligations in Section 9. 
  
 (g) Sole property of Jones. Kroger expressly understands and
acknowledges that the Marks and Design Work are the sole property of Jones, along with the goodwill associated with and symbolized by the Marks and Design Work, and are used for the benefit of Kroger under license. Kroger shall not directly or
indirectly contest the validity of Jones’ ownership of the Marks or Design Work. Kroger’s use of the Marks and Design Work pursuant to this Agreement does not give Kroger any ownership interest or any other interest in the Marks or Design
Work, beyond the license granted by this Agreement, and upon expiration or termination of this Agreement, no monetary value shall be assigned as attributable to any goodwill associated with Kroger’s use of the Marks or Design Work. 

 
 (h) Exclusivity. The license granted herein shall be exclusive for
the Term of this Agreement with respect to the manufacture of Novelties in the United States, but shall not be exclusive with respect to any other Jones product or territory. Except as expressly provided in the preceding sentence, the license
granted to Kroger is non-exclusive, and Jones retains the right to use the Marks and Design Work on its own behalf, grant others licenses to use the Marks and Design Work, develop and establish other products using the same or similar Marks and
Design Work, and grant licenses without providing any rights in such licenses to Kroger. Furthermore, for one (1) year from the Effective Date, Jones agrees that Kroger shall be the exclusive seller of Products. 
  

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 (i) Substitution of Marks. Jones reserves the right to substitute different Marks for use in
connection with the Products if Jones’ currently owned Marks no longer can be used, or if Jones determines that substitution of different Marks is otherwise necessary under the circumstances. 
  
 (k) Royalty. Kroger shall pay a license fee for the license granted
herein (“License Fee”) pursuant to the terms of the attached Exhibit B. 
  

	 	3.	Production of Products. 

  
 (a) Manufacturer. Kroger shall manufacture, package and arrange for delivery of the Products through its wholly owned or controlled manufacturing
facility. Kroger shall be responsible for production of all Products (with the exception of the Concentrate, Marks and the Design Work) sold in the United States. No third party co-packer or manufacturer shall be used to manufacture the Products
without the prior written consent of Jones in its sole discretion. 
  
 (b) Specifications. Jones will have the right and opportunity to review and approve the standards and specifications for manufacture and storage of the Novelties and Packaging. 
  
 (c) Packages. The Novelties shall be packaged and sold in Packs
unless otherwise agreed upon in writing by the parties. 
  
 (d)
Requirements from Jones. In order to ensure that the Products sold by Kroger are of consistent and high quality, and to preserve the reputation and goodwill associated with Jones, the Marks, and the Design Work, Kroger agrees that its entire
requirements of Concentrate shall be purchased from Jones on the following terms and conditions: 
  

	 	i.	Jones will sell Concentrate to Kroger in units of one (1) gallon at prices established by Jones for each flavor, as adjusted from time to time based upon any increase in the price
charged to Jones by its third party supplier of Concentrate ; 

  

	 	ii.	Jones will pay for freight costs to ship Concentrate to Kroger’s manufacturing facility; 

  

	 	iii.	Jones will maintain sufficient inventory of Concentrate to meet Kroger’s requirements as set forth in the rolling forecasts described in Section 3(e) below; provided, however,
that Kroger meets mutually agreed upon lead times for orders of Concentrate, which shall be a minimum of thirty (30) days; 

  

	 	iv.	Jones may engage independent contractors (that have been approved by Kroger which approval shall not be unreasonably withheld) to produce the Concentrate to Jones’
specifications, and all such specifications shall remain the exclusive and confidential property of Jones; and 

  

	 	v.	Title to the Concentrate and risk of loss shall pass to Kroger upon delivery of Concentrate to Kroger’s loading dock, unless Kroger elects to engage its own carrier to
transport the Concentrate, in which case title and risk of loss shall be transferred once freight is on board at the Concentrate producer’s facility. 

  
 (e) Forecast; Inventory. Commencing on the Effective Date, Kroger will provide to Jones ninety (90) day rolling
forecasts, to be updated on a monthly basis, of its requirements of (i) Products, and (ii) units (gallons) of Concentrate. Kroger shall maintain sufficient inventory to meet its requirements of Products as set forth in such forecasts. Kroger shall
not be bound by the forecasts and shall have no minimum purchase obligation hereunder. 
  
 (f) Quality. All Products will be of good and merchantable quality, manufactured to food industry standards using best quality ingredients. Jones will have the right to inspect Kroger’s production facility

  

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 during normal hours of operation on reasonable notice without interruption to operations, and Kroger will supply
Novelties as reasonably requested by Jones at no cost to Jones where such Novelties are used solely for quality control testing. 
  
 (g) Ingredients; Packaging. Kroger will be responsible for procuring at its cost and expense all ingredients necessary to manufacture the
Novelties, other than Concentrate supplied by Jones as provided for above. Kroger will also provide at its cost and expense all Packaging other than the Design Work (including, by way of illustration, shipping cartons, boxes, wrappers, and sticks)
and all pallets. 
  
 (h) Flavors. Kroger will initially
manufacture Products in the flavors described in Exhibit C. Additional flavors may be added upon further agreement of the parties. Such flavors may or may not be offered in connection with other products sold by Jones. 
  
 (i) Third Party Sales. Not later than six (6) months after the
Effective Date, the parties will negotiate in good faith and agree upon procedures (e.g., forecast and inventory requirements) and pricing (which shall be consistent with industry pricing for frozen pops of like quality) with respect to
Kroger’s production and handling of Products for sale by Jones to third party wholesalers and retailers after expiration of Kroger’s exclusive right to sell Products as forth in Section 2(h) above. In the event the parties cannot agree on
such procedures and pricing, they will adhere to the dispute resolution process as set forth in Section 15(a) below. 
  

	 	4.	Product Design and Packaging. 

  
 Jones will be responsible for and have final approval rights with respect to all creative design in connection with the Products and Packaging. Without
limiting the foregoing, Jones shall (a) design all Packaging, and (b) collect, sort, and select all photographs submitted for use on or used in connection with the Packaging, provided that Kroger shall have the right to approve such photographs
before their use on the Products to ensure that they are not likely to be regarded as offensive or in poor taste by Kroger’s customers, and such approval shall not be unreasonably withheld. For the purpose of providing such approval, Kroger
shall designate an authorized representative to whom Jones shall forward photographs, and Kroger shall be obligated to respond to any request for approval within three (3) business days, including the day upon which notice is delivered via e-mail,
fax or hand-delivery if before 12:00 p.m. at the location of Kroger’s designee. In the event no response is received from Kroger by 5:00 p.m. on the third business day, the photographs shall be deemed approved. 
  

	 	5.	Marketing. 

  
 (a) Promotions. Kroger agrees to use its commercially reasonable efforts to market and promote the Products to the public in areas where Kroger
operates its retail stores which sell the Products. 
  
 (b)
Jones’ Assistance. Kroger agrees to consult with Jones, and Jones agrees to provide reasonable assistance (i.e., advice and consultation) to Kroger in connection with all marketing activities promoting the Products, including all
in-store promotions, media advertising, and public relations events and press releases. 
  
 (c) [XXX]. Kroger and Jones will [XXX] will be to [XXX] and [XXX] to [XXX] and [XXX] the [XXX] and [XXX] of [XXX]. The [XXX] will also [XXX] regarding [XXX], and will [XXX] at [XXX] in [XXX]. 
  

	 	6.	Additional Obligations of Jones. 

  
 (a) Promotion by Jones. Jones will use its commercially reasonable efforts to promote the Products to consumers who have made inquiries to Jones
about the availability of Products. During the exclusive sales period as described in Section 2(h) above, Jones will identify Kroger as the sole supplier of Products and direct all purchase inquiries to Kroger. 
  
 Certain information has been omitted from this page, as indicated by “XXX”,
pursuant to a request for confidential treatment that has been filed separately with the SEC. 
  

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 (b) Promotional Activities. Jones will notify Kroger regarding events (e.g., X Games) where Jones
will promote the Products through use of its recreational vehicles, booths and similar promotional activities. Jones will also promote the Products on its web site in a time and manner to be determined in Jones’ discretion, but in all cases
consistent with the terms of this Agreement, as applicable. Jones shall have the right to advertise and promote other Jones products in addition to or in lieu of the Products in connection with any promotional event or activity. 
  

	 	7.	Additional Obligations of Kroger. 

  
 (a) Sale of Products. Kroger shall use its commercially reasonable efforts to market, promote and sell the Products in its divisions that decide
to sell the Products in their discretion. Kroger shall not resell the Products to any wholesale or other retail business. 
  
 (b) Storage. Kroger shall store the Products in accord with frozen confection industry standards, including but not limited to maintaining
freezers at sufficiently low temperatures to assure quality control. 
  
 (c) Defective products. In the event that any Product sold or otherwise distributed by Kroger is altered so as to deteriorate its quality in any way, is otherwise defective, or is in violation of applicable laws, rules or
regulations, Kroger shall immediately destroy all contaminated or adulterated products save and except for sufficient quantities to allow for testing and analysis (unless directed otherwise by Jones or any governmental authority), remedy all
conditions giving rise to such contamination, adulteration, or other defects, and cease all sales or other distributions, until such time as Jones has made such inspections and tests as are reasonably necessary to ensure compliance with applicable
government laws, rules and regulations. 
  
 (d) Samples.
In order to assist Jones’ promotion of the Products. Kroger shall sell Samples to Jones at Kroger’s cost (excluding any License Fees). The Samples will not be resold by Jones. 
  
 (e) Sales Reports. Kroger shall provide to Jones sales reports setting forth, by flavor, region and as otherwise
agreed by the parties, the sales volumes of Products sold by Kroger, which reports shall be provided within thirty (30) days after the end of each calendar month. 
  
 (f) Sales Tax. Kroger shall collect and pay any and all sales, excise and like taxes, as applicable, in connection
with the sale of the Products. 
  

	 	8.	Confidential Information. 

  
 (a) Definition. As used in this Agreement, “Confidential Information” means all information, in any form, furnished or made available
directly or indirectly by one party (the “Disclosing Party”) to the other (the “Receiving Party”) that (i) concerns the operations, affairs and businesses of the Disclosing Party, the financial affairs of the Disclosing Party, or
the relations of the Disclosing Party with its customers, employees and service providers, or (ii) is marked confidential, restricted, proprietary, or with a similar designation. The terms and conditions of this Agreement shall be deemed
Confidential Information. “Confidential Information” shall exclude any information that (1) was, at the time of disclosure, in the public domain; (2) after disclosure, is published or otherwise becomes part of the public domain through no
fault of the Receiving Party; (3) was in the possession of the Receiving Party at the time of disclosure to it; (4) was received after disclosure from a third party who had a lawful right to disclose such information without any obligation to
restrict its further use or disclosure; or (5) was independently developed by or for the Receiving Party without reference to Confidential Information of the Disclosing Party. 
  
 (b) Ownership; Standard of Care. Each Party’s Confidential Information shall remain the property of that Party,
and will not be shared with third parties without the prior consent of the Disclosing Party. Either Party may disclose the terms and conditions of this Agreement to third parties that have expressed a bona fide interest in consummating a significant
financing, merger or acquisition transaction between such third parties and such Party, and have executed a nondisclosure agreement that includes within its scope the terms and conditions of this Agreement. Disclosure may also be made pursuant to
the terms of any subpoena, court order or other legal process: provided, however, that the Disclosing Party shall be given written notice of such process as soon as possible and, to the extent practicable, an opportunity to prevent or limit such
disclosure. 
  

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	 	9.	Indemnification. 

  
 (a) By Jones. Jones shall hold harmless, defend and indemnify Kroger and its affiliates, and its and their respective directors, officers, agents
and employees against any loss, claim, liability or expense (including, without limitation, court costs, litigation expenses and attorney fees), arising out of: (i) Jones’s breach of this Agreement, (ii) Jones’s negligent act, omission,
misconduct, or violation of any law relating to this Agreement; (iii) patent, copyright or other intellectual property right infringement or alleged infringement by Jones or its agents, or (iv) Kroger’s use of the Concentrate as contemplated by
this Agreement, except to the extent that the separate intervening negligence or misconduct of Kroger or its agents is cause of such loss, liability or expense. Kroger agrees to provide Jones with prompt notice of its receipt of any claim for which
Kroger claims the right to indemnification under this Agreement, and Jones shall have the right and opportunity to defend or resolve the claim with its own counsel and with the reasonable cooperation of Kroger. In the event a claim is alleged with
respect to any alleged defect in the Product, then Kroger shall promptly provide to Jones samples of any allegedly defective Product. 
  
 (b) By Kroger. Kroger shall hold harmless, defend and indemnify Jones and its affiliates, and its and their respective directors, officers, agents
and employees against any loss, claim, liability or expense (including, without limitation, court costs, litigation expenses and attorney fees). for the injury or death of any person or for damages to any property arising out of (i) Kroger’s
negligence or misconduct in the storing, handling, transportation, sale or use of the Products; (ii) Kroger’s breach of this Agreement, (iii) Kroger’s violation of any law relating to this Agreement or the Products, and (iv) Kroger’s
infringement of any proprietary right provided hereunder by Jones., except to the extent that the separate intervening negligence or misconduct of Jones or its agents is the cause of such loss, liability or expense. Jones agrees to provide Kroger
with prompt notice of its receipt of any claim for which Jones claims the right to indemnification under this Agreement, and Kroger shall have the right and opportunity to defend or resolve the claim with its own counsel and with the reasonable
cooperation of Jones. In the event a claim is alleged with respect to any alleged defect in the Products, then Jones shall promptly provide to Kroger samples of any allegedly defective Products promptly upon receipt of such defective Products from
any third party claimant. 
  

	 	10.	Insurance. 

  
 Kroger and Jones shall each maintain in full force all insurance required by law, including worker’s compensation, and as required by any lease for
business premises, and in addition (to the extent not required by the lease for such premises), shall maintain Commercial General Liability insurance, including broad form contractual liability, broad form property damage, personal injury, and
products liability in an amount not less than Five Million Dollars ($5,000,000) per occurrence. Each policy shall name the other as an additional insured, waive all subrogation rights against the other party and its insurer and shall notify the
other party 30 days in advance of modification or cancellation. 
  

	 	11.	Term. 

  
 This Agreement shall become effective upon the execution of both parties and shall remain in full force and effect until three (3) years after the
Effective Date or March 31, 2008 (“Term”), subject to the limitations on exclusivity for sale of the Products set forth in Section 1(h) above, and subject further to earlier termination pursuant to the terms of this Agreement. Not less
than ninety (90) days prior to the expiration of the Term (provided there has been no early termination), either party may give notice to the other party that it wishes to extend the Term of the Agreement on such terms and conditions as may be
agreed upon by the parties. During the thirty (30) day period after receipt of such notice, the parties shall meet and negotiate in good faith the terms and conditions of any such renewal; provided that, for the avoidance of doubt, neither party
shall be bound to renew or extend this Agreement if it does not agree to the terms and conditions of such renewal or extension. During this 30-day period of negotiations. neither party shall initiate or continue any discussions or negotiations with
third parties regarding manufacture of the Products. 
  

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	 	12.	Termination. 

  
 (a) Termination for cause. If either party breaches or defaults under any provision of this Agreement (the “Defaulting Party”), the
other party (“Non-defaulting Party”) shall have all rights and remedies permitted by law or equity, including, but not limited to, the right of termination in accordance with the terms of this Section 12. Neither party will terminate this
Agreement pursuant to this Section 12 unless there is mutual agreement or it has good cause to do so, and good cause shall be limited to the following: 
  

	 	i.	A party’s breach or failure to perform any obligation under this Agreement; 

  

	 	ii.	If a party files a petition in bankruptcy or is otherwise insolvent: 

  

	 	iii.	If a party executes an assignment for the benefit of creditors; 

  

	 	iv.	If a party is in default on three or more successive occasions for failure to comply with this Agreement, whether or not cured after notice. 

  
 (b) Notice. The Non-defaulting Party may terminate this Agreement
sixty (60) days after giving the Defaulting Party written notice specifying the defaults or breaches by such Defaulting Party and a reasonable time within which the defaults or breaches must be cured, and if no time for cure is set forth in such
written notice, the cure period shall be deemed to be thirty (30) days after the date of the notice of default. If the nature of the Defaulting Party’s obligations are such that more than thirty (30) days are required for performance, then such
Defaulting Party shall not be in default if it commences to cure such default or breach within the thirty (30) day period and thereafter diligently attempts to cure the same to completion of performance; provided that in no event shall such cure
period exceed ninety (90) days. 
  
 (c) Obligations Upon
Termination or Expiration. In addition to the rights and duties specified elsewhere in this Agreement, upon the expiration, unauthorized transfer or termination of this Agreement for any reason, the following provisions shall immediately apply:

  

	 	i.	Kroger’s use of the Marks shall be limited to the sale of existing inventory of the Products. 

  

	 	ii.	Kroger shall not “dump” the remaining inventory of Products or charge a price for the Products that will have a materially adverse impact on the market for the Products.

  

	 	13.	Representations and Warranties 

  
 (a) No Default/Conflict. Jones and Kroger each represents and warrants to the other that its signing, delivery, and performance of this Agreement
shall not constitute (i) a violation of any judgment, order, or decree, (ii) a violation of applicable local, state or federal law, or (iii) a material default under any material contract by which it or any of its material assets are bound. Jones
and Kroger each further represents and warrants to the other that the performance of this Agreement will not conflict with or be hindered by any obligation of Jones or Kroger, respectively, under any other material agreement, whether in effect as of
the date hereof or entered into thereafter. 
  
 (b)
Authorization. Jones and Kroger each represents and warrants to the other that (i) it has the requisite corporate power and authority to enter into this Agreement and to carry out the transactions contemplated by this Agreement; and (ii) the
signing, delivery, and performance of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized through requisite corporate action. Jones represents that it has full ownership rights to the
Marks (except where expressly provided otherwise on Exhibit A) and has full rights to license them hereunder. Jones shall use its commercially reasonable best efforts to promptly register any Marks that are not registered as of the date hereof.

  

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 (c) Laws and Regulations. Each party represents and warrants that it will comply with all
applicable laws and regulations relating to its respective performance of this Agreement. Each party shall immediately notify the other in the event of any violation of any law, regulation or ordinance that arises out of or relates to such
party’s performance of this Agreement. 
  
 (d) Disclaimer
of Warranty. EXCEPT FOR THE WARRANTIES EXPRESSLY PROVIDED FOR IN THIS AGREEMENT, JONES AND KROGER DISCLAIM ALL OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE. 
  

	 	14.	Limitation of Liability. 

  
 Neither party shall have the right to recover consequential or punitive damages, or claim lost profits based upon a breach by the other party, except in
connection with indemnification obligations for third party claims. 
  

	 	15.	Miscellaneous. 

  
 (a) Dispute Resolution. In the event of a dispute between the parties with respect to the subject matter of this Agreement, the parties shall
first meet, through designated representatives with the authority to resolve such dispute, and use their good faith best efforts to resolve such dispute within ten (10) days of notice of such dispute. If these negotiations are not successful, then
prior to initiating any court or arbitration proceedings, the parties shall attempt to resolve any such dispute in an amicable manner by mediation with a mutually acceptable mediator, to be held within thirty (30) days of notice of such dispute. If
such mediation is not successful, then the parties agree that any remaining disputes shall be resolved through binding arbitration before a single arbitrator in accordance with the American Arbitration Association procedures. The arbitrator’s
decision shall be final and binding on the parties, and may be filed and enforced in any court with jurisdiction. Notwithstanding the foregoing, either party may seek temporary or permanent injunctive relief from any court with jurisdiction.

  
 (b) Counsel Review. Each party has had the opportunity
to consult with its attorney, and understands and accepts the terms of this Agreement. Neither party shall be deemed the drafter of this Agreement for the purposes of any presumptions with regard to such drafting. 
  
 (c) Independent Contractor. Kroger is an independent contractor, and
nothing in this Agreement shall be construed as creating, as between Jones and Kroger, the relationship of fiduciary, partner, joint venturer, agent, subsidiary or employer-employee. Neither party shall have any authority to bind the other party to
any contractual or other obligation except as stated herein. 
  
 (d) Notices. All notices or consents referenced in this Agreement are to be in writing, and mailed or delivered to each party at the address set forth below, unless written notice of change of address is supplied to the other party
effective not less than ten (10) days from the date of such notice. Notice shall be deemed effective on the date of delivery, when delivered personally or by overnight courier or by fax, or two (2) business days after being deposited in the U.S.
mail, as certified or registered mail, with postage prepaid, and addressed or telecopied, as follows: 
  

			
	Jones:	 	Jones Soda Co
	 	 	234 9th Ave North
	 	 	Seattle, WA 98109
	 	 	Attn:  Peter van Stolk
	 	 	          Jennifer Cue
	 	 	Fax: 206/624-6857
		
	Kroger:	 	 
	 	 	The Kroger Co.
	 	 	1014 Vine Street
	 	 	Cincinnati, Ohio 45202
	 	 	Attn: Dairy Product Manager

  

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	With a copy to:	 	 
	 	 	The Kroger Co.
	 	 	1014 Vine Street
	 	 	Cincinnati, Ohio 45202
	 	 	Attn: General Counsel

  
 Entire Agreement.

  

	 	i.	Merger. This Agreement constitutes the sole agreement between the parties with respect to the subject matter thereof, except to the extent otherwise expressly provided, and
replaces all prior oral or written agreements between them. 

  

	 	ii.	Warranties. Neither party shall be bound by any warranty or representation except to the extent expressly contained in this Agreement. 

  

	 	iii.	Modifications. Neither this Agreement nor any provision of this Agreement may be modified, waived, discharged or terminated orally. A waiver of any provision shall be valid
only in the instance for which given and shall not be deemed continuing, nor shall any waiver be construed as a waiver of any other provision. This Agreement shall not be assigned without the prior written consent of the other party.

  
 (e) Severability. If any provision of
this Agreement is held to be invalid under any applicable statute or rule of law, the remainder of the Agreement shall not be affected thereby and shall remain in full force and effect. Headings used herein are for convenience only and shall not be
a used in interpretation. 
  
 (f) Choice of Law. This
Agreement shall be governed by the laws of the State of Ohio, without regard to conflict of laws doctrine. 
  
 (g) Binding Effect. This Agreement is binding upon, and references to Jones or Kroger include, such successors, assigns or transferees as are
permitted under this Agreement. 
  
  

			
	JONES SODA CO.
		
	By:	 	 /s/ Peter van Stolk

	Peter van Stolk, President
	
	THE KROGER CO.
		
	By:	 	     /s/

	Name	 	  

	Title	 	  

  
  

 - 9 - 

 EXHIBIT A 
  

MARKS 
  
 FUFU Berry Soda 
 Go There 
 I’m Jonesin’ 
 I’ve Got A Jones For A Jones 
 It May Not Be Your Thing 
 J & Design 
 Jones Soda
Co. 
 Jones Soda Co. & Design 
 Jonesin’ 
 Miscellaneous Design (Beverage Container Trade Dress) 
 Miscellaneous Design
(Can) 
 Miscellaneous Flame Design 
 Run With The Little Guy

 Sugar Free Jones 
 www.jonessoda.com 
 Jones Soda on a Stick (unregistered) 
 Jones Soda Pops (unregistered)

  

 - 10 - 

 EXHIBIT B 
  

LICENSE FEE 
  
 The License Fee pursuant to Section 2(k) of the Agreement shall be [XXX] per Pack sold by Kroger from its retail outlets, as determined by scanner data or comparable source. A [XXX] per Pack credit shall be granted
for each Pack returned by a Kroger customer to a Kroger store for a refund. The License Fee shall be paid for each four (4) week period during which Kroger sells any Product at retail, and shall be payable within thirty (30) days following the last
day of such four-week period. 
  
 By way of example and not limitation, if Kroger
sold 5,000 Packs at retail during a four-week period and 10 Packs were returned by Kroger customers for a refund during the same period, the License Fee would be [XXX] and would be payable by Kroger to Jones on or before the thirtieth
(30th) day following the last day of the four-week period. 
  
 Certain information has been omitted from this page, as indicated by “XXX”,
pursuant to a request for confidential treatment that has been filed separately with the SEC. 
  

 - 11 - 

 EXHIBIT C 
  

FLAVORS 
  

					
	 Flavor

	 	 Usage Rate

	 	 Concentrate Cost per Gallon

	 Green Apple
	 	[XXX]	 	[XXX]
	 Berry Lemonade
	 	[XXX]	 	[XXX]
	 Cherry
	 	[XXX]	 	[XXX]

  
 The costs for the flavors shown above
are based upon the agreed usage rates as shown above. In no event shall the initial cost for Concentrate for the flavors listed above exceed [XXX] per Pack (subject to increases as allowed by Section 3(d)(i) of the Agreement, and subject further to
Jones’ agreement that there will [XXX]). 
  
 In connection with additional
flavors that Jones and Kroger may elect to offer in the future, the parties will again use their commercially reasonable best efforts to agree on a formulation for each of the flavors listed above, and determine the cost of Concentrate per Pack. The
price per Pack will then be converted to a unit (i.e., gallon) price. In the event the cost for Concentrate for any new flavor exceeds [XXX] per Pack, then either party shall the right to elect not to proceed with the manufacture of Novelties using
such Concentrate flavor. 
  
 Certain information has been omitted from this
page, as indicated by “XXX”, pursuant to a request for confidential treatment that has been filed separately with the SEC. 
  

 - 12 -

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